Resales: Case Study for a New Approach

by Brad R. Evert Ph.D. MIS
Chief Information Officer
World Access Systems Inc.

Chances are if you’re reading this article, I’m singing to the choir. But our industry has needed a fresh approach to the secondary market for some time. When I entered the resales business by buying CondoWorld in 2004, I set out to charter a new course. I thought long and hard about what it will take to help consumers maintain the value of their timeshare weeks when they wish to sell them. Plus, I’ve thought about how we could provide services that would enhance, rather than compete with, resort developers’ and management companies’ sales and rental programs.

I recognized a low-cost, standardized distribution system as a key component and catalyst to healthy growth. To achieve that goal, World Access Systems embarked on an ambitious project, and in June of 2005 launched the Timeshare Information Exchange (TIX) live market feed. We continued to pioneer change in 2005, 2006 and 2007 delivering “sign online” digital signature technology, multimedia, video production, closing and technology services, live online support, market-watch reports; and offering at-cost transactions. I was surprised at the consumer and industry response. 1) Although we provided more service than ever before, there was a false perception among consumers that if others were charging a listing fee of $300-1,000 and World Access Systems only charged a $49.00 transaction fee, our efforts must somehow be substandard. 2) Reporting the robust performance of the TIX feed and expanded services delighted owners, but fueled the deep-seated mistrust by developers within the primary market, where it is assumed that every consumer who purchased a resale week was taking money from the developer’s sales team.

We reached several conclusions along our journey, which I recap as the World Access Systems’ pledge:

1) World Access Systems’ objective is to support the primary market by offering resilient, true market-priced resale inventory, eliminating the traditional undermining of primary market value by publicly promoting deeply-discounted resale inventory.

2) World Access Systems will continue to attract and educate new consumers to the timeshare market by providing a strong rental network.

3) World Access Systems will continue to build on its Private Channel Network, reaching vacationing families new to the timeshare experience, and connecting them to resort inventory at no charge to resorts.

I recognized that sustained growth depends on our ability to prove ourselves as a company of ethical boundaries and aspiring integrity. Earning trust takes time, but we see more resort operators – developers, managers and HOAs – opening up to us, some exclusively.

The key, for World Access Systems, is to continue to build out a broader base of renters – educating them how fun, easy and affordable renting a timeshare unit is – and condition them to enhanced vacationing in vacation ownership condos. This both reinforces our industry in society, and organically grows well-informed future owners. But, how do we effectively compete in today’s instant-gratification, 24/7, high-powered media world? In two words: Get Connected! Utilizing our technology investment in TIX, we establish solid relationships with relevant private channels to penetrate new markets and increase demand. World Access has inked deals with travel agencies, retail groups, membership outfits and other travel-related and non-travel-related organizations. All are now connected to the TIX network.

This market demand needs to be satisfied, and our objective is to offer to consumers a plethora of options. We want to keep them coming back, rather than surfing for the next ‘better offer’ in a detrimental price war. When our customers feel we’re giving them the optimum number of choices, we build customer loyalty, and affiliate appreciation.

Dramatic industry growth requires a measure of cooperative competition. I realized revenue-sharing from a connected pool of suppliers would be the ticket to enhance the number of choices we offer. World Access seeks to partner with resort entities looking to introduce new vacationers to their property with no distribution cost. Many of these vacationers will either buy a resort week directly from the developer while they’re on-site or from us. Statistically, the sooner they buy once, the sooner they buy again.

One impediment preventing management from allying themselves with rental/resales companies, such as World Access, is pressure from their own internal sales and rental programs. We have programs that will seamlessly support a resort’s in-house efforts at varying participation levels. Plus, there is tangible advantage to the resort when we take care of the distribution and “red tape” of the resale process, such as title and escrow services for buyers and sellers.

So, what’s in this for you as a resort professional? We want to affiliate with management companies, exchange groups and resort operators of all kinds to 1) introduce new vacationers to timeshare by promoting your product and 2) trigger rental and resale revenue that would otherwise be non-existent. We can be as public or discreet as you wish. We’re here for the long-term and so are you.

We are all in this industry together. In 2008, World Access Systems will celebrate ten years of industry service. As our business continues to mature, along with other vacation ownership entities, we will find further benefits to a unified front. After all, developers and operators, along with timeshare related companies such as World Access Systems, stand only to benefit from introducing more vacationers to the product. Regardless how consumers decide to rent or purchase a timeshare week, we all benefit when they do.