Marriott International says it plans to move ahead with plans to double the size of its Grand Chateau timeshare vacation resort near the Las Vegas Strip. Construction on the project's first two towers is complete, and, despite the rough economy, the chain expects to break ground on a third 37-floor tower for the resort this year, with development of a fourth tower to soon follow.

Hotel operator, Marriott International Inc. slipped into the red during the fourth quarter, reporting a $10 million loss, or 3 cents per share, versus a profit in the 2007 quarter of $236 million, or 62 cents per share.

Occupancy at the company's hotels and resorts world wide dropped 3.7 percent to 65.3 percent in the 2008 quarter vs. the 2007 quarter, while the average nightly room rate plummeted 2.1 percent to $135.59, Marriott said.

The company also recorded $55 million in restructuring charges spent on severance packages, fees to exit facilities and write-offs of discontinued development projects.

Chief Executive J.W. Marriott Jr. summed up challenges facing the company in a statement: "Results in the fourth quarter of 2008 demonstrated the impact of economic disruption to our business.

“Despite these highly challenging times, our priorities are straightforward. First, we are focusing on driving higher market share at the property level and through new room additions.

“Second, we are enhancing our cash flow by reducing investments in new projects. And third, we are reducing costs in all areas of our business to reflect the realities of the marketplace.''

He continued, "While none of these tasks will ever be fully complete, we can see that our approach is working. In 2008, we added 26,000 net hotel rooms to our system and we expect to do the same this year.

“With strong guest satisfaction, we increased our market share at our existing hotels. While worldwide REVPAR declined over 8 percent during the fourth quarter, our actions to reduce costs limited our house profit margin declines to just 210 basis points.

“In our timeshare business, we closed less productive sales offices, substantially reduced overhead and dramatically scaled back development, and we will do more if needed.

“We expect our timeshare business to remain profitable and to produce positive cash flow in 2009. Across our company, we reduced annualized general and administrative spending by about $100 million, making cuts in every department.

“Finally, we reduced our 2009 investment spending estimate by $400 million year-over-year. All in all, despite a weak economic climate, we anticipate reducing our debt by $600 to $700 million this year and maintaining our investment grade credit rating. These are the kinds of steps that will position us to seize new opportunities when they arise."

The Holiday Inn timeshare brand is now available for rental and timeshare ownership in four resort locations in the US.

The company has released the timeshare portfolio of Holiday Inn Club Vacations at Ascutney Mountain, which joins the company’s flagship resorts in Orange Lake, Lake Geneva and Panama City. Travelers are now welcome to rent or own villas in any of the four resorts.

Holiday Inn will also be adding two more resorts to its current US portfolio. By April this year, resorts in Gatlinburg and Myrtle Beach will be open.

“We’re pleased to offer our customers a memorable brand experience at the only ski-in, ski-out snow destination in the Holiday Inn U.S. portfolio,” said Christian Hempell, VP of Holiday Inn Club Vacations, on the newly opened Ascutney Mountain resort. “We’re excited to include Ascutney Mountain as the fourth Holiday Inn Club Vacations property as part of our alliance with Orange Lake, with our fifth and sixth resorts joining the brand in April.”

Late last year, the company announced a partnership with IHG, the world’s largest hotel company, and Orange Lake Resorts, a leading timeshare company. The deal allows IHG to enter the timeshare industry through licensing and marketing agreements without capital investments.

The Ascutney Mountain Resort is the only ski resort of Holiday Inn in its US portfolio. It features a host of amenities, including a fitness center, a spa, an arcade, a convenience store, restaurants, cafes, as well as indoor and outdoor swimming pools.

“This resort at the base of Ascutney Mountain is a year-round destination for every member of the family. It’s been a popular drive-to destination for thousands of our club members living in the New England area,” attested Don Harril, president and CEO of Orange Lake Resorts.

Despite the recession, hotel giant Marriott International Inc. plans to double the size of its big timeshare vacation resort near the Las Vegas Strip.

Ed Kinney of Marriott Vacation Club International based in Orlando, says ground will be broken sometime this year on the third tower at Marriott's Grand Chateau on Harmon Avenue and a fourth tower will be developed after that.
Plans call for the Grand Chateau to have a total of 895 villas about evenly split between four 37-floor towers.

Construction on the first two towers is complete, with some of the towers being rented on a nightly basis.
The units rented nightly are either in Marriott's inventory or belong to vacation club timeshare owners who have arranged for Marriott to rent them out.

Kinney says the Grand Chateau was the vacation club's highest-grossing property in 2008 with $110 million in sales.

According to findings in new research commissioned by travel insurer LV=, cons such as shopkeepers hiking prices when they see tourists coming, timeshare fraudsters and taxis taking the scenic route are rife across European resorts, with a fifth (21%) of British tourists targeted during the last five years.

The research undertaken by YouGov on behalf of LV= reveals that the true scale of holiday cons is vastly underestimated by the local authorities with only 10% of holidaymakers reporting scams to the police.

Holidaymakers interviewed in the research said the average cost to them of being successfully ’scammed’ was £250.

Brits are most likely to fall victim to conmen in Spain, with one in ten of victims targeted in a Spanish resort. Tenerife (7%), Turkey (4%) and Paris (4%) were also singled out by holidaymakers.

The findings show holidaying couples are twice as likely to be targeted by a scammer than other holidaymakers (43%), while independent travellers make up one in five (18%) con victims.

LV= is calling on holidaymakers to help discourage scammers by reporting them to the police, and is offering advice on how to avoid con merchants whilst abroad.

Emma Holyer, spokesperson for travel insurer LV=, commented: "The cold days of winter will spur many of us to start planning our holidays, but with one in ten holidaymakers falling victim to scams abroad in the past two years its clear there is an industry worth billions based on ripping them off. Not only can cons cost money but they can ruin a trip, so we are offering advice on steps to take to avoid ending up out of pocket or on a tour that you don’t want to be"

Jess Prasad, from the Foreign ad Commonwealth Office’s ’Know Before You Go’ campaign, added: "Being prepared before you go abroad will lessen the risk of you being scammed. Read up on your destination as much as possible before you travel at fco.gov.uk/travel. If you are a victim of crime, report it immediately to the local police - and get a police report in case you need to make a travel insurance claim"

Additional travel insurance advice can be found on the LV= website or from fco.gov.uk/travel for detailed advice on travel to every country.

Global hotel markets are expected to continue to feel pressure from contracting economies and reduced leisure and business travel across much of the world in 2009. However, despite declines across most major regions of the world in 2008, operating performance in the global hotel industry remained profitable as hoteliers focused on controlling costs and preserving the bottom line, according to a report released today by Ernst & Young LLP.

"There is little doubt that most markets in the current economic climate are challenging at best and growth will be hard to come by for most operators," said Michael Fishbin, National Director of Hospitality Services, Ernst & Young LLP. "As a result, this year we will see hotel operators continue to focus more of their energies on cost reduction, improving operating efficiencies in their hotels, reaching out to guests via enhanced Internet communication and strengthening their brands through an emphasis on green principles in activities related to both development and operations," he added.

The US 2009 lodging report carries an overview of global, including US, hotel sectors as well as in-depth analysis of the main lodging segments and market reports for 17 major US cities including New York, Los Angeles, Chicago, Miami, Dallas and San Francisco.

The report also features ten main thoughts on trends and issues to watch in the hotel sector in 2009. These are:

Capital. Despite low mortgage delinquency rates, hotel values dropped in 2008 and will continue to drop in 2009 as the economic slowdown takes hold. Meanwhile, cash-rich buyers are waiting to make deals once acquisition pricing is attractive. A recent Ernst & Young LLP survey of US real estate investors revealed that 60% intended to take advantage of fire-sale prices and buy commercial real estate. With $400 billion already raised by private equity firms for distressed debt investment and a first wave of bankruptcy judgments expected this year, the transaction floodgates should open before the year is out.

Costs. If the recession has a silver lining it is that companies are concentrating on improving efficiencies and reducing costs. Hotel companies moving quickly to pare overhead at the corporate and property levels will not only save money but will position their enterprises to be more dominant players for the next cycle.

Business Development. A recent Google(TM) survey suggests that a third of travelers have made accommodation decisions based on reviews found online on sites such as TripAdvisor, Yapta, Travel Muse and Concierge. This is just one good reason hotel operators should step up their brand presence on the internet in 2009.

Development. In recent years, hotels have received growing attention as an instrument of urban redevelopment. We don't expect this to change, but we do expect the mix of uses around these hotels to change. Look for hotel-condo and retail mixed-use developments to make way for hotel developments mixed with office and rental apartments - a mix likely to better suit changing market fundamentals. In {banned word/phrase}, condo hotel units won't be eliminated completely, but are likely to be scaled back in new developments.

Debt. With $19 billion of loans in commercial mortgage-backed securities pools set to mature this year and very few new loans available, hotel borrowers will be proactive in pursuing loan modifications and exploring alternative strategies to recapitalize assets.

Globalization. While no region of the world is immune to financial turmoil, regions such as Asia Pacific, the Middle East and North Africa and Latin America may offer stronger alternatives in the lodging sector during this slow down. Countries in these regions have large and growing economies and population bases with a relative scarcity of hotels. Look for China, India, Vietnam and Brazil to be among the leading future growth markets.

Green. Green hotels are gaining momentum internationally and in the US where 415 hotel projects have achieved or registered for LEED certification with the US Green Building Council. With more governments promoting green building and some poised to penalize large carbon footprints, such as convention and urban hotels, look for more green renovations to take place, especially if a dedicated LEED certification for hotels comes into place in the US as expected later this year.

Values. Look for the Financial Accounting Standards Board's (FASB) Statement No. 157, Fair Value Measurements, to become more important for hotel companies this year as investors look for more clarity amid a downturn in hotel and real estate values.
Alternatives. The timeshare and cruise sectors of the hospitality industry - once thought to be more recession proof - have been hit hard by the economic downturn. Cruise operators have downsized their offerings, cutting some Australian and Mediterranean routes in favor of cheaper and shorter routes from Baltimore and Miami requiring little or no air travel.

Stimulus. Any funneling of additional federal dollars into US infrastructure would have a positive long term impact on the domestic hospitality sector by improving access to major tourist destinations and encouraging domestic travel and other aspects of proposed stimulus programs in the US could also benefit the lodging industry.

Costa Cruises has announced its programme for 2010 sailings that includes two new cruise ships operating from Dubai and a third that will operate in Asia.

The Italian cruise line, which will introduce three new vessels during the coming 12 months, is looking to provide new booking options for families travelling on a budget.

With the operator’s Family Plan, two adults can book any type of cabin for themselves and Costa will offer a reduced rate on an inside cabin for their children.

The incentive is in addition to the company’s policy that allows children under 18 to share their parents’ cabin, paying only taxes imposed by ports - which amount to £100 or less on a week-long Mediterranean cruise.

A single adult with children under 18 is also eligible for discounts and reduced supplement charges.

Costa has also introduced check-in online, allowing passengers to complete their embarkation forms 10 days before sailing. After printing the form, they can take it along with them to the port to reduce waiting time in the queue.

The cruise line is increasing its capacity in 2010 by 16 per cent, with a goal of carrying 1.5 million passengers – and increase from the 1.2 million passengers in 2008.

http://www.asap.co.uk/news/costa-cruises-introduces-family-incentives-for-2010-5634191.html

According to Argentina’s Navy, the passengers and crew stranded on an Antarctic cruise ship that ran aground will soon be evacuated.

The Ocean Nova was carrying 113 people, including 17 from Britain, when it became trapped on the rocks near an Argentine navy base in Antarctica on Tuesday.

