Online Marketing Strategy for Timeshare Rentals & Resales

ARDA World 2012, Annual Convention

Online Strategy for
Rentals and Resales
Moderator
John Locher, Locher and Associates

Speakers
Erik Hovanec, President & CEO LeisureLink, Inc.
Hansen Hunt, Online Market Manager ResorTime.com
Kristin Intress, CEO InnLink
Jason Tremblay, CEO Sell My Timeshare Now, LLC


Choosing Resales and Rental Solutions
• Consider every option-use many
• Exposure and results
• Ease of vendor relationship
• Attention & service
• Commissions
• Transparency
• Reputation
• Respect and involvement in your industry


Online trends

• International travelers
• Youth movement
• Social booking
• Service UVP


Citius Altius Fortius
Faster Higher Stronger
•Search •Loyalty •Lifecycle
•“Specials” •Conversions marketing
display •Use of data
(analytics)


Thank You!
•Please fill out the evaluation form and return it
in the back of the room.
•Download presentations on the mobile app at
http://m.myiwf.com/arda or on our website at
www.arda.org/conv12/handouts


Online Strategy for Rentals & Resales
Perception vs. Reality
Erik Hovanec, LeisureLink
Hansen Hunt, ResorTime.com
Kristin Intress, InnLink
Jason Tremblay, SellMyTimeshareNow
Moderator: John Locher, Locher & Associates


Agenda
• Some facts about online lodging markets
• Some facts about rental guests
• A decision framework
• Tricks of the Trade


Overview of Online Lodging Markets
• Why rent in the open
market?

• Fragmented… and getting
more so

• Brutally competitive /
Overcapacity most of the
time

• If you don’t know what
you are doing, it can be
very frustrating


Who Are These Rental Guests?
• Normal people looking for
“lodging” (i.e. a hotel…)

• Opportunity to introduce
them to your property

• Generally new to
Timeshare…. but
“Timeshare” has negative
connotations to them

• Your opportunity to wow
them!


A Decision Framework, Part 1
• How committed are you?
• Single biggest determiner
of success or failure
– Commitment can fill your
rooms
– Dabbling will result in
failure
• Must decide if you really
want to jump in… or don’t
waste your time


A Decision Framework, Part 2
If you commit, you will
need:
•Dedicated, professional
team!

•Real levels of inventory

•“Play the game!”


Tactical: Tricks of the Trade
• Great merchandising is a must. [Duh…]

• Sell the inventory the way consumers
want to buy it (“nights”, not the way
the industry wants to sell it (“weeks”)

• Market sets the rate…. Not you

• Promotions, Promotions, Promotions! -
- who pays retail anymore?

• Focus on placement!...

• Placement = money


Online Strategy for Rentals & Resales
Perception vs. Reality
Erik Hovanec, LeisureLink
Kristin Intress, InnLink
Hansen Hunt, ResorTime.com
Jason Tremblay, SellMyTimeshareNow
Moderator: John Locher, Locher & Associates


Marketing Timeshare Rentals Online

Hansen Hunt,
Online Marketing Manager
ResorTime.com


Marketing Timeshare Rentals Online


Why do you need to be online?


Where do you need to be online?


Most Important Web Presence… Search Engine


How do you do all of this?


Committed but Confused
• Are you Here?
• You are Here!
• Where do I go next??


Are you Here?
• Are you searchable?
– Must be found to be booked (SEO/PPC)
– How are you being found?
• OTA’s
1-6 book at OTA
• GDS
400,000 travel agents World Wide
• Portals/Aggregators
1000’s


Are you Here?
You have 4-7 seconds
• Are you bookable?
– Must be useable to be booked (Website,
Facebook, Mobile) provide
to
• Easy to Use
the solution
Book Now button
• Personalized
your guest
preferences, add-ons
• Measurable
track your ROI, conversion rates, know where you
lost them is looking for
in the process to capture new
opportunities


Are you Here?
You never get a second
• Are you available?
– Must be able to talk with your future guest
chance to sell tonight’s
to sell (front desk)
– Who are they calling?
inventory. Peoplephone want
• Do you always pick up the still
2AM?

to talk to people.
• Do you have time to sell
owners checking in, asking questions
• Do you up-sell
11% higher ADR in the call center


