Behind stagnation and suspension of timeshare market development there is one serious phenomenon. On the one hand by the world’s leading analysts it is recognized not to be so significant on the other this is what is really stopping the direction from a massive breakthrough.
The core of the issue
It’s not a secret that averagely vacation time in the world is normally two weeks. However this average for Timeshare and its segment is only one week. What is it connected with? First of all with a customer not being well-informed. The main sector of sales enables “to sell” only the basic package that does not enable to appreciate all charming potential of an offer in perspective. Then follows the price of Timeshare that is 10-15 thousand dollars for more or less decent resort. A longer interval will be much more expensive that triggers legitimate concerns among customers. Not everyone is able to purchase vacations for the price of an average flat. Customers seem to be more attracted by a package offer where they are not obliged to pay large sums of money at one time. Here arises the problem. A wish to have vacations several times a year is confronted with the necessity to pay for an expensive offer. Thus out of saving needs only one week is purchased. In the outcome the system that has to systemise and logically improve the parameters of rest becomes a heavy burden.
What about vacation planning in an average family? Time, location and possibilities are agreed upon. All the costs and time spent on the road are taken into account as well. After all those matchings it turns out that out of two weeks only one is used in reality including time spent on the road. Only 5 days are left. If you consider financial costs you had better not set out on a trip in the first place.
Now let’s compare with Timeshare
Not considering safety by doing simple math a family of four will spend on vacations only 7,5 dollars per person a day. Saving is obvious here. The math shows that Timeshare is extremely beneficial for two weeks of planned vacations. Yet again we encounter one-time costs.
How to bring them to affordable figures? For solving this issue a new service was created - tourist mortgage. This is a wonderful opportunity to reduce costs buying out Timeshare. The most interesting here is that the final calculations show such a solution is far more money-saving than packaging offers. Just a mere example: two weeks of Timeshare in a European 4-5 star hotel will cost about 30 thousand dollars. Taking into account the mortgage rate of 3% an average monthly payment will make around 70 dollars or 800 dollars a year. Considering managing fees and dividing the sum by two weeks of rest we get two weeks for 25 dollars per person a day. A hilarious figure to think of.
The challenges of the industry
With these indicators it is still a mystery why Timeshare is not hugely popular. There is also a reason here. The main problem is insufficient amount of offers with big intervals. Often only one is offered, hardly ever three and very seldom four. So why not take a wonderful mortgage then right on the resort? The problem is hidden in the core of Timeshare offer.
- Banks cannot give a mortgage for something in another state’s zone of influence. Besides not all banks are prepared to operate within tourist mortgage scheme;
- By law Timeshare is represented only in four countries: China, Europe, Great Britain, U.S. From here emerges the issue described above;
- Limited supply on existing resorts. The business model of Timeshare was not fully accepted by developers and a number of offers is lagging behind demand;
- Limited target audience. Resorts restrict sales in three directions: families of two, age limit from 30 to 65 and combined family income not less than 100 thousand dollars. It is not considered that these rules were actual in the past and the situation changed long ago.
- The errors in marketing. The existing system of Timeshare sales does not enable a potential customer to fully realise the offer. Often purchasing happens almost “blindly” when managers literally impose quick sales enjoying short-term gains.
New trends and a way out of stagnation
The culture of developing such a phenomenon as tourist mortgage was assisted by China. As always all cutting-edge ultra-sophisticated stuff takes roots over there and transforms into new sometimes more reasonable and convenient shapes for a customer. My Money company considering both the definition of Timeshare itself and the approaches to sales process made it possible to simplify tourist mortgage deals. The specialists of the company found a way out of a difficult situation by offering a better solution. Here are the questions to which it was possible to find the appropriate answers:
Issuing a mortgage for residents of one country
The company decided to connect all the marketing platforms spreading Timeshare offers to information field. Each of these platforms broadcasts the wishes of the People’s Republic of China to purchase a timeshare. Online selling enables potential customers to study all the offers on the market and mindfully approach the issue of Timeshare purchasing being aware of all its economic advantages. My Money committed to responsibilities of a mortgage broker in the biggest banks of the country simplifying the process of taking mortgage for their customers. Such an approach enabled to detect potential Timeshare customers and regulate the mutual interests of financial organizations and borrowers creating a comfortable and transparent system.
Having several Timeshare intervals consistently without restrictions by resorts
The first step was the development of fractional construction with payments from tourist mortgage fund. Thus a Timeshare fund with convenient interval distribution is formed for customers in advance. For the secondary market with unsold long-term timeshares there appeared a solution too. Now the owners of several intervals have no need to sell the unwanted shares in parts. My Money is ready to buy off the offers wholly for market price. Further the company managed to connect the Stock split system to work known in the middle of the 70s. In short purchasing a timeshare of one category you can exchange it for another category with increasing or reducing an interval without problems. Furthermore the necessity of buying or selling new intervals is no longer required.
Thus the communication between the owners of several periods and those wishing to purchase a timeshare for comfortable vacations for the whole family is simplified.