Quark Expeditions, the company that organized the cruise, is sending a ship to transfer the 74 passengers on board the Ocean Nova to the southern Argentine city of Ushuaia, according to a spokesman for the navy.

It was also reported that there was no loss of fuel or electricity and there was no risk to anyone on board the trapped ship.

“All aboard continue to be safe and there is still no sign of leakage of any kind,” a spokesman for US-based tour company Quark Expeditions commented.

The tour operator president, Patrick Shaw, told the AP that the ship was pushed onto craggy rocks by high winds.

Quark Expeditions said that passengers on the cruise included 21 from the US, eight from Canada, 18 from the Philippines, seven from Australia, five from Ireland and five from South Africa, along with the UK passengers and others.

It added that the 240-ft vessel should be able to free itself at high tide, but that the strong winds had made that impossible so far.

http://www.asap.co.uk/news/passengers-to-be-evacuated-from-antarctic-cruise-ship-00-5634192.html

Hardly encouraging

News that Diamond Resorts has closed its timeshare sales office should not go unnoticed. It involves Royal Palm and Flamingo Beach Resort, two of the major timeshare properties on the island.

The decision is reason for concern, in the first place because at least 16 sales representatives are now out of their jobs. More in general, however, the move raises questions about the motives and the intentions of the two resorts’ owners.

With no indication of how sales will now be handled, one cannot exclude the possibility that Diamond may be getting ready to somehow pull out, with all possible consequences for the personnel, the timeshare owners and the tourism economy in general. It would not be the first time the resorts in question changed hands, of course, but the upheaval such changes usually bring is something the island and its people could well do without, especially in these already trying times.

The reason given of cost-cutting because of a slowdown of sales due to the current economic crisis would seem to make good business sense, but when the sales of timeshare resorts are stopped one has to wonder what that means for their future. This is all the more the case when considering that these same resorts recently introduced a maintenance fee increase said to be more than 50 per cent that some timeshare owners are reportedly contesting in court.

Hopefully things are not as bad as they may seem and the company is merely restructuring to face the tough times ahead, but still plans to stay and continue investing. Today’s news is not exactly reassuring, however, and if similar situations occur at other resorts, “The Friendly Island” could well be facing a huge problem and an increasingly uncertain future.

The approval of the emergency marketing fund by the Executive Council (see Thursday paper) is in any case welcome, although it may take quite some time to get the necessary promotion going and reap the benefits in terms of visitor numbers. Even if and when they come, however, not many tourists will be buying timeshare under the current circumstances and in that sense Diamond’s decision is understandable. One can only hope it will not be followed by more bad news from the timeshare – and hotel – sector

http://www.thedailyherald.com/news/daily/l234/editl234.html

Every week, we invite competing companies to give us their best deal for a particular journey. Today: an all- inclusive family holiday over the Easter holidays on an Atlantic or Caribbean island, departing from Gatwick on 4 April.

From our search, it is clear that demand is very strong and availability is limited. Prices given here are for the grand total, based on two adults and two children sharing.

Kuoni

Bermuda: £5,916, including flights from Gatwick, transfers and 14 nights in an ocean-view room at the three-star Grotto Bay resort. “There is the protective beach, children’s playground and great bus connections every 15 minutes to anywhere on the island,” says Jemma Purvis of Kuoni. (01306 747 008; kuoni.co.uk)

Thomson Worldwide

Bahamas: £8,499, including flights from Gatwick, transfers and 14 nights at the three-star Paradise Island Harbour Hotel. Thomson Worldwide’s Katie Parsons says: “From snorkelling, dolphin spotting, a kids’ club, not to mention the clear waters and a white sandy beach, the resort offers something for everyone.” (0871 664 0273; thomsonworldwide.com).

Caribtours

Barbados: £6,554, including flights from Gatwick, transfers and 10 nights in a junior suite pool garden room at Turtle Beach hotel. “It combines the typical Barbados beach holiday with extensive facilities, an excellent choice of restaurants and a lively atmosphere,” says Camilla Barrett of Caribtours. (020-7751 0660; caribtours.co.uk)

http://www.independent.co.uk/travel/news-and-advice/travel-challenge-the-best-price-for-an-island-holiday-1627684.html

Eight British Muslims plotted to kill thousands of civilians by blowing up at least seven trans-Atlantic passenger planes in mid-air with homemade liquid bombs disguised as soft drinks, a prosecutor said at their trial Tuesday.

Lawyer Peter Wright said the men planned to smuggle the bomb ingredients aboard jets bound from Britain to North America disguised as "soft-drinks bottles, batteries and other innocuous items" carried in hand luggage.

"They were to be detonated in-flight by suicide bombers," including several of the accused, said Wright as he opened the case against the defendants.

Eight men aged between 22 and 30 deny conspiracy to murder. But Wright said the defendants were close to carrying out their plan when they were arrested in August 2006.

The arrests led to huge travel chaos, as hundreds of flights were grounded and thousands of people had their trips disrupted. They also triggered massive changes to airport security — including restrictions on carrying liquids on planes — that persist to this day.

Wright said the plot would have caused "a civilian death toll from terrorism on an almost unprecedented scale."

He said alleged ringleaders Abdulla Ahmed Ali and Assad Sarwar, both 28, "shared a common interest ... that involved inflicting heavy casualties upon an unwitting civilian population, all in the name of Islam."

The defendants, he said, were "men with the cold-eyed certainty of the fanatic." The blasts were intended as "a violent and deadly statement of intent that would have a truly global impact."

Wright said that the plot was organized in Britain but was being directed from Pakistan.
Wright said the plotters planned to inject a hydrogen peroxide-based explosive mixture into plastic bottles with hypodermic syringes to make deadly liquid bombs.

He said notes indicated the bombers planned to deflect suspicion by carrying items such as pornographic magazines and condoms in their luggage.

The prosecutor said a computer memory stick found in Ali's possession contained flight timetables, with seven flights highlighted, operated by American Airlines, United Airlines and Air Canada from London's Heathrow airport to San Francisco, Washington, Chicago, New York, Montreal and Toronto.

All were scheduled to take off from Heathrow's Terminal 3 within three hours of one another and would be in mid-flight at the same time.

Wright said the plot may have involved attacks on even more flights. He said plotters were overheard talking about different airport terminals and up to 18 suicide bombers.

Wright said police had found videos of six of the defendants that appeared to have been intended to be played after their deaths. On one, defendant Umar Islam said he was prepared to "die and kill" for Allah, and claimed the attack was "revenge for the actions of the U.S.A. in the Muslim lands."

The prosecutor said the plot involved "acts of terrorism on an international scale, directed from abroad using homegrown terrorists — young, radicalized Muslims prepared to lose their lives in a global act of jihad."

A court order restricts reporting of some details of the case, which is expected to last 10 months.

http://www.google.com/hostednews/ap/article/ALeqM5hYZRPHYCcMuSmUTIDLtyVk4HTGvQD96DH98O1

Luxury hotels have taken a beating this year in the wake of Wall Street's bailout by the U.S. government. Financial and other firms are canceling meetings and corporate conferences so as not to appear to be spending excessively. Hotel executives are not optimistic for the luxury segment in 2009 either.

From Marriott International's FQ408 conference call: (MAR)

Our timeshare business was particularly hard hit by the economic climate. Contract sales of our core timeshare product declined 37% during the quarter while sales of our fractional and residential products were negative reflecting $150 million of sales reversals related to anticipated contract cancellations at three luxury projects.

We have the least optimism around [the luxury] product class. That product class is more like whole residential. As a consequence it is more likely to be sticky in a weakened demand environment and will take some time to come back. Therefore of all the possibilities in the future we think the likelihood of starting new luxury projects any time soon is very, very slim.

We don’t expect that we will start many core [residential] timeshare projects either in the near term but we are hopeful we will see demand come back to the point where returns have improved significantly and that business can go forward. That certainly is much more possible to happen sooner than the luxury fractional does.

Having said that in January where we have the Ritz-Carlton product we were pleasantly surprised by some of the fractional volume we saw and I think it gives us some optimism for the year. Partly that is a function of these resorts reaching opening... They are easier to sell obviously when they are right there before you.

WSJ notes that government seems to be taking up some of the slack for luxury travel. That may not last too long in the court of public opinion:

Corporate customers from relatively higher rate paying financial services firms are being supplanted by lower rated corporate and government business.

On construction:

We have cancelled pre-development projects and don’t expect to start any new projects in 2009.

As we look ahead beyond 2009 U.S. hotel supply growth is likely to substantially trail demand recovery. This is the reverse of the situation we will encounter this year but it is clearer than ever that the brakes on new construction are being and will be applied more dramatically than ever before. This is not likely to change for some time.

http://seekingalpha.com/article/120815-marriott-on-luxury-and-timesharing-markets

The Ritz-Carlton Club and Residences at Kapalua Bay, Hawaii, will be able to continue its newest project because they will receive a bridge loan from Maui Land and its development partner Marriot International.

While the bridge loan will reflect an increase in costs in the long run, it will prevent delays in construction and completion. According to Maui Land president and CEO, there will be no delays in construction and the Ritz Carlton Hawaii will be open this summer.

Late last year, Carlton’s lender Lehman Brothers filed for bankruptcy. During the time, the Hawaii timeshare was 83 percent complete. This is becoming a common trend for most timeshare companies, making them search for new and alternative financing sources. Fortunately for the Ritz-Carlton, Maui Land and Marriot were more than willing to approve bridge funding.

On another note, the costs for completing the project decreased, because the Ritz-Carlton sold 10 timeshare units were sold last month.

The Honolulu Advertiser describes the new resort, “84 traditional fee-simple condos, and 62 units being sold as “fractional ownership” condos—essentially a longer-term version of timeshare, in which each unit is shared by 12 buyers who receive three weeks of annual use.”

http://www.timesharesdaily.com/index.php/20090216295/Latest/Ritz-Carlton-Timeshare-stays-on-course-with-New-Financing-Agreement.

More Britons will take a caravan holiday home this year than will visit Spain - our most popular holiday destination.

While the number of visits abroad is falling sharply, more and more Britons are looking for options to holiday at home this summer, say reports.

And camp and caravan sites are most in demand - while enquiries to hotels and B&Bs are down. One operator, 118 118, says calls for caravan & camping sites rose 40 per cent in December and January, while calls for lodging in Britain fell by 20 per cent.

The trend is confirmed by The Caravan Club, which says advance bookings for 2009 are up 40 per cent on last year.

The increased demand could translate in more than 2m extra caravan holidays being taken in Britain this year, adds the National Caravan Council, with a final tally approaching nearly 13.9m.

And with foreign trips declining by six per cent in the last quarter of 2008, the figure is expected to top the 13.8m figure of British visits to Spain in 2007 - the last year of full travel statistics.

NCC director-general John Lally says: "Bookings in UK holiday and touring parks are up by anything from 8% to 50%, as people choose ‘staycationing’, and opt for self-catering and value over euro Costa-lot holidays."

The slew of new figures came on the eve of the National Boat Caravan & Outdoor Show, which opens at the NEC in Birmingham tomorrow.

Lally added: "There is widespread evidence that existing caravan owners are using their caravans more," with caravans appealing to holidaymakers as they allow people to control costs, and are increasingly seen as green options.

"Caravans, motorhomes and caravan holiday homes have changed beyond recognition in the last decade - many parks can compete with the best, boasting extensive leisure facilities, high levels of service and are very family-orientated."

