Sharetime Summer 2014 by Sharetime magazine from TATOC

ISSUE 18 â&#x20AC;˘ Summer 2014

Fee collection getting it right

2014 conference review

Monte Carvoeiro back on track

SHARETIME

Time to look forward by TATOC executive chairman, HARRY TAYLOR

elcome to the 18th edition of Sharetime magazine, which includes a full report on the very successful TATOC conference held in March, as well as a contribution from John Hughes, TATOC’s solicitor, who gives his frank view on the industry today. Monte Carvoeiro, in Portugal, is the resort in focus and we have plenty of news from our members and affiliates, a great ‘why I love my timeshare’, a section for committee members on management fee collection, and all the regular features. You may remember back in December 2013 that TATOC joined forces with the European Timeshare Leaders Task Force. This comprises RDO’s enforcement operation, resorts, timeshare owners, consumer organisations and law enforcement agencies working to tackle the rogues who have been defrauding timeshare owners and consumers to the tune of millions of euros. As we all know, fraudulent businesses come in many guises - making promises connected to timeshare re-sales, legal claims and discounted holidays for life. The great majority are simply criminals. They use the internet and cold calling to trap the unwary. They are clever - using misinformation and useless guarantees to lure their victims into financial heartache and stress. To date, the force has enjoyed tremendous success bringing attention to the companies and individuals involved. TATOC has played a leading part in supplying information to the authorities to combat these activities. The battle continues. The European Commission has launched an evaluation of the timeshare Directive 2008/12/EC.

timeshare and long-term holiday products as well as exchange contracts; and • assess specific additional consumer protection issues in the timeshare sector which are not covered by Directive 2008/122/EC, including newly emerging commercial practices. There will more on this evaluation in later editions of Sharetime and on the TATOC websites. Over the past few months we have had additions to membership and company affiliates. It is a pleasure to welcome Underscar, in the Lake District, and La Quinta at La Manga Club, in Spain, into membership. Our three new affiliated companies are Connex U.K. & Ireland, True Factor and American Resorts International’s Network. You can read more about these resorts and affiliated companies in this issue. One final request from me before you read on. We need feedback and participation from as many readers as we can to help promote the timeshare experience to new owners. So please write or call us – you’ll find all the information you need on our various websites. Happy holidays,

Harry Taylor, executive chairman

arry Taylor, executive chairman and CEO of TATOC, was guest speaker at a major seminar held by the Institute of Valuers (UDA), in Sri Lanka. The international public seminar, which took place in Colomobo in late April, evaluated property development and investment in local real estate since the end of the terrorist war in 2009. In his presentation, Taylor introduced the basics of the timeshare concept, discussed the various timeshare legal formats, explained the regulatory framework required and highlighted the experiences of timeshare in the U.K. and elsewhere. It is believed by many that property development is set to leap forward in Sri Lanka, especially as the west emerges from recession and because of the forwardthinking steps taken by the Sri Lankan government. Under-utilised land has been released in urban areas for property developers under strategic planning by the UDA. Major developments are expected in the near future. The Institute of Valuers believes there are many areas of property development and investment that remain untapped including the concept of timeshare. The other concept is real estate investment trusts (REITs). The seminar focused on both these potential forms of property investment and considered what extent Sri Lanka could adapt these concepts to enhance the quality of property development. TATOC was contacted six months ago and asked to assist as overseas experts at the seminar. Taylor offered advice and information that will benefit property developers and investors by stimulating analytical thinking and enhancing the quality and accuracy of their decision-making.

TATOC is actively involved in this evaluation, which has enhanced consumer protection and consumer confidence in the timeshare sector as major discussion points. The objectives of this evaluation study are to: • Assess the degree to which the objectives of Directive 2008/122/EC have been achieved - that is to contribute to the proper functioning of the internal market and to achieve a high level of consumer protection in respect of certain aspects of the marketing, sale and re-sale of

TATOC leader addresses major Sri Lankan seminar

Also speaking at the conference was Chris Allen and P. Balachandran, from TATOC affiliate Hutchinson & Co Trustee Company.

Harry Taylor with Dr K. Locana Gunaratna

There are currently just two timeshare resorts in Sri Lanka – the Babylon Resort Hotel, in Kandy, and the Oasis, in Hambantota, both of which are affiliated to RCI.

ISSUE 18 • Summer 2014

News from the TATOC Consumer Helpline

Helpline manager Mark Caldicott shares the latest news from the TATOC consumer facility

he TATOC annual conference not only began our 25th anniversary celebrations but was also the start of a busy year for TATOC in general.

Set to improve service levels

visitors much as they would in a physical store, answering questions in real time. Around half a dozen consumers have already used the Live Chat facility and it works very well. We are able to capture the data provided and respond with the necessary information relating to the enquiry.

At the end of March, we launched our sister website specifically supporting the activities of the TATOC Consumer Helpline. The site can be found at www. tatocconsumerhelpline.eu.

It is a great tool for those who want an instant response and prefer to communicate via a website rather than by telephone or e-mail. We are always looking to improve our service and we are sure that this new functionality will help us achieve our goals.

The plan is for this to be a positive and educational website with regular updates aimed at timeshare owners and those in need of assistance.

The site also has an annual running-total indicator highlighting the amount of money we have helped consumers try to recoup. This currently stands at £281,164 for 2014.

The new website reflects the recent division of the helpline from the main TATOC association. A new company, TATOC Consumer Helpline, was established in 2013 so that it could concentrate resources on this important function.

The TATOC Consumer Helpline is the association’s flagship service. We felt it was important it had its own on-line presence, giving those looking for answers and reassurance quick and easy access to the information we can provide.

Developed to provide easy access to TATOC’s consumer guides, frequently asked questions (which are regularly updated) and consumer alerts, the website is the first timeshare consumer site to offer a ‘live-help’ facility.

As always I would like to remind you all of my five golden words: Never Deal With Cold Callers.

Visitors can now directly contact the helpline team through a chat facility on the website. This is available during office hours and allows the helpline team to connect with

The TATOC Consumer Helpline always recommends timeshare owners never to give money or attend a meeting with any person who ‘cold-calls’ them and never make payments upfront. This was made illegal on February 23, 2011 under timeshare directive 2008/122/EC.

We strongly recommend timeshare owners to be extremely cautious of re-sale companies who: • Contact you ‘cold’ without your invitation; • Request any form of up-front payment as a deposit, administration fee, bond of trust, surety against withdrawal, insurance cover, validity survey, land registry tax, certificate charge, VAT and so on - however reassuring the proposal may seem; • Assure you that your payment would be fully protected under laws governing the use of credit cards; • Ask for your credit or debit card or bank details but assure you they will not take any payment;

• Suggest they can obtain an unexpected and unrealistically high price;

The pool at the Royal Sunset

TATOC Resort accreditation update

he TATOC Resort Accreditation programme continues to grow with six new resorts applying for recognition in 2014. To ensure excellent standards are maintained, TATOC accreditation lasts for just three years and a number of the early-appointed resorts are now due for their first re-inspection. Already this year the Diamond Resorts International (DRI) resorts of Sunset Bay, Royal Sunset Beach Club, Santa Barbara Golf & Ocean Club and Royal Tenerife Country Club have all passed re-inspection. In addition, the DRI resort Sunset View, the largest DRI resort in Europe, has achieved its first accreditation. This year is set to be the busiest year yet for TATOC: a target of 33 resort inspections before the end of the year.

• Say they have a buyer waiting to buy your particular timeshare product; • Invite you to a presentation possibly with discounted travel or accommodation; • Ask you to send them your ownership certificate; • Apply undue pressure for a decision within a short time period; and • Do not comply with the consumerfocused TATOC codes of practice and conduct.

The pool at the Royal Sunset

For further information about the programme and accredited resorts visit the TATOC website or contact the TATOC office on +44 (0) 161 237 3518.

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ISSUE 18 • Summer 2014

In my

BIOGRAPHY: John is a consultant solicitor with Shakespeares and has acted for banks involved with timeshare, timeshare developers and committees for over 25 years.

view

He is deputy vice president of the Birmingham Law Society and is the author of ‘Law of Property Act Receivers’. John is also a notary public. He lives in a village outside Stratford upon Avon and is married with two grown up children.

He advises TATOC and recently participated in the joint TATOC and RDO seminar focusing on perpetuity.

John Hughes, legal consultant, Shakespeares

John was senior partner of Needham & James for over ten years before its merger with Shakespeares. John Hughes

whether members should be allowed to surrender their weeks.

he timeshare industry has changed considerably over the 25 years in which I have been directly involved.

With the ageing profile of members, difficulties in travelling and in obtaining travel insurance have increased. Accordingly there has been a growing demand from some members to be able to surrender their weeks.

My first experience of timeshare was as an in-house solicitor of the bank which was heavily involved in lending on commercial property in the U.K. but had also ventured into timeshare developments within Europe, mainly Spain and Portugal.

This issue has become particularly relevant given the difficulties being experienced in the re-sale market.

In the late 1980s and early 1990s timeshare developers were still building apartments for timeshare and the bank lent not only for the building of apartments but also commercial areas and leisure facilities.

A large number of clubs do not have a mechanism for surrender set out in their constitutions. However, some clubs do allow the committee to exercise its discretion to allow surrender on compassionate grounds.

Part of the security taken by the bank (quite apart from mortgages for commercial areas) was a charge over the unsold timeshare weeks.

Others are considering packages where a number of years’ maintenance fees can be paid up front and on that basis the surrender is allowed.

It soon became clear that the initial sales of a new timeshare would be encouraging as timeshare salesmen were disposing of the key weeks which fell during the school holidays.

It is not always appreciated that, in the standard club trustee scheme, the responsibility for the payment of maintenance fees continues notwithstanding the death of the member. Accordingly, the beneficiaries of the deceased member’s estate can find themselves in the unenviable position of being responsible for maintenance fees.

Once the flow of income from sales started to dry up, the payments to the bank also started to dry up and the bank was then left with security over the unpopular weeks. It became apparent that there was also an inherent weakness in the security arrangement.

This is clearly an unsatisfactory situation and is actively being addressed by the timeshare industry. The RDO requires members have an exit strategy.

