2017 - "State of the Timeshare Industry" by ARDA

[TUGBrian]

only real notable item in the video was that they reported 9.2billion in sales in 2017 alone...

seem to really believe they are making huge strides in "consumer advocacy" if you listen to the video.

guess if you ignore the unethical sales practices of some of your largest members, as well as completely ignore timeshare resale scammers...you can claim huge successes on the other 1% of the problems =)

 

[Bwolf]

I could argue that ARDA is the problem, but I won't.

 

[WalnutBaron]

I could argue that ARDA is the problem, but I won't.

I will. When the timeshare industry's largest advocacy organization actively lobbies on behalf of timeshare developers--effectively not only condoning but actually endorsing the devious sales practices of the developers' sales weasels, who are trained to deceive, lie, and prevaricate just to get the sale--you have the seeds, soil, and fertilizer to grow an industry weighed down by a deservingly dismal reputation. Furthermore, ARDA works to protect developers from lawsuits by timeshare owners who have been outright screwed by those same developers. It's only those timeshare buyers who are informed (thanks largely to TUG) and understand the true underlying value of their timeshare that get real value out of timeshare ownership. I would estimate that's less than 5% of timeshare owners.

 

[theo]

I agree wholeheartedly with all of the above astute and well articulated observations. I suppose it should come as no real surprise that the Resort Developers Association truly represents only the best interests of --- resort developers.

As a relevant aside, what I find quite troubling is the powerful influence that ARDA lobbyists have on timeshare condo-applicable legislation.
This is nowhere more obvious than what has occurred in the state of Florida in recent years. Some of the timeshare / condo related measures recently enacted are nothing short of overtly anti-consumer; self-serving ARDA lobbying efforts are obviously and directly responsible. Quite sad.

 

[Arusso]

only real notable item in the video was that they reported 9.2billion in sales in 2017 alone...

seem to really believe they are making huge strides in "consumer advocacy" if you listen to the video.

guess if you ignore the unethical sales practices of some of your largest members, as well as completely ignore timeshare resale scammers...you can claim huge successes on the other 1% of the problems =)

ARDA has always had a serious conflict of interest because what is important to developers and sellers of pre-paid real estate based vacation clubs is very different to the people who paid for the services aka consumers. While there are areas of overlap, there is no compelling business reason yet as to why developers need to be more consumer friendly. So, in my opinion, the only real solution is to create an entirely new entity comprised of owners of "time share" properties or those who have pre-paid for the use of time-share properties or are members of vacation clubs that represent the interests of consumers. Imagine an entity that could represent millions of consumers sharing information, that can communicate with one another. Moreover, developers would be forced to respond to the expectations of consumers and only those entities that respond to market demands and produce a quality product at a competitive price would thrive. The others would simply fade away. This is what the industry is sorely lacking.

While TUG and like forums are wonderful at offering the opportunity to converse, none currently has the consumer and/or lobbying clout to be able drive the reforms that need to take place. Of course, this would take money. It would come from consumers purchasing a membership in an organization that represents them instead of developers.

 

[T-Dot-Traveller]

Regardless of the "spin " If you use 25 K as an average . / $ 9.2 billion = 36,000 (new?) contracts.

Thanks Brian - for posting .

 

[TUGBrian]

I thought the "Average" was still in the 18/19k range? or at least thats the last actual number i remember seeing.

 

[Swegnson]

[QUOTE=" It's only those timeshare buyers who are informed (thanks largely to TUG) and understand the true underlying value of their timeshare that get real value out of timeshare ownership. I would estimate that's less than 5% of timeshare owners.[/QUOTE]

I am hopeful that many more than 5% get real value out of timeshare ownership. We have owned 22 years. We, and many others, go back to our home resort year after year. That said the lack of any kind of a real secondary market is, to me, a crying shame. I would like to see laws requiring developers to inform potential buyers of their alternatives to buying new.

 

[theo]

... the lack of any kind of a real secondary market is, to me, a crying shame. I would like to see laws requiring developers to inform potential buyers of their alternatives to buying new.

I don't think it's realistic to expect or hope that developers could ever be legally required to inform buyers about the secondary (resale) market. ARDA would promptly crush any such proposal like a soft grape beneath a boot sole.

Just as new car dealers will never be required to overtly advise showroom customers that good used car deals exist, consumers have some inherent personal responsibility to at least exert some effort to learn about and examine options entirely on their own. Let's be honest here; no one gets forced into a developer sales presentation at gunpoint.

That said, I have long expressed my own (admittedly equally unrealistic) hope that developers would at least be required to inform buyers, in writing at the time of contract execution, that their purchase may have little or no monetary value by the time they leave that sales room and, more specifically, that the only real value of their purchase is in the actual use and enjoyment of the "product" purchased. That's unlikely to ever happen, but "hope springs eternal".

 

[LannyPC]

That said, I have long expressed my own (admittedly equally unrealistic) hope that developers would at least be required to inform buyers, in writing at the time of contract execution, that their purchase may have little or no monetary value by the time they leave that sales room and, more specifically, that the only real value lies in the actual use and enjoyment of the "product" purchased. That's unlikely to ever happen, but "hope springs eternal".

Yes, that would certainly be nice to see. And yes, I agree that such a law will likely not be enacted in the foreseeable future.

But if it were enacted, some of those sales people would probably hide that info in a secret compartment like what Westgate does with rescission instructions.

 

[theo]

...if it were enacted, some of those sales people would probably hide that info in a secret compartment like what Westgate does with rescission instructions.

Completely avoidable, if this "real value" advisory (and the rescission rights notice) were both required to be printed directly above the contract signature line. It's an academic point however; neither requirement will ever happen.

 

[Wahoo Josh]

Regardless of the "spin " If you use 25 K as an average . / $ 9.2 billion = 36,000 (new?) contracts.

Thanks Brian - for posting .

I think you may be missing a digit. 368K contracts if the average is $25K.

Over 500K contracts if the average is $18K

 

[TUGBrian]

someone mentioned in an email that the average price in 2017 is now 20 and some change.

 

[theo]

someone mentioned in an email that the average price in 2017 is now 20 and some change.

Yup. The 2/5/2018 cnbc.com article by Barbara Booth (mentioned yesterday in another thread in this BS&R forum) indicates $20,940 as the "average cost today". She cites ARDA as the source of that figure, which plainly indicates that the figure includes developer sales only, without any consideration or regard to "secondary market" transactions.

ARDA consistently does not even acknowledge that a resale market even exists at all in the first place. I suppose that's understandable from their perspective --- why would they want to overtly trumpet (or even acknowledge) the fact that developer-sold products are worth pennies on the dollar before the developer-direct buyer ever leaves the salesroom?

 

[TUGBrian]

arda does release the average retail price every year in their annual timeshare industry publication (i dont believe that publication is available for us mere mortals though)....but they are usually pretty good about revealing that particular number each year....

especially since its used in so many sales presentations to trick owners into thinking that timeshares go up in value every year simply because the "average retail price" goes up every year.

 

[chapjim]

Status Of The Hen House by The Fox.

 

[simpsontruckdriver]

As a side note, who pays ARDA? Owners. It’s usually a separate charge on their MF bill for $5, which adds up. A lot of people do not know they can refuse that payment, since ARDA works for the developers.

TS

 

[buzglyd]

The $5 is for a legislative PAC. It has nothing to do with ARDA operations or salaries.

 

[TUGBrian]

indeed, owners are donating to a political action committee that lobbies politicians on behalf of developers...

an even better reason to not check that box on your annual maintenance fees.