Timeshare Resales Emerges as a Common Theme During the ARDA Convention April 4, 2011
Posted by John Stephens in : ARDA, News & Events , trackbackLast 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.
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