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 STREET TALK
Week of September 26 - October 2, 2003
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"
The world's biggest after-hours timeshare
watering hole."
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 big news is that you telemarketers out there may have gotten a reprieve. U.S.
District Judge Lee R. West has decided that the FTC overstepped its authority when it created a national
do-not-call list against telemarketers, which already has over 50 million people signed up. The judge found
that Congress had never given the FTC specific authority to create such a list or enforce penalties against violators.
The FTC has filed a motion to stay the judge's order pending an appeal that will be filed in Oklahoma federal
court. Meanwhile, the FTC said Wednesday consumers may continue to sign up for the registry, and telemarketers
may continue to access area codes in the registry while the motion to stay is pending.
The House of Representatives and the Senate, in a display of unaccustomed speed and solidarity, have already
voted to give the FTC the authority for the list. But even if an appeal goes all the way to the Supreme Court,
your reprieve is probably only temporary.
And remember: all those individual State do-not-call lists are still in force. (And check out this week's political
column, Potomac Crossings: Do-Not-Call
Registry is Off, On, Off Again )
Make hay while the sun shines, boys and girls...
- YOUR COMMENTS
- Sept. 26: --" Not
so fast. The short delay imposed is
just that, a short delay. Congress has voted authority to the FTC with only eleven 'no' votes. Never mind this
short delay though, the State laws stand as is.Telemarketing firms better hope the fed regulations are back in
place quickly, because it takes precedence over state laws, which are in some cases tougher on violators.
If anything, the steamroller is gathering speed. Next stop is SPAM. And that's no joke.. The California Senate
has already voted for a very aggressive opt-in law, and this is a done deal. The rest of civilization is not far
behind. And Spammers can forget about seeking refuge elsewhere . Unlike telemarketing laws, other countries are
way ahead of our tolerant attitude toward spam. We are just playing catch up. Check this million dollar fine out:
http://pcworld.shopping.yahoo.com/yahoo/article/0,aid,112627,00.asp .
- AND:
--" The bigger news is that the Colorado verdict is that the rule violates
free speech. This could be used as an affirmative defense against the state lists."
- Sept. 27: --" Violation
of free speech? Since when does ANYONE
have the right to invite themselves into my home and say what they want, without my approval and consent. That
intrusive attitude is precisely why the telemarketing industry is breathing its last gasp. And long overdue."
- AND: --" Hey
Gang, it's not about the law here. It
is rather about the sentiment of the people. THEY DON'T WANT TO BE CALLED! That doesn't mean they don't want to
be marketed to. I hear about people and companies wanting to somehow " get around" legislation.Why? In
this day and age you have plenty of other ways to get to your market, other than telemarketing! Internet, traditional
media outlets, convention events (with permission to call marketing).You better change or you will die! Accept
the list, call people who do not register, but don't ignore the will of the people. They are your customers."
- AND: --" The
will of the people? Think again. It
would " Seem" to be the will of the people to not want any telemarketing calls but it is more like the
will of the Politicians and media. The media " hyped" the DNC to a frenzy point and made everyo ne " want" to put their names on the DNC list. Then you have the " exemptions" which include charities, POLITICIANS
and others. If it was the will of the people to not be called at " dinner" then why all the exemptions?
Why not NO CALLS AT ALL? Don't kid yourself, If the politicians had to live by the same rule for their fundraisers
do you really think this law would have passed? Why do you think the media (radio, TV, Newspapers) " hyped" it so much. BUSINESS!! They're hoping if telemarketing dies, they will receive more advertising dollars from these
companies. If everybody wanted to be on the DNC then why are the telemarketing companies STILL calling and STILL
closing. If people weren't still responding the telemarketing companies would simply stop on their own."
- AND: --" It
is not just our industry, real estate
agents calling from their homes, call a for-sale-by-owner. If he is on the list, $11,000. Insurance agents, $11,000.
Owner referral programs 1/2 volume. I personally will end up laying off more carpenters and sales agents than telemarketers.
You may not like to be called, but can we afford any more hits to our industry, or employment in general at this
time. Remember it was popular in Germany to nationalize the property of Jewish citizens and to incarcerate them.
But was it right? Our politicians aren't looking to the future farther than the next election. The courts were
right, Freedom of speech is freedom of speech, whether or not you like the message."
