Holiday Releases Mega Marketing Timeshare Report

Holiday Equity announced the release of preliminary results of their privately funded timeshare marketing study.

David Skinner, Holiday's President, stated, "Unlike studies by industry groups that focus on buyers and the reasons they love timeshare, Holiday chose to turn the tables and focus on non-buyers and their opposing views.

Skinner stated the primary question Holiday addressed in the research was: "With 110 Million adult households in the US, and after nearly 30 years of active timeshare sales, why are there only a mere 4 percent that own timeshare?"

The comprehensive Holiday study followed four integrated tracks. The first classified a database of 14,000 buyers and non-buyers by demographics using the PRIZM system developed by Claritas. PRIZM (Potential Rating Index for Zip Markets) attributes 66 cluster codes of socioeconomic characteristics to each data entry.

"It is so detailed," Skinner said, "it will show your family grouping, the car you drive, and the magazines you read."

This was followed by two online surveys of owners and non-owners, their vacation preferences, timeshare awareness and product opinions.

The final phase, a battery of live and online focus groups, probed the social and behavioral interactions between timeshare owners and non-owners when presented with different sets of vacation alternatives.

"The consumers in our focus groups were incredibly candid," Skinner notes. "They shared several levels of reasons why they love and hate timeshare, and they gave us some valuable insights on how we might want to position the product to best appeal to a broader segment of the market."

After six months the Holiday study is nearing completion, and already striking differences with commonly held industry beliefs are evident.

As David Skinner said, "While the recent American Resort Developers Association report concurred with our averages, we wanted to look deeper than just averages. For example, we were able to identify details that indicate many timeshare owners are among the wealthiest consumers in the country, and two of the Prism clusters dominated the owner mix by 300 percent compared to general population distributions. These are significant findings!"

"Our challenge now," Skinner said, "is to fully digest what we have learned and develop an action plan that draws on the new insights provided by the four tracks in this research. We are optimistic that we and our affiliates will find this to be one of the most valuable tools in our strategic arsenal, and will prove to be a true competitive advantage in the timeshare marketplace."

Timeshare Is Now A Reality, Costa Del Sol Project Inaugurated Yesterday

With President Fernandez’ attendance the timeshare project was inaugurated yesterday the Costa Del Sol in Juan Dolio.

Coast del Sol is a hotel, real state and timeshare project where US$14 million were invested.

Constructed in 28,000 square meters, it integrates hotel rooms “sold” to interested tourists and administrated by the Embassy Suites Los Marlins that will rent them with the services proper of a beach tourist center.

In Luis Jose Asilis, project president’s opinion, the concept creates tourism of permanent character, non-seasonal; because the room owners can visit the country as many times as they want but, while they are not using it, the property can be rented as any hotel would, the owner’s proportional earnings after paying for operational costs, represent an investment return.

The tourist structure, of 140 timeshare rooms, restaurants and bars, will offer its facilities to the Metro Country Club members and the room’s owners will be able to enjoy the golf course.

Asilis informed that all Costa del Sol rooms are sold.

Royal Oasis Timeshare Owners Take Legal Action

Timeshare owners at the closed Royal Oasis filed a class action suit against the resort owner in a Florida Federal Court on four counts, including breach of contract.

The petition has been at least six months in the making and names Sunrise Properties Limited, Driftwood Freeport Limited and Driftwood Hospitality Management, LLC. as the defendants.

The owners say they have essentially been excommunicated from the resort since November 2004 and are fed up as their attempts to reach the resort have gone unreturned.

The Crowne Plaza Golf Resort and Casino at the Royal Oasis suffered two hurricanes in September 2004 and closed down.

In a November 4, 2004 letter, timeshare owners learned that the resort had anticipated re-opening the vacation club on June 1, 2005, but that never materialized.

Some owners were also informed that there was a hold on their timeshare points.

Desperate for answers, after not hearing anything for several weeks despite countless calls, e-mails and letters, timeshare owners reached out to this daily, The Bahamas government officials and even Prime Minister Christie.

Heading the list of plaintiffs which includes hundreds of other timeshare owners in the suit is timeshare owner Robert Snee of Massachusetts.

The 13-page legal document lists the four counts as breach of contract, breach of the implied duty of good faith and fair dealing, unjust enrichment and for a declaration of Snee and the class' ownership rights and interests in their timeshare units.

The Royal Oasis property includes a casino, country club and tower and is the second largest resort on the island.

Government is seeking out a buyer for the defunct resort and, at last report, there were two.

Attorney Carlin Phillips, of Phillips and Garcia, P.C. Counsellors at Law of Massachusetts, in an interview with The Freeport News, said with the sale in limbo, they believe the timeshare owners have at least a lease-hold interest and maybe even some kind of property interest in the timeshare units.

