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Week of August 29 - September
4, 2003
Street Talk is a compendium of tips, facts, gossip,
rumors, speculation and editorial comment.
This Column is Published Every Friday, with
frequent updates throughout the week
E-mail: news@thetimesharebeat.com |
Email: street@streettalkblog.com
click here for Street Talk International
The auction of Epic Resorts will take place at 10 a.m. EST on Sept. 30 in the New
York City offices of Stroock & Stroock & Lavan LLP. Bids, including written offers, bid deposits and other
required information must be submitted by 5 p.m. Sept. 27.
The Hon. Mary F. Walrath will disclose the winning bid for the company's six properties and assorted other assets,
which are finally free and clear of liens and encumbrances, at a US Bankruptcy Court in Wilmington, DE at 2 p.m.
EST on Oct. 7.
Sunterra is the stalking horse bidder, which means that if someone else enters a higher bid, Sunterra will
have the opportunity to top that bid. If you, too, would like to enter a bid for Epic's assets, details of the
bidding procedure, etc. are available in PDF format at http://www.thetimesharebeat.com/2003/ts/Epic-Sunterra-sale-notice.pdf
Meanwhile, The English Village in Lake Havasu City, AZ will be auctioned off privately on Sept.
2 and the winning bidder will be identified after the sale. The San Manuel Band of Mission Indians,
one of California’s wealthiest tribes, is expected to place an initial bid of $2.2 million. According to the terms
of the settlement reached earlier this year between former Epic owner Tom Flatley and the Epic trustee,
Flatley will have 72 hours after the announcement to match the offer. Epic COO Bert Blicher confirmed to
The Havasu News that Flatley has expressed interest in retaining the parcel, which includes all of the village
property north of the London Bridge, excluding the London Arms.
Will Flatley also bid on the Epic package? Wouldn't it be an irony if the man who built and then lost the company
ended up with it again free and clear?
Wouldn't you love to know all the details of that $30 million lawsuit the trustee filed against Flatley,
Scott J. Egelkamp, Kenneth Knight, Todd Lynch, and Lund Stucki accusing them of a scheme to remove assets and
cash from the company and " place them beyond the reach" of creditors to " enrich" themselves?
You might remember that the suit, filed in August last year, claimed they " committed acts of fraud or conspired
to commit such fraudulent acts and breached their fiduciary duties or aided and abetted such breaches of fiduciary
duty by taking numerous actions designed to strengthen former management's position to the detriment of the debtors'
creditors, during the period when Epic Resorts was hopelessly insolvent," according to the legal action, which
was filed in bankruptcy court. (You can get more details from the Philadelphia Business Journal at (external)
Epic continues its saga of financial, legal woes ) The suit was dropped later when the warring parties reached a settlement.
As the worm turns? This is getting interestinger and interestinger.
- YOUR COMMENTS
- August 29: --" Some
times this industry is simply A M A
Z I N G ! Here we read that the BK courts have cleared all the debts that Epic Resorts had and now they are ready
to sell the properties tomorrow, and...and Tom Flatley and his crew may get them all back. I am sure he can afford
to match the offer for the English Village and bid high for all the rest of the resorts. Especially because he
has $45,000 of my money, and not including another $1,500 of my hold-back account money that was suppossed to be
in an escrow account. I am just one of thousands. Sometimes people just end up taking it hard. For shame, for shame.
Just my opinion, I could be wrong."
- August 31: --" I
know all the employees still working at
Epic Resorts are praying that Flatley doesn't get them back. Many have said they would walk if he was in control
again, remember a Leopard never changes its spots."
Email: street@streettalkblog.com
 C. Wayne Kinser: August 31, 2003
Wayne Kinser,
founder, chairman, and president of Peppertree Resorts Ltd, passed away after an extended illness on August 31,
2003. He was 69 years old.
Kinser began his first timeshare project, Peppertree Vacation Club, in 1977 on the grounds of The Great Smokies
Hilton Resort (now a Holiday Inn Sunspree) in Asheville, North Carolina. Twenty-two years later, when Peppertree
Resorts merged with Equivest Finance in 1999, Peppertree was one of the leading vacation ownership companies in
the Southeast, welcoming more than 50,000 families each year to its 15 resorts throughout the Carolinas, Tennessee,
Wisconsin and Missouri.
Mr. Kinser is survived by his wife, Cindy Fullbright Kinser two daughters, Kay Kinser Williamson and her husband,
Tim, of Panacea, Fla., and Natalie Rice of the home son, David Wayne Kinser and his wife, Kim, of Asheville brother,
Robert Kinser and his wife, Cathryn, of Asheville and three grandchildren, Hunter and Lauren Kinser and Zachary
Williamson.
