For a long time we have been writing about the difficulties of exiting American timeshare, so it’s refreshing that Wyndham seem to be acknowledging that circumstances warrant termination of ownerships. Wyndham have created “Ovations by Wyndham”.
Unfortunately, there is very little information given on their single page web publication, please see the copy below:
The comforting point is that it appears that Wyndham wish to help owners wanting out, however the webpage falls woefully short of giving the hard facts as to how to dispose of ownership. A comment on the lower area of the web page also gives us reason to be concerned:
This clearly states that the purpose is “Soliciting the sale of timeshare” or “Interests in timeshare property”. Are we to conclude from this this that Wyndham would rather you put your ownership into a resale programme or worse still that the primary purpose of Ovation is to sell more of the same.
That said, one refreshing statement is:
“An Ovation by Wyndham representative will walk you through the process step by step to identify the exit solution that works best for you”.
So at least there is now a point of contact and the possibility of an exit strategy that of course is a step in the right direction.
Needless to say, for the above reasons and many more, the initial online reaction from Wyndham owners was rampant scepticism. Wyndham owners, in general, said they are suspicious that Ovation is simply another “Pathways,” a predecessor program that turned into a PR disaster when owners discovered they’d have to spend MORE money, by buying more points, to get out of their timeshares. And getting out was not guaranteed.
Now, having been burned by Pathways, Wyndham is proceeding cautiously with Ovation while it tests the waters to see which exit programs, if any, best suit their owner base.
The venture is being closely watched by the industry because, to date, no major brand-name developer has created a program that allows long time owners to easily divest themselves of their timeshare contracts. In fact, as Wyndham quietly acknowledges, many companies have turned their backs on original owners, forcing them to deal with third party resale and transfer companies that; in some cases are running absolute scams – and taking advantage of timeshare owners who are desperate to sell.
Give-Back and Resale Options
Here’s what Adam Schwartz, Wyndham Vacation Ownership’s Chief Branding and Communications Officer, says about Ovation.
The company is exploring several exit options, simultaneously, to see how they address the demands from owners.
The first is a straightforward referral program, where Wyndham refers owners to a group of resellers who can help sell their timeshare. The resellers are all vetted by Wyndham, so owners can build confidence that they are working with legitimate companies. “Fly by night” companies that demand $1,000 or more in upfront fees for resale listings are not on the Ovation list, Schwartz said.
The second option is a give-back program, where Wyndham takes back title and allows the owner to end their timeshare contract. This option is not available to all owners; Wyndham retains the right to take back properties it wants or can down the road resell to a new buyer.
Option number three blends the give-back program with a right-to-continue-traveling within the club for up to three years. Owners would not have to continue paying maintenance fees while still using the club’s travel and exchange services.
“We are testing these concepts to see how much (of the demand) we can fulfil without aggressively broadcasting it – and without breaking our own bank while helping owners,” Schwartz said.
No Fees or Purchases Required
Having clearly learned a lesson or two from the Pathways experience, Wyndham says they will NOT charge owners additional fees or force them to purchase anything in order to participate in Ovation.
“Owners are sceptical and may think this is a program to market them to buy more, but if you are really exiting, you will go on the ‘do-not-market’ list,” Schwartz said.
The only exclusion for participation is an unpaid mortgage/finance. Owners who are still paying off their mortgage/finance cannot participate in Ovation until that debt is resolved.
To date, beyond the user-group chat rooms, the initial owner response to Ovation has been positive. “We know how many people have called and gone through the program. It encourages us that we are heading the right direction,” Schwartz said.
“I really believe we are going to turn this into a win-win situation for developers and owners,” Schwartz said. “Developers have been hesitant to open this Pandora’s Box, to recognise that people, at some point in time, may not want to own their timeshare anymore. The question is: are we going to embrace it and find a solution – or shove it under the rug, hide it in the closet, and let others figure it out? With this program, we’re trying to convey to Wyndham owners, that if they want to end their ownership, we want them to call us so we can help them.”
Time will tell, since the program is still in its infancy and likely to be customised as Wyndham gets more feedback from owners. But as a first step – in an industry that has been reluctant to talk about end-game strategies for owners – it’s a start.
If you own a Wyndham resort timeshare we would like to hear from you. If you have tested “Ovation” and have had a positive, or negative result let us know.
For more information regarding this article or assistance in any other timeshare related issues please contact the TCA on 01908 881058 or email: info@TimeshareConsumerAssociation.org.uk