THE BIG PICTURERCI’s senior leadership outlines the company’s global perspective
SUCCESS ESSENTIALSProfile of key criteria for sales success in a high-end resort
MGM TAKES THE STAGEIndian business group buys Petchey Leisure to become a major player
The business of vacaTion Q1/Q2 2013
MARKETING MECHANISMSThe experts share what is working and why
The latestin our longline of fi rsts
Vacation Exc
hange
RCI TV
RCI Points
Weeks Enhancements
Social Media List
ening
Enhanced Search
Lead Generatio
n
The Registry
Collectio
n®
RCI Platin
um
RCI Prese
nter
www.rciaffi liates.com
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CI,
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In a business world that’s constantly moving forward, having access to the latest technology is imperative. That’s where the newest innovations from RCI come in. From RCI PresenterSM, our interactive touch screen technology, which helps your sales team deliver more engaging and compelling presentations, to our Timeshare Online Listening Center that helps affi liates safeguard their online reputations, we offer dynamic solutions to meet the demands of today’s tech-savvy consumer. And when it comes to the world’s increasingly hand-held approach to business, RCI’s latest app for the iPad® is helping our affi liates stay ahead of the curve.
Find out what the company who invented vacation exchange is doing next.
130275RC RCI Apps Ad.indd 1 2/22/13 3:38 PM
Q1/Q2: RCI VENTURES 3
TABLE OF CONTENTS
IN BRIEF04 In Brief The latest news from Europe and around
the world
08 By The Numbers A world of vacation experiences
IN DEPTH10 The Big Picture RCI offers a worldwide point of view
14 Marketing For A New Age How timeshare is innovating its marketing
techniques and using modern media to attract contemporary consumers
20 MGM Takes The Stage Leading Indian business group enters the timeshare
industry with purchase of Petchey Leisure
INSIGHT23 Success Essentials Julian Houchin of iO Adria shares some of the criteria
that help to create a winning resort
26 Modern Products For Modern Times The latest examples of how timeshare businesses are
creating new products to meet customer needs
IN DEVELOPMENT29 Dubai On The Up The UAE city is buzzing again with an array of
investment projects set to boost visitor numbers further
INNOVATION32 Counting On The Cloud Cloud technology could be the solution to integrating
and streamlining your resort management systems
A FINAL THOUGHT34 On The Money Securing timeshare financing in a tough economic climate
DEAR RCI AFFILIATE:
Innovation is an important goal
for business, no matter what
your industry. Companies across the globe are looking
for ways to provide better products and services to their
customers, and the timeshare industry is no different.
As an industry, we are constantly learning, developing
new products and finding new ways to meet the needs
of our current and prospective customers. And as your
affiliate partner, RCI strives to create new tools and
initiatives to support the success of your business.
On that note, I am pleased to unveil the new look
RCI Ventures, which has been redesigned to more
accurately represent the power, impact and future of our
industry. In the pages that follow, you’ll find a wealth of
articles that will deepen your understanding of timeshare
and the travel and hospitality industries at large.
One of RCI’s mandates is to ensure that we
continuously work to earn your trust as a partner in the
industry. That means sharing expertise and offering
products and services to help you achieve your business
objectives. We want RCI Ventures to be one of the tools
you rely on to help you succeed.
The concept of innovation crops up a lot in this issue,
particularly in our cover feature ‘Marketing For A New
Age’ (p.14), which sees a range of industry experts share
their knowledge and thoughts on new techniques as well
as best practices in sales and marketing. New products
and ideas are also the focus of ‘Modern Products For
Modern Times’ (p.26), as well as in our feature on the
ever-evolving city of Dubai – ‘Dubai On The Up’ (p.29) –
where booming tourist numbers offer real potential for
vacation ownership as well as the travel and hospitality
industries.
There’s plenty more to read and enjoy in this issue,
and we hope you find that the new-look RCI Ventures
is just one of the many ways we’re demonstrating our
commitment to helping you achieve your goals.
Gordon GurnikPresident, RCI
One of RCI’s mandates is to ensure that we continuously work to earn your trust as a partner in the industry.
RCI Ventures is published by RCI, a trading name of RCI Europe, Kettering Parkway, Kettering, Northants, NN15 6EY, United Kingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: [email protected] EDITOR: Helen Foster. CONTRIBUTING EDITOR: Steve Adams. DESIGN: Richard Blaney. Front cover masthead concept, Story Worldwide. PRODUCTION: Claire Williams and Lorraine Karabin. PRINTING: ESP Colour, Swindon. Photo credits: Illustrations for front cover and pages 14-19 by Richard Blaney and iStock images. Images page 23, 35 from iStock. Original articles and contributions may be reproduced or transmitted only with written permission from the publisher. All facts and figures stated in the articles contained in this publication are provided by the contributors and no responsibility is accepted by RCI Europe for content not created by them, nor for any losses or other consequences resulting from advertisements or other material appearing in this publication. You are advised to make your own enquiries and conduct further research if necessary. © RCI Europe 2013
GORDON GURNIK President, RCI
4 Q1/Q2 2013
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industry news
Pueblo evita and Fairways Clubs sold
A daring duo from Azure Malta, developers of the Heavenly Collection at Golden Sands – an affiliate of The Registry Collection – have taken part in the gruelling Dakar Rally.
Project Director Perry Newton and Memberships General Manager Kevin Camilleri were the first Maltese team entrants to the event. They set off from Paris on KTM 690R Enduro bikes, riding for up to 13 hours a day across 15 countries, crossing the finishing line in the Senegal capital 15 days later.
Taking part in the event fulfilled childhood dreams and raised money for charities the Malta Community Chest Fund, UNICEF and Cancer Research UK.
Newton said: “Helping our charities and completing the rally gave us a sense of achievement and contribution. I thought of us as modern-day Knights Templars on our trusty steeds racing across the desert to help the needy!
“We would like to thank our sponsors, including RCI and The Registry Collection. It’s a race that’s as romantic as it is fatal but that is the spirit of the Dakar.”
French timeshare developer Groupe Cela
has launched a new multi-level trial product
with the option to upgrade to RCI Platinum
membership.
Cela Plus is a pre-paid weeks-based
product to be sold on three levels: Cela Plus
Bronze – three pre-paid weeks, used within
1-3 years of purchase, plus one year of RCI
membership; Cela Plus Silver – five pre-paid
weeks, used within 2-5 years, plus one year’s
RCI membership; and Cela Plus Gold – 10
pre-paid weeks, used within 3-10 years, plus
three years’ RCI membership.
All products will be offered with the
chance to upgrade to RCI Platinum.
Johanna Garsau, Groupe Cela Sales and
Marketing Director, believes flexibility is key.
“The member is not tied to a fixed week or
a fixed unit – it’s a pre-paid accommodation
package at a preferred rate with no
maintenance fee, just a utility fee based on
usage,” she explained.
Garsau said the product would be
marketed in-house to owners and rental
guests at its three RCI-affiliated resorts –
Cela Canet Malibu Village, Malibu Premier
and Cela Alenya, all in the South of France –
as well as guests staying at its Hotel Europa.
Garsau added: “We are happy to be the
first RCI French affiliate offering RCI Platinum
membership to our owners, which allows us
to offer a VIP service and is a great tool to
help close the sale.”
Kevin Camilleri (left) and Perry Newton of Azure Resorts at the end of their 15-day Dakar Rally challenge.
Kevin and Perry go wild!
Martin Beesley, Developer of
Pueblo Evita and Fairways
Clubs, has completed a trade
sale to Ian Goddard, Owner
of sales and marketing
company Richvale Limited.
The purchase includes
the management companies,
unsold stock and associated
properties at the resorts that
are located in mainland Spain
and Tenerife respectively.
Beesley will initially remain as
non-executive chairman to
oversee a smooth handover
of operations.
Goddard said buying the
Clubs – both of which are
affiliated to RCI – would give
him the opportunity to drive
sales forward.
“The plan is to launch
aggressive rental and referral
plans to fill the resorts and
generate prospects,” he said.
“Our fractional product is
about as transparent as it can
be and has a lot of added
benefits to appeal to the
modern consumer.”
The Clubs’ fractional
ownership scheme, launched
four years ago, has proved
so popular that it will be
extended into new markets.
Ian Goddard
Cela launches trial product
rci Ventures 5
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fAnfi celebrates silva anniversary
Superstar footballer David Silva is helping lead The Anfi Group’s 25th birthday celebrations
in 2013. The Manchester City and Spain star, who was born close to Anfi in Arguineguin
village in Gran Canaria, is now the company’s ambassador, starring in a range of promotional
campaigns.
