Effective marketing is one of the most important aspects of the success or failure of Timeshare business. Problems faced in the marketing of Timeshare may be listed as below:
- Negative image of the industry: Some dishonest people in the industry who vanished after collecting money from members have created a negative image of the industry. This makes it difficult for the marketers to convince a customer to buy membership unless the timeshare company is backed by a very reliable brand.
- Large upfront payment: As advance taken as membership fees is relatively large it substantially reduces the total market size of the potential buyers.
- Intangibility: Hospitality experience is largely intangible as comfort, friendliness; courtesy etc. cannot be measured but only experienced. Marketer finds it difficult to convince the potential buyer as they cannot carry their product along with them but can only create a mental image or show pictures, video etc.
- Cost: Cost of marketing is relatively very high because company has to reach different cities in the country through their own executives and Timeshare product can not be sold through travel agents unlike in the case of conventional hotels.
- Lack of holidaying culture: In India holiday culture particularly the concept of leisure vacations is still in an infancy stage. This makes it difficult for marketer to convince the customer as there is no pressing compulsion on the buyer to purchase a holiday product.
- Uncertainty of future : As timeshare business is about selling a product for future use and the future itself is considered to be uncertain by most of us it creates a conflict in the mind of the buyer whether to buy this product or not.