The disposal of weeks outside the peak holiday periods is a continuing issue and has taxed the mind of not only many developers but also the committees of membercontrolled clubs. Various incentives have been offered over the years including reduced management fees and use of additional weeks at no or little cost. Some clubs have considered simply closing the clubs down in the winter months but because of the employment protection legislation in Spain and Portugal this can create problems, as full time staff cannot easily be laid off. Another issue that has become of significance over the last few years is

The issue has been discussed in parliament and the European Commission is looking at new regulations, which may in future require clubs to allow surrender of weeks. Clearly, there is a balance that needs to be drawn between the loyal members who wish to retain their membership and those wishing

I have come across many cases where solicitors acting for the executors of the deceased simply cannot wind up the estate until the issue of the responsibility of a timeshare week is resolved.

to depart. It does seem unfair that loyal members should be in a position where their maintenance fees are being increased as a result of their diminishing pool of members. The result of this would be an increasing number wishing to surrender with the result the club could ultimately become unviable and would cease to exist. It should of course be appreciated that clubs in the standard club trustee documentation do have a mechanism whereby the club can be ended early if sufficient members vote in favour. Normally 75 per cent of voting members are required to change the constitution. An alternative is for clubs to adopt ‘floating’ weeks so that the committee, management company or developer has the ability to place members in apartments other than those referred to in the membership certificate and also to change their weeks within the same category. This means that apartments can be freed up for sale with vacant possession. Clearly in the current economic climate the prices that can be achieved are modest. So what is the future of timeshare? The challenges outlined above do need to be addressed. There is no doubt that 25 years ago a lot of people regarded timeshare favourably. Undoubtedly the position has now changed. Possibly the advent of fractional ownership where a group of individuals actually owns an apartment with the right to occupy it at agreed times and to share proceeds from when the apartment is sold - may prove more attractive. Also, timeshares in future may only be for a five- or ten-year term. There is no doubt that the leisure industry generally is likely to prosper with the advent of cheap flights, an improving economic outlook and the desire to escape the uncertain weather conditions in this country. The challenge is for the timeshare industry to deal with the weaknesses the current timeshare product has and try to create a product that is attractive to the next generation.

SHARETIME

Resort news

Two new resorts join TATOC

nderscar - an owner committeemanaged resort located in the U.K. Lake district, near Keswick - has re-joined TATOC after a short break. Completed 13 years ago, the resort is based around a grade two-listed Italianate manor built in 1863, which had been refurbished as a hotel and restaurant in 1990, and sold into private ownership in 2010. The developer received planning permission to build 25 luxury apartments in the grounds to the rear of the manor. Constructed in a complementary Italianate style, with materials to match the manor, the new resort completed in 2002 also included an Italianate water garden. The development took place over three phases: the coach house apartments were completed in 1998, the main development and water garden in 2000 and a final four villas in 2001. Owners and guests have free use of the onsite spa, Oxley’s, which includes a heated indoor swimming pool, Jacuzzi, sauna, gymnasium and bistro with a number of treatment rooms. The spa has been regularly up-dated with new equipment and a steam room. In June 2000, Fisherbeck Management took over the site management and provides a range of services on behalf of the owners including sales, marketing and rentals.

The Italianate-style buildings at Underscar

The constitution of the owners’ club allowed the election of a committee of owners together with two representatives of the developer. The developer gave up that right in 2010 and the committee now comprises only elected owners, though it has the power to co-opt, when appropriate. Today, the resort is all but sold out with just a few developer weeks available. The lease runs until 2078 and Resort Fiduciary Services has recently been appointed as trustee. Speaking about renewing their membership, David Davies explained: “As a committee we believe TATOC promotes the interests of timeshare owners and will, where possible, help to re-coup monies spent in scam situations. One Underscar member has already benefitted from advice in this respect. Our initial thoughts were that TATOC would be able to give some guidance on marketing unsold and re-sale weeks.”

La Quinta Club at La Manga Widely regarded as one of the finest multiownership clubs in Europe, La Quinta Club is situated in the heart of La Manga Club on the Costa Calida, in south-eastern Spain. Nestling in tropical gardens on a hillside above the par 47-pitch and putt course, the five star La Quinta Club is within easy walking distance of the tennis centre and the commercial centres of Bellaluz, La Plaza and Las Sabinas.

The pool and clubhouse at La Quinta Club

Opened in 1986, the club offers 46 luxury two- and three-bedroom air-conditioned linked villas built in the traditional Andalucian style. Apartments look out towards the Mar Menor inland sea across one of the most spectacular views in the Mediterranean. The resort operates a season-based floating time system and is affiliated to RCI, Dial An Exchange and Interval International. Located at the centre of the club is the private heated swimming pool with its own pool bar serving a wide selection of drinks and snacks throughout the day. The spectacular fibre optic lighting within the swimming pool provides the perfect setting for the popular poolside barbecues with live entertainment, held throughout the summer months. The clubhouse is available for guests to enjoy the in-house entertainment and evening functions or pre-dinner drinks before visiting one of the many nearby restaurants. La Manga Club has three golf courses, two of which have championship status; a pitch and putt course and a secluded Mediterranean cove with a seasonal restaurant for visitors to the resort. The tennis centre, recently chosen by the Lawn Tennis Association as its winter training ground, has 28 tennis courts, squash facilities, a superbly equipped gymnasium with spa, a bowling green and a highly acclaimed mini club for children from two to 12 years of age.

Azure team tackles Hellas Rally for charity

The Azure ralley team

he Malta-based motorbike event team from Azure Golden Sands has completed the six-day Hellas Rally in Greece to raise funds for U.K. charities.

Dimitris Manikis, vice president of business development for RCI, made guest appearances throughout the rally to boost the team during the more difficult and challenging stages.

This time, graphic designer Nigel Anastasi and salesperson Alex Collyer joined experienced rally veterans Perry Newton and Kevin Camilleri.

Azure recently affiliated to RCI, giving their 5,000-plus IRC members access to RCI’s global portfolio of affiliated resorts and hotels.

Kevin and Perry successfully completed the Race to Dakar in 2012.

The team has raised money for Help for Heroes and Cancer Research U.K., Azure’s preferred charities.

ISSUE 18 • Summer 2014

Pueblo Evita: Reviving a 29-year-old resort

Resort news

Good year for Barnsdale

he current year is proving to be a good one for U.K. resort Barnsdale Country Club, in Rutland. General manager Russell Waters has reported that the recent AGM was well attended and owners were very complimentary about the grounds. There has been considerable work undertaken throughout the winter on landscaping the grounds with the team opening up more spectacular views of Rutland Water.

The resort now focusses on its ‘Spanishness’ and providing a great holiday experience.

ichvale Resorts has begun a refurbishment programme at Pueblo Evita, on the Costa del Sol, aimed at reviving a well-loved resort that has been operating for almost 30 years. The new developer has also provided funds to support a more active on-site sales programme fuelled by a renewed marketing drive. The aim, says Richvale, is to breathe new life into a resort that for many years has had little or no re-investment to drive up its image and on-line reputation. “We are a small, family-oriented resort built in typical Spanish style and we are working to our strengths by highlighting our ‘Spanish-ness’ and a holiday experience more akin to being in Andalucía,” says Ian Goddard, the resort developer. A modern look has been given to the clubhouse with a new barbeque area, mood lighting on the terrace, new interior and terrace furniture, signage, parasols and awnings all bearing the new logos and look of Richvale Resorts - all in keeping with the architecture and feel of the resort. Sofas and soft furnishings have been replaced in some apartments and the team has introduced a different approach to how the apartments are presented on arrival. There is a fresh approach to onsite entertainment, which is designed to delight clients and deliver a unique holiday experience. Goddard adds, “If we are to gain new members we need to operate in a very competitive and saturated market and one way to do this is to add value to the whole holiday experience. It is no longer good enough just to provide clean and well-

equipped apartments, the modern audience demands more.” It is important, he says, to continue making improvements so that the general feel of the resort is enhanced every year. “We know that the on-line reputation via sites like TripAdvisor are very important to new prospects and anything that produces positive reactions is good for old clients and new. “Our aim is to produce a holiday product where people want to be, not only with the environment but also in the services and experience we provide. In doing this in concert with our on-site sales team we know we will once again begin to grow the member-base to the next generation.” According to Goddard, it doesn’t have to cost much money. A lot of what has been achieved has been a more positive approach from the staff who have adopted a new vision and company attitude aimed at focusing on the clients.

The Barnsdale Owners Association continues to refurbish the existing timeshare units and the resort has achieved RCI Gold Crown and Interval International Premier awards for 2014/15. Over the summer months occupancy levels are set to reach the high 90 per cent range – with owner rentals continuing to grow year on year. This opens up new markets for new buyers. There are three new appointments: • Emma Byrne has been appointed membership liaison manager (replacing Tom Senogles); • Gareth Watkin is the new grounds manger; and • Matt Foord has become leisure club manager

“My experience in recent years, working with some owner-run resorts, is that the management company simply manages within the budget given. They don’t have the vision for the resort’s future or the appetite and drive to implement strategies to gain the revenues needed to improve. “You therefore reach a stalemate where lack of funds leads to a lack of services and standards that simply are not saleable in today’s market. This leads to an inevitable decline.” Goddard’s view is that it is quite possible to rejuvenate an old resort by applying a little forward thinking, a lot of energy and an enthusiastic staff, all looking forward to a bright future.

The hall at Barnsdale

Views over Rutland Water

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ISSUE 18 • Summer 2014

Music memorial planned

Noyes-Thomas said Ron had always encouraged students at the Cape Town school to explore and learn music and find new ways to develop and complement their academic achievements. A music room bearing Ron’s name will create a lasting tribute. “Ron was the epitome of ‘inclusive’ – he sought to introduce, develop and mentor so many people from different walks of life. With this memorial we seek to replicate his inclusiveness, and it will be a tribute from all his friends in equal measure.”

he timeshare industry is coming together to launch a memorial to the late Ron Haylock, one of its most influential figures and leading lights. A fund has been set up to create the ‘Ron Haylock Music Room’, which will be located at the Christel House School in South Africa. It links two of his passions – music and the charity set up by his friend and RCI founder, Christel DeHaan. The funds will pay for the music room and the purchase of more instruments and additional music teaching and tutoring. Organisers are hoping Ron’s friends and former colleagues around the world will contribute. Vivienne Noyes-Thomas, development director of Christel House Europe, said: “Ron Haylock was a special friend to many of us and the months since his passing have given us time to reflect on the man we knew – a man of such varied interests and experience.

Ron Haylock

“His enthusiasms in life included his alma mater the University of Nottingham, flora and fauna, trees and woodland, fine wines, fine dining and of course business in all its forms, including his work with RCI, ARDA, RDO and TATOC. “But perhaps, in the final analysis, the greatest of his many passions were for South Africa, for the work of Christel House and for music. “We’ve been thinking of ways to create a fitting and lasting memorial to this multifaceted man, and we believe our plans will honour his memory and commemorate those three overriding enthusiasms.”

News from the Timeshare Task Force Sue McNicol, director of communications & U.K affairs at the Resort Development Organisation (RDO), updates Sharetime on the latest developments of the Timeshare Task Force.

et up and funded by the Resort Development Organisation (RDO), the Timeshare Task Force brings together the RDO’s own enforcement operation, resorts, timeshare owners, consumer organisations such as TATOC and law enforcement agencies to achieve common goals Among significant results achieved by the Timeshare Task Force since its creation at

The room will feature a memorial plaque with the inscription The Ron Haylock Music Room. It will also carry alphabetically the name of every donor, regardless of his or her contribution. Donation amounts will not be recorded. Donations can be made via the JustGiving page at www.justgiving.com/ ronhaylockmusicroom or by cheque to First National Trustee Company, who have agreed to act as escrow agents. For more details contact Vivienne Noyes-Thomas on +33 562 09 26 72 or +44 (0) 7802 848216 or vnoyes-thomas@christelhouse.org or Liz Taylor, administration manager, Christel House Europe, on +44 (0)7974 671373 or etaylor@uk.christelhouse.org

He highlighted the fact that there had been distortion and mis-information about timeshare and that rogue businesses were not being properly investigated by the enforcement agencies around Europe.

the end of 2013 is the extensive engagement with the European Consumer Centre (ECC) Network, with a successful first meeting taking place in Spain in March, and three more planned for later this year. This first meeting has led to better cooperation between RDO, TATOC and the ECC Network, and the sharing of information on suspect and rogue businesses which are targeting owners and resort chiefs. There has also been the rapid resolution of a number of consumer complaints reported by the ECC, with Task Force mediation playing a significant role. Representing RDO and TATOC at this meeting, Chris Emmins (from the on-line investigation business Kwikchex which is responsible for the management of the Task Force), outlined to ECC representatives more about the Task Force.

