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STREET TALK:
Week of March 7 - March 13, 2003
" If you don't want it printed, don't let it
happen."
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
Street Talk International
Our basic credo is simple: The first time we catch you lying to us you're dead meat and
there are no sacred cows.
While the telemarketing industry is busy insisting that they will comply with new
laws and that they certainly don't want to call people who don't want to be called, they are just as busily finding
ways around it. For instance, Castel Inc., a maker of automated dialing technology, boasts its DirectQuest
software is immune to the TeleZapper, a $40 gadget designed to thwart sales calls by faking the 3 shrill
tones of a disconnected number. Millions of TeleZappers have been sold to people who are trying to avoid being
called by telemarketers.
Castel has been mailing brochures to telemarketers and other prospective customers touting their software, which
also includes a feature that lets salesmen transmit any phone number or text message to residents' caller ID displays.
That component allows DirectQuest to dodge such phone company privacy services as SBC's Privacy Manager and Sprint's
Privacy ID, both of which reject calls that don't provide caller ID information. And of course it also allows telemarketers
to give phony caller ID information, very handy for the scam artists out there.
The software is built for the high-volume " predictive dialers" that use multiple lines to phone residential
numbers and connect salesmen to people who answer, and costs about $2,700 per calling operator.
Mmhmmmm. We'd bet some of you are signing up for this post-haste. Tell us again how ethical you are and how
the timeshare industry has cleaned itself up?
YOUR COMMENTS:
March 7: --" First of all if a customer
has a telezapper then I am glad. I will
not have to waste operator time on a customer who will not purchase a mini vac. I sure try to comply with no call
lists, because they are the reality. However timesharing is just a tiny portion of the telesales industry. Here
in Missouri they have collected at least $500,000 in fines. Of course they have not figured out how much it cost
to collect them. (millions) With state revenues at a low, we are still putting people out of work and eliminating
their benefits. With these revenues down the state decided to lay off 800 workers to compensate for less sales
tax, and payroll taxes collected. So they laid off 800 corrections officers, police officers, firemen, and teachers.
Not one administrative aide, or appointed bureaucrat. So obviously many of us do not want to be disturbed at dinner
time, but at what price?"
E-mail street@streettalkblog.com
A COMMENT FROM YOU: --" I now know why the
timeshare industry has a bad reputation.
After reading your web based publication, it appears that timeshare agents are more concerned with slandering their
fellow workers and past employers than working on improving their occupational skills.
It is very obvious that comments which appear are the work of low level individuals who are only interested in
spreading gossip and damaging reputations.
Being as this email contains no gossip or slanderous remarks, I will not expect to see these comments appear in
your rag."
- YOUR COMMENTS:
- March 7: --" Perhaps
there is some of that, but for the most
part it serves to root out the scum and hold their feet to the fire. I applaud."
- AND: --" Ouch!
Did somebody get stung? I think so.
Hey Street!! Aren't you going to get on that person's case for calling TS Beat a rag?" From The Street: Did that person call Street Talk a rag, or The Beat a rag? It isn't clear. Anyway, if y'all
can stand being called `low level individuals' we can stand being called a rag... -)
- AND: --" I
enjoy surfing around the beat and the
links. Street talk is one portion that I also enjoy. I don't like it when the comments put marriages or personal
relationships at risk, since that seems a little " below the belt" . I think that folks seem to have tunnel
vision sometimes. Our industry is the real estate development industry. But as businesses we have probably the
same amount of problems relating to employees mis conduct as other industries. Could you imagine if politicians
had such a publication? It would probably be the most interesting thing in the world! I think that StreetTalk does
a pretty good job of editing out the out and out slander, one could only imagine the stuff they get."
- AND: --" All
Industries are merely a collection of people
from the populace. If they all changed jobs tomorrow, would that mean it all ends? I'm sure you will find similar
comments in every workplace. That's what freedom of speech is all about, we take the good with the bad. Keep doing
what you are doing Street Talk, we will decide what is good and what is bad for ourselves. It isn't all bad."
