If you're among the senior travelers heading out soon for a warm-weather vacation in a popular destination, you're setting yourself up for a possible timeshare pitch. They're often disguised as opportunities to get great discounts on some activity or another, but the real purpose is to expose you to a timeshare hard sell for a few hours or even all day.

Make no mistake: These pitch-people are good. Although the incentives they dangle in front of you will look attractive, my suggestion is "just say no." The timeshare idea is a good fit for lots of seniors, but you should buy rationally, not as the result of "buy it right now" sales pressure. Here's a brief recap on the basic timeshare idea, plus a few of the red flags.

The deal
A typical timeshare contract lets you occupy a vacation property during a specified interval every year. Intervals are usually sold in increments of one-week or in multiples of a single week, often Saturday to Saturday.

The property
Most timeshares are units in a condo complex, although some hotel chains are selling some rooms as timeshares. The typical condo has more space than a conventional hotel room, plus kitchen and laundry facilities. Most condos are in popular vacation areas, such as Florida, Hawaii, the Colorado mountains, Mexico, and the Caribbean.

Exchange programs
When you buy a timeshare, you usually become part of a program that allows you to "deposit" your interval into a "space bank," and exchange it for an interval in some other participating unit, just about anywhere.

Buying in
Timeshares entail several payments: You start by paying a one-time buy-in price for your interval; then you'll have yearly maintenance fees and other charges. The buy-in price on a new low-end timeshare can be as low as $5,000; at the other end, you can pay more than $300,000 for a program that features prime villas in top-end beach or golf course communities, or classy apartments in London or Paris. Some programs give you an actual property deed that is transferable; others are just a license to use the property that may expire.

Pitfalls
Timeshares can be great if you accept the terms and conditions—a good friend owns at least a half-dozen intervals and loves all of them. But buy warily:

Don't view a timeshare as an investment. Unlike a single-owner resort property, the value of a timeshare interval almost always decreases. As with a new car, you lose some 40 to 50 percent of the sticker price almost immediately. The only timeshare deals that guarantee a resale value, up to 80 percent, are a few extremely high-end operations that cost hundreds of thousands of dollars.
Examine exchange claims carefully. One of the most frequent complaints from timeshare owners is that they can't ever find attractive intervals elsewhere.

You may face bait and switch or upgrade pitches. If you complain you can't find good exchanges, the promoter may tell you that you'll do much better if you upgrade to a more expensive base interval.
Also check on whether the developer has carte blanche to hike management, maintenance, and other fees. You could be in for endless increases in your yearly payments, with little or no control over them.

Rational buying
Given these realities, the best way for most people to get into a timeshare is to buy a resale from an owner who wants out of a timeshare contract. A resale can cut your initial cost by 50 percent or more. But check the contract and the developer's program carefully: Developers don't like you to buy from another owner, and they increasingly try to limit what second-hand buyers can do. If you're interested in a resale, you can find dozens of online brokers and private-seller listings, or check with a real estate agent in an area where you'd like to buy.

Marriott Vacation Club International (MVCI), the recognized worldwide leader in the vacation ownership industry and a division of Marriott International, Inc. (NYSE: MAR) , announced today the opening of its first timeshare resort on St. Thomas - Marriott's Frenchman's Cove.

Creating the atmosphere of a quaint coastal hillside village, the first phase includes 28 two- and three-bedroom villas, a large, beachfront infinity pool, an activities building which offers Marriott's Activity Zone Experience program and a fitness center. Later this summer, the resort will add another 30, two-bedroom villas to the property which is adjacent to the 504-room Frenchman's Reef Marriott Beach Resort.

"The U.S. Virgin Islands are a very popular location, and a perfect complement to our growing portfolio of Caribbean destinations," said Stephen P. Weisz, president of Marriott Vacation Club International. "The unique setting and architectural beauty of this resort will offer memorable vacation experiences for our owners and guests."

