April 14, 2017 — I have been cautioning for years that the online competition for renting upscale vacationing accommodations to JQP is growing in leaps and bounds. First, if memory serves me correctly, there was the explosion a decade or so ago of those “Extended Stay” properties around the world often used & rented by vacationers. At the same time most timeshare exchange companies and developers started offering deeply discounted deluxe rental accommodations to anyone with a ‘buck’ and as time moved along Airbnb entered the market with, today, “3,000,000 + listings” (vacation homes, etc.) in over 191 countries. And all that is just for starters.
So Here’s The Scoop: Now, if you haven’t seen the TV commercials, the new kid on the block is HomeToGo.com, who is boasting they have “The World’s Largest Vacation Rental Search Engine” with over 8,000,000 (Million) “properties from over 250 vacation rental providers”. And HomeToGo.com claims peeps renting through their website can save upwards of 40% off the rates for their spacious and fully appointed vacation accommodations.
Call those accommodations what you want, suites, villas, condos, homes, cabins or castles, etc. they all seem to offer, like timeshare developers, all the modern day amenities that comfort vacationers and make their vacationing lifestyle what our industry created about 50 years ago – a comfortable, secure, upscale and superior experience.
And by the way, those vacation accommodation
providers competitors seem to have no shortage on their menu of all the best and most sought after destinations vacationers desire worldwide. They are indeed everywhere most folks want to visit.
As for the weekly rental rates? OMG! The ones that I checked out in places like Hawaii, California, Vegas, Florida, Mexico and beyond often cost much less than the average annual maintenance a TS owner/member pays each year, which is, according to ARDA (American Resort Development Association), about $900, a contractual obligation often in perpetuity.
Then, when you add in the major exchange company fees and other applicable dues the weekly expense for a TS owner/member (Vs renting) can add up to around $1,100 for a week (or $160 per night), excluding, of course, the original cost of the TS plan, closing costs and any interest paid by those owners/members who financed the acquisition of their vacation plan.
Now don’t get me wrong because I’m not claiming the timeshare sky is falling this week.
However, considering the new wave of all those sales guests being Millennials (aka: Generation Y) and that damn near everything they do often begins in the ‘online’ universe where they check out all their options before they sneeze, so to speak – well, the future of selling slices of paradise may be predictable.
Especially when you consider the generation of sales guests coming behind the Millennials and whatever electronic gadgets they’ll be addicted to that will guide them through all their life’s decision making processes.
So to everyone working those magical little round tables around the world you might want to make hay while the sun is shining while you also consider what your online competition is offering your sales guests ‘today’ – and more importantly, what the online vacationing rental market place will likely to be in the next 2, 3 or 5 years.
Go on, have some fun and take an educated guess because some industry insiders believe that unless and until TS developers get ‘creative’ with the costs to buy, own and use the TS plan you are selling – and considering that the gadget-toting sales guests you meet & greet are growing exponentially and will continue to be 100% dependent on their electronic devices for (e.g.) ‘advice’ etc. – well, like I suggested, cipher it all out and see what you come up with.
One thing is for sure even for those whistling past the proverbial graveyard. Time stands still for none of us and there are shakers and movers behind the traveling and vacationing scenes moving to capture the lion’s share of the vacationing rental market and they will continue to be innovative and move mountains to affect the way millions and millions of holiday seekers secure their vacationing accommodations – and that is a Scoop crystal ball prediction, y’all can take to the bank!
Good Luck Out There
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