ECO System
Revenue Management and
all property level interfaces
Direct
Wholesaler IBE
Connects

Amadeus

PMS CRS
Pegasus Sabre
System Provider

ODD
Travelport
Extranet Voice

Channel
eMarketing
Manager


You are Here?
• Channel Mix (Cindy Estes)
– How much should you expect from each
Unless you are running at
channel?
• Each channel has it’s purpose
100% occupancy at your right
• Don’t compare yourself to
the
rate, youthey may be wrong
neighbor, ’ve left money on
• Maximize your mix
the table


You are Here?
• Each Channel has it’s purpose
– What is growing?
• Mobile, Facebook, Branded booking engine
– What is shrinking?
• OTA’s, GDS
– What is staying the same
• Voice, transient


You are Here?
• Don’t compare yourself to your
Metrics are tools to guide
neighbor, they may be wrong
you in the Dark…
– Every segment is different
• Timeshare, Condo, Rentals
•Is Every destination is different
– your metric accurate
•Is Every product is different
–
your metric consistent
• Fly to, drive to, Rural, Urban

•Is your metric measurable
• Amenities, near by attractions


Channels reviewed in Study
Brand.com Marriott.com, Starwood.com, hotel’s own web site
CRS/Voice 1-800-hiltons, 1-800hotels, 3rd parties
GDS Travel agents (Sabre, Galilieo, Amadeus, Worldspan)
OTA Online travel agents
Property
Walk-in, group/rooming list, employee/discount, contract, Passkey
Direct/Other

DISTRIBUTION STRATEGY ISSUES
•Online Consumer Behavior
•Cost Evaluation by Channel
•Market Resource Allocation
•Optimal Channel Mix Copyright 2011 Smith Travel Research


Costs of Distribution-Case Study
Hotel Profile: Small Major Urban
Chain/Independent Location
Room Count 400
Occupancy 68%
ADR $135
Total Room Revenue $13.5M
Business Room ADR Revenue Share of
Type Demand Demand
OTA 25,000 $110 $2.75M 25%
Corporate 20,000 $135 $2.7M 20%
Group/ meetings 30,000 $135 $4M 30%
Brand.com 20,000 $165 $3.3M 20%
Citywide/ Other 5,000 $140 $700K 5%


Optimal Channel Mix
Requires analysis of demand and competitive market situation:
more than a simplistic exercise to remove the lowest profit channels

Demand Share by Channel for Total US
YTD June 2009, 2010 and 2011 (Percent of Total Room Nights)

YTD numbers available Copyright 2011 Smith Travel Research

OTA, Brand.com, and GDS up, Prop Direct down, GDS flat

Channel Demand Share by Scale for US
June YTD 2011 (Percent of Total Room Nights)

Similar to Annual 2010 numbers, with some exceptions
Voice & GDS high at top, OTA & Direct at bottom, Brand in up/mid Copyright 2011 Smith Travel Research

ADR by Channel for Upper Upscale
Annual 2009 & 2010

ADR by Channel for Upscale
Annual 2009 & 2010


Channel ADR by Location for US
Annual 2010 (Percent of Total Room Nights)



You are Here?
• Maximize your mix
– Understand how to sell to your guest
• What are they looking for and is your process easy,
Every managing your inventory effectively?
channel has it’s place
efficient, safe, bookable?
– Are you
andyou managing inUse them, don’t
– Are value. fear?
• Channel management, Rate Setting, Packages

• I don’t understand so I’ll close out channels
• I think OTA’sthem use you to sign up
letguest can send me ansoemailnot goingit’s more
are too expensive I’m
• I think the because
personal and I could sell them on a timeshare
• I think call center’s are too expensive so I’ll answer the
phone myself


Where do I go next?
• Be committed
• Be open to new approaches out of
your comfort zone
• Find a partner that will guide you
and provide recommendations
• Don’t wait till tomorrow to do what
you should do today.

Long-tail OnlineAnnual Convention
ARDA World 2012, Resale Strategy
The “Long Tail” describes the strategy of selling a large number
of unique items with relatively small quantities sold of each.

This concept can
also be applied
in online
marketing.

