Q&A: Talking to customers about timeshare benefits

August 2016

Over a period of time AIRDA’s editorial team has spoken to a wide cross-section of customers. People coming in from different backgrounds, professions, age groups and locations, but share something in common: the need for a unique holiday experience that timeshare can provide.

We feature a selection of responses from our Q&A sessions to capture the salient points made by them and some of the suggestions they have in mind for other customers and resort owners.

Q: On the plus points of a timeshare membership

One customer we spoke to, thinks timeshare holidays are a great way to unwind and relax, at locations that are definitely a home away from home. Only timeshare can give you spacious rooms, flexible food plans and plenty of scope for activities. And yes, a timeshare plan does give you the comfort of long-term benefits – the math makes sense.

Another customer felt that a timeshare holiday actually gave you close to 5-star accommodation and comfort – and this is something you really have to keep in mind when you’re looking at overall benefits. A timeshare resort also offers wide-ranging entertainment options – most hotels don’t give you more than a gym, or a pool.

Q: On the differentiators that make timeshare holidays attractive

The first benefit that comes to mind is the time span of your vacation plan, which can stretch across 25 years. Most people we spoke to said that timeshare encourages you (and enables) going on holidays with your family. And there’s always something happening at the resort location for dads, grandads, grandmoms and yes... grandchildren as well. The younger mid-thirties segment of course will find lots to do and many ways to unwind in terms of outdoor and high-energy activity.

Here’s a useful observation made by another customer. At the rate most prices are looking up, I can see that the mere thought of paying for a holiday – even five years from now – can be staggering. So if you’re looking for a vacation plan that takes inflation into account, timeshare is the best answer.

Q: On feedback, or suggestions from a customer’s point of view

Here’s a brief selection from the huge response that we received.

Feedback for timeshare resort owners: Resort owners visit, and maybe holiday at other resorts, to evaluate where they stand and where they could improve. To stay at another resort as a customer would be an excellent learning experience.

For old members who are regular on their payments and use of the facility, resort owners could give better deals or advantages, as we have trusted and invested in them for years. Also offer some kind of preference, or feedback to people who are placed on a waitlist.

Q: On the logic behind the 25-year tenure in your plan

The normal term of 25 to 30 years is the result of extensive planning and financial analysis. In addition to ensuring an inflation-free product, the term is designed around ensuring a fair return on investment for the people who put in money on property and resources; there is also the question of ensuring adequate fund flow to manage the property in a sustained manner. It helps to know that the scale of the investment is so huge, investors and resort owners will not be able to stabilize within shorter tenures.

Q: On maintenance fees and annual charges

The actual configuration of maintenance fees is primarily dependent on facilities and the quality of service at the resort. It is useful to remember that there are multiple cost (and expenditure) heads that resorts need to plan around and budget for. This could include general upkeep, maintenance and administrative costs that need to be absorbed on a monthly basis.

At the end of the day, a resort also needs to set aside funds, build up reserves and meet cyclical investments on upgrading the resort. Compare all this with the long-term cost of your holiday - you’re in a time machine that is actually future-proofed against inflation.