In the world of timeshare sales, touring potential buyers daily is a critical aspect of the vacation ownership business model. With hundreds of thousands of people touring each month, it’s a strategic game of numbers, where the goal is to convert as many timeshare tours as possible into new timeshare owners. This article explores the standardized engagements used during these tours and the two primary ways individuals are introduced to timeshare opportunities.
The Two Paths to Timeshare Tours
Timeshare tours represent a crucial strategy in the marketing and sales process of timeshare properties. These tours can be broadly categorized into two distinct approaches: Solicited Tours and Offsite Personal Contact (OPCs). Each method targets potential buyers in different ways and settings, leveraging unique tactics to attract interest in timeshare ownership.
Solicited Tours: This approach is more direct and proactive, where the timeshare companies reach out to potential customers through various communication channels such as phone calls, email, or direct mail. The target audience is often selected based on certain criteria that suggest a likelihood of interest in timeshare ownership. To entice these prospective buyers, companies often offer alluring incentives like complimentary vacations, discounted stays, or other attractive packages.
These offers are designed to encourage people to visit and experience the resort firsthand. During their stay, guests are given a comprehensive tour of the property, showcasing the various amenities, accommodations, and unique features of the resort. The tour is also an opportunity for the developers to present the advantages of timeshare ownership, such as the potential for cost savings over traditional vacationing, the comfort of having a home away from home, and the flexibility in vacation planning. The goal is to create a compelling narrative that highlights the value and benefits of investing in a timeshare.
Offsite Personal Contact (OPCs): This method adopts a more subtle and opportunistic approach. It involves engaging with individuals who are already vacationing at a particular destination. These potential buyers might encounter timeshare opportunities through various interactions and touchpoints during their vacation. For instance, they might come across promotional booths, be approached by representatives in popular tourist areas, or receive invitations to attend timeshare presentations. This strategy takes advantage of the relaxed and positive mindset people often have while on vacation, making them more open to considering new opportunities like timeshare investments.
The representatives use this opportune moment to introduce the concept of timeshares, highlight the perks of owning a vacation property, and invite them to explore the timeshare resort. By tapping into the vacation euphoria, this approach aims to align the allure of timeshare ownership with the immediate enjoyment and satisfaction people experience during their vacation, thereby increasing the likelihood of generating interest and potential sales.
Both Solicited Tours and OPCs are integral to the timeshare industry’s marketing efforts, each playing a unique role in attracting and engaging potential buyers. While Solicited Tours rely on direct invitations and incentives like free vacations to bring people to the property, OPCs capitalize on the spontaneous nature of vacationers, offering them an opportunity like tickets to shows or theme park to enhance their vacation experience.
Tour Tactics and Sales Strategies
Timeshare tours, when stripped of their marketing gloss, are not just structured sales presentations but also a numbers game, where the quantity of tours given significantly impacts the likelihood of sales. This pragmatic approach to selling timeshares is important to understanding the typical experience of these tours.
Hospitality and Warm-up Sessions: The tour typically begins in a setting, where prospects are greeted warmly, often with refreshments. This initial hospitality serves a dual purpose: creating a relaxed atmosphere and allowing sales representatives to assess the potential buyers. It’s a strategic start, aiming to make a good first impression on as many attendees as possible, increasing the chances of finding interested buyers.
Podium Presentations: Here, the sales pitch starts. The presentations are designed to be appealing and persuasive, showcasing the resort’s features and the benefits of timeshare ownership. The effectiveness of this stage lies in reaching a large audience simultaneously, maximizing the potential pool of buyers. The more people the presentation reaches, the higher the probability of finding interested parties.
Personalized Property Tours: The guided tours of the property are not just about showing off the best units; they are a critical part of the sales funnel. By tailoring the tour to the interests of the group, the sales team aims to connect with as many prospects as possible on a personal level. This step is about converting the initial interest generated in the podium presentation into serious consideration and intent to buy.
Sales Presentations: The final stage is where the numbers game becomes most evident. The sales team presents tailored arguments to close the sale, focusing on those who showed the most interest during the earlier stages. This targeted approach is a result of filtering down the larger group to those most likely to purchase, maximizing the efficiency of the sales effort.
The financial aspects of selling timeshares, whether in the form of a deed or points-based membership, become relevant when the “Today Only” offer arises.
The Financial Elements of Timeshares
According to industry statistics, the current price of a timeshare in 2024 reflects a significant average price point of around $25,000. However, it’s important to understand that this figure is not a one-size-fits-all; the actual cost of a timeshare can fluctuate significantly based on a multitude of factors. Key elements that play a pivotal role in determining the price of a timeshare include the location of the property, which can range from beachfronts to city centers and the size of the unit, which varies from modest studios to expansive multi-bedroom accommodations.
Another significant factor is seasonality, which refers to the time of year the timeshare is available for use. High-demand periods like holiday seasons or peak tourist months can dramatically increase the cost of a new timeshare. Additionally, the specific terms and conditions outlined in the timeshare agreement, which govern usage rights, ownership duration, and exchange options, can also influence the overall cost.
Beyond the initial purchase price, potential buyers must also consider ongoing financial commitments. Maintenance fees, which are recurrent expenses required to upkeep the property and its amenities, can vary and often increase over time. These fees are essential for ensuring the property remains in excellent condition and can include costs related to general upkeep, repairs, and improvements. Other associated costs might include special assessments, utilities, property taxes, and membership fees for exchange programs, all of which can impact the total financial investment in a timeshare.
Therefore, while the average price provides a baseline, the actual cost of owning a timeshare is shaped by a complex interplay of factors, making it imperative for prospective buyers to thoroughly evaluate all aspects before making a long term financial commitment.
Final Thoughts
The timeshare industry operates on a complex model of enticing potential buyers through strategic tours and presentations. Understanding the nuances of these tactics and the financial implications of timeshare ownership is crucial for anyone considering such a purchase. As with any significant financial decision, it’s advisable to thoroughly research and consider all aspects before committing to a timeshare purchase.
Disclosure: This article is for information purposes only and does not constitute financial or legal advice. Readers are advised to consult with a professional before making any financial decisions related to timeshare ownership.
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Led by experienced Timeshare attorneys J. Andrew Meyer and Michael D. Finn, with a combined legal experience of over 75 years, The Finn Law Group is a consumer protection firm that specializes in Timeshare Law. If you require personalized guidance on any timeshare-related matter, feel free to reach out to us for a complimentary consultation either in person or over the phone. If you would like to learn more about timeshare related topics, you can also follow us on Twitter.