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From: gjm@ihnp4.UUCP
Newsgroups: net.travel,net.invest,net.misc
Subject: vacation condo Timesharing
Message-ID: <508@ihnp4.UUCP>
Date: Wed, 18-Jan-84 00:29:44 EST
Article-I.D.: ihnp4.508
Posted: Wed Jan 18 00:29:44 1984
Date-Received: Fri, 13-Jan-84 05:30:27 EST
Organization: AT&T Bell Labs, Naperville, IL
Lines: 70


I just received an AM/FM/FM stereo mpx radio as a promotional gift in
exchange for listening and enduring a pitch on "Timesharing" a vacation
condominium.

World-Wide Vacations, Inc. (WWVI) in Burr Ridge, Illinois claims to be
the fastest growing company in the vacation timesharing business in the
U.S.A.  FYI, the basic idea of timesharing is to buy a portion of time
in a condo -- you get to spend your vacation in a condo that you
partially own for a fraction of the whole cost of the condo.

There are two standard contracts, one called "straight fee" which buys
you a fixed time slot in a fixed condo for "life", and a second called
"right to use" buys you a time slot in a condo for 20-30 years which can
be traded yearly with other condo's (your right to use terminates with
the end of the contract).  The trade/exchange process is handled for a
fee by an organization named International Invitations (I.I.) (or
something) with trades for condo's scattered around the globe.

W.W.V.I. made the offer for a "charter membership" which includes
"straight fee" purchase of a condo time slot in Tahoe, CA, with trade
service for their 6 other locations (San Fran, Honolulu, Acapulco, Palm
Beach, Sun Valley, ???, growing to 12 including 2 cruise ships).  They
were offering an immediate sign up bonus of special airline rate
membership, one year insurance on your time slot, two years coverage of
the I.I. exchange fee, and as the BIG bonus, "Bonus time" which was all
the vacation time you want for maid/maintenance costs at one of there 7+
locations with vacancies (17% vacancy is claimed).

The $price$ for the "charter membership" was $23K for a two week
timeshare, down payment of < $7K, monthly payments of about $336, with a
seven year pay timeframe ($33K gross at 15.5% according to the
salesman).  After I made a statement that I carefully consider my
investments, the manager made an offer of $11K for a one week timeshare
with all the immediate sign up bonuses.

The above details are objective, so here are my subjective opinions. 
The immediate sign up incentive attempts to cover for a deal that may
not really be so attractive.  In spite of the reasonable arguments
against the cost of hotels, etc., they are making a huge profit ($11K
times 51 LEGAL weeks is $561K) on a condo that can't cost close to $561K
(obviously some of the cost goes to cover the benefits, exchange, etc.
-- you end up paying through the nose for everything).

The standard high pressure sales tactics were used.  The sign now
incentive was supposed to be so attractive that it would override
reason.  They made such a big deal about the "Bonus time" incentive that
I asked how many people signed up for the standard membership.  The
answer was: none -- all of the people sign up at a promotional meeting
similar to the one that I attended.  The deal from the manager is
another standard ploy, and after seeing that I listed myself as a
"computer systems engineer", they concentrated on the argument that the
deal was logical, and that I wasn't being logical.  I felt uncomfortable
with the suppressed urge to give in to remedy the situation, but then
grew upset at their continued efforts to manipulate.

And the important part -- at where I am now (single), I don't want to
take expensive luxurious vacations even if I can take them, I want to
visit my friends and relatives, or go camping/backpacking with friends. 
I'm not about to break my personal convictions about investigating
investments, and I'm not about to sign with someone I don't know for
something about which I know nothing.

I'm interested in other people's opinions and/or experiences with
vacation condo timesharing.  I'll summarize to the net if there is
sufficient input and interest.

Gary Murakami
AT&T Bell Laboratories
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