Travel & Leisure Group, a leading European Timeshare Resale Brokerage, brought the world of Private Timeshare Sales to the Times Destinations Holiday & Travel Show, Earls Court, London last week with overwhelming success.

It was a great opportunity for customers, new and old, to meet the experienced team from Travel & Leisure. Customers took the chance to talk about all aspects of the timeshare industry and were ‘very pleased to see a reputable resale company taking the opportunity to meet their clients face to face’. This positive approach gave the team a wonderful opportunity to explain how Travel & Leisure act as an independent broker between private individuals, assisting them to buy, sell or rent a timeshare. It was also a perfect location to educate new buyers about the timeshare industry, reinforcing customer confidence in the product.

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Interval International, a prominent worldwide provider of vacation services and an operating business of Interval Leisure Group (Nasdaq: IILG), is again proud to be a Platinum sponsor of the Resort Development Organisation (RDO) Conference. The event will be held from the 26th to 28th September at the Don Carlos Resort and Spa in Marbella, Spain.

“Last year’s RDO Conference was a tremendous success and it is our pleasure to support this year’s event,” said Darren Ettridge, Interval’s vice president of resort sales and service for Europe, Middle East, and Africa and its representative on the RDO Board. “We look forward to playing our usual full part in the organisation of the conference and also in taking an active role during the event.”

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RDO member resorts work around the clock to help holidaymakers caught in “ash” crisis

With a massive backlog of flights now facing holidaymakers trying to get home, despite the opening of European airports, timeshare resorts which are members of the Resort Development Organisation (RDO) have been working tirelessly to provide emergency accommodation for stranded guests, helping them get home whenever possible now that the flight ban is officially over.

Families with children have found themselves taking an unexpected extended holiday in sun-soaked holiday destinations such as the Costa del Sol, Cyprus, The Canary Islands and the Algarve, right before the start of the new school term.

A number of resorts have stepped in to provide last minute arrangements and accommodation for families unable to get home, with resort teams working flat out to ensure owners either have somewhere to stay if no immediate flights are available, or help with last minute travel arrangements.

Some resorts have let guests stay on free of charge.  Seasons Holidays, Gala Resorts in Norway, Paradise Kings Club in Cyprus, Club La Costa Resorts & Hotels, Resort Properties and Pearly Grey have been accommodating guests at no extra charge, while Petchey Leisure Group, Pestana Resorts, Anfi Group and Hilton Grand Vacation Club in Portugal are providing discounted stays; some are offering significantly discounted menus in their restaurants.

Chairman of RDO Richard McIntosh, says, “Our member resorts have shown tremendous goodwill by helping out during this extraordinary crisis, not only ensuring timeshare owners are well looked after, but also doing all they can to get them home by coach or ferry services where at all possible.”

Many resorts’ travel agency divisions have been working without a break on re-booking and re-routing travel plans, doing all they can to help guests get home. Others are providing free internet access so guests can stay in touch with family back home and check the latest airline news.

At the time of writing, the flight ban has been lifted over the UK, but the situation could change if new ash cloud blows in from Iceland.

For up to date information on flights, visit http://www.flightstats.com/go/Home/home.do

About RDO
RDO (Resort Development Organisation) is the trade body dedicated to excellence and fair trading in the European vacation ownership industry, whilst promoting and fostering industry growth. As such, it serves its members through public relations, legislative lobbying, research and member and consumer relations management.

Formerly Organisation for Timeshare in Europe AISBL, RDO is an international non profit making association registered in Brussels with company number 0457.984.213.  Its registered office is at Oak House, Cours St Michel 100/3, 1040 Brussels, Belgium. Web: www.rdo.org, email: info@rdo.org

Television Programming Helps Worldwide Timeshare Hypermarket Lead the Resale Market

Worldwide Timeshare Hypermarket, Europe’s leading timeshare resale company, is blazing a trail for televising programs about timeshare. First, the company partnered with TATOC, the Timeshare Association, to broadcast a 30-minute informational program that aired on the Travel Channel. Now, Worldwide  Timeshare Hypermarket is creating 60-minute programs that focus on the offerings from particular timeshare resort developers. First up: Macdonald Resorts.

This past November, Worldwide Timeshare Hypermarket joined together with TATOC, the Timeshare Association, to launch their first television broadcast, “Timeshare – History in the Making” – a 30-minute program explaining all the benefits associated with owning a timeshare – which has aired multiple times on both the Travel Deals Direct channel (Sky 647) and the Travel Channel. The program also is available to view on demand at www.traveldealsdirect.com.

“Timeshare – History in the Making” is split into several sections covering all aspects of timesharing and is interspersed with footage of typical timeshare resorts located on the Costa del Sol (Club La Costa, Marina del Sol), Cyprus (Paradise Kings Club) and Scotland (Macdonald Hotels & Resorts, Forest Hills).

Here’s an excerpt from the segment on Macdonald Forest Hills: “Forest Hills lochside resort is beautifully set in landscaped gardens and woodland on the shores of Loch Ard, ideal for exploring the magnificent Trossachs, Scotland’s first national park.” While any brochure or website can relay flowery prose and descriptive words, there is no substitute for the complementary video footage of Forest Hills and environs that accompanies them.

The broadcast also explains how exchange programs and memberships work, detailing the concepts of banking, trading and even bonus weeks and cruise exchange.

The presentation is the result of a combined effort between Philip Watson, managing director of Worldwide Timeshare Hypermarket and Harry Taylor, the CEO for TATOC. Throughout the half-hour, Taylor offers his insight on things such as management fees and the beauty of being able to exchange worldwide. He also shares his experiences as a timeshare owner. What’s more, Taylor explains the basic premise of timeshare so that even someone without any timesharing experience can understand.  The idea behind the show is to educate people about timesharing in the comfort of their own homes.