- AND: --" The
Colorado federal judge ruled that the
DNC law created two classes of telemarketers: for profit, and not-for-profit, with different rights under the first
amendment. The Direct Marketing Association has been making the case since the DNC was created that this would
be a violation of the first and/or the fourteenth amendments. Why should non-profits and political campaigns have
the right to invade the home via the phone, if for profits cannot? You can't have two classes of people with different
rights regarding the same activities. The DNC may have gotten through legal review more easily if Congress hadn't
wanted to protect their own ability to contact people by phone. They know telemarketing works and assumed it was
a first amendment issue if the call was political, so they exempted political calls from regulation, expecting
it to possibly get through legal review. They didn't think it was a cinch to get through - just good politics to
focus everyone on their attempt to solve this petty nuisance instead of other items on the political agenda like
energy, the budget deficit, the war, homeland security, health insurance, medicare, social security, immigration,,
etc.. They got their Washington friends in the non-profits a loophole too. They just abandoned everyone in business
to get there and create this straw dog to try to look like heroes. They can't single things out like that. The
whole issue is uncomfortable legal ground, if it is politaclly useful. You can't have two classes regulated differently
for the same behavior, and you cannot legislate out the first amendment from political speech. I can't imagine
an appeal of the current ruling getting reversed by the Supreme Court, even in the current " telemarketing
is evil" regulatory environment. I'm no advocate of unlimited telemarketing, especially at dinner hour, but
there is a price to pay for some of the freedoms we hope to preserve. One of the prices is that if you have a phone,
someone can call you."
- Sept. 28: --" Who
cares??? Why would I want to waste my
pitch on someone who has made it clear that they don't want to hear it? As a telemarketing vendor, I could care
less."
- AND: --" I
think the prudent thing to do is to
use cell phones for all personal communications between my friends and I. My home phone will be placed on " call
forward" to some judges house or anyone else that wants me to be disturbed no matter what time of day it is.
Let the Judge take and handle all these telemarketers for me. He/She can make sure that Free Speech is not violated
along with my Free Hearing."
- AND: --" Not
many NQ's signed up, nobody was soliciting/aggravating
them in the first place, you can still get through to them."
- AND: --" Even
if the National " Do not call list"
gets shot down, the damage is done. You don't honestly believe that those that were originally on the list are
going to do anything but slam the phone down harder do you? the whole thing should be a wake up call for us, business
will NOT return to normal with or without a list. The message is clear, an abundance of people are sick of being
solicited this way, including US!, we hang up too! unless you want to believe that everyone in our industry stays
on the phone with whomever calls."
- Sept. 29: --" Has
anybody thought about the far reaching effects
of the DNC? What is the total number of expected layoffs due to the DNC? Hundreds of thousands? If hundreds of
thousands of people are unemployed, then hundreds of thousand of people will cut back on their disposable income
spending. They will spend less, they will revert to thrift shopping, they will collect unemployment. If hundreds
of thousands of people stop spending money (or stop spending as much as they used to) on things like dining out,
personal toys, toys during holidays and birthdays, home improvements, cars, vacation and travel, then this will
surely impact the livelihood of all other segments in the working world. Manufacturers will slow down manufacturing
leading to cut backs. Auto, home, toy, manufacturers will all trim employment to cut their losses. The airline
industry will again cut back (can it really withstand such another blow?). Hoteliers will feel the impact of less
money spent on vacations. Where do the phone companies stand on this issue? With 35 employees, well over $10,000
is spent monthly in long distance service. Peanuts, compared to call centers with hundreds of employees. Not to
mention the technicians that service a minimal 10 trunk lines. How about the companies that try to stay current
with technology and are continually developing new and better equipment? You know where this is all going, right?
Further unemployment. God forbid any politician have one of his/her telemarketers call me and ask me for money.
I feel sorry for the telemarketer representing a politician and calling me looking for support and a donation.
Take my name off your list! And from this day forward I will go to the library and get my news updates for free,
I will no longer financially support any media that employs shallow minded columnists that cannot see through the
smoke."
- Sept. 30: --" Take
it from A telemarketing manager who
bought timeshare. The Economy will lose millions and travel will be at an all time low. I know many of my mini-vac
sales reps who have bought into various vacation ownership programs. If any of you marketing directors do surveys
of what profession your buyers are in, I would love to have a percentage of those that are in call center sales.
And that may relay to some of the whiners out there, who could just say " take me off your list" and not
put thousands out of work and have their families begging the government for help making our economy even worse."
