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Now What Do We Do?
By Michael S. Finn, RRP
Well it is nearly two months since the terrorist acts of September 11th. Since than we have
declared war on the Taliban in Afganistan and experienced an Anthrax assault on the United States of America. Not
what you would call a good autumn.
In that time we have tried to operate on a daily basis like it's business as usual. For the most part it has been
close. It is almost amazing to say, but we all did the best we can and are continuing to do so. Now we have to
take at look at where these events will take the Vacation Ownership Industry.
To do so we need to break down the players. The first, as it should be, will be the customers. The next will be
sales, then management followed by the developers.
We must realize that our customers are looking at us differently. Despite the government's best efforts to make
us all believe that it truly is business as usual, it is not exactly usual. We have all felt our lives change and
our customers have felt the same. Air travel is down and we do not know how long it will take to return to the
flying schedules of the Summer of 2001. Many people are traveling, but many have just sworn off flying completely.
We have to recognize this and make adjustments. Marketing these prospects has to change. We will be looking to
opportunities that are within driving distance. That will mean pulling your universe in to drive-down markets.
Do not get too nervous, Ohio is still a good drive down market for Orlando. Off-sites or traveling fly-buy seminars
may make a comeback. Day-drives are also seeing a re-emergence in markets that have ignored them for years. We
are going to have to be as creative as possible to attract more guests to our properties. Well this is a bad news,
good news scenario. The bad news is that volume per guest (VPG) will be down on many of these market sources. The
good news is that many of these sources have a lower cost per tour than a program trying to get guests from a great
distance.
Now let's take a look at sales. It is a new ball game, now. The day of the boisterous New Yorker plopping down
$25,000 cash to buy today may be far and few between. (Sorry, but I grew up in New Jersey so I believe I am entitled.)
Back to the task. Customers will be different and we need to be ready for them. More likely we will see that client
plop down $10,000 this year. Now here is where preparation comes in. We will get the $25,000, it just may take
longer. They buy $10,000 this year, and upgrade from $7-8000 next year and another $7-8000 the following year,
bringing us back to $25,000. The key here will be good customer service, follow-up and keeping your owners, your
owners. As a salesperson you will need to make sure your owners are happy. It's no longer a one-shot wonder. For
those of you who think follow-up is cashing your commission check this will be a wake up call.
Management is another story. You will have to learn from the previous two discussions. Then you will have to do
something many of you haven't done in a while: "roll your sleeves up". Many companies are already looking
at how effective and productive their managers are. There will be fewer executives and more working managers. That
means sales managers will have to TO many a table. Marketing directors will be training new telemarketers. The
days attending multiple meetings and then writing memos on what happened in those meetings, then having a meeting
about the memo you wrote may be over. Well, I hope so anyway, just a personal thing. There have already been reports
of companies cutting management for a supervisor that is half the money. Be preemptive; work it hard.
Development is going to be interesting. As you may have guessed this does not bode well for new growth. Start-ups
will have a challenge getting new business with some type of pre-planned database arrangement. Also, old school
resort companies that do not have a strong commitment to service and even stronger in-house and referral departments,
will have trouble navigating these waters to come. Here is the biggest concern: the new growth our Industry has
enjoyed for nearly twenty years will slow down. That means far less start-ups.
I am not trying to paint a dismal picture. I am just trying to say that we are going to have to work hard to get
more from less. Every decision will have to be weighed carefully as to ensure that it offers opportunities to succeed.
Change offers many opportunities. Be prepared and work hard and you will be a step up.
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Michael S. Finn, RRP,
writes an insightful bi-weekly column regarding issues of ethical and profitable sales & marketing. Read his bio here
Email: Michaelsfinn@aol.com Published
on Mondays.
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