Final Flashcards
The Wyndham Vacation Ownerships’ VPG (volume sold per guest) has ___________ in 2010 from 2008.
Increased
Wyndham Vacation Ownerships’ initial sale (of points) sales and marketing costs are (what percentage) higher than the sales and marketing costs for upgrades (sale of additional points to owners)?
24%
What percentage of Wyndham Vacation Ownerships’ recent purchasers have been under the age of 45?
58%
Wyndham Vacation Ownerships’ lendees (owners that borrow to finance their purchase) FICO scores have increased in the 700-850 category from 34% in 2005 to (what percent) in 2010?
66%
On average there are how many board members on an HOA board?
3-7
T/F HOA board of directors have to go through a rigorous process to make certain they are qualified.
False
How does Wyndham Vacation Ownerships make money?
Sales, property management, and consumer financing
Pricing is how much greater for time intervals than whole ownership sales?
4.8
Wyndham Vacation Ownersihps’ tour flow _________ in 2009.
Decreased
HOA board members are voted on by __________.
Membership
Wyndham Vacation Ownerships’ profit per sale has ___________ since 2006.
Increased
__________ establish a timeshare resort’s legal existence.
Articles of incorporation
The timeshare owners that purchase from Wyndham Vacation Ownerships that have a FICO credit score of below 600 have to put _____% down payment on the purchase.
50%
______% of Wyndham Vacation Ownership owners own a primary residence.
92%
T/F Wyndham Vacation Ownership is looking to increase money spent on inventory.
False
A report by the Travel Industry of America indicated that (what percent) of trips taken in the US are two nights or less in duration.
80%
What has the best closing rate in the timeshare industry?
Mini-vacation
T/F Owners that use RCI points can stay at a resort for a one night stay.
True
Mini Vacations closing rate is:
20-30%
Of Asia and the Pacific, which is the more mature timeshare market?
Pacific
55% of new timeshare business in Asia expects to come from:
China
T/F If you own the point value of a one bedroom in a points based club, you will always need to stay in a one bedroom.
False
Which delivers more reliable leads?
OPC
Best prospects are those that have already purchased. This is called:
Milking the cow
The most important part to make sure that a timeshare is a success is:
using the right sales and marketing plan
The only country in Asia that has timeshare regulations is:
Malaysia
Asian consumers in general (are/are not) brand conscious.
Are
T/F If only one member of a married couple shows up for a timeshare tour, the resort can refuse to give them the free gift.
True
Vacation intervals are typically sold in ________ sizes and __________-length terms in Asia Pacific regions compared to North America and Europe.
Smaller; shorter
T/F It is better to sell all of the best units or weeks first.
False
HOA takes over the running of timeshare resorts after approximate ______ of the units are sold.
75
The General Manager along with his/her staff is responsible for key business deliverables such as attainment of budget targets, guest satisfaction targets, and:
Associate satisfaction targets
The accounting/finance department at a timeshare resort spends more time:
Revising, billing and collecting annual maintenance fees
T/F A timeshare buyer does not have to finance through the timeshare developer. They have 90 days to find another bank.
True
Which department has the single greatest influence on guest satisfaction at a timeshare resort?
Housekeeping
A housekeeper at a timeshare resort can clean how many villas per day?
3-4
Engineering/maintenance needs to maintain a strong relationship with what department?
Housekeeping
What department is responsible for a guest wanting to return to a resort again?
Activities
What percent of proceeds of each sale goes to sales and marketing costs in branded vacation ownership companies?
36-47%
What percent of owners finance their purchase through the timeshare resort developer?
50-70%
T/F Generally, if a consumer finances through a timeshare company, the interest charged to the consumer is greater than 20%.
False
Independent timeshare resorts’ sales and marketing costs are _________ than timeshare brands’ sales and marketing costs.