- March 8: --" This
is so true, we do spend more time bringing
out all the dirty laundry in this industry than time trying to build its reputation as a positive one. Most major
corps keep all the " crap gossip" stuff under wraps. Harrasment, favoritism, and straight out lies happen
in ALL offices, can we please try to talk about some good that people in this industry do on a day to day basis!
Don't make my job any harder than it already is trying to get that damn sour taste out of my prospect's mind about
the 5 hour high pressure tour they took way back when and got a damn toaster for it !!! Let's practice being a
reputable industry for a change ... please ?!!!!"
- AND: --" The
difference between us and a lot of other
industries is the amount of money at stake. We're trying to separate people from thousands of dollars in a few
hours, which unfortunately draws some unscrupulous people into the ranks. Those people need to be weeded out and
the companies that silently endorse their tactics by allowing it need to be put on notice that they have to be
more careful about who they hire. Even good companies hire bad people, and even good companies blow it sometimes.
By making it public I think Street Talk performs a valuable service to the TS community. If the business doesn't
want their dirty laundry aired they ought to clean it up for real, and not just keep putting more lipstick on the
same old pig."
- March 9: --" If
you have been in the industry for any
length of time you have obviously met a wide " mix" of people. I find the Beat to be entertaining and
a way to keep updated on the latest industry " scoop" . About those articles that trash others, they are
probably people that have not been in the business very long and don't have the experience that a lot of us do...
the positive is they can use the site to vent. Most pros I know either resolve the issues they have and stay where
they are or move on. Peace."
E-mail street@streettalkblog.com
More and more hospitality companies are adding timeshare to their lodging mix in order to
take advantage of timeshare's double-digit growth, and its stability during lean times. Marc Falcone, a
gaming, lodging and leisure analyst for Deutsche Bank in New York, predicts that timeshare divisions will
eventually contribute about 10% of a hospitality company's annual profits -- up from an estimated 6% to 8% today.
“Hotel companies believe it's a business that has significant growth prospects, particularly in markets like Hawaii,”
Falcone says. “They're committed to growing the business as long as the demand is there.”
For example, Marriott's 2002 timeshare sales accounted for 14.3% of the company's overall $8.4 billion in revenue
last year, a 6% increase over 2001. The timeshare division of Starwood Hotels and Resorts Worldwide recorded $98
million in earnings before interest, taxes, depreciation and amortization (EBITDA) on revenue of $363 million in
2002, or a 27% EBITDA margin. Compared with the prior year, EBITDA increased 42.4% while revenues rose 6.7%. Timeshare
EBITDA accounted for about 8% of the company's overall 2002 EBITDA of $1 billion, and timeshare revenues accounted
for 9.3% of Starwood's $3.9 billion in revenues.
With this trend continuing to grow, and consolidation within the industry becoming the norm, what does the future
hold for the smaller independent developers? In places like Las Vegas and Hawaii, for instance, how long
can companies like Diamond Resorts and Consolidated Resorts continue to compete?
E-mail street@streettalkblog.com
A comment from you: --" It
is a lot of fun to talk about all of the problems
that are going on in the biz but I think it would be a great idea if we had more people doting on their resorts
if they are worthy. I have been in the biz for a few years now and have unfortunately seen some of the bad side
firsthand. I feel it would be informative if we all shared the good resort stories so that salespeople that want
to work for a great company know who we can go to. I love this product and wish I could find more resorts that
believed in its benefits rather than the heat and everything goes sales mentality. What if any tracks are not cherry
picking, covering heat, and really selling it honest???"
Well, how about it? NOTE: This is not a license to advertise your resort for free, and keep in mind that
if you pitch heat about it, someone who got burned is sure to burn you back-- so be careful with your responses...
- YOUR COMMENTS:
- March 9: --" ...here's
a little positive feedback for a change.
Recently, I made the choice to leave a brand developer by Sea World. After only 2 weeks I realize I've made the
right choice. I wanted to comment on Darryl Lake (DOS at Fairfield) and Errol Gillett (sales manager) and how they
treat new hires. When I recently interviewed for a sales/sales manager position I was blown away by the professionalism
that I experienced during my interview. Both managers spent a great deal of time getting to know me and my future
career goals. What I found most amazing, they wanted to assure that I would blend well w/ their existing high producing
staff. Believe it or not, the staff at Cypress rarely turnover and seem to enjoy their jobs very much. They were
also patient, I wanted to be as sure as possible that it was the right time and place for me. What I've found refreshing
is that there are managers that do care for their staff. I have worked for Fairfield for only 2 weeks and find
the surroundings as good as it gets in O Town. The staff and managers all work together to make " it" happen."