- Oct. 1: --" If
the words " Take me off your list"
worked then we would not need a DNC law. Unfortunately, the only thing that happens is the list you were on gets
sold to someone else's boiler room and there is no peace. You know damn well that the abuse continues so quit acting
sanctimonious for the sake of the telemarketing industry. Your statement rates up there with a timeshare rep defending
the use of " no heat, no eat"
- AND: --" The
DNC? The judge determined it was unconstitutional
because it still allowed charities and political parties to call. Look on the bright side. THEY should not be allowed,
either. Those calls are just as intrusive. As far as people being out of work. Give us a break. There will be alternate
ways to chase folks. The world didn't come to an end when the horse, as a transportation device, faded from the
world's economy. So, accept the DNC, and hope they include the political parties and charity hucksters."
- AND: --" It's
the old school, blinded folks who can't see
past their nose, that have an imbedded preconceived misconstrued perception of the " take me off your list" .
If you actually tried it, more than that one time, you will find that it does indeed work. Telemarketing has changed
over the years. Yes, of course there is a focus to be assertive, but there has been a shift to more socially acceptable
relationship sales. You may not purchase the product the first time, but intelligent directors of marketing understand
that, and know it may be the second or third time that a purchase will be made. Now, does it really make sense
to treat people like shit, whether on site or on the phone, and expect them to do business with you again? And
many large organizations have subsidiaries that rely on this relationship sale in order to have you do business
with their sister companies. And as far as " no heat, no eat" , it has no bearing on telemarketing, it
is worldwide in sales. Visit a car lot. And if you dissect any occupation, you will find the most common bottom
denominator to its success is sales, I don't care what it is you do. Wake up and smell the coffee, the economy
will suffer. And for the record, I don't like being called at home either, I just have a better understanding."
- AND: --" Who's
that knocking at your door?" Who's
going to stand at your door and keep people off your porch? You will be approached everywhere. The OPC industry
is going to make a giant comeback. Who's going to pay for all the additional families on welfare? Section 8 housing.
State funded medical and dental. Food stamps? Maria Cantwell, Washington State Senator say's she spearheaded this
from day 1. Why can she call? She has so much empathy for the little people and their ability to have control over
their phones. Charities too believe everyone should follow the same rules. Nobody should be able to dictate, them
but not us. Period. They advertised this as free. How much are our taxes going to go up? We have gotten no reports
on the damage this is going to cause and the money it is going to cost us. I promise you this it is not free. It
is going to have a huge impact on our economy. I know everyone I talked to who is on the list, didn't think about
the people they were putting out of work and didn't realize that they were still going to get calls at the dinner
hour. They were led like sheep with no facts or figures. Nobody is asking where this information is, and whether
this was done with or without it. No matter what you do or what business you're in you are going to feel this financially.
Let's talk next year at the same time and see how you all feel then."
- AND: --" I
just read the sheet in the paper about crime. A
guy throws a butcher knife at his wife, he got a $1,000 fine. Not $11,000. I saw a burgular get fined $2500, not
$11,000. So if I put a " for sale by owner" sign in my front yard, I can then turn in every real estate
agent who calls me. $11,000. Most small business people can't even afford to pay the registration fees. What we
are doing is slowly reducing opportunity for people to start and run their own business. We are building layers
of tape, so all of you will have to work for the Cendants of the world. What a nightmare."
- AND: --" OK
timeshare guys, how does the DNC effect
you? See how much of your business comes from phone rooms and respond. I know that with my current company it is
%25 of their tour flow."
E-mail street@streettalkblog.com
| IN THE WESTERN Half of the USA: |
|
ARIZONA:
PHOENIX: A class action lawsuit that could be worth millions of dollars has
been filed against ILX Resorts, Sedona Vacation Club and Premiere Vacation Club for allegedly over-selling
the Los Abrigados Resort and Spa in Sedona. The suit was filed on behalf of Kenneth Reed of Calgary,
Alberta, and George Cates of Oro Valley by attorneys Andrew Friedman of Phoenix, James Ledbetter of Cottonwood
and Janine Pollack and Daniel Altman of New York City. It alleges a " pattern of deception" by ILX
that cost Reed and Cates and " thousands" of other timeshare members millions of dollars. You can read
the details of the lawsuit in a PDF file at http://www.milberg.com/cases/ilx/complaint.pdf
You will need to have Acrobat Reader installed to read this file. If you do not have it, you can download
it free at http://www.adobe.com/products/acrobat/readstep2.html
(If you have trouble with the link to the case file, link, try going to http://www.milberg.com/
. You will see on the right hand side of the page a link to the ILX file.)