He pointed out that a lot of the owners who paid cash in advance for their timeshare are out thousands of dollars with contracts bought up for years.

"We're trying to assert their rights for monies they have lost in the past and what they will lose in the future," said Phillips. "Because if the resort is not going to be developed, they're losing year after year."

Snee purchased his unit back in November 2001 at the Vacation Club at Bahamia for $6,000 and his membership agreement entitled him to all the advantages and benefits of the club for 21 consecutive years.

After paying the balance of the purchase price in March 2002, he owned his unit and his rights don't expire until after the 2022 occupancy.

But he is not alone.

For some time, many timeshare owners were afraid to stop making payments to their maintenance fees after the closure of the resort for fear they would lose their points and their timeshare altogether.

There was, however, the hope the resort would reopen soon.

According to the claim, the November 1, 2004 letter from the defendants revealed that the members who lost their week would have their weeks replaced and that they were required to continue paying monthly payments and maintenance fees.

Pointing out the defendants never repaired or reopened the resort, the suit revealed the timeshare owners have not been notified about the status of their units and their rights.

It adds that the timeshare owners have been given no assurance that their timeshare interests will be protected if the property is sold.

According to the suit, a clause in the contract reveals that the membership agreement states that should the resort be delayed from performing any obligations by reason or as a result of any peril and in the event the timeshare owner is unable to use his unit as a result of damage to the unit, the resort — at its discretion — will provide either an alternate accomodation or refund one-21st of the price paid by the timeshare owner for each unit week the timeshare owner is unable to use it as a result of damage from an insured peril.

A Timeshare Q & A

Q: My ex-husband and I purchased a timeshare many years ago. When we divorced, the timeshare was forgotten about and never addressed in our divorce mediation. We used our timeshare once. I thought he was keeping up with the payments, but he wasn’t.

We’ve been sued for almost $5,000 in payments. I can’t afford a lawyer and haven’t been able to contact the timeshare’s lawyer. What can happen?

A: You owe this money, and because the time-share company has sued you, it will start to affect your credit history and credit score — if it hasn’t already.

You must answer the lawsuit and contact your ex-husband to work out how you are going to pay off this debt. You must also figure out how you and he will get rid of the timeshare.

Although you can’t afford a lawyer, at least consult with one for an hour or so to learn what you’ll have to do to defend yourself. Or, if you truly don’t have a dime, contact your local legalaid society, but pay off that timeshare.

Gov’t Looks At Timeshare Rules

The Cayman Islands Government has asked the Attorney General to look into the possibilities of regulating the timeshare industry in the aftermath of the failure of Indies Suites, Leader of Government Business Kurt Tibbett said.

“We certainly would like some way to protect timeshare owners in cases like [Indies Suites],” Mr. Tibbetts said.

Indies Suites failed after Hurricane Ivan because the operators were about 50 per cent underinsured and could not afford to rebuild the facility. The former timeshare owners of that property publicly called for some regulation in Cayman’s timeshare industry after they had to negotiate a compensation settlement for about 20 cents on their dollar invested.

Tom McCallum, director of The Reef Resort timeshare property in East End, said its owners would like to see regulation.

“Here at The Reef, the Thompson Group would be in favour of consultation between the private sector and the government that would lead to effective and efficient regulation of the timeshare industry,” he said. “Fair legislation and regulation always favour those who do business in a fair and ethical manner, hence the Thompson Group are very much in favour.”

The Cayman Islands Real Estate Brokers Association would like to see regulation as well.

“CIREBA agrees that the legal community should devise a means whereby the owner’s right to use [as with a timeshare] can be registered and protected,” the association said.

President James Bovell said timeshares are not the general market of the CIREBA members, but confirmed that members are allowed to handle re–sales. There are only six timeshare properties listed on CIREBA’s website.

Although Mr. Tibbetts did not get into any specific elements of regulation, the Indies Suites group had suggested at minimum timeshare operators should be required to have adequate insurance coverage to rebuild their property if destroyed.

The former Indies Suites club members would also like to see timeshare owners have a registered interest in the property. Because they were not registered, the former Indies Suites owner was able to sell the property to a third party without consulting with, or even telling the club members of the sale until months after the fact.

“There’s no protection for timeshare owners here,” said Mr. McCallum. “The laws do not allow for the subdivision of property to that extent.”

Mr. McCallum thinks it would be good for business to give timeshare owners a registered interest here.

“We’d love to be able to say, ‘your timeshare is registered in the Cayman Islands’,” he said.

