tatoc five-year plan march 2013

FIVEYEARSTRATEGICPLAN

MARCH 2013

TATOC EXISTS TO PROTECT AND ENHANCE

THE TIMESHARE HOLIDAY EXPERIENCE FOR USERS

AND TO BE THE VOICE OF OWNERS.

INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . 4

TATOC RECOGNITION . . . . . . . . . . . . . . . . . . . . . 5

MEMBERSHIP . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

TATOC HELPLINE . . . . . . . . . . . . . . . . . . . . . . . . . 6

FUNDING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

CODES OF CONDUCT & PRACTICE . . . . . . . . . . . 8

TATOC ACCREDITATION . . . . . . . . . . . . . . . . . . . . 9

EXIT STRATEGIES . . . . . . . . . . . . . . . . . . . . . . . . 9

EUROPE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

CONTENTS

4 T A T O C F i v e - y e a r S t r a t e g i c P l a n

INTRODUCTION

The timeshare industry is facing challenges arising from an ageing owner base, a difficult financial and marketing environment, evolving consumer requirements and user expectations.

TATOC, the European trade body RDO

(Resort Development Organisation) and

the industry and home association body

in the U.S.A. (ARDA/ROC) must face these

challenges with a unified approach.

Today’s new generation of holidaymakers

are strongly internet and social media

focused. Mobile communications and the

internet are powerful tools that play a

major part in their decision-making and

actions. They are no longer impressed, and

in fact are more likely to be deterred, by

products with long duration or lengthy pre-

booking requirements.

All parties have a fundamental part to play

in the successful future of timeshare both

to service the on-going needs of existing

owners and to satisfy the emerging needs

of younger markets.

Existing owners need a secure and

successful timeshare industry to provide

the facilities and services they purchased.

It is not possible for TATOC to be actively

involved, or to exercise a positive influence

on the timeshare industry and its

timeshare products, from the position of

‘antagonistic outsiders’.

There is no conflict of interest in a good

relationship between timeshare consumers

and the reputable timeshare companies that

service their requirements. TATOC is proud

to work with reputable timeshare businesses

in the industry to protect, promote and en-

hance the future of timeshare for owners.

But TATOC will also fiercely defend its

independence and impartiality to represent

the best interests of owners and to fight

against rogue companies and bad practice.

In developing this new Five-Year Strategic

Plan the board firmly believes that TATOC

must grow in size and stature and be

involved in the wider timeshare offering.

We must be equipped to play our part

in the changing timeshare environment

but be ever mindful of our core assets,

principles and values. TATOC will play an

important role in timeshare development.

Harry Taylor, Chief Executive

5T A T O C F i v e - y e a r S t r a t e g i c P l a n

TATOC RECOgNITION

This Five-Year Plan is a commitment by TATOC:

• To be recognised and respected as the largest and best independent representative body for timeshare consumers in Europe;

• To be known and respected in all areas where timeshare is in the public arena, and wherever timeshare is spoken or written about;

• To be easily accessible to every timeshare consumer in Europe;

• To be the knowledgeable ‘place to go’ for existing and potential timeshare owners seeking information or assistance;

• To be the first consumer point of contact for all media agencies on any matter relating to timeshare and other shared-ownership products;

• To be the first consumer point of refer-ence and referral for all government agencies and other public bodies, banks, legal professionals and so on;

• To increase our visibility and presence to timeshare owners and companies, and to raise the profile of TATOC by attending resort meetings and industry forums in the U.K. and Europe and through any other opportunity that may occur.

MEMBERSHIP

TATOC is a consumer association and membership is open to elected resort committees and to individual timeshare owners.

The greater the number of individuals and resorts in membership the more TATOC has a legitimate right to claim increasing representation and greater credence in Europe and worldwide.

TATOC will run awareness, publicity and re-cruitment campaigns and will work closely with its affiliates and industry bodies.

TATOC will foster good relationships with individual developers and large developer groups to encourage resorts to become TATOC members.

