virna2016aprjun

ALUVILA:

The shared economy is creating more awareness about

alternative accommodations and timeshare resorts rank very high in

that category. The timeshare industry’s challenge always was to cost-

effectively attract customers who have a high propensity to buy the

product. The sharing economy marketplaces are bringing hundreds of

millions of leisure shoppers looking for alternative accommodations.

This is a great opportunity to reach a large number of prospects.

NUSBAUM:

I know some people tend to be very protective: “They

don’t have rules and we do. Shame on them.” Well, there was a time

when people pointed at us in the same way. It is a natural iteration for

the marketplace to get ahead of the regulatory environment. That will

be harmonized.

What could/should

be addressed in

order to create a

more level playing

field for traditional

lodging, timesharing,

and companies such

as Airbnb and VRBO?

ALUVILA:

The biggest challenge

is these are not public accommo-

dations. They are private homes.

So they don’t meet a lot of the

criteria that the public accommo-

dations must have. It’s new and

legislation has not caught up with

the changing business models,

so laws are not there to protect

the consumer in all these

instances. There is a lot of work

to be done to create a more level

playing field. Based on the sig-

nificant growth in consumer

demand for alternative accom-

modations, it’s clear that all these

forms of accommodations will find a way to coexist.

MILLER:

No question about that. What happens is these companies

come on so fast and proliferate so quickly, it catches the regulatory

agencies off guard. So if you look at an Airbnb for example, all the

cities are now waking up and saying, “Whoa, are these places zoned

for transient lodging? Are we collecting our hotel and lodging taxes on

these bookings?”

Certainly, these cities don’t like missing tax revenues so I think

they’re going to jump into the middle of these transactions pretty

soon. Which won’t kill the model, but just add some cost to it.

SAFT:

A level playing field means everybody playing by the same

rules. If regulators feel those rules are important for long-established

and reputable businesses, then it is only fair that they either impose

those same rules on new entrants, or lift restrictions that are currently

unequal.

Ultimately, regulation is about safety and security, and I do not

believe that asking for background checks, insurance requirements,

and attestation that providers are not violating any condominium,

local, municipal, or state rules should be considered to be an outra-

geous request.

NUSBAUM:

I believe that there is going to be a period of regulation,

and that may be an opportunity for us. There may be some regula-

tions that don’t make sense anymore, and looking through the view-

point of these new businesses might be an opportunity for us to shed

unnecessary ones.

But if they are necessary for us, then I advocate for them to be

necessary for them. And if there’s a compelling reason to grandfather

them out, then there needs to be huge disclosure. I could see 28-

point type that says: “There is no inspection for fire and health safety.

Buyer Beware.” “Our ability to control

the keys is not within our purview.

Buyer Beware.”

How can the vacation

ownership industry

capitalize on the

success of the sharing

economy?

SAFT:

The sharing economy is the

ultimate validation of our business

model. It should be used on every

sales table as an example of what

people want when they travel: the

space and convenience of home.

However, we have the added benefit

of resort-like amenities, which further

set us apart from traditional Airbnb

lodging.

MILLER:

I think the standard vacation

home rental business can be comple-

mentary to the timeshare business.

Because you have consumers seeking

larger-than-traditional lodging accom-

modations in great resort areas, and willing to pay top dollar for them on

a rental basis — and that’s always been a good client for a traditional

timeshare product.

NUSBAUM:

I would not be surprised if five years from today, you

didn’t go to Airbnb and there’s a whole category for timeshare. Already

HomeAway and VRBO have a solution that puts timeshare product on

their sites as inventory.

ALUVILA:

Consumers who buy timeshare and vacation clubs fit the

profile of customers who use the major vacation rental sites. We are

working with vacation clubs to offer vacation homes as part of the

product offering, similar to cruises and other leisure products that are

part of their membership.

It’s a good time to re-evaluate the vacation club product offering

based on growing customer interest in sharing economy products.

When consumers buy next-generation vacation club memberships,

they will have little incentive to go outside the club system if their

membership offers home rental as part of the program.

TIMESHARE

TALK

RESORTDEVELOPER.COM

vacation industry review

APRIL – JUNE 2016

“A level playing field means

everybody playing by the same

rules. If regulators feel those rules

are important for long-established

and reputable businesses, then it

is only fair that they either impose

those same rules on new

entrants, or lift restrictions that

are currently unequal.”

— Jared Saft, vice president of sales and marketing,

Westgate Resorts