TATOCConference2013 Rioma Cominelli Club Leisure Group
A New Dimension inOwner Retention
Graduated at the South African School of Marketing Author of the Timeshare Code practice in South Africa (1987) Longest standing executive of VOASA (1983-2010) Developed 12 resorts Timeshare sales – 65 000 owners & 2 Points Clubs Rentals of 300 000 nights per annum Increase in occupancies from 34% - 71% in 12 months Achieved top Timeshare sales for 3 consecutive years.
Aging owner base – currently 78 yearsOwners began objecting to Maint. feeOwners began to abandon weeksNext generation could not be enticedValue of weeks began to plummetMaintenance fees became less collectableResort income deficits began to emerge Resort maintenance & quality deterioratedOnsite Resales –difficult due to poor spreadResales – limited success –no finance.
53% - “our kids aren’t keen to take over”79% - “we’re too old to travel and enjoy”54% - “our circumstances have changed”81% - “there are better choices”68% - “tired of resort & swapping43% - “locked in and cannot sell.”
“ resort is tired/outdated ”72% “can holiday better & cheaper”58% “there’s little do to at resorts”84% “concept is too long term.”
• How would you rate the resort overall? (1 – 10)• Was the Resort Manager welcoming?• Were you invited to "Meet the management”?• Were staff friendly and helpful?• Was the Manager visible during your stay?• Did staff make you feel very special?• Did the staff appear to enjoy their jobs?• Was info given on what to do at the resort?• Were you told often of the daily events taking place?• Is the resort awesome, everything you want?• Is the resort engaging with loads to do?• Is the resort memorable and exciting?• Would you choose to return to this resort?• Would you recommend this resort to your friends?• Is this resort one of your top 5 holiday options?.
Resort 1 Resort 2 Resort 31 How would you rate the resort overall? (1 – 10) 6 4 6.5Yes No Yes No Yes No2 Was the Resort Manager welcoming3 Were you invited to a "Meet the management”4 Were staff members friendly and helpful?5 Was the Manager visible during your stay?6 Did staff make you feel very special?7 Did the staff appear to enjoy their jobs?8 Was regular info given on what to do?9 Were you told of the daily events taking place?10 Is the resort awesome, everything you want?11 Is the resort engaging with loads of things to do?12 Is the resort memorable and exciting?13 Would you choose to return to this resort?14 Would you recommend this resort to friends?15 Is this resort one of your top 5 holiday options?
All inclusive packages• More Flexible• Not locked in• More things to do•More affordableCaravans and camping CruisingHotels and B&B’s
Large developers now all faced similar realities:Too few weeks spread across several resortsToo much to lose (i.e. maintenance fees)Millions still to collect from purchasersVery difficult to sell poor spread of weeksEven more difficult to sell on site.
Developers repackaged abandoned weeks: Into Clubs and points systems Added “bells and whistles” Added easy finance Absorbed unsold inventory Worked with home owners.• SALES EXPLODED AND NEW MARKETS OPENED UP• Dream Vacation• Holiday Club• Star Club• Club Trafalgar• Flexi Club• Premier Club• Golf Club
Massive surge in new sales on and off site Abandoned weeks - absorbed by various clubs Resorts were upgraded and improved Demand for resorts increased Rentals improved Product became more attractive Record sales Younger blood interested Maintenance fee collection improved 54% of South African stock owned by Clubs Exit /Resale Strategy – Improved.
Clubs won’t pay maintenance fees Clubs will take over resort Maintenance fees have to be paid for Clubs to survive Clubs support enhancements, to improve fulfillment Clubs drive rentals and mini vacations Resorts can protect democracy Abandoned weeks are readily absorbed.
TRUTHSThe way the guest “feels” is key to his opinion A well run Timeshare resort is no longer adequateThe more ”senses” engaged the better the rating Guests expectations are ever increasing Guest wants to have loads to do onsite.
• Daily room service• Guest amenities (shampoo etc)• Hot and cold towels• Welcome and farewell parties• In room hot beverages• Food deliveries to apartment• Hairdryers• Service questionnaires• List of “things to do.”
Focus on Engagement Add new affordable experiences Add Revenue generating activities Create resort brands individually.
Retail OutletsRental of premisesConferencingHiring of Equipment.
Energy saver bulbs Water wise shower heads Recycle Bins Natural water storage tanks Daylight sensors Geyser time control Geysers – reducetemperatures Worm Farms Returnable bottlesSaving notices Salt water chlorinators Pool pump timersIncentivsed savingprogrammes