TATOC will also generate good relationships with other external bodies, agenciesand the media to enhance knowledge and recognition of the association.


TATOC HELPLINE

The TATOC Consumer Helpline has rapidly gained a reputation for being professional, realistic, well informed, unbiased, and genuinely beneficial.

During 2012 it received a monthly average of more than 800 telephone and e-mail enquiries.

In a 2012 survey, 100 per cent of the consumers questioned who had used the Helpline considered the knowledge and professionalism of the staff to be good or better. All said they felt the Helpline had met their expectations when making the contact.

The vast majority of contacts are not complaints but requests for general information on timeshare or related matters. Any complaints are, in the main, directed at fraudulent or known disreputable companies. The Consumer Helpline has direct contact from timeshare owners but also receives referrals from the Office of Fair Trading, Citizens Advice Bureaux, the police, banks, solicitors, media and other government agencies.

The Helpline has an essential role in assisting individual timeshare owners. But its presence and actions are major contributors to the important task of improving perception of the timeshare product. The Helpline is a vital part of TATOC and it is essential to us that its reputation continues to grow throughout

the next five years. In addition to current activities the Helpline will:

• Ensure staffing levels and expertise are sufficient to maintain its profes-sionalism and quality of service;

• Gain access to expertise in European languages to support TATOC expansion into Europe;

• Nurture good relationships with other consumer representatives in Europe, the U.S.A. and Australasia and with any industry-sponsored consumer support organisations;

• Extend the Helpline service to give specific assistance to individual consumers in difficult circumstances where general information and guidance is insufficient to resolve their enquiry or complaint;

• Introduce pro-active measures to respond to incidents/trends and provide a ‘heads-up’ to timeshare businesses, government agencies and all other interested parties; and

• Make more use of the TATOC mediation service for the resolution of disputes.


FUNDINg

Membership fees are based on the number of timeshare units (e.g. apartments) at member resorts. In 2012 and 2013 the fee formula is:

Resorts with up to 11 units: number of units X 50 weeks at 22 pence plus VAT

Example: Six units x 50 = 300at 22 pence = £60 plus VAT = £72

Resorts over 12 units:fixed fee of £185 plus 80 pence per unit plus VAT

Example: £185 + 206 units at 80 pence (£164.80) = £349.80 plus VAT = £419.76

In addition a number of resorts contribute 50 pence/50 cents per timeshare week per year as an additional contribution to the TATOC Consumer Helpline. Contributions supporting the Helpline are also received from the Timeshare Trust (managed by RDO/TATOC). Additional revenue is obtained through affiliations and web sponsorship.

Annual fees will continue to be reviewed but will never be set too high so that the cost of membership becomes a disabling factor for enrolling or retaining membership.

TATOC will continue to encourage resorts, management companies and developers to collect an annual TATOC contribution of 50 pence/50 cents per week owned from all owners as part of their annual maintenance fee collection process to help support the work of the Helpline.

As TATOC grows, consideration must be given to its financial future. There will

be an on-going search for new revenue opportunities and the search for funding streams from TATOC accreditations, affili-ations and web sponsorship will continue.

The TATOC Consumer Helpline expenditure accounts for most of TATOC’s income and special attention will be given to exploring all available revenue opportunities for the exclusive use of the helpline.

To facilitate this, a proposition will be tabled at the 2013 annual general meeting to create a new company called TATOC Consumer Helpline to allow a new application to the Charities Commission for charitable status.

The TATOC board believes that while charitable status is not suitable for TATOC as a whole, it would beneficial to the helpline. TATOC Consumer Helpline will have its own constitution and for the time being will be governed by the existing TATOC board.


CODES OF CONDUCT & PRACTICE

TATOC will forge good relationships and affiliations with individuals, companies and organisations who share our passion for excellence and consumer service in timeshare.

The TATOC Code of Conduct is a commitment by TATOC, resort members, accredited and affiliated companies to the highest standards of business ethics, principles and practices. It is a commitment to the highest standards of products and services – correctly sold, well managed and well maintained, with the consumer as the principle focus.

