Is this program open to any property?

Hospitality Representation is only interested in locations needed by the clubs where we do not have any other property, or where additional units are needed in excess of what the existing properties can provide.

What are the requirements of the units and the properties?

The clubs generally prefer two-bedroom, two-bathroom units. One-bedroom units may be acceptable in certain locations. All units must have a full kitchen or kitchenette, be fully set up, and ready for vacationers.

The property must be well maintained, in a location conducive to vacationers, have at least a swimming pool (unless on the beach), and be properly managed.

The property must be approved by the clubs involved.

How do we know that Hospitality Representation will not be competing with us for vacationers?

Neither Hospitality Representation or the Vacation Clubs offer the units to the general public. Units are exclusively used by the club members. The resort will not have to worry about ‘competing with themselves’. Some members will want to stay for more than the week that they are entitled to by their membership. They will be referred back to the property to deal directly for any extensions, providing an added revenue source for the resort. Since the leased units are basically ROH, the resort can maintain its own inventory management and maximize benefits.

The units leased are for the use of Vacation Club members and are strictly promoted to them. These are not vacationers that your resort normally would have attracted on its own. Most club members are from the Midwest USA and tend to only travel to properties which their membership entitles them. Your resort will benefit as the clubs introduce your property to their members and entice them to go. Otherwise, the clubs would be paying for units that go empty.

To accomplish this, when the clubs take on a new property, they actively market it to their members. This is done through their various websites, flyers, emails, direct mailings, at group meetings, etc. As these clubs are large, having at least hundreds of thousands of members each, your resort becomes known to well over a million families that likely never knew about you before, without any cost to you. The clubs pay all marketing without any contribution from your resort.

When and how are the resorts paid?

Payments to the resort are made automatically by wire transfer (unless requested otherwise by the resort) so that they are received AT LEAST 2 weeks prior to the start of each month.

Generally, Hospitality Representation LLC pays about 30 days in advance but allowing for weekends, Holidays, delays, etc. we promise to get you the payment at least 2 weeks prior to each month so there is more than enough time for unexpected events.

No invoicing is necessary. Payments are automatic, and the resort will never run negative as the payment is always done well in advance of each month.

The Resort is paid for units whether or not they are used by Hospitality Representation.

How many members are allowed in a unit before the resort can charge additional fees for additional guests?

1-bedroom units are 4. 2-bedroom units are 6. This includes use of the sofa beds with linen. Members may not smoke in the units.

What amenities are the members entitled to?

Members should receive the same amenities and be treated in the same fashion as your other regular guests.

Can the property sell the member a timeshare or condo?

Absolutely! You cannot force a member to attend a presentation, but once they are there, you are free to market to them as you would normally. After all, they are prime candidates since they are experiencing your resort or condo first hand.

When does the resort know the members information and which units are going to be occupied?

Hospitality Representation LLC receives weekly updates from each of the clubs. This information is then consolidated, and guest information provided to each of the resorts. This gives the resorts guest contact information, should they want to upsell services to the members, to maximize their revenue potential.

Preparation for arrivals:

The resort is always notified of the guest information in advance.

The resort may promote concierge type services in advance for added potential revenue.

Check in days:

Depending on the lease agreement with your resort, the members are reserving either a Friday to Friday, Saturday to Saturday, or a Sunday to Sunday.

Must the Resort provide the same units, or can they switch units for better inventory management?

The program is designed to help the Resort fill excess inventory and increase its bottom line. Allowing a “ROH” concept helps accomplish this. So long as the units are the same, or similar enough, so that one member does not get something dramatically different than another, the resort can manage its inventory to its best advantage.

Can my resort charge the members an additional fee?

Properties in mainland USA may not charge any added fees to the members. However, properties in international destinations or not in mainland USA may charge a pre-agreed ‘utility fee’ that each guest reservation would pay to the resort on check-in. This enables the property to offset utility and other costs that may be higher than is normal for USA properties.

Can a resort request a unit back?

This is a working relationship which everyone wants to become permanent. There are times where a resort may get a conference or have other reasons when additional units would benefit them. Although the units are leased to Hospitality Representation, the resort is always welcome to ask to trade a week here and there or possibly ‘bank’ it for a time when a club needs an extra unit. Hospitality Representation will then ask the clubs and do whatever we can to assist, if possible.

What happens to the units that are not occupied?

The resort is paid for the units for the term of the lease whether or not they are used. Hospitality Representation will not ask for any credit for unused units.

How can Hospitality Representation or the clubs afford to pay for units whether or not they are used?

Caribbean Representation, Hospitality Representation’s parent company, spent many years ‘experimenting’ with this program to get better acquainted before we committed fully.

Units are only leased by HR after it has obtained a specific commitment from the clubs. Hospitality Representation takes no risk because we only lease units where we have a commitment from the clubs to lease the units from us. Once we accept a property into the program, we get a commitment from the various clubs that we have agreements with. Only after that do we give the resort the final number and the lease agreement for everyone’s signature. Since the vacation clubs we work with are major companies which have been around a long time with a great track record, we have no risk. We also have long relationships with them through our affiliated companies.

