Authors:1Gayle Jennings1Beverley Sparks2Graham Bradley 1Department of Tourism, Leisure, Hotel and Sport Management & Centre for Tourism, Sport and Service Innovation Research2School of PsychologyGriffith University, Gold Coast Campus, Queensland, AUSTRALIA

Report 2.1 Qualitative Study of New Owners’ Perceptions of Timeshare

March 2008

DERIVED CUSTOMER VALUE PROJECTConceptualisation and Measurement of Derived Customer Value: An Application to the Timeshare Industry

This research was supported under Australian Research Council‘s Linkage Projects funding scheme (project number LP0669093). The views expressed herein are those of the authors and not necessarily those of the Australian Research Council.

Acknowledgements This project is funded under the ARC Linkage Research Program with Australian Timeshare & Holiday Ownership Council Limited (ATHOC) as the industry partner. The research team would like to acknowledge the contributions of our industry partner, ATHOC, and in particular, the support of Ms Laura Younger, General Manager, ATHOC and Mr Ramy Filo, President, ATHOC. Industry Reference Group The team is especially grateful to the Industry Reference Group:

• Mr Sean Farquhar, Executive Director Operations, Vacation Management Limited • Mr Ramy Filo, President ATHOC; Classic Holiday Club • Ms Wendy Kessler, Vice President, Sales, Operations and Development, Wyndham

Vacation Resorts Asia Pacific • Mr Andrew Heslehurst, Product Manager, Resort Condominiums International • Ms Jo-Anne Smith, Chief Executive Officer, One Step Further • Mr Dick Van Der Tuin, Director of Marketing Operations, Wyndham Vacation

Resorts Asia Pacific • Mr Mike Winlaw, Executive Director Group Strategy and Commercial Services,

Accor Premiere Vacation Club • Ms Laura Younger, General Manager ATHOC

Research Assistants The project team acknowledges the important contribution made by the research assistants associated with this phase of the project:

Ms Julie Flynn for assistance in finalising this report. Ms Ulrike Kachel, Research Assistant, for her ongoing contribution to the project in data collection and analysis. Ms Karen Wildman, Senior Research Assistant, for her contribution to the set up and coordination of data collection.

The project was also supported by the following research assistants for the data collection or transcribing:

Ms Amanda Ayling, Ms Jacinda Cadman, Ms Michelle Dunbar, Ms Kristy Gallaway, and Ms Jane Malady.

_________________________________________________________________________

No responsibility is accepted by Griffith University for the use or misuse of information contained in or omitted from this report. Comments, corrections or additions welcome and should be sent to the authors. © 2008 Copyright

Executive Summary 1.0 This report gives details of a study of the views of people who have recently finalised a timeshare purchase, that is, they are “new owners”. These people have signed an agreement to purchase, and have been owners up to and including two years. 2. 0 This study used a qualitative methodology wherein dominant themes were identified and constantly compared across participant comments. Those themes then formed the basis of the findings of this report. While not representative, the findings have some generalisability due to the soundness of the qualitative research design and processes used. However, further qualitative interviewing is suggested to ensure that redundancy with regard to theme identification has been achieved. 3.0 The study involved telephone interviews with seven timeshare purchase new owners. The interviewees were six females and one male, ranging in ages from their early-30s to late 40s. All the new timeshare owners were residents of Queensland and lived on the Gold Coast. A focus group was also held with 11 new timeshare owners. In the new owners focus group, there were six females and five males aged between 30 and 69 years. These new owners had also purchased their timeshare products within a timeframe of 12 months to two years. 4.0 There are seven findings listed detailing new owners’ experiences, knowledge and reflections of timeshare ownership.

4.1 New owners within the two year post-purchase time frame could be categorized into the following four groups: new owner with no experience in use of timeshare, new owner who tried to book a timeshare holiday unsuccessfully, new owner who had booked successfully, new owner with first experiences of timeshare.

4.2 New owners bought timeshare because they were the “sort of person” who bought timeshare. This was related to being older, retired, having flexibility with time, and/or wanting to go overseas. There was also a “match with lifestyle” – needing a holiday every year and that “timeshare compared to other products” enabled a saving in advance on holidays. “Overall value” was associated with overseas travel, swap-ability, versatility and change or new experiences that timeshare holidays provide. Reasons why new owners were not using their timeshare options were related to the product concept “not working for me”, because they felt they were too old, because of added costs and “needing to be rich”. Other reasons included requiring more time and lifestyle flexibility to take advantage of the product, which was connected to “mismatch with lifestyle needs”. An additional reason was needing to know how to use the product better. When “compared to other products” and “overall value”, many interviewees commented that cheaper holidays could be more easily obtained online and at the new owners’ requested time(s). There were perceptions that timeshare was expensive, there were hidden costs and resale value was questionable.

4.3 In the course of purchasing timeshare, most new owners focused their commentaries on the presentation of the product during sales seminars. This phase of the seminar experience tended to be reported as new owners feeling pressured to buy. Several indicated that they had not experienced pressure and had a positive purchase experience. Some commented that there was a mismatch between information exchanged at seminars and post-purchase reality regarding availability and flexibility of timeshare products. Those new owners who commented on the seminar recruitment phase indicated that they were recruited with a “prize”.

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4.4 Most of the new owners expressed an understanding of the timeshare product as involving ownership of accommodation and/or points.

4.5 Less than two thirds of new owners interviewed personally knew other people who owned timeshare. Of those who knew others, both positive and negative experiences with timeshare were reported.

4.6 In general, drawing on information from the focus group and interviews, new owners were divided with regard to the value of the product. The focus group tended to be more negative towards the value of the product. It should be noted that most focus group attendees had tried to use their product while some of the interviewees had not attempted to do so. Drawing on interview material, most (that is six or seven of the seven people interviewed) felt that they would derive most value from the quality of the product and from the family, aesthetics and convenience dimensions of the product. Several other value dimensions of timeshare which were positively rated were relaxation, new experiences, financial worth, close friends and accessibility. Value was not perceived to be derived from esteem/status or social relationships.

4.7 As with rescinders, new owners tended to perceive the disadvantages of timeshare being associated with long booking times, unavailability of resorts, and limited exchange options of the product.

5.0 Listed in 5.1 and 5.2 are conclusions that have been derived from the interpretation of the focus group and interviews. Further recommendations regarding the enhancement of new owners’ perceptions of value of timeshare are provided in 5.3.

5.1 Stated reasons for new owners’ dissatisfaction with the product were associated with: • personal circumstances not permitting (or favouring) effective use of the product • financial considerations – new owners expressed that high buy-in, ongoing costs,

and the anticipation of poor re-sale value generated dissatisfaction with product purchase

• information exchange did not stand up to post-purchase reality • over time, perceived limitations of the product were increasingly identified. Discussion suggests a need to conduct further research into the new owner group, with a view to identifying changes in value perceptions that occur in post-purchase phases.

5.2 When new owners are compared to the non-owners and rescinders studied in the our previous qualitative studies (see Report 1.1, Report 1.2), new owners like rescinders appeared better informed about timeshare but less educated about its operations, especially how to gain best value from it. New owners were more appreciative of its quality, aesthetics, and other values, but more wary of its likely (in)flexibility.

5.3 Recommendations are made to enhance new owners’ perceptions of value of timeshare. Through the use of relationship marketing and well-timed delivery of company and product information; new owners would be able to improve their knowledge of how to use the product as well as how to use it to their advantage. The timeshare product needs to be clearly distinguished from other online offerings and the advantages of timeshare over these competitors presented. Additionally, strategies to give new owners early success in the use of the product would serve to generate satisfaction for new owners as well as stimulate positive word-of-mouth. Further research is required to gain a broader understanding of new owner’s experiences post-purchase.

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Table of Contents

Executive Summary ............................................................................................... i

1.0 Background .................................................................................................. 1

2.0 Aims of this Phase of the Research............................................................. 2

3.0 Approach to Data Collection....................................................................... 3

4.0 Findings......................................................................................................... 5

4.1 New Owners’ Experiences with their Timeshare Ownership.................. 5

4.2 Timeshare purchase and use....................................................................... 7

4.3 Seminar Experience ................................................................................... 10

4.4 Knowledge of Timeshare........................................................................... 11

4.5 Knowledge of Others Who Own Timeshare............................................ 11

4.6 Reflections on the Value of Timeshare Ownership................................. 12

4.7 Perceived Overall Benefits and Drawbacks of Timeshare..................... 13

5.0 Conclusions and Recommendations......................................................... 15

5.1 Summary of Findings ................................................................................ 15

5.2 Comparison to Findings of Non-Owners (Report 1.1) and Rescinders

(Report 1.2) ................................................................................................. 16

5.3 Recommendations ...................................................................................... 18

Appendix 1. Sample Focus Group Moderator Guide...................................... 19

Appendix 2. Sample Interviewer Guide............................................................ 23

Appendix 3. Extended Discussion of Seminar Experience.............................. 27

Appendix 4. Extended Discussion of Knowledge of Timeshare...................... 31

Appendix 5. Extended Discussion of the 15 Values ......................................... 35

