Tap­ping the time­share pie

See­ing the po­ten­tial of the time­share con­cept, even tour oper­a­tors and travel agents are look­ing at in­creas­ing their stake in the seg­ment.

TravTalk - India - - Agents - MEGHA PAUL

This is a busi­ness in which long-term cred­i­bil­ity is a must It cre­ates mul­ti­ple av­enues to grow our re­spec­tive businesses There are cur­rently only three lakh time­share mem­bers in In­dia There is also scope to add value to Ster­ling’s va­ca­tion own­er­ship mem­bers

While the ho­tel in­dus­try in In­dia didn’t look too op­ti­mistic in 2013, the time­share con­cept has been evolv­ing at the hos­pi­tal­ity land­scape. The con­cept has helped the in­dus­try tide over tough times. Time­shares or va­ca­tion own­er­ship of­fer the right to use a re­sort unit at dif­fer­ent lo­ca­tions for a spe­cific pe­riod ( say, a week) each year for a spec­i­fied num­ber of years (say, 25 years). The ap­par­ent cost in­cludes a one-time mem­ber­ship charge and an­nual main­te­nance fee. By pay­ing an ex­change fee, time-share own­ers could also opt to stay in re­sorts of other va­ca­tion own­er­ship com­pa­nies in In­dia or abroad. If used con­sis­tently on a long-term ba­sis, time­shares could work out cheaper than com­pa­ra­ble ho­tel rooms.

See­ing the po­ten­tial of the time­share con­cept, even tour oper­a­tors and travel agents are look­ing at in­creas­ing their stake in the seg­ment. The TCIL trans­ac­tion is ex­pected to close by the fourth quar- ter of 2014, sub­ject to cus­tom­ary clos­ing con­di­tions and reg­u­la­tory ap­provals. With this merger, Thomas Cook will gain ac­cess to Ster­ling’s net­work of 19 re­sorts in 16 hol­i­day des­ti­na­tions across In­dia. Ac­cord­ing to Mad­ha­van Menon, MD, TCIL, the merger reaf­firms the com­pany’s com­mit­ment to in­vest in mu­tu­ally-ben­e­fi­cial part­ner­ships. “It cre­ates multi- ple av­enues to grow our re­spec­tive businesses and to cre­ate valu­able op­por­tu­ni­ties to­gether,” he in­formed.

Ramesh Ra­manathan, MD, Ster­ling Hol­i­day Re­sorts (In­dia), pointed out, “Thomas Cook cus­tomers will have ac­cess to our pan-In­dia net­work of well lo­cated, full-ser­vice, qual­ity re­sorts which of­fer great hol­i­day ex­pe­ri­ences. Ster­ling stands to ben­e­fit from TCIL’s iconic brand rep­u­ta­tion and its large base of do­mes­tic and in­bound travel cus­tomers. There is a scope to add value to Ster­ling’s va­ca­tion own­er­ship mem­bers through syn­er­gies be­tween the two com­pa­nies.” Mahin­dra Hol­i­days and

` Re­sorts will in­vest 500 crore in the next fi­nan­cial year 201415 in around seven prop­er­ties across the coun­try. “We will be adding 500 rooms ev­ery year over the next three years,” Arun Nanda, Chair­man, Mahin­dra Hol­i­days and Re­sorts (MMHR), re­vealed. “This is a busi­ness where longterm cred­i­bil­ity is a must and since the prod­uct has to be served for longer pe­riod, people are not com­fort­able with groups or com­pa­nies with no track record,” he said.

The Jukaso Group has also an­nounced its lat­est ven­ture into time­share busi­ness. The group is work­ing on ac­quir­ing va­ca­tion prop­er­ties in des­ti­na­tions like Lon­don, Dubai, Goa, Mus­soorie, Naini­tal and in South In­dia. Ra­jiv Khanna, Chair­man, Jukaso Group, elab­o­rated, “There are cur­rently only three lakh time­share mem­bers in In­dia, whereas the po­ten­tial con­sumer base is over 100 mil­lion. With quite an ex­ten­sive base of rooms to start with, we feel we have an edge in the mar­ket. Also, we are the only ones to of­fer prop­er­ties in Europe to be­gin with for time­share.”

Mad­ha­van Menon Man­ag­ing Di­rec­tor Thomas Cook In­dia

Ramesh Ra­manathan Man­ag­ing Di­rec­tor Ster­ling Hol­i­day Re­sorts

Ra­jiv Khanna Chair­man Jukaso Group

Arun Nanda Chair­man Mahin­dra Hol­i­days and Re­sorts

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