The Camping and Caravanning Club this week announced that it is to instal wireless broadband (WiFi) at 91 of its sites in the UK by April. Business Systems Director Garry Barr said: “In this day and age, most individuals prefer the option of internet access, even when they are on holiday."

According to the NCC, an estimated 500,000 caravans are in regular use, out of a total of 1.5m caravanners, motor caravanners and trailer tenters in the UK.

The rising popularity of caravanning could even create more than 1,000 new jobs in UK caravan parks, mainly in coastal areas, as additional staff are taken on to cope with demand.

According to The Caravan Club, its members generated £183million last year into rural tourism economies when shopping, eating out, buying local produce and visiting local attractions.

Most money (£39m) was spent in the South-West, followed The Midlands (£26m), East Anglia (£22.1m), Wales (£19m), Scotland (£16.6m) and Yorkshire (£15m). Least money was spent in London (£4.5m) and the North-West (£3.6m).

The popularity of all three is rising sharply in Britain, and appeal is broadly spread - include a travelling aristocrat

Nick Lomas, director of marketing for the Caravan Club said: “We confidently predict that 2009 will be the year of the great British, value for money holiday.

"At a time of considerable economic uncertainty, tourism regions across the UK will continue to benefit from stay at home Britons and with thousands of campsites and destinations to choose from, there is no better time to plan and book holiday breaks in the UK.”

The National Caravan Boat and Outdoor Show takes place at the NEC, Birmingham, from Feb 17-22.The show is open from 10.00 until 18.00 every day and parking is free.

http://www.timesonline.co.uk/tol/travel/news/article5717550.ece

National Express is selling 40,000 coach seats from £1 during its “funfare” promotion. Seats are available on selected routes, which are listed on the National Express website. When you’ve chosen your destination and date, the seats available at £1 seats will be displayed, and can be booked online.

Bookings must be made before Wednesday 25 March, and it’s expected that the seats will sell out quickly. There’s a 50p booking fee and the tickets are not refundable.

There’s good news also for those over 60. National Express is offering discounts of as much as 50 per cent on coach fares during February. The discount is available every day during the month to more than a thousand destinations in Britain, during both peak and off-peak periods.

http://www.asap.co.uk/news/national-express-coach-seats-from-1-pound-5634189.html

Investors seeking affordable holiday homes are turning to fractional ownership, holiday bonds and buy-to-let deals as a more reliable alternative to timeshare. These schemes demand larger upfront payments but, crucially, offer genuine re-sale values.

Hapimag, Europe’s oldest timeshare provider, is moving with the times and offering a more flexible approach. The Swiss-based group, which was established in 1963, now has more than 139,000 shareholders using resorts throughout Europe, the Nordic countries, Africa and the US.

Investors are awarded 12 points for every €5,000-worth of shares they hold, and holidays cost 4-38 points per week, depending on the property and location chosen. “It is not a classical timeshare fixed at one location,” explains Kurt Scholl, Hapimag chief executive.

Shareholders who want to exit the scheme can sell their shares on the free market or back to the company. However, Hapimag only offers this repurchase facility after seven years, and then requires two further years’ notice of a sale.

Investors don’t get back the full value of their investment, either. Hapimag will only pay back the net asset value of the share based on the overall equity divided by the number of shares issued, which curently equates to €2,000. It also limits the number of shares it will buy back to the number it has sold in that calendar year.

Other schemes offer easier ways to get your money out.

Holiday Property Bond (HPB), which was established in 1983, operates as an asset-backed life assurance bond regulated by the Financial Services Authority. Every £1 invested in a bond earns one point, and points can buy holidays throughout Europe.

It has more than 38,000 bondholders who exchange points for the use of holiday properties throughout Europe. There are two exit opportunities: a full refund after their first holiday if not satisfied, or a return of the unit value of the bond, currently 73p in the £1, after two years, less 25 per cent upfront fees.

Other benefits include points-free holidays in 300 privately-owned villas in low season, and the ability to pass a bond on to heirs.

But while a bond may be considered as a long-term capital asset, it should not be treated as a conventional investment. “It is a lifestyle investment,” says James Boyce, managing director of HPB Management. “People mustn’t invest in the bond as an investment in the literal sense. It is not a property- based investment.”

Some fractional ownership schemes do have investment potential, though. They enable investors to buy a share in a property which is later sold with the proceeds split equally. In the US, there are now $1m fractional schemes in premier ski resorts, but there are currently only 25 fractional resorts in Europe. Investors seeking affordable holiday homes are turning to fractional ownership, holiday bonds and buy-to-let deals as a more reliable alternative to timeshare.

A new scheme being offered by Bristol-based Seasons Holidays is for three-bedroom lodges on the St Piran resort, set in parkland on the Clowance Estate in Cornwall. These are being offered to eight fractional owners for £59,350 per owner – valuing each lodge at £474,800. After 16 years, each property will be put on the market, with each owner receiving a 12.5 per cent share of the sale price.

Owners are entitled to six weeks’ use of a lodge a year, but must also pay annual charges of £1,500. Alternatively, they can opt to lease back three high season weeks, and pay no fees – although they may achieve more than the fees by renting their weeks privately.

Wealthier investors could consider a collective buy-to-let scheme. PB Properties, a division of tour operator Powder Byrne, is offering three-bedroom apartments plus a share of the freehold in Swiss ski chalets in Laax, for a little under £1m. When owners are not using their piste-side apartments, they are automatically offered for rent to Powder Byrne skiers. All rental income is pooled and shared between the owners of available apartments, giving the potential for income even if an owner’s apartment is not let.

http://www.ft.com/cms/s/2/f926924c-f9ff-11dd-9daa-000077b07658.html

Air France-KLM, Europe's largest airline, has fallen heavily into loss and is being forced to shrink its operations to cut costs.

The airline is reducing capacity in the coming summer season from April and is slowing capital investment. It is also being forced to unwind several of its fuel hedging positions, which are incurring heavy losses in the face of the steep decline in the oil price.

The group is being hit like other leading European airlines by contracting demand from business travellers - its most lucrative customers - and from the sharp drop in air cargo volumes due to the weakness of the global economy.

Its short-haul domestic routes also performed poorly in the third quarter.

The airline said yesterday that the economic environment was continuing to deteriorate, which made it difficult to forecast its results for the 12 months only weeks before the end of the financial year at March 31. Its shares closed 25 cents or 3.2 per cent higher at €7.98.

Air France-KLM said it was aiming to remain in operating profit for the full year to March, but the level would "depend on economic developments, their impact on the passenger activity, and especially on cargo which is facing extremely difficult conditions". Last May it forecast an operating profit of about €1bn ($1.3bn).

Lufthansa, the rival German airline, said that it had reached agreement with its unions for 2,600 cargo ground staff to go on to shortened hours from March 1, cutting hours by 20 per cent. The airline has also started similar negotiations with its pilots.

Air Canada, which is also cutting jobs and capacity and has been raising capital to shore up its balance sheet, reported a bigger-thanexpected fourth-quarter loss and warned of further cost-cutting.

Air France-KLM fell to an operating loss of €194m from a profit of €311m a year ago in the third quarter from October to December. In the first nine months, operating profits declined by 69 per cent from €1.45bn to €445m.

The €288m negative impact of its fuel derivatives contracts helped to push Air France-KLM into a net loss of €505m in third quarter from a net profit of €139m a year earlier.

For the nine months it fell from a net profit of €1.29bn to a net loss of €309m including the negative impact of €649m from its fuel derivatives contracts.

The group said it was reducing capacity in the summer season from April to October by 2 per cent and was cutting capital expenditure by €1.2bn, including €600m in the coming financial year as part of the effort to conserve cash.

It is unwinding several of its fuel hedging positions leaving it 43 per cent hedged for 2009-10 and 20 per cent for each of the two subsequent years.

http://www.ft.com/cms/s/0/e2998e14-fa39-11dd-9daa-000077b07658.html?nclick_check=1

Under £250

Isle of Wight 7 nights £128

The offer is for seven nights' self-catering, based on four sharing, staying in one of six converted 19th century cottages at Mersley Farm, Newchurch. Book through Wightlink (0871 376 0013; www.wightlink.co.uk/greengetaways) and the price includes return car ferry crossing from Porstmouth or Lymington. Depart on March 6.

France 3 nights £183

Book two nights and stay a third free on a b & b basis, based on two sharing, at the Hôtel Le Cheval Blanc in Honfleur. The offer with Inntravel (01653 617910; www.inntravel.co.uk) includes one dinner and return Channel crossing from Dover. Depart on February 20.

Under £500

Ireland 7 nights £347

Save £89 on a week's self-catering in a cottage at Glenbeg Point Holiday Village on the coast of County Wexford. Book with Irish Ferries Holidays (08705 171717; www.irishferries.com) The price includes return ferry crossing from either Holyhead or Pembroke for travel from April 4-11.

US 7 nights £418

The offer, based on two adults and two children sharing, is for seven nights in Kissimmee, Orlando, Florida, staying at the Westgate Inn & Suites. Book with Complete Orlando (0800 294 8844; www.completeorlando.co.uk) for travel on February 23 from Gatwick.

Morocco 4 nights £445

The price, which includes return flights from Gatwick, is for b & b at the Dar Anika riad in Marrakesh. Book with Simpson Travel (020 8392 5861; www.simpsontravel.com) Must be booked by February 28.

Luxury for less

France 7 nights £849

Save £232 per adult and £116 per child on a seven-night stay at Chamonix Mont-Blanc, which includes return flights from Gatwick or Heathrow, all meals and ski pass. Book with Club Med (0845 367 6767; www.clubmed.co.uk) for departure on March 1.

India 7 nights £1,145

Save £275 on the Indian Experience Tour with Cox & Kings (020 7873 5000; www.coxandkings.co.uk/offers) The tour visits the "Golden Triangle" of Delhi, Agra and Jaipur with a night at a royal mansion in Rajasthan. The price includes flights, b & b and all excursions. Must be booked February 28.

Dubai 6 nights £1,860

Save £1,015 on six nights' half board at the Royal Mirage hotel with Carrier (0161 491 7660; www.carrier.co.uk) The offer is valid until September 20 for bookings made by February 28.

All offers are subject to availability. Price is per person and based on two sharing, unless otherwise stated.

http://www.telegraph.co.uk/travel/budgettravel/4612683/Holiday-deals-of-the-week.html

Over a dozen British tour operators are selling holiday packages to Burma in resorts owned by individuals with strong links to the repressive military junta, breaching a European Union blacklist.

Tourism is thought to earn the generals who run Burma £180m, with a significant proportion coming from the UK.

Many of the leading resorts are owned by state entities that lease properties to investors. Some resorts, it is alleged, have been built by slave labour and involved the forcible displacement of huge numbers of people from their homes with little or no compensation.

Tour operators contacted by the Observer such as Undiscovered Destinations and Bamboo Travel said they were unaware that resorts were on a banned list. Operators maintained that they believed it was important outsiders visited the troubled nation.

But Tricia Barnett, director of Tourism Concern, whose report on the Burmese travel industry will be published later this week, says: "It is the responsibility of tour operators to ensure that they ... do not provide financial benefits to the military dictatorship. Given the lack of transparency in Burma and the overlap between state- and private-owned enterprises, the best way to do this is to stop trading with Burma

http://www.guardian.co.uk/business/2009/feb/15/burma-tourism-blacklist

Officials say a Southwest jetliner returned to Las Vegas after flames were spotted coming from one of its engines.

Paul Flaningan, a Southwest Airlines Inc. spokesman, says the pilot of the Boeing 737 turned off the engine and landed Thursday at McCarran International Airport. Flight 273 was bound for MacArthur Airport in New York's Long Island.

