6th Sem l Front Office l Solved Papers l 2014-15

Question 1 : Briefly describe the concept of revenue management and discuss its importance in hospitality business.

Revenue management (rm) is the art and science of maximizing revenue under variable conditions.  It is a management tool that has the objective of increasing sales revenues by manipulating the prices at which fixed products are made available for sale in relation to the current and forecasted demand. The essence of this discipline is in understanding the customers’ perception of product value and accurately aligning product prices, placement and availability with each customer segment.

A commonly accepted definition of revenue management is to sell:

• The right product
• To the right customer
• At the right time
• For the right price
• Through the right channel

The terms revenue management and yield management are often confused, yet there is a key distinction between the two disciplines.  Whereas revenue management involves predicting consumer behavior by; segmenting markets, forecasting demand and optimizing prices for several different types of products, yield management refers specifically to maximizing revenue through inventory control.  Thus, “yield management” Is a tactical application within the broader field of “revenue management”.

Benefits of revenue management

There are a lot of benefits associated with the use of revenue management in the hospitality sector, especially in hotels.these benefits included the following:

1. Improved forecasting: Revenue management helps improve forecasting.
2. Improved seasonal pricing and inventory decisions: It helps in deciding the season and off-season pricing for accommodation products and also in making important inventory decisions like renovations.
3. Identification of new market segments: Newmarket segments can be identified on the basis of revenue management.
4. Identification of market segments demands: The demand of the targeted market segments can be identified with yield management.
5. Enhanced coordination between the front office and sales divisions: As the two-division work together to forecasts and manage revenue and yield, it helps enhance coordination between them.
6. Determination of discounting activity: Yield management helps determine the amount of discount to be offered, depending on the dates and periods.
7. Improved development of short-term and long-term business plans: Revenue management helps develop business plans as the management can forecast the revenue that cab is generated and take measures to generate those figures.
8. Establishment of a value-based rate structure: It helps define rates structures, based on perceived values.
9. Increased business and profits: Good revenue management helps increase revenue and profits.
10. Savings in labor costs and other operating expenses: As most of the revenue management tools are computerized, it helps in saving labour costs and other operating expenses.   

Or From the information given below, calculate the following:

(i) Potential average single rate

(ii) Rate spread

(iii) Potential average rate

(iv) Room rate achievement factor

(v) Yield

Total no. Of rooms 200 Current ARR. 1,200/- Current average occupancy 80% No.Of single rooms 50 No. Of double rooms 150 Tariff of the single room As single occupancy rs.1,500/- and as double Occupancy rs.2,000/- Tariff of the double room as single occupancy rs.2,000/- and as double Occupancy rs.2,500/- Multiple occupancies 50%.

Given ,

Total ROOM = 200

ARR = 1200 Rs.

Occupancy percentage = 80%

Single room = 50

Double room = 150

Tariff of Single : as single = 1500

as Double = 2000

Tariff of double : as single = 2000/-

as double = 2500/-

Multiple occupancy = 50%

Potential Average Single Rate = (Single Room Revenues at Rack Rate) /  (Number of Rooms Sold as Single)

=(50 * 1500) + ( 150 *2000)/200

=3,75,000/200

=1875 Rs.

Rate Spread = (Potential Avg. Double Rate) – (Potential Avg. Single Rate)

=(50*2000)+(150*2500)/200

=4,75,000/200

=2375 Rs

Therefore, Rate Spread = 2475-1875

=500 Rs.

Potential Average Rate = (Multiple Occupancy Percentage x Rate Spread) + (Potential Average Single Rate)

= (50%500)+1875

=250+1875

=2125 Rs

Room Rate Achievement Factor = (Actual Avg. Rate) / (Potential Avg. Rate)

=1200/2125

=0.564

=56.4%

Yield Statistic = Occupancy Percentage x  Achievement Factor

=80% * 56.4%

=0.4512

=45.12%

Question 2: Describe some of the potential high and low demand tactics used by a transit/airport hotel.