This special program was the first of what is to be many, says Watson. And now, he says, Worldwide Timeshare Hypermarket is introducing longer programming, announced in December 2009 at The FORUM event in London, with Macdonald Hotels & Resorts as the first client to participate. Rather than focus on just one Macdonald property, the show will be much broader. “We will create either two half-hour programs or an hour-long program that will promote Macdonald in total,” explains Watson, “so you would have all their hotels, their resorts and their rental program – and maybe even a fly-buy program in there – so that you’re concentrating on one group of resorts” and all that they have to offer.

Of course, by the time you read this, Worldwide Timeshare Hypermarket may have already finalized additional deals to create further 60-minute television specials. “We’re also discussing the possibility of creating such an hour-long program with Club La Costa and one or two other major groups,” Watson says, noting that another program launch is likely for March.

Key to all this is Worldwide Timeshare Hypermarket’s relationship with television outlets; while any decent marketing agency could create a video, Worldwide Timeshare Hypermarket’s agreement with the appropriate channels and networks turns a video into an actual television program. “We’ve increased the sponsorship contract with the Travel Channel for a further year,” says Watson. “We’re in discussions with Sky Travel at the moment to do exactly the same thing, but I can’t say any more than that at present.”

The Worldwide Timeshare Hypermarket Difference
Worldwide Timeshare Hypermarket is proud to be one of the market leaders in secondary timeshare resales, providing to both buyers and sellers a very safe and professional service. With Worldwide Timeshare Hypermarket’s parent company being a developer, they have found from experience that among some of the main reasons why people do not buy timeshare direct from the developer is either the product is too highly priced for them, or they do not like the sales tactics/environment used.

Therefore when it came to resales, Worldwide Timeshare Hypermarket take a step back and allow both the buyer and the seller to approach them, which leaves buyers and sellers feeling relaxed and in control. Under no circumstances does Worldwide Timeshare Hypermarket cold call, so the client never feels under pressure from the staff at any time.

Instead, the company advertises extensively on international and national television and in the press, which means the client first has to call if they wish to either purchase or sell a timeshare. Worldwide Timeshare Hypermarket is then able to offer a full service for clients from beginning to end. The company advertises sellers’ weeks in the press as well as on their website; once a buyer is found, Worldwide Timeshare Hypermarket completes the transfer on the seller’s behalf, taking all the hassle out of having to sell privately.

For the purchaser, Worldwide Timeshare Hypermarket determines which product would suit their requirements and budget – and again, the company conducts a full transfer service where all the client needs to do is sit back, relax and when they become the legal owner enjoy their timeshare along with the family.

All monies are held in trust by Resort Fiduciary Services until the transfer is complete so the client knows they can relax happy with the knowledge that their money is safe until they become seen as the legal owner. Worldwide Timeshare Hypermarket does not take deposits and allows a full 14-day cooling off period; should the potential client be unable to afford the cost up front, Worldwide Timeshare Hypermarket is able to assist them with membership to WorldWide Plus, which is a club card allowing them to purchase with 6 months interest free and nothing to pay for 6 months.

Afterwards they can use this card on a similar basis to purchase further Worldwide Timeshare Hypermarket products if they wish. This club card is supplied by H.M.C Funding and Barclay Partner Finance – Worldwide Timeshare Hypermarket was the first European timeshare company to be offered this product.

Being a member of RDO (Resort Development Organization, which formerly was OTE/Organisation for Timeshare in Europe) is integral to Worldwide Timeshare Hypermarket’s beliefs and methods of working. RDO has provided a solid framework upon which Worldwide Timeshare Hypermarket has built a  professional and efficient procedure in assisting their customers, be they buyers or sellers, and this provides those customers with the confidence that they deserve when they are dealing with a reputable and trustworthy organization.

Macdonald Hotels & Resorts is the first shared-ownership developer to take advantage of Worldwide Timeshare Hypermarket's 60-minute TV programming offer

RDO not only ensures that its member companies are operating correctly, but it also works tirelessly to promote the image of timeshare throughout Europe. In this regard Worldwide Timeshare Hypermarket shares a common purpose and they are extremely proud of their involvement with RDO. They are also proud to add to the company’s close association with TATOC, whom they support and assist in every way that they can.

Future Collaborations
“I think it is absolutely vital that resale companies and developers have a good working relationship and provide a good level of service for their customers, both old and new,” Watson says. “This is one of the key reasons why I am always looking at ways to improve the developer’s understanding of who we are and how we operate.” In addition to the television programming, Watson says that another result of this has been Worldwide Timeshare Hypermarket’s “Indulgence” trial membership package, which allows the company to tap into the large market of new-to-timeshare customers while providing good quality leads to their partner developers.

“Other than this mutually beneficial relationship, it is key that we work closely with both the developers and trustees when we are processing a transfer of ownership and the flow of information between all parties involved and a speedy and efficient process serves to enhance our reputation and that of the resort,” notes Watson.

“We also offer wholesale purchases for developers and marketers; in some instances certain resorts have the ability, through using our stock, to sell additional exchange member resort week(s) to exchange members when they exchange onto their resorts, which works very well,” he says. “We can also come to arrangements with developer resorts that take in exchange weeks through their sales teams whereby we can take these weeks off their hands.”

For more information about creating a television program about your resort(s) or otherwise working with Worldwide Timeshare Hypermarket, call +44 870 443 1466 or visit www.timeshare-hypermarket.com.

About Worldwide Timeshare Hypermarket
Worldwide Timeshare Hypermarket is a highly professional company with an excellent reputation for customer care. We have been trading in timeshare resales for more than 12 years and currently have the largest database of timeshare weeks available, plus a long waiting list of buyers who are eager for specific weeks when they become available.

Our European Headquarters are located in Bournemouth, Dorset in the United Kingdom, so we conduct our business strictly in line with the Timeshare Act of 1992. We specialize in matching buyers to sellers and handle over 1000 such transactions each and every week, so when you are dealing with us, you can rest assured that you are dealing with the best in the business.

