Archive for October, 2006

The simple one line answer is that we buy vacations in bulk and pass the savings on to our clients.  But you already knew that.  What you really want to know is how.  The answer is three fold; purchase; lease and trade. This week, I’ll focus on purchases.

Purchasing Properties One at a Time

Well, since we started the company we have been reinvesting in its future by purchasing condominiums.  We’d search vacation areas with the classified ads under our arms and sometimes a real estate agent in tow.  Back in the infancy of the company we bought condos one by one.

I remember one of our first big block purchases.  One of our competitors was leaving the condo vacation market and was selling 15 units at Myrtle Beach Resort.  We bought every one.

Even Employees Invest in Inventory

One of the most interesting parts of this story is that it’s not just the principals who reinvest in the company.  Our employees showed an early interest in purchasing condominiums.  They purchase in vacation areas that are important to them and lease them to the company until they are ready to retire or want to use them long term. 

Soon another group came forward; we call them friends of TAN.  They also purchase properties for lease to the company.  Having such broad involvement and support has certainly helped us to control larger numbers of vacation properties.

Reinvestment Is Ongoing

We just completed a purchase for 32 units in Wildwood, New Jersey.  This new property, the Esplanade, will meet the needs of many New Jersey shore vacationers next summer.  In the next 30 days we will also close on two more projects totaling about $7 million dollars.

Tina Dowd

Founder

Sundance Vacations

www.sundancevacations.com

Fees

Today I’d like to dispel the misleading rumor that after purchasing with Sundance Vacations, we surprise our unsuspecting clients with “hidden fees.”

Fees…Nope, They’re Not Hidden

Sundance Vacations provides informative group or individual presentations for all prospective clients.  Any fees are made apparent during each presentation.   The fees are introduced using a pre-developed slide presentation.  They are also written on a large display easel located at the front of the room.  Of course, the fees are disclosed in the contract but we also recap all of the fees in a straightforward one- page summary of the contract called the Consumer Disclosure Acknowledgement.   This one page summary makes it very easy for our customers to review pertinent details at a glance.

So, What are the Fees?

There are 4 fees that are not prepaid.  These fees are paid to Travel Advantage Network by the traveler when they use the vacations. 

1.      Annual service charge.  Many products and services have annual service fees similar to credit cards, country clubs, and gyms.  Our service charge can be paid annually or monthly at the convenience of our client.

2.      Processing Fee.  Clients pay a processing fee each time they make a reservation

3.      Peak Season Upgrade.  Clients purchase a standard package and only pay this fee when they travel during our peak season time.

4.      Additional Bedroom Upgrade.  Client may request a larger unit for an additional fee.

Fees, We’re Proud of Them

Have you traveled to the beach during summer, or taken a winter ski trip to the mountains?  Were you distressed at the inflated rates charged during those peak travel times?  Our clients now pay only $30.00 more per night when vacationing during our prime/peak season.

What about space? Have you ever needed more than one hotel room to accommodate your family?  Impersonal hotels charge full price for each accommodation and give you identical rooms connected by double locked doors.   Sundance clients may upgrade to a two or even three-bedroom suite (each extra bedroom sleeps two additional people) and at this time the cost is only $30.00 per night for each additional bedroom.

We view this as one of the great benefits.

Fees, How they Benefit Our Clients

We do not incur every expense upfront, so we don’t charge them upfront.  Our clients can hold onto their money longer, and only pay fees when they are incurred.  Because we collect fees, the corporation always has an incentive to fulfill vacation requests.  Collecting revenue over time through this fee structure ensures the company still has money coming in.  As a result, the fee structure functions as a built in protection for our clients.

Please Share

If you’d like to share on the corporate blog, please send your comments.  If you are interested in writing for our client blog (sharing your vacation experiences with other travelers) please email us at blog@vacmail.com or call me at 800-220-9400 x 130.

Kathy O’Mara

Communications Director