When deciding how to operate a property, developers often choose among several options. In thinking about how
Question:
When deciding how to operate a property, developers often choose among several options. In thinking about how to get the best return on a real estate investment, a timeshare is not a bad option. Timeshares, however, are difficult to design and operate well without careful planning.
Four key components in planning are: that the product fits the market, that regulations important to the buyer are clearly spelled out, a well-defined market and plan to reach them, and last but not least, communication between the sales and marketing teams to obtain the revenue goal set. After these plans are executed, there must be a system to engage the consumer after the purchase so as to avoid buyer's remorse. When the sales team reinforces the value of the purchase, the buyer will continue to feel good about his or her investment.
The next issue developers need to address is payment. Managing the guest portfolio is a key factor in making sure dues and fees are received. If members default or developers fail to collect, the entire financial state of the timeshare could be harmed for both management and the members. Giving payment options to the members makes them feel more involved.
After the business technicalities are taken care of, the next most important aspect of the timeshare is delivering quality service to the members. As mentioned above, options allow the members to have some control over their reservation process and stay. Convenience is another key component in delivering great service. This is why technology and the Internet can be great aids to developers and members.
As you can see, there is a lot to think about when creating a timeshare and creating value for members. By addressing member needs and wants, while also ensuring the manager's goals are met, a real estate investment can be a profitable investment for both members and developers.
Please briefly post your answers to the following questions:
- 1) Why are member concerns so important in the development stages?
- 2) Why is careful planning so important for financing the timeshare?
Expert Answer:
Here are the answers to the questions 1 Member concerns are important in the development stages ... View the full answer