Higher
Equity Financing:
Start-up money needed to begin the project; hardest type of financing to acquire because if the project fails, the bank will not get a return on their investment
Acquisition Financing:
Used to buy undeveloped land; no more than 3 years in duration; high interest rate; used to pay off the equity loan
Development Financing:
Often packaged in the same loan as the acquisition loan; used to develop a piece of land and prepare it for construction; pays up to 75% of the money required to develop the land; =< 3 years; used to pay for the acquisition loan
Construction Financing:
Underwrites the actual building of the timeshare property; repayment is based on a release schedule
End Loan Financing:
A way for developers to use the loans that are financed by the consumer for their timeshare purchase as collateral to obtain the money for construction; 12-18 months
Spread:
Difference between the rate the developer finances the timeshare and the End Loan agreement with the bank; the profit
What percent of consumers choose to finance through the timeshare resort developer?
70%
What European country has seen an increase in condo hotel ownership in the US?
Germany
The four fees that drive condo hotel expenses include:
Franchise fees, monthly maintenance fees, capital expenditures, and property taxes
T/F If a person owns a condo hotel room in most locations, they are not allowed to live in their unit full time.
True
T/F Condo hotel sales people include how much rental income the owner will receive in their sales pitch.
False
Between 2000 and 2009, what saw the largest appreciation of the unit’s value?
Traditional condos
Four or five star hotel rooms cost how much to build per room on average?
Less than $500,000
If a condo hotel is rented by the management company and not by the owner, the management fee split is as low as 40% and as high as:
55%
T/F If you own a condo hotel, you can rent your room out on your own without going through the hotel’s rental pool.
True
T/F The timeshare industry continues to receive a great deal of financing from banks even with the state of the economy.
False
There was a(n) ___________ in timeshare sales between 2009 and 2010.
Increase
Smaller resorts have _____________ average prices than large resorts.
Higher
Vino Bello Resort is located in:
Napa
Bluegreen Resorts have timeshare in:
Big Canoe, GA
Lake Lure, NC
Hershey, PA
…
The timeshare industry relies on what kind of process to selling process?
Active selling
Bluegreen’s operating income from December 31, 2008 to December 31, 2011 has increased by how many million?
52.5
Renters at timeshare resorts comprised what percent of stays in 2010?
10%
Bluegreen Corporation gross profit was ___________ in 2010 than 2009.
Higher
What percentage of timeshare sales came from new owners in a recent study?
55%
What percent of recent timeshare buyers were single?
17%
ARDA is the national organization for the timeshare industry. The acronym stands for:
American Resort Development Association
Shell Vacation Club members ___________ have access to hotels with their membership.
Do
T/F Local communities and local government have typically welcomed timeshare development.
True
There is a trend towards __________________________ in the US: hotels, timeshares, and private homes in one property development.
Mixed use development
T/F It is easier to sell a foreclosed timeshare interval than a foreclosed condominium in this current economic climate.
True
T/F Currently the timeshare industry is dependent on international tourists buying timeshares in order to make a profit.
False
T/F It is increasingly difficult to predict short-term spending habits internationally.
True
T/F A recent study stated that economic issues have led to less than half of owners using their timeshares.
False
T/F The timeshare industry continues to receive a great deal of financing from banks even with the state of the economy.
False
T/F Bluegreen Resorts stock price is currently at the lowest point of the past 52 weeks.
False
If an owner wants to have the highest trading value for their timeshare when it comes to exchanging, where should they purchase?
Coastal California or Hawaii
T/F Timeshares have experienced similar occupancy rates based on the recession. In 2008, both had occupancy rates around 60%
False
T/F A right-to-use ownership of a timeshare includes a deed of ownerships.
False
T/F 70% of timeshares in the world are located in the US and Mexico.
False
T/F Converting condominiums into timeshares is becoming a trend instead of building from the ground up.
True
How many timeshare owners intended to make an additional timeshare purchase in the next two years?
1 in 6 owners
The two largest exchange companies include:
Resorts Condominium International and Interval International
T/F Hilton Grand Vacations has resorts in Spain.
False
T/F Timeshare resorts that use the points system do not have the happiest owners because they are too complicated to use.
False
T/F Timeshare owners that own at a right-to-use resort cannot sell their timeshare, only owners that own at a deeded resort.
True
T/F There is no best place to own a timeshare.
True
T/F Timeshare owners do not have to pay maintenance fees if they do not use their timeshare.
False
T/F The Hilton Grand Vacation Club has a property in New York City.