 Revenue management strategies differ during high demand and low demand periods.

High demand  

During the high demand periods, as indicated the forecast, the management would use the following tactics:

1. Close or restrict discounts to generate more revenue.
2. Apply a minimum length of stay restrictions carefully.
3. Reduce group room allocations as a group gets very low room rates.
4. Apply deposits and guaranteed to the last night of stay.
5. Select dates that are close to arrivals.
6. Apply rack rate to a higher category of rooms like suites and executive rooms.
7. Consider the rate increase in packages instead of giving more discounts.

Low demand

During low demand periods, as indicated by the forecasts , the management would use the following tactics:

1. Sell value and benefits like spa treatments.
2. Offer packages and special offers.
3. Keep discount categories like advance purchase rates, corporate rates open.
4. Encourage upgrades.
5. Offer stay-sensitive price incentives.
6. Remove stay restrictions.
7. Establish relationships with competitors.
8. Lower rates to attract more guests to generate more revenue for the hotels.

Question 3: Discuss the role of exchange companies in the growth of timeshare business world-wide.

Exchange companies

The exchange system: The basic concept of timeshare allows the purchaser of a block of time to take holidays in the same apartment or other lodging, at the same time of the year for the duration of his agreement with the resort. The one drawback of the basic idea is its inflexibility.

The exchange concept allows the purchaser of a timeshare interest at one resort to exchange it for another interest owned by someone else at another time and or place. Access to an exchange system is widely recognised as one of the principal motivations for the purchaser of timeshare. In most cases, the purchaser of a timeshare interest usually becomes a member of an exchange company automatically after the purchase, which is when the developer enrols him/her to the exchange network. 

Two types of exchange exist:

1. Internal
2. External.

Internal exchange takes place when an owner exchanges a week at his/her home resort for another week at the same resort.

External exchange occurs when an owner swaps the week at the home resort for a week at a different resort with which the owner has no direct connection.

The exchange companies, using a system of equivalencies, administer both internal and external exchanges, the latter are the major part of an exchange company’s operation, and the resort developer or manager can also manage the internal exchanges. In the majority of the cases an exchange fee is payable for every week or reservation made.

The classic exchange system has been based on one week intervals, however the exchange companies have developed new systems to provide more flexibility to the timeshare product, such is the case of the points system and holiday clubs.

 Exchange agencies 

Two largest are

1. Resort condominiums international
2.  Interval international (ii – a subsidiary’ of USA interactive).
3. Trading places is another international exchange company.

They have resort affiliate programs and members can only exchange to affiliate resorts. It is most common for a resort to be affiliated with only one of the larger exchange agencies, but it isn’t rare to find a dual affiliate resort. Together they have over 7,000 resorts. The timeshare resort one purchases determines which of the major exchange companies can be used to make exchanges. RCI and ii charge a yearly membership fee and fees for when they find an exchange. They also bar members from renting weeks for which they already have exchanged.

For a resort to be affiliated with a holiday exchange company, it must fulfill certain criteria such as on-site facilities, quality standards, size of the units, on-site amenities, unit furnishings, and safety requirements. Owners are now opting for features such as large screen tv sets, fully furnished kitchens, balconies, jacuzzis, internet services, etc.

Timeshare was a new concept in India 15 years ago, and many marketers entered the game to make a quick buck. To make things worse, there was no legislation to protect investors and as a result, the timeshare concept in India had a negative connotation. However, in recent times, because of tighter regulations and protection to investors, the timeshare business is growing 25% year on year.

Facts and figure

• Number of timeshare companies 40
• Number of resorts        80
• Timeshare memberships    200,000
• Annual additions        15,000
• Number of units        4000

Q.4. Explain with example any two of the following terms:

(a) capacity management

(b) discount allocation

(c) duration control

(d) revenue management software

Duration control

Places time constraints on accepting reservations in order to protect sufficient space for multi-day requests on high price – “a reservation for a one-night stay might be rejected, even though space is available that night”

Strategies dealing with room availability are as follows:

1. Minimum length of stay: Requires that a reservation must be for at least a specific number of nights. Some resorts use the approach during peak occupancy or hotels during special events or high occupancy periods.