Examples of long tail marketers: Amazon, Netflix, Travelocity, Ebay

ARDA World 2012, Annual Resales
HOA vs. Developer Convention
HOA/Mgmt. Co/Sold-out Resort Resale
(no active sales – no perceived conflict)
• Marketing Driven Resale
– Onsite sales teams can “work” existing owner
base, drive tours and move more volume at a
higher price
• Market Driven Resale
– External brokers and online resellers
– Price is determined by supply and demand
dynamics
– Most resale buyers are “shopping” online

ARDA World 2012, Annual Resales
HOA vs. Developer Convention

Developer (in active sales) Resales
– Can create internal listing team
• Can resell front-line or make listings available to
external reseller(s)
– Recommend several timeshare resellers
• Can provide list of ARDA resale companies
– Vett and recommend one “Authorized Reseller”
• Allows you to consolidate resale inventory
• Gives greater visibility into results and owner service
• 3rd party relationship mitigates internal conflict with
Sales and marketing

Let’s First Dispel 2012, Annual Convention
ARDA World Some Old-school Thinking

Quotes I’ve heard from Industry CEO’s
“No one wakes up and decides to buy a
timeshare”
“Timeshare will never be a sought good”
“The internet will never become a
timeshare vending machine”
“We need to outlaw resales”


This
Thinking
Drives Me
Crazy!!!

Here’s World 2012,News for Resales:
ARDA the Good Annual Convention
There is staggering demand and traffic
online for “timeshare”

People ARE
Actually
Waking up and
Deciding to
buy timeshare!

HOW? A Lesson in Keywords

823,000 people Googled “timeshare” last month alone

“Fat-head” Keywords

Source: Google

The Keyword2012, Annual Convention
ARDA World Search Demand Curve

Highest Competition Lowest Competition

Lowest Conversion Rate Highest Conversion Rate

The “Long-tail”

Example: “st john timeshare”

The “Tail”World 2012, Annual Convention
ARDA Just gets Longer and Longer

Fat-head, Chunky-middle, Long-tail…WHAT??

Understanding of keywords
1) Fat-head: Most generic keywords with the most
traffic in your niche. Each niche may be very
different in terms of quantity. We view the “fat-
head” as any keyword that brings us 500 or
more visits per month.
2) Chunky-middle: Any keyword that brings 25
visitors or more
3) Long-tail: Keywords that deliver less than 25
visitors per month.

AARDA World 2012, Annual Case Study
Resale Success Story Convention
Analytics data from January 2012
SellMyTimeshareNOW.com

292,406 people came from an
organic “keyword search”

“Fat-head”World 2012, Annualmonthly vists +)
ARDA Keywords (500 Convention
1 thru 10 of 117,072 keywords that drove 292,406
organic visitors

ARDA World 2012, Continued…
“Fat-head” Annual Convention
The top 21 of 117,072 keywords delivered
38,162 visits or 13% of January traffic

It’s the 80/20 rule upside down

…and the Long-tail begins

Only the top 628 of 117,072 keywords queried in
January delivered over 25 visitors for the month(.05%)

99.5% of keywords queried
in January delivered less
than 25 visitors per
keyword but 87% of the
total organic search traffic

Long-tail

117k Keywords drove 339k Unique Visitors
Which drove 20k conversions

Long-tail Online Marketing Efficiency
Average cost of buyer lead:
$3.00

– Web savvy – the “next generation timeshare
buyer”
– Inbound and unsolicited
– Strong behavioral intent to purchase or rent

In Summary

– There is strong online interest in timeshare (rental
and resale)
– Prospective timeshare buyers and renters are
using the internet to do their shopping
– Those prospects know what they are interested in
as reflected by their keyword searches
– The secondary market is growing and will
continue to grow
– Most of that growth is occurring online
– A robust resale program must include an online
component
– You don’t have to do it yourself

ARDA World 2012,Services
Owner Annual Convention
We are now successfully partnering with numerous
developers and HOA’s on resale

– Can provide dedicated team trained on your
resort/product to field resale inquiries
– Offering owners choice of for-sale-by-owner
advertising (“FSBO”) or full service commission
based listing service (No “up-front” fee)
– Resale and Rental solutions for HOA’s and
delinquent/foreclosed inventory
It
– Listings are non-exclusive Works!

Your Owners 2012, Annual Convention
ARDA World NEED a Resale Solution

Its time to give them one

Don’t be this guy

Online Marketing Strategy for Timeshare Rentals & Resales

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