Feature : Timeshare
Asia and Latin America are obvious targets for hotel development , and the same holds true for timeshare . However , projects in Latin America may still face location-specific issues . “ There are , of course , challenges facing shared ownership growth and development as well ,” says Marcos Agostini , senior vice president of resort sales and business development , Interval International Latin America , Miami . “ The majority of developers in South America must finance their own projects because of limited access to capital , and many of these markets need to invest in their infrastructure in order to support a global tourism market .”
Not to be overlooked , some of the old timeshare rules still hold true . According to ARDA ’ s state of the industry report , 43 % of the U . S . timeshare industry is on beach sites . Just 15 % is urban development .
For companies like Timbers Resorts that offer both timeshare and fractional ownership , it ’ s a question of curating what works where . “ Timbers ’ view is that fractional is a product that only truly works in a high-barrier-to-entry market in A-plus locations ,” Spencer says . “ Many of our buyers already own multiple homes and have the capability to buy a whole-ownership home in a market that we would sell fractional , so the purchase decision is more about aligning their vacation needs and experiences versus an economic decision to buy something that is less expensive .”
And it ’ s not just a market for new-build timeshare properties . Conversion is one of the biggest trends in timeshare right now , according to Wyndham ’ s Hug . “ By converting a hotel or condo property , we can reduce the time it takes to deliver new resorts to our owners ,” he says . “ As for the business side , conversions provide a faster return on investment , which is ideal .”
But even in the extremely upbeat timeshare forecast , there are a few sour
Oasis Collections ’ Clubhouse in Buenos Aires include a bar and pool as well as three guestrooms .
Lessons from the disruptors
Most timeshare operators agree other vacation-stay options are more friend than foe . Here ’ s some wisdom from those models .
Niche is maiNstream . Jon Gray , senior vice president , Americas , HomeAway , Austin , Texas , points out that guests see options like HomeAway as just another alternative choice . Traditional timeshare has to be able to beat them or join them ( some timeshare companies do list unsold inventory on HomeAway ). exclusivity couNts . An owner ’ s lounge might just not cut it anymore . Oasis Collections ’ network of private members ’ clubs sells social entrée as well as space . Guests aren ’ t only looking for a home away from home , but also a built-in experience , especially in urban timeshare .
Keep it simple . Streamlining the reservation and booking process is critical , Gray says . Timeshare guests need convenience , which means online booking platforms have to be reliable and user-friendly .
notes . One is the lingering effects of the industry ’ s once-shaky reputation . “ There is a lack of a strong and viable secondary market that allows consumers to safely sell and purchase timeshares while not devaluing the market for both developers and consumers ,” Harrill says . “ Unfortunately , this void helps give rise to fraudulent reseller scams that are hurting the reputation of legitimate timeshare products overall .”
And , as in many industries , owners are demanding a more subtle sales approach .
“ You can ’ t do a hard sell ,” Nusbaum says .
“ On vacation rental sites , potential guests want as much information as possible prior to booking ,” adds Jon Gray , senior vice president , Americas , HomeAway , Austin , Texas . “ Unlike a hotel , they expect the owner or property manager to address specific questions about the property , often via multiple emails or phone calls . Therefore , timeshares should consider tailoring their reservation departments to handle vacation rental guests .”
48 HOTELS May 2014 www . hotelsmag . com