• Closed to arrival: Strategies allow a reservation to be taken for a certain date as long as the guest arrives before that date e.g. 100 arrivals on 30th July, therefore, any arrival on 28th and 29th is accepted that will stay till or after 30th July.

• Sell through: Strategy works like a minimum length of stay requirement except that the length of the stay can begin before the date the strategy is applied e.g. If a 3-night sell-through is applied on Wednesday, then the sell-through applies on Monday, Tuesday, and Wednesday. Arrivals on each of those days must stay for 3 nights in order to get accepted. It is effective when 1 day is peak and management does not want the peak to affect either side reservation.

All the three strategies may be combined together e.g. Duration control can be combined with discount allocation and so on.

Revenue management software

The most effective way of handling data and generating yield statics is through a computer. Sophisticated revenue management software is available that can integrate room demand and room price statics and can stimulate high room revenue-producing scenarios. The software provides information and supports managerial decisions. Computer store, retrieve, and manipulate large data and can help management create models that produce the probable result of the decision. Decision models are based on historical data forecast and booked business.

Or (a) a hotel, which is currently operating at 75% average occupancy and with an ARR Of rs.5,000/- is planning to increase its ARR To rs.6,000/-, What occupancy percentage it must achieve to obtain identical yield percentage.

Given ,

Occupancy percentage = 75%

ARR = 5000 Rs

Proposed ARR = 6000 Rs.

Then ,

Identical Yields Occupancy = (Current Occupancy %) * (Current Rate / Proposed Rate)

= 75% * 5000/6000

=25/40

=0.625

=62.5%

(b) if the same hotel has the marginal cost (cost per occupied room) of Rs.500/- and the hotel plans to offer an off-season discount of 20%, what would be the equivalent occupancy percentage needed to get the same level of net revenue?

Given ,

Marginal cost = 500 Rs

Discount Given = 20%

Equivalent Occupancy = (Current Occupancy Percentage) * ((Rack Rate – Marginal Cost) / (Rack Rate * ((1 – Discount Percentage)) – Marginal Cost)

= 75% * ( 5000-500) / (500(1-20%))-500

=0.75 * 4500 / 5000(0.8)-500

= 0.75 * 4500 / 4000-500

=0.964

=96.42 %

Q.5. Write short notes (any five):

(a) Revpag

(b) wash factor

(c) displacement of fit business

(d) hurdle rate

(e) discount grid

(f) close-to-arrival

(g) group booking lead time

Revpag

Revenue per available room is a metric used in the hospitality industry to measure hotel performance. The measurement is calculated by multiplying a hotel’s average daily room rate (ADR) by its occupancy rate. It is used to assess a hotel’s ability to fill its available rooms at an average rate. It is important because it helps hoteliers measure the overall success of their hotel.

Formula of Revpag

The Revpag formula is: Revpag = total revenue / number of guests

Wash factor

The wash factor is the hotel’s estimate of no-shows plus cancellations and early departures. This means that a guest has a guaranteed booking at a hotel but the hotel will not be able to accommodate the guest for that night. Therefore, the guest is “walked” To an alternative hotel facility.

Group booking data

 Groups tend to block 5-10% percent more rooms than they are likely to need. If a group has a previous business profile, management can often adjust the block on the basis of the group’s booking history. The hotel’s deletion of unnecessary group rooms from a group block is called the ‘wash factor’.

Hurdle rate 

Any room cannot be sold for more than its rack rate. Generally, rack rates are offered to walk-in guests, but the front office manager must also set the lowest rate for a given date based on the demand. This lowest rate is called hurdle rate. Any room can be sold at a price above its hurdle rate. 

