2008: Timeshare’s Tipping Point?

Depending on what history you accept, timeshare will be celebrating its 40th anniversary next year. And I will be celebrating my ninth year in the industry.

The facts and figures on timeshare show continued upward movement in both the number of people who own and the amount of money generated. At first glance, it appears that the industry is thriving–and compared to the numbers in 1968, it is.

However, you only have to look past the numbers and speak to “the man on the street” to find that things are not as rosy as they could be. According to a recent survey of active leisure travelers in America, an astonishing 94% reported that they were not interested in purchasing a timeshare within the next two years. Ninety-four percent!

Unfortunately, the survey does not ask why such a large number of active leisure travelers are not interested in purchasing a timeshare. Anyone familiar with timeshare can tell you that timeshare ownership has any number of benefits, including:

• saving money on vacations
• more choices of vacation experiences
• higher quality vacation accommodations
• lifetime ownership

I suspect the people who reported that they were not interested in purchasing were, in reality, not interested in purchasing a timeshare by means of a 3-hour sales presentation.

It is my privilege to teach university students each year. The majority of the students enrolled in a timeshare class have a negative or neutral view on timeshare at the start of the semester. At the end of each semester, I ask them if their views have changed.

Not surprisingly, more than 87% of them say that their view of the timeshare product has improved, many to the point of asking me what is the best way to purchase a timeshare.

At the end of each semester, I ask this question: “If you could change one thing about the timeshare industry, what would it be and why?”

An overwhelming number of them (96%) say that they would change the way timeshares are marketed and sold.

I thought I would share some of their comments:
“Timeshares should be striving to create products that consumers actually wish to pursue rather than get pulled into something because of a gift.”

“I would change the way the companies recruit tours. I think it is tacky and horrible the way they set up booths outside of gas stations and in malls.”

“Change it to market more only to the people that can afford it. Less money to be spent/wasted on mini-vacs or hooks to people who could never afford it.”

“I would change the sales and marketing aspect. I don’t think free gifts should be given. There should be more advertising (TV, magazines, etc.) displaying timeshares in a good light to make customers want to buy instead of having to be bribed to even go to a presentation.”
And my favorite:
“One thing I would change would be the marketing technique. Although ‘free park tickets’ works, I feel it gives a negative, hokey impression. People know what they are getting into with this, but it seems like such a baiting type technique.”
These are college students. Tomorrow’s educated, savvy and critical timeshare prospects. I suspect that if given free rein, they could have a tremendous, positive impact on the timeshare industry.

Until now, the timeshare industry has done a very good job of “same old, same old.” Bribe the client, dazzle them with pretty pictures, tell them what they want to hear, raise the prices to offset extraordinarily high marketing costs, and then rake in the bucks.

As the industry approaches its 40th anniversary, I believe that it sits at a critical tipping point. It is time for positive change, or we run the risk of becoming outdated and left behind.

The good people at Holiday are, thankfully, part of this positive change. They have knowledgeable people on staff to guide consumers through the various timeshare products, an ever-changing inventory of timeshares available for purchase that don’t require a lengthy sales spiel, and they provide vast amounts of timeshare knowledge and information on their website.

My goal for 2008 is to do whatever I can to bring about this positive change. My working with Holiday to provide bigger and better “Timeshare Bootcamps” that were such as success this year will be a critical part of the plan. I’ll also continue to write and be the voice of the timeshare client to the industry where and when I can.

And don’t forget that you, the public, play an important role in all of this. Get educated, speak up, don’t fall for the “same old, same old,” and remember–it’s your vacation . . . get the most out of it!

–Lisa Ann Schreier, The Timeshare Crusader, is the founder of Timeshare Insights (www.timeshareinsights.com) and the author of Surviving A Timeshare Presentation . . . Confessions From The Sales Table, and Timeshare Vacations For Dummies. Ms. Schreier offers a 20% discount on her consulting services to Holiday clients. E-mail her at lisa@timeshareinsights.com for information.

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