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1.0 Background This is the first phase report of the second study in a series of planned reports of a program of research that focuses on customer values in the timeshare and holiday ownership1 industry. The research program investigates perceptions of value at different points in the timeshare purchase cycle, as well as differences over time in the factors influencing value formation. This document reports a qualitative study into recent purchasers of timeshare. In the program of research, we seek answers to questions such as the following: What is customer value? How do people perceive value at different points in the purchase cycle? Is value a uni- or multi-dimensional construct? How can knowledge of customer value be used to understand consumer behaviour, especially in relation to intangible products such as timeshare property ownership? And how can knowledge of customer value be applied to help the timeshare industry grow in ways congruent with the wellbeing of all Australians? The study of human values has a long history (Allport & Vernon, 1931). Values have motivational properties; they guide human actions (Rokeach, 1973). From a marketing perspective, customer value has been viewed as the consumer’s relative preference for an object or experience (Holbrook, 1999), and as the “personal perception of advantage arising out of a customer’s association with an organisation’s offering” (Woodall, 2003, p. 21). Research into customer value is undeveloped, inconclusive and without sound measurement tools. There is an ongoing need for research that sheds light on the structure, stability, and contextual relativity of consumer value. This research project addresses these issues. The project is an initiative of Griffith University, in collaboration with the peak industry body, the Australian Timeshare and Holiday Ownership Council (ATHOC). Researchers from Griffith University have a history of association with ATHOC that extends almost a decade. Most recently (2004-2005), a team from Griffith University and ATHOC collaborated in a preliminary study of consumer value. This research identified eleven themes relevant to the ways in which timeshare owners obtain value from their product. For example, owners reported that they derived valued from timeshare ownership in areas of rest and relaxation, luxury and aesthetics, and esteem/pride. Building on this successful collaborative research, in late 2005 the Griffith University research team applied for an Australian Research Council (ARC) Linkage grant to carry out further research into the consumer value concept, and in July 2006, they were awarded a grant to conduct a three-year program of research to investigate the topic of “Conceptualisation and Measurement of Derived Customer Value: An Application to the Timeshare Industry”. As described in the application to the ARC, this research involves a series of studies aimed at conceptualising and measuring the value that consumers obtain from timeshare at several points in the purchase process. The studies explore possible antecedents, correlates and consequences of changes in customer value over time, and differences between groups in customer value.

More formally, the aims of this program of research are

• to identify the nature of customer value, particularly its dimensionality, temporal stability, and contextual sensitivity

• to place the value construct within a broader theoretical context that includes likely antecedents, correlates and consequences

• to develop reliable and valid self-report scales that measure global customer value and each of its facets within the hospitality, leisure and tourism context

1 Throughout this report, the term timeshare is used broadly so as to include the full range of timeshare and related holiday ownership products; this was communicated to all participants.

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• to use these scales to provide a descriptive account of the value perceived to accrue from timeshare ownership at different stages of the purchase cycle

• to provide information that can be used to enhance the operation, and guide reforms to the marketing and management, of the Australian timeshare industry, and

• to inform government policy-making and regulation of the timeshare industry. The full program of research comprises three key studies, each of which examines customer value at a different stage in the purchase cycle: study 1 examines the views and experiences of non-owners of timeshare; study 2 explores similar issues among people who have recently purchased timeshare; and study 3 focuses on longer-term timeshare owners. The studies are to be undertaken concurrently. Each study has three aims: (1) to develop and test a reliable and valid instrument to measure relevant forms of value, (2) to collect data that allows the relationships of value to other key variables to be determined, and (3) to provide data for use by ATHOC and other stakeholders to enhance industry standards and development. Each of the three studies can be broken into several phases. See Table 1. Table 1: Overview of the Three-Year Program of Research into Customer Value.

Study

Research Phase

1: Non-Owners of Timeshare

2: Recent Purchasers of Timeshare

3: Long-Term Timeshare Owners

1 Qualitative Study of Non-owners

Qualitative Study of Recent Purchasers

Questionnaire Pilot Study of Owners

2 Qualitative Study of “Rescinders”

Questionnaire Pilot Study

Wave 1 Questionnaire Longitudinal Study

3 Questionnaire Pilot Study of Non-owners

Questionnaire Main Study

Wave 2 Questionnaire Longitudinal Study

4 Questionnaire Main Study of Non-owners

This report pertains to the first phase of Study 2, as highlighted in this table. The focus here is on consumer value when someone finalizes a timeshare purchase agreement and thereafter becomes a new owner of timeshare. These people have completed the purchase cycle. New owners were defined as people who had finalised timeshare agreements and had owned timeshare for a period of up to two years, non-owners have never purchased timeshare; and rescinders are people who first agreed to purchase timeshare but rescinded in the cooling-off period. 2.0 Aims of this Phase of the Research This first phase of Study 2 aims to ascertain the perceptions, opinions and experiences of new owners of timeshare towards timeshare and related products. Particular emphasis is placed on new owners’ perceptions that pertain to the likely value, or benefits, that are associated with timeshare ownership. More specifically, this phase of the research seeks to discover new owners’:

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• experiences of timeshare companies and, more particularly, their experiences of the sales process

• knowledge of timeshare and related products • reasons for transacting a timeshare purchase • perceptions of the extent to which they have derived each of fifteen different kinds of

value from timeshare ownership, and • general perceptions of the benefits and drawbacks of timeshare ownership. The aim is to provide insights into the range of views held by new owners, rather than attempting to quantify the frequency or prevalence of these views. For this reason, qualitative rather than quantitative research methods were employed at this stage. Researchers used both individual questioning and focus groups with this category. Dominant themes were identified successively across participant comments. These themes then formed the basis of the findings of this report. While not necessarily representative, the findings have generalisability due to the soundness of the qualitative research design and processes used. At the outset, it must be noted that the participants in this study were purposively selected for participation in this study because of their recent purchase of timeshare. As such, it can be anticipated that their views of timeshare are likely to have seen value in purchasing the product recently, and may thereby be similar to those who purchased in the more distant past (Study 3). 3.0 Approach to Data Collection Data collection for this phase of the research was based on a focus group and individual interviews. The focus group was held in March, 2007 and conducted on the Gold Coast, Queensland, Australia. The focus group was moderated by a member of the research team experienced in qualitative research techniques. A moderator’s guide was used to guide discussion (see Appendix 1 for an example). The focus group discussion lasted approximately 90 minutes. The discussion was audio-recorded with participants’ consent and later transcribed for analysis purposes. A total of seven individuals were interviewed between March and April 2007. Interviews were conducted by telephone, and focused on participants residing in Queensland, Australia. A moderator’s guide was used to focus interview discussions (see Appendix 2 for a sample guide). The duration of each interview ranged from 15 to 30 minutes. Interviews were audio-recorded with the participant’s consent, then later transcribed for analysis purposes. In line with Griffith University ethical guidelines, the research was conducted with participants’ informed consent. Participants were advised that their involvement was voluntary and that they could withdraw at any time. All participants were offered an incentive to participate in the research in the form of free entry in a prize draw. In line with the briefing provided to participants, individuals were not identified. Rather, each participant was assigned a reference number. All participants in this phase of the research had purchased timeshare. Names of potential participants were sourced from timeshare companies’ databases. Table 2 gives details of the gender and age breakdown of the sample of 11 people who participated in the focus group and the seven people who were interviewed by telephone.

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Table 2: Gender and Age Breakdown of Interviewees and Focus Group Participants.

No of participants Group Female Male Age

Interviewees (new owner)

6

1

7 x 40-49 yrs

Focus group participants (new owner)

6

5

1 x 30-39 yrs 1 x 40-49 yrs 6 x 50-59 yrs 3 x 60-69 yrs

TOTAL

12

6

1 x 30-39 yrs 8 x 40-49 yrs 6 x 50-59 yrs 3 x 60-69 yrs

Further background on participants Each of the interviewees, who participated in the interview component of this research provided some background information. This has been collated and presented here to provide further context to the interviewees as well as their commentaries, if and when they are quoted in this report. Interviewee 1 Interviewee 1 is a middle-aged female. She is married and has 5 children. She purchased a points-based timeshare system in 2006. Interviewee 2 Interviewee 2 is a female owner of a points-based system (bronze membership). She originally wanted to use her membership to go overseas, but this was not possible. She has since used her points to stay in Sydney. Interviewee 3 Interviewee 3 is a married female, who has recently moved from Tasmania to Queensland. She has three children (two of whom are teenagers). At the time of interview, she had owned a points-based system for just four months, but had not yet used it. Interviewee 4 Interviewee 4 is a female of unknown age with a partner and a 21 year old daughter. She has lived on the Gold Coast for 25 years. She has owned her points-based timeshare for nearly two years. Although she has not yet used it, she has booked accommodation in Spain for September 2007. Interviewee 5 Interviewee 5 is a female, married with four children. Two of the children are of school age and two are adults. She has been living on the Gold Coast for 12 months, since moving from Northern N.S.W. She purchased a points-based timeshare system in November 2005. She used