The hurdle rate is usually determined by evaluating existing opportunities in operations expansion, rate of returns for investments, and other factors deemed relevant by the management. Hurdle rate will help in informing that which rooms should be sold to whom, when and at what price to achieve maximum profitability for a hotel

Close-to-arrival

CTA stands for closed to arrival. It is a yield tool used to close days from reservations arriving on a particular day. When requesting a stay on the hotel’s website, with such a day as check-in date, it will show as not available. However you can book rooms arriving before and stay through such date.

A close to arrival is a restriction that is applied to a rate plan and limits the booking of arrival on that date. For events like christmas, this feature helps properties which avoid check-ins on these days.

Group booking lead time  

Booking lead time is the period of time between when a guest makes a reservation, and the actual check-in date.

If a guest makes a reservation on march 1 and the check-in date is mar 30, then the booking lead time for that reservation is 30 days.Alternatively, if a guest makes a reservation on the same day as check in, then the booking lead time is 0 days.

Dual affiliate resort

 It is more common for a resort to be an affiliate with only one of the larger exchange agencies. RCI is the largest with over 3800 resorts split between its weeks and points programs. Ii has more than 2000 resorts. It is important when considering timeshare ownership to consider which locations and resorts you may want to travel to before making your purchase because the timeshare resort you purchase will determine which of the major exchange companies you can exchange through.

Q.6. (a) who are the members of the yield management team and how they Contribute in achieving the goal? Explain.

 Revenue management team

In the hospitality industry, it is essential to have a revenue a management team in place to capitalize on the market and profits. There is more competition than ever in the industry as well as more channels for travellers to book. Revenue management is the process of using data to predict consumer behaviour in order to enhance product availability and increase revenue.

For example, Fred is the general manager of a local hotel. He needs to know the probability of selling out next week. His revenue management team provides him with data including pricing of competitors, the demand in the market, and availability in the market. This helps Fred decide on pricing for this hotel in order to maximize his revenue.

The revenue management team can consist of a revenue manager, operational management, the sales team, and the line level employees. We will take a look at how each member of the team plays a role in the revenue management of the business.

(b) “revenue management software cannot take the place of an experienced manager”. Elaborate on this statement.

 The employee has a part in revenue management within their organization, but the specific role of the revenue manager provides the catalyst for formalizing and coordinating the revenue management activity with specialist analytical skills.

These are the following activities which can not be done by the computers system :

Attention to detail: The computer system can make mistakes if the data input is not properly, and the reports can be faulty, therefore it is an important requirement of the experienced person to have a look at the work.

Numerical skills : The computer can not the numericals by its own, it needs human assistance.

Understanding of distribution channels: The computer can not understand anything unless and until the raw data is feed to its storage.

Customer relations: The computer can not make customer relations as the machines can not talk to the human .

No scope for personal selling:The computer can not talk to the people , hence no scope of up selling and upgrading.

Lack of personal touch in the service ; the machine can only work on the set instructions given , it can not think of itself .

Lack of wow feels: As the computer works only on the database saved in the drive, therefore it can not talk and understand the customer’s needs and wants.

Ability to make decisions: The computer can never ever make its own decisions unless and until instructions given by the humans, where the experienced manager knows what steps to be taken on what time and how it will going to affect the sales and the revenue.

Computers cannot show or understand fear, or desperation or love or passion. As complex as computer hardware and software get, they just can’t crack the complexity of genuine emotion, which is very important for guest delight.

Computers also can’t come up with their own creative ideas.

The computer will not be able to change this itself. The only way that a computer can change or improve is with human intervention, like when a user decides to upgrade certain aspects of the system.

Q.7. List and describe the different types of timeshare options.

 The world tourism organization defines timeshare as: “the advance purchase of time in holiday accommodation. The purchaser pays a capital sum to acquire the timeshare and then pays an annual contribution towards the maintenance of the property. The period of time sold is usually based on modules of a week.”

