What the Timeshare Industry Can Learn From The Cruise Industry

Last month I attended “THETRADESHOW” here in Orlando, an annual event catering to the travel industry. Travel agents from around the world come to the show to see and hear all about the latest “hot” travel places and special deals.

Many agents choose to spend a good portion of the show attending educational and product seminars in an attempt to learn more, be a “better” travel agent, and be of better service to their clients.

I had the honor of attending the “Building Client Loyalty” session, taught by Bernie Bloomquist. The program was put on by the Cruise Lines International Association (CLIA), and I would guess that I was the only “non-cruise agent” in the room. What an eye-opener. And what a great example for the timeshare industry.

(All information that follows is used with permission of Mr. Bloomquist.)

The seminar started with the question: “Why Do People Go To A Travel Agency?” The answer was divided into Overt and Covert Reasons.

Overt Reasons
Buy travel
Save money
Save time
Be efficient
Get information/opinions
Buy a cruise

Covert Reasons
Be treated well
Find a friend
Be listened to
Get attention
Be liked/respected
Have their dreams fulfilled

Interesting, isn’t it? If you compare these lists to the reasons why people attend a timeshare presentation, I would say that all of the covert reasons are identical. But it’s when we look at the overt reasons that the differences come to the forefront.

The overt reason that people attend timeshare sales presentations is because they have to, or because they were bribed to. Obviously, this puts the salesperson at a distinct disadvantage and the client in a defensive position from the start. And this isn’t the first time it has been pointed out by either me or other forward thinkers in the timeshare industry.

Nevertheless, after 35 years, what has the industry done to give the client another, even better, overt reason for attending the sales presentation? The answer, of course, is nothing. And this is why resale companies have a real advantage over the traditional sales process given by developers’ representatives around the world. If you visit a timeshare resale company, whether in person or online, you are there for the overt reason of buying a timeshare and saving money.

The presenter also made a point that has been lost on most traditional timeshare salespeople: Cruise agents (and timeshare salespeople) are NOT in the travel business; they (we) are in the people business. Translation: it is not about the cruise (timeshare), it is about how you are treated by the agent and how you will feel after experiencing the cruise (timeshare).

In the interest of sharing some of the great knowledge that was shared during the session, here are The 10 Fundamentals of Loyalty. (Timeshare developers read carefully!)

1. Make a powerful first impression. Make people think “I made the right decision by coming here.”

2. Keep it positive. Watch your language; change “Don’t forget,” to “Please remember.”

3. Personalize the transaction. It’s about trust, focusing on the client, and taking notes. This is directed to the thousands of salespeople who have the client fill out the “survey” while they go and have a smoke.

4. Treat clients as family. Unless you call your family “ups,” don’t use that term for your clients.

5. Deliver the best service. Be accurate, resourceful, flexible. Deliver what is promised (don’t pitch heat) and care about the quality of the clients’ travel experiences.

6. Deliver the best product. This should be EASY. Timeshare is a great product!

7. Exceed expectations. Give the clients MORE than they expect at every step of the way.

8. Respond quickly. Don’t let clients sit in the lobby while you eat a bagel. Also, return calls from your clients.

9. Turn “oops” into opportunities. Fix the customer first, then the problem. (More on this at another time.)

10. Communicate regularly, at least 4 to 6 times a year. Utilize newsletters, blogs, surveys, thank-you cards, webinars (like the one I’ll be doing on November 6th with Holiday).

CLIA also had at least 30 training seminars and/or videos and DVDs available for the agents. While I applaud ARDA for making a variety of training classes available to its members, I’d venture to say that the vast majority of the timeshare industry’s front-line staff (i.e., the salespeople) either don’t know of these opportunities or don’t make use of them. There’s room for growth there.

The biggest takeaway I got at this seminar? We are not in the timeshare business; we are in the people business!

Your Next Vacation: Don’t Get Stuck In “Puerta Backyarda”!

By Lisa Ann Schreier

We all know what the economy is like these days. Pretty scary times, and for most of us, pretty stressful. And the more stress we are under, from whatever source, the more we need to vacation. But when we look at the average price for a family of four to sleep and eat while on vacation in 2008 . . . it comes to a whopping $182.18 per day! With every dollar being precious, it’s easy to find excuses to spend that money in other ways. But the more we postpone—or worse, cancel—our vacations, the more stress we are under. And so the vicious cycle goes.

