Timeshare Is ‘Bright Spot’ In Hospitality Industry, Say Experts

LAS VEGAS— Experts gathered here this week for the 2002 International Resort Development Convention & Exposition to discuss the state of the timeshare business and found it is doing extremely well. Timeshare is strong in comparison to the rest of the travel and tourism industry, they said. ARDA President/CEO Howard Nusbaum told HOTEL BUSINESS® in an interview that timeshare, post-Sept. 11 and in the poor economic climate, is doing well, and that people have come to this year’s confab to do business. He noted, “people are writing checks” at the show. “We are doing better than our brethren in the hotel industry, but we are part of the hospitality, travel and tourism industry, so as it goes, so go us,” he said. “[However], we are a bright spot in the travel and tourism industry because we have been able to sustain growth where hotels haven’t been able to,” he said. “We are little more recession-resistant than hotels. If somebody owns a timeshare, they are going to take it— it’s prepaid. So it’s very good news for a local economy because where hotels are more volatile in terms of occupancy based on what’s going on in the economy, if a resort’s sold out to owners, those owners are going to come and exchanges are going to come, so in that way we are a little more recession-resistant,” he continued. Plus, post-Sept. 11 there is an increased focus on spending time with their families. “We’re a very family-friendly product, with two- and three-bedroom condominiums with a lot of amenities that families like. An extended family can travel together, can exchange, go to drive-to destinations. I think there are a lot of people who said, ‘I am going to spend a lot more time with my family this year.’” as a result of Sept. 11, Nusbaum said. That is helping timeshare, he said. He noted the week following Sept. 11, people were buying timeshare. “If you look at Smith Travel Research’s numbers, Friday and Saturday nights are up, and not Wednesday, which tells you business, corporate, convention travel is down, and leisure travel is up. And we are tied to leisure travel. It’s leisure travelers who go on a timeshare tour.” Jay Wilson, director/resort sales and service, Interval International, concurred with Nusbaum’s assessment, noting in Interval’s estimation timeshare was strong. Meanwhile, Edwin McMullen, senior partner, Edwin H. McMullen & Associates, predicted that “we will see more mixed-use resorts. [Timeshare is] becoming more a part of real estate development.” He also said to watch for more consolidation which will create fewer, but larger players within the timeshare arena; more segmentation; and more “internationalization”— meaning timeshare options will increasingly stretch across the globe, increasing timeshare options. For example, “you will see a massive growth in Asia.” He also noted growth in urban, eco-tourism, health, heritage and cultural resorts. And the importance of creating a brand will become increasingly important in years to come, as we live in brand-oriented society and look for brands we know and trust. Wilson also noted the importance of exchange, or the ability to switch vacation weeks either within the home resort and home resort development group (internally) or within outside resort development group(externally). “The vast majority of the over two million exchange requests made each year are external exchanges,” said Wilson. Either way, “unless you are not in a remote area, you will want exchange at your property,” advised, Kurt Gruber, esq., svp, Island One Resorts. To get the word out, Randy Nakagawa, director/marketing, Grand Pacific Resorts, outlined several principles on which to focus sales and marketing efforts. Those included conducting market research based on both demographics and lifestyles to determine a specific scope and size for your target market; make sure your you match your your product and pitch to your determined prospects; look at your competition for ideas; develop multiple