I received an email about Wyndham's new "Ovation" program, which claims to help Wyndham owners end their ownership when desired. Do they really have reasonable solutions, or is this just an attempt to sell us more?
Wyndham, the world's largest timeshare company with 900,000 owners, just rolled out a program that, allegedly, provides a way for owners to sell, donate, or give back their timeshares after many years of supposedly satisfied usage. Known as "Ovation by Wyndham," the exit program was recently announced in a deliberately low-key email blast to owners. WorldMark, one of many Wyndham resort chains, also posted a one-page blurb about Ovation on its Web site. To get any real information about the program, owners had to contact Wyndham.
Everything about the program is pretty murky, at least for now, because the whole thing is an experiment in finding solutions. Wyndham executives, who declined to say much about Ovation for two months, recently gave RedWeek a first-look in order to offset complaints from Wyndham owners that were surfacing on user groups and other owner-forums, including RedWeek.com.
The Ovation Pitch
The email sent to owners had this simple message:
"We're proud to introduce Ovation by Wyndham – a new program offering credible options for owners who are ready to transition to the next phase of their travel needs."
The accompanying one-page blurb sent this message: "This program provides assistance to owners whose lifestyle or vacation preferences have changed and are seeking safe and viable options to transition out of their ownership. Offers available are relative to unique owner needs and qualifications, and may also vary based upon specific program objectives." They go on to say, "You deserve the same level of credibility in closing this chapter of your life as when you opened it. Navigating through the numerous channels out there to find the best solution to help you exit your ownership can be a daunting task. With Ovation by Wyndham, we're here to help you gracefully transition to the next phase of your life - wherever that may take you."
Wyndham Owners Skeptical
The initial online reaction from Wyndham owners was rampant skepticism. 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 longtime 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, told us 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, down the road, can 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 fulfill 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 skeptical 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. Owners who are still paying off their mortgage 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 recognize 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 customized 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.
RedWeek Needs Wyndham Owners
Are you interested in trying out this program? If so, reach out to us first, and let us follow your experience with Wyndham: what they offer you, how satisfied you are with the options, etc. We have opened up a forum on this topic - please post there if you are interested in sharing your experience. We plan to compile a report with actual owner results in the coming months.