Burial is to be a private ceremony at Riverside Cemetery with only immediate family attending. A memorial service
in celebration of Mr. Kinser's life will be held at 7 p.m. Thursday, Sept. 4, at Arden Presbyterian Church, where
he was a member. The Rev. Ed. Graham will officiate. The family will receive friends following the service.
In lieu of flowers memorial gifts may be made to the Cove Camp Scholarship Fund, c/o Sherri Schaddelee, P.O. Box
19223, Asheville, NC 28815 or Manna Food Bank, 627 Swannanoa River Road, Asheville, NC 28778.
Morris Funeral Home is assisting with the arrangements. |
|
The following loooooong email, concerning the broohaha going on at HGVC
in Orlando, was intriguing enough that we're giving it its own space here. Let us know what you think, and
if interest is high enough we'll put you in touch with the author...
- --" It's interesting to read what's
being written about HGVC Sea World in
Orlando. I worked at that site for about 3 years and the following are/were my observations.
- No one will ever change what's going on there--
unless everyone stands together for their common good.
- You guys need to understand that management
will always win because the average timeshare salesperson is more concerned with their own good than the good of
the group.
- The average timeshare salesperson is not highly
educated. They see no further than tomorrow. Long term, career related thinking doesn't exist in the minds of timeshare
salespeople. Typically a salesperson on top of the wheel doesn't want to rock the boat, because he or she is happy
with the money he or she is making today. It doesn't matter that the group is suffering All that matters is that
he or she isn't.
- Maybe salespeople need to learn from the success
of management. They stick together as a team. They have one voice. Most managers used to work on the line at some
point in their careers. When they become management they feel the injustice towards salespeople, and see it. But
they will never side with a salesperson because their own jobs depend on them being management team players.
So what does one do? Simple. Get educated. Start thinking of your future. Start thinking of your family. Start
thinking now!
Ignorance of the law is not an excuse. Never has been. Never will be. The ONLY way to bargain for better working
conditions at Hilton is to bargain collectively. To stand and stick together. Think about it people: when we used
to have one bad day, in we went for a butt-kicking meeting with Feorene. Why? Think about it. Why?
The reason is because HGVC ...CAN'T AFFORD TO HAVE A BAD DAY! Now, what if they have 5 or 10 REALLY, REALLY BAD
DAYS? Maybe someone higher up in the food chain will bake Feorene and Curtis a cake, place some pretty candles
on it, and blow them out of there. Maybe they would be called into a butt-kicking meeting?
People, understand the laws: Florida is a 'Right-to-work' state. This does NOT mean you cannot speak collectively
or UNIONIZE! (The dreaded word) Right to work SIMPLY means you cannot force a new hire to join the union. It's
their option to do so. Forming a Union is simple. All you have to do is get 50 plus 1 percent of the salespeople
to join. This is as simple as about 35 to 40 salespeople walking into the AFL-CIO or other union office and CONFIDENTIALLY
signing up for the union. When the union has the desired number of signatures, THEY will approach HGVC and inform
them of the Union. You don't have to do anything else.
Hilton deals with unions in many states. Housekeepers, maintenance people, construction workers, bookkeepers...
heck in some states Hilton even deals with unionized salespeople. So why do you think Hilton won't deal with us
if we were unionized?
Wouldn't you like a qualified tour? Wouldn't you like a fair wheel? Wouldn't you like portable healthcare for your
family, decent vacation benefits, paid sick leave, a shop steward to voice your concerns to management-- a freakin'
lunch break? What about a COLA increase in pay instead of the Feorene Underhanded Commission Kickback program that you guys are on? Come on people!
Aren't you human beings? Isn't your family, children, career and peace of mind more important than Feorene's and
Curtis' pocket?
Get together and speak with one voice! And do it now! I don't work at HGVC any longer. So I am not afraid to talk
about these things. You can email me if you would like to express your feelings or to discuss this. If I receive
enough inquiries I'll put this together for you. Remember... Disney is one of the largest union employers in Florida.
What can Feorene do? Bake me a cake? I don't think so... HA! HA!"
- YOUR COMMENTS:
- Sept. 1: --" The
problem facing reps is that the timeshare
industry has been getting more and more legitimate with the name brand resorts, but still looking at the reps as
a necessary EVIL. How many of you reps have a paid health plan or 401k or any company benefits.How about this:
some resorts have these benefits for managers (all on books as employees) but not for the independent contractor
rep??? This writer is correct:We reps better unite or don't bitch. All the fancy name resorts and all the bad managers
don't have anything without the REP. The truck don't move without a driver!!!"