McCarran spokesman Chris Jones says the plane taxied to a terminal under its own power. He says the plane was airborne for about 20 minutes.

Flaningan says none of the 116 passengers was injured.

A Southwest flight last week landed safely in Las Vegas after passengers smelled an odor created by an electrical problem.

http://www.google.com/hostednews/ap/article/ALeqM5gdFehzqpv5i-WJ6iFr6DrB6C9UWwD96ADSOGF

Having a timeshare can be a dream come true. What is better than having a place to return every year to have the vacation of a lifetime? Staying at a timeshare gives you the freedom and space to live like you are at home while you are at the destination of your choice. Timeshare rentals offer great opportunities for everyone you just have to make sure that you are choosing the right timeshare, and although there are a ton of benefits of renting a timeshare there are a lot of people out there who are just trying to steal your money.

Timeshare rentals can pay off very quickly but people who are looking to purchase one are often victims of scams, being scammed is a nightmare for many people. Don’t let this happen to you! Here are a few things that many scammers have used in order to try to trick you out of your hard earned money.

The first thing is to read all of the fine print very carefully. When most people are selling timeshare there is a sales presentation that they have to go through before finalizing the sale with you. With many of these sales presentations a prize is included as an incentive for purchasing the timeshare, this is where a lot of timeshare rentals companies will try to trick you, the prize is an extra incentive for a reason, you should not have to pay for it. Many companies will try to add in an “incentive” that actually will cost you money, if it isn’t for purchasing the incentive they will try to charge you extra for delivery of the prize. Be very aware of the fine print under the contract.

Another way that timeshare rental companies try to scam people is through making the purchase the day they are given the sales presentation. Any legitimate timeshare rental company knows that purchasing a timeshare is a very serious decision and that it takes time to think about the purchase. If you are being asked to decide the day you are given the sales presentation on the timeshare you should walk away immediately. The people who do this are often people who are trying to run away with your money, you most likely will not get the timeshare, and won’t be able to find the person who sold you the timeshare.

Timeshares are very big investments, if you are very serious about possibly purchasing time at a timeshare you may want to bring a lawyer with you. Lawyers understand the fine print and understand what should be in the contract, they can help you decide whether or not the timeshare is a legitimate deal. If you can’t bring a lawyer with you bring the contract home with you and allow a lawyer to look it over for you, this can only help you and assure you that your purchase is worthwhile and a safe investment.

Charles Joseph provides information on exciting vacation rental recommendations, Timeshare rentals and detailed resort information to make vacation selection easier. To know more about Timeshares, Hawaii timeshare rentals and Timeshare resales visit http://www.redweek.com

http://www.bestsyndication.com/?q=node/24129

Forty-nine people have died after a passenger plane crashed into a house in Buffalo, New York state, local officials have said.

State police said all 44 passengers and 4 crew on board the Newark to Buffalo flight were killed. One person on the ground was reported to have also died.

The twin-prop Continental Connection Flight 3407 came down 10 miles (16km) from Buffalo airport at 2210 (0310GMT).

TV footage showed the wreckage of the plane and a house engulfed in flames.

State police spokeswoman Rebecca Gibbons said that of the 48 people on the plane, "there were no survivors."

Dave Bissonet, the emergency control director in Clarence, the suburb of Buffalo where the plane crashed, said one person on the ground had been killed.

Two people not on the plane were taken to hospital with minor injuries, CNN said.

Continental Express flight 3407, operated by Colgan Air, had reportedly been delayed on departure, and was approaching the airport in Buffalo two hours later than scheduled.

Twelve houses near the crash site were evacuated, because of concerns about the fuel left on the crashed Bombardier Dash 8 Q400 aircraft.

"Right now I'm thinking the worst," said Chris Kausner, who said his sister Elise was on the flight.

"And I'm thinking about the fact that my mother has to fly home from Florida and what I'm going to tell my two sons."

http://news.bbc.co.uk/1/hi/world/americas/7887555.stm

Two purchasers of Las Vegas vacation timeshare properties say they were victimized by dishonest sales tactics and are taking the timeshare companies to court.

Las Vegas attorney Barry Levinson last month filed separate lawsuits over the deals involving timeshare operators Consolidated Resorts Inc. and Summer Bay Resorts.

In one suit, a Nye County couple claims they were exploited in violation of Nevada’s Elder Abuse law.

Robert and Ellen Gooden claim personnel at Summer Bay Resorts were supposed to be helping them sell their interest in a timeshare condominium project, but then tricked them into buying another project they had no interest in.

Summer Bay operates the Desert Club timeshare project in Las Vegas.

"While in the process of signing the necessary paperwork to effectuate the sale of plaintiffs’ interest in the subject condominium project, an employee of the ... defendants slipped in papers unbeknownst to plaintiffs which consisted of a purchase agreement for the acquisition of additional property," the lawsuit alleges.

The suit says the Goodens didn’t know they had agreed to buy another property until they received a credit card receipt in the mail noting the purchase; and they say they had been asked to buy the subject property a year earlier at a lower price but were not interested in it.

The plaintiffs say they were the victims of fraud, deceptive trade practices and were not advised of their right to rescind the deal until it went into effect.

The couple, who were ages 60 and 67 at the time of the transaction, also allege Desert Club and Summer Bay Resorts violated the state Elder Abuse law.

They say the sales person they were dealing with "took advantage of plaintiffs’ advanced age and lack of commercial sophistication to perpetuate an act of fraud." They say the defendants are liable for "damages for injuries suffered by older or vulnerable persons as a result of abuse, neglect or exploitation."

Officials with Summer Bay Resorts and Desert Club could not immediately be reached for comment.

***

The second case involves Consolidated Resorts, a Las Vegas company that operates Las Vegas timeshares Tahiti Village, Tahiti and Club de Soleil; along with timeshare resorts in Florida and Hawaii.

Timeshare buyer Phillip Ramos, who lives in Clark County, alleges in the lawsuit that the only reason he bought an interest in two timeshare condominiums in Las Vegas is because he was assured by a Consolidated official that he could transfer the times he had purchased for use at other timeshare locations, specifically in Hawaii.

But after buying an interest in the Las Vegas timeshares, Ramos was told there was a lack of availability of timeshare locations in his desired travel destination of Hawaii.

The complaint alleges breach of contract, fraud and the use of deceptive trade practices by Consolidated. The suit also claims Ramos was not advised of his right to rescind the contract and did not discover the alleged misrepresentations until after the contract took effect.

Consolidated Resorts has not yet responded to the allegations and its policy is not to comment on litigation.

***

Separately, a lawsuit pitting the Palazzo resort on the Las Vegas Strip against Consolidated has been quietly dropped.

The parent companies of the Palazzo and its shopping mall, the Shoppes at the Palazzo, filed suit last month in Clark County District Court against Consolidated, claiming it failed to open marketing booths at the Palazzo resort and owed the Palazzo millions of dollars in rent.

Attorneys for the Palazzo moved Jan. 14, six days after the suit was filed, to have it dismissed. There was no explanation for the dismissal and officials with both companies have declined to comment on the suit.

http://www.lasvegassun.com/news/2009/feb/11/couple-sues-timeshare-company-exploitation/

With UK consumers concerned about the economy, the security of their jobs and depleted savings, travel operators have responded with low-priced deals for travel during the winter and summer seasons. According to travel experts at Kayak.com, this is an ideal time to book for the best values.

“People are still interested in travelling over the coming months, but we’ve seen they’re spending more time searching, comparing and discussing vacation decisions with travelling companions,” said Kayak.com’s executive vice president for marketing and distribution, Brian Harniman.

He added: “The good news is that deals on winter and spring getaways are more plentiful than we’ve seen in recent years. Airlines are launching winter fare sales that are lasting through spring. Hotels are lowering prices and adding value components such as free nights and vouchers for entertainment and dining.”

In a recent survey that Kayak.com conducted, respondents reported that price is now more important to them than location.

Additionally, the survey showed that 76 per cent of those completing the survey said they planned to travel this winter. Fifty per cent said that they would take fewer trips during this current winter season due to the impact of the credit crunch. Price and value were rated by 77 per cent of the respondents as the biggest factors in deciding whether they will take a winter break.

http://www.asap.co.uk/news/consumers-show-interest-in-travel-while-concerned-about-cost-5634185.html

The American Resort Development Association (ARDA) has unveiled an impressive line-up of Signature Sponsors for its 2009 ARDA Convention and Exposition, which will be held at the Orlando World Trade Center Marriot, Orlando, Florida.

The Signature Sponsorship list includes: Group RCI, Holiday Inn Club Vacations, American Express, International Cruise and Excursions, Inc. (ICE), Interval International, Holiday Systems International (HSI), Textron Financial Corporation, Starwood Vacation Ownership, Inc., VacationGuard, Inc., and Whirlpool Corporation.

The convention is slated to take place from March 2 to April 2. It is an annual event that gathers timeshare and vacation ownership companies for updates and developments in the industry. The convention also offers companies a chance to build new networks.

“We are grateful for the 2009 Signature Sponsors whose support enables us to continue to bring cutting-edge programs and high-quality events,” said ARDA President and CEO Howard C. Nusbaum.

For more information about this timeshare event, contact Bob Craycraft at 202-371-6700 or e-mail at brcraycraft@arda.org

http://www.timesharesdaily.com/index.php/20090212293/Latest/ARDA-announces-Sponsors-for-2009-Timeshare-Conference.html

Fares may be falling and passengers may be staying home more often, but airlines expect “ancillary revenue” to continue to soar for them this year.

“Ancillary revenue” is the airline term for all the fees and services you used to get when you bought a ticket, but now have to buy separately. Baggage fees, food on board, ticket change fees, pillows, extra legroom — just anything airlines can dream up to sell.

And since airline dreams do sometimes come true, all that stuff is selling: At jetBlue Airways Corp, ancillary revenue doubled in 2008 to about $350 million. JetBlue expects another 30% increase this year, Chief Executive David Barger told the Raymond James Growth Airline Conference on Thursday.

AirTran Airways Inc., collected $77 million in ancillary revenue in 2005, according to CEO Robert Fornaro. That grew to $233 million last year. This year AirTran expects customers to fork over more than $300 million for ancillary services.

http://blogs.wsj.com/middleseat/2009/02/09/airlines-charging-more-baggage-fees-refreshment/?mod=googlenews_wsj

You're vacationing in the Bahamas when a charming man in a flowered shirt offers you a free bottle of rum, breakfast and access to exclusive beachfront property for the day.

All you have to do is tour a timeshare resort that just opened on the island.

You're intrigued and find yourself in a luxury resort seated next to a sales representative trying to persuade you to buy a unit at the property. He promises a deal you can get only for that day.

But wait before you sign any papers. Never make a decision in a day. And make sure before you spend thousands on a vacation spot that you're going to use it for years to come.

Timeshares, in which consumers typically purchase a piece of a vacation property for the right to use it once a year, are growing in popularity. Industry leaders describe the purchase as a good option for many people.

About 4.7 million households owned timeshare vacation properties last year, compared with 4.4 million in 2006. But some customers buy a timeshare only to realize that it's not the thing for them. And the properties can be difficult to sell once you own one, industry experts say.

There are three main types of timeshares: fixed weeks, floating weeks and point systems.

A fixed week is better for people who like to go to the same place at the same time every year.

The floating week is good for people who may want to trade their time with someone who has a timeshare at a different location. The point system, where you use points to go to various places, is the most flexible and best for those who like to try different locations.

