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Resorts miss out on a billion dollars in revenue. OMG!

Posted 05-10-2010 at 09:48 PM by Erick | 220 Views | 0 Comments
We received so much email about our blog post “Over a million timeshares wasted last year” . People were surprised so many timeshare units went unutilized last year. But owner after owner confirmed that rising timeshare fees have curtailed their vacationing habits going forward. What a shame. Fees have continued to rise, service level has dropped, and the result is fed-up customers (i.e. timeshare owners). These wasted timeshares have impacted both the resorts and the timeshare owners. The impact on the resorts is financial but the impact on timeshare owners is even more important…your health.

For resorts, the name of the game is “utilization”. It’s all about getting people in the doors and then the cash register starts ringing. The more timeshare units that get used each year, the more revenue gets generated. It’s simple: More visitors = more dinners, clothing, day trips, drinks by the pool, etc. A resort might have sold out all of their timeshares but that’s last year’s money. They need to continue generating income. So if there’s a decrease in check-ins there’s a decrease in sales.
So if the end game is “utilization” why do resorts pin themselves to a single exchange club? Why put all your eggs in a single basket? Why not just embrace new ways to bring visitors to your beautiful destination. Having visitors check-in to your resort is your chance to create life-long customers. It’s your chance to showcase your "Brand". Give them the chance to fall in love with your product: your location, your aesthetics, your people, your food, your ambience; the thing that makes you special.

They’ll never spend money at your resort and they’ll never buy a timeshare from you if they never step in the door. Reinvent yourself to embrace new ways of attracting great customers. It’s a new world. People do business differently and get their information differently than they did 10 years ago. We connect and communicate via the web from all over the world. You can attract any visitors you want from anywhere you want. And we are doing that right here at TimeshareJuice.com.

So how did we figure you missed out on a billion dollars? The average couple spends $300 per day on vacation. That’s $2,100 per week for food, massage, drinks poolside, day trips etc. Some of you are laughing because you spend that just on drinks poolside (btw - We want to go on vacation with you). Multiply ($2,100 per week) x (a million unused timeshares). It adds up quickly doesn’t it? $2,100,000,000. Resorts are struggling and revenue is down across the board. $2,100,000,000 repairs a lot of Profit and Loss Statements.

Starwood posts losses on timeshare biz

For timeshare owners it’s about a better quality vacation and your health. Take a moment to read the blog post about “Timeshares as a Vacation Alternative” Dr. Mel Borins discusses the importance of vacation and relaxation to your health. But we know that. It’s a great post about some great research but let’s be honest: Do you really dispute that? I’ll bet you lunch that the lion’s share of your “magic moments” in life have occurred on vacation. Magic Moments are those moments that stand out from the rest. Just thinking about them makes you smile, you feel warm and tingly and generally put you in a better mood. We cherish those Magic Moments.

On vacation we take the moment to relax and see things we don’t usually see. We spend time with those we love. We do the things we wish we could do the rest of the year but we have to go to work every day. Those are special moments – Magic Moments. And they are imperative to your long term happiness and your health. Go make some.

We are making headway on our quest to rid the industry of timeshare exchange fees so we can all save more money, take more vacations, and make more “magic moments”.

Thank you for joining us on our journey.

You’re the best!
Warm Regards,
Erick
The Timeshare Juice Team
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