Interval International Adapts To Changing Timeshare Travel Trends. From the Miami Herald
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Timeshare exchange firms offer shorter breaks
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Timeshare exchange firm Interval International has taken a proactive approach in adapting to new travel trends, enabling vacationers to take shorter breaks and stay closer to home
Timeshare exchange relies on people being able to travel. So someone who owns a property near Disney World in Orlando, say, could swap it for a week in Dubai -- or numerous other popular destinations.
The concept of trading one locale for another is the core business model of Miami-based Interval International, the operating arm of Interval Leisure Group. But a tough economy has affected the way timeshare owners want to spend their vacations, challenging the company to come up with new ways to conduct trades. NEW TRAVEL TRENDS
``In this economy, you're seeing more people wanting to drive to their exchange, with less use of airlines,'' said Jon Fredricks of Welk Resorts based in California. ``Vegas is not in favor as it once was. I think Interval has had to adjust to those changes alone.''
Trends show vacationers want the option of cruise lines and other themed travel, and shorter vacation breaks that don't require booking a year in advance. Flex systems adopted by many resort developers have also impacted exchange practices.
Last May Interval debuted their ShortStay Exchange program where gold members can deposit a week of their timeshare, or points, for one or more vacations lasting two to six days. Trading is done online at IntervalWorld.com.
So far the program ``is tracking nicely,'' said Interval CEO Craig Nash. ``We're always looking at product development.'' BROAD NETWORK
With a network of 2,500 resorts in more than 75 countries, Interval members can pursue locations in Europe, Asia, the Middle East, the Caribbean, Latin America and the United States.
The company opened in 1976 with three employees, following the lead of New Jersey-based Resort Condominiums International, which is credited with devising the concept of vacation exchange when they came on the scene in 1974.
Today Interval has three local offices: member services in Kendall; distribution and supply is out of Miami; and corporate offices are located in South Miami. Employees in Miami-Dade County total 1,057. It became a publicly traded company
in August 2008.
Members typically pay an annual $89 fee to join if their membership wasn't part
of their original timeshare purchase. In addition, each domestic exchange made on-line costs $139, or $149 if performed through the company's member services branch. International trades are $154 and $164 respectively.
In recent years websites like Timeshare Users Group (TUG2.com) help timeshare owners bypass Interval by offering a free listing of exchanges, for sale ads and a forum for critiques and feedback. A subscription costs $15 a year.
Still, exchange clubs offer perks, said Lisa Ann Shreier, director of website Timeshare Insights and author of Timeshare Vacations for Dummies.
``They do facilitate the trading process,'' she said. ``It makes it easier if 2,000 people are depositing their weeks into a pool.'' FULL-SERVICE AGENCY
Travel discounts and other benefits offered by the company also add value. And after the timeshare trade is obtained, Interval's full-service travel agency will book flights, cruises or a rental car independent of the timeshare. Rates are kept competitive.
Interval built its reputation by partnering with such recognizable names as Marriott, Accor, Hyatt vacation clubs and Starwood Vacation Ownership. Independent resort developers include Diamond Resorts International, The Villa Group and Westgate Resorts. In late December, Welk Resorts Cabo Sirena del Mar, near Cabo San Lucas in Mexico, joined Interval's network.
``Interval in my opinion does a better job of evaluating quality resorts more consistently than its competition, and as a result it's benefited our exchangers,'' Fredricks said. ``If they're calling it a premier resort, you have an expectation that the quality will be high.''
Timeshares are touted as homes away from home. Condos with washers and dryers, full kitchens and two bedrooms are a major draw for family travelers, according to ARDA, the American Resort Development Association.
An average two-bedroom timeshare purchased for a week runs about $20,152 and is deeded for life. In 2008, 1,629 timeshare resorts existed in the United States.
The recent downtown hit the industry sharply with rising foreclosures and owners dumping properties for a fraction of what they paid. Resort developers have cut jobs and halted new construction.
So how easy is it to swap that condo outside Disney for a resort in Dubai? According to Shreier, it depends on the buying power of your timeshare. And a Disney location would carry clout.
``You have to understand how the exchange game is played,'' she said. ``If you have a five-star resort in Sanibel, you would have significantly more trading power than a person who bought a studio in Alabama in February.''
In recent years big name hotels have helped give creditability to the timeshare industry which had a largely negative image during the 1970s and early '80s when high-pressure sales and other questionable tactics prevailed. HELPFUL REGULATION
``What we saw in the early days was an unregulated industry where certain practices were out of control,'' said Nash, also an attorney who helped craft and lobby for timeshare legislation in the 1980s.
Complaints do turn up on various website forums on both Interval and RCI, citing salespeople who try to renew memberships months before they're due, exchanges that didn't work out and unresponsiveness to complaints.
Nash said the volume of exchanges being conducted makes such issues unavoidable. ``We deal with complaints in an efficient way. We have a great reputation. We do everything we can to satisfy our members.''
According to a company study performed in 2006, Interval's timeshare owners are about age 50, married with an average household income of $139,800.
Despite tanking tourism and record timeshare foreclosures, Nash maintains that timeshare use has stayed strong thanks to the prepaid nature of the industry.
``Yes you've got issues with new purchases, yes there are defaults, but even in this very difficult time, the people who bought the product are using the product.''
Timeshare Exchange Changes With Economy! 
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