TIMESHARE WITHOUT PRESSURE

A TIMESHARE company is exposing the tricks used by some firms to con holidaymakers into buying against their better judgment and paying over the odds for apartments.

The Caribbean company has declared war on high-pressure cowboys in a bid to polish up the industry's tarnished image.

Antigua Village Resort Sharing is publishing a hard-hitting guide warning holidaymakers to be wary of sales patter which is often hard to resist.

The guide, titled "Timeshare Tricks Exposed" explains the scams often used in timeshare pitches, known as "tours". It details what customers can expect for their money if they buy from a respectable company.

And it tells customers how to defend themselves when the timeshare bandits turn on the pressure.

Timeshare began in the 1970s. Five million families now own timeshare apartments in 120 countries.

It is forecast to continue to grow twice as fast as overall tourism for the next decade. Many of the world's major hotel groups have now been in the business for several years alongside independent resorts.

But while many people have found it is a cheap and convenient way to pay for an annual holiday, many others have fallen foul of unscrupulous salesmen.

Antigua Village Marketing Manager says: "There's no doubt about it. Timeshare has a bad name and for good reason."

Competition in some areas ensures that many of the operators in the business are under immense pressure to sell. Typically, they will spend up to fifty per cent of their income on sales costs, including advertising and incentives to get people to take tours.

They have to recoup this money and that's why they must keep making sales. But the pressure on them forces them in turn to pressurise their customers and this is what has damaged the image of the industry.

There are many legitimate companies who are offering good value apartments in good resorts and it is possible to tell the genuine operators from the cowboys with a few simple checks.

Antigua Village Resort Sharing offers both timeshare and complete condominium apartments and everything from the sales presentation to the contract negotiations is done at a leisurely pace, giving time for full interaction with clients and providing written back-up to what is said.

"There is a big demand for timeshare in Antigua because the weather is good year-round. At the same time the strict laws limit competition so we do not need to use high pressure sales techniques or spend half our income on advertising, enabling us to keep prices down."

But he warns that some cowboys, especially those operating in Spain, are getting around new consumer protection laws by calling themselves holiday clubs and other names or selling short-term contracts not subject to the law.

He says: "Customers should check the sales contract to make sure it gives them protection under timeshare legislation."

Timeshare Tricks Exposed can be viewed on the internet at www.antiguavillage.co.uk

(Excerpt from Which? Magazine, May 2005:

Which? says: Most holiday clubs are a waste of money. Even if you are lucky enough to get some of the holidays promised, you could probably have booked them cheaper from traditional brochures. We've called on the European Parliament to extend the Timeshare Directive to cover holiday clubs and we will continue to campaign for this. Until this happens, if you are offered a scratchcard on your next holiday, say no and walk away. Buy a lottery ticket instead - you've got a greater chance of hitting the jackpot.)

TIMESHARE TRICKS EXPOSED

The following article is taken from the Antigua Village Resort Sharing website. All copying rights are reserved by Antigua Village Resort Sharing Ltd.

Millions of families have found that timeshare is a cheap and convenient way to arrange their family holiday and it is forecast to continue to grow at twice the rate of overall tourism for the next ten years.

But some unscrupulous firms are cashing in on the success of timeshare and pressurising customers into signing up for deals before they realise exactly what they are getting.

However, with the help of this guide the cowboys should be easy to identify and deal with.

And the most important thing to remember is: Never sign under pressure.

If you told that "you simply must sign immediately or you will miss a great opportunity" then one thing's for sure: you're being had.

DEFEND YOURSELF ON THE TIMESHARE TOUR

The Gift

Seemingly valuable gifts are used to persuade couples to take a timeshare 'tour' (sales pitch). The gifts are offered whether you buy or not but, particularly in Britain and Spain, are often worthless, so be wary and always read the small print of any offer.

You may, for example, be offered free holiday accommodation in Florida but find that it is conditional upon booking your flights through the timeshare sales company or a designated agent. The flights will probably cost more than a regular all-in package and the free accommodation will be in another timeshare resort where you will be treated to yet another high-pressure sales pitch.

