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Marriott Takes Next Step Towards Spinning Off Marriott Timeshare Entity June 30, 2011

Posted by John Stephens in : Marriott Timeshares, News & Events, Ritz Carlton, Timeshare Resale , add a comment

The Marriott Vacation Club is closer to becoming a separate timeshare company.

According to Forbes.com, Marriott International filed paperwork earlier this week with the U.S. Securities and Exchange Commission designed to transition Marriott Vacation Club into a separate publicly traded timeshare company by the end of the year.

The new company will be known as Marriott Vacations Worldwide Corporation.

In a press release issued by Marriott, Stephen Weisz, president and chief executive officer of Marriott Vacations Worldwide Corporation, said, “Our filing today is an important step toward our spin-off, as we continue to be on track to launch our new company by year-end 2011.  With the spin-off of Marriott Vacations Worldwide, we look forward to tremendous opportunities to build our vacation ownership business and deliver value to our new shareholders.   We’ll have a new corporate name to complement our new future but the names of our industry-leading brands, Marriott Vacation Club, The Ritz-Carlton Destination Club, and Grand Residences by Marriott, and our focus on delivering outstanding vacation experiences to our over 400,000 owners, won’t change.” 

Marriott officials continue to state publicly that there will be no visible changes to consumers as a result of the transition. In the July issue of industry trade publication Developments Magazine, Weisz said that “this transaction will not affect our Marriott Vacation Club owners or Grand Residences by Marriott and Ritz-Carlton Destination Club members. They will see no changes in the branding of their properties, services, usage options, or use of Marriott Rewards points to access Marriott International’s hotels and other benefits.”

While Marriott owners are understandably concerned about the potential ramifications of such a move, the perception is that Marriott International is the one who stands to gain from the separation.

In that same issue of Developments, Marriott Vacation Club Vice President Ed Kinney said “we have $1.5 billion in inventory in our pipeline.” That’s some major inventory that Marriott isn’t moving anytime soon, considering that the entire U.S. timeshare industry reported total sales of $6.4 billion last year, only up 1.9% from 2009, according to the American Resort Development Association.

With stagnant sales and Marriott International’s stated desire to concentrate on the franchising and hotel management side of their business, it’s no wonder that they want to proceed with an amicable divorce.

The irony is that the Marriott timeshare brand is the strongest brand in the timeshare industry. Marriott timeshare weeks hold their resale value better than just about any brand in the industry and weeks tend to sell quicker than anyone else. It is this brand strength that owners are most concerned about losing if the spin-off leads to significant management changes at Marriott Vacation Club.

I can’t see where MVC would try to fix something that isn’t broken by tinkering with the brand or the level of accommodation and service that owners have come to expect. The issue is a long term one, since cutting the umbilical cord from the mother company could mean even slower development plans as the company reacts to its new status. And even more Wall Street pressure to perform with no hiding behind Mom’s skirt when times are tough.

The good news is that there are plenty of Marriott timeshare resales and timeshare rentals at wonderful resorts around the world. You can browse those weeks by clicking on the BuyaTimeshare.com website here.

Disney Vacation Club Timeshare Sales Drop in May June 24, 2011

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

In another example of the struggles that timeshare companies are encountering, new sales for Disney Vacation Club points fell in May for the second month in a row.

According to DVCNews.com, sales for DVC resorts (that can be tracked) fell 15.6% in May compared to April’s figures, which were also down. The drop was attributed to low sales at Animal Kingdom Villas and Bay Lake Tower at Disney’s Contemporary Resort.

The sales figures only account for the seven DVC resorts at Disney World along with Disney’s Vero Beach FL and Hilton Head Island SC resorts. They do not include numbers for Disney’s Grand California Hotel or for the new Aulani Resort in Hawaii, which is scheduled to open in August.

The Bay Lake Tower figures alone were down 21.6% from the previous month but, to be fair, the resort is 86% sold out so slower sales were to be expected. Even so, this is a pretty steep drop for such a high-end location and is the second lowest month for Bay Lake Tower in the last year. The resort is expected to sell out later this summer.

Animal Kingdom Villas also took a nose-dive. Normally selling an average of 46,000 points a month, the resort only sold just over 19,000 points in May.