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timeshare points to stay in Brisbane overnight, but has not used it for a long holiday yet as she and her husband work in different industries and find it difficult to holiday at the same time. Interviewee 6 Interviewee 6 is a married male with children. He purchased points-based timeshare almost a year prior to interview. He has not used it yet as he says he has not had the time. Interviewee 7 Interviewee 7 is a married female with four children. She has owned timeshare for approximately one year, and has used it to stay in two places in Western Australia. 4.0 Findings This section of the report presents the findings from one focus group of 11 new owners and interviews with seven new owners. Unless specified, similar comments were made in both focus group and interview discussions. 4.1 New Owners’ Experiences with their Timeshare Ownership Although the number of interviews with new timeshare owners is limited and only one focus group was conducted, the findings will support the development of the quantitative study of this owner group. Within the focus group and the interviews, the usage of timeshare was limited. The new owners interviewed can be categorised into the following four groups regarding their experience with their timeshare ownership. New owner with no experiences This new owner group has not had any experience with their timeshare ownership and has also not tried to do any bookings. Generally, these interviewees agreed to almost all 15 values of owning timeshare as noted in Appendix 5. One interviewee commented on regretting having bought timeshare as they felt they could not trust the timeshare company. New owner who tried to book unsuccessfully New owners who tried to book a timeshare holiday with no success commented on their disappointment:

“Umm, I guess just recently I tried to book something before our (-work scenario) changed and the…it wasn’t available and yet I was looking at it, you know, 4 or 5 months before hand, so that sort of was a bit disappointing. The availability. Umm…” (Interviewee 5)

Members of this group, however, were generally looking forward to using their timeshare ownership. New owner who booked successfully, but not yet used A third group of new owners had booked successfully, but had not yet used the product. For some of these, availability was an issue:

“I think availability is one of the biggest issues. We’ve actually booked, we’ve got to book in May, June. We’ve got a week booked in Spain but we tried to organise a couple, a week or so in either South of France or Sicily.

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But there was just nothing available. ([Male] nothing …” (Female focus group attendee)

Alternately, several others had booked successfully and were pleased with the booking experience, which was through an exchange company:

“We’re about to use our…our umm…we have an exchange organized for September, through exchange company. You umm, deposit your points and then you get…you can, you know, umm, apply for a week or…in an apartment somewhere and that’s confirmed in Spain, that’s a one bedroom, arhh, apartment in Spain” (Interviewee 4)

New owner with first experiences New owners’ first experiences with their timeshare ownership were reported ambiguously. While the experience with the actual timeshare product was mainly positive; negative comments were made with regard to lack of booking flexibility or to their timeshare company’s attitude regarding complaints:

“when I want to use [my points], it doesn’t work very well for me because the time that I ring is always the peak season. Cause I work. … And what I have been finding is that looking at the ah....a lot of the websites, like the ‘wotif’, or the last minute accommodation kind of thing.....they offer....you know a very cheap accommodation for the last minute, and it’s sometimes I’ve found that suits me better because......For me, the [timeshare] membership that I have has not worked.....I am not utilising it.....it’s full benefits.” (Interviewee 2) “And I wrote [a complaint] to [timeshare company] and they said oh like, it wasn’t one of theirs, it was just associated with them. And they sent it onto [timeshare company’s] other section. And they were going to email the hotel and so far we’ve heard nothing more, and that was over a month ago. So as far as timeshare, yeah, I’d be cautious if I was to get back involved.” (Interviewee 7) “Ah, we went to a place in WA, down the lower part of WA, and we had a really good time there. So yeah, timeshare’s, I’m sort of half and half, like yeah, it’s OK. It’s probably not something I’d go into again. If I had the choice again, it’s probably something I’d steer away from.” (Interviewee 7)

In summary, those who were happy had had success early with being able to secure a booking in regions desired. Some had used bonus time but not timeshare per se. Those who were unhappy had come to the realisation that they were unlikely to obtain a holiday booking in the period and/or place desired. Those who had poor experiences were likely to want to sell the product but realised this was not feasible either. Further frustrations were associated with not being able get anything unique or interesting (this may be an inventory issue). Additionally a less than positive experience was associated with a poorly maintained property. Some participants reported that the product is not what the sales people told them it was and others (friends, solicitor) said that is how timeshare companies operate. For one participant, a good experience of exchange was easy and worked out well with an apartment in Spain. In a less favorable experience, the new owner found they could not get times or accommodation when they wanted it and compared the timeshare product unfavourably to online accommodation sites such wotif, needitnow, hotels, zuji. Overall, it seems that people are either happy or unhappy depending upon early experiences.

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4.2 Timeshare purchase and use Based on focus groups and interviews, reasons why people buy timeshare are the overall value of the product, they view themselves as “that sort of person”, timeshare is a match to their lifestyle needs or it is due to a comparison of timeshare values to other products. Reasons voiced why timeshare was not being used were associated with timeshare being a mismatch to lifestyle needs or they did not see themselves as “that sort of person”. Why Buy Timeshare? Why did new owners purchase timeshare? There were a number of reasons. These reasons have commonality with reasons noted by non-owners for buying and not buying timeshare in Report 1.1 (see pages 16-21). The reasons for buying timeshare clustered around similar themes outlined in Report 1.1. Those themes were: 1. New owners being the sort of person who would buy timeshare 2. Timeshare ownership matching new owners’ lifestyle needs 3. Timeshare values bettering other product values 4. Perceived better overall value or goodness of the product. For an overview of reasons for buying, refer to Figure 1: Timeshare Purchase: Why Buy? Specifically, new owners’ purchases were made because: 1. I am that sort of person. For new-owners this was connected with timeshare being associated with older people, retired people, for people with time who don’t work full time, and for people who want to go overseas. 2. A match to lifestyle needs, particularly, knowing that you have a holiday every year. 3. Comparison of timeshare values to other products was associated with being able to go to places around the world. It was also related to timeshare versatility, swap-ability and provision of change to normal lifestyle routines. 4. Overall value of the product was perceived as being related to a saving in advance for a holiday as well as having been perceived as value for money when bonus points and exchanges were first considered. As part of the focus group discussion, participants were asked to reflect upon what factors might have convinced them to purchase their timeshare. It seems that the following factors had some influence:

• Having a holiday every year, including the “forced” nature of this • A certain flexibility of adding on points or combining with other people who own

timeshare • The spaciousness of apartments and that bedroom sizes of two or more rooms allows

for holidays with children • Bonus time in terms of additional weeks that can be purchased at cheap prices.

On this last point, there was a reasonable amount of discussion about the bonus time and how people might take advantage of this.

Timeshare: Why buy?

“I am that sort of person” -

personal motivations

Match to lifestyle needs -

availability, flexibility

Comparative values

Overall values – ‘Goodness’ of the

product

Places around the world

Versatility, swap and change

Saving in advance for

holiday

I am older

I have kids

Have to be told to have a

holiday

Know have a holiday each

yea

I have less responsibilities

r

Figure 1: Timeshare Purchase: Why Buy Timeshare? 8

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Timeshare: Why not using it?

“Not working for me as that sort of

person” - personal

motivations

Mismatch to lifestyle needs -

availability, flexibility

Timeshare values

Value of the product –

Goodness of the product,

Pressure to buy

Get same advantages on

websitesResorts are in locations

similar to own (GC)

Get the same or better value with other holidays

Resale value

Not value for money

No advantage in specials

Can’t access when want

Not know how to use “effectively’

(training)

Two weeks or points to bank but accrue for what if

can’t use? For people

who need to be organized

For older people

For retired people

Restrictive choices and

o tions

Too expensive

p

Advance bookings vs. spontaneous

access

Hidden costs

For rich people

“Doesn’t offer what I want”

For people with more flexibility

Too old now

For people with time and don’t work too

Figure 2: Timeshare Use: Why Not Using Timeshare?

Why Not Using Timeshare? People made the following thematic commentaries, regarding why they were not using their timeshare: 1. “Not working for me as that sort of person” because I am too old and/or, not retired. There are added costs, which means you “need to be rich”. You need more time as well as lifestyle flexibility to take advantage of the product. 2. A mismatch to lifestyle needs primarily focused on the difficulty of accessing resorts at preferred time and places, and not knowing how to use the product effectively. 3. Comparison of timeshare values to other products. After purchase, a number of new owners were concerned that the product was not value for money, that it was too expensive and that there were hidden costs that they had not been informed about in the seminar session and that resale value was questionable. 4. Overall value of the product was questionable for some. Several new owners had undertaken comparisons, and/or sought advice and had discovered that other products were more flexible, cheaper, available and accessible. Refer to Figure 2: Timeshare Use: Why Not Using Timeshare? In addition, some focus group members mentioned the ease (or lack of) with which information about availability might be accessed could be instrumental in being able to use the newly purchased product. As one female focus group member mentioned: “I may have misunderstood when we went to the thing [seminar] but I thought they would have sent out an availability list every month. We only had one.” (Female, focus group attendee) Another commented that lack of access to the Internet made it difficult to access bonuses: “…and because you see, we’re not on the Internet we can’t look it up…” (Female focus group attendee) Both Figures 1 and 2 in this report have been presented to enable comparison with Figure 2 and 3 in Report 1.1 Non-Owners (see pages 18-19). Elements that appear in Report 1.1 but were not mentioned by New Owners have been removed from each of the figures in this report. 4.3 Seminar Experience In the course of the conduct of the focus group and during interviews, a number of people commented on their experience of their timeshare purchase; most of these focused on the presentation of the product phase over other phases noted below. Those phases include:

1. Recruitment – pre-seminar 2. Presentation of the product 3. Sales process 4. Exit experiences

These phases also appear in Report 1.1 Non-owners. In overview, some new owners commented on feeling pressured to buy, others commented that they had positive seminar experiences. Comments were also made about a mismatch between seminar commentary and post-purchase experiences regarding product availability and flexibility. Several noted that they attended seminars because of prize offers. See Appendix 3 for an extended discussion of comments made by new owners who participated in this research.

