April 4, 2014 — Based on several reports and studies I read recently it would appear that the travel, vacationing and hospitality industries have once again become the ‘hot’ market it was prior to the ‘Great Recession’, which officially kicked off in December of 2007. It also seems that those holiday merrymakers with incomes exceeding $100,000 are leading the vacationing charge — in leaps and bounds.
So Here’s The Scoop: Actually, one report for 2014 that I subscribe to suggests that 85% of those folks will indeed be vacationing sometime this year. If true, that represents yet another increase among this demographic over the percentage of those who traveled in 2013 — which, in turn, was higher than the 2012 stats.
Why it could mean things are getting better, despite what some talking heads on TV, the radio and in print keep endlessly asserting to the contrary while running their mouths off non-stop.
Conversely, it is also suggested in these reports that travelers in lower income brackets “hope” to travel this year, too, but nearly 50% of those good folks plan, now brace yourself Bubba, to “visit a relative” for their vacationing happy-times. Maybe they’ll camp out in their back yards, too. I’m just saying.
Yet another study suggests that in both demographics and out of all their consumer expenses (housing, food, car payments, utilities, education, entertainment and insurance etc.) the average amount of money they’ll spend to vacation (based on their past trends), will only be about 3-4% of their annual gross incomes.
Translated: If a Timeshare sales guest is grossing $40-K per year that indicates their annual regular normal vacationing budget ‘for everything’ would be about $1,400 for the year; and the annual comfy zone for those $100-K + earners & vacationers would be around $3,500 +.
One last tidbit to ponder before I get to the point and that is these reports and studies are asserting that in both demographics vacationers are only willing to spend about 20-23% of their entire vacationing dollars towards their accommodations and they are all scouring the ‘wireless’ universe looking for ‘super saver deals’.
Which brings me to the main issue this week and that is in 2014 (e.g.) a family of four with a combined gross annual income of around $100-K just isn’t ‘netting’ that much money to have enough left over to acquire a vacation ownership interest in the (e.g.) $15-$25-K+ range.
In fact, I would submit that any TS Execs and marketers who think $100-K (gross) income in 2014 is ‘darned good money’, well I won’t say they are wrong but instead suggest they are sadly mistaken and those ‘believers’ are probably mentally stuck back to a time, say the 1980’s, when it was a pretty good chunk of ‘change’ — but not today, people!
And as for a family of (e.g.) up to four with ½ that ($50-K) annual gross income in 2014; forget about it!
And for you developers still paying bucks for those $40-K annual gross income tours in 2014. Grrrrr!
Why so many TS Exec’s are hell bent on ‘hawking’ and wasting capital, human resources and precious selling time on sales guests who have no possible way in the world to buy or afford a TS plan is beyond my reasoning power.
That is why I’d like to start a military style boot camp for ‘some’ developers, their exec’s and marketers who assert that low income sales guests are just hunky-dory — and a boot camp especially for those ‘personnel’ at the top who gladly pay out cold hard cash and accept $39,999 to $49,999 annual gross income sales guests as being ‘qualified’ regardless of their family size.
Of course they wouldn’t show up for training, so on behalf of thousands and thousands of the front line troops around the world forced to take these tours and who must remain silent, here is how I would kick off my training — and for illustration purposes I’ve ‘tapped’ my own U.S. Army basic training & AIT experience, with also a little help from the character Gunnery Sergeant Hartman in the 1987 movie “Full Metal Jacket”.
‘All right, listen up people and fall in. Dress right, dress! What is your major malfunction you morons? I said FALL IN! You scumbag maggots make me want to vomit! I’m giving the orders here, people. Do you understand? I CAN’T HEAR YOU!
I am Sgt. Scoop, your senior Drill instructor. From now on you will speak only when spoken to, and the first and last words out of your filthy sewer pie holes will be “Sir”. Do you maggots understand that? Am I clear? I CAN’T HEAR YOU!
Alright, now how many of you maggots are producing YTD VPG’s below $2,000?
Oh my God! Why my dearly loved and departed Grandmother can produce higher VPG’s and she passed more than a decade ago.
What is the matter with you people? Didn’t your Mommies and Daddies show you enough attention when you were children?
Don’t you understand that the higher income targets generate YOU PUKES more sales and profits and if you increase the income requirements of all your targets you will become a weapon of PROFIT, praying for only high income earners!
I will TRAIN YOU. I WILL MOTIVATE YOU. You will become the most feared profit generators in the world. I WILL MAKE YOU SNIPERS OF PROFIT!
Show me your for profit faces! – “AAAAAAAARRHH!” That’s a FOR PROFIT face, now let me see your for profit faces!
Jesus Christ, that’s not for profit faces; try it again ladies and this time sound off like ya got a pair!
None of you convinced me; work on it!
You are all pukes and the lowest form of life on Earth. You are not even human beings. You are nothing but unorganized grabastic pieces of amphibian crap!
And because I am hard, you will not like me. But the more you hate me, the more you will learn, earn and generate higher VPG’s and more profits. DO YOU UNDERSTAND?
I CAN’T HEAR YOU!
I am hard but I am fair. Here you are all equally worthless bottom feeding scumbags and my sole mission is to weed out all non-hacker heathens who are commie loving socialists with anti-capitalistic and low profit tendencies. DO YOU HEAR ME?
In my beloved Timeshare business we only want highly motivated troops that can cut the mustard and embrace basic fundamental sales and marketing practices and procedures that generate more net sales, higher VPG’s and increased PROFITS!
Do you nitwitted knuckle dragging Gomer Pyles understand that? I CAN’T HEAR YOU!
PLATOON – Right FACE! Forward MARCH: I don’t know but I’m being taught – selling to low income tours is like pitching to a rock. Sound off – Bring it on down! One, two, three, four 1,2 – 3,4!
PREPARE TO DOUBLE TIME. DO IT!
MOVE IT – MOVE IT – MOVE IT!’
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’.
Stay tuned for what is sure to be a fun ride and check back to Timeshare Scoop du Jour each week for more of the inside scoop.