Wednesday, September 12, 2007

Availability chart for Month Sep-Oct-Nov for Club Mahindra

This availability chart is received from Club Mahindra on 12 Sep 2007. This shows availability of rooms in deferent resorts for month Sep-Oct-Nov.

I have impression that "filing fast" mean you may not got your desired room size.

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Friday, September 7, 2007

What are you paying for your Timeshare Membership?

What is the cost of money?
  • How much bank charge when you take unsecured loan ? ( 18- 28% )!
  • What are the current floating and fixed rate for home loan (secured)? (10.5 - 13%)!
  • What will be the interest rate on unsecured loan to companies like Mahindra & Mahindra for 25 years?
Let's assume you take loan of 2.25Lakh from a bank payable as yearly EMI for 25 years to buy your Club Mahindra membership of Red Studio.
( 2.25Lakh is assumed after deducting value of promotion items)

Reading the charts :

This figure shows you yearly EMI for 2.25 Lakh loan at indicated % interest rate, principle amount left after each year. Another column shows ASF compounded with 5.5% inflation rate.

Next to ASF column, it is ( EMI + ASF)/7 = Average cost of per night accommodation.

Next set of columns shows "Present Value of per night accommodation" that is some thing you have to decide what value you give to Club Mahindra accommodation. I have shown you four calculations. For each next year these have be compounded with inflation rate of 5.5%. I have also marked Break Even Year when your accommodation value is equal to (EMI + ASF).

What to consider while deciding the value of accommodation :

1) You are committing for 25 years of business to CM.
2) A season is wide spread to 16 - 24 weeks, not all week in a season are equally valued.
3) You will be taking long holidays of 3 to 7 days, not one night stay.
4) You may have to plan 2 - 6 month in advance to get your desired dates.
5) Not all resorts are equally good or have commercial value, Average out resorts quality.

This is very simplistic calculation.

Inflation rate may not remain same for 25 years .. ,
Accommodation cost at 4000/- is equivalent to ~100$ per day. With improved infrastructure and high tourist inflow these rates may actually come down in future instead of increasing year by year.

Break even year is where you pay what you get .. you need more year to recover excesses payment of previous years.

I will be interested in knowing your comments on this calculation. If you require similar chart for different sum of money and interest rate please let me know I will try to provide it to you.

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Extracts from Mahindra & Mahindra Annual Report 2006-2007

Extracts from Mahindra & Mahindra Annual Report 2006-2007

Annual Profit :

Profit Growth :

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Thursday, September 6, 2007

My observation with Club Mahindra Membership

My observation of the membership are as follows....

1) Wrong target customers. It is a luxury item sold to (higher?) middle class claiming that you are paying middle class price for 4+ star facilities.
--- Not all properties are 4 or 5 star standard. (Some more facts about Club Mahindra Membership - I)
--- Membership does not come at any discount. It is quite costly. (What are you paying for your Timeshare Membership?)

2) Company spend high amount on advertisement and commissions, ~60% of membership cost is spent on Sales and marketing cost.  What value is left for you in membership for you? 

Source : Mahindra Holidays investor presentation Feb 2013

3) Breakup of holiday up to minimum two night trip, must be causing low utilization and higher demand on weekends so unavailability. 

4) Club Mahindra does not have enough room capacity to support growing member base.
--- (Membership Growth Vs Room Capacity for MahindraHolidays)

Acknowledgement of the problem .... 

Problem build up  ....

2005- 2010

Who paid the price of this short fall?

4) Extra purple season makes availing holidays in high demand season very costly and difficult. I do not have knowledge of any other timeshare company having purple season, RCI also does not have purple season.

5) Club Mahindra marketing staff does not hesitate to exploit lack of knowledge of Timeshare concepts of their customer.

6) Their booking system is not much transparent to the members.
-- Now online reservation system has improved. But still it is no where near to reservation system of Indian Railways.

7) Do not get lured to their referral scheme thinking you will be able to convince your another 3 friends and this referral money will bring down your cost of CM membership. It is not easy to convince, as you saw above  they spend 60% of membership cost to enroll member.
Club Mahindra may be the one of the best timeshare company in India, but still it is not good enough for value conscious customer and for others booking problem will make them unhappy.

You can build a strong ClubMahindra member' community by enrolling at Yahoo group @ (

Read this post also : Before considering Club Mahindra Membership : My personal advice

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Tuesday, September 4, 2007

Other referral offer mails from Club Mahindra

My purpose of this post is not to promote the offer but to tell people how much it take to sell a product.

Another referral offer mail from Club Mahindra, this time Malaysia trip to referrer also.


From : Kiran.KP" 1:43 pm (1 hour ago)

Dear Sir/Madam,

Greetings from Club Mahindra!!

Referral Scheme goes like this....

September Special Scheme !!
A 3-night stay for a couple in Malaysia with return airfare on 3 referral conversions


1st reference converted Rs. 5000/-
2nd reference converted Rs. 10,000/- per conversion!!!

3rd reference converted Rs. 10,000/- per conversion!!!

I.e. if 3 reference convert as member's you get a total of Rs 25,000/-

so do let us know if you have any friends who:

· Love holidaying - this will help them save lots of money

· Dont holiday - this will make them holiday

· Are recently married - they can holiday in our romantic destinations, like Munnar, Kodai, Coorg etc

· Are Retired - Since they have worked so hard all their lives, they can now do some quality relaxing!

· Have kids - they can enjoy the activity filled vacations, & can spend fun filled time with their family @ our resorts

· Are abroad - they enjoy Global holidays @ Indian Rupees!!

· Are workaholics! - What more can force them to think about their personal lives!!

Kindly send us the details in this format.