There are other factors to consider, such as yearly maintenance and penalty fees if you don't use the timeshare enough. Some properties charge fees for repairs if the resort is damaged. Then there's the price of a timeshare.

How do you really know whether what the sales representative is offering is the best deal? The average timeshare costs about $15,000, with $500 in annual maintenance fees, according to American Resort Development Association.

Don't feel as if you have to book the day you visit a resort timeshare. While some deals are available only for a day, you can usually get savings a week or even months later, experts said. You also can ask to leave a deposit and give yourself a night to consider.

If you decide to buy, then later want to sell, you can advertise online for free or for a listing charge of $10 to $35 at resale sites such as TUG Timeshare Marketplace, RedWeek.com, MyResortNetwork.com and Transaction Realty.

You also can try to rent your week to other vacationers or donate it to a charity. Some companies might also allow you to deed the property back to them, although fees can range from $500 to $4,000.

http://www.sun-sentinel.com/business/sfl-flznewstouse0208sbfeb08,0,6535516.story

Vacation time-shares must rank near the bottom of anyone's must-have list these days, not far from designer water, animal shrinks and personal spa consultants. That the high-pressure industry is reeling comes as no surprise. What's less obvious is why the business didn't fall apart sooner, especially since it is caught in the same securitization collapse that buried subprime mortgages and other asset-backed securities.

Banish any thoughts that time-share developers are immune from the economic downdraft. Marketing of new time-shares is being drastically cut. Time-share financing is extremely tough. Securitization is nonexistent. A kind of commercial financing called inventory loans, necessary as a bridge between development and securitization, is now moribund. In December, Textron Inc., inventory lending's driving force, said it was exiting the field. In 2007, Textron Financial Corp. provided more than $800 million in new funding to vacation ownership.

Time-share sales in 2007 totaled $10.6 billion, according to a study by Ernst & Young LLP. Through the third quarter of 2008, says Howard Nusbaum, CEO of industry group American Resort Development Association, sales were "on par with 2007, maybe 5 to 10% ahead." He estimates last year's sales were down 10% to 15% "at most." Scott Burlingame, editor and publisher of trade magazine Vacation Ownership World, believes that with "the bottom dropping out in the fourth quarter," 2008 figures could be down 25%.

This year is expected to be much worse. The biggest player, Wyndham Vacation Ownership, announced in December that it would cut 4,000 jobs, wiping out sales and marketing programs. That should reduce sales 40% this year, to $1.2 billion, says Wyndham Worldwide Corp.

Wyndham and Marriott International Inc., the second-largest developer, appear diversified enough to weather the downturn. Ditto for the time-share units of other chains, including Starwood Hotels & Resorts Worldwide Inc., Hilton Hotels Corp. and Walt Disney Co. But the fate of others is less certain. Privately held Westgate Resorts, owned by Central Florida Investments Inc., has already cut staff by almost 40%.

Moody's Investors Service downgraded publicly traded Bluegreen Corp.'s debt in late November and warned of the growing possibility of default. This followed the collapse of an acquisition play on Bluegreen by privately held Diamond Resorts International, which had bought another rival, The Former Company Corp., for $750 million in 2007. Lack of financing cratered the deal, Bluegreen said. That may be true enough. However, Boca Raton, Fla.-based Bluegreen now trades below $2 a share. Diamond's nonbinding offer in July was for $15 a share.

Time-share securitization has been around since the mid-'90s. A company underpins a new development by selling new time-shares, usually 20% down, with the rest financed. Revenue tends to come in monthly. Dozens are necessary to finance each room. So a developer bundles future time-share receivables, which secure funding for development.

In the latest Standard & Poor's update, outstanding securitized time-share transactions stood at $2.85 billion in October, down from a peak of $3.04 billion in July. S&P noted delinquencies topped 4.2%, with defaults at a still-low 0.70%. Both are rising, but not to the degree in other lending classes.

How come? Some possibilities: Time-shares are often nonrecourse loans, meaning a buyer is personally on the hook for the entire amount, whether he walks or not. Under the terms of securitization, a developer can substitute nondelinquent assets, so the pool isn't fixed like subprime. And there are the economics of the market. The average time-share costs $19,500 but is immediately worth half that in the resale market. Online secondary market site Sell My Timeshare Now reports the average offers last year ran between $4,000 and $5,000. So hard-pressed owners either suck it up and make payments, knowing at least they'll get a vacation week out of it, or jettison shares for huge losses to escape their contracts.

Nusbaum says the secondary market is all over the place in terms of professionalism and likens it to "where used autos were in the 1960s." A spokesman for Sell My Timeshare Now counters that secondary sales are surprisingly robust, even if owners take a beating. That may help keep defaults down, but it doesn't bode well for new sales. New inventory remains high, one analyst says. But even an unrelenting sales pitch may not be enough to convince a beleaguered consumer that it's worth forking over $20,000 for a week's vacation

http://www.reuters.com/article/dealAtoms/idUSCH1150234331420090207

The trading watchdog has warned consumers not to fall prey to fraudsters offering to sell unwanted timeshares for them.

The Office of Fair Trading said people had already lost hundreds of pounds to bogus timeshare resale companies, with some victims also conned into paying thousands of pounds to obtain holiday club membership on the basis of false promises.

The group said timeshare owners often received unsolicited telephone calls from a bogus timeshare resale company, in which it was claimed that a definite buyer had been found for their timeshare, and was willing to make an above market offer.

But once consumers had made upfront payments of several hundred pounds to cover so-called administration costs or land registry changes, they were told the sale had fallen through.

Victims were then asked to attend meetings with another buyer, often described as a corporate buyer, to discuss a new offer.

But these meetings often took place abroad, at Spanish resorts or other holiday destinations, where the consumer was made to sit through a high pressure sales presentation, lasting several hours.

In the presentation they were offered membership of a bogus holiday club in exchange for their timeshare and an additional payment of several thousand pounds.

However, the membership often fails to provide the range, price and quality of holidays that were promised by the salesmen.

Mike Haley, OFT director of consumer protection, said: "As the public has become more aware of the dangers of bogus holiday clubs and the tricks used, so the scammers have changed their tactics.

"Increasingly timeshare owners are being targeted with the bait of a fictitious timeshare resale used as a means of hooking consumers into buying a bogus holiday club membership."

http://www.google.com/hostednews/ukpress/article/ALeqM5jhyERovA7BB8HZKtBrmH2CvNPn8g

You often send me challenging problems, dear readers, but last week I was asked the impossible. Dieter Bartholomaei wants to entice his 15-year-old son away from his Xbox this summer to go on a family holiday – and he's asking me to come up with some suggestions.

Dieter, it's part of a teenager's job description to scupper any plans for wholesome family fun. But the good news is that this hasn't put off the more daring adventure operators, some of whom are announcing teen-only departures for the first time.

These include The Adventure Company (0845 609 1137 adventurecompany.co.uk), which is featuring a rather unusual teenagers' horseback tour of Cappadocia in Turkey, which takes in the underground city of Derinkuyu, starting at £579 per person (excluding flights).

Meanwhile, the thoughtful people at Families Worldwide (0845 051 4567; familiesworld wide.co.uk) are offering a selection of "post-exam stress-busting trips" for teens to destinations including Tanzania and Peru.

They've done all the hard work: all you need to do is turn up, complete with your frazzled teenager, and enjoy the ride.

Join small groups or opt for tailor-made trips; I'm loving the High Atlas Adventure (which costs less than £800 per person for eight days, including flights), walking and mule-riding in the mountains and spending the night in remote Berber villages.

And not an Xbox in sight.

http://www.independent.co.uk/travel/news-and-advice/katy-holland-exciting-holidays-for-teenagers-1603723.html

Europe’s largest low-cost airline has become the first to reduce its service to Poland, announcing that 11 of its services would be cancelled from next month.

The routes that are being cancelled include those from Birmingham, Bristol, Bournemouth, East Midlands, Liverpool and Luton airports in the UK.

In the past year, Ryanair has defied the economic downturn, adding 23 new routes from the UK, and cites Poland’s “unacceptable increase in navigation charges” as the reason for the move.

“These charges, which have increased by almost 1,000 per cent, make many Polish routes unattractive for passengers and directly impact on Ryanair’s ability to offer the low fares which passengers’ demand, especially during the current economic climate,” a Ryanair spokesman said.

“Ryanair continuously revises its route network in order to offer our passengers the lowest fares across 26 countries,” the spokesman added.

Since Poland joined the EU in 2004, passenger numbers at the country’s airports have increased markedly. In 2003, the six largest airports in Poland - Gdansk, Katowice, Kraków, Poznan Warsaw and Wroclaw - handled under seven million passengers. In 2008, that number had brown to nearly 20 million.

http://www.asap.co.uk/news/ryanair-reduces-number-of-poland-routes-5634183.html

Never mind cash for amendments or cash for questions; our politicians once enjoyed holidays for votes. When the Holidays With Pay Act was passed shortly before the Second World War broke out, Sir Billy Butlin rewarded MPs who had voted in favour of a week's holiday for working men and women with a trip on a special chartered train to one of his holiday camps, at Clacton in Essex.

This week a rival operator, Pontins, announced a £50m improvement package for its UK operations, and the creation of 2,000 new jobs. "We're looking forward to a fabulous future," says Ian Smith, chief executive of Ocean Parcs, which now owns Pontins. To predict how likely that is, let's briefly go back a lifetime. In 1936, Butlin opened the first of his low-cost, high-intensity holiday complexes around the UK shores, at Skegness in Lincolnshire. He believed workers and their families would come for fun to British resorts, regardless of the weather.

Besides the launch of Butlins, 1936 proved a significant year. George V died, uttering (or so it is widely believed) last words that famously condemned the Sussex resort of Bognor Regis to alliterative ignominy. In the long term, Bognor was indeed buggered because of another 1936 innovation, just up the road in Gatwick: the world's first modern air terminal. The Sussex airport is now the country's leading escape-route for British holidaymakers.

The holiday camps did get their time in the sun for a few decades after the war. The red and blue knights (Sir Billy Butlin in the Redcoat corner, Sir Fred Pontin with the Bluecoats) thrived on the British appetite for travel, even if the closest approximation to paradise was no further than the nearest entertainment compound. But Spain held a trump card over Skegness: sunshine. By the mid-1980s more Brits were taking their summer holiday abroad than at home. Since then, the robust growth in holiday-taking has been focused firmly on Abroad, thanks to falling fares and rising disposable income.

Pontins' big bet is that wary holidaymakers will switch en masse from packages in the Mediterranean and Florida to British holiday centres. The investment plans were welcomed by a travel industry desperate for good news. The people who fill the 2,000 new vacancies should also be happy, though domestic tourism endures chronically poor pay (previous Butlins owners lobbied against the national minimum wage). The Government is delighted by evidence of, if I may, the yellow sandcastles of economic recovery. And longer term, anything that persuades us to swap the financial uncertainties of the Continent for the climatic unpredictability of Britain will narrow the £19bn tourism deficit – the excess of our spending abroad over what foreign visitors bring in.

A mass movement away from Palma Nova and towards Prestatyn Sands is an appealing notion, but in the high-pressure Dodgems that the present travel industry resembles, some big risks remain.

The first is that millions of Brits are biting the euro-bullet and booking overseas packages despite the puny pound: this week our biggest tour operator, Tui, said bookings are on target even with prices up 11 per cent. Next, some travellers may decide to holiday at home – literally, perhaps making day-trips in the surrounding area. Low cost for them, low revenue for Britain. Third, if the UK fails to deliver value to holidaymakers who are resting their passports, they won't stay around next year. .