E-mail street@streettalkblog.com
 Richard
" Del" Delfino - Jan. 11, 2003
It
is with sorrow that we report the passing of Richard
De Meglio (a.k.a. Richard Delfino), who died on January
11, 2003 in Covington, Louisiana. Del suffered heart failure following four operations for an intestinal infection
during an eleven week period in ICU.
He is survived by seven heartbroken children who want to tell anyone in a similar situation within the Timeshare
community that it is never too late to contact your family to make things right. |
|
E-mail street@streettalkblog.com
| IN THE WESTERN Half of the USA: |
ALASKA: How much time have you got? If all goes well, Juneau might
get some timeshare going-- eventually. Goldbelt, Juneau's urban Native corporation, has big plans (which
will need investors). Goldbelt President Joe Beedle has plans for development along an 8-mile stretch of
road on the back side of Douglas Island: The first " node," close to Outer Point, will be a combination
tourism, recreation and residential area. It will feature a clan house for shareholder use, shore excursions for
cruise ship passengers bused from downtown, and a dozen cabins for lease - all designed for a low-impact, natural
setting. It should be ready this year.
At Inner Point, two miles farther down the road, Node 2 will be an industrial area meant to accommodate a possible
Coast Guard facility relocated from downtown, a cold storage facility, an ice plant, a fuel depot, facilities for
state ferries, a scrap-metal transshipment point, a haul-out for small yachts and a small-boat harbor. Target date:
2006.
Down the road and four years later is Node 3, a place for condos, townhouses, timeshare units and a small
yacht club facility. A breakwater for the area has already been designed. But don't hold your breath. The opening
date for the timeshare component might not be until 2010 or 2012. Still, Beedle is optimistic. " This could
be the first place in Alaska where a timeshare could work," he said.
E-mail street@streettalkblog.com
COLORADO: American Skiing Co.'s latest push
to sell fractional ownership in the Steamboat Grand is producing results. Fourteen transactions totaling
approximately $750,000 closed in early February. You may remember that ASC announced in December last year that
it had hired a new 15-person sales staff and would begin selling eighth-share interests instead of the quartershares
it had marketed since the hotel opened in October 2000. An ASC executive said the company had closed $37 million
in sales as of December 2001. Sales languished throughout 2002 with only a trickle closing. The most recent momentum
has come about as a result of ASC renegotiating the terms of a loan with Textron Corp., with the new terms
establishing a marketing budget to reinvigorate sales.
E-mail street@streettalkblog.com
HAWAII:
OAHU: Ko Olina developer Jeff Stone is trying a second time to get a $75
million tax credit to build a humongous outdoor aquarium on the 650-acre resort. Once that tax credit is approved,
he says, both Hilton and Ritz-Carlton immediately will begin construction of combination hotel and timeshare
developments, while Hyatt and Intrawest will begin construction within 18 months. But until there is an
attraction there, such as an aquarium, the hotels won't come.
Last year Governor Ben Cayetano vetoed the tax credit. But Hawaii has a Republican governor now, Linda
Lingle, and she has already said she approves of the project. Get those new hotels in there and Ko Olina will
achieve the critical mass it needs to be a serious destination resort. That wouldn't hurt Marriott's timeshare
resort there, either, which has been experiencing some degree of difficulty because it is still so isolated.
Ko Olina, out on the sunny western side of the island, is a project whose time has finally come. Attractions other
than golf and beautiful beaches will certainly be an asset. But one of the greatest assets it already has is that
it is not Waikiki.
E-mail street@streettalkblog.com
NEVADA:
LAS VEGAS: The reps at Pacific Monarch's resort are giving their
new VP Joe Hutchings some time before they pronounce sentence on whether or not their situation will improve.
