Timeshare is a term that describes a way of exclusive use of lodging for a particular number of days each year. Generally, timeshare in GrupoMayan is sold by weeks and it is also known as vacation property. Between 1992 and 2003, the industry of timeshare in Mexico grew up 50%, this growth indicates the feasibility of this kind of investment. Different destinations have increased their horizons under the regime of timeshare, as much for developers as for buyers like GrupoMayan, the first ones because they assure the sale of their spaces and the valuate of them, while customers have the best options in destinations and facilities, it must be considered as an advantage the possibility of exchange which made the idea of timeshare more attractive yet. Closely 15% of the buyers of timeshare in Mexico during 2003 already had a timeshare plan in other place, which explains how glad they were with this modality. The most of the buyers of timeshare are bought in Beaches destinations, between them Mexico has gotten a big recognition for developers that have not limited resources to build resorts of the highest level as GrupoMayan. Today there are several types of timeshare programs that allow to the customer to choose the kind of vacation property that fits to their needs. This way the purchase of timeshare can take several legal forms. Semana y unidad fija a perpetuidad (week and fixed week to perpetuity) The buyer receives a legal form allowing him the use of a specific condo, in a determined week, each year and forever, just like buying a house. The benefits can include the tips and the right for participating in the building administration. Under this agreement, the proprietary can rent, resale, exchange or donate the vacation interval. Derecho a uso (Right for use). The property of the development is maintained for the developer. The buyer obtain the right for using in one or more developments, during a specific number of years, generally between 5 and 50, and at the end the rights come back to the developer. Actually these plans are the most common used for new companies and basically they functions as a membership of a club. Vacation club or points programs These programs offer the major flexibility (GrupoMayan offers them too) of use in different date each vacation. The members of the club buy a package of points, which are used as “moneda de circulación” (pendiente traducción), to access to the different kind of suites, season or number of days. The number of points required change according to the demand of the partners, the size of the unit, season, location of the development and amenities. A vacation club can offer contracts of right to use or “a perpetuidad” (pendiente traducción) Fractioned property It allows to the consumers buy a bigger quantity of weeks, generally between 4 and 26, for a lower price. This property is common in sky or beach destinations. “Lock-off” or “lock-out units”. These programs allow to the owners the option to for use only a part of the unit in a date, and the rest in other. It can be rent or even exchanged one of the portions. Intervals can be sold as floating time or fixed time Fixed time is understood as the condo or unit bought to be used one specific week, this interval is assigned each year for that specific client. Floating time refers the use of lodging generally for a unique season of the year. The owner should reserve with time enough the date of the vacations because the confirmation is bases on the first call/first confirmation way. According to a recent study the 70% of the condos of timeshare are sold under floating time modality. The difference in prices is determined by the demand of the season that the customer is buying. Split-week. The members that prefer shorter vacations chose this plan because it is possible under this plan to divide the interval in two or three visits, commonly one visit for 3 nights and the other for 4, in two different dates at year. The reservations are generally confirmed under the modality of first call/first confirmation and according to the availability. Biannual property or alternative use, this property allows to the buyers the use of their property every two years, this type of purchase is cheaper, and it is ideal for those clients that do not take vacation every year or have less economical possibilities. The motivation for acquiring a timeshare According to the research by AMDETUR in 2004, the reasons to invest in a vacation property are: • Delight for the hotel, activities and unit • Certainty about facilities quality • Location • Flexibility • Company’s credibility • Exchange opportunity (RCI) • Saving • Internal exchange • Accessible terms • Opportunity of being owner in accessible prices • Politeness, attention and method during sales presentation Doubts According to the same research we found that the main reasons for NOT to buy a timeshare are, in importance order: • Afraid for increase of maintenance fees • Clients don’t believe the benefits of the offered plan • Geographical location • Inconvenience for traveling to the resort • Clients have to think about it • There is no certainty about the regular use of the property • Maintenance fees • Total cost in comparison with other properties • Price • The is not enough flexible • Exchange is inexact • Pressure during sales presentation • Reading, listening or experimenting something negative about timeshare • Monthly payment • Past due payments • Method, personality, rudeness and appearance of the sales representative. • He or she was to the sales presentation only for the present without intentions to buy. |