Final Flashcards
1
Q
The Wyndham Vacation Ownerships’ VPG (volume sold per guest) has ___________ in 2010 from 2008.
A
Increased
2
Q
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)?
A
24%
3
Q
What percentage of Wyndham Vacation Ownerships’ recent purchasers have been under the age of 45?
A
58%
4
Q
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?
A
66%
5
Q
On average there are how many board members on an HOA board?
A
3-7
6
Q
T/F HOA board of directors have to go through a rigorous process to make certain they are qualified.
A
False
7
Q
How does Wyndham Vacation Ownerships make money?
A
Sales, property management, and consumer financing
8
Q
Pricing is how much greater for time intervals than whole ownership sales?
A
4.8
9
Q
Wyndham Vacation Ownersihps’ tour flow _________ in 2009.
A
Decreased
10
Q
HOA board members are voted on by __________.
A
Membership
11
Q
Wyndham Vacation Ownerships’ profit per sale has ___________ since 2006.
A
Increased
12
Q
__________ establish a timeshare resort’s legal existence.
A
Articles of incorporation
13
Q
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.
A
50%
14
Q
______% of Wyndham Vacation Ownership owners own a primary residence.
A
92%
15
Q
T/F Wyndham Vacation Ownership is looking to increase money spent on inventory.
A
False
16
Q
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.
A
80%
17
Q
What has the best closing rate in the timeshare industry?
A
Mini-vacation
18
Q
T/F Owners that use RCI points can stay at a resort for a one night stay.
A
True
19
Q
Mini Vacations closing rate is:
A
20-30%
20
Q
Of Asia and the Pacific, which is the more mature timeshare market?
A
Pacific
21
Q
55% of new timeshare business in Asia expects to come from:
A
China
22
Q
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.
A
False
23
Q
Which delivers more reliable leads?
A
OPC
24
Q
Best prospects are those that have already purchased. This is called:
A
Milking the cow
25
The most important part to make sure that a timeshare is a success is:
using the right sales and marketing plan
26
The only country in Asia that has timeshare regulations is:
Malaysia
27
Asian consumers in general (are/are not) brand conscious.
Are
28
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
29
Vacation intervals are typically sold in ________ sizes and __________-length terms in Asia Pacific regions compared to North America and Europe.
Smaller; shorter
30
T/F It is better to sell all of the best units or weeks first.
False
31
HOA takes over the running of timeshare resorts after approximate ______ of the units are sold.
75
32
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
33
The accounting/finance department at a timeshare resort spends more time:
Revising, billing and collecting annual maintenance fees
34
T/F A timeshare buyer does not have to finance through the timeshare developer. They have 90 days to find another bank.
True
35
Which department has the single greatest influence on guest satisfaction at a timeshare resort?
Housekeeping
36
A housekeeper at a timeshare resort can clean how many villas per day?
3-4
37
Engineering/maintenance needs to maintain a strong relationship with what department?
Housekeeping
38
What department is responsible for a guest wanting to return to a resort again?
Activities
39
What percent of proceeds of each sale goes to sales and marketing costs in branded vacation ownership companies?
36-47%
40
What percent of owners finance their purchase through the timeshare resort developer?
50-70%
41
T/F Generally, if a consumer finances through a timeshare company, the interest charged to the consumer is greater than 20%.
False
42
Independent timeshare resorts' sales and marketing costs are _________ than timeshare brands' sales and marketing costs.
Higher
43
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
44
Acquisition Financing:
Used to buy undeveloped land; no more than 3 years in duration; high interest rate; used to pay off the equity loan
45
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
46
Construction Financing:
Underwrites the actual building of the timeshare property; repayment is based on a release schedule
47
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
48
Spread:
Difference between the rate the developer finances the timeshare and the End Loan agreement with the bank; the profit
49
What percent of consumers choose to finance through the timeshare resort developer?
70%
50
What European country has seen an increase in condo hotel ownership in the US?
Germany
51
The four fees that drive condo hotel expenses include:
Franchise fees, monthly maintenance fees, capital expenditures, and property taxes
52
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
53
T/F Condo hotel sales people include how much rental income the owner will receive in their sales pitch.