Lack of money leads to stress –> Stress demands vacation –> Vacation usually means spending lots of money that we may or may not have –> The idea of spending lots of money means we tend to cancel the vacation –> Which leads to even more stress.

I don’t propose to know the solution to our economic troubles. One look at my rapidly diminishing financial portfolio will tell you that much. But I know that there is an answer out there for everyone who is worried about rising vacation costs and the very real threat that they won’t be able to afford them.

Vacation Options

Let’s look at what your vacation options are this year:

1. Stay at home (also known as the “Puerto Backyarda” vacation).

Pros: No travel involved. Just head on out to the backyard or patio, close your eyes, and pretend.

Cons: No travel involved. Just head on out to the backyard or patio, close your eyes, and pretend. And then there are those pesky neighbors to contend with. Not to mention you might be tempted to mow the grass, paint the house, answer the phone, wash the car . . . you get the idea. And if you live in Montana, it’s rather hard to “imagine” a warm, sandy beach. While you could put “Beauty and the Beast” on the DVD for the kids, it’s not quite the same as seeing Belle in person.

2. Stay with friends and family–> especially if they live in interesting places.

Pros: You probably won’t have to pay for room and board. Laundry facilities, lots of conversation.

Cons: Lumpy beds (or couches). Having to do what your friends and relatives want to do. Lots (and lots) of conversation. You know what they say about fish and visiting friends and relatives: three-day limit. After that, “Danger, Will Robinson, danger!”

3. Camping

Pros: Ah, the great outdoors!

Cons: Ah, the great outdoors! Bears, mosquitoes, allergies, West Nile virus, and, of course, the outdoor bathroom “facilities.”

4. Timeshare Resales

Pros: Save 60% to 80% off developer prices. Over 5,700 resorts worldwide to choose from. Spacious villas and condos. High-quality amenities. The pride of ownership. Saving money on your future vacations. The ability to leave a vacation legacy to your children.

Cons: No “free gift,” because you’re not attending a timeshare sales presentation. Oh, well, nothing’s perfect!

Vacation Insurance

Timeshare is, quite literally, a Vacation Insurance Policy. It gives you the peace of mind that no matter what happens, you can afford to go on a vacation. Look at the other insurance policies you already pay for, each of which requires a not-so-good “occurrence” before payoff:

* Car Insurance: Accident—> Bad News.
* Renters’ Insurance: Theft—> More Bad News.
* Homeowners’ Insurance:Fire, Flood, Hurricane—> Really Bad News.
* Health Insurance: Disease—> Bad, Potentially Icky, News.
* Life Insurance:You’re Dead—> Particularly Bad News. Especially if it happens before you go on your dream vacation.

Now compare those policies with “Vacation Insurance”:

* Vacation Insurance: Vacation in condos, villas, and châteaux around the world for thousands less than others are paying—> Really Great News!

A Better Idea

Timeshare makes more sense now, doesn’t it? Timeshare is nothing more than pre-paying your future vacation costs. And while it’s hard to argue with the good sense of that concept—just think if you could pre-pay the cost of all of your future food at today’s prices—the relatively high cost of buying directly from a developer stops many consumers. Even so, from a long-term savings standpoint, an $18,000 developer’s timeshare is still a good idea. But now consider that same timeshare at a $6,000 resale price! That’s an even better idea—and a smarter and more affordable one, as well.

For more information about timeshares, check out Timeshare Insights, and be sure to visit Holiday, where they have a tremendous selection of timeshares at 60% to 80% less than developer prices. Remember, there is no such thing as a “used” timeshare!

Why Doesn’t The Timeshare Industry . . . ?

I was fortunate to attend the “Online Marketing in Travel 2008″ conference last month in Chicago. This interesting conference was put on by EyeforTravel, based out of London, and covered such topics as “Understand and Optimize Along the Online Marketing Value Spectrum,” “Promote and Protect Your Brand in the Social Media Space,” and “Understanding Today’s Online Traveler.”

Other than myself, guess how many people representing the timeshare industry were in attendance? Two, both from the Dial An Exchange European office.

Now, I can understand why no timeshare sales executives attended . . . not really the right venue for them. But why, with the travel industry facing difficult times (it was reported that 39% of occasional travelers and 31% of frequent travelers will travel less in the next 12 months) was no one there representing the marketing arm of timeshare?