Built on 13 waterfront acres overlooking scenic Pacquereau Bay, the resort is reminiscent of an old Trader's village similar to what is seen in the historic town of Charlotte Amalie. Upon build-out, the resort will offer a proposed 220, two- and three-bedroom villas for owners and nightly rental guests. Each villa is designed to reflect the island's diverse European heritage and strong Danish colonial influences. Vacationers can take in the breathtaking views from balconies off each bedroom, as well as other villa features including a fully-equipped kitchen with granite counters and stainless steel appliances, spacious living and dining areas, a washer and dryer, multiple Sony televisions and Sony DVD players. Three-bedroom villas can accommodate up to 10 guests.

Marriott Vacation Club International is the recognized worldwide leader in vacation ownership with 45 resorts and a program highly regarded for its quality and unique flexibility. Now celebrating over 22 years of continued growth, MVCI continues to expand with a diverse portfolio of over 8,500 timeshare resort villas throughout the U.S., Caribbean, Europe and Asia. Today, more than 332,000 vacation owners around the globe own their vacations "the Marriott way," offering flexible usage options.

Holiday makers jetting off to the sun are being warned not to be seduced by offer from bogus holiday club firms.

Trading standards officials will target people setting off from Gatwick Airport today to tell them the dangers of conmen who might approach them while they are away.

Staff from West Sussex County Council and the Office of Fair Trading will speak to passengers travelling to Europe and give them leaflets explaining how to spot a dodgy deal.

advertisementEach year around 400,000 people from the UK are stung for £1 billion on these kinds of scams.

Alison Wheeler, a principal trading standards officer, said: "Holiday clubs are marketed as a flexible alternative to timeshare, promising a lifetime of discounted holidays anywhere in the world.

"But they often promise far more than they deliver. After spending thousands of pounds many consumers find that they have bought little more than access to an internet booking service."

The county council recently persuaded the Office of Fair Trading to clamp down on unscrupulous holiday firms who promise bargain flight deals, then slap on compulsory fuel and airport charges.

Dubai will soon set another innovative trend by pioneering timeshare in the Gulf region, a move that is expected to further strengthen its already booming tourism industry, official sources have disclosed.


Also known as “holiday ownership”, timeshare is a concept that allows individuals or groups to purchase a week or weeks in a vacation property (such as a resort, villa, or condominium) and use it for a specific number of years. Since the overall cost of the property is divided among all the “owners”, higher quality of amenities and upkeep become more affordable for them.

Untapped strategy

While the concept is being practised in the hospitality sector of various countries in Asia-Pacific, Europe and the Americas, it is still a relatively untapped strategy in the Gulf and the Middle East.

Eng. Marwan Ahmed bin Ghalita, Technical Administration Director of the Dubai Land Department (DLD), said that the introduction of timeshare in Dubai has been synchronised with the creation of unique property developments, such as those being constructed in Dubai Festival City and The Palms.

Unique projects

“The demand for timeshare has already been felt. We are currently looking at how we can implement the system in Dubai. Since there are unique projects that will be coming up here, eventually there will also be a need for new services for tourists,” he told Khaleej Times.

He mentioned that with timeshare, tourists can have more options in enjoying their short stay in the emirate.

“A tourist will have the choice to move around and experience the many features of Dubai without costing him much. For instance, even if he cannot afford an apartment in The Palms, he may still be able to at least ‘own a portion of the property’ for a week or a month and even transfer to another property in other locations within Dubai,” he added.

Tripartite panel

In as far as the Dubai Government is concerned, Bin Ghalita said a tripartite committee composed of the DLD, Department of Economic Development (DED), and Department of Tourism and Commerce Marketing (DTCM) has been formed to draft the laws regarding timeshare.

Under their proposal, the DED will handle registration of companies that will operate timeshare properties since it is the agency in charge of issuing trade licences.

The DTCM, meanwhile, will conduct and monitor the grading of properties based on their standards.

Properties’ sale

A problem currently associated with timeshare is the illegal selling and re-selling of properties. Dubai attempts to go one step forward in preventing this concern through the DLD, which will make sure that the building is registered as a timeshare property and does not have any pending problems.

“It should be clear for any tourist or investor that the building is specifically designed as a timeshare property. It should not be mixed with residences or offices,” Bin Ghalita said.

Draft law

Ali Ibrahim, Deputy Director General for Executive Affairs of the DED, confirmed that the committee has already drafted the timeshare laws but it is still yet to be submitted to the Dubai Government.

