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More Positive Tourism Numbers Are Good For The Timeshare Industry April 28, 2011

Posted by John Stephens in : General , add a comment

A couple of items came across my desk this week that should mean good news for the timeshare industry as tourism numbers continue to improve in the U.S.

According to the Orlando Sentinel, March hotel occupancy rates in the Land of the Mouse stood at just over 80%, which is the first time Orlando hoteliers have seen the mark hit 80% since March 2008. Three years is a near eternity in the hotel world, so this is very good news for that market. And, since Orlando is the timeshare capital of the country, more people visiting Orlando should mean more people flowing on to visit (and tour) Orlando timeshares.

The 80% rate is about 10% up over March of 2010, but hotel room prices have not kept pace with the increase and are still below previous highs.  The average room rate of $103 per night is slightly up from last year but still below the $120 a night hotels were getting in 2008.

Timeshare developers need to take note of this since people are far more cost-conscious than ever before and are just not prepared to pay the kind of prices that they were a few years back. The developer prices for “new” timeshare averages around $20,000 per week and has held up during the recession as hotels slashed rates. However, the high cost of a timeshare is a major reason why people come to websites such as BuyaTimeshare.com looking for inventory.

But you already knew that.

The other item came from credit card company Visa, who released a report stating that their cardholders spent more money on international trips, both inbound to and outbound from the U.S., during 2010. International cardholders traveling to the U.S. increased spending by 18 percent, from $29 billion to more than $34 billion, and spending by U.S. Visa cardholders traveling internationally increased by six percent, from $29 billion in 2009 to $31 billion in 2010.

Of the international visitors to the U.S., Canadians led the way ($9.2 billion) followed by the United Kingdom ($2.5 billion) and Mexico ($2.0 billion). However, from a percentage increase standpoint, the largest increases came from China (64% increase) followed by Brazil (63%) and Australia (32%).

That should make the timeshare exchange companies happy.

It’s great to see people traveling again and, especially, spending money while on their trips. Maybe the days of the staycation have finally given way to a return to vacations once again.

You may not realize it, but timeshare rentals are a great way to take a vacation and stay in much better and larger accommodation compared to a hotel. Timeshares offer one and two-bedroom accommodation with full kitchens for less than the cost of most brand hotels. Take a look in our website by searching for a destination and the type of rentals available and you’ll be surprised what you can get for your money. Try it by clicking here.

Solid Timeshare Buyer and Rental Offers for the First Quarter of 2011 April 26, 2011

Posted by John Stephens in : General, Hawaii timeshare, News & Events, Ritz Carlton , add a comment

Another solid number of timeshare buyer and rental offers were placed through the BuyaTimeshare.com website during the first quarter of 2011, indicating an upturn in the secondary market and proving once again that buyers and renters are using our services.

We provided $24,981,836 in qualified offers during the first three months of this year to owners who advertised their timeshare for sale or rent on our website. Over 3,000 confirmed offers were sent through BuyaTimeshare.com as legitimate offers to advertisers, which is ahead of the offer activity for last year and a solid indication that more people are looking to buy timeshare and rent timeshare in 2011.

Because BuyaTimeshare.com is a “for sale by owner” website, offers placed on properties advertised on our site are passed through to the owner of the property. However, because of technical advances to our website, we can automatically validate those offers and make it possible for the company to substantiate these offers in order to prove that activity is taking place on the secondary market.

“Our software and proprietary algorithm allows us to track offers to make sure they are true offers from legitimate buyers and renters,” said Wesley Kogelman, president and CEO, BuyaTimeshare.com. “We want to make sure those offers get into the inboxes of prospective buyers and renters because without them, we don’t have a business.”

Our average buyer offer of $18,599 was just below the $20,000 average price of a new timeshare interval, showing excellent value for people looking to sell timeshare and demonstrating that valuable inventory does exist on the secondary market. 

Of the total offers, rental activity was considerable with the BuyaTimeshare.com website generating $1,937,182 to rent timeshare across 1,853 offers. That average $1,045 rental price would generate excellent income for owners looking to offset maintenance fees.

“Our resale model is clearly working for our advertisers as well as buyers and renters,” said Kogelman. “When owners can sell and rent their property, then our site is working not only for their benefit but for the benefit of those buyers and renters looking for value in our inventory as well.”

