March 20, 2015 — Since the notion of timesharing vacation accommodations first started when HAPIMAG AG kicked it all off in Zug, Switzerland on September 24, 1963, becoming “the first company in the world to launch a points-based right-of-residence product”, I thought some five (5) decades (50 + years) later it would be fun to speculate on some of the probable STATS that occurred in our unique world commerce over the last half of a century.
So Here’s The Scoop: First, from a political and historical perspective it was pure coincidence that on November 22nd, 1963 — 60 days after HAPIMAG launched their company in Europe — President John Fitzgerald Kennedy, the 35th President of the United States of America, was assassinated by Lee Harvey Oswald in Dallas TX (USA).
And OMG! For those of us who’ve been around since those days (and earlier) we can assure all who weren’t that during that era, in many ways, humanity was about to change dramatically and today we surely live in a different world – well, almost!
With that in mind; if you’ve ever wondered what it took for our industry to become what it is ‘today’ then consider, in part, the following likely STATS ‘As An industry’.
FYI: I used an unscientific formula but it was also based on some actual records going back to the 1980’s; including a little extrapolation, a guestimate here and there and other data in order to come up with a probable scenario.
As an industry we’ve collectively ‘toured’, worldwide, no fewer than 50 million sales guests.
As an industry we’ve most likely collectively ‘sold’ 18% of ’em, or about 9 Million folks.
As an industry at an average sales (contract) price of $12-K – in today’s U.S.D – we sold about $108 BILLION worth of slices of Paradise.
As an industry, excluding any RTU (right to use) for X-years plans that have expired over time, if 15% of all owners/members defaulted and/or ultimately walked away from their TS plans for whatever reason(s) then, theoretically, there could be upwards of 1.35 Million slots (weeks) of unwanted time ‘hanging’ out there somewhere.
As an industry we still pretty much ‘hawk’ people over the phone or walking down the street, etc. At a (e.g.) 20% marketing cost and excluding additional premiums (gifts), expenses, and sales commissions, etc. we’ve likely spent about $21.6 Billion just on
advertising hawking marketing.
As an industry spanning those 50 years, individual marketing and sales careers were and continue to be short lived, but ‘someone’ had to invite those 50 million sales guests and ‘someone’ had to meet/greet ’em all and then sell and close those 9 Million ‘deals'; so worldwide it’s anyone’s guess how many scores of untold thousands of reps really worked the marketing and sales lines over the last five (5) decades.
As an industry if the average time it took from meet/greet to the VLO process, etc. and then off to the gift center averaged four (4) hours then we collectively toiled 36 million hours making those 9 Million ‘deals’ happen.
As an industry if we spent, on average, 3 hours working with each of those 41 Million or so sales guests who didn’t purchase, too – that equals an additional 123 Million hours of ‘labor’ resulting in a ‘No Thanks, No Sale’!
As an industry if the marketing folks spent an average of 30 minutes just speaking directly with those 50 Million who finally agreed to attend the presentation that would be an additional 25 Million working (labor) hours.
As an industry that’s a total of 184 Million working hours for marketing and sales. And if the marketers ‘closed’ 5% of all the people they approached, they ‘pitched’ – collectively, worldwide – no fewer than 1 Billion souls to get those 50 Million sales guests in the doors!
As an industry we’ve sold sales guests on the importance and benefits of taking annual vacations and research has backed our claims, citing improved health, work ethics and attitudes etc. are derived from doing just that. And yet industry-wide over the past 50 years 90% + of all developers didn’t – and most still don’t – provide paid vacation time off from work for their marketing and sales reps (employees).
As an industry if, beginning this year, developers paid the average 2015 U.S. hourly wage of $25 for the next 184 Million hours of work then over the next 50 years their collective labor costs for sales and marketing reps on the next $108 Billion would be — excluding any additional bonuses etc. — about $4.6 Billion or 4.25% of sales, which might be significantly lower than what they’ve spent the last 5 decades.
As an industry, from the top down and over the last 50 years some made nifty little fortunes to be sure, some did extremely well, some did really well, some did alright and many others ‘got by’ (financially) while most marketing/sales personnel went on to new income-generating endeavors outside the Land of Time.
There are other STATS that I’d like to know about such as how many bottles of rotgut Tequila and cheap blankets were given away in Mexico in order to entice tourists to attend a presentation or how many ‘6-packs’ (cases) of Pineapples were dangled as lures by OPC’s in the Hawaiian Islands to get ‘em in the door since the late 1960’s…
Good Luck Out There
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Contributing sometimes extravagant, bombastic, emotional, pompous or even pretentious writings about the timeshare industry, Scoop covers an array of industry related subjects each week including inside information, tips, scandals, interviews, forecasts as well as new (good or bad) products and services — and, of course, all the ‘Good’, the ‘Bad’ and the ‘Ugly’.