Hotel Online Special Report 

 
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Timeshare Industry's Biggest Hurdle is No Longer Image,
But Rather Human Capital
Destination gaming communities are untapped markets for timeshare  developments
 
Record growth forces  timeshares to expand recruitment efforts 

By M.A. Baumann  H&MM Florida Bureau - November 1998

National Report-It wasn't long ago that when the word "timeshare" conjured up  images of a less-than-glamorous industry-in some instances a downright seedy  business.  However, today the timeshare industry's biggest hurdle is no longer image,  but  rather human capital. 

Timeshare companies-now referred to as vacation ownerships-comprise more than  5,000 resorts in 81 countries. The industry for years has been tapping into  traditional lodging venues for bright and talented managers, but with a drum-  tight labor market, now timeshares also are looking outside the industry for key  players to help lead their booming businesses into the millennium.  

According to Chris Larsen, director of communications for Washington-based  American Resort Development Assn., industry leaders universally agree that  employment deficiency tops the list of critical issues plaguing the business. 

"Talented people at all levels are at a premium, especially at the midlevel,"  Larsen said. 

Current conditions are favorable to attract solid candidates from both inside  and outside the industry. Capital is available, approval ratings are sky high  and respected hotel brands have added credibility and awareness to this  lucrative and complex industry, Larsen said. 

"We're doing a lot of things, trying to announce to the world that this is an  industry that's time has come," he said. "You're going to see people moving from  ancillary businesses to timeshare at the midlevel and highest levels." 

Sheldon Ginsburg, managing director of Shell Vacations in Northbrook, Ill., said  employee shortages is indeed the "single toughest part of our industry today.  There is no problem finding property or capital, but trying to find capable  people [is difficult]." 

A timeshare pioneer, Ginsburg entered the business in 1978 when it was  considered a "blue-suede-shoes industry. Now it is one anybody can be proud to  have his or her family in," he said. 

Shell Vacations' recruiting strategy for its 11 properties includes employment  ads in the Wall Street Journal as well as tapping into fresh talent from  unrelated industries such as real estate, banking and foodservice. 

"[We have to] train people and make people aware of the industry-that in itself  will bring good people to the industry," Ginsburg said. "A good sales or  marketing person can make 200 percent more [in the timeshare business] than in  any other area of hospitality." 

Jeffrey Adler, president and co-c.e.o. of Orlando's Vistana, said finding upper-  and midlevel professionals is a critical issue facing the industry, but once  they're in, and learn the complexities of the business, they usually don't leave, he said. 

"We spend a tremendous amount of time training and developing our people," Adler  said. "There's not a lot of challenge to retain employees once they come into  the industry. It's a very dynamic and fast-growth business. It's an exciting  story once they get here and touch it." 

Vistana utilizes search partners, hotel schools and a worldwide intern program  to target potential candidates. The firm also brings in hoteliers at all levels  from the traditional hospitality industry. Vistana's alignment with traditional  lodging brands has enhanced its status as an established vacation-ownership  leader. 

Adler said career opportunities at Vistana are wide open, particularly in the sales-and-marketing arenas. 

"They can earn a terrific income and learn terrific sales skills," Adler said.  "There is a constant need for good managers. We're growing 25 percent a year.  There is tremendous opportunity." 

David Matheson, Vistana's vice president of public relations, said Vistana also  is actively recruiting outside of the industry, particularly for positions that  don't require industry-specific knowledge.  "We're recruiting for engineers, construction and accounting [positions]-  basically those professions where the knowledge is transferable to this  industry, but not specific to this industry," Matheson said. "We found sitting  down with these people that didn't know this company, they certainly appreciate  the opportunities that a young public company can provide them, especially one  that is in a fast-growth mode such as ours."  For instance, the company recently hired a senior level executive from Pepsico  to head up Vistana's human resources. 

L. Nicolas Gray, president of Boca Raton's Bluegreen Corp. echoed the sentiment,  saying the "bench strength of this industry is shallow."  Formed in 1993, Bluegreen boasts more than 20 resorts in the southeastern United  States. 

"To date, we haven't had a problem finding good people," Gray said. "By  percentage, we are in the top two or three as far as growth development. This  says a lot to potential candidates. The people in our company-we're well-known  and highly regarded, we have a solid track record-people want to be associated  with a winner." 

Gray said the company traditionally has found success recruiting in the car  sales, insurance and education industries. He cited high monetary rewards,  upward mobility and the sheer challenge as appealing reasons to get into this  business at all levels. 

"For the most part [midlevel managers] come from outside the industry," Gray  said. "But we've also been fortunate to find sales managers with industry  experience."  Once hired, employees attend the Bluegreen Institute, the educational arm of the  company, where they learn the industry, corporate culture and plot their career  paths. 

Industry leaders hope to create a greater awareness of the industry's rewarding  career opportunities through hotel schools and universities. 

"As this industry grows, more people at the college level will learn about it  and will make a conscious effort to get into the timeshare business rather than  straight lodging," Ginsburg said.  For the first time, the University of Nevada-Las Vegas is offering a vacation- 
ownership management course taught by Resort Condominiums International 
executives. 

"We're also working with [other] colleges to develop curriculum at the  universities," Larsen said. "We want smart, talented people to consider this as  one of their options." 

Management staffing is an ongoing challenge, particularly in low unemployment  locations such as the Caribbean, the Carolinas, Georgia and Florida, said Bob  Gentry, chairman of the American Hotel & Motel Assn.'s Condominium/Vacations  Ownership Committee, and vice president of Eastern Resorts in Newport, R.I.  Gentry said the vacation ownership topic will be in the spotlight at the  upcoming AH&MA fall meeting in New York. Here, c.e.o's from six major  hospitality companies will gather for a first-ever general session on the state  of the vacation-ownership industry. In addition, the Educational Institute will  launch its first textbook focusing on condominium and vacation ownership. 

"I see this [session] attracting midlevel managers," Gentry said. "It's going to  peak the curiosity of those on the traditional [hospitality] side."
 

 
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Contact:
Hotel & Motel Management
website: http://www.hmmonline.com
Jeff Higley, Managing Editor
440-891-2654
email: jhigley@advanstar.com
 


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