The Timeshare Beat recently provided a link (in the Timeshare News section) to an article about this in
the Arizona Daily Sun. One of our readers who followed that link subsequently had this to say: --" ILX is a competitor of ours, but this sounds more like an owner that wants to try
and win some money using frivilous lawsuits. I hope ILX countersues them back!!"
What do you think?
- YOUR COMMENTS
- Sept. 26: --" Hallelujah!
Its about time somebody put a hitch
in their giddyup! Another issue of concern is the status of the salesperson's licenses who've sold all those intervals.
Makes you think it might be prudent for salespeople to actually read the documents governing the property they're
selling - so they can be assured they're not participating in fraudulent activity when making a presentation. What
a novel idea!"
- Sept. 30: --" Is
this their exit program vacation club
that is causing this situation or is it a vacation club product sold offsite? Or both? Was it sold by real estate
licensees bound by laws, ethics, training, mandatory testing, ect. with suspension, revocation, fines, and\or internment
held over them by a Real Estate Commision? Interesting that several international resorts are probably doing something
similar."
E-mail street@streettalkblog.com
CALIFORNIA
SAN FRANCISCO: The San Francisco Exchange Company (SFX) has announced an
affiliation with the Club La Costa Group (CLC). Club La Costa owns 19 quality resorts in Spain, Tenerife
and Scotland. Mel Grant, President & CEO of SFX explains that this special relationship will provide preferred
access exchange opportunities for members of both companies. You can find the press release here: The
San Francisco Exchange Company Affiliates Club La Costa-Spain
E-mail street@streettalkblog.com
HAWAII:
MAUI: Shell Vacations' Maui Offsite Preview Center has achieved a record
month in sales volume, selling close to a million dollars in vacation ownership sales after being in business for
less than a year. According to Robert Bluh, president and owner of Valley Isle Vacation Club, Inc., Maui's
broker for Shell Vacations Club, after less than a year in business, his Front Street sales center reached just
under $900,000 in total sales of the Shell Vacations points-based vacation product during August 2003. Additionally,
sales made by the 15-person sales team closed at 12% with a VPG of around $1,600.
Kudos for Director of Sales Sean White, Richard Johnson, Mark Johnson, Cherry Stalling and Georgianne
Corzier, all Sales Managers at the Maui Offsite Preview Center, the rest of the Maui team, and Will
Leonard, Shell Vacations' Regional Marketing Director for Hawaii. 
KAUAI: Rose Schmidt, who works at Embassy Vacation Suites at Poipu,
got an interesting kind of kudos from Nowell C. Wisch, CAS, a long-time veteran of the promotional products
business and Editor-at-Large for the Wearables business magazine, who went on tour there for the goodies.
You might want to read it... (external)
Business of Wearables
- YOUR COMMENTS
- Sept. 30: --" Mr.
Wisch proved why he is writing instead of selling.
Greg (salesperson he thought was lousy) was Embassy Vacation Poipu Resort's salesperson of the year for 3 years
running, until joining my firm. Prior to that Greg was Shell Resorts' top salesman for 8 years and has won national
recognition from the American Resort Developers Assoc. as one of the Top salespersons in the country.
Mr. Wisch said he was NOT interested in our
product so instead of wasting both their time Greg " spun Mr. Wisch" , who is proud of being a professional
mooch (going to presentations for the gift) " We traded our first presentation time for a $300 discount on
a helicopter tour of the island and a day on a snorkel boat. The second presentation saved us a couple hundred
dollars on an ATV off road experience and a luau. ...Because Goldie, Herm, and I are professional salespeople,
we're respectful of others' time." THEN DO NOT GO ON PRESENTATIONS. " We told Greg that we were not interested
in buying a timeshare but only made the appointment to receive the discount on the activities." " To save
$300, I'd even sit through a horror movie or a timeshare sales presentation remember, we're talkin' big ROI here" .
Greg's time is worth too much to be spent on a non buyer.
Mr. Wisch can quote " Trusting comes from
good listening, not from good talking" . Greg heard what he said!!!! I want production because in sales that
is how greatness is measured. So before your Editor at large (Mr. Wisch) preaches about selling he should try it
himself and if he was producing he would not waste his and his friends' precious vacation time for $300. He would
then realize there are Hundreds of Roses but only a few Gregs."