Email: street@streettalkblog.com
| IN THE WESTERN Half of the USA: |
ARIZONA:
WILLIAMS: Jim Fisher wants to build an Old West theme park in Williams. Called Arizona Territory,
the three-phase plan calls for a small-gauge railroad and depot, steamboat and pier, underground gold mine, gunsmith
and shooting arcade, 750-seat rodeo arena and a sheriff's office, jail, courthouse and gallows, an indoor water
park, convention center, and a retail and entertainment center.
There also will be a guest lodging campus, complete with hotels, a timeshare complex and an RV park. Construction
is expected to begin in spring 2005 at the earliest.
For those of you unfamiliar with Arizona, Williams is about 35 miles west of Flagstaff, is on historic Route
66, is the closest city to the Grand Canyon, and is called, you guessed it, " The Gateway to The Grand Canyon."
E-mail street@streettalkblog.com
HAWAII:
OAHU: Hilton Grand Vacations, with tentative plans
to break ground in 2006 or later for a 27-story hotel/timeshare tower in the Lewers Street area, plans in
the meantime to convert 72 units on six floors of the new Kalia Tower at Hilton Hawaiian Village. The Kalia
Tower has been closed since July last year because of mold, but is set to reopen Sept. 1. The conversion should
be complete by December.
MAUI: The initial 103-unit phase of the Westin Kaanapali Ocean Resort Villas
is scheduled to open Sept. 24. Another 153 units will be built, opening in September 2004. This is Starwood's first
resort in Hawaii, and is being built on 14 acres it acquired in 2000 from Amfac/JMB Hawaii for $19.5 million
in 2000. Starwood VO's team has been rocking there!
Maui Marriott Resort and Ocean Club: Conversion of the Maui Marriott hotel rooms to timeshare units is ongoing,
with 42 units scheduled to be finished by October, bringing the total number to 196. Another 275 hotel rooms are
scheduled to undergo conversion to 116 timeshare units starting in May 2005, subject to market conditions.
Rumor has it, by the way, that MVCI had a record breaking performance last period in Hawaii with over $21million
in sales and two sites breaking their all time record!
Shell Vacations has no plans at this time to expand the Holua at Mauna Loa Village on the Big
Island, but they do have plans for Oahu and Maui. Let the speculation begin on what and where. Hawaii
has been very good to Shell this last year or two looks like they're fixin' to make the relationship even better.
E-mail street@streettalkblog.com
NEVADA:
LAS VEGAS: According to an article in the Las Vegas Sun,
creditors for Leisure Resorts/Mego Financial Corp. are asking a bankruptcy court to set aside a ruling that
allows the company access to about $8 million in debtor-in-possession financing. Mego Financial's committee of
unsecured creditors is asking Judge Gregg Zive of the U.S. Bankruptcy Court in Reno to either amend or set aside
his ruling dated Aug 14 that allows the company to enter into a six-month, $8 million revolving credit line with
Textron Financial Corp. You can read about it here: (external) Time share deal opposed
A sad part of all this is that many of the ordinary owners don't know anything is happening. Apparently they have
received no notices about it. Says one owner: --" The
only reason I chanced to find out, was
after making a reservation, I ask about getting the van to pick me up at the airport. Sorry, the vans have been
sold, because of the bankruptcy. Bankruptcy?? What Bankruptcy!?"
AND (Breaking News?), we understand that Shell Vacations is finally about
to open in Las Vegas. Where, you ask? The former Hawthorn Suites, just a block from the Strip, which has
had several potential suitors over the last few years. According to sources, it will be called the Desert Rose
Resort. Stay tuned.
E-mail street@streettalkblog.com
|
| IN THE EASTERN Half & Midwest of the USA: |
|
FLORIDA:
ORLANDO: It was another great month for sales leader Gary Head at
Fairfield Star Island in Orlando. Having rejected management offers he is on track to do $1,500,000 again
this year after producing $170,000 in August. Way to go Gary!! 
•
AND: --" Remember
when Timeshare Line Sales was one of
the few professions where an above average salesperson could acquire a great income level in a relatively short
amount of time? Remember when a tour actually had qualifications to meet other than warm and breathing? Remember
when a tour could be NQed? I guess what I’m getting at is: when did the marketing companies take over the timeshare
industry?