The inventory comes from some of the most desirable timeshare resorts in the world such as Westin Ka’anapali Ocean Resort Villas in Hawaii and Ritz Carlton Club Aspen Highlands in Colorado. You can find this inventory and much more on the BuyaTimeshare.com website by clicking here.

Update on Proposed Timeshare Tax Increase in Maui April 21, 2011

Posted by John Stephens in : Hawaii timeshare, News & Events , add a comment

Democracy is a wonderful thing. Especially when it works in favor of ordinary people.

Earlier in the week, I blogged about a proposed property tax increase being discussed by the Maui County Council which would have raised property taxes for Hawaii timeshare owners on the island by 40%. Well, it seems that the Council, specifically Mayor Alan Arakawa, had second thoughts about such a hike.

Not that my blog had anything to do with it, although I’m beginning to wonder since the last time I blogged about a controversial piece of legislation in Florida, it was changed soon after.

Coincidence? You bet it was.

According to a report in the Maui News, Mayor Alan Arakawa is now calling for a smaller property tax increase for timeshare owners than he originally proposed after being deluged by complaints from owners and timeshare property managers on the island.

“Their intent is to say we’re trying to jack their prices up,” he said. “Our entire purpose is to keep it revenue neutral, the same as last year.”

He’s been pushing that line from the beginning, but the original numbers painted a much different picture.

Under the revised plan, Maui timeshare properties would pay $15.45 per $1,000 of assessed value under Arakawa’s new proposal. That’s still an increase over the $14 that timeshare owners pay now but far less than the $19.60 he originally proposed in his draft budget.

This time around, he finally has the reasonable numbers to support his argument.

Based on the certified property values for 2012, the county would collect $24.83 million from timeshares under the proposed rate. That’s about 0.2 percent less than the $24.87 million the county expects to collect in 2011. Basically revenue neutral.

My beef with the Mayor is that he rolled out the same “revenue neutral” line when he originally proposed the $19.60 amount, which is clearly not the case according to the figures mentioned above in the Maui News article. Under that original $19.60 tax rate, the county would have generated an extra $10 million in revenue for the Council, far above any “revenue neutral” scenario.

Look, I’m glad that he listened to timeshare owners and business leaders who pointed out the folly in his argument. But is he really that slow not to have seen this coming? Or, perhaps he is clever enough to have proposed the higher rate and take the heat knowing it would be easier to sell the smaller increase as a counter proposal. Isn’t that usually the way tax increases are sold to the public?

So good news for Maui timeshare owners, which is also good news for people looking to buy timeshare in Maui as well. There are several great deals on Maui timeshare for sale on the BuyaTimeshare.com website at resorts such as Westin Ka’anapali Ocean Resort Villas and Marriott Maui Ocean Club. You can find those deals by clicking here.

Timeshare Tax Increase Proposed in Maui April 18, 2011

Posted by John Stephens in : Hawaii timeshare, Marriott Timeshares, Sunterra/Diamond Resorts , add a comment

Talk of a hike in property taxes for Hawaii timeshare owners has made its way to the local government level on the Hawaiian island of Maui, as the Maui County Council considers a proposed rate hike.

According to a report in the Maui News, a plan offered by Mayor Alan Arakawa would raise the property tax rate for timeshare owners from $14 per $1,000 of assessed value to $19.60, a whopping 40% increase. The plan is part of the County Council’s fiscal 2012 budget review process.

As expected, the proposal has met with stiff resistance from timeshare owners and the timeshare industry in Maui, which is one of the most sought-after timeshare locations in the world.  

“My BlackBerry is almost dysfunctional with all the emails I’m getting from timeshare people,” said Council Member Gladys Baisa.

Mayor Arakawa has stated that taxpayers should not actually pay more money under his plan. Instead, the proposed rate increases are designed to be “revenue neutral” and balance out declines in property values, he said, so that the amount of tax revenue actually collected by the county would remain the same as last year.

“Some people will try to play semantic words and say, ‘You’re raising the taxes,’” he said. “We’re not raising the taxes.”

Unless timeshare property values have decreased 40% in Maui since last year to balance out the increase, I can’t buy into that argument. Sorry.