The clubs are willing to take the risk of contracting long term as they will contract for fewer units than they feel their members can fill. Their members pay a significant up-front fee to join and an annual fee. Some leases are well below what the member pays in their annual dues and others are significantly higher. These balance out. Unreserved weeks are offered back to their members to help offset costs. Members also pay for other services where the clubs can earn income. The clubs have been doing this for decades and are extremely good at what they do.

Hospitality Representation and our affiliates assist the clubs with trading weeks between themselves so the clubs can minimize losses from unoccupied weeks.

What if a member stays less than a week or checks in or out on a different day?

The member reserves the unit for 1-week intervals. Any unused days are forfeited by the member. Resorts are free to re-rent that time with no obligation to Hospitality Representation LLC.

What about members desiring additional nights?

The clubs only offer their members accommodations by the week on the agreed fixed days. If a member desires to extend by arriving before or staying longer, they must contact the resort to reserve the added time through them. There are no commissions due to Hospitality Representation and is a source of additional revenue to the resort. Since the units are not specific, the resort can use their own inventory management to maximize their gains.

Who are the members?

There are certainly exceptions, but the majority of the Wholesale Vacation Club Members are from the mid-west region of the USA. They are expecting at 3-star rather than a luxury type stay, but they are expecting to have a nice experience. Most are pretty easygoing and not complainers. The majority have been members for a long time and know what to expect. Many of the properties have reported that overall the members seem to be easier to deal with then their typical guests. As members, they are generally frequent and experienced travelers. They are not expecting a “once in a lifetime” type of event that typically infrequent vacationers anticipate. Of course, we all get the occasional difficult guest. In our experience, those tend to be new members that do not know what to expect as they did not read or pay enough attention.

Can Hospitality Representation request additional weeks?

Often a club will need more units for a specific week. Generally, Hospitality Representation attempts to arrange trades between the clubs. For example, one club needs an extra week at your resort and another club has a week but needs an extra week at a resort in a different location. Occasionally, Hospitality Representation may just ask the resort if they have that week available and if they are willing to give it to Hospitality Representation in exchange for a pro-rated equivalent to what Hospitality Representation is paying for the other units. This is entirely up to the resort. There is no obligation. The resort can also offer the week for a different price if they desire. Again, there is no obligation for the resort to provide any additional units. This should always be a mutually beneficial relationship.

Will this interfere with the resorts agreements with certain OTA’s that require their pricing to be the lowest?

While we do not know what your specific agreements are with the suppliers that you work with, we have found that the typical agreement with the OTA is not a lease and is only a marketing agreement based on individual reservations. These are totally “different animals” and should not interfere with each other. Of course, we cannot give legal advice, so any legal matters should always be discussed with counsel.

Is this an allotment?

NO! Allotments can be dangerous for a resort and generally have little benefit other than to attract a wholesaler to promote the resort. Allotments generally have no commitment from the wholesaler or OTA. Unused inventory on allotments generally are returned to the resort near arrival and not paid for. The resort has little time to try to resell. They have little benefit to the resort during low season as allotments may be filled or even oversold during peak times when the resort may not need the business.

The leasing program is an actual lease of a number of units that the lessee must pay to the resort whether or not they are used! The resort technically has 100% occupancy for those units. They cannot be oversold by Hospitality Representation during peak or any other times and, if Hospitality Representation does not fill them, the resort still gets paid! There is no risk to the resort.

When Are these considered Long or Short-Term rentals?

Hospitality Representation LLC leases units on a long-term basis. The lessee is Hospitality Representation LLC, a corporate rental. Most jurisdictions do not consider these to be short-term rentals and are generally not subject to hotel tax. This is comparable to a company leasing a condo by the year and for use by their employees, clients, etc.

It is the responsibility of the resort to investigate any legal requirements in their jurisdiction.

When do the leases go into effect and how long are they for?

Club budgeting generally is determined around June, with leasing expected to be completed by the end of August. Additional leases are accepted during other times but subject to available added budgets at that time and may begin with fewer units.

Leases will not begin for at least 4 months from signing so that the clubs can assimilate the new property into their systems and marketing to their members. Clubs need sufficient time to ensure their members are notified of new properties in time for the members to plan their vacations.

For efficiency, all leases run through December or the beginning of January. Initial leases are for 2-year terms with renewals being 2 or 5-year terms as agreeable with the property. Renewals are signed by August 31 of the preceding year. Occasionally, initial leases may commence sometime mid-year and will run for more than the normal 2-year period.

Our clubs spend a considerable amount of money to introduce a new property while initial occupancy is low. Their break even tends to be 2 years.

Does Hospitality Representation deal with other travel companies besides clubs?

Yes, Hospitality Representation has a division that arranges similar transactions with other travel companies around the world. If the resort would like Hospitality Representation to assist them with similar consolidation and/or other representation services, please speak with your Hospitality Representation account manager.

Can Hospitality Representation assist resorts with their Off Season?

Yes, Hospitality Representation and our affiliates have several programs that can assist resorts in helping to fill off season. These are different than the leasing program. Please speak with your Hospitality Representation account manager for more information. These programs are generally only available to resorts that are in one of our leasing programs.

Do we have any obligation to provide our best units or location?

No, you are free to assign units that work best for you. They do not have to be in any specific location or be your top units that would produce more revenue for you. The units you provide must meet standards of the clubs according to what you represented to us.