It was once a recession-proof business. Now vacation time-sharing licks its wounds after the financial markets froze up last fall, bringing some of their business models into question. "Oh-oh, what do we do with this paper now? Yea, we can finance some of our new clients, but that hasn't been our business. Can we get help? Everybody needs a car, good for Detroit. But our history shows everyone needs a vacation, too, even in these times!! Can the government help us as well?"
With my having been in resort real estate since before fractional ownership, back when selling second home building lots in New England, the Poconos, Ocean City, and deep into South Florida made for great scripts for the likes of David Mamet and his ensemble for "Glengarry, Glen Ross," I can tell you things are really changing now! But for the honest, strong, creative survivors in time-sharing, it may just be ... "the best of times, not the worst."
Some of the brands are not as concerned. Their mother ships won't allow their times-sharing subsidiaries to say "no" to a sale--the financing is there, and their penchant for securitization was never as big as the unbranded developers. But the real creativity may be happening with those smaller builders of time-sharing resorts who have endured economic down-turns before--after all, it's a matter of survival for them, and they are "the mother ship," ... no help coming from the Hotel types at corporate headquarters.
Creativity? What kind of creativity? Well, the questions being asked by these medium size builders of vacation dreams are these: "What did we really do well, anyway? What is our true competency? What do the people really want that we have not been giving them?"
As cash-producing products and services, that were always there, but ignored, raise their "bottom-line saving heads," the time-share teams in the middle of the pack are crafting business models that answer those questions above. And with guys like me out there trying to help facilitate the answers to these questions, "it really is the best of times, not the worst."
What are the answers? Stand by as my Diversified Global Strategies group puts on the pads. A little hint: Services and products beyond expectations for the prospect, the client, and the employee. What's new about that? Nothing, ... but now Senior Leadership must stop the talking to Wall Street about such, and truly deliver to the bottom line. Some will survive, and others will not. Ah, a good fresh spring rain should clear the air, ... maybe just clean it up a bit! You'll know who survived when you see all the Talent that is on the street now return to these creative corporate survivors who got honest with themselves and their constituents.
Joe Cervasio, Diversified Global Strategies
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