I know the answer to that question for one resort here in Mousetown, FL: when the resort CEO married the owner
of the marketing company - it was more of a merger than a marriage an extremely profitable coupe. Talk about the
fox guarding the hen house! Their wealth is abounding and it stays in the family. With over 250 tours per day –
well, you do the math. I believe the motto of this marketing company is the same as the one on the base of the
Statue of Liberty. (You know - “Give me your tired, your poor… we’ll triple-book and wire ‘em”)
The story is not so rosy for the rest of us. Each year has become progressively worse for the line reps and this
summer has made TS history for this top resort. For the month of July, when sales are plentiful and we make over
a third of our annual income, not one manager made bonus and they are all on letter (increase stats or be fired
in 30 days) even with forcing the reps to pay closing costs on 80% of the deals. The Rep of the Month was at only
$65K! The cancellation rate has soared. We’ve been berated for whining, crying, and complaining over “junk” tours.
We’ve been told we’re weak and sent back to training. We’ve been instructed that we’re negative and need some PMA
tapes to listen to. BUT, the numbers don’t lie and now that the managers have been affected, it’s time to pass
out the hankies.
However, if you let those tears dull your vision, you might get trampled by the mass exodus. The mighty 150-rep
line has dwindled into the 80’s. The once 25 or better candidate training classes are emitting three to five grads
at best.
Guess it doesn’t matter what color you name your lake, a foxy marketing company in collaboration with the CEO can
“sink” a sales force.
Is the term “honest timeshare” an oxymoron?
- YOUR COMMENTS
- August 31: --" The
above person was speaking of the CEO
that married the marketing director that is bringing in 250 tours per day. Let's do the math. At 250 tours/day
at @$275 each ( that's the going price in mouse town ), that's a gross of $68,750/day, $481,250/week, $1,925,000/month
and just over $23 million/year. Figure in his income at a cool million/ year as CEO and this couple is hauling
in more money than anyone in the television or entertainment business. T-Mac with the Orlando Magic is only making
$13.2 million per year ($93 million over 7 years). Would you have ever thought a " timeshare honeymoon" and a walk down the aisle could bring in more cash than one of the top players in the NBA? Looks like there are
two foxes in this " hen house."
- Sept. 1: --" Queen...
was seen twice in one week checking
the tours Herself, something that never happened before. Maybe the fact that the Managers did not make bonus and
are on letter, and the top of the Salesline aren't making enough to pay their taxes this Summer, the Wilsons might
actually be doing something about her wired tours. -Signed Broke, Tired and Mad."
- AND: --" We
worked six days on, one day off for
the summer. If a Tour did not understand english, we still had to take it, if they were wired , we still had to
take it. Two to three tours a day, 80% of the time we paid closing costs, means that we made 2-300 dollars on the
deal, and 30% cancel does not pay the bills. HELP!"
- Sept. 3: --" How
can you only make $2-300 on a deal?
Also,what does it mean you pay the closing cost???? I have been in the Biz twenty years and I never heard that.Someone
please post an answer on The Timeshare Beat, thnx."
- AND: --" We
cannot close our own tables we have
to get a Manager to give the final price. If the Mgr. accepts 100 dollars down we get to pay the closing costs,
usually 500 dollars. 10,000 price, 7% commission, minus the closing cost = 200 dollars. DUH!"
• AND then there's this: --" The first timeshare co. I worked at had an exit line where tours were offered a trial membership
for about $1000.00 after all efforts were made to get them to buy a deeded TS. The company was a big property and
had other resorts that people could buy into. Some of the deals were as low as $75.00 a month. A few mos ago I
went to work at another resort that also has resorts in Orlando that can also be sold for a low monthy payment,
however: we sales people on the line selling deeded property can only go to a certain low figure. The tour who
can't afford our payment because it is too high is then sent to their exit dept, but but but... they are not selling
a vacation trial membership, they are actualy selling a deeded TS from the same company at a lower price. After
I spend 3 or 4 hours of my time getting them to want it, the only reason they don't buy is because they can't afford
the high monthly payment. After 15 min. with that dept. in the same room just tables away, they buy their deeded
TS only because they can go to a lower figure making there monthly payment as much as $55.00 lower. I have many
tours come to me and say if I had offered them that they would have bought from me. I make a big $50.00 they make
5 or 6 or 7 times more after I do all the work getting them to want to do business with my company. Is that against
real FREC RULES? I should be able to sell at whatever price the company has as long as its deeded t/s, presented
to the same tour at the same time in the same bldg by the same company. They are not walking out, getting a gift,
then being hooked again. What are your thoughts on this? They are cheating me out of commisions by not letting
me sell deeded t/s. If they won't let me sell what they have then the broker should see that I split the commission
evenly with the other dept. It is deeded property. If I worked in an RE office the broker would see that its split.