Anfi Group CEO, José Luis Trujillo, said: “We are delighted to have this local hero as the
Anfi ambassador during our 25th anniversary celebrations.
“David perfectly represents Anfi Group’s values. He embodies a spirit of perseverance,
winning and teamwork.”
Trujillo and Silva recently hosted a cocktail event for UK Anfi members at the Etihad
Stadium – home ground of Manchester City – and more anniversary events are set to take
place throughout the year.
Silva said: “I’m proud to represent a company that is so important for my island and which
continues to create employment for my community.”
Silva (left) and Trujillo are pictured above in the changing rooms at the Etihad Stadium.
this year’s rci christel
House Open Golf europe
tournament will be held
on Monday 17 June 2013
at Badgemore Park Golf
club, Henley-on-thames.
the global event,
which sees the timeshare
industry come together
in aid of a great cause, is
now in its 11th year, and
rci will again be its title
sponsor.
this year’s
tournament takes place
at 13 sites on three
continents, and will see
nearly 1,500 golfers,
sponsors and volunteers
raising funds for non-
profit organization,
christel House
international.
Geoff Ballotti,
ceO, rci, said: “We’re
honoured to once again
be able to serve as the
title sponsor of this
very important annual
fundraising event for
christel House.
“Our associates take
tremendous pride in
helping the thousands
of children around the
world from christel
House realise their
hopes and dreams in a
nurturing setting that is
uncompromising in its
pursuit of excellence.”
For further
information and to
register to play or join in
the dinner and evening
festivities, contact Liz
taylor on +44 (0)7974
671373 or email: etaylor@
uk.christelhouse.org
As a resort developer or manager with UK resident
owners or club members, you should ensure they are
aware of the benefits of TATOC membership.
The 2013 annual TATOC conference attracted
more than 160 delegates from all areas of timeshare.
Following the opening up of TATOC membership
to individual timeshare owners, its Executive
Chairman, Harry Taylor told delegates that individual
memberships now exceeded 400.
Taylor urged resort managers in the audience to
promote the TATOC Helpline (0845 230 2430 in the
UK) and Sharetime Magazine to owners. Manager of
the Helpline, Mark Caldicott, highlighted the great variety of questions fielded by the service,
from queries about exchanging and resort telephone numbers, to the serious issues of
dealing with bogus callers and scams.
Caldicott and the TATOC team helped to recover £219,317 from a total of £250,000 lost
last year by UK owners to rogue resales companies.
Sharetime Magazine, mailed to TATOC members as a membership benefit four times
a year, is packed with useful information to ensure owners get the most out of timeshare
ownership, as well as inspiring timeshare holiday stories from the owners themselves.
TATOC – the UK timeshare owners’ association – is now an established media contact and
works closely with government agencies, international law enforcement bodies and is unique
in bringing together the resort management and owner member communities in one forum.
tatoc.co.uk or sharetimemagazine.com
rCi chips in for Christel House
dedicated to uK owners
Mark Caldicott addresses delegates.
6 Q1/Q2 2013
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industry news
the power of positivityThe industry will be pleased to hear that Mark Cushway,
CEO of Silverpoint, is back at his desk and well on the way
to a great recovery just six months after being diagnosed
with leukaemia and then contracting pneumonia.
Speaking to RCI Ventures, Mark said: “You can’t
change what’s happens to you – only the way you deal
with it, and I stayed very positive throughout. I believe
that the power of the mind is absolutely crucial in making
a good recovery from this type of illness.
“My wife, who has always been a strong woman, was a
tower of strength for me in creating a positive atmosphere
and helping me through the treatment. She was absolutely
incredible, on top of being super positive she brought
me delicious meals from local restaurants and kitted out
my room with everything from lovely bedding to the
latest entertainment equipment. It ended up being half
hotel room and half office.
“It was fun to hold a few sales meetings with my team
from my bed. Our decks are fairly advanced in technology
and I got to keep in touch with my team via 25 TVs on the
deck. That was fun and great for me to keep in touch with
all the people at Silverpoint who were a constant source of
encouragement and strength.
“I also got tremendous support from all my friends in the
industry which was such a boost and I would like to thank
everyone who sent me their good wishes.
“When I was first diagnosed on 17 September last
year the doctors and friends tried to make me feel better
by telling me that leukaemia was very
treatable and I had a 60 per cent chance
of a full recovery. That sounds good unless
the stats are referring to you! All that said,
six months on I am back at work and
feeling strong.
“The support of family, friends and
my industry colleagues was so important
during the last six months on top of my
own positive outlook.”
Mark was given the all clear on 22 March,
though he will be returning to the hospital
for more than his check-ups. He explained:
“Having spent so much time with driven
sales people chasing their own goals over
the last 25 years, my hospital stay opened my eyes to the
selflessness of the nurses and staff who are dedicated to
helping others in a very difficult time of their lives.
“I have a far greater appreciation and a real love and
respect for the staff in that hospital and I now want to spend
some time visiting patients to help them realise chemo is
very ‘do-able’ and there is light at the end of the tunnel.
“I am also looking forward to working with the
Silverpoint team on the introduction of many new
products, sales locations and innovations. There are
many exciting times ahead and I am looking forward to
all of them.”
Scottish Highland mixed-use property Moness Resort (above) has been the subject of a management buy-out.
Managing Director Terry Vose has agreed terms with Geoff Siden, majority shareholder in Worldwide Leisure Group, to buy the resort in Aberfeldy, in a move designed to create additional investment and job opportunities.
The resort, which has been affiliated to RCI for more than 25 years, comprises a 26-bed four-star hotel and 108 four-star self-catering cottages, 88 of which are managed for the holiday ownership club by a management company that Vose has run for the last 13 years. The resort also contains a leisure centre, function suite and three bars and restaurants. It employs more than 70 staff.
Vose said: “I am pleased to be leading a great team at Moness Resort attentive to the enhancement of what we offer here in Aberfeldy.
“We shall be continuing to invest in the resort and look forward to welcoming new colleagues in the coming months. As ever, our focus is on delivering family breaks and holidays in a very special place in Highland Perthshire.”
Siden will remain as a Director of the new venture for the next 18 months, while Steven McKenzie of Acumen has also been appointed as a Non-Executive Director.
Dimitris Manikis, RCI’s Vice President, Business Development Europe, Middle East and Africa, said: “We congratulate Terry on this move, which represents a changing of the guard at Moness as it looks to the future. Geoff Siden has been a great friend and ally for many years and his experience and expertise will remain invaluable as the resort moves forward.
“Moness has a long history in the industry, as well as with RCI, and we have already been talking to Terry and his team about projects and how we can work together going forward, and look forward to doing just that. We wish them every success.”
Moness in management buy-out
Mark Cushway
rci Ventures 7
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rCi news
Milestone and new benefits for rCi Platinum
You will notice your latest edition of RCI Ventures has a fresh new look. The redesign reflects the power and dynamism of today’s shared-vacation ownership industry and has also been carried through to the magazine website, RCIVentures.com.
RCI Ventures is the most established and reliable voice of the business and both the magazine and the website carry news of industry developments, expert views and inspiring ideas, as well as updates on RCI’s own product and service innovation.
The website has been completely redesigned to make it easier and faster to access the information you want with improved site navigation, either by resort developer journey or region, and under the Magazine tab you will find RCI’s four regional magazines for online viewing. rciVentures.com
The exponential growth of social media has given a voice
to millions – and millions are listening. Anyone managing a
brand needs to know what is being said online about their
brand and product, especially as user-generated online
content is trusted by other consumers.
Monitoring what customers and potential customers
are saying about your brand – good and bad – as well
as knowing what they are searching for and wanting to
know about your products and services is fundamental
to success. This is why RCI has developed the Timeshare
Online Listening Centre (TOLC), a turn-key service
dedicated to the timeshare industry and driven by a team
of RCI professionals to help you better understand how
your brand is perceived online.
RCI’s TOLC team works directly with your existing
customer service and social media teams to help protect
your brand image and enhance the consumer perception
of it. Sources covered include 150+ million blogs, user
forums, review sites, Twitter, Facebook brand pages,
and more. The listening and reporting platforms are fully
customised to suit customer needs.
RCI’s TOLC currently provides monitoring
coverage of over 345 resorts in over 10
countries and three languages – English,
Spanish and Portuguese. In all phases
of the social listening process, RCI will
provide support and guidance to assist
you in protecting and enhancing your online
reputation. Contact your local RCI account
team or email [email protected] to learn more.