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4.4 Knowledge of Timeshare The focus group sessions revealed that participants tended to demonstrate a lack of knowledge of how systems worked and what happened with regard to point accrual, usage, time limits for usage and loss of points. In addition, a majority indicated that they did not know how to best leverage usage of timeshare for their own advantage. As with some participants in the non-owner study, despite having attended seminars, receiving and having access to support materials, there were limited knowledge bases regarding the nature and operation of timeshare as a tourism product. Within the interviews, three new owners expressed knowledge or an understanding of timeshare while four indicated that they had limited knowledge. See Table 3 below. All were able to provide descriptions or definitions with regard to timeshare. Table 3: Levels of Knowledge about Timeshare. Yes No Limited Total Knowledge of timeshare and/or holiday ownership

3

0

4

7

Focus group attendees and interviewees were asked to describe what they understood timeshare to be. There was a greater knowledge of timeshare associated with newer options with holiday ownership and points systems as opposed to more traditional purchases of weeks of accommodation. When asked to give details of what they knew about timeshare, descriptions by interviewees who had attended a seminar could be grouped into six categories or contextual frames: accommodation; time; ownership; points; membership; and other ways of describing timeshare and holiday ownership. Appendix 4 provides an extended discussion on each of these frames used by focus group participants and interviewees in describing timeshare. 4.5 Knowledge of Others Who Own Timeshare Interviewees were asked if they personally knew any other timeshare owners. Two-thirds of the interviewees indicated they knew people who owned timeshare or holiday ownership. See Table 4 below. The people known to own timeshare were friends, family, and/or others. Table 4: Knowledge of Others who have Timeshare or Holiday Ownership. Yes No Total* Knowledge of others who own timeshare

4

2

6

(*1 out of the 7 interviewees did not comment on this) Most interviewees who knew someone (75%) had perceptions that these owners regarded timeshare positively. Those who believed that the owners held positive views commented that these owners “think it’s fairly good”, “love it”, and “utilized it”. One interviewee mentioned knowing people who owned timeshare in the past and commented on “they’ve either been bitten years ago with it… or they’ve heard [of] other people that have had bad experiences in timeshare”.

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4.6 Reflections on the Value of Timeshare Ownership Our previous research into owners’ perception of the value of timeshare identified eleven dimensions. As part of the current study, we asked our interviewees to reflect upon each of an expanded set of 15 value dimensions and to indicate whether they saw value in each of these dimensions. The following summary is based on the interpreted responses of the seven people who were interviewed individually. Although the focus group discussion was more unstructured, and responses were difficult to quantify, it revealed similar insights. Table 5 gives an overview on the number of interviewees who agreed and disagreed that each value dimension would be valued by them, as well as those who answered with less certainty. Table 5: Interviewees’ Reflections on 15 Dimensions of Value Associated with Timeshare. Value Agree Unsure Disagree Total Relaxation 5 2 7 Gift 4 1 2 7 Esteem/Status 3 4 7 Quality product 7 7 Flexibility 4 3 7 Fun 4 3 7 New experiences 5 1 6 Financial worth 5 1 1 7 Aesthetics 6 1 7 Social relationships 3 4 7 Family 7 7 Close friends 5 2 7 Convenience 6 1 7 Accessibility 5 1 6 Memories 4 1 5 Total 73 3 25 101

An extended discussion of the values of timeshare reported in focus group and interviewee commentaries appears in Appendix 5. During a number of interviews, several unprompted values were identified by participants prior to the interviewer focusing interviewees’ attention on values of timeshare. Unprompted values An analysis of the interviews revealed that there were unprompted values for new owners. These arose in the early part of the interviews, prior to the interviewer asking the respondent to reflect on the specified core values. However, many of these overlapped those values previously identified in the established owner research. Seven values were raised: the quality of the product; financial savings; exchange opportunity; maintenance of properties; flexible banking; new experiences, and facilities. Thus, these values might be seen as ‘top of mind’ values for the new owner group. As this is based on a very small number of interviews, it is not intended to be conclusive or representative but is something to investigate further in the quantitative phase of the current research program.

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Quality

“…just the quality of the resorts themselves and the furnishings and the facilities that they offer for what we look for as a family.” (Interviewee 5)

Exchange (and financial value)

“…we have an exchange organized for September … You umm, deposit your points and … apply for a week or… an apartment. And that’s confirmed in Spain, that’s a one bedroom, apartment in Spain, … so when you sort of think, you can do that sort of…that sort of thing, … its really, you know, sort of makes it worth while…because if you had … pay per night, in a, in a hotel or something, you would be looking at, easy probably, I would say around $300 Australian, with, you know, that’s with the exchange rate and its quite good value, when you, you know, when all you need to pay is the exchange [fee]. You just pay a fee to do that exchange [company]” (Interviewee 4)

Finance value

“Well, the fact that (um), we can have the accommodation that’s, like, so much cheaper.” (Interviewee 3)

Flexible banking

“Yes, so I mean you have a bigger choice of what you want to do. And the fact that you don’t actually have to take it this year, you can hold it over till the following year and then take a longer holiday.” (Interviewee 7)

New experiences

“…it’s great if you wanna sort of be able to say OK, I’m going to have a week in NSW this year and then next year I’m going to have a week in America or a week in Fiji or wherever the timeshare is. Yeah, it’s good in that respect that you can choose. Like, you don’t have to go to the same places each year like we used to years ago” (Interviewee 7)

Maintenance

“… Yeah, there’s no real upkeep to where you’re going to stay. You just go, have your week holiday and then sort of basically walk away. You don’t have to do anything to it. So yeah, I guess that’s an up side.” (Interviewee 7)

Facilities

“…swimming pools, kids clubs umm, you know child care facilities. It’s very rare for us to actually go out without the children. So, you know, that sort of thing is great.” (Interviewee 5)

4.7 Perceived Overall Benefits and Drawbacks of Timeshare Interviewees were asked to reflect on the main benefits and drawbacks associated with timeshare ownership. Figure 3 summarises the issues raised and the frequency with which each was mentioned.

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Family (3) Financial worth (3) New experience (2) Flexibility (1) Fun (1) Relaxation (1) Friends (1)

Flexibility (3) Company image/attitude (3) Life style (1)

Advantages - Disadvantages

Figure 3: Main Perceived Benefits and Drawbacks of Timeshare Ownership. The majority of interviewees referred to family and financial worth as being the main advantages of timeshare ownership. Furthermore, new experience and visiting places were also mentioned as main advantages.

“Having family and friends......at the holidays. And secondly, it’s being a long-term investment......we are having holidays in the future at today’s price.” (Interviewee 6) “…the financial side of things. …half of it’s already planned.” (Interviewee 5) “…savings, yeah, you know, the money value which, like I said, not a…not at the moment it doesn’t appear to be, but in the long term, umm, the amount of money that you will save in the accommodation, umm, yeah, definitely.” (Interviewee 4)

“probably that we, you know, we can go to different places, that was…that was one thing” (Interviewee 1)

A few interviewees also commented on flexibility, fun, relaxation and friends as being advantages.

“And (um), just the fun and the facilities and the enjoyment. (Um), and the fact that we probably would have more holidays than we had before because we’ve got that available.” (Interviewee 3)

Flexibility, however, was seen as the main disadvantage of the product. People commented on the availability of timeshare properties at locations they wanted or to the mismatch of lifestyle, with timeshare not being flexible enough.

“The only one that we’re wary of, because we’re from Tasmania, they’ve only got one available place to stay in Tasmania. But hopefully that will increase. That’s the only disadvantage.” (Interviewee 3)

“It’s not flexible for me because the flexibility that they offer really is that I need to be flexible based on the planning that they have made. Not on my lifestyle.” (Interviewee 2)

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Some interviewees also commented on their disappointment with their timeshare company’s failure to respond appropriately to complaints and with trying to sell more to new owners who had not used their initial timeshare investment.

“…I’m a little bit disappointed that I haven’t heard from anybody. (Um) you know when you pay so much money, you’d think that, if you do have any complaints whether it was their building or one that they’re … telling you, … to … take advantage of. (Um), that they at least [would] follow it up, ….” (Interviewee 7) “they keep ringing (-and asking us…) they’re wanting us to buy more, but you know and that sort of thing is a little…you know we haven’t even used it yet, so. I can’t trust them money wise (-) you know” (Interviewee 1)

5.0 Conclusions and Recommendations This qualitative study has yielded a wide range of insights into the views of people who were classified as new owners of timeshare. These people had been owners of timeshare for up to two years. Four recommendations are presented. 5.1 Summary of Findings Most of the new owners expressed an understanding of the timeshare product as involving accommodation and/or points. A majority of new owners indicated that in the purchase phase they felt pressured to buy. Several indicated that they had not experienced pressure and had a positive purchase experience. There was a perceived mismatch between seminar commentary and actual post-purchase reality – particularly with regard to availability and flexibility. Within their two years of owning timeshare, new owners had one of the following interactions with timeshare products: no experience in use of timeshare; unsuccessful booking experiences; successful booking experiences; and a first experience via an exchange or bonus points. Some new owners considered that they were the “sort of person” who bought timeshare. Such a person was older, or retired, or had flexible time for holidays. Timeshare ‘sort of person[s]” needed to be organised to take a holiday every year or see timeshare as a way to save in advance on holidays. Positive values of timeshare were associated with overseas travel, swap-ability, and versatility. Some new owners were not using their timeshare options because they thought themselves too old, there were unforeseen added costs, accessing the product required more time, and/or their lifestyle did not have the flexibility needed to access timeshare. New owners also indicated that they needed to know how to use the product better. When “compared to other products” and “overall value”, some new owners stated that cheaper holidays could be obtained online. There was a perception that that timeshare resale value was questionable.