Following the meeting, the ECCs confirmed that they will cease issuing warnings about ‘new’ timeshare products which are nothing to do with the industry. Delegates at the joint RDO-TATOC seminar held on March 7 this year - prior to the TATOC conference - had the opportunity to find out more about the Task Force, why it was created and its long-term benefits for timeshare owners and the industry. One of these benefits has been the creation of a website, timesharebusinesscheck. org, which lists companies on the Internet offering services to consumers and timeshare owners, and sets out whether they meet legal requirements as to disclosure and registration and so on. An additional responsibility of the Task Force is liaison with enforcement authorities, initially in the U.K., including the City of London Police which is responsible for the National Fraud Intelligence Bureau and Action Fraud. It is anticipated that there will be enforcement action, including arrests, imminently.

SHARETIME

Resort focus

Monte Carvoeiro Sharetime spoke with committee chairman David Arthur to find out how professional management and sales have put the resort back on track.

STATISTICS Resort completed in 1985 18 two-bedroom apartments 13 one-bedroom apartments Committee run and managed by Resort Solutions Sales and marketing services provided through CLC World

t is a sad fact that many resorts in Europe are running into financial difficulties – with some going into administration. However, not all cases are the same and, as the experiences of the owners at Monte Carvoeiro show, with determination, time and effort, it is possible to reach a successful operating conclusion. Algarve-based Monte Carvoeiro is located on a cliff top just outside the small town of Carvoeiro, about 55kms from the airport in Faro. The resort’s story begins in the early 1970s when a Swiss family built a luxury villa on the plot. Over the next few years, other villas were built and the development known as the Carvoeiro Club Villas was established. In the 1980s, based on its earlier success, the same Swiss family bought other plots of land in the Carvoeiro area. Included in this was a large tract of land situated on the hillside overlooking the Carvoeiro village. This became the location of the Monte Carvoeiro resort. Resort construction began in 1983 and was completed in 1985 with timeshare sales beginning before completion in 1984. The developer decided at this time to split the resort so 50 per cent of the units were sold as timeshare while the remaining units sold as freehold.

The timeshare comprises 18 two-bedroom and 13 one-bedroom units. The resort was styled as a typical southern Portuguese village with an attractive central square complete with fountain and pool. Sales were a great success and by 1989 over 80 per cent of the stock had been sold. Management was undertaken by a subsidiary of the developer and no committee was formed. Problems began in late 1990 when the developer experienced financial difficulties and by 1991 many of the resort staff had been dismissed. The owners made contact with the resort’s trustee company who were keen to get involved. Additional problems arose when the bank foreclosed on their loans and took ownership of the unsold inventory at Monte Carvoeiro and its sister resort Palm Gardens. An owners’ committee was quickly formed in accordance with the legal constitution and, over the next four years, meetings were held with the resort’s Swiss administrator, the bank and trustee. After a series of unfortunate events, the committee transferred control of the bank accounts to the trustee and managed to access the full list of owners. Eventually the committee was able to communicate with fellow owners and raise and collect management fees. In 1996, the administrator relinquished control of the resort to the owners who took over the management - no easy task. With outdated office equipment, no up-todate records and accommodation that had received no expenditure for six years, an injection of capital was urgently required. A special levy of £20 per week of ownership

was added to the management charge for two successive years. Unfortunately, this was not well received by owners who were suspicious of the resort’s management and led to many owners abandoning their ownership rights. However, a substantial amount of money was raised and from 1997, a successful programme of refurbishment was implemented. By 2000, the resort achieved RCI Gold Crown status. Rentals and sales of unsold and re-possessed inventory became the main focus and the management team worked to establish formal condominiums for the whole of the Monte Carvoeiro area. Unfortunately, things did not last: fast forward to 2008 and the resort was again on the verge of collapse. The committee was given only limited information on the resort’s desperate financial situation and there was a belief by owners that the resort was not being managed in accordance with Portuguese law. At this time, Resort Solutions was appointed as resort managers. They found a resort with out-of-date records, a legal structure that was not ideal, owners leaving in their droves and insufficient funds to get through the year. Costs were out of control and there was no prospect of sales to fund resort improvements. After significant re-structuring, financial planning and an owner levy to fund refurbishment, the resort is coming back to strength. In 2014, another nine apartments have undergone refurbishment and the committee

ISSUE 18 • Summer 2014 has an agreement in place with CLC World, which has financially supported the resort and purchased inventory in return for access to the sales and marketing opportunities. Today, the success of the resort is independent of sales success and continues to go from strength to strength.

What happened when Resort Solutions (RSL) took over the management of the resort? RSL took over in 2008 and immediately changed the billing year. It had been brought forward time and again to bring in much needed funds but there was never enough to get through the year. A new management structure was introduced and a legal, fiscal and corporate entity put in place. The assets of the resort had been at risk so RSL changed this to protect the owners and a levy was proposed to undertake a refurbishment programme. The success of this was dependent on achieving a high level of timeshare sales and unfortunately coincided with the financial crisis. As a result sales targets were not hit and so the refurbishment was divided into phases. In the first phase, 11 apartments were completed. A further three followed in 2011/2012. An additional nine units have just been finished due to the support of CLC World. As soon as it is financially viable the remaining units will be re-furbished. The resort is now generating a surplus, which will go towards funding a future refurbishment. Owners returning to the resort are placed, when possible, in the re-furbished apartments.

How has timeshare at your resort fared over the past five years?

How do you keep your product attractive to today’s holidaymaker?

Why did you choose a professional management company?

It is essential that you offer high quality apartments, so refurbishment is key. There must also be flexibility in the products offered.

We chose Resort Solutions because the committee simply did not have the time or resources to run the resort themselves. Furthermore, the resort had reached crisis point and the only other alternative was closure.

On its own, Monte Carvoeiro couldn’t do this. So teaming up with CLC World has made the product more appealing to all types of owner.

The recession and the issues with the euro have affected many European resorts. How has Monte Carvoeiro survived? The resort has weathered the storm by having professional management in place with a very tight control on budgets. By outsourcing accounts, management and so on, the resort has saved money – and survived. Until 2012, things at the resort were still very tight. We got by while searching for the right solution to the problems of our declining owner base and sales.

What are your plans for the future of Monte Carvoeiro? The plans are to complete the refurbishment and develop the resort and continue to improve occupancy. We want to look at ways to utilise off-peak inventory to generate sales leads.

The town of Carvoeiro

How has the marketing and sales approach changed over the years and how is this provided today? Is this proving successful and what advice can you give other mature resorts? The agreement with CLC World means the resort can offer a wide number of flexible products with a professional sales and marketing approach and full compliance with legislation.

With declining owner numbers, inventory was acquired by RCI and CLC World. This gives them much-needed and highly demanded occupancy throughout the year in the Algarve.

Importantly, through CLC World there is the ability to offer sales, finance and generate marketing leads. As a single resort, Monte Carvoeiro could not offer any of this.

As a mature resort, what are the main challenges you face – and how are you tackling these?

Refurbishment is often a balance between keeping your current owners happy while also making your product modern and appealing to a younger market. How have you tackled this?

The resort is also generating new sales with a small-scale on-site presence, selling CLC products backed by Monte Carvoeiro stock.

RSL’s experience of timeshare management, their knowledge of the industry and of what works elsewhere and economies of scale were all important factors. We also had the level of independence and transparency an external company can bring when dealing with the finances.

Apartment interior at Monte Carvoeiro

Over the last few years, occupancy is up as RSL has been creative with its inventory management.

As with many mature resorts in the U.K., we have an ageing owner base with a need for workable exit programmes. Partnering with CLC World has helped as its ‘Time Of Your Life’ product provides an exit route for those owners looking for a way out.

You are never going to please everyone – and design by committee never works. However, CLC World used the services of a professional interior designer and followed their suggestions. The design has a classic modern look and there is now Wi-Fi in all apartments.

The swimming pool at Monte Carvoeiro

As a resort, what are you most proud of? The turnaround in our fortunes since 2008 is a great source of pride – and the fact that we are now three-quarters through a complete resort refurbishment.

In light of the recent TATOC/RDO perpetuity seminar, what do you think the future is for timeshare in general? There are changes coming - potentially enforced by legislation - which may force all resorts, especially the small and independent, to become more flexible around the issue of perpetuity ownership. Resorts will also need to recognise the need to be more creative and inventive in bringing in new owners and giving older owners a viable exit route.

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Europe – Asia & Far East – Africa & Middle East – US & Canada – Caribbean & Bahamas – UK & Eire

TATOC CONFERENCE 2014 IN REVIEW

ISSUE 18 • Spring 2014

TATOC and RDO Seminar: raises curtain on problems TATOC CEO Harry Taylor addresses the seminar

hallenges facing Europe’s mature and owner-run timeshare properties came under the spotlight at a special TATOC and Resort Development Organisation (RDO) curtain raiser to the conference. The unique event, attended by 111 delegates comprising timeshare owners, committee members and industry professionals, addressed the most pressing issues facing resorts today – the complexities of perpetuity contracts and the ageing owner base. Harry Taylor, TATOC chairman and CEO, told delegates the seminar was essential. Timeshare was in the spotlight with both the U.K. government and Office Of Fair Trading (OFT) currently reviewing the impact of the European Timeshare Directive. “It is important that the consumer and industry meet to find common solutions,” said Taylor. Under particular scrutiny is the in-perpetuity contract (Perpetuity and Accumulation Act 1964), which, under English law, means a commitment to ownership for 80 years - and forever under Scottish law. The length of this commitment “is a source of concern for owners, whose circumstances have changed during the course of ownership, making the product an unviable holiday option,” he said. Because the U.K. was a primary source market for timeshare sales in Europe, it was crucial this issue is addressed. Taylor stressed the importance of being prepared to head off any unnecessary restructuring of the business model that may come out of the report. “The opinions of timeshare owners, committee chairmen and resort developers are important as we have the opportunity to make a difference. We will be reviewing the report and feeding back to the OFT,” he said. Geoff Chapman, TATOC director, highlighted the key challenges timeshare resorts are tackling. These include finding an exit policy that is suitable to all the parties involved, developing products that will appeal to new members, the perception of escalating management fees and the issue of collecting overdue fees through court action.