- Oct. 1: --" Could
not of said it any better, sounds like
some of tours here at Ko-Olina, something better has to be done with these jerks/moooouches, that do come in and
waste OUR time as well and the managers get all upset when they are let go early than the 90 minutes. Good salespeople
can tell within a short period if they have something or not, Do like the attitude of our counterparts over there
at the Embassy, SPIN TO WIN !!!!!!!"
- AND: --" The
word mooch should be removed from your
vocabulary and your mouth washed out with soap! If we invite people to tour with incentives, then there will be
some folks who just come for the incentive. That is the nature of the beast. Everyone who does us the pleasure
of attending a presentation is a potential customer. Dealing with the public is kind of important for some one
in the sales business. I am a veteran of over twenty five years in marketing and sales in this business, and I
have not made under 6 figures in 18 years. I have spent quite a bit of time with folks interested in only a gift.
The great lifestyle I and my family enjoy erases any thought of negativity toward potential owners who have " wasted" my time. People who came for the gifts have put my first two kids through college. Grow up."
- AND: --" Mooch?
You haven't read this weeks sales question
by Mr. Hackman. Sell the Value!! It's right on!!!"
- AND: --" While
I strongly agree the word mooch should
be removed from the industry's vocabulary, I would like to know how many weeks Mr.Wisch purchased from this professional
sales person Rose?"
- Oct. 2: --" Grow
up ?? Then I guess you are a 100% closer??
or maybe 20%."
- AND: --" We
are all mooches in one form or another.
However most of us do not brag about it like Mr. Wisch and I am a firm believer in " Greed gets them there
( the gift) and Greed (good value of timeshare) gets them to buy" . I used the term " professional mooch" because Nowell C. Wisch claims to be a professional sales person. In reality he is a bad writer and proud of wasting
sales peoples' time. I started as an OPC before going on the line for 5 years then I became a developer so I understand
that tours are the backbone of this industry and I am thankful every day for the people that walk thru the door
for the free gift. But to claim to be a professional salesperson and proud of the fact he gets freebies, That's
a MOOCH!"
- AND: --" It
sounds like a couple of managers bu#$#hit
" take the word mooch out" . The answer is leave the CLOSERS alone. If a closer NETS anything near 1 out
of 5, get down and kiss his ass, don't bust his balls. When your 1 out of 10 reps bitch about spin to win, tell
them they will have more freedom when their numbers get BETTER ! But this would require the managers to MANAGE
their line instead of sit around and read the paper and sit in the lounge. You (managers) get paid to manage!!!!
SO MANAGE."
E-mail street@streettalkblog.com
NEVADA:
LAS VEGAS: Fairfield Resorts recently welcomed its first guests
to its newly opened Bella Torre tower at Fairfield Las Vegas at Grand Desert Resort. The opening
of the resort's second tower adds 329 fully furnished, condominium-styled timeshare units to Fairfield's western
flagship property. The Grand Desert Resort now includes a total of 599 luxuriously appointed one- and two-bedroom
condominiums, plus twenty deluxe Presidential Suites in two-, three and four-bedroom floor plans. It is located
at 265 East Harmon Avenue, just off the Strip.
E-mail street@streettalkblog.com
|
| IN THE EASTERN Half & Midwest of the USA: |
FLORIDA:
ORLANDO: Yes, it is true that Fairfield's Equivest Business Unit
didn't work out. All sites formerly in the Equivest BU have been fully integrated into six Fairfield BU's -- North,
Mid-Atlantic, Southeast, Mid-South, West and Pacific. George Usery is no longer with the company, and
for those of you who have asked, Rick Kearns has left Fairfield, too. No, we don't know where they went.
•
AND: The Ritz-Carlton Club has forged a relationship with The African
Collection, a provider of individually-tailored safari adventures " for the most discriminating travelers" .
The new Club offering titled, " The Great African Experience" offers Members safaris throughout Africa's
unique delta waterways, riverine forest and temperate savanna grasslands, each boasting their own wildlife treasures.
During their trip, Members will stay at exclusive game lodges. Excursions start at $7,000 per person. Pretty fancy
stuff.