“We are still working on the laws that will be implemented in relation to this concept. Hopefully within the first half of this year, we will be able to submit our draft to the government for their approval,” he said.

Because the law is still underway, Ibrahim said he cannot at the moment provide details as to the requirements, terms and conditions of timeshare operation in Dubai. He assured the Press, though, that they will properly inform the public once the law has been approved. The DTCM also acknowledged the existence of a committee on timeshare but official sources were not available to comment on the scheme.

Built-in projects

Although the first timeshare properties will be built-in projects within the emerging “new Dubai”, Bin Ghalita did not discount the possibility that existing properties in the old town may be converted into timeshare. “Changing an existing structure into timeshare in the old side of Dubai may be possible but there should be official regulations and laws on this, which the committee is looking into,” he said.

Aside from supporting the emirate’s tourism industry, Bin Ghalita is confident that timeshare will further boost Dubai’s economy. “People will invest heavily on timeshare especially with the attractions of Dubai. I think it will introduce more profit,” he concluded.

Possible legislation changes for timeshare arrangements in Dubai could spark intense growth, according to industry experts.

Interval International managing director David Clifton said the legislation could unleash the Middle East's potential.

"In Dubai, the sector is in waiting for specific time share regulation to be passed any day now and this will have a major impact on the choice of accommodation development by investors in hospitality real estate," he said.

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"Meanwhile, wise developers and investors are already planning to add time share to their hospitality portfolio."

While the potential for timeshare in Dubai is expected to be strong - the city has been earmarked to join Orlando and Las Vegas in America as one of the three international "timeshare super-cities"- demand for timeshare is also forecast to be strong throughout the Middle East.

"The Middle East is perceived by experts in the vacation ownership industry as having incredible future potential," Clifton said.

But any future timeshare developments must be fully understood and managed with respect, he said.

"This is a business model that once understood brings enormous value to the table of everyone involved - the investor, the developer, the operator, and ultimately, the consumer," Clifton said.

Legislation changes and the potential for the region will be some of the topics discussed at this year's Vacation Ownership Investment Conference in Dubai on March 6.

Thomas Cooks have merged with My Travel and the new larger group will operate in the UK, Ireland, Scandinavia. Western Europe and Canada.
The news broke as My Travel announced its first profits since 2001.

Telkonet provides high-speed Internet access to 4,000 Wyndham Vacation Ownership rooms

Telkonet, Inc. (Amex: TKO), the leader in providing in-building broadband access over existing electrical wiring, today announced that it has received a contract to provide high-speed Internet access to all self-managed WorldMark by Wyndham timeshare properties, a total of 50 additional properties, totaling over 4,000 rooms. WorldMark by Wyndham is a subsidiary of Wyndham Vacation Ownership, the world's largest vacation ownership company. The full-scale deployment decision was made after a successful trial of the Telkonet iWire System at six WorldMark properties last year. Telkonet's system proved to be a reliable, hands-off solution, meeting WorldMark's key performance criteria. Telkonet's system can also support future applications that WorldMark may require, such as voice over Internet protocol (VoIP), energy management and video on demand (VoD).
Six WorldMark properties are currently using the Telkonet iWire System to deliver high-speed Internet access, with convenient wired Internet access at any electrical outlet in the rooms, and wireless access at the pool and lobby areas. In addition to supporting broadband Internet access, Telkonet's powerful platform is supporting billing capabilities. The user web-interface provided by Telkonet enables a number of services developed by Goodwell Technologies to maximize the owner experience while traveling.

Over the course of the trial period, WorldMark's management was impressed by the take rate generated by providing high-speed Internet access to its owners, especially since the service offering was not yet proactively marketed to its owners. They were also pleased that users found Telkonet's system to be simple and straightforward to get on-line, without needing any technical support from timeshare management.

Steve Townsend, WorldMark's Director of Resort Services, commented, "We are extremely happy with our choice of Telkonet for the whole system. Our tests-to-date have shown the system to be the most trouble-free, dependable system that I have worked with. We have enjoyed working with the Telkonet team and we are looking forward to the roll-out."

