Watch the full panel discussion here.

Panellists (from left to right): Peter Pienaar: General Manager, Business Development, Southern Sun; Tony Forbes: Business Development Executive, Beekman Group and iExchange; Karen Halvorsen: Co-owner,  Cape Escape (rental); Nicky McCulloch: Co-owner, Cape Escape (resales); Peter Edmondson: Managing Member, TravTrust Investments (sales for Dream Vacation Club) and Jonathan Kilroe-Smith (Group CEO for Club Mykonos Langebaan) who moderated the session.

Addressing Challenges Posed by Third-Party Rental Agents

A significant point of discussion was the challenges posed by third-party agents operating outside official channels.

Peter Edmondson (Managing Member of TravTrust Investments – sales for Dream Vacation Club) explained the risks associated with unauthorised rentals:

“Subletting through unauthorised agents creates an informal economy that undermines compliant operations. It’s difficult to sustain our business when these practices divert revenue. Some timeshare owners, third-party rental agents, and even industry employees have exploited the system, pre-booking units far in advance and then reselling or subletting them. This creates a ‘club within a club’ where revenue flows outside official channels.”

While he feels this practice may help some owners cover levies or encourage them to upgrade or buy more points, it poses significant challenges:

“When third-party agents market units independently, often at discounted rates on social media, it undermines compliant rental operations. Despite the heavy investment in marketing, these unofficial bookings erode returns, making it difficult to sustain operations.”

 Karen Halvorsen (Co-owner,  Cape Escape – rental) highlighted the importance of protective measures:

“It’s all about the money. Who manages the funds, and where does the money go? There must be a trust account where the money is held. Another key protection mechanism is having a clear rental agreement with defined cancellation policies and payment terms. Additionally, a proper guest certificate is essential.”

As the rental market expands, with clubs reducing memberships and owners returning weeks, the available inventory grows. The temptation to use unofficial distribution channels can damage pricing, negatively impact the industry reputation for quality holidays and jeopardise long-term sustainability.

Peter Pienaar (General Manager: Business Development, Southern Sun) manages multiple rental streams. He illustrated the challenge of maintaining standards when some renters are willing to stay in substandard conditions:

“It’s difficult to manage the issue when people accept subpar conditions, even sleeping in dirty linen. Hotel operators will confirm this reality, which negatively impacts our business.”

He stressed that adherence to ethical practices and VOASA’s Code of Conduct is vital for protecting the industry’s integrity and ensuring its continued success.

“To protect our operations, we need to be vigilant and proactive, serving as our own industry watchdogs where official enforcement falls short.”