Comments please."
- YOUR COMMENTS
- August 29: --" FREC
does not get involved in commission
questions, nor does any state regulatory agency. My answer to you would be that if you do not like the amount of
commission you receive when your non-buyer, purchases an “Exit” product, then either leave their employ, or join
their exit department. Don’t sit around and whine about being a “victim”. I believe that many lose sight of the
fact that the customer is generated by (therefore belongs to) the developer. You are paid a commission to do a
job. Do it… or do something else! Life is way too short to go through it disgruntled. I can tell you after 22 years
in the business that there are some outstanding companies out there to be associated with…both branded and independent.
Find one, and settle in and prosper!"
- AND: --" That
comment HAD to have been made by management.
The whole point is he IS doing his job, he's doing it so well that when he reaches his final allowed drop and has
to send the tour to the 'Exit' program people, they nail it with another drop and gather the benefits that HE worked
for but was not allowed to take all the way. Not fair."
- AND: --" Anytime
someone starts an answer with " if
you don't like it you can go work someplace else" it is just another mental midget manager. Don't give up
the ship, get your reps together in a proff. manner and talk to the boss for some points on the exit. I am so tired
of the managers telling us to " go someplace else if you don't like it" . If we all left the industry who
would sell the product to pay the manager? Those who sell will sell.Those who can't sell will manage. I have even
had managers tell me AT A TIMESHARE ONLY RESORT: that they get paid from the developer not from my sales. ??????
see what I mean: MENTAL MIDGETS"
- AND: --" This
story (like a thousand others) tells
a tale of the constant new stream of ways that we timeshare salespeople get used and abused. The answer to the
problem is contained in the letter, though. " FREC Rules (or the lack thereof) are at the very root of the
problem. Another letter today speaks of unionization of timeshare salespeople. Maybe " ORGANIZATION" is
the better term for what we need. We have no real set of laws that govern what a developer may and may not do with
regard to employing and paying timeshare salespeople. We fall under their licensing restrictions in Florida, but
this licensure entitles you to virtually no help from the FREC in any case involving developer abuse. I would like
to see a timeshare committee made up of active timeshare salespeople and developers that are part of the FREC.
Their purpose is to legislate a fair and common set of regulations that can be enforced as are the regulations
for other real estate professionals. We have let this problem go unattended for far too long. Unionization will
not work in an industry that encourages individual performance. Let's not lose the ability to make a good paycheck,
in favor of mediocre salespersons getting an equal share. The great performers can still stand out and be rewarded
while the average guy gets a fair shot at the same time."
- AND: --" I
will assume that FREC is the Florida real estate comm.
Being from PA. we have the PA.human relations comm which does protect anyone under license i.e. R.E. sales, Doctor,
Lawyer, hairdresser etc. I think every state has a human relations comm. you should check it out. I know this top
closer who is dragging his resort to Harrisburg, PA. to answer charges of discimination and bigotry towards customers
and he has 20 plus witnesses and pictures to prove his case. I don't think they would settle comm. disputes, however
if you have a real PROBLEM with your resort check out the state agencies for help."
- Sept. 1: --" Let
me see if I understand what that 22-yr
veteran mng is saying. Anyone who takes the time and spends the money to go to R.E. school and get a license through
FREC then goes and gets a job selling real estate on a commission, and most are, if they have a dispute with their
employer or broker over commissions, FREC will not look into the matter. Is that right? And also if an REA goes
to work for you selling deeded real estate and you have parcels to sell-- let's say a b c d e etc.-- if I can't
sell the custommer who has come in to see what I have, and they can't buy a b c d e because they can't afford it,
but they will buy d because they can. You would not let me sell it? But get a different sales rep at another desk
and let him sell it, and make sure that rep gets 5 6 and 7 times more money then you / I get after it was me who
really showed them what we have? You nasty nasty person. I still think FREC would take a dim view of this. Why
don't we ask them?"
- AND: --" Well I have read all of the
exit comments and while I am not in
management anywhere in the O Town area at the present I do understand both sides of the problem.
The first job of a front line salesman is to sell the total developers product. How is that done? It is done by
a competent professional salesperson who sells the product with the only objection being affordability. At that
point a T.O. comes in and kicks in the greed factor by dropping the price. This drop can only be done once effectively.
If the salesman or the T.O. keep dropping the price again the customer will say if I say no long enough they will
pay me to take it. It is for this reason Exit was started in the form of a lease.