When buying through Worldwide Timeshare Hypermarket, you can be sure that you are in safe hands, with full protection provided. Your monies are deposited in an escrow account, administered by Resort Fiduciary Services Ltd. This means that no funds will be released until title has been transferred to the purchaser’s name, ensuring both parties to the agreement of sale are fully protected at all times.

We are full members of Resort Development Organisation (RDO), the governing body for timeshare in Europe. This association allows us to offer a safe and professional service to all our clients, ensuring that all legal obligations are adhered to every step of the way.

We are also Platinum Affiliates with TATOC the Timeshare Owners Association that is run on behalf of Timeshare owners by Timeshare owners.

As we all know, the past year or two have been some of the most challenging our industry has seen in a very long time. And while not every company around the globe suffered from the credit crisis, scores did, and the ripple effect meant that many suppliers and other industry-related companies paid the price as well.
By Matt McDaniel, editor

Today, though, the consensus is that the shared-ownership industry is stabilizing and regaining its footing. And, along the lines of “whatever doesn’t kill you makes you stronger,” the still-standing operators are lean and hungry to regain some semblance of their previous sales revenues.

In this edition, we’ve asked several influential EMEAA market leaders to talk about the state of the industry, its biggest challenges going forward, the availability of finance and the impact on exchange. Each  shared-ownership industry leader was individually asked to respond to the same five questions. The participants, in alphabetical order, are Mark Attwood, group sales and marketing director, Karma Royal Group; Paul Gardner Bougaard, chief executive, Resort Development Organisation (RDO); Ramy Filo, president of the Australian Timeshare and Holiday Ownership Council (ATHOC) and CEO and managing director of the Classic Group; Peter Hutchinson, Group Chairman, Citadel Trustees; Shaun Lamont, managing director, Club Leisure Group; Bryan Lunt, chairman, Absolute Group of Companies; Leslie McCann, group marketing director, Seasons Holidays; Richard McIntosh, chairman of the Resort Development Organisation (RDO) and managing director, Hilton Grand Vacations; and Nick Turner, vice president & head of new business development, The Registry Collection.

From your perspective, what is the current state of the shared-ownership industry?

Mark Attwood: I can’t really comment about outside Asia. In Asia, timeshare activity is very small. There is not much developer activity. The industry surged in the last decade but there are few reputable developers left.

Paul Gardner Bougaard, chief executive, Resort Development Organisation (RDO)

Paul Gardner Bougaard: From the RDO perspective, I think the industry in Europe is in remarkably good shape, bearing in mind that the world’s economies have been through the worst economic crisis since the 1930s. Whilst we’re not yet out of this and many countries in Europe have yet to announce measures to deal with the debt incurred in supporting their economies, I think it’s apparent that consumers continue to value the certainty of their shared ownership and see this as an important element of their lifestyle. I am therefore confident that the timeshare product continues to have a strong future even though we still have a lot of work to do to educate the media and public in Europe. I think the fractional side of the industry is still very much in its infancy in Europe and there is a huge task ahead in educating the public and media as to the attractions and advantages of the product. The fractional industry desperately needs to organize itself under a trade association in order to speak with a unified voice and get those messages out. We have set FSOTA up for that purpose and will work hard this year to recruit new members to support this education program.

Ramy Filo: The past 12 months have been challenging for companies in Australia. Some companies were quick to react to the situation and resulted in maintaining the momentum or increasing volumes. Other companies struggled in the current market conditions. All companies looked at their own backyard and restructured and focused on core businesses while maximizing revenue from their current member base.

Peter Hutchinson: The propensity of the public to commit to high ticket value leisure products in a recession is heavily reduced. However, in these days of tiny returns on funds invested with banks, some resorts can benefit from a switch of emphasis to investment returns. This cannot work in the conventional timeshare model of 50%+ sales and marketing costs, but it can work with a lower markup fractional product. There are other criteria which need to be fulfilled, such as a long high season, good rental income, etc. Also, there is the need to guard against the product being classified as a Collective Investment Scheme, which can severely restrict the sales potential. However, addressing these issues will potentially open the door to a significant alternative sales source.

Shaun Lamont: The Southern African Vacation ownership industry continues to flourish in both the fractional and points-based sales. We experienced market penetration and growth in 2008 of 27% and 6% in 2009, which I believe is phenomenal considering the current economy.

Bryan Lunt: In Asia we can only see the growth we are experiencing and the influx of quality staff due to recent downturns in the European and American markets and the closure/downsizing in Australia of several [sales lines] of Accor and Wyndham. I have seen and heard about a huge slowdown in the U.S. fractional markets as well as downsizing of many timesharing companies due to restricted cash flow.

Leslie McCann, group marketing director, Seasons Holidays

Leslie McCann: At industry events there’s a sense of gloom and despondency at the moment, which could turn out to be a selffulfilling prophecy. Really, we at Seasons feel very positive about the future – the  industry’s usually very good at adapting and evolving. There’s the uncertainty regarding consumer finance; as a result of the credit crunch having consumers who want the product but are rejected at the finance stage is a serious issue we haven’t had to face before. So the industry must evolve internal finance packages to support the very valuable external unsecured consumer loans that are available.

Richard McIntosh: Everything goes in cycles, and the shared ownership industry is no different. The ability to purchase for many may be slightly reduced at present, but this is only temporary, and as sure as the sun rises, so will demand return. Shared ownership is about holidays and leisure time, and in future we will see an even greater demand for our products as leisure time and life expectancies continue to grow.

Nick Turner: From my personal experience, in the last six months, lifestyle based products continue to be marketed with the emphasis on the best value and the best quality. People are still buying and are looking for great units with equally great specs, and want to know what the annual cost is going to be.

What are the biggest challenges facing the industry now and going forward?

Attwood: In Asia the biggest challenge is to create consumer desire for the product. In India it is to stop “pack companies” from wreaking havoc as they did in Europe.