He urged delegates “to think outside the box” and have honest and practical discussions adding that the simple answer to the issue of ‘exit’ is ‘entrance’. “Finding a solution for all is a two-sided coin and a balance must be struck between those looking to exit and those wishing to stay in. Resorts cannot isolate each part when finding a solution but treat each part as a whole,” he told delegates. John Hughes, from Shakespeares solicitors, explained the concept of perpetuity and its legal implications for timeshare owners. Perpetuity, he said, was a term meaning a commitment without end and, while this is allowed under Scottish law, it is typically an 80-year commitment under English law. The original club trustee system, upon which most timeshare in Europe is based, made the product very attractive. However, many of the benefits of this type of ownership were now causing owners considerable concerns – many of which were unforeseen and out of the control of resorts. Hughes added that resorts could enforce the perpetuity commitment if it was clearly defined in the agreement. However, constitutions could be altered if at least 75 per cent of owners agree to the changes. On another topic, Sue McNicol, (RDO U.K.) told delegates that there were huge inconsistencies in tourism VAT rates across Europe. Rates ranged from seven per cent in France and Germany, nine per cent in Ireland and ten per cent in Italy and Spain. In the U.K. VAT rates had not been reduced to support the industry and remained at 20 per cent. Sue told delegates about the ‘Cut Tourism VAT’ campaign to provide a competitive level playing field, create up to 80,000 new jobs, make tourism in the U.K. more affordable and boost treasury income. Philip Broomhead, of First National Trustee Company, addressed delegates on the topical subject of exit strategies, providing delegates with an insight of the options available to them. It was not a one-size fits all solution, he said. Resorts in Malta, for example, had a 30-year lease before the property reverted back to the original developer. The ability to wind up constitutions was not replicated in the U.K.

He urged developers and committees to look at the options, which included early termination by selling-off surplus stock, and efficiently managing the remaining units; winding-up the club and selling all the stock; and the ‘white knight’ solution where successful developers take over the resort as an existing concern. He also suggested possible criteria for the adoption of surrender policies by resorts. Members who are aged over 75, unemployed, bankrupt or suffering from a serious illness or the loss of a partner were cited as examples. The industry was addressing the issue of exit policies and Broomhead confirmed that under a recent initiative all RDO members must offer an exit policy. Delegates were updated on the activities of the Timeshare Taskforce, which was established in 2013 to address issues that were ‘dogging’ the industry. Paul Gardener Bougaard, RDO chief, explained that the objective of the Timeshare Taskforce was to face issues relating to timeshare before they appeared in the media. The Taskforce plan is to identify and pursue fraudsters, assist consumers with advice and resolution services and enhance the experience and enjoyment of timeshare for owners and prospective owners. “This is important to all of us as timeshare is an easy target and the government can be seen to be acting. Our reputation is important. Bad media is bad for all of us,” he added. Reputation-management expert Kwikchex, working closely with TATOC, RDO and other agencies, leads the Timeshare Taskforce. Bougaard stressed the need to be driven by tangible results, for effective co-operation with partners, enforced refunds to timeshare owners, activation of law enforcement investigations and the effective pressure on business. “We will do what government bodies won’t. We will take disreputable businesses to court under private prosecutions and hopefully these will be picked up by the DPP,” Bougaard told delegates.

Did you attend the Seminar? TATOC would like to hear your views and suggestions. Please contact the TATOC office on info@tatoc.co.uk.

SHARETIME

TATOC CONFERENCE 2014 IN REVIEW

Still going strong after 25 years

ATOC exists to safeguard and enhance the timeshare holiday experience for existing and prospective owners and to be the voice of timeshare owners. “This mission statement is still valid as TATOC celebrates its 25th anniversary and our on-going work must be measured against this.” So said Geoff Chapman, TATOC director, who up-dated delegates on the recent activities of the association, based on the five-year plan launched in 2013. These included: • Recognition: The success TATOC has had to date with resorts, committees, and the industry and government bodies. “We have always been on the defensive, on the back foot, but no more. The industry in general is no longer suspicious and we have been very successful with government bodies. “But we still have more work to do with increasing our recognition by timeshare resorts and owners,” he added. • TATOC membership: Outlining TATOC’s awareness, publicity and recruitment campaign, Chapman told delegates: “The more members we have, the stronger we will be.” To date there are 465 individual members and 92 resort members. • TATOC Consumer Helpline: Detailing the costs involved with running TATOC and the TATOC Consumer Helpline (currently £164,000 per year), Chapman told delegates of the association’s wish to continue to be independent.

Taylor celebrates 25 years of TATOC

T TATOC director Geoff Chapman

clubs. The aim is to provide a ‘kite-mark of excellence.’

This was the message from TATOC chairman and CEO Harry Taylor as he welcomed delegates to the annual conference and kicked off the association’s 25th anniversary celebrations.

• TATOC affiliation: TATOC is keen to work with more of the ‘right companies’ – those that are willing to work within the TATOC code of conduct and code of practice.

Looking back over the association’s history he highlighted some key achievements including:

“We are proud of the our relationship with our affiliates. We sail in the same ship – the HMS Timeshare.”

• The appointment of the first secretary general, Norma Hartshorn, in 2001;

• Exit strategies: This continued to be a two-sided coin and it was important that decisions balanced the needs and requirements of all parties. A timeshare directive review and OFT project are underway looking at the effectiveness of the European Directive. The aim of the directive review is to assess the need for specific additional consumer protection in the timeshare sector, including newly emerging commercial practices. • TATOC promotion: The promotion of TATOC continues with 185,000 visitors to the TATOC website in the previous twelve months. Other forms of promotion include social media with TATOC’s Facebook page and Twitter accounts and through the Sharetime magazine and supporting website (www.sharetimemagazine.com). “We have achieved a lot but there is still much to do,” Chapman told delegates. “Together we will make a difference.”

• The first TATOC conference in 1999;

• The development of VOICE in 2005; • The input by TATOC in 2007 in to the development of timeshare legislation; • The launch of the TATOC consumer helpline in 2008; • The development of TATOC’s constitution, strategy and image in 2008; • The launch of Sharetime magazine in 2009; • The creation of the TATOC resort accreditation programme in 2009; • The launch of the TATOC codes of practice and conduct in 2010 and 2011; • The first meeting of the panel of experts chaired by TATOC’s Harry Taylor in 2010; • The registration of the TATOC logo as trademark in 2012; and • The launch of the second Five-Year plan in 2013 Taking to the stage previous TATOC board directors, Bob Shepherd, Philip Johnston, David Eastburn, Jan Tilley and Fred Crouch were asked their thoughts on TATOC past and present. They explained that when TATOC was established in 1989 the remit was to help committees as they worked with developers and became responsible for the management of their resorts.

Alternatives forms of funding such as owner donations and charitable status were being considered. • TATOC accreditation: There were now 37 accredited resorts and 30 of these will now undergo their three-year follow up to ensure standards are being maintained. In 2014, TATOC will be encouraging accreditation for all resorts, re-sale companies and, in the near future, points

ATOC has come a long way from its humble beginnings 25 years ago and is now a recognised brand worldwide providing assistance, information and advice to owners, government and the media.

There was great antipathy from the industry initially but now the two parties worked together for the benefit of all.

TATOC CEO Harry Taylor

As for the future, they all believed it was essential that resorts get their owners involved and bring new blood on to committees, too often run by long-term chairmen and members.

TATOC CONFERENCE 2014 IN REVIEW

TATOC Consumer Helpline: a year in review

ow many delegates who attended the last TATOC conference took the message about cold calling back to their committees and members? If not, why not? So asked Mark Caldicott, manager of the TATOC Consumer Helpline, who updated delegates on the activities of the facility in the previous twelve months. Key statistics included: • The Helpline received 6,075 telephone calls and 1,216 e-mails; • Re-sale enquiries down by 16 per cent; • Re-sale cold calling enquiries down by 36 per cent; • Complaints about these activities down by 30 per cent; • Exit route enquiries up by 20 per cent; • Take over enquiries down by 21 per cent; • Bogus legal firm enquiries up by 30 per cent; • £1.1 million reported as lost to unscrupulous companies including rogue re-sale companies, bogus legal firms and take-over offers; and • TATOC provided assistance which should ensure £911,000 can be recouped. The Helpline had also worked closely with Kwikchex and the Timeshare Taskforce providing data and information to help owners get their money back. “But we can only do so much and it is up to committees to keep their owners informed of our activities, scams and the services we offer.” Caldicott urged delegates: “Together we can – but resort committees and management companies need to help push the TATOC message – do not deal with cold callers.”

Best days yet to come If everyone is moving forward together, then success takes care of itself.

RDA president Howard Nusbaum quoted these words of Henry Ford as he looked at the increase in opportunities for the timeshare industry on a global basis. He began his presentation with some present-day statistics: There are 5,316 resorts worldwide, 71 per cent purpose- built for timeshare; 56 per cent are mixed-use developments.

TATOC Helpline manager, Mark Caldicott

ISSUE 18 • Spring 2014

The majority of resorts are in the U.S. and Europe but there are good numbers in Africa, Asia, Australasia and Central and Southern America. There are 64 properties in development. Of the 497,000 apartments available, twobedroom units remain the most popular (41 per cent of all stock).

re-sale market in place. It is important for resorts to work with quality re-sale companies. Legacy resorts: This is not a good term as many are fabulous, with great management overseen by HOAs, good value management fees and reserves. However, there are some that are not so well run and there is the belief that committees are just in place to keep management fees down. “You cannot pinch pennies to prosperity,” warned Nusbaum, who advocated the right fees rather than high fees. While older resorts do have their challenges, it is the industry’s responsibility to look after the pioneers. Emerging products: Nusbaum explained the relationship between ARDA and ARDAROC (Resort Owner’s Coalition) which fights on behalf of owners on a federal basis.

In 2010, sales volumes reached $14.12 billion. The highest maintenance fees are paid in the U.S.; Middle Eastern resorts charge the lowest fees. Occupancy worldwide is 76 per cent but there are huge differentials based on location. Hawaii, for example, has occupancy rates that are double traditional hotels. “The prepaid nature of timeshare ownership means an owner is more likely to use their weeks.” Timeshare resorts are also addressing rental with 14 million rental nights generating an average of $148 per night. There is now a shift to realising this activity is helpful. Timeshare ownership penetration rates are on average 1.8 per cent – with Europe at 2.5 per cent and the U.S. at 6.4 per cent. Weeks-based products are still the most popular form of ownership while one third of owners hold timeshare points. “In September 2008, the industry was hit by a big crisis. Finance and credit stopped and sales volume was cut by 50 per cent immediately,” Nusbaum told delegates. Today the industry is more about good management than playing banker. Challenges and opportunities vary by region. He identified the key areas: Secondary market: it is insane to sell inperpetuity products and not have a strong

ARDA president, Howard Nusbaum

While both bodies have separate boards (and bank accounts), they have more in common than they have in contrast and work together against the government on tax and legislation issues. “Both parties keep the end consumer in sight,” Nusbaum added. Looking toward the future, Nusbaum said he believed “the best days for timeshare are coming.” The average age of new purchasers is 44 and the stigma attached to timeshare has gone. These new millennials understand that life is not just about work and believe in being co-creational. Social media and new technology are crucial in reaching new customers with interactive presentations and products. Old-style timeshare presentations no longer work for this market.