The lease or exit person is a new face that can give a credible reason for the cheaper product. Recently the exit
product has become a bi-annual deeded property or in the case of one resort a tri-annual deeded property. In each
of these it is the hope of the developer that when the customer returns the customer can be up graded.
As for commissions they are limited in as much as the cost is lower. The important point is the fact that the front
line sold the customer. Unfortunately the customer could not afford that price. If the front line were allowed
to sell the exit the sale would not happen or worse the exit price would become the front line sale.
I have been in the Orlando area in TS since 1984. Unfortunately developers have created an us against them attitude
that started when the branded names got sales people to work for lower commissions. It also got worse when developers
let the marketing drive sales. A lot of this is due to the fact that a lot of upper management types have little
or no creativity in marketing. So they sit back and make their money while the front line guy suffers. However
before I pass out the tissues for a pity party lets look at the bottom line.
The average family of two wage earners in Orlando earn about $30,000 to $50,000 a year working 40 hours a week.
A starting TS single wage earner can make at least $35,000 to $45,000 working half as much and if he or she works
referrals in the second year they can almost double the income. It is still a great job."
- AND: --" Baloney.
Exit was created to sell trial memberships
for around $1000 or less to hook the tour into hopefully buying next year by giving then their money as a down
payment. And the TO gives several drops not just one. Salesmen are being sc---ed out of a sale. If you believe
the new false bs then why do they say to me if I had offered them that they would have bought from me. Or better
yet, they had seen the same offer at someplace else and say 'if you have that we want that program'. And I can't
sell it when you have it. Why did we get licenses? I agree: let's ask FREC."
- AND: --" It
is a bunch of crap having a exit program!!!
If you(developer)are afraid that the salesrep will drop to quickly to the exit program(lowering avg. sales price)
then let the T.O do it and PAY THE REP who put in 2 -3 hrs. Then if you want a dept. in place to go to the condo
when the people are in residence the salesrep can't bitch!!! in residence belongs to in residence.. 2 seperate
lines. However 2 seperate lines on first generation is a RIPOFF."
- Sept. 2: --" The
very worst thing about this business
is whiney timeshare sales reps. It is amazing to me that we sell anything. A good exit program is an essential
and effective marketing program. If you do not want lose them to an exit program, then SELL them!"
- AND: --" Then
let me and the TO as front line sales
be able to drop to the deeded property you have for payments of $95 a month or less when they can't afford payments
of $145 a month. Remember I DID SELL THEM... I DID SELL THEM... I DID SELL THEM... They just want a lower payment.
You're cheating me out of a sale!"
- Sept. 3: --" If
everyone uses this forum as an opportunity
to vent frustration, before long all of your ups will know that they should wait for the exit drop to buy anything.
Some discussions are better left for face to face, where they just may do some good."
- AND: --" you
mean to tell me that managment is listening?
But will they correct the injustice? Maybe they are afraid that we timeshare sales people as a group just might
sitck together. I wonder what they would do if the TO jumped aboard and instead of sending the up to exit brought
it down themselves and proved to the biggies that we don't need exit selling deeded property taking our commisions
from us. Let them go back to trial programs."
- AND: --" It
amazes me that any time we sales reps
address a real problem, management's only response is to call us whiners, losers and incompetent and their solution
is to tell us if we don't like it we should go somewhere else. How about just once you consider whether the gripe
might be legitimate and think about doing something to correct it? Or is it just waaaaaaaay too much to ask that
management do their job-- MANAGE?"
- AND: --" Actually
the problem is compounded by the fact
that in an in-house program (which I believe these particular resorts are concentrating on) the owners DO talk
around the pool and learn quickly about " the final drop" at exit-- so after 3 or more hours of COMPULSARY
touring many prospects are now going for the reward of a lower monthly (bi or tri) where the product is all-inclusive
in many ways, and eliminates annual maintenance payments. Even if a second face (what a sweet job!) comes in, the
sales rep is getting ****'d and demoralized out of his bread and butter. Since he is forced to hold at the higher
price anyway, the managers are in control. I know of people who have quit because of this indecent handling of
reps."
E-mail street@streettalkblog.com
ILLINOIS:
GALENA: WorldMark Galena will open its doors to guests on Saturday, August 30th.