Bougaard: I think timeshare faces two sets of challenges. Firstly the issues over resales and maintenance fees remain areas where the industry has to do more work. There are no easy answers to the resale issues but RDO will continue to work with its members to educate the public on this and to urge sellers to use resale companies who are RDO members. On maintenance fees I think we have failed to get the message across on
the influences at play on maintenance fees in general and although RDO’s 2009 industry survey demonstrated that fees had not risen disproportionately, we will be getting more information out on this during the year in our social network media program. The second set of challenges relate to the unscrupulous elements at the fringes of the industry seeking to take advantage of those consumers struggling in these current economic difficulties. The expansion of the Internet and the currently relatively low cost of TV advertising, particularly in the UK has led to a huge rise in the numbers of these organizations and RDO needs to and will defend consumers and its members against these people.

As to fractionals, the biggest challenge they face is getting the word out about the product in Europe. I am aware that individually, RCI and II are working on this, but as RDO speaks for the timeshare industry, so FSOTA should speak for the fractional industry and provide a focus for the media and a source of education and information for the public. That can only happen if developers and others in the industry join FSOTA and thereby provide it with the funds to pursue these programs. If they don’t then I am worried the industry will remain fragmented and not gain a foothold in Europe.

Ramy Filo, president of the Australian Timeshare and Holiday Ownership Council (ATHOC) and CEO and managing director of the Classic Group

Filo: The industry in Australia faces similar challenges that are faced in other markets such as regulation and compliance, cost of sales and marketing, and consumer finance. Moving forward there are similar challenges with the addition of the competition from other lifestyle products; products need to change to meet consumer expectations and competition from other lifestyle products.

Hutchinson: High annual costs of usage, in the form of maintenance and exchange costs. The winners will be those who address these areas and include them, as far as possible, in the capital sum. We need to recognize that, in times of recession, people who are still in employment are actually better off than previously! They have the capital to buy the product, but not the confidence to commit to long term annual expenditure. Addressing and reducing or capping these annual costs is crucial to ongoing success.

Lamont: The age of the traditional timeshare owner is of concern. Generally these are owners that purchased their traditional timeshare 20 to 25 years ago. Their needs have changed and they are well into their retirement. Continued affordability by this income bracket and the knock on effect maintaining resort standards needs to be carefully monitored.

Lunt: Industry challenges are the need to keep products real. I guess pack companies don’t help doing justice to the industry when product is smoke screened and not real compared to this companies who have invested real $$$$ into projects.

McCann: Generally the timeshare industry itself has got an undeserved poor reputation mainly caused by the activities of non-asset-based, unregulated holiday clubs. Thankfully there’s new legislation coming in, which puts us all on the same level playing field. But the attacks on the television and in the papers encouraging dissatisfaction among timeshare owners are sometimes creating the impression in owners’ minds that there must be something wrong with the product. But generally speaking, decades into the purchase, most timeshare owners in Britain and throughout Europe are satisfied with their purchase. So a challenge to the industry is how we’re going to react to this unfair attack on us by certain bogus resale companies and compensation groups.

Richard McIntosh, chairman of the Resort Development Organisation (RDO) and managing director, Hilton Grand Vacations

McIntosh: We must remember that every year we accommodate millions of shared ownership owners at our resorts, members who are enjoying today the decision they made to buy yesterday. We must continue to focus on looking after these guests by enhancing their holiday and leisure experiences, as their advocacy is critical to our future.

Turner: If I base this answer on fractional, in the UK now, there is reasonable awareness from middle-high income families. The challenge is to engage with the consumer/buying public especially in Europe. For the UK buyers, we should see a steady rise in fractional products post General Election.

Are we set to return to normal, or to a new normal?

Attwood: There has been no normal in Asia!

Bougaard: I think we are facing a period of economic difficulty and also environmental challenges so it’s probably a new normal. As a result consumers will be looking for value for money and products that meet their own perception of the environmental challenges ahead. I am confident our members can and will meet that challenge.

Filo: We are set to return to normal, but, there is an opportunity to forge niche opportunities as a result of what we all have learnt over the last 12 months.

Hutchinson: As and when consumer confidence returns we will see a return to previous sales performances. When will that be? In my opinion, it will be gradual over at least 5 years, by which time, I am sure the product will have evolved further to reflect the joint issues of high maintenance and exchange costs.

Lamont: I don’t believe their will ever be a “normal” again, but rather greater opportunities to introduce niche market products into the industry rather than the traditional approach of the past.

Bryan Lunt, chairman, Absolute Group of Companies

Lunt: What is normal? Business always has cycles and on downturns the tough get tougher and weaker ones crumble, whereas in good markets everyone finds it easy and then we have too much competition… Of course now everyone seems to be much more careful how they spend their hard-earnt money and this gives in general the shared-ownership industry even more sales opportunities.

McCann: A new normal. I think overall for the industry, 2010 is not going to be an easy one, especially for people in start-up situations and single-site resorts. I think it will be a steady one for the established hotel brands and strong independent brands – I suspect they will manage to maintain reasonable returns – but for new start-ups it’s challenging to get funding, development finance from banks and to sell consumers a pre-construction real estate product right now when’s there’s some uncertainty about property values. People are less likely to take a risk. I think there are a lot of challenges to see new growth in traditional timeshare – I think the new normal will be better targeting. We need to target more accurately what our market is, spend less on reaching that target market, and make sure we’ve got a product that’s appropriate for that market.

McIntosh: In my 25 years in this business, I have never known “normal” – all I have known is change. Change usually delivers things for the better, for our guests and in turn for our businesses, but only if you focus on the guest. For me it’s positive and all about change.

Turner: It is the beginning of a new normal. The days are gone when people threw money into buying second homes, etc. The new normal is all about the value-conscious lifestyle buyer. The emphasis is on more value, less cost and tailor making the second-home ownership.

How would you describe the current state of the availability of finance – for consumers and developers – and how do you see things going through the rest of 2010?

