• The TUGBBS forums are completely free and open to the public and exist as the absolute best place for owners to get help and advice about their timeshares for more than 29 years!

    Join Tens of Thousands of other Owners just like you here to get any and all Timeshare questions answered!
  • TUG has a YouTube Channel to produce weekly short informative videos on popular Timeshare topics!

    Come check it out for a chance to win a Free TUG membership (or renewal) just for helping out!

    Read more here
  • TUG has now saved timeshare owners more than $19,000,000 dollars just by finding us in time to rescind a new Timeshare purchase! A truly incredible milestone!

    Read more here: TUG saves owners more than $19 Million dollars
  • Our 2022 Timeshare Survey is now complete and the full results as well as our expert and witty analysis of each question is available here: Here We hope you enjoy reading the results as much as we did!
  • Follow the TUG Member Banner as it travels the world on vacation with Timeshare owners! Also sign up to get the banner sent to you so you can submit a photo of your vacation with the banner to share with TUG! Banner Thread
  • Sign up to get the TUG Newsletter for free! 50,000+ subscribers! Latest resort reviews and the most important topics discussed by owners during the week!
  • Our official "end my sales presentation early" T-shirts are available again! Also come with the option for a free membership extension with purchase to offset the cost!

    Read more Here
  • A few of the most common links here on the forums for newbies and guests!

Starwood hurting...

bizaro86

TUG Review Crew: Veteran
TUG Member
Joined
Mar 5, 2008
Messages
3,235
Reaction score
2,066
Points
448
Location
Calgary, AB, Canada
Quoted from the article referenced above:
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.
I think that's the first reference I've seen to a timeshare developer cutting prices.

Michael
 

LisaRex

TUG Review Crew
TUG Member
Joined
Mar 10, 2007
Messages
6,791
Reaction score
317
Points
518
Location
'burbs of Cincinnati, OH
Resorts Owned
Used to own: WKORV-N; SVV - Bella
From the annual report:

Vacation Ownership
"Total vacation ownership reported revenues decreased 27.4% to $183 million when compared to 2007. Reported revenues are impacted by the timing of the recognition of deferred revenues under percentage of completion accounting for projects under construction. During the third quarter of 2008, the Company was actively selling vacation ownership interests at 20 resorts and is also in the predevelopment phase of new fractional or vacation ownership resorts in California, Colorado, Hawaii, and Mexico.

Originated contract sales of vacation ownership intervals decreased 29.5% primarily due to the sellout of the Company’s Westin Ka’anapali Ocean Resort North in Maui and an overall decline in demand. The average price per vacation ownership unit sold decreased 25.4% to approximately $19,000, driven by a higher sales mix of lower-priced inventory, including a higher percentage of lower-priced biennial inventory in Hawaii. The number of contracts signed decreased 6.1% when compared to 2007.

The Company did not sell any vacation ownership receivables during the third quarter. As such, the Company did not recognize the previously anticipated gain of $10 – 15 million during the quarter. Conditions remain uncertain in the asset backed securities market, and it is unlikely that conditions will improve before year-end. As a result, the Company’s full year guidance no longer includes any gains from securitizations in 2008. Given declining sales in the vacation ownership business, the Company is resizing the existing cost structure. 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!
 
Last edited:

nodge

TUG Member
Joined
Jun 10, 2006
Messages
1,321
Reaction score
1
Points
36
Location
Portland, Oregon
From the annual report:

Vacation Ownership
". . . 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!
If there were anyone at SVO who had stepped up to the plate here and at least talked to us owners, let alone tried to work to improve things for us owners, or at least worked to stop SVO from screwing us owners, I bet we’d be willing to throw our collective weight around with the powers that be to help ‘em keep their jobs. But they didn’t, so good riddance.

As all of you “downsized” SVO VP’s search for your new jobs, I just want to let you know that sometimes the best way to avoid getting those pesky “I’m unemployed blues” is to take a really expensive vacation!

Accordingly, we have an “exciting opportunity” exclusively for you. For only $26,000, you can pay retail for a 10 day African Safari AND earn 3000 SPG points! Not interested? How about a cruise, exclusively for “downsized” SVO VP’s, to get your spirits up? Everyone loves cruises, and sure you’ll have to pay retail again, but you can use SPG points for excursions, and earn 3000 SPG points! No!?! Hmmmm.

If reading SVO’s communications to us owners over these past few years has taught me anything, it’s that now is always a good time to plug an overpriced trip. If only I had learned a little compassion from those communications, I’m sure I would have been able to come up with some much better advice for you.

Bon Voyage!

-nodge
 
Last edited:

aeroflygirl

TUG Member
Joined
Apr 17, 2007
Messages
174
Reaction score
14
Points
378
Location
Indiana
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.
 
Last edited:

SDKath

TUG Member
Joined
Dec 30, 2007
Messages
3,072
Reaction score
10
Points
273
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.