Cell #

Email Id

Your Membership #

& we╩╝ll explain all the details of the membership & the value to them, so that they also start holidaying with us!

This scheme ends on 28/09 /2007.
The referral benefit would be extended to you once your reference completes 15% of the product cost.

Warm Regards,

Kiran K P

Direct sales Manager

Mahindra Holidays & Resorts India Ltd, 18/4, 1st Floor, Saleh Centre Annex,

Cunningham Road, Bangalore-560052

Term and Conditions ..

I believe these terms and conditions will also be applicable to the people who getting Malaysia Package as part Membership purchase.


Duration :03 Nights / 04 Days Package for a couple

Destination :Malaysia (Kuala Lumpur & Genting Highland)

Validity :31st March 2008 (Except Peak Time, Festive Period, F1 Race season etc.)

Package Includes

· Air Ticket for BOM / DEL / MAA / CCU – KUL - BOM / DEL / MAA / CCU in Economy Class Airlines Air India/ Indian

v For departures from Ahmedabad / Hyderabad / Banglore additional 1500/- per person has to be borne by the member.

· 02 Nights Accommodation at Hotel Pearl International / Citrus (or hotels of similar standard) on Bed & Breakfast Basis in Kuala Lumpur

· 01 Night accommodation at Hotel First World / Theme Park (or hotels of similar standard) on Bed & Breakfast Basis in Genting Highland

· Return Airport & Internal transfer, KLIA – KL HTL – GHD HTL - KLIA on Seat in Coach basis (SIC)

· Half Day City Tour of KL with Batu Caves

· Cable Car TKT & Entry TKT of Out Door Theme Park in Genting Highland

Package does not Include

v Airport Taxes, Visa Charges of Malaysia & ECNR (POE)

v Any Personal Nature Expenditure such as Mineral Water (Except above), Tea / Coffee in Room

v Any Meals does not specified or mentioned

v Any other Personal Nature Expenditure such as Rooms Service, Laundry, Telephone calls etc or any thing does not specified in Package

v Foreign Exchange (BTQ)

v Service Taxes

v Peak Time in Malaysia: 5th Nov - 15th Nov 2007 / 15th Dec - 15th Jan 2008 / F1 Car (Month of Apr, dates to be advice) / 25th Aug - 1st Sep 2008 (Malaysian Independence Day) / Any Major Conference / Convention (Dates to be advice) not included

v Malaysia Visa (Rs.1100/- Per Person) & POE / ECNR (Rs.500/- Per Person)

v Airport taxes would be approx Rs 4000-5000 per person

v It is a free holiday package for two people. Any additional pax (adult or children) or additional rooms will be chargeable.


  • The Gift Voucher entitles the holder a 03 Nights / 04 Days Holiday Package inclusive of Airfare to Malaysia
  • Package includes Hotel stay & Airfare only. A minimum of 21 days advance notice is required for confirmation. All rooms / Air Ticket bookings are subject to availability
  • Utility charges of Rs.500/- Per Couple are payable for the booking. The original Gift Voucher will have to be submitted in exchange for collecting the confirmation voucher while booking the holiday. Once a confirmation voucher is issued against a particular request, no changes thereafter will be entertained
  • The Package is not valid for certain peak periods like such as New Year, X’Mas, Long Connecting Weekends, Festive Seasons, Formula-1 Racing etc
  • The bookings will not be accepted directly at the Hotels mentioned above. The contact details for reservations would be available in the gift voucher dispatched to the members
  • The Gift Vouchers are non-refundable, non-transferable, non-encashable, non-extendable and non-negotiable
  • The Hotel has a right to charge for additional facilities like additional bed, telephones, heaters, laundry and other leisure facilities. F&B taken in the hotel are to be paid directly at the hotel, before check out. Additional taxes if applicable are to be borne by the holder and paid directly at the Hotel
  • The complimentary offer can be utilized by the person to whom it is issued. The person asking for reservation and signing the booking form is responsible for his/her spouse in respect of giving acceptance to the terms and conditions mentioned above
  • This voucher does not include any other services or facility not mentioned herein
  • This holiday can be redeemed only once
  • The Company reserves the right to change the redemption hotels without any prior notice
  • The package is valid till 31st March 2008
  • Terms & Conditions apply; this offer is subject to Surat Jurisdiction
  • If there is any cancellation of Package, cancellation will be applicable as mentioned below

100% Cancellation charges


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Monday, September 3, 2007

One of the Club Mahindra Promotion

One of the Club Mahindra Promotion

This Add is from TOI Bangalore 2nd Sep 2007.

So what is this *Condition Applied?

Club Mahindra promotes its membership very vigorously. In back ground of this add there is equally intense promotion through existing customers with their referral program.

This is one mail we Club Mahindra members have received from local marketing office.


Dear Member,

Refer your friends and relatives to Club Mahindra and get entitled to HFRP benefit as-

1 Referral- Rs. 5000/-  2 Referrals- Rs 15,000/-  3 Referrals- Rs 25,000/-

And when you refer, your references will be entitled to

Fly to Malaysia This Season...

A trip for 3N/4 D including accommodation, food and airfare.

*HFRP is applicable on enrollments happening before 28th Sept 2007.

**Malaysia tour is applicable on payment of 15 % membership cost realization for 1 BR White/Red season.

To know more details- Call 080-41159254.

To refer- reply to the above subject line with Referal’s name and contact number.

Warm regards,

Sheetal Goel.

Club Mahindra Holiday World

Leela Galleria, Bangalore


So now you know what are the condition, spend atleast ~2.5
( White 1 Bed room membership) - 3.25 Lakh ( Red 1 Bed room membership).

Can some expert in marketing will be able to tell how much Club Mahindra must be spending in selling each membership?

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