But here’s the rub, and why this stuff isn’t rocket science. Bay Lake Tower just hiked their prices to $140 per point at a time when sales are down. Huh?

Both Bay Lake Tower and Animal Kingdom Villas are more expensive than Disney’s Saratoga Springs Resort, which currently sells through DVC at $99 per point. So Saratoga Springs sells at better than a 3-to-1 rate compared to Animal Kingdom Villas and they wonder what the problem is?

Are you kidding me?

When are they going to realize that it is you, the consumer, who sets the price of these things? You vote with your wallet and they don’t seem to understand this, but this wouldn’t be the first time that Disney showed their arrogance. Don’t let common sense get in the way of a good business plan.

Look, I know that Disney wouldn’t be Disney by making bad business decisions and they have done a wonderful job with their timeshare product. But, sometimes, don’t you just need to ask your customers what the problem is and try to fix it? I guess the customers have told them – through their sales.

And this doesn’t even take into consideration the timeshare resales market. Or does it?

Maybe consumers, who are much more savvy than they were a few years ago, have discovered they can go to sites such as BuyaTimeshare.com and buy Disney timeshare points at a lower cost than through the resorts?

Isn’t that always the case?

You know, or you wouldn’t be here. Take a look at the Disney timeshares for sale on the BuyaTimeshare.com website by clicking here.

State of Nevada Endorses Timeshare Advertising On The Internet June 20, 2011

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

For all the industry detractors (yes, I’m talking to you – old school resort developer) who discourage advertising timeshares on the internet, a bill just signed into law by Nevada Governor Sandoval  provides a clear endorsement of the practice.

According to the American Resort Development Association (ARDA), Nevada Senate Bill 200 was signed by the Governor last Friday, allowing advertising on the internet of timeshare foreclosures for sale.

We’ve been in the online advertising business for over 10 years and this is the first time I can remember that our form of advertising has received  such an explicit endorsement from a state legislature.

But it’s not just the Nevada legislature that gave the thumbs up to the process. According to the ARDA website, “ARDA and ARDA-ROC (Resort Owners Coalition) representatives testified in favor of SB 200 in both the Senate and Assembly, spending time explaining the benefits of internet publication of timeshare foreclosure sales, when owners–or prospective buyers–may be located anywhere in the U.S. or the world. Publication in local newspapers only (where a short-form publication is still required by the bill) was both expensive and not readily accessible for owners and potential buyers.  In addition to ARDA-ROC and ARDA, the Nevada Real Estate Division also supported the bill”.

This is an amazing turn-around for an industry that just a few years ago viewed the online advertising of timeshares as primarily a gimmick for rogue companies looking to fleece consumers. Now, the industry is advocating the use of the internet and recognizing the limitations of newspaper advertising, which we’ve been saying for years.

I realize that foreclosures are a sensitive subject and this law was passed primarily for the benefit of HOAs looking for ways to sell inventory and lower the potential costs of foreclosures on the resorts. Provisions were also placed in the bill to protect the privacy of timeshare owners and their personal information, which we wholehearted agree is an important aspect of the bill. But there is no denying that such recognition of the internet’s ability to help move timeshare inventory, especially in light of the current economic difficulties faced by some timeshare owners, is a clear validation of the business model that we have advocated for years.

Remember, great deals on Las Vegas timeshare inventory from Nevada, timeshare weeks in the rest of the country and even international timeshare such as Mexico timeshare can be viewed on the BuyaTimeshare.com website by clicking here.

Buy A Timeshare.com Celebrates Employee Appreciation Week June 17, 2011

Posted by Bryan Connelly in : General, New Features, News & Events, Timeshare Resource , add a comment

Despite the rainy morning, it’s still a great day at BuyATimeshare.com. Wrapping up an exciting Employee-Appreciation Week, the staff was treated to a lunchtime barbecue. Managers set up the grill, bought the food, and prepared a colossal feast and celebration. In addition to a week of ice cream sundaes, breakfast from Panera Bread, and even a masseuse, the annual BuyATimeshare.com Employee-Appreciate Week is a chance to thank a great team of professionals for over a decade of hard work and success.

Randy Medeiros, Sales Manager and Jason Dobbins, Chief Technology Officer, man the grill as the hungry crowd gathers.