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New owners tended to be divided with regard to the value of the product. Members of the focus group held more negative views as most attendees had tried to use their product and had been less than successful in doing so. Some interviewees had not yet attempted to use the product. Interviewees indicated that they derived value from the quality of the product, and from family, aesthetics and convenience dimensions of timeshare. Other value dimensions of timeshare positively rated were relaxation, new experiences, financial worth, close friends and accessibility. Value was not perceived to be derived from esteem/status or social relationships. New owners tended to perceive the disadvantages of timeshare as associated with long booking times, unavailability of resorts, and limited exchange options of the product. Reasons for new owners’ dissatisfaction with the product were linked to:

• personal circumstances • financial considerations • information exchange from seminar mismatch with post-purchase reality • perceived limitations increasing of the product over time.

Comparing new owners to non-owners and rescinders (see Report 1.1, Report 1.2), new owners like rescinders appeared better informed about timeshare but less educated about its operations in order to gain best value from it. New owners like rescinders were more appreciative of its quality, aesthetics, and other values, but more wary of its likely (in)flexibility. There is a need to conduct further research into the new owner group, with a view to identifying changes in value perceptions that occur post-purchase. 5.2 Comparison to Findings of Non-Owners (Report 1.1) and Rescinders (Report 1.2) This section outlines some of the similarities and differences of the views/perceptions held by new owners, non-owners, and rescinders. As noted previously, new owners were defined as people who had finalised timeshare agreements and had owned timeshare for a period of up to two years, non-owners have never purchased timeshare; and rescinders are people who first agreed to purchase timeshare but rescinded in the cooling-off period. See Table 6 on next page.

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Table 6. Comparison of Findings of New Owners (Report 2.1) with Non-Owners (Report 1.1) and Rescinders (Report 1.2). Similarities Differences • Respondents from all groups reported

that they disliked the “hard sell” tactics used in the sales seminars (although perhaps attitudes of this kind were expressed more strongly in the non-owner group)

• Members of all groups tended to agree as

to the dimensions from which they would get value (e.g. quality, aesthetics) and the dimensions from which they would definitely not derive value (e.g. esteem). If anything, the non-owners may have had slightly more positive views as to the value likely to be gained from two dimensions: flexibility and new experiences.

• Some new owners had conducted further research into timeshare post-purchase, however, this was to a lesser degree than non-owners and rescinders. More rescinders than non-owners reported having conducted their own research into timeshare (e.g. via the Internet or seeking informed advice).

• Knowledge of timeshare did appear to be

greater in the new owner and rescinder groups than among non-owners, which is to be expected.

• Four out of 7 new owners knew others

who owned timeshare. Less non-owners (15 out of 32 – 46%) than rescinders (25 out of 30 – 84%) knew someone who owned timeshare.

• Some new owners were not using

timeshare because they were finding that they were “not that sort of person”. Non-owners more frequently defended their decision not to buy timeshare in terms of “I’m not that kind of person”. Rescinders, in contrast, placed somewhat greater weight on the timing not being right for purchase, and/or referred to core product attributes.

• Flexibility was more often viewed as a

major disadvantage in the new owner and rescinder groups, and more often as a major advantage in the non-owners group.

• Less non-owners than rescinders rated

financial worth, quality, aesthetics and gift as major advantages of timeshare ownership. New owner numbers are not large enough to be compared here.

This list of similarities and differences suggests that new owners hold a number of similar perspectives to rescinders. In the post-purchase phase, new owners have become more concerned about the espoused attributes or benefits of timeshare. Out of their more thorough investigation of the product one critical dimension has emerged, namely, the availability/flexibility of the product.

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5.3 Recommendations 1. For new owners, there is a need for post-purchase seminars, online tutorials, and telephone follow-up. These would provide new owners with on-going support to leverage best use of the product. Additionally, recognition needs to be given to different ways that people learn and like to be contacted and supported. This means tailoring such contacts differently for each owner. Moreover, contact needs to be monitored as there were both comments made about timeshare contact being too frequent, such that it was perceived as “over-contacting/servicing”, as well as not enough contact being made about bonuses. 2. Timeshare companies may need to consider ways to differentiate their product from similar product purchases available online. There is a strong perception among new owners that they could have saved money and purchased a wider range of holiday products, which were more flexible and better, using internet providers. 3. Strategies that can be devised to help new owners get an early success in exchanging the product or booking a holiday will most likely lead to satisfaction and positive word of mouth. 4. There is need for a more extended study to determine the generalisability of the current findings to the broader group of new owners. Such further research could benefit from use of the four-fold classification of new owners introduced in the current study. This last recommendation will be addressed in the quantitative phase of the project.

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Appendix 1. Sample Focus Group Moderator Guide

VALUE PROJECT 06-09

STUDY 2: TRANSACTION VALUE GROUP 2A: NEW TIMESHARE OWNERS

WEDS 14 MAR 07, GC ARTS CENTRE, GAYLE JENNINGS MODERATING

MODERATOR’S GUIDE Objective: to gain a deeper understanding of how participants view timeshare (positive or negative), how one can derive value from the product, the detractors of the product, and how the views of non-purchasers differ from purchasers THIS IS A GUIDE ONLY; PROBE AS APPROPRIATE TASK TIME

(APPROX.)

Formalities/Ethics

⇒ Consent form signed ⇒ Give out prize entry forms & envelopes ⇒ Distribute $10 travel re-imbursement ⇒ Draw prize for $100 Myer gift voucher

On arrival

General introduction Thank you for coming along tonight and participating in this research. My name is xx and I’m a researcher from Griffith University. Tonight I’d like to discuss your views on timeshare. We understand you are all new timeshare owners and are interested in hearing your views on timeshare since you have signed up. A few ground rules before we start:

⇒ There are no right or wrong answers, it’s your opinions that count. ⇒ We are interested in everyone’s views so please give everyone a chance

to have their say. ⇒ That said, participation is voluntary so please only participate if you feel

happy doing so. ⇒ Lastly, as the session is being recorded (you should all have signed the

consent form), please speak up and speak one at a time. SWITCH ON RECORDER. Before we start, I’d like everyone to introduce themselves and perhaps say a little about themselves…

5-10 mins

Warm up

• Firstly, can you tell me what you know about timeshare, and whether you

15 mins

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know a little or a lot about timeshare.

• When someone says “timeshare”, what things pop into your head? o PROBE: why is that? o SUMMARY: whether more +ve or –ve comments and whether

everyone agrees

• How long have you owned timeshare? • What have been your experiences so far?

IF NECESSARY:

Give a brief description of what timeshare is, e.g. buying holiday time for life (or an extended period of time), either in week lots or buying points and exchanging them for holidays or leisure products

Deriving value from timeshare The wider scope of our research deals with the positive and negative aspects of timeshare. I’d like to discuss the positive aspects first. Previous research we have conducted has identified certain values or benefits in owning timeshare.

• What sort of value or benefits do you think people get from owning timeshare? What do people get out of it? Why did you buy into it?

o PARTICIPANTS TO DISCUSS IN SMALL GROUPS o IN LARGE GROUP, PARTICIPANTS REPORT BACK

CHECKLIST – Discuss value concepts if not already mentioned – “Do you see any value in …” or “Other people have mentioned … as something they value from using their timeshare. Do you see any value in this?” 1. Relaxation – being able to relax and recuperate while on holiday; forces you to relax; guaranteed a holiday every year for life

2. Gift – being able to give holidays as a gift to others

3. Esteem/Status – proof of one’s social class identity; sense of pride/ achievement in owning timeshare

4. Quality Product – high standard of accommodation

5. Flexibility – build up weeks/points for one long holiday; exchange points for other products

6. Fun – use of facilities such as gym, sport facilities, golf course, tennis courts, canoe and jet ski

7. New Experiences – and new cultures

8. Financial Worth – pre-paid holidays; future holidays at today’s prices; value for money

9. Aesthetics – beautiful, scenic locations; attractive apartments/grounds

10. Social Relationships – make new friends; catch up with people

11. Family – spending quality time with one’s family

25-30 mins

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12. Close Friends – spending quality time with friends

13. Convenience – close to local shops, restaurants, theme parks, onsite facilities

14. Accessibility – located within easy driving distance; easy to organise; facilities and services match my/my family’s needs

15. Memories – last on after holiday has finished

IF SEE NO/LITTLE VALUE IN TIMESHARE:

• Why not? What specifically gives you a bad impression? EXPLORE DETRACTORS

SUMMARY EXERCISE

• Of all the benefits of timeshare that we’ve discussed (summarise), which one or two stands out the most?

• And of all the disadvantages, which one of two stands out the most?

Summary/wrap-up That concludes our discussion on timeshare. Thank you for your participation. Before we finish, are there any further comments or questions?