Katherine
 

stevens397

TUG Member
Joined
Jun 6, 2005
Messages
808
Reaction score
0
Points
16
Location
NJ
nodge-

I DEFINITELY have to buy you a beer sometime - I'd even spring for a single malt! You crack me up.
 

DavidnRobin

TUG Member
Joined
Dec 20, 2005
Messages
11,439
Reaction score
1,924
Points
648
Location
San Francisco Bay Area
Resorts Owned
WKORV OFD (Maui)
WPORV (Kauai)
WSJ-VGV (St. John)
WKV (Scottsdale)
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.

Katherine
I spoke with SVO Owners Services and asked about the 5* Elite change - the specialist said that they had no prior notice and it was done to make 5* more exclusive (right...) - where I think they missed an opportunity - among many (like more notice to sell more TSs) - was that they could have kept 5* the same but required that PFL needs the additional 90K SOs.

This way they could have said - Hey, we hit our 2000 5*/PFL - now it takes 90K more SOs to get PFL.

Oh well - little impact on us - I did not see 5*/PFL worth it anyway (for us). I am happy where we are TS wise - especially now that we are getting that adjacent week at WSJ.

How we make owning 5 1/2 SVO TSs work for us...

WKV 1Bd Prem/Plat (x2) - 81K SOs - Resale: Stay (great resort), Rent (covers MFs plus - 2x now), Exchange (low MFs)
WKORV OF Dlx 1Bd - 81K SOs - Resale: Stay only (paid premium, high MFs, unique TS, great resort)
WKORV OF Dlx Studio - 67.1K SOs - Resale: Rent (cover MFs - 3x now, unique studio), Stay (extend vacation by a week - unlikely since we can SVN exchange into WKORV), Exchange (unlikely)
WSJ 2Bd/3Ba - 2 weeks - 81K SOs - Resale: Stay and Travel with Friends (most likely - 3x now, great resort), Rent (cover MFs plus), and now exchange with increase in SOs (unlikely)
WPORV 1Bd - 81K SOs (EOY): Stay (most likely) - bought from SVO, but got lots of SPs and some other perks (requal, 3*), Rent? (unlikely), Exchange (nope), convert to SPs (nope)
WPORV studio - 67.1K SOs (EOY): Stay (likely), Travel w/ Friends (likely), Rent? (hard to know at this point), Exchange (nope), convert to SPs (nope)
 
Last edited:

SDKath

TUG Member
Joined
Dec 30, 2007
Messages
3,072
Reaction score
10
Points
273
Great units you own, David. I think the Robins need credit because you and Tom have the nicest TSs around!!! Must be a woman's influence. :D

So are you hanging on to WPORV for now.

FYI Kierland on eBay didn't sell and got bid up to $14,200 only. It had a reserve (I think at $17,000) so it didn't go. If they didn't have that reserve, I might have been tempted to bid on it.

I like the idea of PFL needing more SOs. That's like creating something above Platinum. Did you ever see that Frasier episode with Frasier and Niles joining an exclusive gentlemen's club? They are allowed through the platinum door and feel all special until they see an ever higher level -- Diamond. ;)

Katherine
 

DavidnRobin

TUG Member
Joined
Dec 20, 2005
Messages
11,439
Reaction score
1,924
Points
648
Location
San Francisco Bay Area
Resorts Owned
WKORV OFD (Maui)
WPORV (Kauai)
WSJ-VGV (St. John)
WKV (Scottsdale)
Yep - I am lucky - and she doesn't mind when I drunk dance nekkid on our OF lanai (lol)

reserve bids on eBay are a mistake - if you want out - there are lots of ways to get out is low bid.

I have no plans for WPORV other than stay there every odd year in Sept...
(unfortunately the lanai's at WPORV aren't secluded... )
 
Last edited:

SDKath

TUG Member
Joined
Dec 30, 2007
Messages
3,072
Reaction score
10
Points
273
From AP:

"Starwood warned that 2009 will likely include softening worldwide revpar and continued weakness in its vacation ownership division. The company said it will look to offset some of that by lowering vacation ownership, hotel and corporate overhead costs. It also expects a "significant" pullback on capital expenditures for owned hotels and the vacation ownership business."

"Significant" pullback
1) No Aruba
2) No new resorts (?cx troubled MX plan, WKV expansion pulled?)
3) Higher 5* PFL numbers
4) More "rules" to prevent upgrades/retros etc
5) Firing sales staff
6) Further devaluation of points.

Hmmmmmmmm. :rolleyes:

K
 

aeroflygirl

TUG Member
Joined
Apr 17, 2007
Messages
174
Reaction score
14
Points
378
Location
Indiana
SVO Cash Generating Ideas

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.
Let's make this a wish list for how we would spend more money with SVO...

1. Limited time offer for resale owners to join SVN for a fee
2. Deals to purchase upgrade of currently owned units
3. Bonus starpoints for early payment of maintenence fees
4. Limited time offers for usage upgrades with StarOptions plus cash

Please feel free to add positive constructive ideas to this list!;)
 
Top