Mr. McCallum said there had been discussions with the government years ago about this issue. However, he said the sheer volume of past timeshare sales “would instantly double the number of land owners in the Cayman Islands” if they were all registered.

Rod Broome, a former Indies Suites timeshare owner who represented about 230 other owners during the civil action against the former owners, was happy to see the Government respond to the issue.

“We are glad to see that the Cayman Government is finally going to act on matters related to the timeshare industry and take some action to protect the rights of timeshare owners in Cayman,” he said, adding that it is hoped any new regulations are enacted promptly.

“While for the ex–Indies Suites club members it is too late, for the Cayman timeshare industry this would be a big boost as we believe this would be the first of its kind of action in the worldwide industry to level the playfield between timeshare resort owner/operators and resort club members.”

Baby Boomers, Empty Nesters Lead In Timeshare Vacation Ownership

The American Resort Development Association (ARDA) International Foundation has released preliminary results of the new 2006 Timeshare Resort Owners: Who They Are Why They Buy study. The study of 938 recent timeshare buyers was conducted by Ragatz Associates and will be officially released in August.

Of recent buyers, only 18.5 percent are under 40, whereas 30.4 percent are 60 and over (and 8.8 percent are 70 and over), according to the study. Another 23.0 percent are in their 40’s, and 28.1 percent are in their 50’s. By comparison, among all owners, 9.3 percent are under 40, 40.2 percent are 60 or over (15.5 percent are 70 or over), 21.0 percent are in their 40’s, and 29.5 percent are in their 50’s.

Only 31.4 percent of recent buyers have children under 18 years of age living at home. For all owners, this proportion is even lower at 24.9 percent. This figure is down from 36.4 percent for those purchasing in 1996 and 34.3 percent of those purchasing in 2002, in accord with the aging baby boom generation.

The study showed a dramatic increase in the number of single females as recent buyers with the proportion of single females increasing from 8 percent in 1996 to 12.7 percent in 2005, a 58.5% increase. At the same time, the percentage of single male buyers has remained fairly consistent, with 4.1 comprising new buyers in 1996 compared with 4.3 percent in 2005. Overall, nearly one in five new buyers is single (17%).

The study also showed timeshare owners are:
• 83.0 percent are couples, whereas 17.0 percent are singles;
• 31.4 percent have children under 18 living at home; and,
• 41.5 percent are in their 40’s or younger, whereas 30.4 percent are in their 60’s or over.

“With the profile of the average timeshare buyer becoming increasingly diverse across population segments, this study underscores the flexibility and value of vacation ownership products for a broad range of consumers and lifestyles,” said Howard C. Nusbaum, ARDA’s president and CEO. “This study will be of great interest to those in the industry in terms of how timeshare is marketed and to whom. The owner base is shifting in accordance with the general population with an increasing number of empty nest couples and single women.”

Findings are based on two surveys conducted of resort timeshare consumers, including:
Consumers who purchased timeshare during 2005, or “recent buyers:” This survey involved mailing and e-mailing 10,000 questionnaires to a random sample of recent buyers who purchased in the U.S. in 2005, with names and addresses being obtained from RCI. A total of 938 responses were obtained for a response rate of 9.4 percent. This provides a 95 percent confidence interval of +3.2 percent for results overall.

Consumers who purchased their timeshare prior to 2005, or “all owners:” This survey involved mailing and e-mailing 10,000 questionnaires to a random sample of RCI members who have owned their timeshare in the U.S. for at least one year. A total of 1,547 responses were obtained for an overall response rate of 15.5 percent. This provides a 95 percent confidence interval of + 2.5 percent for results overall.

The American Resort Development Association is the Washington D.C.-based professional association representing the vacation ownership and resort development industries. Established in 1969, ARDA today has nearly 1,000 members ranging from privately held firms to publicly traded companies and international corporations with expertise in shared ownership interests in leisure real estate. The membership also includes timeshare owner associations (HOAs), resort management companies, and owners through the ARDA Resort Owners Coalition (ARDA-ROC).

The ARDA International Foundation (AIF) conducts research and develops education programming for the timeshare industry. The Foundation’s mission is to “support, conduct, and disseminate research and technical studies that will enhance and improve knowledge for the public and the industry, and develop educational resources that will optimize value, operations, acceptance, and service for the timeshare industry and the public.”

Turn Timeshare Tours Into Vacations To Remember

We've all seen the offers. Fabulous vacation packages in exciting destinations with wonderful resort accommodations - all at a price that's too good to believe. So what's the catch?

The truth is there really is no big catch. Typically, all that's asked is that you give up a very short amount of time to preview a beautiful vacation resort. And for those willing to set aside the time, the rewards can be great.

