Timeshare trial programs prove successful
AP HOTELMOTEL.COM- “Timeshare trial membership programs might sound too good to be true because most offerings allow consumers to sample the benefits of timeshare with no long-term commitment. Timeshare operators say it’s a cost-effective sales-and-marketing tool that effectively recruits potential clients. Industry experts say it is a win-win for consumers and developers.
“It’s a very vital piece to the business because there are a number of clients who like what they see, and can afford the product, but just are not ready to make the commitment,” said Andrew Gennuso, president of Sunterra’s Resort Marketing International, which is based in Las Vegas. “It’s an opportunity to test the program on a limited scale.”
Escapes is Sunterra’s trial program, which is pitched at the closing table to “on the fence” customers about making a permanent commitment to timeshare ownership. Guests become owners on a limited basis—often up to 18 months—for a reduced number of single-usage points.
“It provides the buyer with the opportunity to test-drive the product before they make the decision,” Gennuso said. “Sometimes a life situation or timing isn’t right to make a purchase.”
Vacation Introduction Program, or VIP, is Hilton Grand Vacations Club’s trial program and is primarily offered to people who have participated in a formal presentation, but aren’t quite ready to purchase.
“It’s an opportunity to get a feel for how the system works and a nice introduction to our services and how we function,” said Kim Krieger, senior vice president and chief club officer of Orlando-based HGVC.
Trial programs are popular because they provide qualified leads. Gennuso said trial owners are three to four times more likely to purchase a membership than regular nontrial customers.
“The efficiencies and quality of sales are high,” Gennuso said. “It’s a very conscious, well-thought-out decision. They know what they want, and they are much more comfortable making the decision.”
Krieger agreed, saying a very high percentage of people purchase full deeded interest after sampling their program.
“The majority do purchase, and we’re excited about that,” Krieger said. “It’s a testimony to the product.”
Simon Crawford-Welch, executive v.p. of sales and marketing for Chicago-based Shell Vacations, said the company’s Explorer trial program has a high conversion rate. About 40 percent of the people who buy the Explorer option convert to full membership, he said.” Click here for the full article.
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