Alternatively, you may be offered free flights on condition that you book the accommodation through the sales company but the result will be the same, so many of these companies are actually making a profit from their 'gifts'.

Another favourite is the 'cert' (certificate), again for free accommodation but this time of your choice from a list of designated areas or resorts.

This may well be surplus accommodation at unpopular times of the year and often involves payment of 'booking' or other fees.

There are many other gifts that cost the company nothing, like free stays in hotels, paying only for your meals, an offer which many hotels make anyway.

To qualify for a gift, many dodgy firms will insist couples both attend a tour so they are more likely to sign up on the spot.

ANSWER: Either ignore such offers or check the small print in advance. By all means accept those gifts that offer a definite perceived value, such as tickets to theme parks or free flights without strings (although you would probably get those only in America).

Bending the truth

The sales pitch will be a carefully structured dialogue designed to exaggerate the most attractive elements of the package whilst avoiding or playing down any negative issues.

An example of exaggeration might be boosting the 'exchangeability' of the weeks the salesperson is trying to sell you. If the resort has sold out of top season (red) time the salesperson will try to sell you white (off-season) or blue (low season) instead, by telling you that these weeks are just as popular and exchangeable to other countries and resorts by arrangement with an exchange company.

ANSWER: to avoid the worst excesses of exaggeration seize on the first important claim that the salesperson makes and ask if that and other statements will be put in writing, either in the contract, the resort's by-laws or in a separate letter from the company. Alternatively, ask if the exchange company will confirm the salesperson's claims (they won't).

Brainwashing

The pitch will be designed to get the customer to gradually commit to the purchase without even realising they are doing so.

Many high-pressure sales techniques rely on getting a customer to commit to a product and then working them into a situation where it would appear inconsistent not to purchase.

The timeshare pitch will be designed to overcome all common objections and elicit positive responses by various means such as producing attractive pictures of the resort or impressive charts and using manipulative questions.

The salesperson will ask loaded questions such as "if you were about to buy a house and I stepped in and offered to buy it instead and then rent it to you, what would that make you?"

The encouraged response would be, somewhat humorously, along the lines of "Mr. and Mrs. Foolish" and the salesperson will be quick to draw the analogy between renting your house and renting your holidays instead of buying them through timesharing.

No price list will be produced and the issue of cost will be absolutely avoided until the last phase of the pitch.

If the subject of price is raised by the prospective buyers discussion of it will be postponed until later by the salesperson.

When the last phase approaches the salesperson will get you to confirm that you like everything you have heard and then try to get you to agree to buy, subject only to the price being right.

This is not as difficult as it sounds if you have already agreed that you like it and you might well see the issue of price as being an easy escape route. All you need do is say that it is too expensive, surely?

The turnover - at this point or later the salesperson may find an excuse to turn the prospects over to a 'manager' (often just a fellow salesperson) for the 'closing' stage and this can happen several times, each applying more pressure until the prospects sign in order to put an end to it.

This is similar to the police or secret service technique where interrogators are changed and take you over the same ground time and time again until you are worn down and eventually give up.

The price - whether or not the 'turnover' system is being applied the next stage will be to give you a price.

This will invariably be much higher than you expected and of course you will say so; the salesperson will then sympathise with you for not being able, or willing, to afford it and in doing so (especially in the relaxed atmosphere induced by your feeling of being off the hook) will attempt to establish a price which you think it is worth and could afford.

The close - the salesperson's only problem now is to find an excuse to reduce the price to a more sensible lower level. There are various methods of doing so:

The 'repo' ploy -the salesperson has a 'flash of inspiration' and remembers that the company had a repossessed week come back on to inventory today and management released it for sale an hour ago. It is so cheap (actually a regular inventory week at the normal bottom-line price) that "if you don't buy it now it will certainly be sold to one of the other couples who are touring today and you will have missed a great opportunity."

End of the block- the salesperson tells you that they have some weeks left in a block that is nearly sold out and they must be sold before another block can be opened up, so they are available at a hugely discounted price.

