Timeshare businesses, for some historically valid reasons, have an “ick” factor to them. Until recently, what came to mind when I thought about timeshares were sleazy salesman duping unsuspecting customers into locking themselves into unaffordable and unusable long-term contracts for dingy condos. While some of those dynamics may still be true in the industry, it’s fair to say timeshare businesses have come a long ways.
Really enjoyed the write-up. Thanks for unpacking the business. A few of questions:
1. How do you think about the debt situation and are they raising more debt to fund the upcoming acquisition?
2. How do you get comfort with the rates they charge on their loans and whether that is sustainable? Is that a packaging thing where people don't really think to shop around? Surely extending one's mortgage would be preferable?
3. You hinted at it a few times but didn't explicitly say whether you would purchase timeshare for yourself? Is this truly a win-win for the customer and the provider or is it just clever packaging to get the customer to pay more?
interesting, thx
Really enjoyed the write-up. Thanks for unpacking the business. A few of questions:
1. How do you think about the debt situation and are they raising more debt to fund the upcoming acquisition?
2. How do you get comfort with the rates they charge on their loans and whether that is sustainable? Is that a packaging thing where people don't really think to shop around? Surely extending one's mortgage would be preferable?
3. You hinted at it a few times but didn't explicitly say whether you would purchase timeshare for yourself? Is this truly a win-win for the customer and the provider or is it just clever packaging to get the customer to pay more?
Thanks