False
54
Between 2000 and 2009, what saw the largest appreciation of the unit's value?
Traditional condos
55
Four or five star hotel rooms cost how much to build per room on average?
Less than $500,000
56
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%
57
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
58
T/F The timeshare industry continues to receive a great deal of financing from banks even with the state of the economy.
False
59
There was a(n) ___________ in timeshare sales between 2009 and 2010.
Increase
60
Smaller resorts have _____________ average prices than large resorts.
Higher
61
Vino Bello Resort is located in:
Napa
62
Bluegreen Resorts have timeshare in:
Big Canoe, GA
Lake Lure, NC
Hershey, PA
...
63
The timeshare industry relies on what kind of process to selling process?
Active selling
64
Bluegreen's operating income from December 31, 2008 to December 31, 2011 has increased by how many million?
52.5
65
Renters at timeshare resorts comprised what percent of stays in 2010?
10%
66
Bluegreen Corporation gross profit was ___________ in 2010 than 2009.
Higher
67
What percentage of timeshare sales came from new owners in a recent study?
55%
68
What percent of recent timeshare buyers were single?
17%
69
ARDA is the national organization for the timeshare industry. The acronym stands for:
American Resort Development Association
70
Shell Vacation Club members ___________ have access to hotels with their membership.
Do
71
T/F Local communities and local government have typically welcomed timeshare development.
True
72
There is a trend towards __________________________ in the US: hotels, timeshares, and private homes in one property development.
Mixed use development
73
T/F It is easier to sell a foreclosed timeshare interval than a foreclosed condominium in this current economic climate.
True
74
T/F Currently the timeshare industry is dependent on international tourists buying timeshares in order to make a profit.
False
75
T/F It is increasingly difficult to predict short-term spending habits internationally.
True
76
T/F A recent study stated that economic issues have led to less than half of owners using their timeshares.
False
77
T/F The timeshare industry continues to receive a great deal of financing from banks even with the state of the economy.
False
78
T/F Bluegreen Resorts stock price is currently at the lowest point of the past 52 weeks.
False
79
If an owner wants to have the highest trading value for their timeshare when it comes to exchanging, where should they purchase?
Coastal California or Hawaii
80
T/F Timeshares have experienced similar occupancy rates based on the recession. In 2008, both had occupancy rates around 60%
False
81
T/F A right-to-use ownership of a timeshare includes a deed of ownerships.
False
82
T/F 70% of timeshares in the world are located in the US and Mexico.
False
83
T/F Converting condominiums into timeshares is becoming a trend instead of building from the ground up.
True
84
How many timeshare owners intended to make an additional timeshare purchase in the next two years?
1 in 6 owners
85
The two largest exchange companies include:
Resorts Condominium International and Interval International
86
T/F Hilton Grand Vacations has resorts in Spain.
False
87
T/F Timeshare resorts that use the points system do not have the happiest owners because they are too complicated to use.
False
88
T/F Timeshare owners that own at a right-to-use resort cannot sell their timeshare, only owners that own at a deeded resort.
True
89
T/F There is no best place to own a timeshare.
True
90
T/F Timeshare owners do not have to pay maintenance fees if they do not use their timeshare.
False
91
T/F The Hilton Grand Vacation Club has a property in New York City.
True
92
As soon as your week is deposited with an exchange company:
You can request and get the week you want if it is available.
93
T/F Timeshare owners can rent out their timeshare if they decide not to use their week.
True
94
T/F In the Trends article, there was an example of a company that has been transparent in their marketing and showing prices on the internet.
False
95
The typical adult (that vacations) takes how many vacations per year?
4
96
_____________ means that you have the right to occupy (or have available for trade or rent) a specific week and unit number at the resort you own every year.
Fixed week ownership
97
Residential cruises are ____________ than most traditional cruise lines.
Smaller
98
T/F The World (the largest resident cruise line in the world) has less than 100 private residences.
False
99
What decade did destination clubs first make an appearance in the vacation ownership industry?
