Operating income from the unit will tumble as much as $115 million this year compared with 2007, as demand for Hawaii vacation shares slows, forcing price cuts, Starwood said.
From the annual report:
". . . The Company has closed three sales centers and is in the process of reducing overhead to better fit the revised expectations for the business."
Uh oh. The VP of Interstellar Communications had better watch his back!
Yeah, like imagine if they said, "Hey folks, we are changing the 5* SO requirement in 1 month, so everyone get your contracts in now!"
I bet you they would have sold a few more units at full price... Did you see that the average unit sales is $18,000. Aint no one buying those $40,000 Palm Springs units right now.
An idea for cash generation would be to invite resale owners of voluntary resorts to join SVN for a fee during a limited time offer. They could even throw in some deals on upgrades. Just think of how many of us would jump on that! It's all about knowing your market and selling what the customer wants.