Bougaard: In 2009 the industry in Europe saw a withdrawal from the market of one consumer finance provider, but during that year there has also been at least one new entrant to the market and a continuance of lending by another. In general I believe lenders see the timeshare product as a good lending line with low default rates and high consumer satisfaction. I do not therefore have great concerns over the availability of consumer finance in Europe for UK buyers, who are still the biggest buyers of timeshare in the EU, but it would be good to see more finance available for other EU nationalities.

Filo: Australia was not hit as hard by GFC on finance in our industry directly on consumer finance; however, banks have tightened up their conditions. The low interest rates provided by traditional banking institutions have opened up new sources of funding from investors wanting a higher return.

Peter Hutchinson, group chairman, Citadel Trustees

Hutchinson: The availability of finance for developers and non UK + Irish consumers in Europe has always been very limited and hence the recession has brought little change! For UK + Irish consumers, however, there is now only one major credit provider in the industry for this key market and the fallout from their withdrawal would be cataclysmic! The only way developers can cater for this potential hit to sales is to prepare to provide in-house consumer finance: This entails preparing the necessary paperwork (a not-inconsiderable task), which will need to cater for the loans being transferable to a new lender without further reference to the buyer. The developer will also need to look at the cashflow implications and prepare revised release rates of sales commission and incentives to buyers and salesmen alike to achieve as many cash deals as possible. In the long run, those that can cope with this setback will benefit substantially from the income from high interest rates.

Lamont: Southern Africa is in a “fortunate” situation – we experienced what the global market experienced in 2008/2009, 15 years ago. This forced us to change the rules of the game and slowly introduce “self funding” to sustain growth. The first few years were extremely challenging but we are reaping the rewards thereof now, 12 years down the line where the management of “in house” funding and a mature debtors book alleviate the need to outsource finance.

Lunt: There is no finance available for us so we went out and created our own Absolute Finance Worldwide and we have been forced to finance our own products to help sales reach this year’s targets. The banks are not lending – as I said everyone is more careful these days so to offer finance, customers are seeing this as a great opportunity. We’d all love to drive a new Ferrari, Bentley or Rolls Royce – it’s just a matter of how much will it cost me per month … if it’s affordable we’d do it! That’s what we have created with Absolute
World products.

McCann: I think the outlook is pretty gloomy for 2010. All of us who are fortunate enough to have an unsecured consumer finance facility should do our absolute utmost to protect that facility by making sure that the clients are sold in a professional, responsible way to ensure that the institutions that are currently in the market don’t suddenly get cold feet. It only takes one developer to sell in an irresponsible way for us to lose a major institution and that would have a devastating consequence for the whole industry because, in the British market at least, we’re in the hands of one main lender. The established players with a good track record will continue to be able to draw down loan facilities. If people are not able to demonstrate real success in our industry in the last 12 months, it’s going to be harder to borrow money to build new. Certainly as a start-up it will be very difficult. The irony is this is a time of opportunity with real estate being keenly priced – now is the time for developers to get in. But unfortunately, it’s not just about the acquisition costs.

Nick Turner, vice president & head of new business development, The Registry Collection

Turner: Regarding consumer finance: The current state of finance availability is frustrating and slow. There are only a small amount of financial institutions offering finance at the moment. We need to see a broader adoption of fractional products by the high street banks in the next 12 months and interest rates from some lenders coming down. Regarding developer finance: There have been a number of large institutions sitting on the fence for the past 18 months watching asset values drop. Mixed-use developments such as hotels with golf, spa facilities, etc. seem to have more comfort for the institutional investors.

Are people exchanging more or less? How has exchange demand been affected?

Mark Attwood, group sales and marketing director, Karma Royal Group

Attwood: In India we find members are exchanging abroad more than before.

Filo: There is no doubt the GFC has a dramatic influence on every part of the industry, including the exchange patterns of the timeshare owners. Long-haul exchanges literally disappeared faster then what the international airlines were able to reduce the number of their international flights. The demand for domestic and short-haul exchange space increased to compensate, and the number of owners deciding to go back and use their hone resort during 2008 and early 2009 was also very evident from all reports. Having said that, the timeshare community is fairly resilient, or at least that’s the experience certainly in Australia and New Zealand. Having paid their annual levies, the majority of owners went ahead and made use of their entitlements either using within their home resort or club, or exchanging to other local destinations. By mid-2009, the exchange demand for the longer-haul destinations had gone back to pre-GFC times and the start of 2010 has been nothing but highly surprising at the number of owners looking for exchange holidays again.

Shaun Lamont, managing director, Club Leisure Group

Lamont: Based on our statistics, exchanges have continued to increase over the last few years. I believe this is as a result of the value of and advantages of owning a timeshare product for vacations rather than looking at more expensive alternatives like hotel accommodation or owning a private condo. The consumer has been forced to watch every cent as a result of the economy, and is realizing the value and competitive pricing of their timeshare acquisition versus the more costly alternatives.

Lunt: Definitely – people have committed to the shared ownership industry, whether via fractional ownership or vacation club memberships, and these owners will use their time wisely looking to get the most out of what they have bought. Exchange demand has surprisingly risen – albeit a small amount during the last year or so.

McCann: Slightly less. There was certainly a higher demand for our UK sites last year. I think this is a reflection of owners, particularly last year, frightened off by the strong euro. I think there’ll be more of that this year – families will tend to stay in country or go to drive to European destinations if they can. For us, the number of exchange guests in the UK last year was lower than normal because there was more space taken up by members wanting to holiday within the UK. There was a slight decrease in exchange activity and a slight
increase in members using their own resorts within the British Isles.

Turner: All exchange platforms are robust models. People are trying to utilize all their second-home time instead of wasting it, as every penny counts. They want to get the most out of their exchange. Exchanges are continuing – especially in The Registry Collection – more members mean more exchanges.

A Final Word
Overall, it seems that the shared-ownership industry is on the path to recovery. But it is important to learn the lessons from the events that brought us to our knees if we are to minimize the effects of the next cycle. And the next cycle will come – it may be 25 years from now or it may be much sooner, but it will come.