This argument usually hinges on accommodation taxes, which are paid by hotel guests, and the perceived lack of accommodation tax that timeshare pays into local government coffers. The thought is that higher property taxes for timeshare can balance out the supposed revenue discrepancy. But this argument comes unhinged because timeshare is not the same as hotel accommodation due to the nature of the real estate ownership model. It’s apples vs. oranges and local governments have tried for years to confuse the issue as a way to get more money out of the industry. They should be happy that occupancy rates for timeshare have run about 20% higher than hotels, which means more money being spent in the local community and funding the jobs that those resorts create.

Timeshare owners are an easy target because, while they technically own property, they are not considered constituents and elected officials know they can try and ride their backs for more revenue. But the real opposition officials run into comes from the industry itself, which is in a position to fund reelection campaigns and knows that higher taxes are not good for business.

“I’m before you today to voice our concern over the proposed property tax increases for timeshares,” said Gregg Lundberg of the Westin Ka’anapali Ocean Resort Villas.

He noted that Maui timeshare units pay the highest property tax rate in the state, and said higher tax bills could discourage potential visitors from buying Maui timeshare units, or lead to more units being foreclosed.

He called the proposed rate increase “unfair.”

“Timeshare properties are good employers, are good for the community and pay their fair share of taxes,” he said.

Couldn’t have said it better myself.

Maui is home to some wonderful timeshare properties such as Marriott Maui Ocean Club, Westin Ka’anapali Ocean Resort Villas and Diamond Resorts Ka’anapali Beach Club. Timeshare resale weeks at these, and more, resorts on Maui can be seen on the BuyaTimeshare.com website by clicking here.

Bluegreen to Provide Sales Support for Manhattan Club Timeshare April 14, 2011

Posted by John Stephens in : Bluegreen Resorts, News & Events , add a comment

Here is a real indication of the sign of the times in the timeshare business.

The Manhattan Club, the upscale, urban timeshare located on West 56th Street between Broadway and Seventh Avenue in the heart of New York City, has contracted with Bluegreen to provide sales, marketing and title services on behalf of the resort.

Bluegreen brings the Manhattan Club into its fold as it expands its fee-based services business as part of its strategy to generate revenue without building new developments. The down economy has pretty much pulled the plug on new projects, so the logic works like this – if you can’t build ‘em, join ‘em.

Up until now, Bluegreen has been targeting resorts that were either older or without the resources necessary to stay competitive in the new economic reality (translate: sales were down and they couldn’t keep their heads above water). So Bluegreen comes in and contracts with those resorts to essentially take over their sales and marketing department, sell weeks on behalf of the resort and split the profits.

Sounds like a win-win for both. The resort sells weeks and Bluegreen makes some coin with little or no capital outlay.

Bluegreen isn’t the only brand to think of this, as Wyndham not only has a fee-based services department but will also re-brand a resort if the property is agreeable. Again, cha-ching for Wyndham.

I actually think it is a great idea for the brands, which have been in need of new revenue streams since the economy tanked and they needed to make up for lost sales.

The problem is that small and medium sized resorts are now caught in the middle. Unless they are sold out and flush with cash from maintenance fees and successful in-house rental programs (good luck with that!) they will be tempted to turn the keys over to a brand to help generate revenue and even re-brand if needed.

Most of the time, whoever controls the cash, wins. So where does that leave a resort in need of sales or someone to come in and create new revenue streams to keep them afloat? Probably swallowed up by the big brand.

Bluegreen’s own press release gave an indication of this when they said “The addition of The Manhattan Club to our growing number of fee-based service clients will provide the opportunity to our Bluegreen Vacation Club members to experience New York City and will provide purchasers of The Manhattan Club product through Bluegreen the opportunity to experience 56 other Bluegreen Vacation Club resorts in the United States, Aruba and the Bahamas”.

So Bluegreen is expanding its empire by bringing in the Manhattan Club, which becomes just one of “56 other Bluegreen Vacation Club resorts”.

What should make smaller, independent timeshare resorts concerned is that if it can happen to the Manhattan Club, one of the best-known timeshare resorts in one of the best-known cities in the world, then it can happen to anyone.

In the long run, maybe this is the best thing that can happen to the industry. It has been leaning towards the brands for years anyway and if the economy is taking its toll on smaller resorts, then perhaps it’s time for the rich to get richer. After all, owners will want to know that their resort has the resources to renovate when needed and provide a great vacation experience.