Doubtless some middle-class people will trade down from Club Mark Warner or Center Parcs to Pontins or Butlins this summer. If they escape the 21st-century equivalent of dark, satanic mills, and are at a loose end in Bognor Regis, they could always visit the cottage close to the present Butlins where William Blake wrote "Jerusalem". Until Pontins or others build a holiday Jerusalem in England's green and pleasant land, at least we could rename the Dodgems "Chariots of Fire" in Blake's honour.

Now is the winter of our discontented overseas visitors

Even by Thursday, four days after the first batch of heavy snowfall, the British Airways arrivals board at Heathrow Terminal 5 made glum reading. Nine long-haul inbound flights were cancelled – two from South Africa, five from North America, plus Hong Kong and Dubai. While plenty of BA passengers had a miserable time due to the messy sclerosis of airport chaos, the airline does not deserve undue criticism. Indeed, BA recovered remarkably fast from having one-third of its fleet of long-haul aircraft, amounting to 33 wide-bodied Boeings, diverted from Heathrow to airports from Scotland to Portugal. Our national airline, along with BMI, Virgin, easyJet and FlyBe, was clobbered once again by the UK's transportational inadequacy.

By now, most of the affected passengers – perhaps half a million of them – will have got where they needed to be. But I fret about what our collective response to inclement weather says about the UK.

Airport operators in Amsterdam, Paris and Frankfurt will have watched gleefully as London, the gateway to Europe, shut down again.

Many of those stranded were foreign visitors due to head home after a weekend in the capital. So I took a look at how happy their involuntary extra day in London will have proved. In terms of transport it was dismal. The capital's entire bus system shut down, along with parts of the Tube network. Suppose, though, the stoical tourist had found their way to one of London's top 10 attractions (in terms of visitor numbers); what would they have found?

Many opened as normal, but closed at around 3pm or 4pm to allow staff to battle home: the British Museum, Tate Modern, Natural History Museum, Science Museum and Madame Tussaud's. The National Gallery and the V&A had restricted hours and some galleries were closed to visitors. In Greenwich, the National Maritime Museum was open normally, but the Royal Observatory was closed all day. So too were the London Eye and the Tower of London, citing "health and safety" concerns after a dose of snow that a Montrealer or a Muscovite would barely notice.

At a time when Britain needs to be taken seriously as an economic power, we appear content to muddle through our mediocrity while the world sniggers: only a British Rail official could have coined the celebrated complaint about the "wrong kind of snow" gumming up the nation's trains.

http://www.independent.co.uk/travel/simon-calder/simon-calder-uks-holiday-camps-get-their-moment-in-the-sun-1548295.html

DENNIS - It’s not illegal to offer a free weekend in a water-view timeshare or beachside condominium in exchange for a few hours of time listening to a sales promotion. But anyone conducting this business on a public way in Massachusetts is breaking a state law.

And in Dennis, soliciting such deals on beaches violates a town bylaw.

Residents, visitors and businesses on Dennis’ south side have been pestered for years by solicitors promising freebies at nearby resorts.

“They drive around the Sea Street Beach and Glendon Road Beach parking lots, approaching or stopping cars and trying to persuade people to go to timeshares like the Edgewater,” said Dennis Police Capt. Bill Monahan. “They get paid money to send people to listen to the sales pitches in exchange for a gift or a free weekend at the resort.”

Every so often, police catch someone in the act.

Monahan said the solicitors don’t mind paying the $50 fine imposed by the state because income from the many times they don’t get caught is lucrative. “They’re out there on a year-round basis even though the town has beach regulations that prohibit it.”

Beach Director Dustin Pineau said any violation of a beach bylaw is a criminal offense punishable by a fine of up to $300. Pineau said he and beach coordinator Harry Allen have told solicitors “dozens and dozens of times” to leave the beach parking lots. “They throw obscenities at us and insist they have a right to be there,” Pineau said.

Pineau said there was a meeting last year with Dave Puopolo, who owns many of the establishments, “and we told them this had to stop. What frustrates me is how arrogant they are. And they didn’t stop.”

Business and motel owners on the south side have complained to police about the solicitors bothering their customers.

“We continue to slap summonses on them as often as we can,” Monahan said. “The person who was solicited has to be willing to testify in court, and while some do, it’s hard to give up a half-day’s work. Many of the victims are visitors who will be long gone when the court date comes up.”

Monahan himself has been approached while off duty.

“One day my wife and I were driving down Chase Avenue and one of them fell in behind me — I know them on sight,” Monahan said. “I did a U-turn, and he was waving to me, so I stopped. When he came to the window, I pulled out my badge and said, ‘You’ll be receiving your summons in the mail.’ He wanted a jury trial and got one. He was found guilty, fined $50, and he was probably back to work before I got home.”

Police receive fewer complaints in winter when soliciting from vehicles is more difficult than approaching walkers and joggers on foot. “Warmer weather brings them out of their cars, aggressively approaching people along roads and beaches,” Monahan said.

Pineau hopes for some relief this summer. The town sent Puopolo a certified letter advising him that anyone representing his businesses “may not enter any town beach parking lot or beach” based on their past violations of beach bylaws.

Timeshare and condominium owner Puopolo did not return phone calls before The Register’s deadline.

http://www.wickedlocal.com/dennis/news/business/x84114366/Dennis-cracks-down-on-solicitors-Timeshare-salesmen-targeted

TUI Travel, Europe's biggest travel firm and owner of Thomson Holidays, has reported stronger UK demand for summer holidays, suggesting sunseekers are determined to shrug off the recession woes.

The group's consumer research suggests 87 per cent of UK customers will take an overseas holiday this year – the same as the previous year – despite the economic gloom and unfavourable exchange rates.

TUI said the findings were "consistent with the stronger booking patterns we have seen over the last few weeks".

The firm added that demand for medium-haul destinations outside the eurozone such as Turkey and Egypt was "very strong".

German-owned TUI merged with rival First Choice in 2007 amid a wave of consolidation in the sector amid lower demand for package holidays. The firm said yesterday it was on track to meet savings targets of £175 million through the deal.

Numis Securities analyst Wyn Ellis described TUI's update as "encouragin

http://business.scotsman.com/medialeisure/UK-demand-for-holidays-39still.4953776.jp

A lawsuit filed against Continental Airlines Inc. (CAL) claims the carrier's negligence played a role in a plane crash at Denver International Airport in December that hospitalized 38 passengers.

The lawsuit filed Wednesday on behalf of Houston resident Julie Kuehn concerns the Dec. 20 crash of Continental Flight 1404. The Boeing 737-5000 was taking off en route to Houston when it veered off the runway and crashed into a ravine before breaking apart. With passengers trapped inside, the fuselage caught fire when jet fuel from a ruptured tank ignited.

"We are continuing to cooperate in the NTSB investigation, and this process is likely to continue for months," a Continental spokeswoman said. "Since the facts of the accident are still being investigated, the allegations are premature. We're prepared to defend the company's actions and those of our crew."

Kuehn, 39, one of 38 passengers hospitalized after suffering back injuries, is seeking unspecified damages for her medical expenses, pain and mental anguish and other items as well as exemplary damages against Continental based on its role in the crash.

The lawsuit, filed in a Texas court, says Continental and pilots David Butler and Chad Levang were negligent and failed to exercise the high degree of care required to safely operate and maintain an aircraft. The suit also says the pilots and crew failed to maintain control of the jetliner and take proper evasive action when problems arose, and failed to adequately protect passengers during the evacuation of the plane.

The Wall Street Journal reported Jan. 2 that a sudden wind gust appears to be the most likely culprit in the crash, according to people familiar with interviews of the plane's pilots by federal accident investigators.

The Journal noted that investigators hadn't reached any definitive conclusions and continued to consider a wide range of potential causes, but preliminary data from the plane's onboard recorders and interviews with the cockpit crew increasingly suggest the problem began when a strong crosswind pushed the twin- engine jet to the left of the runway's centerline, according to these people.

Teams from the National Transportation Safety Board, Continental and Boeing were examining the nose gear and portions of the main landing gear to see whether problems with brakes or landing gear may have played a role in the accident.

Continental's shares were at $13.50, up 2.6%, in after-hours trading. They closed Wednesday up 1.5% at $13.16.

http://money.cnn.com/news/newsfeeds/articles/djf500/200902041743DOWJONESDJONLINE000815_FORTUNE5.htm

Helene G, a reader, owns a resort in the Caribbean, and she is concerned because the annual expenses when she purchased in 2001 were $540, and in the last few years she’s seen them skyrocket to well over a thousand dollars per year. This, understandably, has her concerned, and she wonders if this is a common occurrence.

It’s a good question, and, in my experience, it’s not a typical situation.

I am still looking into the specifics of her situation, but there are some general circumstances that may contribute to an uptick in annual expenses, sometimes in the short run, and sometimes a more permanent increase.

Some of the factors that are relevant here; the property is located outside the United States, so to some degree, at least, the annual expense calculations are subject to some degree of currency exchange rates. Although generally, resorts in Mexico and the Caribbean benefit from lower labor costs.

The particular property the reader asks about is part of the RCI points program. Many people like the flexibility of points (I’ll revisit the issue soon, meanwhile here is an article I wrote about points several years ago), http://www.examiner.com/x-773-Timeshare-Examiner~y2009m2d3-Timeshare-classic-What-is-the-point-of-points-Part-I but it is a more expensive program to administer. If the conversion took place after the reader purchased, the annual costs will be higher.

Sometimes natural disaster plays a role. My sister and her family own a different resort in the same region. When she purchased, it was a “Right to Use” property, with her ownership expiring in 50 years. After the resort suffered major damage in a hurricane, the new management company operating the property imposed an assessment of several thousand dollars, but part of the change over also resulted in the ownership being converted to a permanent deeded property. It is now something that can be in her family for generations.

In some cases, there are limits built into the original policies and procedures when a resort opens, restricting the amount the annual cost could increase from one year to the next, with allowances for special assessments in case of emergency. But real estate laws in other countries aren’t always as all encompassing as in the United States.

And in the case of the emailer, the maintenance fee is not supposed to increase by more than 4% each year, but there is the assessment, then there is a club fee, a points fee and an operational fee. They were even assessed a fee when the call center moved from India to the United States. It begins to look a little like the junk fees when you refinance a mortgage or buy a car.

Not to be ignored is the fact that the management company for the resort in question has been recently acquired by a larger developer, one that has had financial challenges in the recent past. Again, just speculating, but it wouldn’t be the first time a company created ways to increase the revenue to shift acquisition costs to the end user.

Costs are generally more controlled for US based properties, but sometimes they are subject to a number of costs over and above the annual maintenance fees. They could include property taxes and insurance, though in some cases these costs are built into the one maintenance fee. As a matter of fact, the developer in question has US based properties as well.

And most owners have other costs beyond their maintenance fee anyway. These usually include membership in an exchange company, the cost of exchanges when they take place, and any other programs, like ICE Gallery, they may join.

http://www.examiner.com/x-773-Timeshare-Examiner~y2009m2d3-Timeshare-Maintenance-fees-out-of-control

Budget carrier easyJet is saying that it will take a “cautious approach” to fleet expansion during the economic downturn.

Chairman Sir Colin Chandler delivered the message at the airline’s annual general meeting.

He added that all decisions regarding adding aircraft to the fleet will be made “prudently”, based on the trading outlook given overall economic conditions.

