May 29, 2015 — I’ve been looking into my timeshare crystal ball again pondering the future of our industry and what will become of all those laboring daily in the marketing, sales & management fields collectively selling billions of dollars of ‘time’ each year. I contemplate that future because it seems some of the giants of our industry are gobbling up other developers and maybe, in time, there will only be a few active developers around – at least in the USA & Canada.
So Here’s The Scoop: By active I mean in marketing and selling modes. What I’m also about to suggest is above my pay grade but when you consider that there are some developers with several hundred thousand members and that surely must be profitable – then why would ‘a’ developer not want (e.g.) 1, 3 or 5 million members and instead of taking many decades to sell that many more slices of Paradise – why not just buy existing companies with their associated owners/members base?
In the corporate universe where ‘entities’ that already generate billions of dollars in annual revenue – and utilize all those lawful strategies that allow some huge corporations to pay little or no taxes, etc. — could not a well capitalized developer with the top tier lawyers and CPA’s, etc. take advantage of the system to institute the big timeshare buyout and really dominate the industry in a huge way?
Think of it this way. For every 100,000 new owners/members a developer would gain and using as example an average annual maintenance fee (AMF) of $850 – that’s $85,000,000 (Million) per year in additional gross revenue for that developer.
And just for kicks, if a developer could have 5 million new members then using the same AMF per additional member/owner that’s an extra $4.25 Billion in annual gross revenue for the company.
On top of that there would be all the new ‘shots’ to upgrade many of those owners/members that would surely generate bucket loads of additional money in the form of cash ‘deals’ or interest payments, etc.; plus all the additional revenue all those owners/members would spend at the developers’ resorts while vacationing.
Okay, just thinking outside the box here. I don’t really have a timeshare crystal ball but I’ve been told recently by a pretty knowledgeable insider that more buyouts are in the works; just keep in mind, I have no facts (yet) to back up this person’s assertions.
However this all brings me back to all who toil in the marketing, sales & management arena in our industry and, as I’ve written on several occasions, change in our industry is happening right before our eyes (‘market’ conditions, too), and some developers are buying out other ‘deals’. The field of ‘play’, so to speak, is shrinking.
Still other developers, post the recent Great
Depression Recession, have and will most likely keep their marketing and sales doors closed forever.
So for those marketing, sales and management personnel planning on an actual long term career in our industry that actually leads towards a retirement plan and time for those ‘golden-years’ – it wouldn’t be a bad idea, post haste, to get on board with one of those developers who’ll be around for the duration.
A good place to start that journey is right here at ITG. The developers advertising their career opportunities in ITG are outstanding companies, industry leaders and offer upward career mobility for those wise enough to take advantage of those opportunities.
Just remember though, when opportunity ‘knocks’ it is often very quiet like, as an example, a ‘click’. And often the great opportunities don’t fully reveal themselves until ‘we’ are well on our way through the ‘door’ – sort of like that journey of a thousand miles always begins with that first step.
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’.