Additional Information article: Timeshare Perception Schism Revealed

Here's a great article I've found, it contains great information on timeshare and how it is perceived by the pros and by the general public.

Timeshare Perception Schism Revealed Vacation Ownership professionals are learning they’ve underestimated how consumers perceive the category

Friday, March 30, 2007 Glenn Haussman http://www.hotelinteractive.com/article.aspx?articleid=7442

It’s true timeshare has always had an image problem. But since the major brands jumped into the scene 20 years ago, consumer perception has changes radically.

In fact it’s been altered so much among people partial to timeshare; executives in the business were caught by surprise this week to discover they were drastically off target in how they believe potential customers perceive the timeshare buying process and the levels of consumer understanding regarding the product.

When industry professional opinions were compared to actual consumer beliefs, it revealed a startling schism between the industry and the people it serves.

Probably the most revealing question posed to attendees was regarding their belief on high pressure sales tactics affecting the consumer’s decision to buy.

While 65 percent of timeshare professionals felt pushy presentations caused people to reevaluate their decision to buy, just 11 percent of polled consumers considered that to be a problem.

“This may be a self imposed fallacy,” said Peter Yesawich of Yesawich, Pepperdine, Brown & Russell, panel moderator. “There are real signs of encouragement among the half of America that is positive to industry.”

Additionally, when asked why consumers took a timeshare tour, the industry pros said 95 percent did it for the gift. In reality it was only 43 percent.

Also, the pros overwhelmingly said (88 percent) people took a tour because they were considering buying a timeshare. In fact just 29 percent were considering that option.

Additionally, 82 percent of the pros felt that the low price of a mini vacation was a predominant factor to get people to visit. However, only 23 percent of consumers felt that way. “There are a lot of surprises, I am kind of flabbergasted by some of this information,” said James M. Lewis, president, Disney Vacation Club.

‘What all this says to us is people are much more receptive to our product than we realize, but we need to continue to evolve our sales presentation. This bodes well for our future.”

Deborah Linden, RRP, CEO, Island One Resorts agreed. “It is very encouraging to see the sales process is not a bigger issue.”

Perception disparities were also revealed when only three percent of polled consumers felt they needed additional time after a tour to make a purchasing decision.

Also, 40 percent of industry folks thought consumers felt timeshare was not a good investment. It actually turned out to be a paltry two percent of consumers felt that way.

Conference attendees also underestimated overall consumer understanding of the timeshare product.

They constantly voted the belief the potential timeshare purchaser knew much less about the ins and outs of timeshare than was true.

Whereas 87 percent of consumers understood timeshare properties feature condo style accommodations that are larger than traditional hotel rooms, 74 percent of the pros agreed.

Though 80 percent of consumers understood timeshares can be exchanged for resorts operated by same developers, only 50 percent of the pros thought consumers understood that.

57 percent of the pros thought consumers understood the concept of exchanging with properties around the world, where in reality 80 percent knew it already.

“I think what this illustrates is that America has become more educated on vacation ownership,” said Lewis. “We have to feel good about that, but also try to understand why more people don’t purchase [timeshare].”

“Perceptions of timeshare are very positive,” said Jon Fredricks, president, The Welk Resort Group and incoming ARDA Chairman. “Consumers are going into the sales presentation with a good understanding of the product.”

ARDA commissioned Yesawich, Pepperdine, Brown & Russell to conduct a survey of U.S. consumers’ familiarity with and image of timesharing, including their personal experiences with timesharing, participating in timeshare sales presentations, purchase intentions, travel habits, lifestyles and demography. The data were collected through on online survey of 808 adults on November 13-14, 2006.