A timeshare is a form of vacation property ownership. With timeshares, the use and costs of running the resort are shared among the owners. While the majority of timeshares are condominiums or cooperatives at vacation destinations, developers have applied the timeshare model to houseboats, yachts, campgrounds, motor homes, cruises and private jets.

Types of timeshare contracts:

Deeded vs. Right to use: A major difference in types of timeshare ownership is that between deeded and right to use contracts.

 Deeded contracts the use of the timeshare resort is usually divided into week-long increments and these are sold as fractional ownership and are real property. As with any other piece of real estate the owner may use his or her week, rent his or her week, give it away, or leave it to his or her heirs. 

While this form of ownership can offer additional security to the owner as a form of physical ownership, deeded timeshare ownership can be as complex as outright property ownership in that the structure of deeds varies according to local property laws with the right to use contracts, the timeshare purchaser has the right to use the property in accordance with the contract but at some point of time, the contract ends and all rights revert to the property owner.

 In other words, the right to use contract grants the right to use the resort for a specific number of years.

Timeshare ownership (fee simple): Here, the purchasers jointly invest in a property, allocate interests to each owner, and employ a manager to run the unit which has attached amenities, services, and recreational facilities.

Club agreement: This involves the ownership through purchases of shares of which shareholders receive points in proportion to the value of the investments. These points entitle them to the use of an apartment at any time of the year. This concept is very popular in Switzerland and France (club hotel timeshare group which is part of club meditation).

Or What are the advantages and disadvantages of timeshare business? Timeshare business is fast developing in the developed as well as developing world. In our country’, it has started late but the concept is catching up with the world.

Advantages of timeshares

A. Vacation ownership – a fast growing tourism brand

B. Promotes all types of tourism -inbound, outbound and domestic tourism

C .theme-based leisure tourism that satisfies consumer needs

D .high potential for employment opportunities

E. Domestic tourism- the catalyst for india’s tourism growth

F. Full potential of domestic tourism—to be exploited by industry and government partnerships

Advantages of timeshare can be broken down to benefits to:

1. Community
2. Developer
3. Owners

A. To community –

• Employment opportunities for locals
• Repeat visits, if not of same guest, then of exchange guests
• Improved economy- increased spending by visitors

B. To developer-

• Increased level of occupancy
• Overall profitability – through renting out
• Annual maintenance fee from each owner – each property being able to be sold 52 times (in 52 weeks)

C. To owners–

• Options of new destinations every year
• Payment of maintenance fees guarantees that all community areas will be well maintained
• Enjoy spacious accommodation
• Can get friends & relatives without extra costs or ‘per head basis as is valid in hotels
• Can sell their interests when they want
• Limits costs and expenses associated with ownership such as taxes, insurance, etc.
• Costs of maintaining the property are distributed over a larger number of owners

Reducing the worries and costs associated with it can have a worldwide “bonus time” Available – these are extra weekends through exchange companies. These weeks require no payment of maintenance fees and can be used often and can be absolute bargains.

Disadvantages of timeshares:

The biggest disadvantage of the timeshare business is that it is still not well organized and the major portion of its cost is being spent on marketing.

There is a rough estimate that of the actual cost/price of the timeshare unit, 18-20 % is the actual cost of the unit and the remaining is divided among sales and marketing (33%), maintenance, upkeep, and other costs (27-30%) and the remaining 20 % is the profit. That means that a customer who buys the unit gets only 20% of the price value and is required to pay a yearly maintenance fee as well as daily service charges for actually staying in his own unit and using services like telephone, cable, swimming pool, common areas, etc.

1. Marketing: Since it is not an essential requirement of the buyer and it is an unconventional package holiday product not easily available for viewing, the marketing and sales techniques of the resort developer may be and have been aggressive, causing a lot of opposition in the market.
2. Damage to local societies and the environment especially in overcrowded and undeveloped destinations.
3. Maintenance fees have to be paid annually and can keep increasing every year, the customer ends up paying more than he wants or had assumed.
4. Resale of timeshare units is not very easy because the value of the unit depreciates quickly because of the volatility of the real estate market. So, the owner may cover his costs with no profits when he decides to sell his interests in the unit.
5. There may exist fierce competition for the most desirable locations and certain periods of the year so the client may be disappointed very often.
6. The client’s/owner’s money gets tied up in something he can’t use for the moment.

