In terms of the U.S. economy in 2012, the timeshare industry contributed approximately how much total revenue.
Timeshare owners have the right to enjoy the common elements of the resort whenever they choose.
False (Legally speaking, the owner only has the right when they are occupying the week they own.)
-February 14 (Valentine's Day)
-May 28 (Memorial Day)
-July 4 (Independence Day)
-December 25 (Christmas Day)
-December 31 (New Year's Eve)
Which of the following is most descriptive of a fixed, fixed ownership?
Unit 101, week 7 (Fixed/fixed ownership refers to a specific week within a specific unit.)
In which decade did timeshare flourish in the U.S. as a result of distressed condominium developments?
In which decade did timeshare see increased credibility due to the entrance of major lodging brands?
In which case does the timeshare owner relinquish use rights of their allocated time..
rent, trade, exchange
Which of the following timeshare products has the longest term of ownership?
Deeded (Fixed/fixed ownership refers to a specific week within a specific unit.)
For a timeshare exchange company, the value of a week is determined by..
Resort quality, Unit size, season, resort amenities, supply
Generally speaking which owner will have the greatest exchange value for their week?
Aruba 2bdrm/2bath Platinum week owner at a resort with above average guest satisfaction scores
In the timeshare industry, the term "exchange":
describes the process whereby a timeshare owner relinquishes the use of what he owns for a period of time in return for the use of accommodations owned by someone else at another time and/or location.
An exchange company affiliation is desirable for the developer because:
this feature enhances the value of their resort product by adding flexibility and vacation alternatives
Once a timeshare owner joins an exchange company, they only have to pay the exchange company dues and fees in order to make an exchange.
False (Remember the owner must relinquish their use of their week in exchange, so the fees and dues on the owned week (i.e., maint fee) must also be current.)
Exchanging to a resort that is not under the same developer is referred to as an internal exchange.
An owner of a 2bdrm floating unit fixed week has no interest in exchanging because the value is not there...
False (Not true. If they own a fixed holiday week, there is a lot of value there.)
What are the typical steps to make an exchange?
Pay all fees/dues related to the owned week. Pay all fees/dues related to the exchange company. Deposit the usage rights with the exchange company. Request the exchange.
The major exchange companies report a very high rate of confirmations in the range of 80 - 90%.
In timeshare sales the conversion rate refers to...
The percentage of prospects who end up purchasing
In the timeshare sales process, whose responsibility is it to get the buyers in front of the sales executives?
The marketing department's
What are the typical steps to make an exchange?
Pay all fees/dues related to the owned week. Pay all fees/dues related to the exchange company. Reserve a week with the developer. Deposit the usage with the exchange company. Request the exchange.
According to guest speaker from Interval International, Jay Wilson, the average household income of their member base is higher than the industry average.
The 2000s brought the variation of products (example: point based system) in the timeshare industry.
What is the most expensive form of lead generation? Base your answer on the lead generation activity we did in class.
In timeshare, the primary purpose of the incentive is to
Entice prospective guests to come to the presentation
Which is part of the Sales Service Cycle
a. Understanding the vision
b. Industry Knowledge
c. Product Mastery
What is the order of the sales process?
Greeting/Registration, pre-tour, establish rapport, tour, make offer, contract, after sales servicing
While managing the sales cycle a sales director must first instill in their sales representatives:
An understanding of the vision
Exit programs offers the non-buyer an opportunity to experience the timeshare at a reduced price:
The only way to measure the success of in a timeshare development is by numbers such as VPG, cost per tour, number of daily tours.
According to our guest speaker (Mary) the main reason people buy timeshare is because of the:
According to the book, which one are negotiating tools to close the sale:
a. Price drop
b. Financing options
c. Discount for multiple week purchases
Federal Trade Commission (FTC)
--In charge of combating unfair and deceptive practices
--Oversees the standards for marketing practices
Securities Exchange Commission (SEC)
--Vacation ownership is not registered as a security
--Oversees that timeshare is not marketed as an investment
Internal Revenue Service (IRS)
--Oversees that tax considerations for the developer
--Deeded sales are favorable for the developer for tax reasons
--It allows them to report the gain and pay the associated tax over the period during which the payments are received
4 P's of Marketing
Additional Ps for Service
Timeshare Industry Legs
-Operations & management
-Development & Sales
-Mortgage & Bank
More expensive than home loan
Average 10 years
Closing and title
Exchange company disclaimer
--Promise to pay
--Creates a lien against property until paid
Truth-in-Lending Disclosure Statement
--Financing cost information
--Provides info on buying, financing & settlement
RESPA Disclosure Statement — Good Faith Estimate
--Estimate of service charges
HUD-1 Settlement Statement
--Outlines actual costs & fees
Transfer of servicing disclosure statement
Public offering statement (POS)
--Details about project, developer's obligation
----Association articles of Inc and Assc by laws
--Title conveyance (seller to buyer)
--Protection for buyer
Third party servicing
Instant payment methods
Deed in lieu of foreclosure
Equal Credit Opportunity Act
No discrimination because of age, sex, marital status, religion, color, national origin or receipt of public assistance.
Truth in lending Act
Lender must disclose cost information (finance charges, APR) before consumer enters into credit transaction