Simon Jackson: The need for a comprehensive exit strategy
Changing perceptions of timeshare was going to be one of the hardest things the industry would ever do. This was the claim put forward in 2008 by Simon Jackson, chief of Macdonald Hotels & Resorts.
In his previous TATOC presentation he asked delegates what they thought the perception of timeshare was among the general public. The answers were as expected – bad reputation, bad press, bad practice, cheaper alternatives online, increasing management fees, no exit strategy, can’t sell and no value.
Four years later they remained the biggest problems facing the industry.
Many of today’s owners bought over 20 years ago, he said. They were sold on the idea of access to exotic destinations, owning a home away from home, the pursuit of luxury for their family and even a great investment in holidays for the long term.
In 99 per cent of cases timeshare delivered. But things have changed.
He outlined “some sobering facts”:
• There are at least more than 300,000 weeks for re-sale across Europe;
• Fewer than 10,000 resale weeks a year are actually sold;
• How do I sell? This is the most frequent (70 per cent) question faced by the TATOC helpline
• Owners are becoming desperate because they cannot pay their management fees;
• Their children do not want to take over ownership;
• Management fee collection rates are falling;
• Paying owners are covering for non-paying owners; and
• Resorts know there is a problem but have no idea how to deal with it
So what is Macdonald Resorts doing about this?
You can find out more in the latest issue of Sharetime magazine (pg 15): Sharetime Magazine