Monday, November 15, 2010

Anatomy of a Timeshare Tragedy

Start with a nice little resort with great potential. The first mistake is to have RCI allocate this nice little resort a point value far beyond other resorts in the area with far more amenities.

1. Hire people with no timeshare experience and put them in semi-important positions, suh as managing the contracts department when they have no understanding of legal issues and/or managing the front desk when the difference between a hotel and a timeshare escapes them.

2. Assess a special assessment in the midst of one of the country's worst financial crunches.

3. Lie to your owners about what the special assessment will be used for.

4. Spend the special assessment funds on anything and everything BUT what you told your owners you would spend it on.

5. Make it nearly impossible for owners to attend the annual HOA meeting by burying the meeting details in another document, holding the meeting at an inconvenient time and holding the meeting off-site.

6. Lower maintance fees, don't maintain the property properly and allow your sales staff to tell clients; "oh, you buy here so that you can trade, I'd never stay here, it's a dump."

7. Take a hands-off approach, don't be pro-active, listen to people who don't have the resort's best interest at heart multiple times and hide your head in the sand.

8. Allow your "sales force" to sell a vacation club rather than timeshare.

A tragedy for the owners, for the handful of qualified, dedicated personnel still employed trying to make the best of it and a tragedy for the timeshare industry as a whole.

No comments:

Post a Comment