SHARETIME

TATOC CONFERENCE 2014 IN REVIEW

BuyATimeshare’s Steve Luba with TATOC’s Harry Taylor

Dr Liam Fox MP

Celebrating 25 years are Philip Johnston, Jan Tilley and Fred Crouch

Melfort Village’s Christine Roberts with Work International’s Peter Vanderhorst

DAE’s Pat May, Vista Verde’s Roger Goodwin, Sheila Goodwin, TATOC’s Harry Taylor and Grand Holidays’Kim Smallwood

Saturday night entertainment

Ambassador Pat May

2014 Seminar and Conference in pictures Geoff Ramm

Silverpoint’s Mark Cushway, Nexus’ Jerry Graber and HMC’s Ron Howell

DAE’s Paula Vickers and Pat May with TATOC’s Harry Taylor

Sunset View’s Lyn and Peter Harcourt

LiveShareTravel’s Sarah Lee with RCI’s Lorraine Karabin

Cremades & Calov-Sotelo’s Alex Radford with Interval’s Tania Burnstock

TATOC CONFERENCE 2014 IN REVIEW

CLG’s Thea Bormann with RSL’s Vicky Dubois Sandy

TATOC’s John and Edna Woodward with Club del Carmen’s Peter Scott and Phil Morris (centre)

RCI’s Ruth Webb with Jacqueline Kerr

Alpine Club’s John Davey with Sunset Harbour’s Barbara and Mark Harris and Cromer’s Dennis and Jean Martin

ISSUE 18 • Spring 2014

Perspective’s Paul Mattimoe and ARI’s Alain Carr

TATOC’s Harry and Babs Taylor

Thurnham Hall’s Roger Hailwood and Mike North

The singing chef

Ian Kerr, Harry Taylor, Jacqueline Kerr, Patrick Duffy, Babs Taylor and Adam Taylor

Confused About Timeshare’s Mark Bell with DAE’s Wendy Holey

Merlin’s Mike Ashton, Kilconquhar’s Jim Vance and Glenmor’s Nigel Roberts

Regency’s Eivind Steffensen and CLC World’s Leslie McCann

Cameron House’s Richard Coles with De Cotta Law’s Sandra Wrightson, Monte Carvoeiro’s Bob Shepherd and partner, Nexus’ Jerry Graber and Silverpoints’s Diana Aitchison

RCI’s Jonathan McNeiliie and Vicky Funnell

Club Le Bristol’s Ken Silverthorne with Resort Solutions’ Brad Revell

First Resorts’ Charne Webb Smith with CLG’s Shaun Lamont and First Resorts’ Tim Spencer

SHARETIME

TATOC CONFERENCE 2014 IN REVIEW

RDO chairman, Calvin Lucock

Together we can - and will

“

There’s a common understanding and commitment from all RDO members for the need of drastic changes and internal commitments to drive our industry forward.” This was the message from RDO chairman Calvin Lucock, who told delegates the organisation is collaborating with owners’ committees and resort developers for changes within the industry. The organisation works to support the industry, avoid and handle negative publicity and support sales activities. In a presentation entitled ‘Together we can - and will,’ Lucock explained how the organisation had canvassed members to find out what they wanted from the RDO and what changes they would make. Results indicated that drastic change was required and an action plan was implemented that has seen the organisation issue a new mission statement, vision and values. Members now make a commitment to full compliance to all European legislation, to have no dealing with fraudulent companies and to provide exit strategies for their owners. “All the changes made to the RDO were consumer driven which is why the RDO’s relationship with TATOC is so important,” Lucock explained. One element of the strategy is the successful implementation of reputation management, fighting the fraudsters and supporting enforcement. “If we know who the scammers are, why can’t we name and shame them?’” asked Lucock, as he shared the names of six companies who were Europe’s biggest offenders. The organisation has also implemented a media programme resulting in a doublepage spread in the U.K.’s Sun newspaper and regular resort visits by journalists to learn more about timeshare.

Together we can T he conference theme -Together We Can - is a philosophy shared by Diamond Resorts, according to Patrick Duffy, the company’s chief experience officer. “Together we can, individually we can’t,” Duffy told delegates. When Stephen Cloobeck bought Sunterra in 2007 he found a company with a “toxic feeling”. He travelled to each resort and office, often hearing the words ‘no, we can’t’ and ‘no, we won’t.’ After cleaning up the business and answering the issues, he implemented a training strategy in seven languages – the Meaning Of Yes. The training strategy covered all members of staff who worked together and created dynamic change throughout the company. It simply meant exceeding expectations and going one extra step to deliver the difference daily and with delight. The focus is providing what 600,000 owners and guests want from their timeshare holidays, adding value at all stages.

Can an old dog learn new tricks?

his was the question addressed by Alain Carr, president of the U.S.-based CARE organisation and executive president of American Resorts International. ARI, he said, had two legacy resorts located in Austria and several thousand owners based in the U.S. who use their ownership primarily for exchange purposes. Carr shared with delegates the many challenges facing the business today. “Previously, our focus was on sales. We believed that one product would be suitable for everyone and that everyone travelled the same way.” But customer values had changed. When sales started in 1984 owners considered renting holiday accommodation a waste of time; they wanted to commit to going away for a week or two a year, a title and deeds were everything and they wanted to leave the ownership to their children when they died.

TOGETHER WE CAN

“It revolutionisedCelebrating the hospitality 25 Years industry,” R added Duffy. In July 2013, Diamond Resorts International was taken public and quoted on the U.S stock exchange.

CONFERENCE 2014

“They loved it. We had taken a traditional timeshare company and focused on holidays. Sales have increased by 57 per cent. There are no new products, but we’ve created opportunities and marketing tools that are talking to our current customers. We understand what they want because we listen to them.” The past few years had been difficult economically for all industry players, including Diamond, and hard decisions had been made. Of particularly interest to Duffy is the make-up of timeshare committees today. “Many are on the committee for 15 to 20 years and for whatever reason this is not productive. Are they adding value or just showing up?” He urged committees to listen to the presentations and the advice given at the conference and “go back to your committees with action-ables.”

Today, owners believed they can rent just as easily as own, they want more flexibility, they don’t want to be tied to anything and they do not want their children to have the worry of taking care of the ownership when their parents died. By listening to their owners and industry friends, ARI is now implementing some major changes to its operation. “All eyes are on the consumer and we have created a variety of products that suit buyers in the various stage of life. Importantly, we have built in exit strategies for consumers,” Carr explained. “Last night someone here told me they were ‘just a committee member’. There is no such thing – you guys are why we’re all here.” ARI has adapted its approach with the development of education programmes, making sure its products are marketed correctly, putting the focus on service and developing points-based products, shorter term options and try-before-you-buy programmes. “It’s a new day for timeshare resorts, even legacy destinations like ours. We realise that we must adapt or die he said.

TATOC CONFERENCE 2014 IN REVIEW

ISSUE 18 • Spring 2014

What advice can you give today’s resort committees? I would tell them to attract and focus on the younger generation – and then get these younger owners on to the committees.

Is it about the holiday experience over the accommodation?

Moderator Robin Mills chats to Frank Chapman

An interview with Frank Chapman

imeshare veteran and consumer champion Frank Chapman was invited to review his career by conference moderator Robin Mills and forecast future trends for the industry.

As well as his timeshare interests, Frank was responsible for the development of Champney’s health resort. He also formed the medical research company Biocure and is a shareholder in Acell, the blast and ballistic company.

Frank Chapman’s timeshare career began in 1974 when he purchased two hotels in Scotland - Loch Rannoch Hotel, in the Highlands, and Forrest Hills Hotel, in the Trossachs.

In March 2012 Frank was awarded the ‘Lifetime Achievement’ award by the American Resort Development Association.

These hotels catered to the tourist trade but operated only from April to October. They were upgraded and construction undertaken of ‘multi-ownership lodges at Loch Rannoch. Frank had not heard of timeshare but thought it a novel idea that would enable him to open his hotels on a year-round basis which is why he called it multi-ownership. His first lodges at Loch Rannoch opened in 1976: timeshare had arrived in the U.K. The concept was extremely successful and construction started at Forrest Hills the following year. In 1978 further developments took place at Plas Talgarth, in Wales. In 1982, Frank sold his company “Multi Ownership and Hotels” to Barratt Developments and stayed as managing director until 1988. In 1987 he was instrumental in the founding of the Timeshare Developers Association and was chairman of the Timeshare Council, the U.K.’s arm of the OTE (Organisation of Timeshare in Europe) and now the RDO (Resort Development Organisation) today. He is also a board member and sits on the Legislative Council. In 1991, The Bank of Scotland and Frank become equal partners in Clowance resort, in Cornwall. In 2002, Frank bought the bank’s share and carried out extensive re-development. He sold Clowance to Seasons Holidays in 2006.

In September 2012 he bought Highbullen Hotel Golf and Country Club in Devon.

How did it all start? I was looking for woodland and forests to purchase and came across the 300-acre property at Loch Rannoch. The woodland was no good for my needs, but it was a great location. I bought the hotel and the estate and thought this could be used for lodges.

How was it sold? In the early days, there was no bad publicity and no issues. We hadn’t heard about the timeshare concept. We went to the RCI and II conferences and decided to call the product multi-ownership. It was then that we were told it was called timeshare in the U.S.

Why was there no bad publicity? We were very aware of consumer protection and asked solicitors for advice when we were setting up. That is why we established a trust with the Bank of Scotland and also a management company. We should have patented the concept!

You are known as a champion of consumer causes – could the industry have done more? I set up the original Timeshare Developers Association to help protect consumers. But then the U.S.-style sales techniques came over and things changed.

Yes. This is important for cash strapped resorts that can make the holiday experience great for their owners and guests at little cost.

It used to be a battle to bring the consumer and industry sides together. What should be their priorities? I have always worked through the owners’ committees from the earliest stages, as it is easier to sell changes to owners.

You once bought a cruise liner to turn into a floating hotel – what happened? Five stakeholders bought the Saga Ruby with the aim of mooring the boat in London. However we were let down by mayor Boris Johnson and the ship has been given to the Chinese.

You are now working on plans for a new golf course. Will there be timeshare? Yes, we might add a timeshare element – but not fractional as this has not been successful. Chapman then answered questions from delegates:

Howard Nusbaum, ARDA: What is the biggest difference in the industry from the 1970s to now? We forget or are just not able to get across how many people we have made happy by providing great holidays. It is still a great and fun business to be in.

Paul Gardner Bougaard, RDO: What are your thoughts on the VAT rate on U.K. tourism? The high VAT rate is tragic for the U.K. We can’t compete and yet a reduction in the rate has been proven to work. Many businesses are going out of business and it is depressing that the government doesn’t understand this.

Robin Mills: There is currently a groundswell against perpetuity. Do you agree? No, perpetuity is the right product to sell allowing people greater value as long as owners are able to walk away.

