‘Our Main Aim Is To Safeguard Consumer Interest’

All India Resort Development Association (AIRDA), an organisation formed to safeguard consumers using time-share resorts, is trying to streamline the industry. B S Rathor, Chairman & Principal Advisor, AIRDA spoke to Vyas Sivanand about the association's objectives, challenges and the Indian time-share scene...

EH&C: Do you think the domestic market has the potential to play a key role in time-share?

B S Rathor: In India, time-share started in the early 1980s but in a very disorganised manner. The industry became more organised in the 1990s and its growth rate by 1998 was 15 per cent. As on today, since the last three years, the growth has been more than 20 per cent, which was the period when 9/11, SARS and Iraq war had left a murky imprint. This just strengthens one fact that the domestic traveller never stops to travel.

Globally time-share has been existing since almost about 40 years and today it is a US$9 billion industry with 5,400 resorts worldwide. India has a long way to go as far as time-share is concerned but then it is growing. Today the Indian time-share industry turnover has touched the Rs 200 crore mark. The industry has attracted global players like Best Western, Royal Resorts, Le Meridien, Radisson and is likely to bring in investments from other reputed brands.

What are the main objectives of AIRDA?

We are now working towards classification of time-share. We have tried to evolve a document from the consumer's point of view. Once we get a classification for time-share resorts, the consumer will know what to expect from a particular resort. The process is going on but it will take few months to be finally realised as there has been a delay due to the change in the government. Another benefit for us in getting a classification is the entitlement of incentives.

Another of AIRDA's role is that of being a regulatory body through which we can even audit the resort. But all this will follow once we get past the classification barrier. At AIRDA our main aim is to safeguard consumer interest. We want to ensure transparency in the documentation which a member signs initially. He has to get all that's being promised to him. We even have a consumer helpline on our website through which we address the needs or queries of members.

Could you elucidate the main challenges in front of AIRDA?

We want to remove inconsistencies in the business module adopted by the developers who are not our members too. Previously there were three types of payment systems involved wherein the member had to pay a Vacation Ownership Membership fee, an annual maintenance fee and a utility fee on an ad hoc basis. We found that the utility fee was not handled properly and in the end the member ends up paying a lot. We have now asked our members not to charge utility fees and so no AIRDA member is charging it. As for annual maintenance charges, it will be declared upfront and will be subject to revision. We are even putting pressure on non-AIRDA members not to charge the utility fee.We are going to expand outside AIRDA, once the classification issue is handled. Then we will go full-fledged in cleaning up a lot of disorganised mess.

We have also formulated a code of ethics to ensure high ethical standards. This code is adopted for the benefit of both the consumer and the member, to ensure all aspects of the industry are conducted in a manner trusted and respected by all.

‘Our Main Aim Is To Safeguard Consumer Interest’

All India Resort Development Association (AIRDA), an organisation formed to safeguard consumers using time-share resorts, is trying to streamline the industry. B S Rathor, Chairman & Principal Advisor, AIRDA spoke to Vyas Sivanand about the association's objectives, challenges and the Indian time-share scene...

EH&C: Do you think the domestic market has the potential to play a key role in time-share?

B S Rathor: In India, time-share started in the early 1980s but in a very disorganised manner. The industry became more organised in the 1990s and its growth rate by 1998 was 15 per cent. As on today, since the last three years, the growth has been more than 20 per cent, which was the period when 9/11, SARS and Iraq war had left a murky imprint. This just strengthens one fact that the domestic traveller never stops to travel.

Globally time-share has been existing since almost about 40 years and today it is a US$9 billion industry with 5,400 resorts worldwide. India has a long way to go as far as time-share is concerned but then it is growing. Today the Indian time-share industry turnover has touched the Rs 200 crore mark. The industry has attracted global players like Best Western, Royal Resorts, Le Meridien, Radisson and is likely to bring in investments from other reputed brands.

What are the main objectives of AIRDA?

We are now working towards classification of time-share. We have tried to evolve a document from the consumer's point of view. Once we get a classification for time-share resorts, the consumer will know what to expect from a particular resort. The process is going on but it will take few months to be finally realised as there has been a delay due to the change in the government. Another benefit for us in getting a classification is the entitlement of incentives.

Another of AIRDA's role is that of being a regulatory body through which we can even audit the resort. But all this will follow once we get past the classification barrier. At AIRDA our main aim is to safeguard consumer interest. We want to ensure transparency in the documentation which a member signs initially. He has to get all that's being promised to him. We even have a consumer helpline on our website through which we address the needs or queries of members.

Could you elucidate the main challenges in front of AIRDA?

We want to remove inconsistencies in the business module adopted by the developers who are not our members too. Previously there were three types of payment systems involved wherein the member had to pay a Vacation Ownership Membership fee, an annual maintenance fee and a utility fee on an ad hoc basis. We found that the utility fee was not handled properly and in the end the member ends up paying a lot. We have now asked our members not to charge utility fees and so no AIRDA member is charging it. As for annual maintenance charges, it will be declared upfront and will be subject to revision. We are even putting pressure on non-AIRDA members not to charge the utility fee.We are going to expand outside AIRDA, once the classification issue is handled. Then we will go full-fledged in cleaning up a lot of disorganised mess.

We have also formulated a code of ethics to ensure high ethical standards. This code is adopted for the benefit of both the consumer and the member, to ensure all aspects of the industry are conducted in a manner trusted and respected by all.