True
As soon as your week is deposited with an exchange company:
You can request and get the week you want if it is available.
T/F Timeshare owners can rent out their timeshare if they decide not to use their week.
True
T/F In the Trends article, there was an example of a company that has been transparent in their marketing and showing prices on the internet.
False
The typical adult (that vacations) takes how many vacations per year?
4
_____________ means that you have the right to occupy (or have available for trade or rent) a specific week and unit number at the resort you own every year.
Fixed week ownership
Residential cruises are ____________ than most traditional cruise lines.
Smaller
T/F The World (the largest resident cruise line in the world) has less than 100 private residences.
False
What decade did destination clubs first make an appearance in the vacation ownership industry?
1990s
Most clubs maintain 1 home for every ______ members.
6
Ritz Carlton Club has portfolio and home club memberships that are both what type of membership?
Equity-based
The Four Seasons resort in Vail, Colorado has what type(s) of ownership opportunities?
Whole ownership and fractional ownership
The itinerary of the World residence at sea is decided by:
The World owners
T/F Destination clubs have onsite concierge services.
True
Exclusive Resorts destination club saw a _____________ in new member sales in 2010 compared to 2009.
Increase
How long does the ownership last for the residential cruise ship?
50 year lease
T/F Ritz Carlton Club’s Portfolio membership provides access to a specific residence size for 21 to 35 days annually, depending on the Club location selected.
False
What type of ownership currently exists for residential cruise lines?
Fractional and Full ownership
The average membership deposit for destination clubs is:
Between $400,000 and $500,000
What club offers VIP-access at The Kentucky Derby and The Masters Tournament in Augusta?
Exclusive Resorts
Which brands have residence clubs?
Four Seasons
Hyatt
St. Regis
Ritz Carlton
T/F The World Residences at Sea is available for anyone to rent a cabin without a special invitation.
False
T/F Four Seasons Residence Club Vail is selling their fractionals as 1/4 deeded interests.
False
T/F Most destination clubs require at least 2 to 3 new members join in order for a member to resign and receive the refundable portion of their deposit back.
True
T/F Destination club members cannot rent their accommodations.
True
T/F More than half of the people that own a timeshare are not happy.
False
The primary selling point of a timeshare is:
Hedge against vacation inflation
T/F Vacation ownership originated in the US.
False
Which companies have a timeshare segment?
Disney Wyndham Hilton Marriott Starwood
T/F If you own a timeshare, you must always return to the same resort every year.
False
What decade were timeshares created?
1960s
T/F When a person purchases a timeshare, the interest charged by banks is usually the same amount as what they would get for a home mortgage.
False
T/F When a person purchases a timeshare, they will typically see savings immediately.
False
T/F Timeshares are a good real estate investment.
False
Hyatt Vacation Club has locations in the following places:
Key West, San Antonio, Sedona
T/F Hyatt Vacation Club owners may redeem points for traveling to participating Hyatt Hotels and Resorts.
True
Which vacation ownership company has properties on Paradise Island, Bahamas at the Atlantis?
Starwood
T/F Timeshare owners are responsible for repairs of their resort in case of a hurricane.
True
T/F Owners can deed their timeshare to their friends and family.
True
T/F The minimum amount charged by Marriott Vacation Club to purchase points is $20,000.
False
T/F It is legal to withhold certain weeks if a timeshare owner knows in advance that there are going to be weeks that will never be available to the owners.
True
If a person owns a biennial timeshare, they get to use it:
Every other year
Marriott Vacation Clubs has vacation club resorts in the following destinations:
Marco Island Orlando Maui Branson Hilton Head
The statutorily required “cooking-off” period during which a purchaser can decide not to purchase the timeshare interest and rescind the purchase contract is how long in the state of Florida?
10 days
Most timeshare owners in Europe come from which country?
UK
What percentage of European owners own multiple weeks of timeshare?
Nearly 80%
Marriott Vacation Club members have access to more than 2,500 resorts in 75 countries around the globe through a relationship between Marriott Vacation Club and
Interval International
T/F Timeshare owners are not allowed to bank and borrow timeshare weeks. They must choose one or another when planning their timeshare use.