The European Commission was to approve a plan Wednesday for overhauling EU consumer protection rules to address Internet shopping and boost cross-border sales.

The changes address e-commerce, international sales and the travel industry, harmonizing them across the 27-nation bloc to give consumers more rights across borders.

The EU executive office also plans to give more protection for shoppers using mail order, Internet or telesales companies, and to update rules for doorstep selling, according to a summary of the changes seen by The Associated Press.

"A common EU market for services is not yet complete," said Meglena Kuneva, EU consumer protection chief. "Some aspects need to be updated or harmonized."

Before finalizing the new rules, the Commission will hold a three-month debate period involving industry, consumer groups and national authorities, she said. The new rules, replacing guidelines up to 20 years old, will be legally binding on all EU member states.

In the tourism industry, consumer rights must be clarified for timeshare arrangements, in which several joint owners must alternate use of a holiday property. The Commission said that, currently, buyers had little legal recourse when pressured to sign contracts they did not understand, or when not told of a property's faults before buying.

Consumers buying a product or service from a Web site, mail order or telemarketing company can cancel the contract, within seven working days, without reason under current rules. Countries have different rules, however, concerning the return of goods purchased online, for example, about who should pay the postage.

While online sales are growing, they remain largely within borders. Only 6 percent of Internet purchases in the EU are cross-border sales, partly because it is too difficult for shoppers and retailers to acquaint themselves with different rules in each country.

Other guidelines to be revised include rules on guarantees, unfair contracts, price labeling of goods in shops, and package holiday brochures.

Paris based hotelier Accor has formed a new property trust to hold the assets of its soon-to-be-launched Asian holiday timeshare business.

The operation will be based on its Australian prototype, Accor Premiere Vacation Club, which drew gross revenue of more than $100 million last year and has more than 18,000 members, growing at about 6000 a year.

The Asian trust would be a separate entity to the one that owns APVC's Australasian assets, but members would have reciprocal rights, chief operating officer Jim Sabot said.

APVC members are direct unitholders in the trusts.

APVC's first Asian holiday apartments and its first Asian sales centre will be at the Novotel Nusa Dua resort in Bali, and the club plans other apartment purchases in Thailand, Malaysia, French Polynesia, Singapore and India, followed by China after the 2008 Beijing Olympic Games.

Under APVC's constitution, the trusts will dispose of their properties after 80 years and distribute the capital value to members.

APVC spent $60 million buying resort apartments around Australia and New Zealand in the past year.

Late last year Accor moved to full ownership of APVC after buying out Melbourne developer Becton Group's 50 per stake for about $38 million.

With Australia and New Zealand's combined population of fewer than 25 million, Asia offered APVC much bigger growth potential, chief executive Marty Kandel said yesterday.

Australasian APVC members have typically paid about $18,000 to join the club, which buys them access to the equivalent of one resort room for a week. However members are able to take short stays at any APVC resort or to transfer or give away room nights to family or friends.

Many members also upgrade and buy more points to give them more time, higher priority at peak times or better facilities.

There are 17 APVC-owned properties in Australia and New Zealand, 33 Accor hotels and resorts throughout the Asia-Pacific region, and members have access to another 2000 worldwide locations through an exchange agreement with another company.

A number of international hotel chains have started using timeshare to help with yield management, and some of the biggest US-based hotel chains now draw up to 25 per cent of their revenue from timeshare.

The Australian timeshare club was seen as an experiment by Accor's Paris head office and is expected to be rolled out around the world, starting in Asia, with the worldwide operation based on Queensland's Gold Coast.

APVC's property purchases around Australia have included a number of boutique-sized historic guesthouses, such as its most recent acquisition, Mt Lofty House in the Adelaide Hills, which it bought last September for about $5 million.

The property, run as a Grand Mercure, was originally built in the 1800s as the home of the Hardy family and was rebuilt after being burnt down in the 1983 Ash Wednesday bushfires.

The timeshare sector's industry body, the Australian Timeshare and Holiday Ownership Council, says that since the revival of the sector in the past seven years, timeshare has become the fastest growing segment of Australia's tourism industry.

A new consumer facing website that automates the purchase of travel visas has been launched in the UK by a corporate travel services provider.