For more details visit
http://pages.mail.rci.com/TOLC_LimitedOffer
RCI Platinum, the company’s key lifestyle product designed
to provide a new level of RCI membership, now has more
than 100,000 global members.
The milestone figure was reached less than two years
after the programme was launched, and more members are
expected to sign up as more and more holiday travel and
lifestyle benefits are added to the package.
Recent enhancements to the programme include:
•50 per cent off membership as well as 2-for-1 offers and
discounts at 1,600 quality golf courses across Europe with
Open Fairways
•Discount on wellness treatments and products around
the world from SpaFinder Wellness, the world’s largest spa
and wellness company
•Discount access to more than 200 airport VIP lounges
at over 120 airports worldwide through Lounge Pass.
Further benefits – including international holiday
adventures and membership to ‘Tastecard’, the UK & Ireland’s
largest dining club.
Dimitris Manikis, RCI’s Vice President of Business
Development, Europe, Middle East and Africa, said: “The
RCI Platinum product has been a huge success and is
helping our members realise the lifestyle benefits of being a
timeshare owner and RCI member.
“We see it as a real addition not only to the RCI
offering, but a major sales tool for our developer
partners and affiliated resorts, as potential buyers can
see the range of lifestyle benefits that come from being
timeshare owners.”
Controlling your online reputation
RCI’s TOLC team monitor social media coverage.
new look for rCi Ventures
Vacation ownership experiences offered by non-U.S. properties in 2010. Data is from
the World Wide Shared Vacation Ownership Report: 2012. Resorts surveyed were
allowed to select multiple choices.
Commissioned by the American Resort Development Association (ARDA) International Foundation (AIF), the World Wide Shared Vacation Ownership Report: 2012 was conducted by Oxford Economics and the Research Intelligence Group.
For further information about the study, visit arda.org/aif-foundation/research/overview.aspx
AFRICA 50% 0% 50% 85% 50% 50% 0% 90% 50% 50% ASIA 24% 0% 15% 67% 59% 11% 0% 67% 0% 33% AUSTRALASIA 60% 0% 0% 33% 14% 67% 47% 87% 14% 33% CARIBBEAN 0% 0% 19% 35% 73% 11% 5% 91% 6% 0% CENTRAL & SOUTH AMERICA 34% 0% 20% 63% 32% 49% 26% 84% 11% 52% EUROPE 41% 0% 14% 14% 14% 18% 23% 50% 14% 23% MIDDLE EAST 28% 30% 33% 0% 0% 0% 0% 50% 28% 0% NORTH AMERICA (NON-U.S.) 26% 7% 22% 57% 15% 18% 25% 68% 9% 22% NON-U.S. (WEIGHTED AVERAGE) 30% 2% 20% 45% 30% 25% 19% 70% 12% 28%
COUNTRY & LAKES
DESERT
GAMING
75%
50%
25%
0%
AFRICA
AUSTRALASIA
EUROPE
CENTRAL & SOUTH AMERICA
NON-U.S. (WEIGHTED AVERAGE)
MIDDLE EAST
NORTH AMERICA (NON-U.S.)
ASIA
CARIBBEAN
CASINO
GOLF
8 Q1/Q2 2013
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When you know what experiences guests are looking for, your next resort can be the place they enjoy it.
BY THE NUMBERS
A world of vacation experiences
AFRICA 50% 0% 50% 85% 50% 50% 0% 90% 50% 50% ASIA 24% 0% 15% 67% 59% 11% 0% 67% 0% 33% AUSTRALASIA 60% 0% 0% 33% 14% 67% 47% 87% 14% 33% CARIBBEAN 0% 0% 19% 35% 73% 11% 5% 91% 6% 0% CENTRAL & SOUTH AMERICA 34% 0% 20% 63% 32% 49% 26% 84% 11% 52% EUROPE 41% 0% 14% 14% 14% 18% 23% 50% 14% 23% MIDDLE EAST 28% 30% 33% 0% 0% 0% 0% 50% 28% 0% NORTH AMERICA (NON-U.S.) 26% 7% 22% 57% 15% 18% 25% 68% 9% 22% NON-U.S. (WEIGHTED AVERAGE) 30% 2% 20% 45% 30% 25% 19% 70% 12% 28%
URBAN
AFRICA
AUSTRALASIA
EUROPE
CENTRAL & SOUTH AMERICA
NON-U.S. (WEIGHTED AVERAGE)
MIDDLE EAST
NORTH AMERICA (NON-U.S.)
ASIA
CARIBBEAN
SKI
THEME PARK
BEACH
ISLANDRURAL &COASTAL
RCI VENTURES 9
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By the Numbers
A global view of timeshare, based on key findings from the AIF report
76%Average global occupancy rate
Nearly $114 billionAmount generated by global shared vacation ownership in 2010
DIMITRIS MANIKIS Vice President, Business Development, RCI Europe, Middle East and Africa; and Managing Director, RCI South Africa
JUAN IGNACIORODRIGUEZSenior Vice President, Business Development, RCI Latin America
ADRIAN LEEManaging Director, RCI Asia
GORDON GURNIK President, RCI
GEOFF BALLOTTIChief Executive Officer, RCI
10 Q1/Q2 2013
RCI’S WORLDWIDE POINT OF VIEW
BigPICTURE
THE
When the ARDA International Foundation (AIF) published its World Wide Shared Vacation Ownership Report: 2012 last summer, it did more than reveal the vacation habits of owners and the reputation of timeshare around the world. It affirmed an exciting reality: timeshare is transcending its traditional North American and European roots to become a truly global industry. Translation: after enduring a lengthy recession, vacation ownership is entering an era of unprecedented opportunity.
RCI is poised, and enthusiastic about the chance, to help affiliated resorts seize the ever-expanding global opportunity. A roster of RCI’s senior leadership – CEO Geoff Ballotti; President Gordon Gurnik; Asia Managing Director Adrian Lee; Juan Ignacio Rodriguez, Senior Vice President of Business Development for Latin America; and Dimitris Manikis, Vice President of Business Development for Europe, the Middle East and Africa and Managing Director for South Africa – have outlined the company’s global perspective and industry opportunities, as they see them.
IN D
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The Global Exchange MarketMap indicates destinations with RCI® affiliated resorts.
RCI® Weeks Affiliated ResortsRCI Points® Affiliated Resorts
785,000Number of intervals sold worldwide in 2010, representing more than $14 billion in sales
20 millionNumber of owner households (24 countries surveyed)
Mexican Vacation Ownership
160,824 weeks sold in 2011
480 resort affiliations*
Latin American Vacation Ownership
232,420 weeks sold in 2011
1,041resort affiliations*
Latin America means businessIt’s no secret that tourism in Latin
America is getting big – and fast.
According to figures from the
World Travel & Tourism Council
(WTTC), the region’s tourism
industry contributed $134 billion
– or 3.2 per cent of total GDP –
and attracted $49 billion worth of
investment in 2011. But what about
Latin America’s prospects for
timeshare? RCI figures show that
vacation ownership in the region
grew significantly in 2011, by about
10 per cent, and generated $3.6
billion in sales volume.
For RCI and its affiliated
resorts, most of the opportunity
lies in two geographical markets:
Mexico and Brazil. Mexico is, and
most likely will continue to be, the
most important country for RCI in
Latin America in the years ahead.
Not only is the tourism industry
thriving – in 2010 it contributed
7.8 per cent of the country’s GDP,
according to the WTTC – but it is
also conducive to timeshare.
In 2011 the country saw $3.1
billion in interval sales, or a
whopping 22 per cent of global
vacation-ownership sales. Brazil,
meanwhile, is also enjoying a
healthy tourism industry and is
already exhibiting promising
signs regarding timeshare.
The bottom line is that Latin
America is transforming into
a significant region for the
timeshare industry, and RCI
is uniquely positioned to help
affiliated resorts navigate this
exciting new landscape.
RCI has offices in six
countries in Latin America
and maintains a presence
throughout the region. RCI
is focused on becoming a
strategic ally in all areas of the
vacation-ownership business
cycle.