Whether you are a couple looking for a romantic getaway or a family in need of a vacation that offers more than a cramped hotel room, a timeshare vacation may provide the perfect opportunity for the vacation of your dreams.

You can enjoy beautiful resort accommodations, discount attraction tickets and more -usually packaged neatly into one grand vacation - at one equally grand price. Sure, you'll have to set aside time out of your vacation one morning to participate in their resort tour. But why not simply make that tour part of the whole vacation experience?

In today's travel economy, the timeshare concept is probably more widely accepted and more beneficial than ever before. Timeshare offers a one-of-a-kind opportunity to change the way you vacation. And timeshare tours are not the nightmare you may have heard about in the past. In fact, you may actually find that a timeshare vacation really does work for you and your family. And if not, you have nothing to lose. All you have to do is take the tour, say "no" and still enjoy a fabulous vacation!

At the very least, you can save hundreds of dollars off your vacation. Forget about the small hotel rooms. Spread your family wings in a spacious resort villa with all the comforts of home from a full kitchen to Jacuzzi tubs and big screen TVs. And if timeshare does suit your needs and budget, you'll put yourself in a whole new world of annual vacations that you never before dreamed imaginable.

Picture yourself in Orlando enjoying the magical wonders of Disney. After a long day in the parks, you could return to a roomy, comfortable suite where the kids can go one direction while the adults enjoy a quiet space all to themselves. Tired of eating out every meal? Fix your own meal in the kitchen, hit the pool or spa, and relax the night away in complete bliss.

There's no denying that a timeshare resort vacation is an exceptional opportunity. And whether you choose to make it a permanent fixture for your family or a one-time experience, chances are, it's a vacation package you won't regret . . . and certainly one you won't soon forget.

Know Red Flags Before Committing Timeshare Purchase

Timeshares and camping clubs are becoming popular alternatives for many Americans and can be great ways to enjoy a much-needed vacation. But, like everything else, it is important to do some research before you “show them the money.”

A timeshare is the right to use and occupy a unit in a building on a periodic basis, generally for a period of one week annually. A camping club allows consumers to keep a trailer, tent, camper or similar equipment at a land-based site for a designated period of time.

Indiana law gives the purchaser the right to cancel a timeshare or camping club purchase within three days after the execution of the sales contract. Sundays and legal holidays do not count in computing this period. Developers must provide purchasers with a cancellation form, and the cancellation notice is effective on the date postmarked.

If you are thinking about one of these two options, here are some guidelines to follow:

♦Resist high-pressure sales. You are under no obligation to make a purchase because you are given a prize, a free dinner, or a reduced-price vacation as an incentive to attend a sales presentation.

♦Read the entire contract and any literature you are given and understand what you are purchasing. Not all timeshare properties are of equal value, depending on their location and the time of year you are purchasing.

♦Ask others you know who have a timeshare or are in a camping club if they are happy with the guidelines of their contract, and find out as much as you can from them. This will give you the information you need to ask the questions you might not have considered.

♦Get a reliability report from the BBB about the company before you attend the presentation.

♦Verify everything before you pay. Be cautious about prepaying for multiple years. Timeshares, campgrounds or travel clubs may offer to sell membership vacation accommodations for five years or more. Take into account your physical and financial health, a company’s solvency, potential rising membership and maintenance fees, and the often poor appreciation of such investments, and take your time before committing.

When considering any vacation promotion, here are some “red flags” that can signal fraudulent acts. Be wary of salespeople who use high pressured tactics such as:

♦Demanding your credit card number before explaining all the conditions of an offer.

♦Requesting that you identify yourself by your credit card number (a sign of possible misuse of your card).

♦Refusing to provide all the information about the total cost of a vacation or travel offer.

♦Postcard or fax promotional mailings that require you to pay a fee or to purchase membership in a travel club to claim a vacation or travel prize.

♦Low rates on air travel requiring you to purchase an additional ticket for a companion.

♦Offers by companies attempting to undermine U.S. postal authorities by requiring a messenger or courier to deliver the timeshare package to you in exchange for your payment.

Legal Rights For Timeshare Purchase

You may have a cooling-off period if you have entered into a timeshare agreement.
However, these agreements are complicated by the issue of whether you signed up in the UK or abroad.

If signed in the UK, the cooling-off period is 14 days but if it was signed anywhere else in the EU then the cooling-off period is just ten days.

People also need their wits about them as many companies badge timeshare agreements as "holiday clubs" to get around the legislation.