So far they report that nothing much has changed, except that prices were raised and commissions lowered. We are
informed that Joe did indeed give his standard " I am the God of timeshare in Las Vegas" speech when he
was first announced as the new Grand Poobah and that he has been elaborating on it ever since. We are also told
that, contrary to his original assertion that his son Brett was not being hired as head of marketing, Junior
was officially introduced as " Director of Marketing" in late February and is on the premises on a daily
basis. He also speaks in the absence of his father at the morning sales meetings. To us, that seems to indicate
that he is, yes, the head of marketing.
Odds are being given as to how long it will be before Joe brings in his old cronies, which was his M.O. at Epic
and Fairfield during his reign at those resorts. The big money is being laid on odds that Bill Stoddard,
who was Joe's 2nd hand man for many years, and who is currently still with Fairfield, is likely to arrive and be
appointed as PD within the next couple of weeks. (Stoddard's daughter has already been on site and is expected
to be going on the line shortly.) Two additional cronies, Ralph Madeiros and Frank Droze, are also expected
to arrive in due course. (Assuming, of course, that Fairfield doesn't decided to enforce their non-competes.) There
is nothing unusual or particularly sinister in bringing trusted compadres with you to a new project, but to the
reps who are already there it always stinks.
Meanwhile, Westgate's proposed 54-story timeshare development, planned for the
Las Vegas Strip, is being kept on the back burner for now. Clark County Commissioners have postponed consideration
for rezoning for the project, which will be the tallest occupied building in Las Vegas if it ever gets built. The
project would be adjacent to the MGM Grand resort and the Showcase Mall. New date for discussions:
March 19.
E-mail street@streettalkblog.com
| IN THE EASTERN Half & Midwest of the USA: |
MINNESOTA: Todd Lynch's Vacation Galleria finally caved
in to government pressure in Minnetonka and closed the doors to their operation there on Feb. 28. Of course,
they didn't tell any of the sales reps that this was coming and kept them working up to the last day, when it became
a case of " too bad so sad" ... Next...
Says one source: --" they owed too much money
to the attorney general, who lowered their fines but told them they had to leave Minnesota so they threw in the
towel. They sent up Mark Hillman, old Epic crew, he brought checks (wasn't that nice), even though they knew since
Tuesday and let us work to Friday. Anyway, we had a lot of memories there starting back to Epic. It is closed for
good, it will be missed. There was some good and loving people there, especially Barry Freeman the last PD there,
he was the coolest. We love you Barry."
Word is that Lynch will be opening new stores in other states, and that they will be operating under different
names. That sounds fishy to us. Why different names? Does that sound like an attempt at obfuscation to you?
E-mail street@streettalkblog.com
PENNSYLVANIA: Developer Frank P. Carr
III diverted $9.3 million of Ski Side Village timeshare assets in the Pocono Mountains, according
to the court-appointed custodian of the owners association. The Ski Side Village debacle has been an ongoing case
with so many twists and turns that if it weren't so serious you could make a successful detective comedy out of
it. But if you want to see all the stuff that Carr is accused of, check out this article in The Pocono Record:
(external)
Court gets report about squandering of time share funds
E-mail street@streettalkblog.com
MISSOURI:
BRANSON: Branson annually attracts more than 7.5 million visitors and is ranked
16th among all overnight leisure destinations in the United States. Not too bad for a little ol' place in the Ozarks,
so close to Arkansas. Now, to make it an even bigger destination, the City of Branson and Branson-based
developer HCW Development Co. are preparing to move forward with development of a $300 million entertainment,
retail shopping and convention center that will stretch for a mile along the shores of Branson's scenic Lake
Taneycomo. One of the principals of HCW is Rick Huffman, who is also the developer of Grandvista
Resorts.
By the way, is it official? Is Wayne Schilling the new president of Grandvista Resorts or not?
- YOUR COMMENTS:
- March 7: --" Wayne
Schilling IS the new President of Grandvista."
- AND: --" ...All
timeshare `smoke and mirrors' and `old
school' timeshare sales approach and tricks."
- AND: --" He
won't be wearing his pink suit in Branson,
will he? Tell us monkeys it ain't so."
