Timeshare Consumer Guide
Monthly News Letter
November 2005
Welcome to the November edition of the Timeshare Consumer Guide monthly newsletter. The aim of the newsletter is to provide current information that may be of interest not only to buyers, owners and sellers of timeshare but to the consumer in general. We aim to provide information regarding exchanges, resorts and up to date OTE News and other reliable sources.
IN THIS EDITION
- Cendant Corporation (owners of RCI) – to be Split into Four
- New Resort Opens in Las Vegas
- OTE Survey of The Spanish Market Unveiled
- Industry Experts debate the Direction of Timeshare
- OTE 8 - SPECIAL, breakdown and feedback of Forum in Prague
- EYE ON……Royal Savoy – Madeira
Cendant Corporation known to most of us as RCI – Split into Four
Under a plan announced this month, Cendant Corporation is to create four independent and publicly traded companies from its existing Travel and Real Estate Divisions.
They include the Travel Network Group (TNG) combining the Vacation Network group of RCI and the Vacation Rental Group (VRG) with the Travel Distribution Services Group (TDS).
The other companies are Real Estate Services, Hospitality Services and Vehicle Rental Services. Hospitality Services will include the timeshare development businesses of Trendwest and Fairfield Resorts.
The Restructure is designed to enable shareholders and the four new units to realise Cendant’s value which, according to the company, “has not yet been fully recognised by the market despite the strong operating and financial performance of Cendant’s businesses”.
With this move Cendant Corporation will cease to exist and be replaced by the stand-alone companies with their own boards of directors, their own shares and sole control of their own destiny. The break-up will likely occur between June and September 2006 at which time each new public company will be known by a new name and the Cendant name will be “retired”
In recent years, the Cendant share “has failed to properly reflect the outstanding success of the company”. Creating four independent companies is “the best way to unlock the full value of Cendant’s businesses for the benefit of our shareholders in both the short and long term”.
This may be better for customers of Cendant’s businesses
NEW RESORT OPENS IN LAS VEGAS
The timeshare division of the Marriott hotel group, MVCI, has marked the opening of its first Las Vegas resort. On completion Marriott’s Grand Chateau will offer 895, one-two- and three-bedroom units in four 37-storey towers. The first phase opens with 126 units. Prices in a 1bed will start at $16500 per deeded week
OTE SURVEY OF SPANISH MARKET UNVEILDED
Key findings of an OTE survey into the timeshare market in Spain showed resort sales of around 530 million Euros in 2003. Some 60 mill Euros of consumer-to-consumer re-sales were recorded.
As the largest single market of timeshare properties in Europe, Spain has 327 resorts – 140 are in the Canary Islands. Overall they incorporate 25,000 units, most of them one or two – bed apartments.
According to the survey, approximately 600,000 households owned about 970,000 weeks or the equivalent in points. Most owners are from the United Kingdom and Spain with a fair number resident in France, Germany and Italy.
On average, consumers paid 10,500 Euros per week of annual use or the equivalent in points for timeshares purchased from developers in 2003. Purchase prices were highest on the Costa Del Sol where the average cost of a new week was 12,100 Euros.
Of households that have owned timeshare in Spain for a year or longer, 17 per cent were interested in purchasing more timeshare either in an area where they owned or elsewhere.
In 2003 resorts reported an average occupancy rate of 76 per cent. In the Canary Islands it was 80 per cent while properties in the Costa Del Sol were 72 per cent
INDUSTRY EXPERTS DEBATE DIRECTION OF TIMESHARE
Following on from the presentation of the OTE survey, a panel of experts addressed issues confronting the industry.
Illustrating the popularity of timeshare in Spain, Club La Costa had a 95 per cent rate most of the year – “Probably the best in Europe”.
However, Club La Costa are looking for resorts further afield. Citing the UK, Eastern Europe, Turkey and Cyprus.
Because of the complexity of culture and language, it was difficult to deal with regulation in Europe.
Addressing potential locations for new timeshare properties, Mr Daskalantonakis believes his group- it incorporates the Galaxia Vacation Club, a division of Grecotel, the hotel conglomerate in Greece and the Eastern Mediterranean – is already developing future resorts. It has multiple hotels that will lend themselves to a mixed-use timeshare model.
OTE 8 – remarks from the Forum in Prague
The European Timeshare Business Forum in Prague is widely recognised as the premier annual event in the industry calendar.
At the conclusion of OTE8 an informal survey to gauge feedback from a cross-section of delegates was taken, here are just some of their comments:
“It was a very useful and successful conference. I do believe there seems to be a real acceptance of OTE” – The Paradise Group
“This conference was great because it was very effective in the timeframe. Everything is changing in a positive direction.” – Holiday Club Hungary
“I felt it was simply the best conference I have ever attended.” – Hutchinson & Co. Trust Company
“The conference has been one of the best. OTE has done a good job. OTE have achieved financial stability.” Fairways & Pueblo Evita Clubs.
“The conference shows that all industry professionals have come together and are united in their goals. This is great news for consumers, developers and re-sale agents and just about anyone associated to timeshare. As the OTE presses on, the industry will benefit, we are now working in a regulated industry, that can only be good.” – Travel & Leisure Group..
EYE ON ……… Royal Savoy – Madeira
In November 1999 the Hotel Savoy in Madeira introduced its new holiday ownership Resort to the World. The Hotel Savoy had been established for almost 100 years having built a reputation for quality of accommodation and service.
The general feeling was that if the Hotel Savoy was going to build a holiday ownership resort, it would have to be the best and so, the Royal Savoy was born.
The Royal Savoy encompasses everything a 5 star resort should be. It is located on the southern shore of Madeira within the capital city of Funchal. It contrasts an ocean front location with a 2 minute walk to the centre of town.
On site the Royal Savoy proudly boasts 7 swimming pools, 2 health centres, 7 restaurants and 2 bars with nightly entertainment.
Access between the Royal Savoy and the Hotel Savoy is provided by a bridge walk way which leads through the 100 year old mature gardens where one can trace the steps of Agatha Christie, George Bernhard Shaw and Winston Churchill.
But that was then, and 6 years later the Royal Savoy is proud to have in excess of 5,000 families as club members. This success is partly down to the natural allure of the resort.
Official Classification: 5 star
Accommodation: 101 Ocean View Junior Suites
59 Ocean View Superior Suites
2 Ocean View Penthouse Suites
Restaurants/Bars: The Gallery – Buffet Restaurant
The Armada – A-La-Carte
Neptunus – Swim-up Cocktail
Health & Beauty: 2 heated outdoor seawater pools
1 heated indoor freshwater pools
1 children's pool
1 outdoor Jacuzzi
1 Turkish bath
1 gymnasium
1 Tropical Shower
1 Sauna
2 massage rooms
1 Hydro- massage room
Prizes & Certificates: 2004: HACCP Global Awards: Best resort in Europe & Med.
Resale Price Ranges: £5,000 - £6,000
Each of the subjects in this publication are based on various facts provided by trusted sources including the OTE.
Editor: David James
Previous Editions:
July 2005 Newsletter
June 2005 Newsletter
August 2005 Newsletter
September 2005 Newsletter
October 2005 Newsletter |