As part on an ongoing campaign to help stamp out fraudulent practices targeted at timeshare owners, RDO (Resort Development Organisation), the trade body for timeshare and fractional ownership, is calling for consumers to come forward with their complaints.

Of particular interest are complaints from people who have been invited to a presentation either to discuss ways in which to dispose of their timeshare or to join a class action scheme, but are then persuaded to sign up to membership of a holiday club of which they had no former knowledge. A deposit is frequently taken and if no cooling off period is provided, which is frequently the case, consumers may lose significant sums of money.

The evidence that RDO builds up through this campaign will be presented to the enforcement authorities in both the UK and Spain to enable them to take decisive and hard-hitting action, putting a stop to the distress caused to people who have been misled by this type of activity.

Over the course of the last few years the number of consumers coming to RDO with allegations of fraud has steadily increased and its enforcement programme, which is headed up by a former Spanish police inspector, is more important than ever, with significant sums of money being invested into a pan-European programme.

Richard McIntosh, the Organisation’s chairman, adds, “Members of the public should always check with RDO if they are approached by a company they are unsure of and should walk away if they are asked to sign a contact which does not give them the right to withdraw.”

RDO (Resort Development Organisation) is the trade body dedicated to excellence and fair trading in the European vacation ownership industry, whilst promoting and fostering industry growth. As such, it serves its members through public relations, legislative lobbying, research and member and consumer relations management.

Formerly Organisation for Timeshare in Europe AISBL, RDO is an international non profit making association registered in Brussels with company number 0457.984.213.  Its registered office is at Oak House, Cours St Michel 100/3, 1040 Brussels, Belgium. Web: www.rdo.org, email: info@rdo.org

Attendees from across Europe and around the world converge in London to attend the first FORUM Conference, which served as 2009’s main event for the European shared-ownership industry.
By Matt McDaniel, editor

2009 was bad enough. And in a year without a conference held by the Resort Development Organisation (RDO; formerly known as the Organisation for Timeshare in Europe or OTE), at least some shared-ownership professionals were neither pleased with how 2009 had gone so far nor entirely optimistic about 2010.

“We were all disappointed we were not going to have an event this year, but then we had this event,” said RCI Vice President of Development Dimitris Manikis. “Everybody was a bit negative in the beginning, but everybody’s leaving with a smile on their faces – we heard some great success stories, and I think we’re all ready for a challenge in 2010. We’re a great bunch of people, great companies, great people to work with, and I think we’re going to have a great year.”

So what turned people’s attitudes around? It was, in this case, participation in The FORUM Conference, held 9 and 10 December at the Sofitel London Heathrow Hotel. The FORUM was a not-for-profit event arranged and hosted by Generator Systems and Perspective Magazine to enable the European timeshare and fractional industry and international guests to reflect on the economic downturn of 2009 and discuss best practices and innovative ideas for 2010.

An Event Overview
Spanning all aspects of the shared ownership industry, The FORUM drew from the experience and knowledge of more than 30 industry experts from Europe, USA, Asia, South Africa and Mexico. A combination of seasoned veterans (and a few outstanding newcomers), inspiring speakers, panelists and moderators took a look at the difficulties of the past year and then looked forward to new opportunities.They discussed everything: legal and financial hurdles, the need to adapt and the desire for change, new sales and marketing techniques, regional and local challenges and more. But perhaps most importantly, topics actually were discussed by everyone.

Each person in attendance was given ample opportunity to pose questions, make comments, and even disagree with a presenter, which happened more than once. This combination of expert advice and instant vox populi feedback translated into real-world answers and oftentimes practical, workable solutions to challenges facing our industry. The FORUM provided an honest, open and frank environment to share views and encourage cooperation as we enter a new era.

What’s more, in various sessions participants broke down the issues by geography, evaluated and analyzed the latest industry statistics and facts, and talked directly with RDO leaders about legislative changes and other issues facing shared ownership. According to FORUM attendees, two of the main reasons for attending the event were networking and hearing the latest industry news. The FORUM powerfully met both these objectives: Shorter sessions and an intimate and relaxed setting for coffee breaks and lunches maximized networking opportunities, and knowledgeable speakers coupled with a truly interactive format meant that those there heard up-to-the-minute reports on what was going on in shared ownership worldwide.

Importantly, the conference content worked on two levels: Long-time industry players were able to glean knowledge from their peers, while new entrants to the industry could learn a great deal.

“There was practical information that we need. Especially for us, a development that’s just starting to go into the fractional industry, so this is exactly the kind of forum that we need to gain credible information and all the details we don’t know about,” said Regan Berger, sales and marketing director for Promotora Golf Fain S.L. “[The legal session] which essentially opened our eyes to a few things that we hadn’t thought about thus far.”

“It’s always good at least once a year to catch up with your fellow industry experts and to swap stories and to see how they’re getting on in this business,” said long-time industry player Peter Booth, managing director of Pestana Vacation Club. “And once again find out if you can learn a little bit, because you never stop learning in this business and there’s always something to pick up and take away and implement back home at your resorts. For me it’s been enlightening and a couple of things that I’ve penciled in to follow up when I get back to Madeira.”

Popular Sessions
Session highlights according to attendees were the sales and marketing and fractional sessions, as well as the open-agenda, open-mic Gloves Off! session.

In the session, Selling & Marketing to the new consumer: What Works for You?, panelists and participants shared what worked and what didn’t over the past 12 months; listened with interest as Philip Watson, managing director of Worldwide Timeshare Hypermarket, described a new TV advertising program that looks set to unleash a sustainable cost-effective route to market; and heard Paul Mattimoe, CEO of Perspective International, describe how his consumer publication, Owners Perspective Magazine – through aligning with major brands outside of the industry, such as British Airways – was proving that consumers have a greater appetite for timeshare and fractional products than some would think.