Q.8. What do you think are the reasons for the unimpressive growth of the timeshare business in India and also recommend some possible solutions or remedies?

An advertisement released by a ski resort owner in the french alps encouraging consumers to ‘buy the hotel’ than ‘rent a room’ started the revolution in the world of holidays and “the timeshare” Concept was born”.

The timeshare or vacation ownership strategy or concept has recently become very popular and timeshare properties are another preference of vacationers. It is an expanding part of the hospitality industry. It is spread across countries with the biggest brands being a part of the growth-

Inthe u.s:   Hilton, marriott, hyatt, disney, starwood.

In europe:   Sol melia, pestana, awana,

In malaysia:   Berjaya, swiss garden

In south africa:  Southern sun

The world tourism organization defines timeshare as: “the advance purchase of time in holiday accommodation. The purchaser pays a capital sum to acquire the timeshare and then pays an annual contribution towards the maintenance of the property. The period of time sold is usually based on modules of a week.”

A timeshare is a form of vacation property ownership. With timeshares, the use and costs of running the resort are shared among the owners. While the majority of timeshares are condominiums or cooperatives at vacation destinations, developers have applied the timeshare model to houseboats, yachts, campgrounds, motor homes, cruises, and private jets.

Important features:

• These properties are normally found in resort areas – hills and beaches, etc. Which offers an attractive climate and a variety of recreational amenities throughout the year.
• Vacation ownership properties typically involve individuals who purchase the ownership of accommodation for a specific period of time- one or two weeks or more, in a year usually at a one-time price. The lifetime term of timeshares varies from 20, 25, 30, 50, or 60 years. This means, for example, the owner has the right to the property for one week every year for 25 years.
• The timeshare business is divided into 52 weeks and each week is a unit. The price of the unit depends on the season for which one is buying a unit. For different resort locations, the peak and low seasons will vary depending on the demand. In hill stations, the summer may be the peak while for a ski resort the winters will be the peak season. The seasons are usually designated with color codes and a resort may use different colors to describe peak and low seasons.

Timeshare in India

Timeshare was a new concept in india 15 years ago, and many marketers entered the game to make a quick buck. To make things worse, there was no legislation to protect investors and as a result the timeshare concept in india had a negative connotation. However, in recent times, because of tighter regulations and protection to investors, the timeshare business is growing 25% year on year.

Facts and figure:

• Number of timeshare companies 40
• Number of resorts 80
• Timeshare memberships 200,000
• Annual additions 15,000
• Number of units 4000

Role of the government and industry

The role of the government is that of enabling and introducing regulatory legislation for timeshares and condominiums. There is a need to organize trade associations to endorse standards and codes of ethics. The industry must ensure self-regulation, a code of ethics in business conduct, and overall excellence in products and services.

The government must take the following steps in order to encourage the growth of timeshares:

• industry recognition

•project and operational incentives

•regulator)’ framework

•selective infrastructural support

•utilize industry potential to drive domestic tourism

Solution to uplift the timeshare in Indian market is Marketing of timeshares:

The demographic characteristics of time share owners are:

• Upper middle-income group
• Middle-aged
• Married couples

The marketing of timeshares has proven to be very difficult because of the product itself and the aggressive and sometimes misleading means adopted by most timeshare marketing companies. As a product, timeshare is considered to be a luxury product that is not essential for the consumer, so there is no demand for it. This has made the marketing efforts to be rather aggressive and hard selling that discourages many prospective buyers.