AND, has Randy Parker been given the PD position at Sunterra in Branson?
- YOUR COMMENTS:
- March 10: --" Word
is that he took over officially this
morning. A contigent of ex Spinnaker folks went over there, and Randy is upbeat about the whole process. It's nice
to see that deal power up again."
LAKE OZARK: The first fully completed Private Quarters villa was officially
unveiled to owners February 22 and 23, in Lake Ozark. The Private Quarters Club at Porto Cima is one of
few fractional real estate properties available within the United States that offer golf as the primary feature
and the only one of its kind within the Midwest.
Membership in the Private Quarters Club includes shared ownership of a luxury 2000-sq. foot, 2-bedroom, 2-bath
golf villa overlooking the 18th hole of the Jack Nicklaus-designed golf course. Private Quarters does not affiliate
the product with an exchange company (i.e.: RCIl or I.I.). They do, however, propose to add additional destinations
to the club, providing additional locations to complement the members’ experience. Porto Cima is a Four Seasons
Group holding and is located near the famous Lodge of Four Seasons.
E-mail street@streettalkblog.com
SOUTH CAROLINA:
MYRTLE BEACH:  If you want a good chuckle: Quoted directly from ARDA's website:
- " The following individuals have demonstrated
their commitment to high ethical and professional standards through long-term participation in the educational
and industry-related activities. The RRP designation publicly recognizes the high professional standards and commitment
to excellence possessed by its holder. (Last updated 12/1/02)"
Why is that funny? Well, we spotted a bunch of known slugs on their list of RRPs (Registered
Resort Professionals). But the big guffaw comes when you scroll down to the " R's" and
there he is: Nigel Russell, RRP (hahahahahahahohohohohoho, stop it, you're killin' me!) For information about
Nigel " Mr. Scam on the Lam" Russell, (who is now Mr. In-Jail No-Bail) Click
Here Updated March 7
HILTON HEAD: If all goes well, Marriott will be building a new 278-unit
timeshare resort in the mid-island Chaplin area off William Hilton Parkway. At the earliest, construction could
begin sometime next year, so don't pack your suitcase just yet.
COLUMBIA: The state Supreme Court has rejected a move by Beaufort County to get
more tax money from timeshare owners by ruling that the way timeshares are taxed is constitutional. The
county filed a lawsuit in 2001 against the state, arguing that the state was violating the South Carolina constitution
by using different methods to determine the value of similar properties, such as timeshares and vacation homes.
But the state Supreme Court said that state lawmakers could come up with different methods to determine the value
of similar properties as long as the " assessment ratio" was the same for a class of properties. Had the
county been successful in its suit, it would have been able to substantially increase its overall property tax
revenue.
For example, a timeshare unit that is now valued at $65,000 could have been valued at about $200,000, according
to Beaufort County Assessor Bernice Wright. The annual tax bill on such a property would have increased from about
$859 to $2,642, using an assessment ratio of 6 percent and a tax rate of 220.2 mills, which, Wright said, is the
tax rate used for a property on the south end of Hilton Head Island.
In total, county officials have said they would have been able to collect between $1.8 million and $3.8 million
in additional property taxes on time shares if the lawsuit had been successful.
Were ARDA's attorneys in on the fight against that lawsuit?
E-mail street@streettalkblog.com
| Rumors rumors, who's got the rumors... |
- Is there any truth to the rumor that Mark Post, CEO of Pacific Monarch
Resorts is buying out his partner, COO Nick Baldwin? Or was the picture of the two of them that used
to adorn the wall tour at the resorts just removed in preparation for a newer photo? See how easy it is to get
a good rumor going? Just take down a photo and watch...
- Is there any truth to the rumor that " Dragon Master" Ed Rybar,
who has allegedly been fired at least 3 times for pitching heat, has been reaccepted to Trendwest?
- YOUR COMMENTS:
- March 9: --" Gee,
we didn't know about the " Dragon
Master" title. We just called him " Special Ed."