YEEHAW JUNCTION: " This town ain't big enough for the both of them," says an article in the Orlando Sentinel (see Injunction considered in Yeehaw Junction ). Fred Levin and Westgate Resorts
are duking it out in the Osceola County Commission chambers- and elsewhere. Westgate's David Siegel complains
that Levin's big gaudy sign at his Yeehaw Travel Center gives him an unfair advantage over the much smaller
sign allowed Westgate (the Commission grandfathered Levin's sign in). Levin complains that Westgate's " travel
center" across the street is trying to steal his business by using Levin's blue and gold colors instead of
the red white and blue used by other Westgate centers. (One should note, however, that if you go to Westgate's
website you will find that Westgate's colors are, yes, blue and gold.)
You may remember that last year Levin put up a billboard between the Westgate travel center and the fine new dude
ranch Westgate is marketing. Flanked by skulls and crossbones, the message, which says it is paid for by Yeehaw
Travel Co., proclaims, " HEY DUDES! BEWARE! ONLY FOOLS BUY TIMESHARE." Funny, when you consider
that Levin's company has been sending tours to Westgate's arch-timeshare-rival Tempus Palms and is therefore
intimately involved in selling timeshare. The billboard became part of a lawsuit Siegel filed last October against
Levin. The suit, which resulted in a temporary injunction barring Levin from being on Westgate property, is still
being considered in Circuit Court.
It's deadly serious between Levin and Siegel, but to the rest of us it's a side show. The name Yeehaw Junction
alone is good for a chuckle. Stay tuned.
E-mail street@streettalkblog.com
OHIO:
PORT CLINTON: Sue, counter sue, both parties go home and lick your wounds. According
to an article in the Port Clinton News Herald, Erie Islands Resort filed suit against Diane and
Rmnarine Locham for over $3,000 the resort says they failed to pay for annual maintenance fees and special
assessments. That was filed in small claims court, but when the Lochams fired back with a countersuit for $8,200
plus $25,000 in damages, the case was transferred to Ottawa County Common Pleas Court. The Lochams claimed " fraudulent
representation" . Both parties recently agreed to dismiss the suit and countersuit. There was to be no record
of it and each party was to pay their own costs. We'd like to know exactly how it all went down... Read the story
here: (external)
Timeshare payment lawsuit, counterclaim allegation settled
E-mail street@streettalkblog.com
SOUTH CAROLINA:
MYRTLE BEACH: On Sept. 22 Nigel Russell, 41, was sentenced in federal
court to 12 months and 1 day in prison for possessing firearms and ammunition while being an alien in the United
States under a non-immigrant visa and making a false statement while applying for a passport. Russell pleaded guilty
to both charges in June. He lucked out he faced up to 10 years in prison and a $250,000 fine for each count.
Most of you will remember that last February, while awaiting deportation to the United Kingdom, he was arrested
for passport fraud (he filled out an application for a passport using the name, birthdate and social security number
of another man) and during a search of his home agents found 2 guns. Federal agents are still investigating Russell
for his alleged involvement in a murder-for-hire plot. If any of y'all want to refresh your memories on the whole
affair, you can find more information here.
We wonder what his sentence would have been if his name were Ahmad or Mohammed. We wonder if he will be deported
when he is released, and we wonder how his family is doing? There are those among you who are convinced he was
preparing to bolt on his family when he was caught. We'll never know for sure, though, will we...
Have y'all noticed how quiet it's been in Myrtle Beach since Nigel got arrested? Plantation Resort seems
to be humming quietly along without controversy, and we'd bet everyone from developer Blaine Liljenquist down is
heaving a sigh of relief. Amazing how much havoc one ill-intentioned person like Nigel can wreak.
MEANWHILE, also in Myrtle Beach, Fairfield is hosting a big grand opening
for their new resort (Ocean Boulevard Resort) today (Friday, Sept. 26). We hear it's quite a beauty. Featuring
art deco architecture and a rich décor, Fairfield Myrtle Beach at Ocean Boulevard Resort includes 161 fully
furnished timeshare units, with an additional 383 planned for future development.
The ether must be pretty strong in those parts these days -- Myrtle Beach flat out busted the company's monthly
site profit record in August. Kudos to y'all!
E-mail street@streettalkblog.com
|
| Rumors Rumors Who's Got the Rumors? |
- •
Is there any truth to the rumor that a deal is in the works for Club Corp
to sell off its Owners Club Resorts to Marriott?
•
Is there any truth to the rumor that Fairfield is going to day drives
in their largest mini-vac call center (Johnson City, TN)? If so, is this a response to the DNC list? Day
drives are not usually as successful as mini vacs. Are most of the larger companies going to this?