Because a lot of timeshare marketing people have their heads in the sand, and continue to accept the same old “received wisdom” that has permeated the industry for years: “timeshare is not travel,” “timeshare is not a sought-after product,” “nothing is wrong with the way we market,” etc.

As many of you know, I come from a solid marketing background. I have a degree in Marketing and spent 15 very successful years as a top-notch media buyer and advertising manager in Chicago before moving to Florida. And some of you may know that I am putting the finishing touches on the Sales and Marketing chapters of the upcoming college level textbook, An Introduction To Vacation Ownership Marketing.

Many timeshare resorts don’t understand marketing. One of the points I took away from the conference was that Social Media involves a four-step process: People, Objectives, Strategy, and Technology. I feel that old-fashioned timeshare marketing falls short on three of these four facets by choosing to concentrate solely on “Objectives,” yet the objective is itself flawed: entice large numbers of people into your presentations, then be content with less than a 10% closing rate.

Should we be surprised that after the product has been pushed for over 35 years in this country, less than 7% of the population owns timeshare? I don’t know about you, but I’m not surprised in the least.

In working with Holiday Group, I know that they “get it.” They ask the important questions of consumers: “Who are you going on vacation with?” “Why are you going on vacation?” and “What do you want to do on vacation?” They also have a firm grip on the new technology, hosting informative webinars for anyone interested in timeshare, no purchase necessary. Imagine a company that educates consumers about timeshare with no bias.

I take my hat off to Holiday. They understand technology, they understand consumers, and they offer what consumers are looking for at substantially lower prices than developers. Mark my words, they will succeed while those who take the “same old-same old” approach will suffer a significant downturn in the near future.

————–

Lisa Ann Schreier, a/k/a “The Timeshare Crusader,” is the founder of Timeshare Insights, a consumer information source serving the more than 3 million Americans who attend a timeshare sales presentation or “pitch” annually, as well as the more than 4 million Americans who already own one or more timeshares.  Her first book, Surviving A Timeshare Presentation:  Confessions From The Sales Table, has been a big hit with consumers who are looking for the truth about timeshares.  She followed that success with  Timeshare Vacations For Dummies, and is currently co-authoring a college-level textbook.

Email: lisa@timeshareinsights.com

Another Thing I Wish Wouldn’t Happen

I just saw it again: a client who owned a timeshare came into a timeshare sales pitch and the salesperson convinced the client that his company’s timeshare was “better” than the one the client currently owned.

“But what about the maintenance fee?” the client asked. “I don’t want to pay twice.”

“No problem,” the salesperson replied. “I know someone who will buy back your timeshare and then you won’t have to pay two maintenance fees.”

On the surface, things seem OK with this scenario, don’t they? The client seemed happy and the salesperson for sure was happy.

But do a little digging and you’ll find out that the “someone who will buy your timeshare,” if he exists, is a crony of the salesperson who won’t be contacting the client until–you guessed it–after the ten-day recession period is over. At which point the client will find out that either the “someone who will buy your timeshare” doesn’t exist, or isn’t interested in buying the timeshare.

It happens every day at hundreds, if not thousands, of timeshares around the world, and while it upsets me, I have to place some of the blame on the consumer.

Please . . . if you find yourself in this scenario and the resort in question doesn’t give you information that you can corroborate on the spot, then refuse to do business with them.

As I like to say, “Put up or shut up.”

Getting More “Bang” For Your Timeshare “Buck”

Late last month, I had the pleasure of co-hosting a live webinar entitled “Making The Most Out Of Your Timeshare.” It was great fun and I enjoyed the many insightful questions that I received at the end of the presentation.

Soon afterwards, I was playing around the RCI Web site and was delighted to see that there were some new additions. Both Last Call and Extra Vacations had a discount attached to them, and many resort exchanges were on “sale” for as much as 50% off regular point values. Up to 50% off!

Just another example of how it pays to not only keep your exchange company membership valid, but also to check back with the Web site every now and then, even if you are not planning a vacation in the foreseeable future.

There will always be people who complain about timeshare. Some of those complaints are indeed valid–buying more than you can use, not being able to exchange for prime destinations in prime times, increasing annual dues, etc.