5-10 mins

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Appendix 2. Sample Interviewer Guide

ARC VALUE PROJECT 06-09

GUIDE FOR TELEPHONE INTERVIEWS – New owners – Group 2a Objective (for interviewer information only): To gain a deeper understanding of how participants view timeshare (positive or negative), how one can derive value from the product, the detractors of the product, and how the views of non-purchasers differ from purchasers THIS IS A GUIDE ONLY; PROBE AS APPROPRIATE

GENERAL INTRODUCTION/ FORMALITIES/ ETHICS [Ask for named contact on list] Good morning/afternoon/evening my name is ... and I'm calling from Griffith University on the Gold Coast. I’m telephoning to conduct an interview with you on timeshare/holiday ownership, which you recently indicated you were willing to participate in. Are you ready to start now?

First, can I check that you haven’t worked in timeshare: Ensure the interviewee hasn’t worked in timeshare sales or call centre in the last 4 years. If they have we cannot continue. Before we start the interview, there are a few formalities I’d like to notify you of: I just need to run through the consent details for this interview…

Consent: By participating in the interview, you are indicating your consent; You understand that your involvement in this research will include the participation in

a 15-20 minute telephone interview; Your participation in this research is voluntary & you can stop at anytime You can contact the Manager, Research Ethics, at Griffith University Human

Research Ethics Committee if I have any concerns about the ethical conduct of the project (if requested give details- on 07 3875 5585 (or research-ethics@griffith.edu.au);

Do you agree to participate in the project? As a participant in this study, I would like to inform you that:

This research project aims to develop a better understanding of ‘value’ that consumers might derive from a timeshare ownership;

The research is funded under the Australian Research Council Linkage Scheme. Feedback as to the outcome of the study is available to you if you request it (take

contact email if they want information and record on a sheet of paper. Prizes: Include 2 x $100 Myer gift vouchers. All interviewees are eligible to win the Myer

vouchers (approximately 40 entries). We will enter all telephone interviewees’ into the prize draws, unless you tell me not

to do so. • The prizes are drawn at 10am on the 27 April 2007 at Griffith University, Gold Coast

Campus, Queensland, Australia.

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• The winner for each of the three prizes will be notified within seven days of the draw. The prizes will be mailed out to the winner.

Can I check you want to go in the prize draw? If yes, write name and number on the prize slip.

Let’s get stated: I am going to tape record the interview (check is OK; explain will be used to

transcribe data, not identify anyone, destroyed at end of project)

No right or wrong answers, it’s opinions that count SWITCH ON RECORDER. Thank you for agreeing to participate in this research Before we start, perhaps you’d like to tell me a little bit about yourself [maybe the suburb/place you live, how long you lived there, family situation, leisure interests]… WARM UP Let’s talk about timeshare (holiday ownership) now.

• First, can you tell me what you know about timeshare, and whether you know a little or a lot about timeshare or holiday ownership.

• When someone says “timeshare” or “holiday ownership”, what things pop into

your head? PROBE: why is that?

• I understand you purchased timeshare/holiday ownership recently – is this the case? How long have you owned timeshare/holiday ownership?

• What have been your experiences so far?

• Do you know anyone else who owns timeshare? What do they think about it?

• Based on your experience to date, is it the sort of product you would

recommend to others? Why? Why not? IF NECESSARY – should not be needed for new owners:

Give a brief description of what timeshare is, e.g. buying holiday time for life (or an extended period of time), either in week lots or buying points and exchanging them for holidays or leisure products

DERIVING VALUE FROM TIMESHARE The wider scope of our research deals with the positive and negative aspects of timeshare. We’ve discussed some of the negative elements, now I’d like to discuss the positive aspects. Previous research we have conducted has identified certain values or benefits in owning timeshare.

• What sort of value or benefits do you think people get from owning timeshare? What do people get out of it? Why do people buy into it?

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CHECKLIST – Discuss value concepts if not already mentioned – “Do you see any value in …” or “Other people have mentioned … as something they value from using their timeshare. Do you see any value in this?” 1. Relaxation – being able to relax and recuperate while on holiday; forces you to relax; guaranteed a holiday every year for life

2. Gift – being able to give holidays as a gift to others

3. Esteem/Status – proof of one’s social class identity; sense of pride/ achievement in owning timeshare

4. Quality Product – high standard of accommodation

5. Flexibility – build up weeks/points for one long holiday; exchange points for other products

6. Fun – use of facilities such as gym, sport facilities, golf course, tennis courts, canoe and jet ski

7. New Experiences – and new cultures

8. Financial Worth – pre-paid holidays; future holidays at today’s prices; value for money

9. Aesthetics – beautiful, scenic locations; attractive apartments/grounds

10. Social Relationships – make new friends; catch up with people

11. Family – spending quality time with one’s family

12. Close Friends – spending quality time with friends

13. Convenience – close to local shops, restaurants, theme parks, onsite facilities

14. Accessibility – located within easy driving distance; easy to organise; facilities and services match my/my family’s needs

15. Memories – last on after holiday has finished

IF SEE NO VALUE IN TIMESHARE:

• Why not? What specifically gives you a bad impression? SUMMARY EXERCISE

• Of all the benefits of timeshare that we’ve discussed (summarise), which one or two stands out the most?

• And of all the disadvantages, which one or two stands out the most?

SUMMARY/WRAP-UP That concludes our discussion on timeshare. Thank you for your participation. Before we finish, are there any further comments or questions?

25

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Appendix 3. Extended Discussion of Seminar Experience Examples of comments highlighting responses to each phase of the seminar experience follow below. 1. Recruitment – pre-seminar A variety of strategies were reported by focus group participants regarding recruitment processes used. These included winning holidays:

“… we won, you see, we won a holiday… and they said to get your holiday, you have to go to this seminar (a few people agreeing saying yep) … there was only three like there was only 3 people [and] it wasn’t in a room full of people. … Ours was just a little meeting.”(Female focus group attendee)

A number noted that they had won prizes as a recruitment strategy:

“I won the prize.” (Female focus group attendee) “We won a camera.” (Male focus group attendee)

And that: “If you don’t go to the seminar you lose the prize ….” (Male focus group attendee) “You had to attend the seminar and then [you] got a DVD (laughs).” (Male focus group attendee)

2. Presentation of the product Some focus groups indicated that they experienced pressure during the sale as was demonstrated in this focus group exchange:

“About that, was the pressure on you to, to buy it…?.” (Female focus group attendee) “(Butts in) I agree, I agree, absolutely.” (Female focus group attendee) “That was pretty strong but they, I mean, we said look ‘we want to go away and have a cup of coffee and [we] spent about 2 hrs in the café. But it was alright, we did it all in the one day. But I think the extra, you know, double the points plus the 2 for 1 cruise [influenced us].” (Female focus group attendee) “The pressure was on, you had to do it to…that day or the deal’s off sort of thing, yeah.” (Male focus group attendee) “Or the points will go up or you know or … the cost…” (Female focus group attendee)

Not all focus group participants, however, felt that they were pressured to buy. A number indicated that there was time to think, as the exchange below shows:

“… and I mean even when we were through, cause I have to admit they were really patient, they gave us time to think.” (Female focus group attendee)

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“They dragged it out.” (Male focus group attendee) “I mean we, we, you know and I (words incoherent) and I don’t think at anytime we felt pressured to buy ….but they gave us time to think about it, work out our figures ummm….” (Female focus group attendee)

On the other hand, interviewees who commented about the seminar or recruitment experiences noted that they liked the experience and the demonstration of the product that was to be purchased.

“… with the purchase itself umm, there was…I guess, it was something that we…we wouldn’t normally put ourselves into, but there was like the offer of, you know, a dinner or something like that, so we thought, ‘oh well we’re up here, why not go and do it?’ The kids are being looked after umm, so it was a group sort of presentation… And umm, we liked what they offered umm, very genuine, very good people and umm, we decided to go with it, I guess because we find it hard to save for a holiday. So if we were to save for a annual holiday…, so paying something, cause we’re actually paying it off, paying something off on a monthly basis was easier for us and be able to have a 4 year loan. Once that’s done we don’t have to worry about it.” (Interviewee 5)

“We went along to a seminar umm, that was held at a resort/hotel, here on the Gold Coast and umm, they…we went, we sort of sat through it, like a presentation, a video presentation umm, and they also talked about it and gave us some folders or brochures on the umm, on the properties. Umm, they also showed us through one of the properties that you can stay at, if you become a member. They took us up and showed us the, the room. The style of accommodation that you would get. Umm, which was really good and we got to see, you know, the type of accommodation that you would be staying in, … Obviously they wouldn’t be ALL like that, …” (Interviewee 4) “ …we went along, we really liked it and we said yes.” (Interviewee 3)

3. Sales process of information exchange Experiences of sales interactions varied between participants attending the focus group.