SHARETIME

TATOC CONFERENCE 2014 IN REVIEW

The ‘crystal ball’ panel Howard Nusbaun, Mark Cushway, Harry Taylor, Phil Watson, Calvin Lucock

CL: Remember our obligations as holiday providers and offer re-sales services.

ntroduced by TATOC chairman and CEO Harry Taylor (HT) as “the best panel ever,” the Crystal Ball panel comprised: Howard Nusbaum (HN-ARDA), Mark Cushway (MC- Silverpoint), Phil Watson (PWWorldwide Timeshare Hypermarket) and Calvin Lucock (CL-RDO).

back and ask them what they want to do next.

3 What can older resorts do? Robin Mills, moderator

Patrick Duffy, DRI: Committees should develop a concise action plan and assess what has been achieved.

The panel took questions from delegates covering a wide range of topics.

PW: We’ve seen an increase in the re-sales market in the last two years and are even seeing them in studios in low season weeks.

Dimitris Manikis, RCI: Employ professional management.

1 Are the RDO and TATOC really integrated, can’t there be more dialogue? Rioma Cominelli, First Resorts

Questions and comments from delegates:

Paul Mattimoe, Perspective International: Concentrate on positive press.

Chris Sheldon, Interval International: Sizeable developers are trying to offer solutions to independent resorts. Yet, for smaller resorts they see it as supping with the devil but developers are not that bad.

Ian Goddard, Richvale Resorts: Identify two challenges, find solutions for these and identify one person who can implement them.

They have successful sales teams, but very happy owners – if they were that bad they wouldn’t have happy owners.

Stuart Lamont, First Resorts: Committees should undertake an assessment of the resort and face their problems. There should be no selling of units.

HT: TATOC often gets criticised for being too close to the industry as it receives financial help to operate. We had to convince government that the two organisations are separate. TATOC was once considered a pariah by the industry, but we know that we need to keep the link. Ideally, we need to push forward and become more of an ARDA-ROC (Resort Owner’s Coalition). However, to do so earlier would have been wrong. Today, unity is our strength. We meet more regularly but do not share committees; logistically that wouldn’t work. CL: Both organisations acknowledge there is a long way to go and many issues to fix but changes have been made and things are different. We, as an organisation, had to clean up our own house first. Everyone is positive about TATOC and the development of a single mouthpiece would be helpful. MC: RDO is focused on legislation, while TATOC is consumer focused. It is important that the RDO listens to TATOC and its supporters. It does make sense to have representation on each but the two can’t merge. HN: Integration is easier in a private company but not so for TATOC with its diverse views and interests. 2 What happens if resorts don’t like the results of the TATOC ‘health check’ service offered for free to member resorts; what happens afterwards? Robin Mills, moderator HT: The health check team comprises a solicitor, timeshare marketer, accountant and trustee. Three have been carried out in the past year and once sent to resorts the plan is to go

MC: The health checks are lifeboats for resorts and they need to be willing to get on board.

Dimitris Manikis, RCI: There are a lot of people here who care, including other resort developers. I’m pretty comfortable when we suggest a developer to a resort that they are able to help and that you can trust them. I think lack of trust between the two parties is the main problem. Ian Goddard, Richvale Resorts: I bought two resorts in Spain last year that were 26 and 27 years old. I took over the management company and we’re already a third of the way through a five-year business plan. The answer is you can revive older resorts – you have to make the decision that you can do it and the first thing is you have to change the focus of the business. We’ve done that by just changing the way we run the resort.

Questions and comments from delegates:

Francis Taylor, DAE: Develop new products attached to re-sale stock. Chris Sheldon, Interval International: Smaller resorts should talk to larger developers.

Thanks from Christel House

hristel House has thanked TATOC and delegates for their generosity at the Saturday night gala dinner at the recent TATOC conference.

4 What should be the key objectives of resorts and the industry today? Robin Mills, moderator

Delegates raised over £3,000 with a raffle of superb holiday prizes ranging from holidays in Dubai and Cornwall to bottles of wine, a Tesco Hudl tablet and even a steam iron.

HN: The golden days of our industry are ahead. Using the services provided, even legacy resorts should look at best practice when it comes to resort management.

Christel House, which is the association’s charity of choice, provides education and support for children at Christel House schools around the world.

MC: Agree with the committee to take action. PW: Ageing committees should accept the offers of help and wake up.

All the funds raised will be used directly by the schools as administration costs are covered by the founder of the charity, Chistel DeHaan.

TATOC CONFERENCE 2014 IN REVIEW TATOC ambassadors – working together for TATOC

ISSUE 18 • Spring 2014

Why I love my timeshare:

Holidays to celebrate

he role and remit of the TATOC ambassadors was the subject for senior TATOC ambassador Mike Ashton, who gave delegates an outline of the programme.

In August RCI members Jeff and Marina Lang will have been married for 40 years and are off to Hawaii to celebrate. Here they share what the timeshare experience has brought to their family.

Based in the U.K., Spain and the Canary Islands, ambassadors worked on a voluntary basis without a budget. They were chosen for their specific skills and established networks and have a proven ability “to get things done”.

ur wedding was on a lovely sunny day in August. We had two bridesmaids – Jeff’s sister and my cousin, and Jeff’s friend was best man. We didn’t have a lot of money back then, so our honeymoon was a long weekend in Blackpool!”

All are fully trained on TATOC’s mission and activities and have wide industry knowledge. The ambassadors’ objectives are: • To promote TATOC on a global basis; • To promote the benefits of membership and affiliation; • To truly understand members’ needs; • To truly understand what affiliates have to offer; • To facilitate relationships; • To develop an on-line resource for members; and • To bring new faces to the conference Delegates were introduced to the ambassador team comprising Diana Aitchison, Silverpoint; Pat May, Dial An Exchange; Katrina Pascazio, DeVere Luxury Lodges; Sandra Wrightson, DeCotta Law, Spain; and Vicky Funnell, RCI. Diana Aitchison explained that the challenge is to get the committees and industry to communicate and work together and the ambassadors would assist. “However, if committees do not wish to approach a developer directly with questions, they could use TATOC and Harry Taylor as a filter and place the relative question through them,” she explained. “There are always ways that we can make it work and work together.” Pat May added that while the ambassadors all worked for different companies they were all working to promote TATOC and the work the association does, adding: “What is most important is that we’re all impartial.” Sandra Wrightson explained that if resorts are looking for professional help and assistance, they can now contact the ambassadors who would be able to point resorts in the right direction.

Jeff and Marina Lang are now making up for the lack of travel adventure in their early years: they’ve booked a two-week RCI exchange in Honolulu and Big Island in Hawaii to celebrate their Ruby Wedding anniversary. They f ly off in September. Says Marina: “Jeff’s friend recommended timeshare to us, and we have never looked back since purchasing two weeks at Las Brisas, in Lanzarote. Timeshare allows us to holiday how we want, to relax and go at our own pace.”

Lifestyle choice

The Lang’s wedding in 1974

pick just one!” said Jeff. The couple didn’t want the kids to miss out on their annual holiday break. “The children are all grown up now, so we purchase RCI Guest Certificates so they can all have a holiday, too. Sarah visited Canada in May, Alex went to Tenerife in March and Jenny will be going to Cornwall in August with our two grandsons. Our son Phil is still planning his trip,” said Marina.

When their children grew up, the Langs decided to purchase a week at Orange Lake Resort, in Orlando, Florida, as a lifestyle and value choice.

“We consider our timeshare as a holiday pot for the whole family and it has brought us the world, not just for Jeff and me, but our kids, too – it’s amazing!”

What was their most memorable holiday to date?

The Langs are no strangers to holiday celebrations: “Our daughter Sarah is getting married in Orlando next February, so we booked two apartments for 12 of us through RCI. Our timeshare is being used for all kinds of celebrations. We visited Cape Town in South Africa for our 30th anniversary and the food was just fantastic,” she added.

“There have been so many. South Africa was stunning. The wildlife was incredible in Canada and we enjoyed scenic walks in Vancouver across some breathtaking landscapes, including the Rockies. “We loved California and seeing the Hollywood sign, the walk of fame, and we enjoyed some retail therapy in Carlsbad and visiting the beautiful city of San Diego. “We have loved it all, so we struggle to

Aside from their up-coming holiday, Sharetime asked what their plans are for the day of their anniversary. “We don’t know. It’s all a big surprise which the children are organising for us.”

For more information on RCI visit www.rci.com

Clockwise from left to right: The Langs in Florida, Lake Louise in the Rockies, Boulders Beach in Cape Town, South Africa, Old Town in San Diego and Cape Point, South Africa.

AROMA,

A Concept That Evolved Out Of Change

The Club Leisure Group is proud to announce that their latest product, AROMA, will be made available to interested parties in the field of sales. Already masters in the realm of timeshare and points club products, the Club Leisure Group felt that although timeshare was the best method of pegging holiday costs over the past 30 years, flexibility has become limited, even with the advent of the exchange organisations. It was evident that a new product presence was needed which had all the positive attributes of timeshare but none of the negatives. This led to the formation of AROMA in December 2010. AROMA falls within the sphere of the timeshare industry but it is not timesharing in the true sense. AROMA members receive certain rights that enable them to holiday in many destinations throughout the world. Members of the club do not acquire individual timeshare weeks but purchase holiday points. Although this may seem very similar to other points schemes, the four distinctive selling points of AROMA ensure that the product practically sells itself: • With AROMA, members enjoy more than one free exchange. • AROMA is EU compliant. • All approved marketers have access to credit card facilities and consumer finance. • AROMA is the ideal exit point for timeshare owners who have grown weary of their timeshare product. AROMA has a unique facility allowing timeshare owners to trade in their timeshare in 40 Perspective Magazine Europe July-September 2012

the name of the club for points to the value of the week - a useful option as needs change. For example, a young, newly married couple bought an out-of-season studio week at a cost of possibly £5 000, while a family man acquired a large, three bedroom unit in peak season at a cost of £30 000. Ten years later, the couple now has three children and the other family’s children have all left home. Ideally, the two families now need to swap weeks with each other. With AROMA, the family with a studio unit would be allocated points amounting to the current market value of their unit and they could purchase additional points which would be added to their trade-in, enabling them to holiday during school holiday periods. The couple with the three-bedroom unit would have a large number of points, enabling them to take four or five out-of-season holiday weeks. Alternatively, they could cede points to their children or surrender surplus points back to the club. In February 2011, a new directive in respect of timeshare and long term holiday products came into force around Europe. This directive has been welcomed by AROMA as it finally allows for a level playing field within the industry. Sales have slowed down considerably as many entities struggle to adapt, however AROMA believes that this legislation is exactly what was needed in the industry and has always been a firm supporter of considerable consumer protection. Thus, AROMA finds itself in a strong position to become the Club of our time. The industry is moving more and more towards the points system and the majority of the sales within the timeshare industry are on a points basis. Club Leisure Group, pioneer of the points system, has shown phenomenal

growth over the last 25 years and introduced many exceptionally well-received products. The AROMA system is the most flexible holiday option available and allows members to holiday anywhere and anytime, in any size unit. Each week of holiday accommodation is valued on a points basis - from week 1 to week 52 throughout the year, resort by resort. The number of points required for each week depends on the time of the year, the quality of the resort and the number of bedrooms per unit. No restriction is placed on the number of points the member may acquire and the member may purchase additional points at any time. The asset made up of holiday accommodation owned by the club represents the total of the members’ points in the club. Once the member has been allocated points he can book a holiday. AROMA’s policy has been to acquire holiday properties during sought after holiday periods and a high percentage of the points held are in peak periods. The system can easily be compared with that of a bank, where you deposit money into an account and it continues to grow until you withdraw it, as and when you need to and however much you need. Each year you are re-credited with the number of points that you have acquired. The points are held to the credit of the member’s account and can be accumulated for up to three years. At any time the member can make a reservation and his account will be debited with the number of points required for the particular unit in the particular resort of his choice. For convenience and flexibility, AROMA has no equal in the international market.