“Naturally this fleet plan for 2010 of 185 aircraft and 2011 of 197 aircraft may change if the macro environment worsens in the next three to six months and given the lead time for building aircraft,” the chairman said. “In light of the current economic environment the Board will continue to adopt a cautious approach to growth and will focus on maintaining a strong balance sheet.”

Sir Colin, leaving the chairmanship after six years, noted that the European economy was in “a challenging recession of an uncertain length and depth”. He added: “Many commentators are suggesting that this could be the worst economic conditions of a generation. The harsh effects of this are already being felt by many companies and industries.”

Easyjet began 2009 in a better situation than had been expected, with forward bookings relatively unchanged from the same period one year previously, he commented. “There is clear evidence of business travellers switching to EasyJet in search of better value and we are benefiting as leisure passengers switch from long haul destinations to holiday within the EasyJet network.”

http://www.asap.co.uk/news/easyjet-may-reconsider-fleet-additions-in-recession-5634174.html

The Official Journal of the European Union, OJEU, has published in February 3rd 2009, Directive 2008/122/EC of the European Parliament and of the Council of January 14th, 2009, on the protection of consumers in respect of certain aspects of timeshare, long-term holiday product, resale and exchange contracts. This Directive aims to tackle the existing regulatory gaps which create appreciable distortions of competition and may cause problems for EU consummers.

In order to enhance legal certainty and fully achieve the benefits of the internal market for consumers and businesses, the relevant laws of the Member States need to be approximated further. Therefore, certain aspects of the marketing, sale and resale of timeshares and long-term holiday products as well as the exchange of rights deriving from timeshare contracts needed to be fully harmonised.

The purpose of this Directive is to contribute to the proper functioning of the internal market and to achieve a high level of consumer protection, by approximating the laws, regulations and administrative provisions of the Member States in respect of certain aspects of the marketing, sale and resale of timeshares and long-term holiday products as well as exchange contracts.

Provisions of this Directive will affect to the following type of contracts:

Timeshare contracts
Long-term holidays products
Resale contract
Exchange contracts
Advertising and pre-contractual information
Member States will ensure that any advertising specifies the possibility of obtaining the information related to the product and indicates where it can be obtained.

This pre-contractual information, which must be provided by the trader to the consumer in due time before the consumer is bound by any contract or offer, must include the elements and informations provided for in the Annexes to this Directive for all the concerned products: timeshare contracts, long-term holidays products, resale contract and exchange contracts.

The timeshare, long-term holiday product, resale or exchange contracts
Member States will ensure that the contract is in writing, on paper or on another durable medium, and drawn up in the language or one of the languages of the Member State in which the consumer is resident or a national, at the choice of the consumer, provided it is an official language of the Community.

All the advertising and pre-contractual information must form an integral part of the contract and not be altered unless the parties expressly agree otherwise or the changes result from unusual and unforeseeable circumstances beyond the trader’s control, the consequences of which could not have been avoided even if all due care had been exercised.

Right of withdrawal and Advance payment
In addition to the remedies available to the consumer under national law in the event of breach of the provisions of this Directive, Member States will ensure that the consumer is given a period of 14 calendar days to withdraw from the timeshare, long-term holiday product, resale or exchange contract, without giving any reason.

Where the consumer intends to exercise the right of withdrawal the consumer shall, before the expiry of the withdrawal period, notify the trader on paper or on another durable medium of the decision to withdraw.

Judicial and administrative redress and out-of-court redress
Member States will ensure that, in the interests of consumers, adequate and effective means exist to ensure compliance by traders with this Directive. This means will include provisions to ensure that certain bodies are entitled to take actions in defence of consumers, such as:

Public bodies and authorities or their representatives.
Consumer organisations with a legitimate interest in protecting consumers.
Professional organisations with a legitimate interest in taking such action.
Besides, Member States will encourage the setting up or development of adequate and effective out-of-court complaints and redress procedures for the settlement of consumer disputes under this Directive and, where appropriate, encourage traders and their branch organisations to inform consumers of the availability of such procedures.

Member States should not be allowed to maintain or introduce in their national legislation provisions diverging from those laid down in this Directive. Where no such harmonised provisions exist, Member States should remain free to maintain or introduce national legislation in conformity with Community law.

Member States must adopt and publish, by February 23rd, 2011, the laws, regulations and administrative provisions necessary to comply with this Directive. They will forthwith communicate to the Commission the text of those provisions, and apply those provisions from February, 23rd 2011.

http://euroalert.net/en/news.aspx?idn=8419

Raintree Vacation Club—a Houston-based timeshare company—released their latest financial report. The company says that they are not only looking to acquire new properties, but they are also setting sales records.

Raintree is the largest independent US-based vacation ownership company in Mexico. The company has sales offices in Cancun, Los Cabos, Puerta Vallarta, and Mexico.

The Raintree Vacation Club has 21 timeshare resorts, 10 of which are in Mexico. The Club also has resorts in western US and western Canada.

Recently, the Club bought the Phoenix resort, which marked their 21st property. The company’s president and CEO Doug Bech says that the Phoenix property represents, “… over $100 million in future timeshare sales. It was acquired from Resort Funding, which is also providing an excellent working capital/receivables hypothecation line of credit for the consumer notes for both the Phoenix and Villa Vera Puerto Vallarta resorts. We will be rebranding this property quickly and begin operating it as a Raintree Resort.”

While most timeshare clubs are downsizing, Raintree continues to maintain pursue high-market perspectives. The company is clearly doing something right.

http://www.timesharesdaily.com/index.php/20090202283/Latest/Raintree-Vacation-Club-performs-well-amidst-recession.html

An update to my recent story on the almost million dollar fine paid by Orlando based timeshare developer Westgate Resorts.

Accused of violating the “Do not call” regulations, Westgate CEO David Siegel agreed, without admitting guilt, to have the company pay $900,000. Accument, another Florida travel company paid about $275,000 for the same violation.

I speculated last week that the million dollars was a relatively small drop in the Westgate marketing bucket, a cost of doing business, comparable to Fedex paying parking tickets.

My interview with Siegel leads me to correct the impression left by my speculation.

First, according to Siegel, the calls that violated the law were not made by a Westgate phone room. One manager in one of the sales offices (Westgate now has more than 20 resorts in 11 states) hired an outside marketing company that promised to provide travel oriented sales prospects for presentations.

These people had filled out surveys on cards in order to win a prize, leading to the invitation to a Westgate presentation. Similar marketing programs may be seen at pizzerias, festivals and county fairs all over the country.

Because it wasn’t made clear on these cards that the calls would be made on behalf of Westgate, the Federal Trade Commission, responding to a number of complaints pursued charges against the developer.

Siegel feels very strongly that they would have prevailed if they had fought the charges. However, with a potential penalty of $10,000 per violation, they were facing potential fines of more than ten million dollars. That combined with the legal fees associated with even a successful fight, persuaded Siegel to follow the advice of counsel and settle.

Siegel insists that the sales generated by the leads in question were about a quarter of a million dollars, so all in all, it was a losing proposition for the developer with almost 30 years experience in the timeshare business.

In a wide ranging conversation, Siegel reflected on the problems caused by the nation’s credit crunch, the laying off of more than 4,000 employees, the lack of a secondary market for timeshares, and being an independent in a world of hotels. More on those issues in future entries.

http://www.examiner.com/x-773-Timeshare-Examiner~y2009m2d2-Westgate-Resorts-an-interview-with-David-Siegel

The Irish budget airline reported a quarterly loss for the first time, but expects a savvier fuel pricing strategy will lead to profits next year

On Feb. 2, one of Europe's most profitable airlines, Ryanair (RYAAY), slipped into the red for the first time since the company went public in 1997. The Dublin-based discount airline posted losses of $130 million for the three months ending December 2008, compared with a $56 million profit during the same period the previous year.

Ryanair CEO Michael O'Leary described the results in a statement as "disappointing" and blamed a 71% increase in the price Ryanair paid for fuel during the quarter. The airline, which in the past has been criticized for refusing to hedge fuel contracts, this time around had locked in prices at a punitive rate of more than $1,100 a ton just as they began to fall to their current lows.

But the recent drop in fuel costs means Ryanair is now predicting a modest profit this year. Instead of breaking even, as the company previously anticipated, it expects a net profit of between $64 million and $102 million—despite a 20% drop in average fares, which at around $43 are already the lowest among European carriers. Ryanair also predicts a return to "significant profit" in its next financial year, ending March 2010.

RECORD LOSSES FOR EUROPEAN CARRIERS?
Credit a savvier fuel pricing strategy. The airline has now hedged 75% of its fuel requirements for the period from April to September 2009 (and 50% of its fuel needs from October to December) at an average price of $650 a ton—some 38% lower than the average $1,050 per ton paid in the current fiscal year. If Ryanair's average cost in fiscal year 2010 finishes at $650 per ton, the company's fuel bill will plummet by approximately $638 million the following fiscal year, O'Leary explained in a statement. He claimed that the new hedging contracts will "ensure that Ryanair returns to substantial profitability next year, when many of our competitors will be reporting losses," presumably due to factors ranging from lower demand and overcapacity to less attractive fuel contracts.

The fall in fuel prices is one bright spot in an otherwise challenging environment for the aviation industry. Citigroup (C) aviation analyst Andrew Light predicts that the fourth quarter of 2008 and the first quarter of 2009 are likely to be record loss-making quarters for European airlines, on par with the downturn caused by September 11, 2001. This year he predicts that within Europe, business travel and air cargo revenues are likely to fall by as much as 20% while passenger revenue could drop by 5%.

Just last month both British Airways (BAY.L) and Europe's largest airline, Air France-KLM (AIRF.PA), issued profit warnings. Air France-KLM, due to report its third-quarter results on Feb. 13, is expected to show an operating loss of $255 million for the quarter compared with an operating profit of $397 million during the third quarter last year. BA, which had previously expected to make a small profit, now expects a full-year loss of $212 million due to the economic downturn, fewer lucrative business travelers, and a fall in the value of the British pound.

Many analysts expect Europe's second-largest airline, Deutsche Lufthansa (LHAG.DE), also to lower its earnings estimates as demand for air travel falls. Citigroup thinks the German carrier's operating profit in 2009 will halve to $510 million. Last year Lufthansa went on a dealmaking spree, announcing plans to buy troubled Austrian Airlines and Brussels Airlines and increasing its ownership stake in Britain's No. 2 airline, BMI, to 80%.

AER LINGUS DEAL UNLIKELY
Ryanair also had hoped to finalize its own acquisition of rival Irish airline Aer Lingus (AERL.L). But in January the Irish government refused to sell Ryanair its 25% stake in the carrier for $955 million. According to O'Leary, Ryanair is unlikely "to waste any further management time or resources making another offer for Aer Lingus, as its scale and losses will continue to render it increasingly irrelevant in Europe's airline landscape."

Analysts reckon that as more consumers trade down, budget carriers Ryanair and easyJet (EZJ.L) will emerge from the current economic turbulence before the rest of Europe's airlines. Ryanair expects passenger numbers to grow 14%, to 66 million, next year. "The longer and deeper this recession, the better it will be for the lowest-cost producers in every sector," O'Leary said. "Like Lidl, Aldi, Ikea, and McDonald's (MCD), Ryanair is the lowest-cost provider—by a distance—in the European airline industry."

http://www.businessweek.com/globalbiz/content/feb2009/gb2009022_438388.htm?chan=globalbiz_europe+index+page_top+stories

Because of worsening economic conditions, travellers are changing their holiday plans for this year, with nearly half saying that they are scaling back, according to the results of a new study.

In a poll of 1,000 UK consumers, it was found that 46 per cent had already scaled back their travel plans due to the recession.