Know your rights before you sign

l Don't simply assume that you have the right to cancel the contract.
l If you are at all unsure, do not sign the agreement.
l Check what you are being asked to sign and make sure that you can see the whole document.
l Check that the cooling-off period is actually stated in the agreement.
l Be sure that you actually want the goods or services being offered.
l Don't hand over a deposit unless you are sure that you actually want to enter into a contract.
l Remember that by paying a deposit you are entering into a contract.
l Make sure that you read all the terms and conditions of the contract.
l Ensure that if you do want to cancel, or send goods back, you do so within the timescale stipulated in the agreement.

Timeshare Company, Sunterra Offers SkyMed Emergency Service

Sunterra Corporation, a timeshare ownership industry, has entered into an agreement with SkyMed International Inc, to provide Club Sunterra members with a medical air repatriation services program. Club Sunterra members now can purchase SkyMed emergency services on a per-trip basis or can buy an annual membership. This program is available to North American members who are vacationing at a timeshare resort located in North America.

Should a Club Sunterra timeshare member become critically ill or injured while traveling more than 100 air miles from their home SkyMed will provide medically equipped air ambulance jet service to transport that member home to his or her trusted health care provider rather than to the nearest medical facility. Now this is a safe timeshare deal.

Are Timeshares Good For Business?

Timeshares are big business in greater Williamsburg, well over 3,000 units and at least another 400 coming.

But it's a business with a seamy underside and one that some say cannibalizes our motel rooms.

The unsavory element is the operation of “off-site personal contact,” or OPCs. They are sales reps who hang around shops hoping to entice tourists into a sales office with free tickets to local attractions.

“Those are called premiums,” said Ernest Liberator of Vacation Time Inc., who specializes in timeshare marketing. “It's almost a prehistoric approach, and it's intrusive.”

Fully 11 of 31 timeshare developments in Virginia are in the Williamsburg area, giving the industry its highest exposure statewide.

Liberator said the reps have to pay the businesses where they stand outside.

“It's what I call a replacement fee,” he said. “It's paying the business to replace the business they've driven off or the people who may not want to enter a business with someone loitering around outside.”

Chuck Davis, who operates Timeshare Resale Williamsburg, said the timeshares can afford it. “They can make a lot of money,” he said.

Davis said the OPCs get paid a fee for everyone who shows up for a sales interview as well as a small commission on sales.

“They're gypsies,” he said. “The same people you see lurking around outside 7-Eleven now will be lurking around a ski lodge up north this winter approaching people loading skies into their cars.”

Davis feels they give Williamsburg a bad name. “There are thousands of people who have bitter feelings about Williamsburg because of their experiences with timeshares,” he said.

Motel operators and others resent that timeshares do nothing to help promote Williamsburg tourism, since they're exempt from the room tax. Timeshares reply that they pay plenty of real estate taxes and advertise hundreds of resorts heavily.

Others in the business community have a more positive view of timeshares and their impact on the economy.

“Timeshares are a very important part of our tourism business here,” said Dick Schreiber, president of the Greater Williamsburg Chamber & Tourism Alliance. “Close to 20 percent of our visitors stay in timeshares. Only 50 percent stay in hotels, and the average stay in a timeshare is six days as opposed to an average hotel stay of two days. Timeshares are very important to us and should not be dismissed out of hand for any reason.”

Timeshares have toned down their tactics over the years. They no longer accost people in parking lots near supermarkets.

Liberator said he always advises his clients to use less “invasive” marketing strategies. “You want the customer to ask you for the information,” he said.

That information will lead the customer to timeshare salesroom. Those who have experienced a timeshare sales pitch know the high pressure.

“They're not popular,” Liberator said of timeshare salesmen. “They're not as unpopular as lawyers or reporters, but there's some distrust.”

Then why does it work?

Davis hasbeen in the business over 30 years. “That's one of the mysteries of my life. People are gullible. And they expect the people they meet to be honest. They are ill prepared to deal with someone who's dishonest and manipulative.”

Schreiber said all of the timeshare operators shouldn't be tarred with the same brush.

“I'm sure there are some whose methods are not as refined as we might like them to be,” he said. “But there are many others who are very responsible members of our business community.”

Outright misinformation is against state regulations, said Mary Broz, who oversees consumer protection for the Department of Professional and Occupational Regulation, the state agency that oversees timeshare sales.

The regulations are not exactly Draconian.

“The policy decision that the General Assembly has made in this area is in the direction of disclosure. After that, it's ‘buyer beware,'” she said.

She pointed to a seven-day “cooling off” period in which timeshare buyers are allowed to cancel the transaction at no penalty.

She said consumers who believe they have been deceived should contact her agency. They will investigate the complaint and forward it to the Board of Real Estate for action.