- YOUR COMMENTS
- Sept. 26: --" Does
this mean that Daydrives fall into one
of the exemptions in the DNC law? I don't think so, but I could be wrong. If it is not an exemption, then what
would be the difference: day drives or mini-vacs, still the same law. More likely economics or some other, more
sinister reason..."
- •
Is there any truth to the rumor that when word got out that Mark Weaver,
the N. CA. Regional Marketing Manager for Trendwest, has left the company, there were standing ovations
in the sales offices?
- YOUR COMMENTS
- Sept. 26: --" If
it wasn't for Mr. Weaver and co. we'd
be too busy sitting with clients to offer our cheers, as it is we were already standing around and all too ready
to wish him well anywhere but Trendwest. Was he the symbol for a larger problem... na, as Cendant weeds out the
rest of the good old boys that overstayed their welcome, the rest of us are cheering."
- AND: --" Mark
was one of the brightest individuals
I have ever met. He did his job with integrity and passion and he did it well. Negative comments like the one above
only reflect poorly on the person who made it. Everyone else knows that Mark did an outstanding job. This region
wouldn't be where it is without his leadership. So stand and cheer, and keep pointing your finger at everybody
but yourself for lack of performance."
E-mail street@streettalkblog.com
|
| Quotable quotes: " I can't understand why people are frightened of new ideas. I'm frightened
of the old ones." —John Cage |
| International: |
- USA & SPAIN: The San Francisco Exchange Company (SFX) has announced
an affiliation with the Club La Costa Group (CLC).
- CHINA: The Beijing Jin Lu Xiang Vacation Consulting Co Ltd opened its
doors to the Beijing population Friday 19th September 2003, as it embarked on a new and innovative strategy for
the Chinese vacation ownership market under the leadership of Bryan Lunt.
- CANADA: White Point Beach Resort has introduced the first Vacation
Ownership Resort in Canada's Maritimes: The White Point Beach Vacation Club.
- SPAIN: Judge María Jesús del Río remanded Robert Graham,
39, a timeshare salesman from Manchester, in custody Sept. 23 on suspicion that he was an accomplice to Tony
King in the murder of 17-year-old Sonia Carabantes last month and 19-year-old Rocio Wanninkhof in 1999.
READ MORE in Street Talk International (Last Updated
Sept. 26)
|
| Idle Thoughts: |
- •
What has Cendant invested in RCI since acquiring it and what changes
has it brought to the timeshare industry good and bad? Your opinions? Come on, surely you have some.
- YOUR COMMENTS:
- Sept. 24: --" Cendant
has changed the timeshare industry. PRO:
More Wall St. recognition, mixing TS with other Nationally known brands, creation of Fairfield\Equivest\Trendwest
juggernaut. CON: making RCI week owners secondary to RCI Points owners (and setting
up a potential class action that would severely harm the reputation of this industry), becoming THE major developer
against RCI or II developer affiliates, Bidtime\ebay publicly posted price differential and competition with new
sales, GEVC endorsement (which was given an ultimatum from AMDETUR members to leave the country), public rental
pool at the expense of RCI member bankings and subject to availability (the standard RCI excuse why exchange members
have few if any choices other than shoulder or off season). Revenue over reputation mentality."
- Sept. 27: --" Cendant
has hurt a lot of timeshare industry,
including the poor people that invested thousands of dollers, Cendant will soon ruin our 'timeshare' name."
- Sept. 28: --" After
reading the articles about Cendant Corporation
destroying the timeshare industry that is as far from the truth as any rumor I have heard in the business. When
Cendant purchased RCI then Fairfield later buying Equivest/Peppertree and finally Trendwest/Worldmark all of which
were points based companies they saw an opportunity to bring all the timeshare owners into a more flexible system
(Points) instead of the old dead Floating and Fixed week concepts... e.g. the RCI Points.
After Cendant put together the RCI Points they began to offer those owners a chance to convert their dead fixed
and floating weeks to points via the Fairfield PIC program which is still in effect and very successful. Cendant
also is offering their owners and those who convert the opportunity to use other products such as and not limited
to Airfare, Hotels, Car Rentals, Cruises, RV's ect with their points making it the most flexible program in the
industry today.. so I ask.. How is Cendant Killing the Industry when all they have done was Enhanced timeshare
on a larger scale..."
- Sept. 29: --" PLEASE
remember… Cendant did not do all of
these things out of the goodness of their heart! They charged those owners to fix their old dead weeks. It made
sense for them financially, that is why they did it. How many points is it again for an airline ticket…. or a cruise…
someone is getting rich! (Oh yeah, and it is not the owners.)"