In another session, Is Fractional the Future of the Shared Ownership Industry?, panel speakers and members of the audience opened up about what actually was selling in 2009, providing actual sales totals at various properties worldwide. Attendees also discussed the various definitions of the word fractional and debated the differences between fractional and timeshare interests. It was clear that most fractional developers still wanted to disassociate themselves from the timeshare industry, despite hearing that the two products were in fact legally considered the same type of product.

The Gloves Off! session lived up to its name, as attendees fiercely continued their examination of fractionals and where again some fractional developers still battled with definition issues, even when comments came from other developers and even fractional exchange companies to the contrary. But most importantly, this session allowed for a much needed group discussion to take place that involved major players in the industry debating (and essentially shaping) the future of the shared ownership industry – something that in Europe, at least, is extremely rare. On a separate topic in this same session, delegates also got into a quite-spirited and controversial discussion of how to rid the industry of unscrupulous holidaypack scammers.

But the meeting was not all about heated debate on serious subjects. The FORUM scored a major coup in featuring two industry icons, each of whom had scarcely spoken at shared-ownership events during the past 10 years. John Spence, chairman and owner of Karma Royal Group, has over 25 years in the business, but he delighted the crowd with brilliantly funny anecdotes from his pre-resort music-industry days and his early days in our business. Roy Peires, chairman and founder of Club La Costa Resorts & Hotels, fascinatingly explained how his company came to be among the leading lights of timeshare in Europe and one that is, by its innovative and progressive approach, defining the standard and shaping the way in which its more than 50,000 members enjoy their holidays.

Summing It Up
“Without an RDO conference [in 2009], there were few opportunities for all interested parties within the industry – developers, exchange companies, finance companies – to actually get together in one place and at one time and not just socialize, but talk business,” said Michael Myers, Interval’s vice president of resort sales for Europe, the Middle East and Africa.” And without it, we would have had to wait a whole year. If you don’t bring the industry together, it tends to go off in separate directions.”

Others agreed with Myers’ assessment. “It’s very easy to get down when you read doom and gloom in the papers all the time,” commented Leslie McCann, group marketing director for Seasons Holidays Plc, who effused about The FORUM and then mentioned an additional benefit to attending: “If you just come away from an event like this with one idea and make it your own, that’s what it’s all about, really.”

Overall, people seemed to really enjoy the event in addition to appreciating its business benefit. Further attendee feedback indicated they also believed the conference was a good value for the money and that it was well-organized, two reasons why those who took the time to comment rated the meeting as either good or excellent overall.

“It’s been fantastic, bringing everyone together,” saidRobin Mills, communications chairman for RDO. “I’m really grateful for what Generator and Perspective have done. It’s been the right mixture of networking, sessions, individual speakers and party.”

Possibly most significant, however, is that many attendees left the conference with a positive outlook for the future of the industry. “It’s been a great time for the industry to come together, and I think we’ve accomplished a lot,” says Interval International Managing Director David Clifton.

“It looks like people are optimistic that 2010 is going to be better than 2009.”

Generator Party Rocks The FORUM
Of course, there was a Generator party at The FORUM – and Generator-hosted bashes are renowned for their great music, freeflowing drinks and let-down-your-hair fun.

The evening began with an elegant dinner and good conversation. A supposed maître d’, chef and server turned out to be a trio of gifted operatic singers in an extremely entertaining comic routine that captivated the entire audience.

Later, as people moved from the dining to the dancing, an energetic and talented cover band got people moving and grooving right away. It also didn’t hurt to have the conference’s “Generator Girls,” who were dressed all in white and had been serving champagne at the entrance, move inside and invite attendees to join them on the dance floor.

It has been said that many times that our industry “knows how to party,” and perhaps it is best to borrow a phrase from Las Vegas: What happens at the Generator party stays at the Generator party.

“There were a few sore heads this morning,” noted Robin Mills on the day after the party, “including mine.”

Fast response to changing trends is at the core of Club La Costa Resorts & Hotels’ ability to snatch success even from the jaws of the worst global recession to affect the holiday industry.

Recently, the company moved to close down four of its five off-site sales operations in the UK, due to the country’s continuing economic battering, to refocus on new programmes aimed at increased Fly-Buy/SIV activity.

CLC’s prestigious sales and exhibition centre in London’s best postcode, the West End, continues to operate, but a decision was taken to shut its other UK off-sites as their effectiveness in the current financial climate was under question.

“Right now, the best thing we can do is offer great price family holidays where customers can come and sample the quality and value of the Club La Costa experience, and we are doing this through a number of channels,” said chairman Roy Peires.

Club La Costa’s Essex-based marketing operation is at the centre of a flurry of Fly Buy activity handling data from a mix of sources, such as shopping centre booths, emailings and websites, while independent marketers have promotions at airports both in the UK and Spain.

UK off sites have been integral to the company’s success across its 25-year history, resuming in 1991 after a break in the 1980s. However, the continuing poor shape of the UK economy, have led to a major sales rethink.

About Club La Costa Resorts & Hotels
• Club La Costa Resorts & Hotels is widely regarded as a leading provider of holiday products in Europe.
• Founded in 1984, the company has more than 50,000 members and 23 wholly owned resorts in England, Scotland, mainland Spain, Tenerife and Austria.
• CLC Estates is the company’s successful real estate business.
• Club La Costa also has its own in-house travel agency and resort management arm.
• Developing a mixed use model of whole ownership homes – offered with a leaseback programme – and timeshare resorts, Club La Costa has expanded into Turkey during 2009, opening a new resort with a second planned for 2010.
• In 2007, Club La Costa launched its unique Yacht Club with sailings in the Red Sea, Turkey, around Mallorca and, planned for next year, Greece.
• Across its operations, Club La Costa employs more than 2,000 employees.
• The company is a founding member of the Organisation for Timeshare in Europe, now the Resort Development Organisation (RDO) of which it continues to be a key supporter.
• The Smile Foundation, a charitable organisation which Club La Costa helped found and helps raise funds for, and the private Roy Peires Foundation, help many needy causes. 
• Club La Costa prides itself on impeccable levels of service, innovative products, a pioneering spirit and the outstanding quality of its resorts, which occupy top locations and offer a wide range of excellent facilities.