And then there are the success stories. As some of you know, I was a timeshare salesperson for more than six years in the Orlando area. I have sold weeks, points, RCI and II. Back in 2001, two couples from Minnesota purchased an RCI Points timeshare. Combined, they owned a total of 132,000 points. I recently spoke to them because they were planning another vacation to Orlando. In addition to the timeshare they owned in Orlando, they each bought a week in Hawaii.

This year, each couple was coming down to Orlando for one week and then jetting off to Hawaii for four weeks–yes, four weeks, each using a combination of their points and their weeks. And while these people are fairly bright, intelligent, motivated owners, they are not magicians.

What they do is carefully plan, check RCI every now and then to see what is available, and then take advantage of good deals. Do they pay a lot in annual fees? I’m sure the fees in Hawaii are hefty. But the interesting thing about these two couples is how much they enjoy timesharing and how much they recommend it to their friends and family.

If you enjoy vacations, want more “bang for your buck,” purchase the right timeshare for you–I promise that you will never regret buying a timeshare. Happy vacations to all of you!

Four Reasons to Buy Resale Timeshares

Reason One: You Save Thousands

The average price of a 2-bedroom timeshare when bought from the developer is about $18,000. From Holiday Group, it’s about $4,000. If you’ve been through a timeshare pitch, you know that the “rent vs. own” pitch holds some water . . . if you reach “break-even” within a few years. Compare that point using an $18,000 timeshare vs. a $4,000 timeshare.

Reason Two: You Aren’t Bribed

My #1 pet peeve about the timeshare industry. If the product is so good (and it can be), why do the developers continually bribe consumers? If anyone else or any other industry did this, they’d suffer the same horrid consequences–an average 10% closing rate.

Reason Three: There Are No Fake Prices

When you buy resale, the price listed is the price you pay. There’s no insulting “For you, we can drop the price by $_____” shtick, or stupid “The price is only good today” line. The price is clearly listed. The guy next to you didn’t just pay $2,000 less.

Reason Four: It’s A Timeshare Store

I don’t buy the whole “timeshare is not a sought-after product” line that everyone keeps repeating. The truth is the traditional timeshare developers go out of their way to make it as difficult as possible to buy this product. Just go ahead and call a timeshare to get a price. They won’t give you one. Call any store or any service provider or any Realtor and you’ll get a price. Go to the Holiday “store” and take a look. It’s all there for you to see and make smart choices.

Talking Travel with Lisa Schreier: Confessions of a ex time-share hawk

by Jerry Guo Jun 18th 2008 @ 9:00AM
Want to get the real scoop on time shares? Here to shed some light on what actually goes on inside the industry is Lisa Schreier, author of Timeshare Vacations For Dummies and Surviving A Timeshare presentation… Confessions From The Sales Table.

What is your background in the timeshare industry?

I started in the industry as a total “green-pea” out of necessity in 1998 as the Owner Referral Manager at a timeshare resort in Orlando. I earned my Florida Real Estate License in 1999 and for the next 6 years, I was a salesperson, a sales manager and the manager of the trial program at a few resorts around town before deciding to dedicate myself to educating people about timeshare. [Read More]

Other Resources:
Lisa’s Web age
Why Resales?
Timeshare Frequently Asked Questions
Holiday’s Free, Information-packed Webinars
Timeshare Library

Timeshare Seller Beware!

By Lisa Ann Schreier
If you are familiar with any of my postings, books and/or live events, you know that I am decidedly on the side of the consumer—alerting them for things to look out for when purchasing, or even thinking of purchasing, a timeshare.
Today is different. Today I want to shed some light on an even scarier subject: what to do with a timeshare that you don’t want or use anymore, and the disgusting companies out there ready to fleece you. [read more]

Visit Lisa’s Timeshare Corner

Visit Holiday’s Timeshare Webinar page

Don’t Get Stuck in Puerto Backyarda.

Have you read the papers lately? The economic outlook can cause a lot of stress. And the more stress you’re under, the more you need a vacation. During periods of economic troubles, the worst thing you can do is cancel your vacation. So what’s the cure for those of us who are fiscally concerned but  still need a break from the rat race? Vacation smarter!

Lisa Ann Schreier, author of “Timeshare Vacations for Dummies”, recently listed four  alternatives to the traditional vacation that could save you some money.

Read Lisa’s article to see why you shouldn’t think about depriving yourself of a vaction this year!

Other Travel Tips:

11 Tips for Smarter Packing

Vacation on a Budget

More info on timeshare

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