REAL ESTATE DEVELOPMENT IN RESORT TYPE AREAS THROUGH THE FRACTIONAL CONCEPT.
Fractional is a relatively complex and high-value product when compared to a traditional package holiday. As consumers look to buy a holiday experience, and not a complicated product, the marketing challenge for the fractional industry is to persuade consumers to take the time to understand fractional and the high-quality holiday experience that it offers.
encourage prospective purchasers to visit developments or attend sales presentations.
This is an effective technique when done well; but the industry has, in the past, been criticized for adopting high-pressure sales techniques which have undermined the image of the industry. To that end, once a resort has been completed, Saveene management can either be carried out by an owners’ committee, a specialist management company or the company itself.
Regardless Saveene will levy annual fees on fractional owners which typically cover cleaning and maintenance; utility charges; insurance; taxes; the operation of common facilities (such as tennis courts or swimming pools); and, usually, a sinking fund to provide for major redecoration or refurbishment.
The resort’s constitution also gives details of the owner’s rights and responsibilities in relation to their occupancy rights. Management organizations will work closely with exchange companies, so that the resort’s capacity is effectively utilized and its members have the maximum flexibility when choosing their holidays both at their resort and elsewhere.