This resort is situated near Eagle Ridge Resort's General, the most challenging of the four world-class
Galena territory golf courses. Each unit includes a fireplace, cable TV, dining area and a deck. One- and two-bedroom
units include fully equipped kitchens. The resort features a glassed-in indoor pool, spa and game room. If you
aren't familiar with it, Galena is a mining boomtown pretty much untouched by age since its mid-nineteenth century
heyday. Old homes and buildings have been meticulously preserved, and much of Galena today is listed in the National
Register of Historic Places. It's a neat place.
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MASSACHUSETTS:
THE BERKSHIRES: According to a public notice issued by the town of Hancock
recently, smoking is prohibited in all workplaces, including restaurants, and all public places, including
the common areas of timeshare facilities. It is also prohibited at all private functions held at any workplace
or public place and at bars. So essentially it appears that if you are living or visiting in Hancock, you can smoke
in your home and your car but nowhere else? Jiminy made its public areas smoke-free on May 15 and its work environment
has prohibited smoking since 1998. " I think it's a wonderful thing for our guests," said Sally Johnstone,
Jiminy Peak's director of marketing in an article in The North Adams Transcript. " It's kind
of fitting with the way that we feel about ourselves. We are skiers, not smokers."
At the risk of being politically incorrect and offending the self-righteousness of the anti-smoking squad, that's
a noble sentiment, but reality tells us that since some 20% of Americans are smokers then by deduction not all
skiers are nonsmokers. With as many as 4000 visitors to Jiminy Peak and Hancock on a busy winter Saturday, as many
as 20% of them smoke. Do they have to go out of town to light up? What about smokers who purchased timeshare in
the area resorts before the ban went into effect? Depending on how the ownership is structured, if an owner is
an owner in common of the resort's public spaces would there be an avenue for a lawsuit there? And if deeded timeshare
units are made nonsmoking after the fact, would there be an avenue for a lawsuit there as well?
- YOUR COMMENTS
- August 29: --" At
least you don't get fired for smoking
anywhere on the property."
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MISSOURI:
BRANSON: Missouri's aggressive Attorney General, Jay Nixon, has filed a
lawsuit against Bedford, Texas-based Grand Vacations International for " greatly misrepresenting the
benefits of memberships it sold in the Travel Service Network (TSN) that could cost consumers as much as $7,000." Grand Vacations’ Branson office is located at 1440 State Hwy. 248, Suite Q. They are, as indicated above, distributors
for the TSN (Travel Services Network) product. You can find the Press Release here: Nixon
sues Grand Vacations International for lying about benefits, terms of expensive travel club memberships
In February of this year the District Attorney for Johnson County in Kansas sued both Grand Vacations and
TSN under the Kansas Consumer Protection Act following a 12-month investigation conducted by his office’s Consumer
Protection Division. You can find the PDF press release about this at:
(external) http://courts.jocoks.com/FORMS/TRAVEL.pdf
In March of this year, the Kansas Attorney General filed suit against Grand Vacations for alleged violations
of the Kansas No-Call Act, the first such suit filed since the law went into effect last fall. Attorney
General Kline alleged that Grand Vacations violated the Kansas No-Call Act by making numerous unsolicited
consumer telephone calls to Kansans who were registered with the Kansas No-Call list, and for other offenses. Kline
asked that the court declare Grand Vacation's business practices as unconscionable and in violation of the Kansas
Consumer Protection Act. He also asked that the defendant pay penalties and investigative fees in excess of $75,000.
(An attorney for the company, in a Wichita Eagle article on April 8, blamed 3rd party telemarketers-- yeah,
the same old excuse. TSN no doubt disclaims responsible for these things too, and points the finger at its distributors.
It's always someone else's fault, isn't it? Of course Grand Vacations is far from being the only distributor selling
TSN for far more than it's worth.) You can find the press release about this action at:
(external) http://www.ksag.org/contents/news-releases/2003news/mar19nocall.htm
An online search of corporations in Texas shows the owner of the company as Michael Hayes. Who has reliable
information to share about Mr. Hayes? Who is running the deal in Branson?
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PENNSYLVANIA:
POCONO MOUNTAINS: Lower Towamensing Township, around the Blue Mountain
Ski area, has lost many jobs as factories and other employers shut down. They are looking at developing a tourism/resort
area to pick up the slack, and have drafted a plan for a new resort commercial district bordered generally by Little
Gap and Lower Smith Gap roads to the north, Eldred Township to the east and a line from where Blue Mountain Road
enters the township to Little Gap Road on the west. The zone, first proposed by Blue Mountain Ski Area owner Raymond
Tuthill in July, would permit uses such as condominiums for permanent and temporary lodging, restaurants, retail
space and other entertainment. Sounds like a nice possibility for timeshare, don't you think?