Marketing of time-share usually has two major stages:

A. Lead generation

B.sales presentation

A. Lead generation: This embraces the steps taken to invite the prospective purchaser to the site to view the product. This may be done through:

• Off-site personal contacts or off property contacts (optics)
• Direct mail
• Tele-marketing
• Iv. Referral
• V. Print/electronic media
• Vi. Mini- vacations
• Vii. Hotel lead generation

Out of these the most common are:

• Direct marketing, through direct mail and telephone marketing is usually used to generate leads. The marketing companies acquire potential customer databases in order to target them. The customers can be sent brochures, etc. While some may receive information of winning a free gift to be collected in person from the marketing office, where they can be exposed to the product or be given a sales presentation.
• Off property contacts (opcs) can be used in on-site properties in the resort area. Marketing reps. Can invite people at a shopping mall, bazaar, etc. And invite them for a sales presentation where free incentives may be offered.
• Offering mini-vacations are also a popular incentive used to create interest in the proposal. The buyer gets a chance to experience the product and survey the site up close.

B. Sales presentation: Following lead generation done by marketing, the sales presentation is conducted either in the company’s office or on site. The presentation may take 2 to 3 hours and includes visuals of the property and discussion where the sales rep tries to persuade the prospect to buy the product. The buyer must not only sign the contract but he must be satisfied with the purchase and continue with his payment obligation.

So, the marketing department follows the following rules for selling the timeshare properties:

1. Creating a demand for the vacation ownership product to be sold.

2. Generating enough interest so that the prospect participates in a sales presentation. In other words, marketing is responsible for bringing a qualified prospect to the sales person so the sale can occur.

3. Sales arc responsible for persuading the prospect to sign the contract and actually purchase the vacation ownership product. In vacation ownership effective selling means more than a signed contract. The buyer must be satisfied with their purchase and continue with their payment obligation. So the marketing is responsible for bringing a qualified prospect.

Or Differentiate between (any two):

(a) deeded time share and right-to-use time share.

(b) exchange company (RCI) and vacation clubs (Disney).

(c) floating time share and rotating time share.

(d) time-share and condominium

(a) Deeded time share and right-to-use time share.

Deeded time share	Right-to-use time share
Deeded ownership is like traditional real estate ownership in the sense that once you purchase the timeshare, you own it for the rest of your life or until you sell it.	Right to use (rtu) ownership is a system in which you purchase the right to use a specific unit or week at a resort for a set period of time (often between 10 and 50 years).
At resorts that sell deeded timeshares, once all the units and weeks have been sold, an hoa typically controls the operations of the resort on behalf of all the individual owners.	The expiration date for your rtu timeshare is written into your contract, at which time you are no longer legally responsible for the timeshare.
A deeded property timeshare can also be rented, given away, bequeathed to heirs, or sold at the owner’s discretion.	With the right to use system, control of the resort never passes to an hoa or other management group; instead, it remains in the developer’s control.
If the developer goes into default or goes bankrupt, with a deeded property you would still own your fraction of the property.	However with a right to use you never had an ownership of the property and would lose the ability to use the program in most cases.
With a deeded property the owner has a voting right to maintenance and operations within that resort.	The right to use properties, however, have little to no control over many things, including increasing annual fees, or imposing special assessments.

 

 

 

Timeshare	Condominium
When purchasing a timeshare, you choose a specific location and set a week or two you will use your vacation home each year.	In purchasing a condo hotel, you have the flexibility to use your unit whenever you want, though there are usually restrictions that prohibit making it a permanent residence.
In choosing a timeshare, your amenities may be limited to use of the swimming pool and other common areas	Choosing a condo hotel provides you access to those amenities as well as those you would traditionally find at a luxury hotel such as restaurants, lounges, spas, exercise facilities and bars.
At a timeshare, you’re responsible housekeeping and unit upkeep during your stay	Similar to a hotel, you have access to daily housekeeping, maintenance services, room service and more.
Owning a condo-hotel gives you deeded ownership of the property.	With a timeshare, you’re only purchasing one to two weeks of usage.
During the time you’re not staying at the timeshare, you can’t generate any revenue, unlike a condo-hotel.	When not staying at a condo hotel, your unit can be entered into the management’s rental program.

