Wyndham Shares Plunge, Marriot Lay Offs

We've been rigorously tracking the effects of the current economic downslide here at the Timeshare Relief blog. Back in August we reported that Wyndham published signs of a slump. Now the Forbes headline reads a full-on plunge:

http://www.forbes.com/feeds/ap/2008/10/06/ap5515025.html


Shares of Wyndham Worldwide Corp. plunged with the broader market on Monday after the hotel company announced changes to its timeshare business and restructuring charges.
Indeed, and the effect on earnings will only be ascertained after the quarter's end. What changes can we expect? One humorous comment on the article suggests that Wyndham will be taking refrigerators out of their timeshare rooms and replacing them with mini bars...

Wyndham plans to refocus its timeshare business beginning in the fourth quarter. The Parsippany, N.J.-based company will shift its sales and marketing efforts to consumers with higher credit quality and cut back on timeshare development.

So, in other words, we can expect more timeshare resales...

Wyndham said its timeshare business "performed well" in the third quarter with slight year-over-year gains in sales, tours, and volume per guest. The company said its consumer finance portfolio also continues to perform within expectations.
But the 4th?

Wyndham's stock has dropped more than 20 percent since Marriott International Inc. (nyse: MAR - news - people ) said Thursday that its timeshare sales have dried up amid the tight credit market and cutbacks in business and consumer spending.

Indeed, and the stock market's nervous activity in the last week certainly will not assist this.

Marriot has problems of its own:

http://www.etravelblackboardasia.com/article.asp?id=56113&nav=109

"Marriot Profit Plummets in Uncertain Times"
Marriott adds that its profits in 2009 will be difficult to predict in this current economic instability.


Don't forget that title transfers through companies like Timeshare Relief remain an excellent method of escape for individuals who simply cannot break free. With the economy crumbling around us, it will become even more difficult to make monthly maintenance fees on an unused timeshare, and many may find their property unsellable at any price. Timeshare Relief is here to assist these individuals who may be burdened by their timeshare.

Timeshare Presentations Still A Source of Humor

A highly relevant news item about Las Vegas was published by Reuters yesterday. Heading off the article:

Sue Garrett, in Las Vegas for a birthday party earlier this month, went to what she considers extraordinary lengths to hold down the cost of her trip.

"We decided to sit through one of those blasted timeshare presentations to get a free hotel room," said Garrett, who lives in Los Angeles. She turned down the timeshare but earned herself and her husband a stay on the Las Vegas Strip for her trouble.

If only others had the same will power! Nevertheless, the article details how Las Vegas is finally starting to feel the burn, as it were, of the recent economy downturn, and the development makes sense. As we've covered extensively in other blog articles, folks have less money to spend on gas and airfare to get them to vacation spots, and less money to spend once they arrive. To pick up the slack, many non-timeshare resorts are offering discounts and vouchers just to attract more travelers. For Las Vegas hotels, the emphasis is on gambling, and in order to keep the necessary cash flow pumping most hotels need their slot machines and card tables full of consumers.

The same is true of timeshares, but -- in the case of fractional ownership timeshares -- the individual is already paying for, and owns, a resort that they cannot use. It's a bit like being a business owner in a tough economy -- you live and die with the ebb and tide of money.

That's part of why Timeshare Relief exists...to give some hope to those investors who bought more than they bargained for. And by the way...we don't recommend Sue's method for a budget vacation!

San Francisco Timeshare Examiner

If you live in San Francisco and own a timeshare, or are thinking of buying one, you might be interested in a new column on timeshares by Mark Silverman. In the very first entry, Mark invites readers to write in with their timeshare-related questions and grievances.

He also makes this highly astute point about timeshare resales:

One of the most frequent inquiries is how to sell your timeshare. A couple of ways to address that – first, let’s look at the reasons you made the purchase in the first place. If your expectations aren’t being met, it could be you were over promised at the sales presentation. Or perhaps you have an unreasonably high expectation for what the program can do for you. Many frustrated owners simply are not working the system to the best advantage.