Fortunately for you, you can buy Manhattan Club timeshare right here on the BuyaTimeshare.com website without having to pay the inflated prices that Bluegreen will undoubtedly charge to cash in on their new agreement. You can find those Manhattan Club timeshare weeks available for sale by clicking here.

Rumors Abound Regarding Disney Timeshare April 11, 2011

Posted by John Stephens in : Disney, News & Events , add a comment

Rumors about a possible new Disney timeshare development, changes to closing cost payments and progress at the new Aulani resort in Hawaii have had Disney Vacation Club in the news over the last few weeks.

According to multiple news sources in Orlando, Disney officials have submitted plans with the South Florida Water Management District for construction and other improvements on land adjacent to Disney’s Grand Floridian Resort & Spa. The plans include the construction of a multi-story building that would be located on the shores of the Seven Seas Lagoon between the Grand Floridian feature pool and the Wedding Pavilion.

The plans do not state the exact purpose of the building, but such applications filed with the SFWMD have been among the first tangible evidence of previous Disney timeshare developments including the Bay Lake Tower at Disney’s Contemporary Resort and the Treehouse Villas at Disney’s Saratoga Springs Resort & Spa.

Additional reports from the website MousePlanet.com state that Disney Vacation Club will also take ownership of a portion of the 900 current hotel rooms and suites at the Grand Floridian. This is similar to what DVC did at Disney’s Animal Kingdom Villas.  The fifth and sixth floors of Jambo House were converted into Vacation Club villas during construction of the new Kidani Village facility.

Such a move makes sense on several levels. Conversion is much cheaper than building new units, the villas would be ready for sale quicker and it would leave fewer hotel rooms for Disney to market. Remember that the average occupancy rates for timeshare hover around 80% as opposed to the 60-65% average for hotel rooms.  

The closing costs issue is a different matter, as existing DVC owners are now looking at having to pay closing costs for buying additional points. Traditionally, Disney Vacation Club has not charged existing members the closing costs or other fees associated with the purchase of additional points.

According to DVCNews.com, that has now changed and the exact costs vary depending upon the resort purchased, the number of points added and whether or not the add-on is financed through Disney.

New members have been subject to closing costs on their initial point purchase for several years.  With this change in place, fees will now be added to all contracts regardless of member status or the size of the purchase.

A Disney spokesperson was quoted in the report as saying “in the real estate industry it is an accepted practice for buyers to pay closing costs.  These closing costs can be included in the Member financing if they so choose.”

Don’t you just love it when timeshare developers refer to their product in terms of real estate when it’s convenient,  but market it as a “lifestyle product” when it suits them?  

All indications are that the construction on the Aulani resort in Hawaii is going well. So well, in fact, that Disney is offering tours of the facilities while they are still under construction.  

The project looks to be a success waiting to happen for Disney, but the whispers around the Aloha State revolve around how much the disaster in Japan will affect Hawaii tourism. Resorts are reporting steep drops in inbound visitation from Japan, understandably so considering what the Japanese are still dealing with regarding the aftereffects of the earthquake, tsunami and radiation leaks.

Disney has the Japanese in mind as they build Aulani since they have made no secret of their desire to further inroads into Asian markets. Last week’s announcement of the new resort and theme park development in Shanghai speaks to that strategy and they have a ready-made marketing arm for Aulani through the Tokyo Disney theme park. The consequences of the natural and man-made disasters in Japan could have an impact on Aulani sales, but only time will tell just how much sales will be affected.

Even with all this attention to new development, Disney timeshare resales are still the best bargain and you can see the deals on the BuyaTimeshare.com website by clicking here.

New Search Features Make It Easier To Buy And Rent Timeshare April 7, 2011

Posted by John Stephens in : New Features, News & Events , add a comment

If you’ve spent some time browsing the BuyaTimeshare.com website in the past few days, you’ve probably noticed some changes we’ve made to the site.

Our outstanding IT guys have incorporated new advanced search features into the site and given customers more information to make a timeshare purchase decision and meet their vacation needs.

The new features allow website visitors to find inventory by specific branded resort locations, brand names and regional areas, making this one of the most sophisticated search features in the resale industry. Visitors can now sort their search according to their specific needs, such as searching for resorts that offer scuba and watersports activities.

We’ve created our own proprietary algorithm, similar to the way Google operates, to give visitors the ability to find the exact property they are looking for without having to navigate through countless tabs and search pages.  