Brazilian Vacation Ownership
26,163 weeks sold in 2011
132 resort affiliations*
*At close of 2011
RCI VENTURES 11
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$6.6 billionPotential timeshare sales volume in China, per a study RCI conducted with Ragatz Associates in 2010
$1.57 billiontotal sales of shared vacation ownership in Europe
134,500people employed in the shared vacation ownership industry
Asia Projected population growth
Europe
Asia versus Americas and Europe
5.5 billion
ASIA
AMERICAS
2000 2050
EUROPE
12 Q1/Q2 2013
RCI’S WORLDWIDE POINT OF VIEW
Asia: One big investmentThere are infinite reasons to
invest in Asia, but for RCI and its
affiliated resorts it boils down
to one inescapable fact: the
population is skyrocketing. By
2050, 5.5 billion people will live
on the world’s largest continent.
But it’s fair to wonder whether
this population will grow to suit
the industry’s products. The
short answer, we believe, is yes.
A large middle class equals a
large market for vacation owners,
and Asia promises to provide
just that: in 2009, 23 per cent of
the global middle class’s spend
was by the Asian market; by
2030 that number will jump to a
remarkable 59 per cent. And RCI
can help affiliated resorts tap it.
RCI has been in the Asian
market for more than three
decades and views it as having
three categories: established,
growing and emerging. Some
of the newer resorts in the
‘established’ market are located
in Thailand, Malaysia and
Indonesia. Of the ‘growing’
markets, China is among those
expanding fastest. In the past
few years, RCI has increased its
destination footprint in China
significantly, boosting the total
number of affiliates to 27, and
the RCI member base has grown
an average of 15 per cent year
on year. And RCI will continue
to invest in shaping the future
of timeshare in this market,
in terms of resources, PR and
government-relations efforts.
The ‘emerging’ markets are
equally exciting. Take Vietnam.
RCI’s first resort affiliation there
was established three years ago;
today there are three affiliated
resort groups with properties
in five destinations across the
country.
From its first days in Asia,
RCI has stood by the same
philosophy: stay true to the
RCI brand’s core values while
adapting to local demands and
needs. RCI is embracing different
languages (see the chart
opposite for all the countries
served by and languages offered
on RCI.com), hired local vacation
guides and built a team of
employees of diverse cultural
backgrounds and nationalities.
It’s a philosophy that has worked
extremely well in the past, and
we expect to do even better in
the future.
Europe revisitedThe Old Continent has been and
always will be a tremendously
popular travel destination. Of
the world’s 10 most visited
countries, six are in Europe,
according to a July 2012 report
by the United Nations World
Tourism Organization (UNWTO).
And when the 2012 Trip Advisor
Travelers’ Choice Awards named
the top 10 best destinations in
the world, seven were located
in – that’s right – Europe.
It’s no surprise, then, that
Europe will continue to be a
critical market for developers
Asia... By 2050, 5.5 billion people will live on the world’s largest continent.
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RCI.com offers content in these languages:
To provide localised service to these countries and areas:
ArgentinaAustraliaBrazilCanadaChileChinaColombiaDenmarkFinland
FranceGermanyGreeceHungaryIndiaItalyMexicoMiddle EastNetherlands
New ZealandPortugal SpainSwedenUnited KingdomUnited StatesVenezuela
ChineseDanishDutchEnglishFinnish
FrenchGermanGreekHungarianItalian
PortugueseSpanishSwedish
160new resorts
under construction
13,600timeshare units added last year
RCI VENTURES 13
and RCI. It currently has more
than 1,300 affiliated resorts and a
healthy average occupancy rate.
And the good news is, there’s
more. RCI looks forward to
expanding its presence in eastern
Europe and the Balkans in the
years ahead.
Raising the technological barThere are 1.1 billion smartphones
in use, 800 million active
Facebook users, four billion
daily YouTube video views. The
numbers speak for themselves.
Technology is changing the
world at a rapid pace – and
RCI is taking full advantage.
Four years ago RCI set out on a
journey to transform exchange
with its website, RCI.com, and
today it gets approximately
130,000 visits a day. Last year
was an especially big one for
technological milestones. In the
past 12 months, RCI has:
l Integrated online travel
services through RCI Travel®
l Launched RCI.com in Chinese
l Launched a mobile-friendly
version of RCI.com
(1.5 million visits and counting)
l Launched the Online Tour
Generation program
l Launched the Timeshare
Online Listening Center
l Launched RCI Presenter for
the iPad*
l Launched Deposit
Simplification that includes
providing a courtesy link on
RCI.com to affiliated resort
websites for RCI subscribing
members to pay outstanding
resort maintenance fees.
And that’s just the beginning.
In 2013, RCI will continue to
explore innovative ways to
promote on-the-go interactivity.
For example, you’ll be able
to see PAD-ORAMIC views
of destinations in the Endless
Vacation magazine app for
iPad. (What’s a PAD-ORAMIC
view? Download the app and
see for yourself!) The goal is
always to better enable our
developers with technology and
provide users with rich online
experiences.
Taking it homeInternational tourism keeps
going up. In the first four months
of 2012 alone, arrivals were up
five per cent despite economic
uncertainties remaining in some
of the major outbound markets,
according to the UNWTO.
Shared ownership’s going up as
well. ARDA found that in 2011,
the industry outside the United
States added 9,600 units at
existing properties and another
4,000 at new resorts.
Yet there are challenges.
Timeshare still has an image
problem – and the fraud that
continues to surround the
industry isn’t helping. Despite
the high percentage of happy
owners, the public perception
of the industry remains negative
in many parts of the world. We
need to get the good word
out. It’s no coincidence that the
countries where timeshare has
a positive reputation – such
as India and Colombia – are
seeing solid growth. Imagine the
impact that would result if we
could spread that reputation to
European countries like France
and Portugal.
There’s a lot of good news
out there for the industry.
According to the Shared Vacation
Ownership Owners Report: 2012
Edition, commissioned by the
American Resort Development
Association (ARDA) International
Foundation (AIF), and conducted
by The Research Intelligence
Group, about 83 per cent of
timeshare owners rated their
experience as ‘Excellent’, ‘Very
Good’, or ‘Good’. In addition,
approximately 66 per cent of
owners would recommend
their home resort or vacation
ownership club to their families
and friends.
Sales are improving,
delinquencies are dropping, new
developments are increasing,
value proposition is growing, and
emerging markets are flourishing.
From now on, the only point
of view is a global perspective.
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14 Q1/Q2 2013
Innovation created timeshare – and now timeshare is innovating to meet the needs and expectations of a drastically different consumer. DAVE THACKERAY reports.
A recent report on shared ownership (MMGY Global Shared Resort Real Estate Ownership 2012: A Market Perspective) says the average age of a prospective timeshare purchaser is 42. Which suggests it’s the Millennials and their radically different attitudes – both to brands and ownership – that your marketing campaigns should be speaking to.
Sally Burnett, President, Customer Insight Group, said: “Your company is no longer in control of your brand. The customer has decided what your brand stands for, and they’re telling friends and strangers.
“They’re driving the message about what your brand stands for. As a marketer you have to influence that, and be part of the conversation by providing information that others can share.”
Altogether this seismic shift in the playing field has demanded timeshare developers set sights on new tools, techniques and territories. Though the essentials remain the same – finding the right prospect at minimal marketing cost, making the sale through credibility and transparency, getting your
owners to champion your resort and bring referrals through your door using word of mouth marketing.
DIGITAL DIRECTIONIf you’re accustomed to harnessing traditional channels to reach prospective owners, finding your feet in the digital world can be an intimidating prospect.
To give its affiliates maximum advantage in reaching the growing internet community, RCI has developed an online tour generation platform building on the exchange company’s solid brand reputation.
Julia Geffner, RCI’s Vice President of Marketing, said: “EndlessVacationRentals.com enables us to help affiliates build their pipeline of tours and bring a younger generation of prospects into the sales centres in a transparent and engaging way. This generation is sceptical of being solicited on sidewalks or receiving a phone call saying they have won a vacation package.”
Marketing for a new age
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EndlessVacation Rentals.com enables us to help affiliates build their pipeline of tours and bring a younger generation of prospects into sales centres.
Julia Geffner
RCI VENTURES 15
all maintenance fees, could be a solution.
St David’s Vacation Club has the dual distinction of being the first timeshare resort in Wales –
and the first property to work with The Timeshare Channel.
Director David Lloyd, a former hotelier, turned what was a rental complex into 17 timeshare units in 1984. Located on the Pembrokeshire peninsula, the resort was a big hit and sold out three years later.
Lloyd said: “We sold 50-year leases on the basis we believed it was sufficient tenure to give a sense of real ownership. On reflection, 30 years would have been better.
“If you lose out on maintenance fees you’re not going to be able to maintain the high standards your owners expect. You’ve got to have full ownership.”