False
What company’s OPC cannot approach you unless you approach them first?
Disney
T/F Maintenance fees have grown an average of 5% a year since 2005.
False
The transfer of use rights in a use period for a given use year into an exchange program. What is this called?
Deposit
T/F It is illegal to raise timeshare owner’s maintenance fees if other timeshare owners default on their loans and are no longer making payments.
False
The marketing effort utilized in the sale of timeshare interests where the developer’s marketing agent sets up an information booth or otherwise attracts prospects at areas located off of the timeshare resort premises for the purpose of taking a timeshare tour on the premises.
OPC
According to a 2008 study, 40% of timeshares in the US are located in California, Florida, and…
South Carolina
Timeshare can be segmented by owner occasion (how they use their timeshare). They include the following:
Activity
Family holiday
Swapper
Home away from home
What are the number 1 and 2 destinations in terms of number of resorts?
- Spain
2. Italy
A timeshare plan under which the purchaser receives a specific use period (usually a unit week) in a specific unit that the purchaser is entitled to use each calendar year without making a prior reservation.
Fixed
T/F The percentage of people who buy a unit after sitting through a sales pitch has decreased to 10-15% recently from 20-30%.
False
Which exchange company offers an upgraded program that includes Hertz #1 Gold membership for expedited service in more than 40 airports worldwide?
Interval International
Which exchange company charges the most money for international exchanges?
RCI
Which timeshare company offers owner resale programs?
Trading Places International
T/F All exchange companies charge membership fees as well as exchange fees
False
T/F All exchange companies charge membership fees as well as exchange fees.
False
T/F Interval International is the largest exchange company in terms of number of resorts.
False
What percentage of timeshare resorts are affiliated with one or both II and RCI?
94%
T/F Once a timeshare resort is affiliated with an exchange company it is a lifetime commitment.
False
T/F Exchange companies were created in the 1980s.
False
When does a timeshare developer affiliate with an exchange company?
Before any timeshare has been sold
T/F International exchanges cost more because it is a much more complex process than a domestic exchange.
False
T/F Interval International owns and manages many resorts.
False
Trading Places International has found that 80% of vacation owners want to exchange to what percent of the destinations?
20%
Timeshare owners have similar demographic characteristics as:
Cruise guests
T/F RCI does not allow banking of its points.
True
T/F 5% of RCI’s affiliated resorts have achieved the Gold Crown status.
False
T/F A timeshare sales person legally has to tell a timeshare owner that their week may be undesirable if they would like to exchange.
False
T/F International cruises and excursions, Inc. only offers discounted cruises and land and sea packages.
False
T/F A salesperson never handles the entire closing, it is always taken over and finished by a sales manager.
False
During the discovery portion of the sales presentation, what level questions lead the salesperson to understand the core feeling of the response to the question?
Third
T/F A motivation for why people purchase timeshares is education.
True
T/F During the discovery portion of a timeshare presentation, the salesperson should tell the tour why the way they vacation is wrong.
False
Two main reasons that people buy timeshares:
Hope to gain something emotionally and fear of losing something
What is typically the longest part of the sales process?
Discovery
The purpose of an information confirmation in a sales presentation is to:
Let the client know what they have said is heard and understood.
T/F Trial closing questions should not be asked during the property tour.
False
T/F The discovery portion of a timeshare sales presentation is not a time to sell anything.
True
People make judgments about salespeople in what period of time?
First 60 seconds
T/F A good salesperson will tell the tour everything they know about the product.
False
T/F If a tour asks if every resort has a swimming pool (or any other feature) the sales person should reply immediately with a yes or no statement.
False
T/F Most communication is verbal.
False
T/F Even if a person has a strong enough emotional motivation to purchase a timeshare, the objections they have will never go away.
False
T/F If the tour states they have no intention of buying and they are just on the tour for the free gift there is no need to go through with the discovery.
False
T/F The discussion of the timeshare is not part of the warm up portion of the timeshare presentation.
True
T/F It is important to make certain that the sales tour knows exactly what will be happening during a timeshare tour at the beginning of a presentation.
True
T/F A salesperson will always lose a logic argument with a timeshare tour.
True
