The Value of Timeshare Presentations, From an Industry Expert

While researching a recent family trip to Disney World, my wife and I placed calls to several Orlando hotels to find the best package we could. The concierges at the larger hotel chains were quick to offer generous discounts if we were willing to participate in a 90-minute "vacation ownership" presentation with breakfast provided.

Of course, this term was conceived to replace "time-share" as a result of its largely negative connotations. The discounts and perks were indeed tempting. One offered a two-night stay for only $19. Another dangled $200 in theme park admissions and 50% off a second night stay. While we contemplated the deals, the hotels called us every day for a week. This caused us to ask ourselves, "If the vacation ownership is such a good deal, why are the hotels so aggressive and offer such large incentives?" We ultimately passed, but soon discovered our apprehensions were well founded.

I met Steve Ross during our two hour wait for the Indiana Jones Stunt Spectacular at Hollywood Disney. He currently is employed as a travel agent in Los Angeles, but had once been trained as a time-share salesperson. The following is the transcript of our conversation.

Chet Harlow: So why are the hotels so aggressive in marketing the vacation ownerships?

Steve Ross: Well, the last thing they want are vacancies. Their objective is to have people constantly occupying the hotel space. So it is important for them to get families to the presentations.

Chet: I consider my family an average household, and I would not attend one of these presentations with the intension to buy a time-share.

Steve: They know that. They know the average person attending has already said to their spouse, "We are just here for the Magic Kingdom tickets and to throw a few free donuts down are throat, and there is no way we are going to buy anything!" (laughs)

Chet: Sounds like a tough sales gig.

Steve: Not really. If the average sale price is $20,000, and they sell to 1 person in fifty each day, you're soon talking about a lot of money.

Chet: What kinds of sales tactics are used?

Steve: Well, the representative who greets the family is supposed to act like a long, lost friend. The logic being it is more difficult to say no if you like the person. They might feel they are letting the person down by not buying. Also, they ask questions about the person's average vacation costs and stretch it out over the next "x" amount of years. Then they compare it to the cost of the time-share. When I was a rep, if a person was hesitate after that, we would tell them the special rates and points from buying on that day would disappear as soon as they walked out the door. Of course that was BS because you could always go to another presentation. But you would be surprised how often that worked.

Chet: Do time-shares make sense for anyone?

Steve: I would say only for those with a ton of disposable income. Vacations are not a necessity, especially in tough economic times. But let me ask you this, if you were rich would you come to one of those presentations for a free breakfast and Sea World tickets?

Chet: Absolutely not.

Steve: Bingo.