A commitment to the Code brings important consumer and commercial benefits and is complimentary to trade association membership. It demonstrates to owners and prospective owners that a

timeshare business is recognised by the largest independent consumer-representative body for timeshare owners in Europe.

All TATOC affiliated companies have confirmed their commitment to the Code of Conduct and relevant codes of practice and this is now a pre-requisite for all companies who wish to be recognised by TATOC.

In addition to the overall governing Code of Conduct it is TATOC strategy to have a code of practice for all principle areas of timeshare. Already there are codes of practice in operation for timeshare re-sale companies and for resort committees.

During this next five years TATOC will in-troduce additional codes of practice for:

• Timeshare points clubs;

• Flexible shared-ownership products;

• Timeshare sales personnel; and

• Others as circumstances require.

T A T O C F i v e - y e a r S t r a t e g i c P l a n


TATOC ACCREDITATION

TATOC already has a successful accreditation programme for timeshare resorts and timeshare re-sale companies.

During the next five years we aim to greatly increase the number by introducing new accreditation programmes for:

• Timeshare points clubs and flexible shared-ownership products;

• Timeshare sales personnel; and

• Others as circumstances require.

All existing accreditation programmes will continue to be reviewed and up-dated thus ensuring they remain comprehensive and meaningful in their respective areas.

It is paramount that timeshare consumers, all sections of the media, government agencies and the timeshare industry in general are aware of the importance of the TATOC accreditation programmes.

TATOC will achieve this by using all social media outlets, Sharetime and other magazines, press releases, and a general strengthening of already strong relationships with government agencies, resort committees, RDO, ARDA, European organisations and others.

EXIT STRATEgIES

TATOC recognises there can be circumstances when timeshare owners are no longer able to afford or to enjoy their timeshare, but are not able to sell or to hand-back their products to their resort/developer.

This has created difficulties for some owners and attracted adverse media attention further damaging the perception of timeshare.

In 2011 an expert panel, chaired by TATOC and consisting of industry professionals, was created to look into the issues of ownership ‘exit routes’.

The panel’s objectives were to produce an industry-wide analysis of, and recommendations on, ways in which owners could sell or relinquish their ownership within a reasonable time period, or on payment of some reasonable fee.

Progress was made, but as yet, no general solution has been achieved. However, a


EXIT STRATEgIES [CONT.]

EUROPE

The majority of TATOC member resorts are U.K.- or Europe- based but all have a predominantly U.K. ownership base.

TATOC will work to increase all resort membership but it is especially keen to extend membership to resorts where the principle ownership is not so strongly U.K.-based. To do this we will recruit staff with additional languages and establish relationships with, and the co-operation of, other European consumer associations.

TATOC will continue and enhance communication with the E.U. Parliament and other agencies. It is important that all agencies are aware of the importance

of timeshare, not only to consumers but also of the social, economic and employment benefits it brings to local communities and national economies.

number of developers and resorts do have a mechanism for members who, for various reasons, need to dispose of their timeshare.

During the next fi ve years it is TATOC priority to work with owners committees, resorts, timeshare businesses and organisations to encourage discussion to establish procedures that will enable the departure of existing timeshare owners without prejudice to the interests of other owners. We will also work with the timeshare industry to ensure that new products are launched that will encourage a younger timeshare owner.

TATOC will provide a service on request to all independent resorts and those that operate without a developer to discuss and evaluate the future of their resort. A full health check including financial projections, membership opportunities and threats will be followed by recommendations from a panel of experts recruited by TATOC. The panel includes a practising timeshare solicitor, a timeshare trustee, a firm of accountants with timeshare resort experience and selected industry advisors.

w w w . T A T O C . C O . U k

TATOC HEAD OFFICE:Manchester House84 – 86 Princess St.Manchester

United KingdomM1 6NG

PHONE:+44 161 237 3611

CONSUMER HELPLINE:0845 230 2430

EMAIL:[email protected]