September 2, 2011
....if you owned 78,624 weeks in the Grand Mayan or 111,488 weeks in the Mayan Palace (excluding the Mayan Palace in Mazatlan)?Absurd question, of course. But, the fact of the matter is there are 78,624 total weeks available in the Grand Mayan and there were 111,488 available weeks in the Mayan Palace.
Why "there were"?
Because the Mayan Palace at Nuevo Vallarta is under major renovation. We do not know what the ultimate building configuration will be. What we do know is it will not be the height it once was. Therefore, we have taken 523 Nuevo Vallarta rooms from the Mayan Palace inventory (-27,296 weeks, or -24.4% of what once was the Mayan Palace inventory). Available Mayan Palace weeks are now 84,292, not 111,488.
Oh, wait a minute….there is additional adjustment. Sales personnel told us the company is restricted by law to selling 70% of available inventory. Having no idea whether or not this is true, we will go with it. This reduces the Grand Mayan available inventory to about 55,000 weeks and further reduces the Mayan Palace available inventory to about 59,000 weeks.
So, the question still remains….what would you do with all those weeks?
Our guess is you would try to sell them. And it appears that is just what Grupo Vidanta is trying to do.
Between June and August, we have heard from fellow members about offers to use weeks at reduced prices. These offers have been extended to fellow owners of Grupo Vidanta owned resorts and members of closed groups.
The fact that such promotions exist appears to be common place in the industry this year. Mr. Ron Roberts, President of Sage Marketing Group, Inc. posted a blog about the State of the US Timeshare industry in the LinkedIn Timeshare Professionals Group, which was commissioned by American Resort Developers Association (ARDA) and prepared by Ernst and Young.
An interesting finding that was highlighted by Mr. Roberts is "Ten percent of the timeshare occupancy rate was comprised of renters as more timeshare developers expanded their rental program offerings to reach consumers unfamiliar with vacation products. "
To say that the timeshare industry is very competitive is an under statement. Offers from other timeshare developers reach our desks every day. Consequently, it is our view that Grupo Vidant management wants to remain with the pack. If other companies are going to reel in new prospects through advertising initiatives, it is very likely Grupo Vidanta will try to do the same.
So, is that good or bad for members? Do such programs take weeks from members?
We would guess not. Mr. Roberts further points out that "80 percent of owners continued to travel to their timeshare destination." Members keep occupancy high, and non-members provide new members. In our view, the end result is a continuation of high levels of service, well maintained properties and updated facilities.
What do you think? Send us an email with your thoughts at [email protected].