SHARETIME

Affiliate news

Study to track on-line behaviour of U.S. timeshare owners

eading media business, Perspective Group, has announced that its Intuition brand marketing service is set to track and analyse on-line conversations by U.S.-based timeshare owners on behalf of the National Timeshare Owners Association (NTOA).

on each of these websites over a specified period to show shifts in trends and activity.

The NTOA will use the service to provide a study detailing the most commonly discussed topics among timeshare owners.

The National Timeshare Owners Association represents timeshare owners across the United States. It proactively seeks opportunities to promote the timeshare industry’s continued growth and positive public image, while giving a united voice to the nearly eight-million timeshare owners in the United States.

The study will track the balance between positive and negative conversations, listing the main causes of complaints, the most praised attributes and most talked about topics.

“Being able to access this level of information about current consumer trends and emotions is both incredible and invaluable to the NTOA and its members,” says Gregory Crist, chairman and CEO.

Then, through detailed analysis, it will outline the geographical origins (by state, city and so on) of the majority of comments.

“We plan to provide a factual document from real time data that will help us understand, as an industry, how we can improve upon our products and services, while also better understanding the up-tothe-minute concerns, desires and levels of product knowledge of timeshare owners.”

The report will also determine the most common websites used to discuss timeshare ownership, and the rise and fall in volume

Resort Solutions enjoys refurbishment success

with an indication of what could be achieved if there was a one-off contribution to the cost. The Lakelands has loyal owners who are passionate about their resort, enjoy very low management fees and generates significant revenue from renting out non-timeshare apartments. However, a small contribution was required by owners to cover the cost of a full refurbishment.

TATOC affiliate Resort Solutions recently enjoyed success in this area at one of their managed resorts, The Lakelands, at Ambleside in the Lake District.

Resort Solutions has refurbished one of the apartments in the new style providing owners

Fun walk at CLC World resort

ennie and Paul Hunt, owners with CLC World Resorts & Hotels, organised a fundraiser for leukaemia and lymphoma research while on holiday at the company’s Apollonium Spa & Beach Resort in Turkey. The cause has special significance to them as they had lost a friend to the disease, and they were thrilled with the turn-out and support from other guests, freehold owners, resort staff who helped with the organisation and CLC World, who donated a holiday voucher. At a quiz night, the holiday voucher was auctioned for £300 and presented to Roger and Julia Baker, also property owners at Apollonium, by Cenk Turanli (director, Turkish operations). The sum they offered was added to the 1,168 Turkish Lira raised from the two events. Mert Doruk, Apollonium’s general manager, said: “It was a great way to raise money for a very worthwhile charity and we were delighted to help out with organising the events. Everyone enjoyed themselves.”

Company owner Mark Bell explained: “Our goals with the website were to make it faster, easier to navigate and simpler for our team to manage and update. Most of all, we wanted to help our clients get to know us better and be able to view timeshare re-sale ownership with ease.”

hile owners and committees understand the importance of regular resort refurbishment – and want to stay in comfortable and modernised units - there is debate on how this should be achieved.

Vicky DuBois Sandy explained: “At the resort’s AGM in May the vote on a member contribution to a full refurbishment programme was passed by 84.7 per cent. I think this is one of the highest shows of support ever recorded with a significant percentage of the ownership voting.”

The fun walkers at Apollonium

Confused About Timeshare re-launches website

imeshare re-sale specialist Confused About Timeshare has launched a new-look website with a fresh design, page layouts and features making user-interaction a breeze. A sharp new company logo has also been included.

Timeshare buyers are offered an impressive search facility while owners wishing to sell have personal advert pages to promote their timeshare ownership. There is also a range of on-line videos to assist them in their decision to sell. Timeshare rental customers can browse timeshare holiday availability with detailed information pages on resorts that are available. Mark added that his team are extremely excited about the new website and have already received an excellent response from clients.

ISSUE 18 • Summer 2014

Silverpoint wins prestigious ARDA award The digital members pack – which comes in the form of a mobile tablet - was developed to replace the reams of client paperwork and brochures with a seamless and interactive introduction to the Silverpoint range of products. New members can now explore their purchase in a multi media format including videos and links to the company’s suite of websites - and access all their paperwork in one convenient place.

Silverpoint’s Markus Deutsch and Mark Cushway

ilverpoint Leisure carried off a major award at the ARDA 2014 conference in Las Vegas.

ARDA (the American Resort Development Association) represents the U.S. vacation ownership industry and the convention is the largest event in the industry’s calendar. Its annual ARDA awarde event (known as ARDYies)) gives recognition to the outstanding achievers in the industry.

The tablet also comes pre-loaded with the SilverpointGo Travel Guide app which offers a wealth of resources for the modern traveller including restaurant guides, location maps, language translators, currency converters and information on just about every country in the world. The pack incorporates the Silverpoint News Widget – an innovation designed to enable the company to communicate directly with customers and update them with the latest news, events and special offers. Silverpoint’s chief operating officer, Diana Aitchison, said: “We’re very proud to have done so well in what is an extremely competitive category.

Tenerife-based Silverpoint – the only European company to receive recognition this year – won the hotly-contested new owner/member package category with its innovative Silverpoint digital member pack.

“This level of innovation and investment is testimony to the company’s commitment to creating the very best products it can and to attracting a new generation of owner”.

The resort was also a finalist in the mobile application (app) category with its SilverpointGo Travel Guide.

The SilverpointGo Travel Guide app for both iOS and Android devices can be downloaded for free at the SilverpointGo website.

Affiliate news Group receives on-line recognition

iamond Resorts International has received recognition and praise from leading travel review websites for delivering an ‘exceptional hospitality experience’ at resorts worldwide in 2013. Diamond’s branded and managed resorts around the world have received exceptional customer ratings and been recognised for excellence by various reputable travel review sites including Expedia.com, TripAdvisor.com and Booking.com. Receiving a score of 9.0 or better, some of the highest ratings were given by Booking. com to the following European Diamond resorts: Jardines del Sol, Royal Sunset Beach Club, White Sands Beach Club, Wychnor Park Country Club, Woodford Bridge Country Club, Thurnham Hall, Pine Lake Resort, Cromer Country Club, The Kenmore Club and East Clare Golf Village. According to David F. Palmer, president and CEO of Diamond Resorts International: “As a leader in the hospitality industry, our goal is to provide vacations of a lifetime for our members, owners and guests. “We want our members, owners and guests to know they will consistently receive excellent service, an exceptional guest experience and the vacation experiences they deserve.”

Diamond Resorts and Earth Day 2014

iamond Resorts has continued its commitment to global sustainability efforts by providing ‘earth day’ activities to its members, owners and guests at its branded and managed resorts. All events and activities throughout the week were designed to promote awareness of environmental issues and contribute toward a more sustainable future. In keeping with tradition, Diamond once again engaged in a worldwide initiative to

plant a tree at all branded and managed resorts. Ranging from orange, lime, lemon, peach and mango fruit trees to Ficus, Bay Laurel, Weeping Willow and Crape Myrtle trees, resorts world-wide planted region-specific plants in honour of ‘earth day’. Additional activities included planting shrubs, making re-cycled paper and lavender oil; beach clean-ups, re-cycling awareness workshops, making re-cyclable crafts and scavenger hunts.

Diamond celebrates Earth Day with tree planting and family events

ISSUE 18 • Summer 2014

New-look RCI.com

New holiday horizons

CI has unveiled a new-look website for members.

The newly launched RCI.com is dedicated to RCI members in Europe and the Middle East and is designed to provide more relevant content and news of exclusive RCI offers and benefits to members.

“The new RCI.com content and navigation functions have been designed to bring a greater element of fun into exchange holiday planning.”

DAE teams up with timeshareAdvisor

ial An Exchange has teamed up with resort review website timeshareAdvisor to offer DAE members the ability to write and read reviews of exchange resorts, directly from the DAE website. The new on-line system will be available for DAE’s members globally. Said CEO Francis Taylor: “By partnering with timeshareAdvisor, DAE can now share valuable visitor feedback through our own website with the ‘reviewconnect’ on-line timeshare review tool.

The resorts are to be found in some favourite destinations including Italy, Turkey, Greece, Egypt and India.

The restaurant at Premium Vacation Club 5* Hotel

The terrace at Crown Hotel Baku, Azerbaijan

The new resorts include: Island Residence Club at Golden Sands Resort & Spa, Malta, a luxurious development of residences at the Radisson Blu Resort & Spa, Mellieha Bay.

The pool at Golden Sands Resort & Spa

On-site facilities include nine on-site bars and restaurants, a spa and leisure centre, private beach, 90-metre lagoon swimming pools and a water sports/dive centre.

Premium Vacation Club 5* Hotel, in Turkey, is close to the centre of Istanbul. All rooms benefit from views over the city or out to sea.

Domina Coral Bay Hotel & Resort, Zagarella, on Sicily, benefits from a shoreline location and is surrounded by lemon trees and bougainvillea. The on-resort amenities include a gym, restaurants, swimming pools and tennis courts.

The hotel’s wellness and spa centre has an indoor swimming pool, saunas, Turkish baths, steam rooms, snow fountains, relaxation rooms and the largest Jacuzzi in Istanbul.

The resort is characterised by technologically-advanced facilities and high-quality accommodations. Efficient and friendly service, to be enjoyed in a warm and welcoming environment, lies at the heart of the Domina guest experience.

DAE magazine goes digital

ial An Exchange (DAE) has launched a digital version of its Holiday Access member magazine.

The publication, which goes to every DAE member, has news, destination features and tips to help people get the most from

The Crown Hotel Baku, in Azerbaijan, is located in Baku, the largest city on the Caspian Sea and a relatively new destination for timeshare with cosmopolitan high-end boutiques, a lively music scene, a distinct culture and historic sites. The hotel has a city centre location close to shopping and sightseeing attractions. Its 93 rooms have mountain or sea views, and include a range of hotel rooms, studios and one-bedroom apartments.

“The ‘reviewconnect’ technology allows DAE members to request and display guest reviews of timeshare resorts directly on our own website, meaning members don’t even have to leave daelive.com to browse reviews. “It’s all there in one place– making it simple for our members to interact with us and each other.”

Exchange news

CI has affiliated 17 more resorts to its exchange network this year.