ANSWER: Say that you are not prepared to commit yourself to anything until you have all the facts, including the price, and do not admit to a price level at which you could afford it.

When you have been given a price, or a series of ever-decreasing prices, keep on insisting that you cannot afford it until you are fairly sure that the lowest possible price has been reached.

At that point tell the salesperson that you are going away to think about it and ask if that really is the best price they can do.

This is when you will be introduced to the final high-pressure pitch, sometimes called 'Charter Membership.'

Charter membership - this is simply a ruse to get you to sign on the day instead of going away to think about it. It is usually a package of so-called benefits that are actually part of every normal deal, such as payment of the initiation fee and first years' membership of an exchange company, free internal exchanges (swapping your time around in the resort), discounted rentals for extra days or family and friends, use of the facilities outside your normal time and so on.

You will be told that if you come back tomorrow and buy you will be sold the week(s) you want but you won't get Charter Membership and all it's benefits, implying that you will not be able to exchange your time and that if you ever decide to sell you will find it more difficult.

ANSWER: Completely ignore this. Do you really believe that a commission-only salesperson is going to risk losing a sale tomorrow by refusing to give you benefits that are normally part of the deal anyway?

Even if you are genuinely interested do go away and think about it. When you go back say that you have had a better offer from another resort, one which you don't like quite as much, but the offer is very tempting, and ask if they can do any better on the price.

This may take some nerve on your part, especially if you haven't been to any other resorts, but it will ensure that you get the best possible price.

You will, of course, be asked which other resort you have been to; reply that you would rather not say, or disclose details of the offer, since it was made in confidence.

If you are not genuinely interested (only there for the gift) or have decided against buying for any reason, the most effective way out is to insist that you cannot afford either the downpayment (deposit) or the monthly repayments.

Make any excuse you like, perhaps that you are waiting to find out if you are being made redundant or are filing for bankruptcy. If you attempt to give a truthful, logical reason you will simply open up another lengthy discussion.

One reason that this coercive selling is so often successful, despite statutory cooling-off periods, is that many people will not admit to themselves or anyone else that they have made anything other than an independent and sensible decision; this is reinforced by their continuing belief that they have negotiated themselves a bargain unavailable to others. In other words, pride and greed.

THE LAW

Recent new laws in Europe, finally adopted by Spain, are designed to give a measure of protection to outsiders buying property of any kind but they will not prevent high-pressure selling and are already being circumvented by resorts calling themselves Holiday Clubs and other names. This needs individual checking, since there are many legitimate businesses that use alternative terms and titles such as Vacation Ownership and Holiday Ownership.

Some avoid new laws by offering deals, not subject to the law, for less than three years.

THE CONTRACT

What matters is what the sales contract says and consequently whether or not you are protected by the law.

The contract should state that it is between the resort company and you. If the name of the contracting company is different to the resort ask why. It may be a holding or associate company, perhaps in another country where you would have difficulty in pursuing your rights.

The contract should indicate the origin of the sales company's licence and the relevant legislation, e.g. "Antigua Village Resort Sharing has been granted a licence by the government of Antigua and Barbuda under the Timeshare Licensing and Control Act of 1983."

It should also state exactly what you are getting for your money and for how long. Precise details of the cost and any monthly or periodic payments, interest rates etc. should be supplied, together with your right of occupancy and use.

If you are buying over time rather than in full straight away there may be a separate contract with a finance company.

The amount of the yearly maintenance fee should be stated with the date it is due and an undertaking that such fees reflect only the actual cost of running your apartment and the resort.

Your right to cancel without loss of money should be clearly defined together with the period of time within which you may do so.

Your right to exchange for other resorts should be included and, of course, your obligation to pay as agreed, together with details of what happens if you default.

Details of the law and your rights should be set out in plain language in the by-laws or covenants of the resort and you should be given a copy of these, which should form part of the contract. Read these and the contract carefully and question anything the salesperson has said about your benefits which does not appear there.