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SOUTH CAROLINA:
MYRTLE BEACH: The Sheraton Broadway Plantation is adding 30 two-bedroom
villas, a nine-hole minigolf course, an expanded pool and a 250-foot lazy river. Also in the works is a new poolside
bar and deli with outdoor seating. The additions should be ready by May 2004. The SBP was the first hotel-branded
timeshare resort on the Grand Strand and will have 228 two-bedroom villas once the addition is complete.
- YOUR COMMENTS
- Sept. 1: --" Finally,
a lazy river. Do you have any idea how
many people in the past have been pitched the lazy river? Too many to count. Certain reps (ones that are no longer
there, you know who you are) were famous for thier descriptions of the " phantom" lazy river. Too bad
those folks had to leave before the real thing was made available."
- Sept. 3: --" This
is for the know-it-all who said that
the Prior SBP reps pitched a phantom lazy river: Just to let you know, I helped open that resort in 1998. In our
training class by Lisa Hawkins, we were given a lay-out of the resort to show to the families on tour that included...A
FREAKIN LAZY RIVER!!!!! All of a sudden 10 months later after we told all our new owners there would be one, guess
what...another typical change in plans and suddenly we all were made to hand in those layouts, and a new layout
was given minus the lazy river. The lazy river was never to be mentioned again. But guess what, I still have the
original as I thought it might come in handy in case of a lawsuit by my owners. WANT TO SEE IT? I'll be more than
happy to send you a copy."
E-mail street@streettalkblog.com
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| Rumors Rumors Who's Got the Rumors? |
- Is there any truth to the rumor that ---- Golly, no juicy rumors this week!
(At least, none we could print...)
E-mail street@streettalkblog.com
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| Quotable quotes: " Give me your tired, your poor… we’ll triple-book and wire ‘em" —Anonymous |
| International: |
- MEXICO: Does Avalon Resorts really have properties in progress and
near completetion in Puerto Vallarta, Cabo San Lucas, Jamaica, and Cuba, or are the sales people lying about
it?
- MEXICO: Los Cabos is open, following a brush with Hurrican Ignacio
- INDIA: India, still in the fledgling stage of timeshare, now has over 50 timeshare
resorts. But there's a problem.
READ MORE in Street Talk International (Last Updated
August 29)
|
| Idle Thoughts: |
- •
A long-time reader of Street Talk was perusing Sunterra's 10-K filing
with the SEC and noticed, among other things, this paragraph: --" To
consolidate our exchange company alliances,
Sunterra announced on June 20, 2002 that it entered into an exclusive external exchange affiliation agreement with
II. This agreement replaced Sunterra’s existing agreement with RCI to provide exchange services for its Sunterra
owners. It also replaced the previous agreement between Sunterra Europe and II to provide exchange services for
Sunterra Europe’s GVC members. We
believe that II’s desire to complement rather than compete with its developer clients coupled with its quality resorts, service, and experience with
the leading brands is an advantage of this new relationship, although there is no assurance that II will not compete
with developer clients in the future." (emphasis ours). We know some other resort companies have switched
to II for pretty much the same reason. What do you think?
There's a lot of interesting stuff in that 10-K and we'll probably be talking about some of it in the future.
(Like, for instance, Sunterra's practice of borrowing money at around 5% and financing purchasers' loans inhouse
at an average of 14.7%. You should not think this is common only to Sunterra it is common to the timeshare industry
at large and to industry in general. Why do you think developers will take a minimal down and stretch out the payments?
Why do you think they don't encourage cash deals? Why do you think they'd rather you didn't suggest that someone
might want to take out a cheap equity loan and cash out to save money?)
• Y'all are just not understanding
the value of the Internet to your total well-being as a company. It isn't just a matter of having a Web site
and then waiting for the sales to roll in (won't happen). It's part of your overall marketing and PR program, and
must be aggressively maintained and nurtured and developed. It would help, of course, if you had someone who actually
DOES understand how to use it to its full potential, but while you dither around about it you should AT
LEAST keep your current Web site updated. How do you think it affects potential purchasers, or people thinking
about exchanging in, if they go to your company Web site (and they will) and find old, outdated or partial information
on it? This is not good.
And the worst thing is that usually the biggest Internet foes in your organization will be your marketing professionals.
Why? Because they don't know how to use it, don't want to learn, and feel threatened by it. Kind of like the guys
selling buggies after Ford developed his assembly line for cars...
Using the Internet works. We've proved it Marriott has proved it a very few forward-looking marketing pros
have proved it. Where are YOU?
E-mail street@streettalkblog.com
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