1990s
100
Most clubs maintain 1 home for every ______ members.
6
101
Ritz Carlton Club has portfolio and home club memberships that are both what type of membership?
Equity-based
102
The Four Seasons resort in Vail, Colorado has what type(s) of ownership opportunities?
Whole ownership and fractional ownership
103
The itinerary of the World residence at sea is decided by:
The World owners
104
T/F Destination clubs have onsite concierge services.
True
105
Exclusive Resorts destination club saw a _____________ in new member sales in 2010 compared to 2009.
Increase
106
How long does the ownership last for the residential cruise ship?
50 year lease
107
T/F Ritz Carlton Club's Portfolio membership provides access to a specific residence size for 21 to 35 days annually, depending on the Club location selected.
False
108
What type of ownership currently exists for residential cruise lines?
Fractional and Full ownership
109
The average membership deposit for destination clubs is:
Between $400,000 and $500,000
110
What club offers VIP-access at The Kentucky Derby and The Masters Tournament in Augusta?
Exclusive Resorts
111
Which brands have residence clubs?
Four Seasons
Hyatt
St. Regis
Ritz Carlton
112
T/F The World Residences at Sea is available for anyone to rent a cabin without a special invitation.
False
113
T/F Four Seasons Residence Club Vail is selling their fractionals as 1/4 deeded interests.
False
114
T/F Most destination clubs require at least 2 to 3 new members join in order for a member to resign and receive the refundable portion of their deposit back.
True
115
T/F Destination club members cannot rent their accommodations.
True
116
T/F More than half of the people that own a timeshare are not happy.
False
117
The primary selling point of a timeshare is:
Hedge against vacation inflation
118
T/F Vacation ownership originated in the US.
False
119
Which companies have a timeshare segment?
```
Disney
Wyndham
Hilton
Marriott
Starwood
```
120
T/F If you own a timeshare, you must always return to the same resort every year.
False
121
What decade were timeshares created?
1960s
122
T/F When a person purchases a timeshare, the interest charged by banks is usually the same amount as what they would get for a home mortgage.
False
123
T/F When a person purchases a timeshare, they will typically see savings immediately.
False
124
T/F Timeshares are a good real estate investment.
False
125
Hyatt Vacation Club has locations in the following places:
Key West, San Antonio, Sedona
126
T/F Hyatt Vacation Club owners may redeem points for traveling to participating Hyatt Hotels and Resorts.
True
127
Which vacation ownership company has properties on Paradise Island, Bahamas at the Atlantis?
Starwood
128
T/F Timeshare owners are responsible for repairs of their resort in case of a hurricane.
True
129
T/F Owners can deed their timeshare to their friends and family.
True
130
T/F The minimum amount charged by Marriott Vacation Club to purchase points is $20,000.
False
131
T/F It is legal to withhold certain weeks if a timeshare owner knows in advance that there are going to be weeks that will never be available to the owners.
True
132
If a person owns a biennial timeshare, they get to use it:
Every other year
133
Marriott Vacation Clubs has vacation club resorts in the following destinations:
```
Marco Island
Orlando
Maui
Branson
Hilton Head
```
134
The statutorily required "cooking-off" period during which a purchaser can decide not to purchase the timeshare interest and rescind the purchase contract is how long in the state of Florida?
10 days
135
Most timeshare owners in Europe come from which country?
UK
136
What percentage of European owners own multiple weeks of timeshare?
Nearly 80%
137
Marriott Vacation Club members have access to more than 2,500 resorts in 75 countries around the globe through a relationship between Marriott Vacation Club and
Interval International
138
T/F Timeshare owners are not allowed to bank and borrow timeshare weeks. They must choose one or another when planning their timeshare use.
False
139
What company's OPC cannot approach you unless you approach them first?
Disney
140
T/F Maintenance fees have grown an average of 5% a year since 2005.
False
141
The transfer of use rights in a use period for a given use year into an exchange program. What is this called?
Deposit
142
T/F It is illegal to raise timeshare owner's maintenance fees if other timeshare owners default on their loans and are no longer making payments.