If you are committed to selling, we will focus on the best methods to do that. And minimizing the expense and inconvenience involved. As a general rule, you will not be happy with what you get for your timeshare – remember, it’s not what you get out of the sale – it’s what you get out of.

We couldn't have put it better ourselves, and many individuals turn to Timeshare Relief for precisely that reason -- it's not what you get out of the sale but what you get out of.

Hawaii = Safe Timeshare Harbor?

According to kauaiworld.com, timeshare sales have remained strong despite the flagging economy and its effects on the hospitality sector.

In their words:


Timeshare exceeded hotel occupancy by nearly 20 percent statewide, according to an American Resort Development Association’s Hawai‘i Chapter report last week. The association predicts Hawai‘i timeshare will continue to maintain its high occupancy figures throughout third quarter 2008, evidenced by the confirmed bookings through the month of September reported by Hawai‘i timeshare operators. Timeshare represents about 10 percent of the state’s total accommodations inventory, but is seen in a greater concentration on Kaua‘i.

“These figures demonstrate once again that even during downturns in tourism, timeshare continues to stand out as a reliable source of revenue for Hawai‘i’s economy and provide jobs for Hawai‘i’s people,” Mitch Imanaka, ARDA Hawai‘i chair, said.


There are a few issues with this however -- Hawaii is something of an anomaly compared to the contiguous US, being primarily a tourist economy. Timeshares in Hawaii are also more likely to retain their value than others in the contiguous 48, although the fact that Hawaii can only be reached by expensive airfare is likely to have some negative effect. In fact, the jury is still out on just exactly how the economy is changing the timeshare market. The numbers in Q1 of 2009 may tell an entirely different story.

Read the article.

European Timeshare Consumers Get a Hotline

That's right -- recent events in the UK timeshare industry have led to the emergence of a new consumer resource with an informative hotline. The OTE has joined forces with the TATOC (Timeshare Association of Timeshare Owners Committees) in an effort to crack down on scams and to promote consumer education and intelligence:

The Timeshare Consumers Advice Line (http://www.timeshareconsumeradvice.uki.net) has launched an advice line and web site for people buying or reselling timeshare properties

...as a member of the OTE, Timeshare Computer Link Ltd has setup an advice service beyond its normal timeshare resale activities. timeshareconsumeradvice.uki.net provides information on the best ways to buy or sell a timeshare property, along with, when ever possible, advice on getting the most out of timeshare holiday ownership.

More information can be found here www.timeshareconsumeradvice.uki.net alternatively you can call the advice helpline on 01926 84 42 42.

From PRWeb: http://www.prweb.com/releases/timeshareconsumeradvice/tca/prweb1231294.htm

Contradictions Abound: Wyndham Reports Slump

The timeshare industry has seemingly carved an all-but-unique bubble in the recent real estate downturn, floating unscathed to everyone's bewilderment. However, it was bound to slow at some point, and Wyndham Worldwide has just released what is likely the start of an industry wide trend.

We must bear in mind that Wyndham also franchises hotels, and their earnings are not itemized in the following reports. However, on the whole it is a safe assumption that US families are finding vacation time less and less crucial -- probably due to rising gas, food, and overall cost of living prices.

AP also reported that Starwood Hotels have seen a 28 percent decline in timeshare revenue during the second quarter of 2008. AP analysts "have expressed concern about timeshare sales, particularly after Starwood's second-quarter declines."

STOCK PERFORMANCE: Wyndham shares lost about 13 percent in the quarter, closing at $17.91 on June 30. During the past 52 weeks, the stock has fallen from a high of $36 last August to a low of $14.62 in mid-July.

http://money.cnn.com/news/newsfeeds/articles/apwire/8ff43b93985ca009455d544312a85fe7.htm

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