Broz said complaints about timeshares have ranged from 59 to 117 per year over the last six years. Most are complaints about the actions of timeshare boards and are similar to complaints the agency fields about condominiums, she said.

Broz said the consumer's only resource in many of these cases is through the courts, by bringing a civil action against the developer or the board.

Davis said Virginia is behind many other state's in regulating timeshare sales. For instance, he said Virginia does not require those working in a timeshare salesroom, the ones actually making the sales pitch, to have a real estate license.

“That's not to say I haven't heard lies told in salesrooms in Arizona, where you do have to have a license or in Hawaii, where the laws are very strict, but there's a limit to the lying,” he said.

He said requiring a real estate license to sell timeshares builds in disciplinary framework, because those engaged in dishonest or unethical practices can be stripped of their licenses.

“It is long past time that Virginia tightened the regulation of this industry,” Davis said.

Davis makes his living as a broker for those who want to resell their timeshares. He said depreciation is significant.

“It's like buying a Cadillac and it drops $10,000 in value the minute you drive off the lot,” he said.

He said that nearly half of the salesroom price of a timeshare is marketing and sales costs. Thus, customers who want to resell have to do so at a steep discount.

Timeshare Company Opens In New Mexico's Biggest Metro

Trendwest Resorts has opened its first sales center in Albuquerque at 6700 Jefferson St. NE. The timeshare business, which is part of Cendant Timeshare Resort Group of Orlando, Fla., has hired 25 employees in sales, marketing, telemarketing and administrative positions.

Earlier this year, the owner of the Conejos Office Park, where Redmond, Wash.-based Trendwest is located, decided that its 8,000-square-foot building, called the Conejos Executive Offices, was better suited for one lease, rather than 15. In mid-January, a letter notifying the tenants about the closure of the office park was sent out to the tenants at the time, giving the businesses more than two months to find another location. The 15 businesses were either on six month or month-to-month leases.

Trendwest first approached Vista Hills Partners, the owner of the five-building office park last October. Greg Foltz of Coldwell Banker Commercial - Las Colinas represented Trendwest in the lease.

"Albuquerque, in particular, is a key market since we have timeshare resort properties in the surrounding states and our presence enables us to provide residents and visitors an opportunity to purchase a lifetime of vacations," says Rich Folk, senior vice president of sales for Trendwest Resorts, in a news release.

Trendwest's network operates 59 WorldMark timeshare resorts in the U.S. and international locations such as Mexico and Australia. Trendwest is the exclusive developer and marketer of WorldMark, The Club, whose clients purchase ownership interest in the timeshare club through Trendwest.

Dewey Beach To Re-Examine Timeshare Ownership In Resort

Dewey Beach may no longer welcome timeshare ownership in the resort.

Hotels and motels, too, could lose the ability to convert to condominiums.

Dewey commissioners will consider the options at a Friday meeting at 6 p.m. at the Lifesaving Station on Dagsworthy Avenue.

Commissioners normally would not try to regulate property ownership, said Dewey Mayor Courtney Riordan. But in this case, timeshare owners could tilt town elections.

Commissioner Dale Cooke proposed stopping the part-ownership setups as a way to block that possibility. A single unit's several part-owners -- a group that may spend little time and harbor no real concern for the town -- could alter elections in mobilized group efforts on certain issues, Cooke said.

That's a situation that happened a few years ago, Riordan recalled, noting the more than 100 votes from the 48-unit Royal Surf Club timeshare complex.

"Nothing but a headache and a heartache for the town of Dewey Beach," Cooke agreed.

Yet Dewey needs its nonresident voters to fairly represent a town with 1,300 properties and only about 100 voting residents, Riordan said.

Other Delaware coastal towns also let nonresidents vote, unlike most municipalities.

Letting timeshare owners cast ballots in Dewey elections, though, relies on an outdated property-based voting system, Riordan said. "One man, one vote," he added.

Both Riordan and Cooke are up for re-election of their two-year terms in September.

Commissioners at Friday's meeting will also take another stab at keeping hotels and motels from converting to condominiums, a move now blocked by a moratorium.

Cooke was part of a Town Council that in 2004 passed a law allowing such switches. Since then, four hotels and motels in town chose that option. Riordan had opposed the measure and in 2005 joined with a group of residents and two newly elected commissioners to sue the town over it.

The Chancery Court lawsuit charged that it broke Dewey's zoning rules by allowing higher density limits in the new hotel room-sized condos.

A Chancery Court judge dismissed the case, saying that the law's effects did not show harm to the town. Following that decision, Riordan proposed changing Dewey's charter to let those unhappy with town decisions petition for public votes on issues -- a topic that the council will also consider at next week's meeting.

Commissioners late last year had directed the town's Planning and Zoning commission to consider revoking the condo-conversion law.