- Is there any truth to the rumor that Carol Beard and a male companion have
been working a phony timeshare resale deal on eBay? Word is they've been operating out of a trailer in Russellville,
Arkansas. Anyone have solid information? And yes, we believe this is the same Carol Beard who is at war with
Westgate over unpaid reserves. These are two separate issues, so don't even go there.
- OFFICIAL UPDATE: The male companion is Charles Wray. He has allegedly
signed a confession that he was the one working the phony timeshare resale deal out of Springfield, MO and he is
apparently in jail in Russellville, AR. Carol Beard was dating him at the time but claims she was not involved
in the scheme. She has not been charged.
E-mail street@streettalkblog.com
|
| Quotable quotes: " A despot doesn't fear eloquent writers preaching freedom - he fears a drunken
poet who may crack a joke that will take hold." —E.B.
White (1899-1985) American author, editor |
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| INTERNATIONAL: |
|
E-mail street@streettalkblog.com
|
| Idle Thoughts: |
- At the Company’s Annual Meeting held on May 25, 2000, Cendant's Henry " PacMan" Silverman said: " One-third of the travelling public in the U.S. uses one of our brands every year. Just
think about that -- 33% of anyone who travels, stays with us, stays in an RCI resort or drives an Avis car. It
is a huge, huge scale. 25% to 40% of all home sale transactions in the U.S. take place with either a franchise
broker or someone affiliated through our relocation network and one quarter of all cars rented in the U.S. go through
Avis." He called the launch of the Global Points Network, later renamed RCI Points, " an enormously important
initiative at RCI" .
- Question: If the industry stats are correct that 85% of timeshare owners are satisfied with their purchase,
and that figure has remained stable for many years, why did RCI feel the need to invent its Points program to improve
owner satisfaction?
And who were all the unsatisfied people RCI talked to who asked for more flexibility in timeshare exchanges? Did
they call you up and ask if you would like them to offer a Points program? They didn't call us, either.
- Galileo International, a leading global distribution services company owned by
Cendant, has announced that four additional travel agencies -- Casto Travel (California), Royal Travel & Tours (Michigan), Conference & Travel Services (Indiana) and Berkshire Wyomissing (Pennsylvania) -- are now
participating in the Company's Momentum pricing and promotions program, which went into effect March 1. Among the
incentives for joining this program is that you get double commissions when booking RCI Holiday Network
vacation rentals. That's a pretty darned good incentive.
- Due to pricing and Marriott's quality making it difficult to offer a moderately priced
product, could we soon see the rebranding of Horizons by Marriott in Branson and Orlando to
Marriott Vacation Club resorts and the Gatlinburg project built directly as a Marriott Vacation Club
property?
E-mail street@streettalkblog.com
|
| People on the Move: |
- John DelGrosso has been named Project Director for The Cabins at Green Mountain
and the Lodges of Maple Creek in Branson, Missouri. Paul Dioguardi has been named Director of Sales.
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Street Talk International
|
Street Talk is a compendium of tips, facts, gossip, rumors, speculation and editorial comment
provided by The Timeshare Beat as an outlet for the free expression of its readers and for their entertainment.
The Timeshare Beat makes no assertion as to the veracity of the items contained herein. If erroneous information is inadvertently included and a correction to this information
is subsequently sent to The Timeshare Beat, the correction will be prominently published. Opinions published within Street Talk are the opinions of the authors thereof and are
not necessarily the opinions of The Timeshare Beat.
THIS COLUMN CONTAINS OPINIONS, RECOMMENDATIONS, STATEMENTS AND INFORMATION PROVIDED BY THIRD PARTIES. THE TIMESHARE
BEAT DOES NOT REPRESENT, ENDORSE OR GUARANTEE THE TRUTHFULNESS, ACCURACY OR RELIABILITY OF ANY OF SUCH CONTENT
POSTED BY SUCH THIRD PARTIES, OR ENDORSE ANY OPINIONS OR RECOMMENDATIONS EXPRESSED BY SUCH THIRD PARTIES. ANY RELIANCE
ON CONTENT POSTED BY THIRD PARTIES WILL BE AT YOUR OWN RISK. CHANGES ARE PERIODICALLY MADE TO THIS COLUMN AND MAY
BE MADE AT ANY TIME. |
|
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