For further information please visit www.clublacosta.com

FSOTA (Fractional & Shared Ownership Trade Association) announced today a special introductory offer for new members. Companies that join the FSOTA between now and 1st February 2010 will receive full membership of the association at 1,216 Euros per year. This price is frozen for a 2 year period.

Membership of the Association is open to businesses involved directly or indirectly in the fractional and shared ownership industry and which adhere to the Rules of the Association and its Code of Conduct.

 “The FSOTA is the only trade association totally dedicated to promoting best practice in the growing fractional property market” said Piers Brown, founder of Fractional Life “With the ongoing support of RDO and clear membership guidelines and benefits, joining FSOTA is a cost effective way to demonstrate your company’s commitment to the long term success of the industry.”

In addition, the FSOTA will offer members of RDO (Resort Development Organisation aisbl) that offer fractional products free membership of FSOTA.

Leslie McCann, Group Marketing Director Seasons Holidays plc (RDO member) commented “We are delighted that RDO has quickly recognised the growing Fractional market here in Europe by forming the FSOTA and allowing companies who as members of RDO already contribute to promoting good practice in the development, regulation and sale of all types of resort property, to enjoy automatic membership. The FSOTA will ensure that the distinct voices and message of the emerging fractional ownership industry will be heard and will ensure that consumers can purchase Fractional Ownership with confidence”.

More about FSOTA
The FSOTA promotes the growth of the fractional and shared ownership industry in a responsible, honest, and transparent manner, based on principles of fair trading, professionalism and quality of products and services. www.fsota.org

The FSOTA is a subsidiary association of RDO (Resort Development Organisation aisbl), an international non profit making association registered in Brussels with company number 0457.984.213.  Its registered office is at Oak House, Cours St Michel 100/3, 1040 Brussels, Belgium. www.rdo.org

The Fractional and Shared Ownership Trade Association (FSOTA) has become a member of the trade body for vacation ownership, Resort Development Organisation (RDO). RDO promotes best practice and fair trading in the industry while protecting consumers through its code of conduct. While remaining a stand-alone association, FSOTA members are now bound by this code.

Formerly known as OTE (Organisation for Timeshare in Europe) RDO changed its name and opened up its membership to reflect changes in the vacation ownership industry, which has moved well beyond traditional forms of timeshare to include offerings such as ‘floating weeks’*, the points system*, fractional ownership*, private residence clubs*, destination clubs* and condo hotels*.

“We renamed ourselves as RDO so we could truly reflect the extensive range of holiday options now available in the vacation ownership market,” said Richard McIntosh, Chairman of RDO. “With FSOTA joining us we are able to significantly increase our representation of the fractional ownership market. It will allow FSOTA members to benefit from our eleven years of experience at promoting best practice, working with governments for fair legislation and working with the authorities to combat fraudulent activity. Very importantly, people who own fractional properties with FSOTA members will now be protected by our code of conduct.” 

Piers Brown, chairman of FSOTA commented: “We were set up to represent fractional property developers and to promote responsible growth of the industry. Joining RDO is a very positive step for us as our members can benefit from being part of a wider association which has a track record of representing the industry and enforcing high standards of conduct and professionalism. We expect fractional and shared ownership to continue to increase in popularity and membership of RDO will help the industry grow.”

More about RDO
RDO (Resort Development Organisation) is the trade body dedicated to excellence and fair trading in the European vacation ownership industry, whilst promoting and fostering industry growth. As such, it serves its members through public relations, legislative lobbying, research and member and consumer relations management.
Resort Development Organisation, formerly Organisation for Timeshare in Europe AISBL is an international non profit making association registered in Brussels with company number 0457.984.213.  Its registered office is at Oak House, Cours St Michel 100/3, 1040 Brussels, Belgium

*Glossary of terms
The vacation ownership industry is made up of:

Timeshare
Timeshare means buying the right to spend a set time period in a holiday property each year for three years or longer, usually paying an annual management fee.

Fixed week/apartment
Under this system you own rights to a specific week, usually in a specific apartment/villa.

Floating week/apartment
In the ‘floating system’ you own occupancy rights to a week in an apartment type, within a season. Each year you have to book the specific week that you want, subject to availability.

Points
Points are a form of holiday currency. Owners use their Points to pay for holidays, selecting accommodation that is in the scheme’s accommodation pool.

Fractional ownership
Fractional ownership gives buyers ownership of, or occupancy rights to, a property normally in perpetuity or in some cases for an agreed period of time, with a fixed or rotating term of residence, eg ⅛ or ¼  share each year. An annual management fee is usually payable.
Many fractional schemes are in fact timeshare but some are share based or a lease may be granted for a percentage of a property. In some fractional schemes, when the property is sold, any profits on sale are shared between the owners.

Private Residence Clubs
Private Residence Clubs are high-end fractionals, enabling the consumer to own a part of a luxury home, often in unique locations and with the added benefit of maid or concierge type services. 

Destination Clubs
Destination Clubs are based around consumers sharing a portfolio of fully-furnished, multi-bedroom residences around the world. Members usually pay an upfront deposit and an annual fee for exclusive access to a multitude of properties which can be a mixture of holiday beach, ski and city residences. This can be an equity or non-equity interest, depending on the scheme.

Condo Hotels
Condo hotels are typically luxury hotel properties in outstanding locations. Essentially, consumers buy a legal interest in an hotel room giving them personal use of a specific number of weeks. They normally participate in an organised rental programme and share in that rental income.

For RDO’s Public Relations Office in the UK, contact:

Jackie Murphy/Will Brewster
Flagship Consulting
020 7 886 8440

Jackie.murphy@flagshipconsulting.co.uk or will.brewster@flagshipconsulting.co.uk