Thevisacompany.com (http://www.thevisacompany.com) is an offshoot of the TLCS Global Visa Service, a visa management company for business travellers with ten years experience behind it.

The website has been created to allow travellers to submit their details online and then follow the progress of an application through an in-built tracking system.

There are also plans to create a while label version of the product that will be available to existing travel websites.

The creation of a checking system it is hoped will ensure users that submit incorrect details will be notified before the application is sent to an embassy for processing.

Visa Company's chief executive Malcolm Bluemel said: “The launch of The Visa Company is part of our vision of making the visa application process as simple, straightforward and as cost-effective as possible for the consumer.

“At the heart of this vision is our website that delivers accurate and clear visa information from a comprehensive database supported by a proven online booking and tracking tool."

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British Midland acquires British Mediterranean - 5 Feb 2007

(05 February 2007)



The British Midland group, owner of BMI, has taken control of British Mediterranean (BMED), a franchise carrier for rival British Airways.

The deal, involving the purchase of £30 million-worth of new shares in BMED, will see the BA franchise agreement terminated from the end of this summer. BMED has operated under the BA brand since 1997 and all its tickets are sold through BA.

BMI’s chairman Sir Michael Bishop, chief executive Nigel Turner and deputy chief executive Time Bye will join the BMED board.

Turner said there would be no immediate change to the BMED network, but BMI has begun a 30-day review of the business.

BMED operates a fleet of eight Airbus aircraft to 16 destinations, primarily in the Middle East but also in central Asia and Africa.

Turner said: “Bringing BMED into the BMI group creates a business with a turnover in excess of £1 billion and enables BMI to accelerate its strategy of expansion into medium-haul markets.”

BMED chief executive David Richardson will remain at the head of the carrier’s 770 staff.

A memo to Ryanair pilots has threatened them with the sack if they fail to obey safety rules on landing.
It follows reports of three incidents of dangerous approaches to airports by Ryanair jets in a two-year period.

In one case a plane flew low over rooftops near Cork airport in Ireland, causing a cockpit alarm to sound.

The memo, from Ryanair chief executive Michael O'Leary, tells pilots they will be demoted after the first incident, and sacked after a second.

A copy of the memo, dated 25 September 25 2006, has been obtained by The Times. It states that a new disciplinary procedure is being introduced in response to a series of "high-energy approach incidents over the past two years".

It continues: "Any event involving any of our aircraft passing the 500ft landing-gate incorrectly configured or at excessive speed, and which does not perform a go-around, will automatically lead to both crew members being demoted in the case of their first transgression of this policy."

Cockpit warnings

The warning follows three cases of Ryanair jets approaching an airport too fast or at the wrong height and being forced to abort landing.

In the latest incident to emerge, an aircraft approaching Cork airport flew so low that it triggered two warnings in the cockpit and sparked 16 complaints from residents.

All Ryanair staff are under pressure to meet turnaround times of only 25 minutes - the tightest in the industry - and pilots' unions say this can lead to mistakes.

A Ryanair spokeswoman said: "This memo underlines the commitment of Ryanair and its pilots to passenger safety.

"Our safety instruction to all pilots is, if in doubt you must perform a go-around, and we expect all of our pilots to follow this safety guidance at all times."

She said that in the two-year period in which the incidents occurred, Ryanair operated over 500,000 flights.

A British man has died in Mexico after plunging from the 14th floor of a five-star hotel.

The tragedy happened at the Riu in the popular resort of Cancun following what is thought to have been an argument.

Mexican police said the person who died was a 34-year-old British man. A woman, who has not been named, has been questioned in the case.

Antonia Salmeron, a spokeswoman for the attorney general's office in the state of Quintana Roo, where Cancun is located, said: "We don't know precisely what happened. The only thing that hotel employees and guards have said is that the couple had a very forceful argument.

"Shouting was heard in the room and later there was a report that a man had fallen from the 14th floor."

Mrs Salmeron said police were investigating whether a scuffle had occurred in the room.

Brother in law just phoned from the US says that tornado currently hitting Florida is turning homes to matchwood. Extensive damage reported and being shown on television newsreels.