That body disagreed, deciding to let it stand. Commissioners have since appointed several new members to the seven-member commission, after five terms expired in the spring. Let the timeshare owners vote.

Rethinking Timeshares

WHEN LYNDA BETTCHER visits her daughter in New York City this August, she and her husband will stay in a one-bedroom suite at the four-star Affinia Dumont hotel, complete with a living room, a kitchen and a bathroom fully stocked with Aveda products. The cost? Orbitz.com and the hotel's web site advertise rates from $312 to $519 a night, but the Bettchers' nightly rate will be just $287.

Their deal: They purchased a timeshare. Timeshares — which are basically vacation condos used for a specific period of time each year — aren't typically praised for their cost savings. The industry has long been slammed for its high-pressure sales tactics and exorbitant prices and fees. In 2002, consumers paid an average $14,500 to purchase a timeshare week, according to a 2003 report (the latest available) by RCI, a timeshare-services company. And that doesn't include the annual maintenance fees that often run as high as $1,000, paid whether you use the timeshare that year or not.

But the industry has been evolving, and thanks to new sales strategies and a robust secondary market, there's absolutely no need to pay thousands of dollars upfront. You're also no longer tied to one week in a specific locale. With points programs, for example, you can now choose from properties located world-wide, provided you have the number of points necessary to redeem for your location, time and length of stay.

Here's how Bettcher got her deal: Earlier this year, the 55-year-old teacher from Portsmouth, N.H., purchased a 30,000-annual-points package for the one-time cost of $1,000 on Holidaygroup.com, a timeshare resale marketplace, and eBay. The annual maintenance fee for the package is $600, which makes her total outlay for the first year $1,600. (Each year afterward, the family will only pay $600 whether they actually use their 30,000 points or not.) For this year's vacation, Bettcher redeemed the points for two separate stays at the Affinia Dumont, one three-night stay in early August and the other a four-night stay later that month. She then rented out the three-night stay for $450, bringing the family's timeshare expenses this year down to $1,150. Next year, should the Bettchers decide to rent out part of their redeemed points again, their vacation may cost close to nothing.

Granted, there are setbacks to this arrangement. For one, points need to be redeemed well in advance should the Bettchers have their heart set on a specific time and location. And if some time in the future they find themselves unable to use up their points and cannot rent out the timeshare, the $600 maintenance fee will still be due.

Needless to say, timeshares aren't for everyone. Before you buy, you need to research a myriad of packages and locations. And ideally you should have the ability to plan your vacations at least a year in advance.

Here's how to make timeshares work for you:

Know What You're Getting Into
Timeshares should not be considered an investment. In fact, folks who buy timeshares directly from resorts — that typically happens after a sponsored "tour," which may or may not include a discounted hotel stay or other freebies (breakfast, for example) — should never expect to recoup their original cost if they sell, says Ted Toal, a fee-only Certified Financial Planner (CFP) in Annapolis, Md. "The purchase price, especially if you buy new, is inflated," he says. "Most people then finance it — and then have maintenance. The truth is, you can never expect to recover that price."

And you shouldn't always assume that a timeshare will be cheaper than staying at an equivalent hotel. Scott Leonard, a fee-only CFP in Redondo Beach, Calif., and a timeshare owner through the Marriott's Vacation Clubs program, estimates that his $1,300 annual maintenance fee is comparable — if not more expensive — than what his family would pay if they stayed at a regular hotel. Still, timeshares work out better for his family. "We have three young kids, so we don't want a hotel room. We want the kitchen and family room," he explains.

Don't Buy Direct
With as much as 50% of a timeshare's price going to cover developers' marketing costs, timeshare prices are seriously inflated, explains Bill Rogers, founder of the Timeshare Users Group, or TUG, an online community where people can exchange, trade or simply share information about timeshares.

You can find much better deals on the resale market, namely at web sites like tug2.net, RedWeek.com and eBay, where owners post timeshares for sale, rent and exchange.

Consider this: the average price for a timeshare week (or the equivalent points package) at the Hilton Grand Vacations Clubs, for example, was $24,000, according to a 2005 Bear Sterns report on the timeshares industry. RedWeek.com currently features Hilton resales for $12,000 or less.

Negotiate
The good news: The resale market is booming. On its web site, TUG recently featured nearly 1,900 "for sale" ads for timeshares in the U.S. and abroad. RedWeek.com has more than 5,000 ads. A recent search on eBay yielded nearly 900 results.

Give yourself time to find a location or program you like. Then, negotiate. "Most sellers are pretty desperate and they want to drop [their timeshares]," says Toal.