False
143
The marketing effort utilized in the sale of timeshare interests where the developer's marketing agent sets up an information booth or otherwise attracts prospects at areas located off of the timeshare resort premises for the purpose of taking a timeshare tour on the premises.
OPC
144
According to a 2008 study, 40% of timeshares in the US are located in California, Florida, and...
South Carolina
145
Timeshare can be segmented by owner occasion (how they use their timeshare). They include the following:
Activity
Family holiday
Swapper
Home away from home
146
What are the number 1 and 2 destinations in terms of number of resorts?
1. Spain
| 2. Italy
147
A timeshare plan under which the purchaser receives a specific use period (usually a unit week) in a specific unit that the purchaser is entitled to use each calendar year without making a prior reservation.
Fixed
148
T/F The percentage of people who buy a unit after sitting through a sales pitch has decreased to 10-15% recently from 20-30%.
False
149
Which exchange company offers an upgraded program that includes Hertz #1 Gold membership for expedited service in more than 40 airports worldwide?
Interval International
150
Which exchange company charges the most money for international exchanges?
RCI
151
Which timeshare company offers owner resale programs?
Trading Places International
152
T/F All exchange companies charge membership fees as well as exchange fees
False
153
T/F All exchange companies charge membership fees as well as exchange fees.
False
154
T/F Interval International is the largest exchange company in terms of number of resorts.
False
155
What percentage of timeshare resorts are affiliated with one or both II and RCI?
94%
156
T/F Once a timeshare resort is affiliated with an exchange company it is a lifetime commitment.
False
157
T/F Exchange companies were created in the 1980s.
False
158
When does a timeshare developer affiliate with an exchange company?
Before any timeshare has been sold
159
T/F International exchanges cost more because it is a much more complex process than a domestic exchange.
False
160
T/F Interval International owns and manages many resorts.
False
161
Trading Places International has found that 80% of vacation owners want to exchange to what percent of the destinations?
20%
162
Timeshare owners have similar demographic characteristics as:
Cruise guests
163
T/F RCI does not allow banking of its points.
True
164
T/F 5% of RCI's affiliated resorts have achieved the Gold Crown status.
False
165
T/F A timeshare sales person legally has to tell a timeshare owner that their week may be undesirable if they would like to exchange.
False
166
T/F International cruises and excursions, Inc. only offers discounted cruises and land and sea packages.
False
167
T/F A salesperson never handles the entire closing, it is always taken over and finished by a sales manager.
False
168
During the discovery portion of the sales presentation, what level questions lead the salesperson to understand the core feeling of the response to the question?
Third
169
T/F A motivation for why people purchase timeshares is education.
True
170
T/F During the discovery portion of a timeshare presentation, the salesperson should tell the tour why the way they vacation is wrong.
False
171
Two main reasons that people buy timeshares:
Hope to gain something emotionally and fear of losing something
172
What is typically the longest part of the sales process?
Discovery
173
The purpose of an information confirmation in a sales presentation is to:
Let the client know what they have said is heard and understood.
174
T/F Trial closing questions should not be asked during the property tour.
False
175
T/F The discovery portion of a timeshare sales presentation is not a time to sell anything.
True
176
People make judgments about salespeople in what period of time?
First 60 seconds
177
T/F A good salesperson will tell the tour everything they know about the product.
False
178
T/F If a tour asks if every resort has a swimming pool (or any other feature) the sales person should reply immediately with a yes or no statement.
False
179
T/F Most communication is verbal.
False
180
T/F Even if a person has a strong enough emotional motivation to purchase a timeshare, the objections they have will never go away.
False
181
T/F If the tour states they have no intention of buying and they are just on the tour for the free gift there is no need to go through with the discovery.
False
182
T/F The discussion of the timeshare is not part of the warm up portion of the timeshare presentation.
True
183
T/F It is important to make certain that the sales tour knows exactly what will be happening during a timeshare tour at the beginning of a presentation.
True
184
T/F A salesperson will always lose a logic argument with a timeshare tour.
True