The new search results page has been refined to show additional relevant information, according to the needs of the visitor. For example, a search for a Marriott timeshare property will reveal that, as part of the Marriott Vacation Club system, the customer could also buy points in that program and get access to additional resorts.

Revamped resort pages show everything someone looking to buy timeshare could possibly want to know about a particular resort, including the current weather, nearby area attractions, resort descriptions, amenities at the resort and whether the available inventory is for sale or for rent. Contact details, including the phone number and address for the resort, are provided in case the buyer chooses to contact the resort. Google Maps is also included to show the visitor the exact location of the resort. In the Area Attractions section, the attractions are mapped out with directions provided from the resort to the attraction to give the buyer even more information to help them plan out their vacation.

A new login system has been created so existing customers who have chosen to sell timeshare through the BuyaTimeshare.com website can manage their own accounts. Sellers can now adjust the asking price for their timeshare themselves, based on the offers they receive, without the need to go through the company’s customer service department.

Customers can now post resort reviews, as the new resort pages allow anyone to make a review if they have an account with the company. These reviews will be very helpful for visitors looking to buy timeshare or rent timeshare at a particular resort.

Have a look and tell us what you think of the new features to the site by either commenting below or going to our Facebook page at www.facebook.com/rentatimeshare .

Timeshare Resales Emerges as a Common Theme During the ARDA Convention April 4, 2011

Posted by John Stephens in : ARDA, News & Events , add a comment

Last week, the timeshare industry gathered in Orlando, Fla., for the annual convention of the American Resort Development Association, the national trade association for the timeshare industry.

Our president and CEO, Wesley Kogelman, attended the convention and gave me his insights from the event.

Essentially, it looks like the timeshare industry is rebounding, with the financial sector beginning to thaw and lenders looking to engage the industry once again following the economic meltdown of September, 2008. Wyndham’s announcement of a new $400million term securitization is just the latest example of the brands beginning to attract funding. Whether this translates into job creation and new development remains to be seen, but the trend is encouraging.

Much of the discussion around online solutions, the digital revolution and the impact of social media was the same information that we’ve heard for the last year or so, according to Wes. What we’d like to see is the sessions moving beyond the “you need to engage through online and social media” to “what are the best ways to engage, how can you measure it and is it effective?” So far, they have not addressed these points at the convention.

Case in point was the keynote speech given by Terry Jones, founder of Travelocity. Attendees thought he would be providing tactical insight into incorporating online strategies for hospitality companies. While he did say that 65% of all travel is now booked online, generating $150 billion in 2010, anyone could have guessed that the internet has made a significant impact on travel. But he did say that 20% of all children between 6 and 11 now have cellphones. Gee, I suppose we can start selling to 11 year olds now.

We could have told ARDA and the rest of the attendees that online engagement with timeshare buyers and sellers through the web and social media is a very effective way to engage customers, as we have the numbers to prove it. But that’s for another blog coming up next week.

One area that Wesley Kogelman was very pleased about was the increased visibility for timeshare resales and the desire for the timeshare industry to finally begin talking about the issue in a constructive manner. Not only was there a Resale Forum (which ARDA has held for the last four years) but there were two additional sessions designated for resales along with the topic coming up in sessions ranging from the Luxury Fractional Forum to the Online Results session, the meeting about Postcard Companies and the State of the Industry address.

“It seemed that everywhere you went, someone was bringing up the issue of resales in the context of their session and instead of the usual finger-pointing about whose fault it is, the discussion was balanced and attendees were generally motivated to find solutions,” said Kogelman.

How developers create those solutions is yet to be determined beyond the infrequent in-house program and working with successful online companies such as BuyaTimeshare.com. While more developers seem open to working with companies such as ours, many still seem conflicted and hesitant. The problem is, while they still sit on the sidelines the issue continues and they need to understand that this is a market-driven situation that they cannot control. A timeshare week on the resale market is only worth what someone is willing to pay for it, unlike the artificial new sale prices charged by the resorts with marked up prices to cover the 55% sales and marketing costs which are built into that price point.   

At some point, resorts and developers will realize that transparency has overtaken the timeshare industry, thanks to the internet, and people visiting the resorts often know more about the resort and their sales prices than the salespeople themselves. Developers know how to build great resorts. Online companies know how to engage buyers and sellers in the new online world we live in.

It seems like a marriage made in heaven. Now, if only the developers would come to the altar.