“Yeah we basically had a one on one with the sales man.” (Female focus group attendee) “…but arhh, we went in as a group first to see and view all the umm, shares and everything before we went out to the sales people …” (Female focus group attendee) “Main group and then broken up into smaller groups.” (Female focus group attendee)

And as previously noted:

“… there was only three like there was only 3 people it wasn’t in a room full of people.” (Female focus group attendee)

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For interviewees, information on timeshare experiences and opportunities presented at the seminar proved to be difficult for some new owners to actualise:

“that’s the thing, they advertised all this availability and all these things but it depends on the season and then it depends on, you know, the, the, you might not have a certain place at a certain time, you know so it was what was there is what, what’s available or it depends on where you want to go.” (Female, Focus group attendee) “what really caught us is the bonus times cause we weren’t going to do it with just the points. We thought well that’s just not enough because you need to, you pay $500 insurance in, its like having car insurance you pay that and we thought well we can have a week’s holiday. You know that’s a week’s holiday in a sense and that didn’t sell us. And when we saw the bonus times, we went well, well, this is that little bit extra. And it’s a cheaper holiday and you don’t have to use your points. You can just go and it is cheaper and go (everyone agrees). But, arhh, they kept going oh there’s all these things, there’s all this availability. And we’ve been going on and checking because we do have the internet and we go and check all the time. You know, you just go and check what’s available and what not and it just depends on the time of the year and you also got to be careful of flights because flights, you know, aren’t going to be, you know as cheap for that time. So, its trying to work all that out as well. So, that’s what caught us. But then after we started looking we thought ……it’s not as ……what it seemed to be.”(Female, focus group attendee)

“Well, when we, when we originally went and you know, they show us everything and they talk you through it and everything. And uh, we signed what I….what was explained to us on the night. When we took it to uh, a solicitor some time later, when we were consolidating everything, umm, you know all our finances and stuff. He said what they had told us was incorrect and it was actually not what they said and it was going to cost us far, far more than they had originally told us. … So umm, my husband has since worked with a girl that used to work for them and she said ‘Yeah, they’re very dishonest, they say whatever they like to say, to make a sale’. So I was very unhappy. I am still unhappy with it. You know, you’re pretty much stuck with it, hey.” (Interviewee 1)

“Because I just haven’t had a good experience you know.....so far...you know, it started bad when I lost the overseas trip. Um....and I ended up at [a local resort]. Because when I bought it, when I signed in I told them I don’t want to go to a location on the Gold Coast because I have been there before. I love the place, but hey, I want to go somewhere I have never been. Right....and they said ‘yes, not a problem’.....Although there’s a lot of fine print in there on the conditions that this could change, right....This could change. But you think they would not change it just like that. The reason they gave was because there is no site overseas, One choice is not taking any more guests and they’re likely not to take anymore guests ever. I wanted to reschedule, I wanted to make a booking at a later time [but I couldn’t].” (Interviewee 2)

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Appendix 4. Extended Discussion of Knowledge of Timeshare Type of Understanding of Timeshare # 1: Timeshare as Accommodation Several focus group and interview participants indicated that they understood timeshare to involve some form of membership for accommodation. Examples of comments that illustrate this conception of timeshare are:

“And you can use the points, you might want a two bedroom or one bedroom. You can break those points up and still. Well, you could probably get two weeks or three weeks depending on how you stretch it out for…how many sort of … .Rather than saying you only got one week ….At least you can actually buy more out of it, I think.” (Male focus group attendee)

“… you’ve bought into…an idea that…what we pay a certain amount of money umm, and then we get points for and we use those points, arh, they accumulate every year. So we use those points to book our accommodation umm, that we don’t have to pay anything for, if we choose to do it that way umm, and that we can do that for the next 80 years.” (Interviewee 5)

Type of Understanding of Timeshare # 2: Emphasis on Time A second concept or frame that emerged from the interviews was that of time. Interviewees referred to different sorts of time in reference to timeshare. For example, one or more interviewees mentioned that they thought timeshare involved each of the following:

• Purchasing weekly sets of accommodation • Old fashioned concept – weeks of accommodation in a place each year • Points for weeks.

Below are two examples of timeshare and holiday ownership commentary that illustrate the concept of time:

“I think accommodation. It’s owned by the company,… . And then um....like there would be some (-) for example, like some getaway thing. You can ask about if there’s a week there or a week there. That kind of thing. You can book accommodation.” (Interviewee 2) “….units that are…you know, you go once a year in…like a holiday destination.” (Interviewee 1)

Type of Understanding of Timeshare # 3: Emphasis on Ownership In articulating their understanding of timeshare, interviewees often referred to the notion of ownership. There was a sense, whether it was weeks or points, that timeshare meant owning something over the long term. For example, some interviewees commented that timeshare involved:

• A number of people jointly paying off a unit, which buys a specific time period of usage of that unit.

The following illustrates the kind of comments that were included in this frame:

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“It’s just basically a lot of people sharing the same unit so whatever time they buy in, a week or 2 weeks a year, and everyone just puts in money and basically instead of one person paying it off, there’s a series of people paying it off. And that’s about it.” (Interviewee 7) “… basically timeshare we understand from our idea it’s kind of like a......a joint ownership of ah.....the various members who share the same accommodation at different slots of the year. Yeah.....that’s our basic understanding of it.” (Interviewee 6)

Type of Understanding of Timeshare # 4: Emphasis on Points Another frame of reference identified by the interviewees and discussed in the focus group was that of owning a product that constituted a “points” that could be used for accommodation, or something else).

• Points and holiday ownership. Examples of commentary illustrating this way of understanding timeshare is:

“There’s a points type and there’s a weeks type.” (Female focus group attendee) “…it’s the holiday ownership one, I think, where you get points and that. I don’t know a lot about it.” (Interviewee 3) “… we pay a certain amount of money, umm, and then we get points for and we use those points for and we use those points, arh, they accumulate every year. So we use those points to book our accommodation, ummm, that we don’t have to pay for anything for, if we choose to do it that way, umm, and that we can do that for the next 80 years.” (Interviewee 5) “You, umm, deposit our points and then you get … you can, you know, ummm, apply for a week or in an apartment (-somewhere) and that’s confirmed.” (Interviewee 4)

Type of Understanding of Timeshare # 5: Emphasis on Membership Focus group participants tended to centre their comments on membership elements, and some interviewees also mentioned the concept of membership:

• Membership and exchanges. “… (- with your membership too) yeah, we’re we wanted to go…arhh, I don’t know, somewhere where there was no properties, … there was none of those properties, but we were going to a particular area, well then we could still get accommodation … they would have to be… properties that were … entered into the Timeshare…, you know, industry. Like some more are like smaller type resort style. So you still can get accommodation and you will do like an exchange in that regard. For instance, if it was like…Northern N.S.W somewhere umm, and there was a property there that they had their umm you know, their accommodation listed with umm, Timeshare, well then, because we’re within the Timeshare umm, company, we’re entitled to ask for an exchange, through that…through that…” (Interviewee 4)

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Type of Understanding of timeshare # 6: Other Ways of Understanding Timeshare Several other ways of understanding timeshare were mentioned – albeit less frequently - by the interviewees. Some of these key terms or frames are elaborated in other parts of the report. They include:

• Money • Expensive • Restricted usage • Hard sell • Reputation • Lifetime concept.

Examples of comments not included elsewhere relate to reputation and lifetime concept: Reputation:

“... timeshare was just one of those things years ago, people used to buy into and then get burnt. So yeah, it’s probably not one of my favourite things I like to hear at the moment. It’s probably what put me off so many times before this. But actually my husband now, it was his decision, not mine, actually buying the timeshare.” (Interviewee 7)

Lifetime concept:

“We haven’t had enough experience. The only thing I can recommend is that this investment is not for one day but it’s … a long period of time…In the long-term because it’s a life-time membership.” (Interviewee 6)

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Appendix 5. Extended Discussion of the 15 Values

Value # 1: Relaxation We asked interviewees to reflect upon the value dimension of relaxation, which was introduced as: “being able to relax and recuperate while on holiday; forces/motivates you to relax; guaranteed a holiday every year for life”. In this appendix, where germane, several focus group commentaries have also been included. Relaxation was important for most interviewees. Some disagreement with this value was referred to with regard to the inflexibility of the product. People who disagreed also did not see value in gift, esteem or status, or social relationship. However, these interviewees still saw value in the quality of the product, convenience and accessibility.

“…if we wanna have a holiday, we can just say, right let’s go do it. And yeah, I just think it’d be, we’d probably have more holidays than we would before.” (Interviewee 3) “…it makes you have the holiday. I think that’s sort of unique, like where as you can go through a year really easily and say you know you haven’t done a holiday and that - because you are busy with everything else. This way you think, (saying this with stress) Oh goodness, I’ve got to do something here. You know, and all this money, so, it makes you at least have that and if that’s good for your well being then that’s an advantage in that.” (Female, Focus group) “…you need to use it when it’s off-peak. You know maximise your points. But I mean, even if I have to do that, that means I’m being guided by when it’s off peak, not when it suits my work, or my life.” (Interviewee 2)

Value # 2: Gift Interviewees reflected on the value dimension of gift, which was introduced as: “being able to give holidays as a gift to others”. Giving timeshare as a gift to others or being able to will it was commented as a plus by more than half of the interviewees. Interviewees who disagreed tended to see no value in social relationships, albeit that they did see value in family relationships.

“Yeah, I would agree with that. The fact that you can pass it on to your children.” (Interviewee 5) “We thought we might do that down the track if…if there was a time that we weren’t going to be using umm… the points.” (Interviewee 4) “No, we’re too selfish.” (Interviewee 5)

Value # 3: Esteem or status Interviewees were asked to think about the value dimension of esteem or status, which was introduced as: “proof of one’s social class identity; sense of pride/ achievement in owning timeshare”.