BUY WITH JUDGEMENT, NOT LUCK

Antigua Village Resort Sharing Ltd and its staff do not believe that high-pressure selling best serves the cause of timesharing and do not practice it.

The company has put together the following information which is designed to help you decide if a timeshare apartment would suit your needs and to help you choose the right place in the right resort.

What you buy when you purchase timeshare is ownership of a holiday apartment for a specific number of weeks, from one upwards, usually every year, saving you the capital cost of buying a whole apartment, furnishing it, running it and arranging for rentals when you are not there yourself.

These can be fixed or floating weeks or sometimes 'points' which are cashed in for different sizes of apartment and weeks within a group of resorts.

The main reason for buying is to save money on holidays and the cost is, of course, fixed at the time of purchase, so as time goes by the savings grow larger in comparison with ever-increasing hotel rates.

The only other essential expense is a yearly maintenance fee to cover the running costs of the apartment and the resort, replacement furniture, maid service and so on.

Another advantage is that almost all timeshare apartments are self-catering, saving large sums on food and drinks, especially for families.

In Antigua, we sell fixed weeks, registered with the government to give buyers the protection of the Antigua and Barbuda Timeshare Act. These can be exchanged free of charge for alternative weeks within the resort.

Timeshare began in the 1970s, is now owned in 120 countries by over five million families and is forecast to continue to grow twice as fast as overall tourism for the next decade. Many of the world's major hotel groups have now been in the business for several years alongside the independent resorts.

Almost without exception timeshare resorts are affiliated to an exchange company. The biggest, with which Antigua Village is contracted, is Resorts Condominium International (RCI), which has almost three million families as members and arranges 2.2million exchanges a year among more than 3,700 resorts in 100 countries, giving families the opportunity to holiday at resorts that would previously have been out of their reach.

WHAT TO LOOK FOR

The key to buying the right timeshare apartment is to find the resorts which are most in demand.

This gives you the best possible 'currency' if you wish to exchange your week for a week in another resort or another country.

RED, WHITE AND BLUE TIME

The exchange companies allocate a colour code to each resort, linked to the dates of the resort's seasons. RED time is the top season (midsummer in a British seaside resort, midwinter in a ski resort) and can be exchanged for anything.

WHITE is the 'shoulder' season each side of red time and can be exchanged only for white or blue.

BLUE is the low season, exchangeable only for blue. It is therefore important to purchase red time, since you will be severely restricting your choice of destinations otherwise.

As an example of this there are three areas of the world (the Caribbean, Hawaii and Orlando, Florida) where, because of year-round good weather and high demand, all resorts have only red time.

In these all-red-time places, there are still seasonal variations in price. The Caribbean high season is in the winter, when Americans traditionally take their vacation, and dates back to before the onset of cheap flights from the UK. In Antigua Village there are still some summer weeks available from $3,900 U.S., for 25 years' usage, all red time. These can be financed over one, two or three years.

Exchanges are not limited to the weeks you own or even the same year but can be taken at any time within a four-year window and weeks can be saved up to use at one time.

To level the field there is a priority system designed to give you like-for-like (or better). The first priority is the demand in your home resort at the time you own.

The second is the demand in the region in which the resort is located. If you are buying in an area of obvious high demand this is not a problem but if it is less evident do not rely on the word of the salesperson - ask for some telephone numbers of existing owners and check with them.

Another thing which will help you jump the queue is to give the exchange company as much notice as possible, both when giving them your weeks for exchange and booking your own destination.

When you buy you are normally offered a years' free membership of the exchange organisation, giving you access to all their services, not only exchanges but discounted packages, cruises and car rentals as well as a top quality travel magazine.

Exchanging a week through RCI can be arranged for any time, not just the weeks you own.

At the end of your free year you are under no obligation to continue membership if you do not wish to; many of our owners in Antigua have dropped their membership and simply come back to us every year.

Antigua Village Resort Sharing Ltd., sells timeshare apartments and whole condominiums. Check out the web site on www.antiguavillage.co.uk or call us on 023-8057-8849.

© Antigua Village Resort Sharing Ltd December 2001

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