New Opportunities in the Timeshare Markets
Timesharing saves consumers money.
That is a given for anyone who knows and understands the timeshare value proposition.
Why this happens is the next step in understanding how the basic mechanics of timesharing can be used in other parts of the travel arena.
Basically timesharing is a cash flow exercise.
First a hotel predicts how much money they will make from renting a certain room over the next twenty years.
They then pose the question, " How many dollars do I have to put in the bank today to get the same profit over twenty years assuming I am getting a 5% return on my money".
If the amount I am going to get from selling the room today exceeds the amount I need to put in the bank to make that same return, then I sell.
Most people are confused by the scenario and find it somewhat threatening.
So an easier explanation is the savings bond you got when you graduated eighth grade.
That $100 savings bond was bought for $50.
The longer you hold it the closer it gets to its face value.
Your timeshare was worth 60,000 when you bought it for 30,000.
In twenty years it will be worth 60,000.
But now that you have your timeshare you have to get to it.
You have created another opportunity for yourself.
Every year you will have to purchase a ticket.
Assuming that ticket prices will rise 5% a year you can predict how much you will spend on those tickets over the next 20 years.
Wouldn't it be great if you could convince an airline to timeshare out a plane so you could save money and fix your cost.
It would save the airline money also since they spend money in marketing every year to get you to fly with them.
I had that idea and actually developed a product called Intellifares that does exactly that.
You can read about it at Intellifares.
com.
Mexicana Airlines has just teamed up with Intellifares to bring just these types of savings to Timeshare owners in Mexico flying from California.
Now I am a product designer.
What I want is opinions on the product.
Does it make sense? Can it be improved? Can you think of other ways to make timeshares work better?Write back and let me know.
That is a given for anyone who knows and understands the timeshare value proposition.
Why this happens is the next step in understanding how the basic mechanics of timesharing can be used in other parts of the travel arena.
Basically timesharing is a cash flow exercise.
First a hotel predicts how much money they will make from renting a certain room over the next twenty years.
They then pose the question, " How many dollars do I have to put in the bank today to get the same profit over twenty years assuming I am getting a 5% return on my money".
If the amount I am going to get from selling the room today exceeds the amount I need to put in the bank to make that same return, then I sell.
Most people are confused by the scenario and find it somewhat threatening.
So an easier explanation is the savings bond you got when you graduated eighth grade.
That $100 savings bond was bought for $50.
The longer you hold it the closer it gets to its face value.
Your timeshare was worth 60,000 when you bought it for 30,000.
In twenty years it will be worth 60,000.
But now that you have your timeshare you have to get to it.
You have created another opportunity for yourself.
Every year you will have to purchase a ticket.
Assuming that ticket prices will rise 5% a year you can predict how much you will spend on those tickets over the next 20 years.
Wouldn't it be great if you could convince an airline to timeshare out a plane so you could save money and fix your cost.
It would save the airline money also since they spend money in marketing every year to get you to fly with them.
I had that idea and actually developed a product called Intellifares that does exactly that.
You can read about it at Intellifares.
com.
Mexicana Airlines has just teamed up with Intellifares to bring just these types of savings to Timeshare owners in Mexico flying from California.
Now I am a product designer.
What I want is opinions on the product.
Does it make sense? Can it be improved? Can you think of other ways to make timeshares work better?Write back and let me know.