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More than half of the interviewees did not report seeing much value in esteem or status of ownership, however, some saw value in esteem or status regarding being part of a group or being proud of owning timeshare as an asset.

“I don’t think it’s important to have like (um), like it doesn’t make you any better or any worse to say you have timeshare. (Um) you are who you are.” (Interviewee 7) “…yes it’s like you do…you don’t own it, but you are part of [a special group].” (Interviewee 4) “As an asset yes......Probably as an asset.”(Interviewee 6)

Value # 4: Quality of the product The fourth value dimension of quality, which interviewees were asked to consider was introduced as: “high standard of accommodation”. All interviewees agreed and saw value in the quality of the product. That being said, not all new timeshare owners have used their ownership or experienced the quality of the product.

“…just the quality of the resorts themselves and the furnishings and the facilities that they offer for what we look for as a family.” (Interviewee 5) “…more than a hotel room, it’s a full apartment you know, … full kitchen, you know, sort of, up to date umm, you know, appliances and all that sort of thing and nice furniture…furnishings and all that sort of thing, yeah.” (Interviewee 4)

Those who had used their timeshare had mixed views as to the quality:

“There are places there that are roughly 25 yrs old or so and had a little bit spent on them to keep them going. But they’re, don’t expect 5 star or 4 star or what ever, they’re OK. And they are in a good location, the place was in a great location, on the beach one side, the golf course on the other. Shops down the road, so all of that was fabulous, you know, but it was old….” (Male, Focus group)

Value # 5: Flexibility We asked interviewees to reflect upon the value dimension of flexibility, which was introduced as: “build up weeks/points for one long holiday; exchange points for other products”. Flexibility was perceived as being problematic, with interviewees reflecting on both the flexibility in building up points and using these for different products, as well as the availability of times and/or locations they wanted.

“…what [timeshare company] wants me to do is to be flexible based on their standards.... you know....based on their procedures. Flexibility is not for me because I should be flexible with my life, so that I can enjoy the benefits of what I have bought.” (Interviewee 2)

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“Yeah, that’s a plus, like if you don’t want to use it this year or next year. Or if you wanna go on a cruise and you wanna use your points, yeah, that’s good 'cause you can sort of swap.” (Interviewee 7) “I can’t, I can’t just ring in February to book in to Christmas, you know, 10 months in advance so what’s... I don’t know what’s going to happen in10 months or….” (Male, Focus group)

Value # 6: Fun The value dimension of fun was introduced as: “use of facilities such as gym, sport facilities, golf course, tennis courts, canoe and jet ski”. Most interviewees agreed that the availability of facilities represented a positive aspect of the product, especially for families, but also as something other holiday concepts offer.

“Oh definitely but you know um....you can find that in many places as well.” (Interviewee 2) “…yes, definitely swimming pools, kids clubs umm, you know, child care facilities. I’ts very rare for us to actually go out without the children. So, you know, that sort of thing, is great.” (Interviewee 5) “I think really that’s what you want too, if you’re paying, you know, sort of good money for…you expect…you’re expecting to have, you know, good facilities, yeah.” (Interviewee 4)

Value # 7: New experiences The seventh value dimension that interviewees were asked to think about was new experiences, which was introduced as: “new experience and new cultures”. Almost all interviewees saw a value in getting new experiences. Any disagreement was related to new experiences not being important at this stage of their lives.

“Yep. I mean having the chance to go to any country is amazing, just to see how different they are to ours.” (Interviewee 7) “…that’s basically why we decided to go into it, because over the next few years, we will be umm, doing, you know, some overseas trips.” (Interviewee 4) “No, [new experiences are] not [important] at this stage.” (Interviewee 5)

Value # 8: Financial worth Financial worth was introduced to interviewees as a value dimension using the following concepts: “pre-paid holidays; future holidays at today’s prices; value for money”. Most interviewees agreed with the value of financial worth and commented on the long-term benefits of seeing it as an investment. Participants who disagreed that this was a source of value referred to getting better deals with other type of holidays. People who commented on wanting to sell their timeshare did not do so because of perceived losses in value when

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similar products were being sold online for less than the new owners’ original purchase prices.

“We also thought it was a good, we classed it as an asset. Like when, if we go and bought a house, when we go to the bank, it’s an asset that we own because we own it. And you’ve got it forever.” (Interviewee 3) “The only thing I can recommend is that this investment is not for one day ….” (Interviewee 6) “She said if you were to sell them you would probably get $13 000 back [from $19 000 invested], if you were to sell them, but we don’t know, that’s what they said and my husband and I just looked at each other and said ‘why don’t we just leave it for now and just let it go’ and arhh, and then we’ll decide afterwards but you, we were told that you should be able to sell them and you should be able to, you know, get your money back or it will go up…” (Female, Focus group) “I don’t believe that. As I said to you I can get cheaper accommodation on the time ....” (Interviewee 2)

Value # 9: Aesthetics We asked interviewees to reflect upon the value dimension of aesthetics, which was introduced as: “beautiful, scenic locations; attractive apartments/grounds”. Almost all interviewees agreed with regard to the value of aesthetics, although not all of these new timeshare owners had used their timeshare:

“Yes, for the money that you pay it’s something you definitely do expect.” (Interviewee 7) “Oh, definitely. And there’s a variety too, so if you’re not big on the beaches and that, you can go like, 'rainforesty' or wineries or, you know, things like that, or the snow even, yep.” (Interviewee 7) “Yes, ’cause they’re all really nice properties, so yes.” (Interviewee 3)

Value # 10: Social relationships The value dimension of social relationships was introduced as: “make new friends; catch up with people”. More than half of the interviewees did not agree with value of social relationships as making new friends was not seen as something to achieve while on holiday.

“…when I go for a holiday I want to get away....you know ?... It’s not like I’m looking to make friends.” (Interviewee 2) “Oh yes, definitely, that’d be good, yeah.” (Interviewee 3)

Value # 11: Family

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We asked interviewees to consider the value dimension of family, which was introduced as: “spending quality time with one’s family”. Family was seen as a value of timeshare and holiday ownership by all interviewees and focus group participants commented on timeshare properties as being designed for families.

“Yes. So you basically get the choice to take them with you rather than you probably – if on a normal holiday not through timeshare, you wouldn’t have been able to take them [the kids]. Because you’d basically be paying that much extra for them. Whereas this way, with timeshare you can.” (Interviewee 7) “I think it is designed for families ’cause the resorts that they do have they are, they are designed for the family and not a honeymoon couple sort of thing.” (Female, Focus group)

Value # 12: Close friends Interviewees were asked to reflect upon the value dimension of friends, which was introduced as: “spending quality time with friends”. Most interviewees commented on seeing a value in spending time with close friends. Interviewees who disagreed also disagreed with social relationships and the flexibility of the product.

“Exactly, there are a lot of pluses in there. Like you know, we went to Sydney and I can say to my girlfriend, ‘well come here and then just stay for the night’. At least then, then you can say to yourself you have the night to catch up as well. In the morning to make coffee together. And those are quality times, pretty special.” (Interviewee 2) “…with timeshare, you can actually go up to six or eight people, (um,) at no real extra cost.” (Interviewee 7)

Value # 13: Convenience We asked interviewees to comment on the value dimension of convenience, which was introduced as: “close to local shops, restaurants, theme parks, onsite facilities”. Almost all interviewees saw a value in convenience. Those who disagreed referred to looking for places out of the mainstream, which are also available through timeshare.

“So they have (sort of) both needs with timeshare. Like, some of them are a little bit out of town, out of the mainstream for those that want to relax. And then for others that want nightlife and that way of life, but a still sort of relaxed atmosphere, they still sort of cater for everybody.” (Interviewee 7) “Well yeah because if you’re close to all of that sort of stuff, yes, definitely.” (Interviewee 3) “I guess it is convenient, you know, if you have got shops around you, but because they are self contained apartments umm, you’re basically not going to take all your things with you.” (Interviewee 4)

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Value # 14: Accessibility Penultimately, interviewees were asked to reflect on the value dimension of accessibility, which was introduced as: “located within easy driving distance; easy to organise; facilities and services match my/my family’s needs”. Almost all interviewees agreed with the value of accessibility. There was, however, some mixed commentary regarding timeshare facilities being in easy driving distance – this could also be said with regard to any holiday, not just timeshare. Focus group participants also commented on the importance of easy access when traveling overseas.

“…they’re all sort of located pretty easy access, type of stuff, to airports and trains and all that, to get to them, they’re not (sort of) out of the way.” (Interviewee 7) “I was looking at New Zealand to and arhh, some of them were like an hour and half from the airport, you know 3 hours from the airport and that also takes in consideration to the travel time to and from the airport and you know.” (Female, Focus group)

Value # 15: Memories Finally, interviewees were asked to consider the value dimension of memories, which was introduced as: “memories that last on after the holiday has finished”. Interviewees generally saw value in memories; however, not all of these new timeshare owners had yet experienced their timeshare holiday.

“To have memories when it’s finished, yes. To be able to look back and to have enjoyed your time.” (Interviewee 7) “Yeah that’s right, the thing, you know, that we’re sort of looking forward to sort of you know umm, experiencing it” (Interviewee 4).

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