To better serve our customers, everyone at BuyATimeshare.com has worked toward new innovations and products to improve the buying experience. Recent additions to the website have made it easier for shoppers to find a resort that suits them best. See the activities a resort has, on-site and unit amenities, as well as nearby attractions for couples and families alike. Over the past few months, everyone has joined together to make BuyATimeshare.com the best service to timeshare sellers, buyers and renters. And with so many people vacationing for less money, timeshare owners have a lot to celebrate too! A week of celebration has come to a close with a first-class barbecue that exceeded all expectations. It has been a busy spring as more timeshare owners are beginning to sell off their timeshares. Vacationers looking to secure an affordable vacation property come to BuyATimeshare.com as their top choice. And though the rainclouds quickly moved in, everyone was able to enjoy the sunshine and conversation with the neighboring businesses that were also invited to the party.

Chris Hand, Administrative Manager, and Chris Turcotte, Customer Services Manager prepared the food for the entire group.

Wesley Kogelman, President and CEO also enjoyed this chance to show his team just how much he values their dedication. A welcomed change from a day at the office, this tribute to the staff was “the perfect way to thank a hardworking group for everything they do to make BuyATimeshare.com such a success.”


A line of BuyATimeshare.com executives and guests waiting for a delicious meal

New Sales of Timeshares Were Flat for 2010 June 14, 2011

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

This is where you find out if you’re a “glass half empty” or “glass half full” type of person when it comes to the state of the timeshare industry.

First, the facts. According to a report in the Orlando Sentinel, the American Resort Development Association (ARDA) has released industry sales figures for 2010 which indicate that sales of new timeshare products edged up ever so slightly – to $6.4 billion in 2010 from $6.3 billion in 2009. Now, in some circles, $100 million would be a significant amount of money. But when you’re talking about the kind of cash that the timeshare industry had been raking in pre-recession, it’s more of a statistical bump than a growth spurt.

The figures, detailed in ARDA’s 2011 State of the Vacation Timeshare Industry report, are based on a survey of timeshare resorts, developers and management companies compiled by Ernst & Young on behalf of ARDA.

“The good news is we saw growth. It was modest, but we saw it mostly in the end of the year,” said Howard Nusbaum, president of ARDA, who told the Sentinel that the increase in sales is a positive indicator for 2011.

Now, the glass half full person will say that an increase, even if it’s only about 1.5%, is still an increase and good news as the industry continues to claw its way out of the economic downturn. The glass half empty person says these essentially flat statistics show that we’re still in the muck and struggling to make it, with little job creation or growth in sight. And both views would be correct.

When compared to the industry high water mark of $10.6 billion in sales in 2007, these numbers don’t measure up and show just how far the industry has fallen. However, these figures do show that the bleeding has stopped, revealing the first industry growth in three years.

Probably the most interesting fact reported is that the average sale price for a new timeshare week fell 5.7% to $19,308, the first time that the price has actually fallen since 2002. Occupancy rates also dipped, from 79% in 2009 to 78% last year.

The ARDA spin is that the industry is focusing on improved fundamentals and getting qualified buyers to tour resorts, according to the Sentinel. However, they also admit that the industry continues to cannibalize itself by worrying more about how to upgrade existing owners rather than bringing new owners into the market.

For example, in 2010, 45% of all timeshare sales involved people who already owned a timeshare with the same developer, up from 38% in 2009. At some stage, this strategy will backfire on developers as they cannot continue to go to the same well of owners and remain a viable sales product.

Many of you will say that, even at $19,308, the sale price for a new timeshare is still way too high. And you’d be right, which is why you’re looking into the timeshare resale market by coming to this website. New sale prices include an approximate 55% markup to cover the sales and marketing costs of the developers, which is why timeshare resales are so much lower in price. Like the pre-owned car market, these added costs don’t exist on the secondary market, which is why the prices are so good.

And that brings me to the main point of this topic – sales. Perhaps the real reason that industry sales are not as high is because of the effect of the internet over the last few years. Maybe it’s not just about the recession, but the fact that consumers are much wiser about the industry than they were in 2007 and the added transparency brought by the internet has removed the mask from the industry to reveal the real market value of the product, which is much closer to the resale price.

But you already knew this, or you wouldn’t be here reading this. So have fun browsing the resorts advertised on the BuyaTimeshare.com website for your next awesome timeshare vacation by clicking here.

