Final Flashcards
The Wyndham Vacation Ownerships’ VPG (volume sold per guest) has ___________ in 2010 from 2008.
Increased
Wyndham Vacation Ownerships’ initial sale (of points) sales and marketing costs are (what percentage) higher than the sales and marketing costs for upgrades (sale of additional points to owners)?
24%
What percentage of Wyndham Vacation Ownerships’ recent purchasers have been under the age of 45?
58%
Wyndham Vacation Ownerships’ lendees (owners that borrow to finance their purchase) FICO scores have increased in the 700-850 category from 34% in 2005 to (what percent) in 2010?
66%
On average there are how many board members on an HOA board?
3-7
T/F HOA board of directors have to go through a rigorous process to make certain they are qualified.
False
How does Wyndham Vacation Ownerships make money?
Sales, property management, and consumer financing
Pricing is how much greater for time intervals than whole ownership sales?
4.8
Wyndham Vacation Ownersihps’ tour flow _________ in 2009.
Decreased
HOA board members are voted on by __________.
Membership
Wyndham Vacation Ownerships’ profit per sale has ___________ since 2006.
Increased
__________ establish a timeshare resort’s legal existence.
Articles of incorporation
The timeshare owners that purchase from Wyndham Vacation Ownerships that have a FICO credit score of below 600 have to put _____% down payment on the purchase.
50%
______% of Wyndham Vacation Ownership owners own a primary residence.
92%
T/F Wyndham Vacation Ownership is looking to increase money spent on inventory.
False
A report by the Travel Industry of America indicated that (what percent) of trips taken in the US are two nights or less in duration.
80%
What has the best closing rate in the timeshare industry?
Mini-vacation
T/F Owners that use RCI points can stay at a resort for a one night stay.
True
Mini Vacations closing rate is:
20-30%
Of Asia and the Pacific, which is the more mature timeshare market?
Pacific
55% of new timeshare business in Asia expects to come from:
China
T/F If you own the point value of a one bedroom in a points based club, you will always need to stay in a one bedroom.
False
Which delivers more reliable leads?
OPC
Best prospects are those that have already purchased. This is called:
Milking the cow
The most important part to make sure that a timeshare is a success is:
using the right sales and marketing plan
The only country in Asia that has timeshare regulations is:
Malaysia
Asian consumers in general (are/are not) brand conscious.
Are
T/F If only one member of a married couple shows up for a timeshare tour, the resort can refuse to give them the free gift.
True
Vacation intervals are typically sold in ________ sizes and __________-length terms in Asia Pacific regions compared to North America and Europe.
Smaller; shorter
T/F It is better to sell all of the best units or weeks first.
False
HOA takes over the running of timeshare resorts after approximate ______ of the units are sold.
75
The General Manager along with his/her staff is responsible for key business deliverables such as attainment of budget targets, guest satisfaction targets, and:
Associate satisfaction targets
The accounting/finance department at a timeshare resort spends more time:
Revising, billing and collecting annual maintenance fees
T/F A timeshare buyer does not have to finance through the timeshare developer. They have 90 days to find another bank.
True
Which department has the single greatest influence on guest satisfaction at a timeshare resort?
Housekeeping
A housekeeper at a timeshare resort can clean how many villas per day?
3-4
Engineering/maintenance needs to maintain a strong relationship with what department?
Housekeeping
What department is responsible for a guest wanting to return to a resort again?
Activities
What percent of proceeds of each sale goes to sales and marketing costs in branded vacation ownership companies?
36-47%
What percent of owners finance their purchase through the timeshare resort developer?
50-70%
T/F Generally, if a consumer finances through a timeshare company, the interest charged to the consumer is greater than 20%.
False
Independent timeshare resorts’ sales and marketing costs are _________ than timeshare brands’ sales and marketing costs.
Higher
Equity Financing:
Start-up money needed to begin the project; hardest type of financing to acquire because if the project fails, the bank will not get a return on their investment
Acquisition Financing:
Used to buy undeveloped land; no more than 3 years in duration; high interest rate; used to pay off the equity loan
Development Financing:
Often packaged in the same loan as the acquisition loan; used to develop a piece of land and prepare it for construction; pays up to 75% of the money required to develop the land; =< 3 years; used to pay for the acquisition loan
Construction Financing:
Underwrites the actual building of the timeshare property; repayment is based on a release schedule
End Loan Financing:
A way for developers to use the loans that are financed by the consumer for their timeshare purchase as collateral to obtain the money for construction; 12-18 months
Spread:
Difference between the rate the developer finances the timeshare and the End Loan agreement with the bank; the profit
What percent of consumers choose to finance through the timeshare resort developer?
70%
What European country has seen an increase in condo hotel ownership in the US?
Germany
The four fees that drive condo hotel expenses include:
Franchise fees, monthly maintenance fees, capital expenditures, and property taxes
T/F If a person owns a condo hotel room in most locations, they are not allowed to live in their unit full time.
True
T/F Condo hotel sales people include how much rental income the owner will receive in their sales pitch.
False
Between 2000 and 2009, what saw the largest appreciation of the unit’s value?
Traditional condos
Four or five star hotel rooms cost how much to build per room on average?
Less than $500,000
If a condo hotel is rented by the management company and not by the owner, the management fee split is as low as 40% and as high as:
55%
T/F If you own a condo hotel, you can rent your room out on your own without going through the hotel’s rental pool.
True
T/F The timeshare industry continues to receive a great deal of financing from banks even with the state of the economy.
False
There was a(n) ___________ in timeshare sales between 2009 and 2010.
Increase
Smaller resorts have _____________ average prices than large resorts.
Higher
Vino Bello Resort is located in:
Napa
Bluegreen Resorts have timeshare in:
Big Canoe, GA
Lake Lure, NC
Hershey, PA
…
The timeshare industry relies on what kind of process to selling process?
Active selling
Bluegreen’s operating income from December 31, 2008 to December 31, 2011 has increased by how many million?
52.5
Renters at timeshare resorts comprised what percent of stays in 2010?
10%
Bluegreen Corporation gross profit was ___________ in 2010 than 2009.
Higher
What percentage of timeshare sales came from new owners in a recent study?
55%
What percent of recent timeshare buyers were single?
17%
ARDA is the national organization for the timeshare industry. The acronym stands for:
American Resort Development Association
Shell Vacation Club members ___________ have access to hotels with their membership.
Do
T/F Local communities and local government have typically welcomed timeshare development.
True
There is a trend towards __________________________ in the US: hotels, timeshares, and private homes in one property development.
Mixed use development
T/F It is easier to sell a foreclosed timeshare interval than a foreclosed condominium in this current economic climate.
True