There are indications that concerns about the impact of travel on social and environmental conditions are also changing holiday plans.

Sixty-one per cent of the respondents to the survey indicated that they were intending to find out more about the environmental and social impact of their holidays, and 55 per cent said they would be choosing holiday destinations that could be reached by boat or train, rather than by plane.

Seventy-six per cent of those polled reported that they did not have sufficient information regarding the environmental and social impact of holiday travel to be able to make an informed choice.

It is expected that 2009 will be a difficult year for holiday operators, but those able to match value with social and environmental “values” are likely to fare better, and be better able to ride out the recession, according to Good Business, the corporate responsibility consultancy that commissioned the study.

Good Business founder and CEO Giles Gibbons noted: “With less money in their pockets it seems many holidaymakers plan to look for cheaper alternatives in the UK this year.”

He added: “Some might see this as good news from an environmental perspective, with reductions in things like flights.”

http://www.asap.co.uk/news/consumers-seeking-information-on-environmental-impact-of-holidays-5634156.html

An air steward employed by British Airways has reportedly died from malaria and two other cabin staff are seriously ill.

The flight attendant was said to have contracted the deadly strain of malaria after working a BA Heathrow-Ghana flight. The two other staff who were infected became ill after working on other routes.

Unite, Britain’s largest union, has demanded an urgent investigation into the matter, indicating that it could be linked to the accessibility of anti-malarial medication.

Officials from the union, which represents cabin crew members, have expressed their concern about the incidents to the UK government.

The national office for Unite, Steve Turner, said: “We would like to see a full investigation into the death of a BA cabin crew member from malaria and to see malaria tablets more readily available, as they once were.”

Previously, BA provided free anti-malarial tablets to its 9,000 crew around the world, but has changed its policy to make the drugs available only at airports for which prescriptions have been written.

The airline’s physician is based at Heathrow, and union sources are saying that with crew members flying around the world – and often at short notice – it can be difficult to have free access to the tablets, meaning that many are not protected.

http://www.asap.co.uk/news/british-airways-flight-attendant-dies-from-malaria-5634153.html

Rick Steves, travel expert, was a recent guest on the Ronn Owens Program on KGO in San Francisco. A caller asked about accessible issues in Europe for people with disabilities.
That got me thinking about the same question as regards to timeshare. Rick mentioned some sites for research, which you can see here. But his answer, for a number of reasons, wasn’t as comprehensive as one might expect. Nor will mine, for very much the same reason.

Many of the timeshare resorts in the United States were constructed after the 1990 passage of the American’s with Disabilities Act, but what is the definition of disability?
Most people think ramps and showers without a lip, allowing easy access for those using wheel chairs. But there are also travelers with vision or hearing impairments; mental disabilities, and even obesity meets the classification in some cases.

So just because you see the familiar logo in the RCI or Interval International directory indicating that the property is “accessible” don’t assume it meets the conditions for the travelers in your group.

Furthermore, the ADA is an American law. Much of the world is making an effort to catch up with the States, but it varies from area to area.

Before traveling, call the particular resort and make sure it suits the needs of your traveling party.

Most disabilities also have an advocacy group of one form or another that may be able to provide information about the suitability of a particular destination.
Incidentally, accessible does not mean unattractive.

Marriott’s Newport Coast Villas offersf units that are among the nicest I’ve seen. The floor plans are spacious and nicely laid out. And you don’t even initially realize that they are designed to meet the needs of a variety of physical challenges.

Having said all of that, I’m gonna risk pi**ing a few people off here. My mother was in a wheelchair for more than 25 years, and we traveled all over the country well before the ADA was passed. There were some things that she was not able to participate in, and no law like the ADA is going to make Space Mountain a ride she would have been able to do. But even without ramps, there was a lot she could do, and enjoy. So do your homework, do what you can to maximize the experience, but at the end of the day, I wouldn’t deprive myself of visiting an area just because not everything is going to be doable for me.

In terms of timeshare, discussion forums in the Timeshare Users Group, and other sites online may be able to offer some information.

http://www.examiner.com/x-773-Timeshare-Examiner~y2009m1d31-Timeshare-and-travelers-with-disabilities

UNDER £250

Scotland 7 nights £188
Price is based on seven nights’ self-catering in a cottage in a quiet part of Keith in Morayshire. Book with Cottages4you (0845 268 1560; www.cottages4you.co.uk). Valid for arrivals on February 14.

Spain 7 nights £225
Three nights’ b & b at Petit Palace Tres Cruces in Madrid with BA Holidays (0844 493 0758; www.ba.com). Departures from Gatwick throughout February.

Dubai flight only £231
Return flight from Heathrow on Royal Brunei with Flight Centre (0870 499 0042; www.flightcentre.co.uk). Offer available until end of March for travel until July 9. Quote ref DXBLONBI1.

UNDER £500

Madeira 7 nights £259
Save £250 on seven nights’ b & b at the Oasis Atlantic with First Choice (0871 664 9011; www.firstchoice.co.uk). Departs from Glasgow on February 9.

Tunisia 7 nights £295
Save £90 on seven nights’ half board at the Tour Khalef in Sousse with Portland Holidays Direct (08712 313237; www.portlanddirect.co.uk). Departs from Gatwick on February 18.

Morocco 14 nights £340
Price is based on 14 nights’ b & b at the Atlantic Hotel in Agadir with Panorama (0844 879 8200; www.panoramaholidays.co.uk). Departs from Gatwick on February 20.

Italy 3 nights £349
Save £110 on three nights’ b&b at the Montebello Splendid In Florence with Cresta Cities & Short Breaks (0844 800 7020; www.crestaholidays.co.uk). Departs from Gatwick on March 20.

SKIING

Söll 7 nights £179
Save £280 on seven nights’ in Austria staying at the Schindlhaus Apartments with Directski (0800 587 0945). Departs from Gatwick or Manchester Airport (£199) on Saturday.

Morzine 7 nights £549
Save £300 on seven nights’ catered accomodation at the French resort staying at the Chalet du Bois with Snowline (0844 557 3118; www.snowline.co.uk). Departs from Heathrow on February 8.

Folgarida 7 nights £599
Seven nights’ half board plus ski-boot hire and lift passes at the Italian resort, near Madonna Di Campiglio, staying at Vecchia America with Equity Ski (01273 622 111; www.equityski.co.uk). Departs from Gatwick on Saturday.

http://www.telegraph.co.uk/travel/budgettravel/4399482/Holiday-deals-of-the-week.html

Yes, says Patricia Yates, director of strategy and insights at VisitBritain

The answer is simple - a resounding yes. Some 20% of us who went on a foreign holiday last year are considering staying in the UK this year and many of our tourism businesses are already reporting healthy bookings for the summer months. Britain is such a varied destination; it can appeal to every taste and budget and making the choice to holiday here could be the best decision you make in 2009.

We are also fortunate to have such a huge range of accommodation across all price bands - from grand country house hotels to farmhouse B&Bs. And this year, as the tourism industry sees the chance to encourage more of us to explore our own country, there are deals and special offers to be had. So it is worth shopping around just as you would for an overseas holiday.

And you can forget the hassle involved in an overseas holiday - no flight delays or long queues at the airport and no worrying about how many dollars or euros your pound will buy.

Those of you who have always chosen to travel overseas might be pleasantly surprised while discovering your own backyard. For new events and attractions, a resurgence in local food and the growth in activity breaks have transformed the British holiday. Add to that our timeless tourism assets, from picturesque countryside and sleepy seaside resorts to lively multicultural cities, with terrific heritage and iconic landmarks, infused with contemporary design, music, architecture and performing arts.

However much we moan about it, we rather like our changeable weather! Regardless of the forecast there will always be surfers out in full force on Newquay beaches and walkers enjoying the scenic surroundings of the Lake District. I recall lying on an idyllic beach in Greece with my pre-teenage sons who casually remarked: "Of course this isn't the best beach in the world - that's Camber sands."

You see, what kids remember is playing football on the beach as the tide goes out, dive bombing in the dunes and fish and chips in their wrappers for tea - rather than exotic locations.

In Britain you can see art and culture from around the world as the entry to our most famous museums and galleries - such as the Tate Modern, the Lowry Gallery in Manchester, the Elgin Marbles at the British Museum or the Burrell Collection in Glasgow - is entirely free. Exploring on foot is a great way to admire the modern and historic architecture or to enjoy one of our many fantastic royal parks.

And we should take pride in our own tourism industry. This is Britain's fifth largest industry, supporting 2.7m jobs and delivering £114bn - 8.2% of the UK GDP. By choosing to holiday at home you are giving much-needed support to local regions, businesses and livelihoods. Almost one in eight startup businesses created in the UK belongs to the tourism sector, one of few industries that can promote and nurture small businesses - more than 200,000 of them. And tourism provides entry-level jobs, making it a viable option for people trying to get back in the job market and build their skills.

So yes, this is the year to have a great holiday exploring Britain - and at the same time you can pat yourself on the back at being part of a trend to support your local economy.

No, says Tim Williamson, customer director for First Choice and Thomson Holidays

Britain is lying under a dark cloud. By taking your holiday in Blighty, there's no escaping the doom and gloom of the economic downturn, job-cuts, and quite literally, the rain clouds. In these financially challenging times, people need escapism, that little ray of light to give them something to focus on and look forward to. That can be found by hopping on a plane and heading abroad for some guaranteed sunshine.

Last summer, Cyprus racked up 1,058 hours of sunshine compared with a paltry 381 hours in the UK. And the prospect of a scorching summer this year seems slim. Last year was the wettest British summer since records began, and with the weather in the UK becoming increasingly temperamental, why take the risk of your much-anticipated holiday being a complete washout? What can you do with your family in the rain? Not a lot.

Thomson and First Choice research shows that 88% of people would prefer to cut back on dining out and home improvements rather than sacrifice their holidays. And if you are going to spend your hard-earned cash on a trip away, why would you risk putting a dampener on the entire experience by staying in the UK, when you could be soaking up the sun in Egypt?

There's a common misconception that a holiday abroad will cost the earth. In fact, heading abroad can save you money. A week in May self-catering in Menorca for a family of four (two adults and two children) costs £695 with First Choice, whereas staying seven nights around the same time on a self-catering basis in a well-known British holiday camp will set you back up to £996 for a family of the same size. Worried about spending money? All-inclusives make it easy to budget and know how much money you are going to spend.

What better feeling is there than stepping off a plane and feeling the wave of heat hit your face - even when it's dark? And how else do you replicate the radiance only captured from a week spent in the sun - it's just not the same out of a bottle.

Book your package holiday abroad with a company protected under the government-backed Air Travel Organisers' Licensing Scheme and you can rest assured that your money is protected. But could you say the same if your UK hotel or rental company goes out of business?

While there are several areas of outstanding natural beauty to be discovered on these shores, a dip in the North Sea is hardly as enticing as it is in the tranquil turquoise sea of the Mediterranean. Plus, in Britain, you can't learn about overseas cultures, which is one of the joys of travelling abroad. Tasting local cuisines, immersing yourself in new experiences or simply lying around a pool reading a book or four is what makes a holiday. Or, if you fancy hopping on a camel, diving in a coral reef, or swimming with dolphins, you can.

You simply don't get to unwind in the same way in the UK. You still face traffic jams to the beach, you're still on your UK mobile network, so easily contactable, making it harder to forget about the stresses of work. People need to take a holiday from the recession. Abroad, you really can switch off, forget about everyday worries and relax - now that's truly priceless.

http://www.guardian.co.uk/money/2009/feb/01/household-bills-budgets-holiday