Bettcher, who has been buying and selling timeshares for the past eight years, advises buyers to be patient. "You should pay what you want to spend, not necessarily what the person is asking," she says. If they don't agree to your price, let it go. In time, the right deal will come along.

The best time to negotiate is late fall, according to Bettcher. "Most fees are due on the first of the year, so start looking in October or November. That's when [owners] are getting anxious to sell and are willing to drop their price," she says.

Rent Instead
Renting is a great way to try timeshares without the responsibilities of ownership. "If I were to do timeshares today, rather than buy I'd rent from owners," says TUG's Rogers.

To get the best deal, especially if you're headed to a popular destination, start your search early. John Locher, vice president of RedWeek.com, recommends starting a minimum of two months in advance.

If you're uncomfortable dealing directly with the timeshare owner — after all, you'll be expected to send the money in advance to someone you've likely never met — consider using a "vacation escrow" service. RedWeek.com, for example, uses the escrow services of First American Title Insurance. You'll pay an extra $100.

Timeshare Company Sunterra Says Nasdaq To Delist Stock

Timeshare vacation company Sunterra Corp. on Thursday said a Nasdaq panel denied its request for continued listing on the stock market after it failed to file its quarterly report in time.

Sunterra also said the U.S. Securities and Exchange Commission was conducting an informal inquiry with respect to recent events regarding the company.

The timeshare company's stock would be delisted effective July 7, it said in a statement.

Hilton Subsidiary Plans Manhattan Timeshare Site

HotelBusiness.com, quoting New York press reports, said the project would supplement fractional ownership units located in the top floors of the Hilton New York in 2003.

The site is reportedly on West 57th Street, near Carnegie Hall.

No date for the start of construction nor a project cost were provided.

Orlando-based Hilton Grand Vacations Co. develops, markets and operates 27 vacation timeshare resorts in select vacation destinations. The company also manages and operates two club membership programs: Hilton Grand Vacations Club and The Hilton Club, providing exclusive exchange, leisure travel and reservation services for more than 85,000 timeshare club members.

Hilton Hotels (NYSE: HLT) maintains a corporate headquarters in Memphis managing three brands: Embassy Suites, Homewood Suites and Hampton Inn. The Memphis operation employs about 1,000 people and is also the base for the company's information technology division.

No Escape: Many Americans Each Year Fail To Use Allotted Timeshare Days

Scott Camp has enough leftover time to play hooky for more than a month, and his two weeks of paid vacation are only partly used.

The 35-year-old Tucson delivery driver is among the one-third of workers who do not use all of their timeshare days, according to an online survey, mostly because taking a break seems like a hassle. Nationwide, workers are expected to abandon an average of four vacation days per person this year, one more day than last year, according to the Harris Interactive survey commissioned annually by Fast Track, an online travel agency.

Camp will get even more time next year for his 10th anniversary with his company, Prudential Overall Supply. So far, he's not sure how to use up all that time. But this year, he's taking his kids to some theme parks and taking his fiancee to their timeshare, he said.

"I don't always use my block," he said. The time he does take "is enough time to recoup, and it's more important for me to be here and take care of the customers. Fill-ins don't get it done -- let's put it that way."

Scheduling problems and finding a reliable replacement at work are common reasons for skipping vacation.

"If your excuse is you have to stay because you're indispensable, you need to know it's OK to take some time off," said Loretta Love Huff, an executive coach and consultant at Emerald Harvest Consulting in Phoenix.

About 19 percent of workers have canceled or postponed vacation plans because of work, even though 36 percent said they feel better about their job and more productive upon returning from vacation, according to the survey.

After getting wrapped up in day-to-day tasks, it can help to take a break, Huff said.

"People need time to rejuvenate and stand up and pull their heads out of the sand," she said.

Another common reason for skipping out on your timeshare is timing, she said. Few companies have extra people, so anything unusual that comes up can make it a bad time to leave work. You never know when it will be a good time to take vacation, so just take it, Huff said.

"Life is for living, not just making a living," said Mert Ingvoldstad, owner and career counselor at M.I. Career Counseling Associates in Tucson. "Time to just be, without having a supercharged agenda, is really important."

Overworked people are more stressed and less healthy, she said.

"The words 'grim determination' and 'burnout' come to mind," Ingvoldstad said.

"To some people it's like a badge of honor, but to me, it's like insanity. It just seems so out of balance. If you think about a top, it can keep spinning until it gets out of balance and then it topples."

If just asking for time off is the hard part, try stating what you want, maybe using a phrase like "It's really important to me," or "This is something I need to do," Ingvoldstad said. And expect that your manager will agree with you, so you don't have a negative or apologetic tone, she added.