Theme Parks Eliminating Discounts is Good News for the Timeshare and Travel Industry June 7, 2011

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

One way you can tell that the economy is rallying back in the tourism industry is when the theme parks begin to take back their generosity.

SeaWorld made a couple of announcements in the last few days that indicate they are trying to get back to normal with their pricing structure. The first was when SeaWorld Orlando and Busch Gardens in Tampa Bay announced they are ending a ticket promotion that allows Florida and Georgia residents buying one-day tickets to keep coming back for the rest of the year, according to a report in the Florida Today. The move comes as both parks try to capitalize on improving attendance and a wave of new attractions, including the new $40 million Cheetah Hunt roller coaster in Busch Gardens.

This hits the drive-to market right between the eyes and is a bold move considering the drive market was their bread and butter market during the recession as visitors looked for ways to reduce vacation costs. The incentive was used to get people within easy driving distance to attend the parks, even if it was just for a day trip. The removal of this incentive indicates that the parks are concentrating more on longer stays now that travel numbers to Orlando are at record levels, with over 50 million visitors to Orlando last year.

And longer, multiple overnight stays means visitors will be looking for accommodation, especially timeshare rentals.

Just a few days later, SeaWorld announced a hike for the price of its two-day combo ticket to $119.99 per adult, according to the Orlando Sentinel. That’s up four percent from the $114.99 it had been charging for tickets good at SeaWorld Orlando plus either the Aquatica water park or Busch Gardens Tampa Bay.

Now, you may be thinking “great, prices are going up at the worst time.” But this is actually good news for the industry as more travellers, and a tourism industry back to normal, is not only good for the economy but creates the confidence in tourism operators to develop new products and grow the industry again. The flow-on effect for the timeshare industry will mean more people in resorts and lead to the type of refurbishment and new development needed to keep the timeshare industry moving in the right direction.

But, if prices are beginning to rise, now is the best time to buy timeshare or rent timeshare, especially now that summer is here. Don’t wait on the sidelines while the inventory gets snapped up. Check the deals on the BuyaTimeshare.com website by clicking here.

Island One Timeshare Company Emerges From Bankruptcy June 2, 2011

Posted by John Stephens in : News & Events , 1 comment so far

Good news for timeshare owners of the resorts owned and operated by Orlando-based Island One Resorts, as the company has successfully emerged from Chapter 11 bankruptcy.

The company issued a press release stating that the U.S. Bankruptcy Court approved a restructuring plan which became effective May 27.  The plan was sponsored by a company called Timeshare Acquisitions LLC, which was established to acquire the reorganized equity interests in Island One and Crescent One LLC.

The reorganized company retains operation of its eight resorts in Florida although, according to the agreement, Island One will no longer have an interest in Chenay Bay Beach Resort in St. Croix. The resorts have operated as normal throughout the process, according to Island One, and the HOAs have been unaffected during the negotiation.

“This restructuring allows the company to move forward with the capital necessary to implement our strategic plan,” said Deborah Linden, co-chair of the board. “We are now financially and structurally positioned to capitalize upon a very deliberate strategy for growth.”

Linden will focus on strategic planning and identifying opportunities, while Sterling Stoudenmire IV will become CEO of Island One Resorts after serving as chief operating officer during the restructuring period.

Island One Resorts operates eight resorts in Florida: Barefootn Resort, Bryans Spanish Cove, Liki Tiki Village, Orbit One Vacation Villas and Parkway International Resort in Orlando; The Cove On Ormond Beach; Charter Club Resort of Naples Bay; and Crescent Resort On South Beach.

Something like this is never good to be hanging over the heads of owners, despite the assurances of management that all is well. Anything can happen during a bankruptcy process, so it is excellent news that owners can rest assured their ownership interests are intact.

Now the real issue becomes how these resorts proceed into the future, especially in regard to any upgrades and refurbishments that are needed. Reserves are an important part of timeshare management and prospective buyers should ask resorts about their reserves and maintenance plans in order to ensure that their resorts are properly maintained and managed.

Florida timeshare is always a good value since people looking to buy timeshare or rent timeshare know they can usually depend on great weather and a chance to unwind and relax in the Sunshine State. You can find excellent deals on these and other timeshare resorts on the BuyaTimeshare.com website by clicking here.