All new destination pages highlight the attractions of places to visit, linked to relevant affiliated resort offers and RCI’s own member offers. Language preference options are also now available on the new-look site. “Getting the best out of timeshare ownership by using RCI membership means being able to access the information you need as quickly as possible,” said Will Hall, marketing director, RCI Europe.

Domina Coral Bay & Resort

both their holiday ownership and their membership of DAE. The digital Holiday Access will be distributed to every DAE Europe member who has provided an e-mail address, as well as being made available to read through the DAE website. The first issue of the digital magazine covers holiday destinations such as new cottages available across Ireland, resort reports and

On-site facilities include an indoor pool, fitness centre, massage treatments, sauna, bar and lounge with live entertainment.

advice on how to get the best value from DAE. DAE managing director Europe, Oliver Green said: “We have e-mail addresses for over 95 per cent of our members and so this is a quick and efficient way of getting their magazine to them. We want to share information with our members on the platforms they use most, and on-line is where our customers are increasingly focused. The printed version of Holiday Access will be published as usual.”

Is your timeshare still working for you? Recycle Your Timehare Greater Choice and Flexibility Increased Value for Money Guaranteed Exit Route

ISSUE 18 • Summer 2014

Management fees collection: achieving results by knowing the industry CBC International and Resort Recoveries director Roy Caligari shares his thoughts on collecting outstanding management fees.

t’s the time of year again when the collection of outstanding, unpaid management fees becomes critical for resorts. Crucial for the on-going operation of every timeshare resort, the collection of these unpaid bills, and how far a resort should go to do so, remains a hotly debated industry topic. While great strides have been made in improving the image of the timeshare concept over recent years, the decisions made by owner committees, management companies and developers could easily destroy any success.

Affiliate news Holiday insurance – don’t leave home without it This leads me to believe there is a definite requirement for resorts to communicate regularly with their clients with up-to-date resort information. This should include news both about the complex itself and also reminders of owners’ obligations from a legal perspective. I am sure this would reduce ambiguity in terms of where owners stand regarding the payment of fees and this should make collections easier. My team is very aware that maintenance fee collection work must be undertaken with a required element of tact and diplomacy. On the one hand we must convince the owner of the importance of payment in order to maintain high quality standards.

The industry is doing its part making it easier for ownership to be passed to the younger generations in the family when the time is right. And with maintenance fees and perpetuity contracts already on the radar of the EU and U.K. authorities, this is one area of resort management that has to be handled correctly. The industry is doing its part making it easier for ownership to be passed to the younger generations in the family when the time is right. There are also fresh sales and marketing initiatives underway making the timeshare idea appeal to younger folk. This is all good news when it comes to the collection of fees. If ownership can be easily transferred the resort continues to receive payment for the upkeep of the resort. Fees can be collected easily as there is no ambiguity regarding who is responsible. I have lost count of the number of times we have received letters from elderly owners saying they are no longer able to travel and incorrectly believing they can simply hand back their accommodation for no charge and in return for the cancellation of all accrued arrears.

On the other, our clients want to keep the owner ‘on board’ longterm with a mindset of getting a good value for money holiday experience each time they visit – sometimes not an easy balance to achieve if an owner has an issue about something.

Showing empathy is an important part of our job, especially when owners believe they are in the right about a complaint or if they simply do not have the funds to pay at a particular time. At Resort Recoveries we are obliged to treat customers fairly while at the same time reminding them of their obligations. It can be useful to explain to owners the TATOC codes of conduct and practice governing our actions and the duty we have to the Credit Services Association and Financial Conduct Authority. This makes owners realise that the resort has engaged a professional organisation that has all of the right credentials for doing the job. This also ensures the good reputation of our client. We feel that an industry knowledge approach enables us to offer the best fee collections results for our clients. It could work for you, too. Roy Caligari - director and accredited mediator at Resort Recoveries. www.cbc-international.co.uk/resort-recoveries

ATOC affiliate HMC Funding has launched a new travel product, Leisure Guard Travel Insurance, designed to give timeshare travellers peace of mind on holiday. The Leisure Guard policy provides cover for travellers going away once a year, or multitrip cover for people expecting to travel more than once within a 12-month period. Silverpoint Resorts, a TATOC accredited group, has recently introduced the Leisure Guard product to its owners. They see the holiday ownership aspect of the product as an excellent additional benefit. Silverpoint offers Leisure Guard as an optional add on, as it offers cover for all ages, including their more mature owners. Leisure Guard repays both service and exchange fees if a claim is made – and refunds a portion of an owner’s original purchase price according to terms of the purchased policy. The Leisure Guard policy cover includes: • Payment of management and exchange fees for those unable to use their holiday ownership product, as well as a 12 per cent reimbursement of the original timeshare purchase value.* • Medical emergency and repatriation – up to £10 million • Cancellation, curtailment and trip interruption – up to £5000 • Personal possessions – up to £2000 • Cruise cover included as standard. • Available to customers aged 18-84 for single trip cover. • Available to customers aged 18-79 for annual multi trip cover.* The link below provides direct access to the Leisure Guard website. www.leisureguardtravelinsurance.com Enter “TATOC10” in the promo code box. Alternatively you contact the company by phone on: 0844 800 3609 * Terms and conditions apply

ISSUE 18 • Summer 2014

Boost for home nations tourism

oreign tourism visits to Welsh and Scottish resorts rose considerably in 2013, pumping millions of pounds into the local economies.

final results for the key post-Olympic year. Every single nation across Britain has seen an uplift in visitor numbers and, even more importantly, there have been substantial increases in spending for one of Britain’s largest export industries.”

Tourism to Wales rose by more than 30,000 visitors, bringing in £8 million. According to the Office for National Statistics, 900,000 visitors came to Wales from overseas last year - a 3.5 per cent increase on 2012. Total spending by visitors increased to £400m over the year. Visits to North Wales were boosted by cruise ship visits to Holyhead, which brought around 10,000 passengers to the region. But the increase in visitors was below that seen in other parts of the U.K. Scotland saw a near ten per cent rise in foreign visitors to 2.4m while London recorded an 8.6 per cent increase to 16.8m. The rest of England saw numbers up 6.1 per cent to 13.6m. Christopher chairman CAT2398 Love Rodrigues, Timeshare Advert, new of logo 205x145mm VisitBritain, said: “We are delighted with these

News

Adios to Luis

esort Solutions would like to say thank you and farewell to Luis Morin Gonzalez who is retiring after tending the gardens at Diamond Club Calypso for 22 years.

The team from Macdonalds Resorts

Having nurtured the beautiful gardens at the resort for most of his working life, Luis will be handing over responsibility in August.

Macdonald Resorts achieves a clean sweep

With plans to spend more time with his family and working his own land, he won’t be taking it easy. However, he will miss catching up with owners, many of whom have become friends over the years.

Luis is a big part of the Diamond Club Calypso family and will be missed by the owners, staff and management who wish v2.pdf 20:49 him luck 1and23/06/2014 happiness in his retirement.

In addition RCI also awarded Macdonald Resorts with the top regional performer award – U.K., Ireland & Malta.

he Macdonald Resorts team recently achieved a double recognition for providing high quality holiday experiences from both Interval International and RCI.

SHARETIME

Technology

TripAdvisor: world’s most popular travel app TripAdvisor has reached the mobile milestone of 100 million downloads for its free application (app) for iPhone and Android. The number of downloads more than doubled in the past year and is up six times from 2011. According to Distimo, a global leader in business intelligence and app market data, TripAdvisor is now the most popular travel app based on total App Store downloads. “As travel planning has shifted from something you do ahead of time to something that’s possible anytime, the TripAdvisor mobile app has become the essential companion for millions of travellers,” said Stephen Kaufer, president and CEO. “Reaching the milestone of 100 million downloads is evidence that travellers worldwide are benefitting from the TripAdvisor community’s reviews and opinions, wherever their travels may take them.”

Key features of the TripAdvisor app include: • Global content: Provides travellers with a comprehensive travel planning resource on-the-go with more than 150 million user reviews and opinions of hotels, restaurants and attractions, and over 19 million candid traveller photos, covering destinations around the globe. • Helpful features: Travellers on their trips can use then ‘near me now’ and ‘point me there’ features to find nearby places of interest, read traveller reviews and see dynamic maps of their location. • Available offline: Travellers may use city guides anywhere with no data connection required for self-guided walking tours; they may also use the ‘trip journal’ to add photos or comments to capture highlights of their trip. • Booking on-the-go: The TripAdvisor mobile app provides access to the site’s hotel price comparison (metasearch), enabling travellers to compare booking options at a glance with up-to-the-minute hotel prices and availability. • Type-ahead functionality for improved local results: Letting users quickly access more locally relevant search results based on their location. • Google single sign on: Allows Android users to more quickly and easily log in to their TripAdvisor accounts, and also lets users automatically download the app if they have created an account on desktop.

Virgin Atlantic hails Google Glass trial success

easyJet has launched ‘push notifications’ for users of its free, award- winning iPhone application (app). Customers who opt to receive notifications will receive real time updates when on-line check-in for their flight is open, when travel documentation needs to be added to a booking or alerts which will keep them posted on the status of their flight. Users will be able to access the app from the notification in just one ‘swipe’, which will lead them straight to the page of the app that’s most relevant to them. The notifications will also help to ensure more customers are aware of easyJet’s flight tracker which, launched in 2013, provides users with up-to-the minute information on all flights in the easyJet network. It will now also be possible to receive ‘push notifications’, which will lead users straight to the flight tracker when their flight is delayed by more than 15 minutes or a live update direct from easyJet’s control centre is posted. Commercial director Peter Duffy, said: “The use of ‘push notifications’ will transform the way that we communicate with our passengers. “We’ll be providing them with targeted messages and helpful reminders at various steps of their easyJet journey to make things even easier for them when they’re on the move.”

The free apps are available in 21 languages and are available to download at the iTunes App Store or Google Play.

irgin Atlantic has declared its sixweek trial of wearable technology, including Google Glass and Sony Smartwatches, a success, with the airline confirming it is now evaluating plans for a wide-scale rollout.

Low-cost airline enhances experience

have a special one-day sale in the U.S. in April charging $1,500 + tax per piece of equipment.

During the trial at Heathrow Terminal 3, staff wearing Google Glass during the checkin process greeted Virgin Atlantic’s Upper Class passengers.

Google has also been running an extensive ‘Explorer’ programme, allowing developers to purchase the device, provide feedback and develop apps.

A special application (app) was created to work in conjunction with Glass and the Sony Smartwatches. It ‘pushed through’ passenger information, including itinerary details, directly to the wearable process.

“The trial received positive feedback from both our staff and customers,” said a Virgin spokeswoman.

Staff were also able to use devices to provide real-time facts to passengers including details about local weather, and translate information into foreign languages. Google Glass has yet to be officially released to the public, although the tech giant did

“We are currently assessing the costs and benefits of rolling this out to the rest of our team in the Upper Class Wing and hope to make a decision soon. “At the same time, we are looking at other opportunities within the airline that we believe could benefit from the use of wearable technology.”