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10 Comments

  1. 1

    Karl

    That is a lot of weeks and that is also why there are so many scammers out here ripping owners off which continues giving our business a bad name.

    What is utterly pathetic about all of this is that it never had to be this way in the first place.

    Developers could have resolved this issue decades ago but instead acted and act like little children who refuse to eat their vegetables even though doing so is good for them.

    Resales and rentals have been a problem as long as I can remember.

    I’m sure hundreds of sold out HOA operated projects will bite the dust. Many of them, after paying exorbitant management fees simply have no money left over for proper maintenance to keep these properties up to par; let alone compete with new properties including TS’s, hotels, motels and extended stay places with all the modern amenities.

    And in turn their existing owners (and exchangers) may not want to return to their home base and many of the owners will simply stop paying sky-rocketing AMF’s.

    That of course will cause the HOA/Management company to keep increasing the fees on the remaining owners which in most cases are already at the point that it makes no sense to pay them.

    Probably RCI and II will kick a lot of them out of the exchange system too!

    Just look in the exchange directories at many of those old two story converted apartment/condo properties from California to Florida that were built 30 or more years ago; many may soon be gone and that will be more bad press.

    Shame on the developers, the HOA’s, the Management companies, the exchange companies and ARDA.

  2. 2

    In House Deal Maker

    Here, thank God, we only sell in-house; upgrades and referrals so what I’m hearing and reading doesn’t apply to us and others who aren’t selling to street or phone ups

    I heard that in 2011, industry wide, the % of kicks within the rescission period ran around 15% straight across the board for all first time buyers.

    I also read ARDA claiming that developers sold around $6.4 Billion (in 2011) but I don’t know how much of that was upgrading existing owners Vs street tours.

    It could mean that developers actually sold somewhere around $7.5 Billion (in 2011); if that was mostly to regular and then had a Billion dollars in kicks.

    It could also mean that in 2011 developers sold the $6.4 Billion that ARDA claimed and that number didn’t include the kicks so with a 15% kick ratio then developers really only sold something like $5.4 Billion which would be 1/2 of their highest year ever in 2007.

    Most likely cause is first time buyers getting online within the kick period and finding all those cheap resales and at the same resort they just bought making them all mad as hell!

  3. 3

    Sal

    Like the Hindenburg we’re going down in flames!

    Does anyone know of a real travel club deal (anywhere) that actually fullfills the promise?

    I’m ready for a change and if you know of one post it here. I can pack and be ready to roll for a real deal.

  4. 4

    Jack

    Never has a group of business leaders been provided so much information by their own satisfied clients spanning decades pleading with them as to exactly what their needs are and whereby had the Executives listened and then satisfied those desires they could have made so much more money, improved their corporate-industry image and prevented their own demise.

    Instead of doing just that timeshare developers arrogantly, stubbornly, stupidly and steadfastly chose to be 100% unresponsive and turned their backs on their clients, shut their eyes to other profitable opportunities within their own industry and tightly held their hands over already deaf ears!

    Actually history is littered with business leaders like that the world over and they all have one more thing in common.

    Ultimately, the market and their competitors will run them out of business!

  5. 5

    lisa

    I might not agree 100% with your math (but then again, I was a marketing major and I’m only on my first cup of caffeine this morning), but I do agree with the logic behind the numbers.

    Scary, scary numbers indeed.

    And I agree with Jack in that the business leaders have had the necessary information for decades and did little or nothing.

    Thanks for bringing this to the open. This is but one of the topics that we’ll be addressing later this month at the second Timeshare Board Members Association meeting in Orlando.

  6. 6

    Rex

    Oh boy, more meetings (LOL)!

    What we need is action.

    I am tired of losing deals and commissions because John and Mary get online and find they can buy a resale right here at my resort from an owner on e-bay or a resale company for a faction of what I sold it to them for.

    Like Lisa, I am not sure about the math but that is because I think the total time sold may be larger.

    Timeshares have sold in hundreds of countries for many years and I don’t believe for a second that anyone knows how many have been sold.

    If there are to be any more meetings someone ought to call an emergency meeting and have all the developers hold a summit in some God forsaken place like Outer Baldonia and have them stay in a one-star motel with no amenities eating only bologna sandwiches on dry white bread and make them stay there with no golf, alcohol, drugs, music, movies or sex until they fix the problems that are killing us all.

  7. 7

    raylando

    Scoop,
    While I agree with the premise of your message, I believe the math is way off.You are basing the number of Members=Number of Weeks and that simply isnt the case. Many members are multiple week owners. Also, points owners may have multiple weeks that are only considered a single ownership such as Wyndam while Disney’s point system doesnt have an underlying week equivalent at all. What the industry needs is a viable resale market supported by Developers, HOA’s and others. Seems to me with the frozen financial system putting the squeeze on new construction, developers would welcome the inventory…oh that’s right…the new ‘pay us to take your timeshare off your hands’ scheme may be doing just that…but of course to the detriment of Owners and HOA’s or at least to their loss. Which continues to contribute to the well deserved negative image of the Industry. So, developers just find ways to increase profitability by taking it away from their Sales people.

  8. 8

    BW

    Right on right on raylando!

    Seems to me with the frozen financial system putting the squeeze on new construction, developers would welcome the inventory…oh that’s right…the new ‘pay us to take your timeshare off your hands’ scheme may be doing just that

    And the developers are so short sighted that even when the evidence is overwhelming, and for years that owners will gladly pay someone to get them out of their TS the developers sit there with their thumbs stuck up their asses! Go figure!

  9. 9

    DZ

    Does that colloquialism about the soprano singer ring any bells?

    Do the developers care?

    I think not. For the most part the business model remains the same.

    Drag in the masses and then throw it against the wall and see what sticks!

    Ya got to admit developers made a lot of money of that model and as long as they still turn a buck they’ll keep on keeping on!

    Even in this depressed market they are still getting an impressive ROI (return on investment).

  10. 10

    Taco Bob

    Developers are still raking in a ton of cash and good on them; that’s my policy because I, too, like a pig at the trough am doing alright.

    But the developers also remind me of the fable of the goose that laid the golden egg and the couple that decided to gut the goose believing there must be a fortune in the goose’s innards; which was not the case.

    How it all ends is anyone’s guess and my only suggestion is for all of us to save up for the rainy day that is heading our way because the whole dynamic and changed.

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