Lloyd admitted he was initially sceptical about working with The Timeshare Channel. He said: “We were very wary of getting involved with external salespeople, having only ever sold timeshare ourselves. We were anxious that they should share culture and ethics, and we discovered they did.
“We’re only doing it for weeks where problems have arisen. It’s a limited but hugely important programme for the future health of the resort.”
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RCI invests heavily in search engine marketing to drive qualified leads to its website, creating a steady tour flow going back to affiliated resorts. So far the initiative is reaping major rewards with affiliates reporting tour flow growth of up to 30 per cent.
“It’s very transparent. The guest selects how many days, and what they want included in the package – from theme park tickets to spa experiences – and there’s a button on the page saying it’s such a great rate because you’re taking a resort tour,” explained Geffner. “Transparency is essential to modern buyers.”
EndlessVacationRentals.com
PRODUCT RE-PACKAGINGThe timeshare product continues to be popular among baby boomers, but like the younger buyers coming on stream, they are looking for shorter-term ownership.
Products such as The Timeshare Channel’s package, which includes five years’ ownership and
SALLY BURNETTPresident, Customer Insight Group
JULIA GEFFNERVice President of Marketing, RCI
16 Q1/Q2 2013
LASTING ENGAGEMENTIn timeshare, it’s known as rescission – when a new owner feels they made the wrong decision. Since the introduction of the 14-day cooling-off period, having a dedicated new customer engagement plan is essential.
“The customer engagement plan should start from the point of purchase of the timeshare through the first use,” said Burnett, who addressed delegates at last year’s Resort Development Organisation conference on the power of social media to engender loyalty.
Burnett said creating a series of newsletters to reaffirm the new customers’ wise purchase decision is a method to consider as part of any engagement strategy during those early days of ownership.
SEEING IS BELIEVINGA knack for spiriting the sense of delight and passion for vacation back into the equation once the new owner returns home is what helped Group Impact win the contract to create an anti-rescission video for Disney Vacation Club. It’s a major coup for the Northamptonshire business, because as CEO Steve Pentland explained: “Disney is the world’s most famous producer of film based on emotion.”
Whatever the methods you use to market the product, it’s important to bear in mind that with a craving for evolved technology, consumers are equally expecting an evolved product.
Said Pentland: “At the end of the day, marketing is one thing, but the product itself needs a fundamental shift. I think it needs to be shorter, a more flexible
length to suit the customer, and there absolutely has to be an exit option.”
By comparison to timeshare, the fractional market is immature – which means there are many opportunities for those developers who offer the highest levels of resort quality and customer service. Companies like Regency Resorts are already enjoying significant success offering fractionals, and it’s a product also on the agenda for Onagrup Hotels & Resorts in the near future.
Onagrup Sales Manager Gerardo Maccio told RCI Ventures: “Quality and service are at the heart of everything we do. As well as innovating our product mix by working on offering fractional ownership in the future we are continuously searching for new destinations so that our partners can continue to enjoy a good holiday of ‘quality’, focused mainly on resorts on the Portuguese coast and Canary Islands.”
REFEROnce you’ve got prospects pouring through your door, discovered the sweet spot in your needs discovery to close the sale and successfully
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St David’s Vacation Club
on the Pembrokeshire peninsula in Wales is selling contemporary short-term products to help combat
maintenance fee collection issues and maintain standards at a resort that has been sold
out for more than 25 years.
The customer engagement plan should start from the point of purchase of the timeshare through the first use.
Sally Burnett
RCI VENTURES 17
negotiated customers through the cooling-off period, it’s time to apply everything you’ve learned to your sustainable sales strategy – referrals.
The resorts with the greatest customer relationships consistently win when it comes to word of mouth marketing. Regency Resorts estimates up to 40 per cent of new sales come from referrals.
One company that’s ticking all the boxes of building relationships and adding value to the social ecosystem is Hilton. It uses @HiltonSuggests on Twitter as a virtual concierge for anyone going on holiday, anywhere. It doesn’t focus on Hilton, but on helping.
Having someone with responsibility for the social channels is a prerequisite – but the smartest operators are putting social networking into different roles across the organisation to ensure expertise is available when specialised queries are being aired.
THE NEW MARKETING TOOLKITWhen it comes to building effective customer relationships, you can’t afford to forget social networking – because if you do, you can be sure someone else is influencing your new owners.
Burnett told RCI Ventures that more than 40 per cent of people turn to social networks as their first point of contact for social media requests. With Twitter you can ramp up your customer service efforts, and with email you can deliver messaging that reinforces your commitment to your owners.
Twitter CEO Dick Costolo told delegates at the
2012 Internet Advertising Bureau’s Engage conference that the company was processing half a billion Tweets daily – and chances are, you’re
already involved.RCI launched the
Timeshare Online Listening Centre (see story, page 7)
at the American Resort Development Association (ARDA)
conference last year. Already affiliates and ARDA itself are using the service
to learn about discussions in which they’re featured – anywhere on the internet.
RCI’s Geffner said: “Innovation is at the heart of what we stand for; we’re here to help our affiliate partners to change and evolve to adapt
and grow in the new marketplace.“We all know it’s changing, but we haven’t
all taken action yet. Five years from now it’s going to be very different and RCI is doing
everything it can to provide affiliates with the tools and solutions to be prepared.”
WHERE ARE THE BUYERS?Marketers playing the long game have unlocked major rewards in Russia. Using independent agents selling trial packs in the former Soviet Republic, Mark Akkerman’s team of Premier Holiday reps convert up to 60 per cent of prospective clients at resorts across Tenerife, Mallorca and Montenegro.
Akkerman said: “These people have money, they’re receptive to timeshare, and they love holidaying as a family. It’s a great combination and a great product for them.”
Relaxed visa requirements have opened the floodgates to Russians travelling further afield than their usual holiday destinations. As an increasingly affluent consumer they are demanding more for their money, and from their holiday experience.
“You can’t put them in a small unit and tell them they’ll be buying into a show apartment. They don’t believe in showrooms – they want to experience what they’re buying into,” said Akkerman, who has 18 years’ experience selling to Russian families.
Having faith – and heritage – in nations only now truly awakening to timeshare has been a priceless asset for Premier Holidays, as it has been for Regency Resorts and its Marketing Director Eivind Steffensen.
From the Nordic countries, when the company was created a quarter-century ago, Central and Eastern Europe, through the Baltic nations and the Balkans, Regency has fostered successful alliances with sales agents and established tour operators
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The Regency Club near Playa
de las Americas in Tenerife is one of five luxury properties that belong to the
family of Regency Resorts. The company sells fractional as well
as timeshare products, and estimates that 40 per cent
of new sales come from owner referrals.
STEVE PENTLANDCEO, Group Impact
DAVID LLOYDDirector, St David’s Vacation Club
MARK AKKERMANCo-owner, Mediaset Consulting
18 Q1/Q2 2013
RCI Europe Regional Director Vassilis Themelidis said all eyes are on Eastern Europe – specifically Poland, Czech Republic, Russia and Lithuania – for growth in shared-ownership sales, thanks mainly to a rapid rise in the middle class population.
Themelidis added: “We will not necessarily see resort development in these countries, but they will act as source markets for existing developers mainly in the south of Europe. We are already seeing these nationalities travelling heavily over recent years in destinations like Malaga, Greece and Cyprus.”
CHANGING TIMES OF TIMESHARENine years ago Malta-headquartered Marketing And Promotion Limited (MAP) was 100 per cent OPC. “Now it’s about two per cent – prospective buyers are more savvy than ever before and do not respond well to being stopped in the street by an OPC,” said MAP’s Sales and Marketing Director Richard Alden.
“Many consumers are concerned with the techniques used by OPCs to get them to attend sales presentations and we found that over the years this programme greatly lost its effectiveness, not to
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such as Neckermann, and developed affinity marketing strategies to reach millions of prospective owners. With referral programmes generating up to 40 per cent of new sales, it’s the on-site experience that makes the difference.
“Eastern Europeans sometimes approach new destinations with trepidation – they were typically accustomed to holidaying close to home, in places like the Croatian coast, Lake Balaton in Hungary and Black Sea destinations,” said Steffensen.
“We smooth the way at Regency Resorts with reps talking their language, and available 24 hours a day. They are there to help our guests plan their holidays and will often go out on excursions with them to make sure they get the very best from their holidays.”
Regency has embraced the changing face of timeshare products by offering a range of options, from traditional weeks’ ownership through RCI Points, shorter-term products and fractional units.
“Eastern Europeans in general love the exchange component that RCI offers, so they can explore the world,” added Steffensen.
