Curt Knipe…on doing business in Mexico
[Editor’s note: We caught up with Curt at the GNEX Conference in Miami in February (2024). As publisher of Resort Trades, when I learned Curt had retired from his position as VP of Marketing & Sales at El Cid in Mazatlan, I begged him to write from his experience of 17 years of working in a luxury timeshare resort on one of Mexico’s finest coasts. He graciously acceded. I believe anyone considering entering the Mexican market will benefit from his wisdom. Thank you, Curt! We do appreciate you for having taken the time to share some of your wisdom! –Sharon Scott Wilson, RRP]
After 25 plus years of running Sales for two, large, branded timeshare companies in the U.S., I moved to Mexico in 2007 when the real estate/funding crisis hit. Perhaps naively, I came expecting to show them “how we do it” in the good ole’ U.S. of A. I would bring professionalism and proper sales techniques to the “wild west” of Timeshare. What I found was an incredible country that not only used a different language and had a completely different culture, but it also has its own way of “how to do it”. My first years were spent learning the language and culture and coming to understand why they did it their way. And over the last 17 years, I’ve learned why it made sense to blend the cultures AND the sales/marketing processes.
Mexico is an amazing country. The fusion of bright colors and intense flavors make this culture an experience to behold. The happiness and open generosity of its people make it fun and exciting to explore. And best of all, it literally shares its northern border with the US. We are neighbors and access is both easy and safe. Most people in the tourist areas speak some English and many speak it well. And if you’re looking for value, at 17-to-1, the peso gives you a lot of bang for your buck. Flights are readily available on all major US carriers and for very reasonable fares to most locals. So, it’s easy to see why travel here is very popular, cost effective and remains the number one tourist destination outside of the U.S.
The timeshare business is very different in Mexico. The biggest difference is in the basis of the product itself. Virtually all U.S. timeshare is deeded property. You pay real estate taxes, and you own it forever (In perpetuity). It can be willed, sold, or gifted. But the title must be transferred to relinquish or end responsibility for dues and taxes. Many owners struggle with what to do with their timeshare when it’s no longer needed or wanted. Conversely, virtually all timeshare in Mexico is membership based. Where benefits last for a specific period, on average 20 years. Many are points/weeks based and some have no required maintenance fees. This provides more flexibility and choices where members can design a product that fits their specific needs and desires. If you want points or weeks or just a significant discount on travel, there is a program for you. Pick a 10-, 20-, or 25-year period based on your age and vacation expectations or desires.
The other major difference for the timeshare product in Mexico, is the overall level of quality and service is significantly higher. The cost of construction and labor is much lower so villas are larger and constructed with high end finishes of wood and marble. The amenities are extensive, and the food is memorable. But the biggest difference is in the service. Large staff with friendly smiles are the norm. And daily maid service is still alive and well in Mexico. Live music is played in many restaurants and bars. I’ll never forget my first time at a resort here. We marveled at the fact they literally cut the grass by hand. And members love the fact that it’s the same employees who welcome them back home year after year. It’s no wonder that Mexican timeshare members return to their home resorts a high percentage of the time.
Marketing and selling timeshare in Mexico are also very different. With the better companies, the in-house marketing teams use service as the primary tool to commit guests to attend presentations. It’s not uncommon to pre-gift a prospect to facilitate the service and create a bond that helps support show factor, for example. And the focus is on the experience of the gift and the presentation, not just the savings.
The properly performed service/experience given by the IH marketing team makes a smooth transition to the sales presentation because there are no false expectations. Guests know what to expect and come willing to listen. Sales are often performed by junior sales reps called “liners”, where only product explanations and benefits are given. If the client shows interest, the money is handled by higher level salespeople, called “closers” who make every effort to create a new member today. These sales centers are typically smaller, tasteful, separated areas/offices where guests can learn about and join the membership program. Then the post-sale service begins. Follow-up and customer service are also at a high level.
Another major benefit is the quality of the business in Mexico. The typical client mix is 80% U.S., 12%+/- CAN, and 8%+/- MEX with most of them arriving by air. Down payments average between 30% and 50%. Rescission can run under 10% (there’s a 5-day rescission period by Mexican law) and defaults are low because of the high satisfaction rate supported by the exceptionally high member return rates.
Related: An Everyday Chore becomes Crucial for Mexico
When you blend the strengths of the Mexican market; low costs of construction and labor, exceptional and friendly service, easy access and high value. With a highly qualified North American clientele arriving by air, 40-65 years old, disposable income, and adventurous international travelers, and you use the professionalism of the top branded Timeshare companies in the U.S. that sell with integrity, deliver what’s promised, provide options to support customer use, and enjoyment, what you get is a product, a client, an experience, and quality of business that is virtually impossible to deliver north of the border.
Mexico truly is the land of opportunity. U.S. and Canadian developers shouldn’t be afraid to venture out of their comfort zones. Mexico lacks the presence of many U.S. companies because of fear or misunderstanding of the culture/market. More developers should be coming to Mexico.
Curt Knipe splits his time between Mazatlán and Orlando and provides services to developers that include product design, sales and marketing enhancement, recruiting, training and development of personnel. linkedin.com/in/curt-knipe-126109b