Q.9. Write short notes (any five):

(a) Airda

(b) timeshare points program

(c) the registry collection

(d) studio apartment

(e) secondary time share market

(f) master deed (condominium)

(g) interval international

(h) dual affiliate resort

(i) non-residential condominium

Airda 

 In India, in 1998, RCI and a group of leading resort developers got together and set up Airda – All India resort development association, a national body that would work keeping in mind the long-term interests of the consumer and the vacation ownership (timeshare) industry. This association has systematized and implemented a code of ethics that arc all-pervading and governs the vacation ownership industry in India.

So the Airda is a self-regulatory body. The primary responsibility for Airda is to increase the share of timeshare in the hospitality industry-

• by getting more committed players

•by regulating consumer rights

•by getting more families to holiday

•by getting more families to holiday longer

Timeshare points programs 

Timeshare points programs are systems set up by resorts to allow individual members to use for internal trading within the resort network. When you buy timeshare points, you frequently buy them at your home resort to set a basis for equivalency. Then, depending on how many points you have, you can trade with other resorts in the network.

For example, if you buy timeshare points at a resort in orlando, you may be able to use your points to go to a timeshare resort in hawaii instead.

You can often buy additional points, or pay the difference if you wish to go to a resort that is worth more than the points that you have.

Studio apartment 

A studio apartment is comprised of a single large room which performs multiple functions of a living room-cum-dining area-cum-bedroom and a kitchenette, except for a separate bathroom .

Studio apartment, a popular single-room unit in the west, is fast catching up in the indian real estate. Also referred as studio flats, bachelor-style apartment or efficiency apartments, in india they are synonymous with a one-room-kitchen dwelling.

Benefits of studio apartments :

Smart living

Easy on pocket

Ideal for bachelors

Master deed (condominium):

A document used by condominium developers to record the project;its division into condominium ownership;and the grant of common areas to the condominium owners.also called the declarations,the condominium declaration,or the declaration of condominium.

Non-residential condominium 

The condominium building structure is divided into several units that are each separately owned, surrounded by common areas that are jointly owned. Condominiums are a type of common-interest development (CID).

Condominium ownership is also used, albeit less frequently, for non-residential land uses: offices, hotel rooms, retail shops, private airports, marinas, group housing facilities (retirement homes or dormitories), bare land (in British Columbia), and storage.

The legal structure is the same, and many of the benefits are similar; for instance, a nonprofit corporation may face a lower tax liability in an office condominium than in an office rented from a taxable, for-profit company. However, the frequent turnover of commercial land uses, in particular, can make the inflexibility of condominium arrangements problematic.

Q.10. A Translate the following sentences into English

(i) je voudrais changer 1000 dollars.

(ii) pardon, je n’ai pas compris.

(iii) vous pouvez répéter, s’il vous plaît?

(iv) l’hôtel est devant la gare.

(vi) vous voulez lui laisser un message?

 (i) je voudrais changer 1000 dollars.

   I’d like to change 1000 dollars.

(ii) pardon, je n’ai pas compris.

 I’m sorry, i didn’t get it.

(iii) vous pouvez répéter, s’il vous plaît?

You can repeater, if it pleases you?

(iv) l’hôtel est devant la gare.

 The hotel is in front of the station.

(vi) vous voulez lui laisser un message?

Want to leave him a message?

B. Match the french words in the left column with their correct meaning in the Right:

(i) logement	(a) identify card
(ii) reclamation	(b) expensive
(iii) cours	(c) accommodation
(iv) carte d’identité	(d) complaint
(v) cher	(e) exchange rate

 

 

(i) logement	(c) accommodation
(ii) reclamation	(d) complaint
(iii) cours	(e) exchange rate
(iv) carte d’identité	(a) identify card
(v) cher	(b) expensive