- AND: --" I
must strongly disagree with the comments
made from an obvious Fairfield employee. Sure if you are employed by Fairfield, Equivest, World Mark or any other
resorts owned by Cendant you think they are the best thing to happen to TS... HOWEVER what about the majority of
the resorts in the system that are not affiliated with the RCI points. And let's be perfectly clear, MOST resorts
are NOT points resorts. What has Cendant done for them? Let's see..
1- Cendant sells off weeks owners' inventory to Sky Auction, preventing RCI members from having any available inventory
to trade into and then uses that money to pay for products offered to their points owners!! By the way, When was
the last time anyone saw a Fairfield resort on Sky Auction? I don't think so!
2- RCI Holiday Network- Now that's an idea. Let's take the banked weeks of RCI members and make them available
to the general public (once again SCREWING the owner who paid thousands to buy this EXCLUSIVE? program only to
have anyone be able to get it, and taking inventory from the exchange pool).
If anyone thinks RCI gives a rat's ass about
TS owners or resorts, then explain these two senarios. There are many other RCI beefs but these two need to be
addressed. They are in this solely for the money, not to provide a service as they promised.
I' m sorry to whom ever defended RCI on Sept 28. I've been trying to see YOUR point of view ...but... I can't seem
to get my head stuck that far up my ass!!"
- Oct. 1: --" I
have said it before, and I'll say it again... Cendant's
business plan and its execution have been nothing short of brilliant. That said, I believe a time will come when
the timeshare industry is rocked at its roots because of how Cendant is stripping the equity from the real estate.
What's left is an owner base who, for the time being, believe that nothing much has changed. That's why the system
still works. But when it caves it will cave quickly, and most will not have a clue about how it could have happened.
Cendant is not in the timeshare, or leisure
services, or travel businesses. They are in the financing business. Their primary product is corporate bonds. Their
own. The sale of THAT product is the focus of Cendant's executive suite. Timeshare resorts are the collateral for
the bonds. That is what represents the underlying value of the bonds and what secures a favorable rating at underwriting
time. When sold, the revenue is reinvested in yet more carefully selected assets.
The RCI buyout was the masterstroke. At once,
a central clearing point is established to transact the " currency" printed in Cendant's cellar. There
is no more real estate owned by the members. That's owned by the bond holders. Cash flow to pay interest to the
bondholders comes from the sale to the members of the same RCI points which replaced the real estate they once
owned. That real estate is also rented to anyone willing to pay the modest price, or outright sold when the opportunity
arises. Yes indeed, no sense having all that collateral laying around gathering dust while it secures those bonds.
After all, it may as well be put to productive use since the membership isn't going to use it. RCI will make sure
of that.
Now, unlike the bonds holders, no collateral
exists for those RCI points. No sir, those timeshare suckers bought the junk in the first place. Anyone who would
fall for that surely would not ask about collateral. They are way down at the bottom of this food chain. Cendant
owns the real estate outright, holds the cash, and sells the bonds. All this because some thousands of ex-deed
owners are willing to believe nothing has changed, except for the better. Yep, they have a crisp, new points certificate
to prove it. Bought and paid for. Besides, Cendant says we have seen the future, and it is ours if we just hurry
up and buy some, because the train is leavin' the station.
Well, what do you think happens next?
Hard to say, exactly. But, I heard a story once about three cousins going to a movie matinee in Omaha, Nebraska.
On the way they noticed that the local bank was closing early, and a couple of depositors were not being let in.
The cousins mentioned the curious happening to a couple of people waiting in line for popcorn at the movie. Next
thing you know there was a run on the bank, then another, and before anyone could figure it out, the stock market
crashed.
Of course, there is no bank, and today people
would not demand to get what's rightfully theirs, even if there was. Of course, if they saw it being given away
to a complete stranger, they might get upset about it."
- •
No matter how mad some of you get at us, you might as well keep in mind that we're
the Ever Ready Bunny of publications. It doesn't take a lot to keep us going and going and going. All we need is
an internet connection. With apologies to " The Police" , Every breath you take, every move you make,
we'll be watching you...
E-mail street@streettalkblog.com
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| People on the Move: |
- Ken Alexander who was working in the Member Services for Fairfield Branson has taken a position
with Bluebeards Castle in St. Thomas... all Ken's friends and clients wish him the best. He shall truly
be an asset to St. Thomas.
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