Timeshare Exchange Company Creates New Way to Get Money from Owners March 17, 2011
Posted by John Stephens in : News & Events, silverleaf , add a commentInterval International announced last week that they have created a new level of membership called the Interval Platinum level. Billed as its most prestigious membership level, II claims that “the program is designed for discerning vacation owners who desire higher-end travel experiences and personal attention at every step of the planning process.”
My question to II is – what does that make the Standard and Gold level members, vacation owners who are not as discerning or looking for a lower-end travel experience?
C’mon, man.
I would hope that for the $200 plus it costs members just to join and make a domestic exchange that they would at least get some personal attention if they needed it. Or is that too much to ask?
Let’s be real. There is a reason the company introduced a new level above the others and said that “members enrolled in Interval standard and gold programs are able to upgrade to Interval Platinum at any time”.
It’s all about the coin.
To be fair, timeshare companies have been pushing existing members and owners for years to upgrade from their existing benefit level to the “new and improved” model. Even more so due to the effects of the recent economic downturn as companies slashed their sales teams when the new sales levels took a nosedive.
Any recent growth, or lack thereof, for timeshare companies has come on the backs of existing owners and members.
Silverleaf Resorts admitted it in their earnings report for 2010 when they reported that vacation interval sales were $206.3 million in 2010 compared to $241.0 million in 2009.
The reason they gave for the loss was that “the decrease in Vacation Interval sales is primarily attributable to a reduction in marketing to existing customers which resulted in lower sales of upgrade intervals.” So now they are blaming their lack of marketing to existing customers as a reason for losing money.
Why they decided to do this wasn’t mentioned, but upgrades have been the 800 pound gorilla in the timeshare sales office for years. So it’s no real surprise that Interval would go down this path and tell its members that if they want service, they’re going to have to upgrade for it.
Oh, and by the way, Silverleaf also reported that their sales and marketing expenses as a percentage of vacation interval sales were 55%, just in case you were wondering why the cost of a new timeshare from the resort was so expensive. Take away that 55% off the cost of a new timeshare and you realize why there are so many great deals on the timeshare resale market. The BuyaTimeshare.com website is loaded with these deals for just about any kind of timeshare imaginable to meet your vacation needs.
I get the argument that developers counter with when they say they are the ones taking the risk to build the timeshare, get it off the ground, etc., so that’s how they can recoup their investment. But 55% for sales and marketing?
C’mon, man.