Regency has a dedicated social media team working on a range of Facebook sites to strengthen relationships with existing owners and generate interest among prospective guests through unbranded pages which don’t exist purely to promote Regency, but the island of Tenerife in general.
The company operates various social sites to provide its owners with another communication channel, and unbranded travel and promotional sites that gain awareness through year-round organic SEO and pay-per-click initiatives.
Fortina Spa Vacation Resort
in the popular Maltese resort of Sliema receives
an average of 700 arrivals per week. The numbers offer
great scope for a range of hotel marketing programmes,
which have proved hugely successful for Marketing
and Promotion Limited.
Prospective buyers are more savvy than ever before and do not respond well to being stopped in the street by an OPC.
Richard Alden
RCI VENTURES 19
Directive has made timeshare a much more client-friendly product.”
INDUSTRY INNOVATIONS
With approximately one million hotel guests
passing through its 40-plus UK hotels each year, and a
refined attitude to data analysis, Macdonald Hotels & Resorts is in
prime position to deliver the right guests to the door of its new Portuguese
partner property Vale d’Oliveiras.Located in the Carvoeiro area of the Algarve,
Vale d’Oliveiras is a five-star mixed-use resort featuring 104 units – including 80 townhouses offering fractional ownership.
Simon Jackson, CEO of Macdonald Resorts Ltd, said: “We don’t buy external leads for marketing purposes – 100 per cent of our leads will be coming out of the Macdonald
hotel group.”Vale d’Oliveiras has swiftly been incorporated
into the Macdonald Hotels & Resorts marketing touchpoints to benefit from the brand strength of its new partner. That means guests will start seeing the resort promoted in diverse ways including in-room marketing, lobby displays and even pillow drops, as well as through the company’s website and other digital channels.
Jackson added: “Fractionals at Vale d’Oliveiras are high quality, so they’ll also be available to the high-end rental marketplace, which will also be a source of potential purchasers. As you’d expect from a major hotel group we’ve amassed a great deal of data and information about our guests, and their compatibility to the properties that we market to them.
“We also have several golf courses across the UK in some very prestigious locations, and the Algarve is obviously very golf-intensive. We can narrow down in our database people who are keen on golf, or guests that prefer suites, apartments or even hotel rooms, and tailor make their holidays at Vale d’Oliveiras or one of our other resorts to suit their specific holiday requirements.
“We have the skillset and a diverse arm to our business that’s been very successful in managing hotels and resorts for many years now,” said Jackson.
“When we first went into our current resorts it was as the managing partner for Barratt International Leisure. We only enter into ventures that produce a win-win situation for both parties – any deal has to be beneficial for the partner company and any stakeholders that come into the deal.”
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Macdonald Hotels & Resorts’
latest partner property is Vale D’Oliveiras in the
Carvoeiro area of the Algarve. The five-star, mixed-use resort
includes 80 townhouses offering fractional ownership, and the Macdonald brand is playing
a key role in a diverse marketing strategy.
mention that the costs and regulatory burdens to maintain an OPC operation have greatly increased.”
Hotel programmes, holiday exhibitions and a dedicated telemarketing centre form the mainstay of sales efforts for the established company, which markets five-star Maltese resorts and houseboats on the Venetian Riviera.
“Hotel programmes are a big hit for us,” said Alden. “Our conversion rates are higher, the quality of clientele is higher, and the focus is there – they’re not clock-watching and everything is much more relaxed.
“You have to be very careful with hotel programmes. It’s absolutely vital you don’t upset your client base within a resort, and you have to spend a lot of time as the timeshare director coordinating with hotel management.”
There are on average 700 arrivals a week at Fortina Spa Vacation Resort, one of the properties it markets in Malta. “If your people are pushy or rude and mislead people in any way, they’ll tell all the other arrivals in the restaurants or by the pool, and they won’t come to your presentations. And you have to be 100 per cent transparent,” said Alden.
MAP works with promoters at 15 holiday exhibitions in the UK to collect data about prospective owners and conduct holiday draws.
“Unlike the days gone by of £49 fly-buys, inspection visits cost between £200 and £500. You don’t need thousands of people and packed sales decks,” added Alden. “The days of playing the numbers game are gone. Absolute transparency and the new Timeshare
RICHARD ALDENSales and Marketing Director, MAP
VASSILIS THEMELIDISRegional Director, RCI Europe
SIMON JACKSONCEO, Macdonald Resorts Ltd
EIVIND STEFFENSENMarketing Director, Regency Resorts
20 Q1/Q2 2013
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Leading Indian-based business group MGM’s acquisition of the Petchey Leisure Group instantly made it a major player in the timeshare industry. And with ambitious plans for expansion there’s more to come from a company which puts service first. By STEVE ADAMS
The news that timeshare industry veteran Jack Petchey was selling his long-established Petchey Leisure Group (PLG) after a remarkable career may not have surprised industry insiders when it was announced towards the end of last year.
What did come as a shock was the purchaser – Magnum Global Holdings of Singapore, an associate company of MGM, the MG Muthu Group, a vast Indian company with more than 3,000 employees and operations spanning Asia, Europe and the US. MGM’s diverse operations cover a wide range of industries, including logistics, shipping, mining and hospitality, and 2013 marks the company’s 50-year anniversary (see opposite page).
STRENGTH IN DIVERSITYHaving such a diverse business base gives the company strength and resilience to global economic fluctuations. And though it has no previous experience in timeshare, Vice Chairman MGM Maran says the industry is a natural fit for his company.
“MGM has been involved in the hospitality business for the last two decades, operating
hotels, theme parks and fast food restaurants all over India,” he said.
“We have resorts in India and Singapore and, although they are not timeshare resorts, the aim to provide customer satisfaction and high-quality service standards is exactly the same.”
He said timeshare resorts’ reliable year-round occupancy rates coupled with the Petchey Leisure brand name created an appealing business proposition.
“Timeshare provides a secure future for any resort and our wealth of hospitality knowledge, together with the timeshare background of Petchey Leisure – which has thrived from the 1980s to the present day – opens up a world of opportunities to explore,” he explained. “Our aim is to provide the ultimate holiday experience, not only in Europe but Asia and India as well.”
A GOOD MIXMGM Anand, who heads MGM’s hospitality operation in India and Singapore, said Europe and Asia are a good business combination, not least because of the growing number of Asian residents who want to travel to Europe, coupled with Europeans developing a love >
stageMGM takes the
RCI VENTURES 21
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ABOUT MGMNow one of India’s leading private
business groups, MGM was founded
in 1963 by Dr MG Muthu – its current
Chairman – and started life as a small
logistics firm before developing
operations in a variety of businesses.
Its diverse operations now include
shipping, mining, carton manufacture, real
estate, distillery (it has more than 60 liquor
brands in India and Sri Lanka), commodity
trading and a hospitality arm that operates
hotel and resort properties in India and
Singapore under the banner of MGM Hotels
and Resorts. Its property portfolio includes:
MGM Beach Resort, Muttukad – Set
on the Blue Beach opposite the Bay of
Bengal and comprising over 88 cottages,
rooms, suites and a range of facilities.
MGM Hi-Way Resort, Ranipet – Located
on the main road between Bangalore and
Chennai, and ideal for business travellers,
with 19 guest rooms and suites.
MGM Hill Worth Resort, Coonoor –
A quaint yet urban retreat 6,500 feet
above sea level in the Nilgiri hills featuring
lovely views and 10 guest rooms.
Eastwoods, Injambakkan – A relaxing
resort comprised of 21 guest rooms
and suites in landscaped grounds just
30 minutes from Chennai.
MGM Mark Whitefield, Bengaluru –
A 76-room business hotel close to
Bangalore with state-of-the-art facilities.
MGM Vailankanni Residency, Vailankanni –
Under a mile from the sacred Vailankanni
shrine and comprising eight condo-style
cottages and 27 rooms in lush gardens.
The company also operates serviced
apartments, runs the 36-branch Indian
franchise operation of fast food chain
Mary Brown and pioneered theme parks
in India. Its MGM Dizzee World attracts
around three million visitors every year.
MGM is confident that timeshare is a natural fit with its business portfolio, having been involved in the hospitality business for two decades across India and Singapore. It operates a range of high quality properties across the region under the banner of MGM Hotels and Resorts.
MGM is always looking for opportunities to grow its business globally and we saw the potential in combining Europe and Asia, which is a good mix of business.
MGM Anand
22 Q1/Q2 2013
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> affair with holidaying in Asia.“MGM is always looking for
opportunities to grow its business globally and we saw the potential in combining Europe and Asia, which is a good mix of business to grow,” he explained.
Maran confirmed that the Petchey Leisure name will remain for the foreseeable future, with Petchey’s long-serving project director, Isla Murray, staying on to head up MGM’s timeshare division on a global basis.
MGM has also extended its long-term relationship with RCI, signing a new Master Affiliation Agreement with the exchange company. The deal covers Petchey Leisure’s six properties in Portugal, Spain and Tenerife (it also has inventory at a number of other resorts in Europe and worldwide), and also sees RCI servicing the group’s Infiniti, Atlas Weeks, Atlas Points and Genesis Club brands.
Dimitris Manikis, RCI’s Vice President, Business Development, Europe, Middle East and Africa, said: “These are very exciting times for Petchey Leisure and we are delighted by their continued commitment to RCI and look forward to continuing our long and
successful partnership.“MGM is new to timeshare but
as a hugely successful hospitality company its entry will bring further credibility to the industry.”
MGM’s commitment to the continuity of a successful business also sees the majority of Petchey Leisure staff remaining in their roles, as Maran acknowledges their importance to the ongoing project.
“We’re interested in building a professional team and aim to motivate existing employees to grow with the organisation,” he explained, adding that he expected the company’s expertise in the hotel industry to play a key role in developing resort standards.
The MGM executive also has ambitious plans for expansion. “We’ll be renovating all the Petchey Leisure Group properties, and are planning to add resorts in the UK, France, Italy, Spain, the Maldives, Sri Lanka and Morocco,” Maran added.
“MGM never stands still and talks are already in place to secure a new resort in the UK, plus the acquisition of other resorts in Asia and Europe to add to the portfolio.”
In addition to the acquisition of new resorts, MGM will bring properties from its existing portfolio into Petchey’s club products.
Anand said: “We intend to select the resorts we feel best suit the core product of Infiniti in order to offer both existing and new members the utmost flexibility when choosing their next holiday destination.
“We will also offer the very best in luxury and comfort and, where necessary, improvements and refurbishment plans will be put into action.
“The differences between countries and cultures will play an important part in giving clients a memorable and enjoyable holiday experience in whichever country they choose.”
MGM ANANDHead of MGM’s hospitality
operation in India and Singapore
MGM aims to deliver the best in luxury and comfort in its guest experience. An aggressive resort refurbishment and expansion plan is in place to ensure MGM members get the highest quality accommodation in the widest choice of destinations. Resorts pictured top to bottom: Clube Praia da Oura and Oura Praia Hotel in Portugal and Grangefield Oasis Club in Spain.
MGM Maran
MGM MARANVice Chairman,
MGM
MGM never stands still and talks are already in place to secure a new resort in the UK.
rci Ventures 23
Flexible CaChetSituated just a short distance from Old Town
Dubrovnik and enjoying panoramic views of the
Adriatic, excellent rental returns of four per cent
per annum are achievable for whole-ownership
purchasers as demand and occupancy levels
continue to grow. Occupancy in the summer
period typically runs at 95 per cent plus, so
owners tend to visit in the shoulder and low
seasons meaning the resort benefits from high
year-round occupancy, while owners capitalise on
rental returns.
Houchin recognised the benefit of becoming
part of RCI’s luxury exchange portfolio, as he
explained: “Membership of The Registry Collection
is a great benefit to our owners, and one they
Success Essentials
insig
ht
Julian Houchin is in an enviable position.
Just 15 months after taking sales and marketing
in-house at the upscale residential leisure
development, Sun Gardens, his company has
seen sales in excess of €9 million. A remarkable
achievement in what remains a very challenging
leisure real estate market.
A five-star mixed-use residential and resort
development, Sun Gardens comprises 207 one,
two- and three-bedroom residences sold on a
whole-ownership basis, together with a five-star
201-key Radisson Blu Hotel.
iO Adria has also affiliated the property with
The Registry Collection, the world’s leading luxury
fractional exchange programme. This enables
purchasers, who intend to use their residence as a
holiday home, to benefit from the flexibility of being
able to exchange unused time in their Sun Gardens
property for a stay in one of approximately 200
luxury properties in 37 countries across the globe.
The resort also offers a very successful rental
programme to allow owners to generate income
from ownership.
Naturally, Sun Gardens’ success has not come
without a long period of research and planning for
developer and management company iO Adria. As
Houchin said: “The company monitored the Croatian
market for 8-10 years before being presented with
an opportunity to acquire what we believed to be
the best resort development in Croatia. It enabled
us, as investors and long-term operators, to roll out
our first five-star resort in Dubrovnik in July 2009.”
Now, just over four years later, the iO Adria team
has developed a resort that’s much in demand
by investors, home buyers and leisure-orientated
holiday purchasers alike.
Julian HoucHinCommercial Director of iO Adria, developers of Sun Gardens
There isn’t a simple equation or magic formula for creating a winning resort development. But Julian Houchin, Commercial Director at iO Adria, developers of the hugely successful Sun Gardens residential leisure real estate development in Croatia, believes there are definitely several criteria which are essential to success. By SaRaH lEE
Sun Gardens takes full advantage of its location near Dubrovnik’s Old Town, enjoying high year-round occupancy rates and excellent rental returns.
24 Q1/Q2 2013
thoroughly appreciate. They come to buy a property
from us, then have the opportunity to travel to
resorts of the same high quality elsewhere. It really is
a fantastic add-on.”
the old adageFor Houchin the secret of Dubrovnik Sun Gardens’
success, and that of any resort, is tied to location,
design and styling, wellness programmes and
professional management.
‘Location, location, location’ may be the old
adage of real estate developers but according to
Houchin its importance should never be overlooked.
It’s no accident that the resort is located in Croatia,
a country that grows in popularity with leisure
investors and travellers each year.
“Location is the most important thing,” says
Houchin. “Each of our resort sites is within one hour
of an international airport. Many airlines have daily
flights to Dubrovnik in peak season and still maintain
at least a couple of weekly flights during low season
which makes it easy for people to visit year round,
with the option of short breaks and longer stays.
This increases footfall in resort and boosts rental
incomes.
“Sun Gardens has a prime location, 15 minutes
from Old Town Dubrovnik and 20 minutes from
an area called Pelješac, known for its wine, oysters
and seafood. It’s a terrific area for luxury travel.
We’re also right on the coast which is crucial, and
within 90 minutes’ drive of fantastic locations such
as Mostar and Montenegro for those who want to
venture further afield.”
deSign For modern travelCatering for the modern traveller in resort design
– from the way your accommodation and facilities
are structured, through to interiors – also gives a
competitive edge.
Houchin explained that Sun Gardens hosts a
lot of multi-generational family groups. Alongside
apartments sleeping up to eight guests, the resort
also has hotel rooms appealing to couples, and can
also cater for conference delegate travellers out of
season.
He said: “We run at full capacity with families
visiting from June to September. We have some of
the longest-stay guests in the region, with an average
of eight to ten nights. Some will stay for a whole
month because there is so much to do in our resort.”
Sun Gardens was designed with multi-
generational family groups in mind, with a full
range of facilities including 13 bars and restaurants,
comprehensive sports facilities, a marina providing
boat transfers to Dubrovnik’s Old Town and
tours of the Elafiti Islands, a beach club, as well
as an award-winning spa by OCCO. A further
development phase will bring in another five-star
hotel and a further 200 residences.
The resort also has extensive conference facilities
– it can cater for up to 900 delegates. “Conferences
are vitally important for any resort. They maintain
footfall and represent a good rental return for
owners. But it is a fine balancing act between
hosting conference delegates and holidaymakers,
so we only run conferences in low and shoulder
seasons which also enables us to extend the
seasons,” said Houchin.
“Our range of facilities is so diverse it puts us in
competition with leading five-star resorts across
Europe.”
As a luxury brand, iO Adria has created a
product perfect for its clientele. Sun Gardens is the
epitome of modern living with interiors inspired
by the acclaimed Hirsch Bedner Associates, yet
the developers have been careful to ensure it is in
keeping with the region.
Houchin explained: “The architect was from
Zagreb, so quite local. We ensured the resort
exterior was culturally authentic. The residences
were built about 30 years ago, yet they look like a
traditional Mediterranean village.
“Inside we used quality materials that will
stand up to long-term use, such as oak floors and
bathroom ceramics. When you develop somewhere
which isn’t just being sold, but rented, the quality of
materials is very important.”
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Dubrovnik:
increase in visitors
increase in Japanese visitors
increase in UK visitors
13%
25%
38%
rci Ventures 25
growth in wellbeingTravel trends evolve and it seems travellers’ passions
for spa and wellness experiences are unlikely to tail
off any time soon.
Embracing this, Sun Gardens features The Spa by
OCCO, which has received many accolades including
the Spa Traveller Award for Best International Spa.
Houchin said: “People are becoming healthier
and so we offer detox programmes, yoga and
fitness classes. We’re raising awareness of the resort
as a spa destination and seeing a big uplift in visits
in the shoulder season for spa getaways.”
Another trend is the traveller’s desire to learn
something new while on holiday. “An enrichment
programme is valuable as people want to learn
when on holiday – perhaps how to cook a local meal
or to play a sport,” Houchin added.
“We have enrichment programmes for adults and
children. This isn’t a new phenomena, but something
that’s been overlooked by resorts in recent years. Luxury
travellers do look for more enriching travels offering
destination insights. It gives guests more reasons to
stay in resort and increases the on-resort spend.”
YeS we CanHouchin said having a ‘Yes We Can’ attitude to
service – adopted from franchise hotel partner,
Radisson Blu – running through the staffing
structure is imperative to delivering world-class
guest experiences.
“The resort management team is at the heart
of resort success,” he explained. “It should be
supported by the owning company. Many iO Adria
directors are experienced hospitality experts, having
worked for some of the leading luxury brands in
the business, including InterContinental Hotels,
The Rezidor Group, TrustHouse Forte Hotels,
Abercrombie & Kent and One & Only. Between
them they have operated in some of the finest
resorts and hotels in the world, including Sandy
Lane in Barbados, Grosvenor House in London, La
Mamounia in Marrakech, the InterContinental and
Churchill Hotels in London.
“This is important to our owners, as it gives the
product credibility and this helps with sales. Good
day-to-day resort management is vital. We have
seen for ourselves how some resorts are not well
managed and the effects this has on the product
they offer and the subsequent results,” said Houchin.
“There are two big issues. The first is managing
seasonality and ensuring you have the right levels of
staff for the peaks and troughs throughout the year.
We manage our distribution, renting our residences
first and then the hotel rooms, to ensure rental
incomes for our owners.
“The second is pricing and positioning.
For example, we don’t look to what resorts in
Dubrovnik are doing, but those across Europe, as
we need to be competing on an international level.
Generally when people consider visiting us they are
comparing us to resorts in Italy and other five-star
integrated family resorts across Europe. When
they are looking to buy here they compare us with
residential resorts in Cyprus, Greece, Spain, Italy and
others. In the end, knowing your market is key.”
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A stunning location close to the city of Dubrovnik, modern interior design, the embracing of travel trends such as spa and wellbeing, and a ‘can do’ attitude have all contributed to the success of Sun Gardens.
Croatia by the numbers:
2,922,632 inbounds – up
8%on2011
26 Q1/Q2 2013
The fact that consumers are
changing the way they travel
and how they spend their money
has not escaped the notice of
timeshare developers.
Many are testing new
products and altering
already successful ones to
fit contemporary needs. And
while some think this is a less
than opportune time to enter
the industry, a number of new
entrants to the market are
making waves with innovative
products and mixed-use models.
Evolution solutionIn business it’s crucial to evolve,
and shared ownership has come
a long way since timeshare
developers only sold a week-long
right-to-use product.
Today developers are creating
short-term products, mixing
exchange options with whole
ownership, as well as devising a
range of investment models.
Rainer Greune is General
Manager of Hotel Interstar in
Saalbach-Hinterglemm in Austria,
which is pinning its hopes on its
new product to transform sales.
The resort opened in 2001
selling weeks at this popular
mountain destination and
recently launched a VIP Travel
Card for timeshare owners
offering a broad range of travel
benefits. The card also enables
them to purchase short periods
of ownership of either five or ten
years.
The €3,440 flexible weeks
product allows for all-inclusive
packages for just €30 per
person, per day, and additional
services worth €400 a week
such as 20 per cent reduction on
golfing green fees and discounts
on local attractions.
While the resort currently has
1,200 weeks for sale, a planned
Main image and this page: Hotel Interstar in the popular winter sport destination of Sallbach-Hinterglemm in Austria is aiming to extend its appeal by launching a VIP Travel Card for timeshare owners.
expansion of the hotel will add a
further 1,000 weeks of inventory
by 2015.
Greune said: “There’s
enormous demand around
the world from customers
who want to exchange into
resorts in Austria, so having a
four-star resort in the Salzburg
region, where there are many
attractions, is an asset.
“Through our collaboration
with RCI we have had the
opportunity to welcome more
than 100 guests from around
the world at our hotel and their
very positive responses have
shown us that we are on the
right track.”
Hotel Interstar principally
markets its revitalised timeshare
product on the internet but is
seeking sales offices in Europe,
Asia and the Middle East.
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Trying anything new can be challenging, but entering timeshare at a time of economic and social flux when owners are changing their travel habits is even more difficult, writes SARAH LEE
modernproducts for modern times
Rci VEntuRES 27
Facilities at Turkish resort Hattuşa Astyra Thermal Resort & Spa, pictured left and below left, include nine thermal pools and a 4,500 sq m spa.
intErEsting dEvElopmEntsThe location of resorts is as
important for today’s new
developers as ever, yet they’re
looking at more than just being
in a popular destination. With
today’s travellers seeking more
from their holidays than just a
place to lie in the sun, developers
are turning their focus to popular
interests such as spas, wellness
and cultural city breaks, building
them into their products.
There is no better example
of this focus on location and
travellers’ interests than at
Hattuşa Astyra Thermal Resort &
Spa, one of RCI’s latest affiliations
in Turkey.
The resort, which is located
near Mount Ida on the north
Aegean coast, has been
established by Hattuşa Saglik
Termal Turizm A.S., part of
geothermal energy producer
Hattuşa. The company has
harnessed the geothermal
properties of the local area to
create a thermal spa and wellness
resort. Assistant Manager and
Sales Coordinator Gürcan Koşar
explained: “The region is one
of the best places in the world
for geothermal energy and the
oxygen quality there is excellent.”
“We saw an opportunity to
have a resort and found this
location which has great
health-giving properties –
whether you bathe or drink the
waters here it is excellent for
dealing with health problems. The
waters have also been proved to
be very good for the heart.”
The 144-apartment resort has
nine thermal pools and a 4,500
square metre spa. It has already
sold out of its current units
and has close to 100 per cent
occupancy, success Koşar puts
down to its spa and wellbeing
offering.
“We are helping people with
a resort that promotes their
wellbeing and helps them with a
variety of health conditions, and
this is becoming more and more
important today,” he said.
“Thermal spa systems are
effective all year but usually
people prefer to use them in the
winter months so we have a
year-round product.”
Koşar said Hattuşa’s strong
image had also helped its
marketing efforts.
“Timeshare is relatively new
in Turkey compared to other
parts of Europe, but it has been
seen as a bit ‘dirty’, which is why
we’re using our strong brand
name to help us sell here. And
our members are 99 per cent
happy with the product so we
are using this fantastic statistic in
our sales. Ninety per cent of our
owners are Turkish, but we also
have owners from Scandinavia,
Holland, Germany and the UK,”
he explained.
“As this region will get a
new international airport this
year, we’re also expecting much
more interest from international
visitors.”
While a focus on health and
wellbeing has become popular
with travellers, there has also
been a growing interest in city
breaks and developers like
András Kovács are creating
products to fit this need.
Kovács is one of the team
behind Clubhotel Cortina in
the Austrian capital Vienna, a
product as much of interest to
leisure visitors as business people.
Clubhotel Cortina is a rare find
in shared holiday ownership – a
timeshare resort in the heart of a
capital city. It has a four-star hotel
with 27 rooms and 20 timeshare
apartments across two buildings in
the city’s elegant Hietzing district.
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Our members are 99 per cent happy with the product so we are using this fantastic statistic in our sales.
Gürcan Koşar
28 Q1/Q2 2013
“People love visiting cities
to experience their culture but
there are few great examples of
timeshare resorts in cities. Given
our experience in developing
resorts we felt this was an
excellent opportunity to give
people a quality resort in a prime
location,” explained Kovács.
“It’s a very good market –
the resort is very close to the
Schönbrunn Palace so not only
do we have plenty of tourists but
also business guests – another
great market to sell to.”
in thE mixWhile older resorts are often
dedicated to timeshare, for some
time much of the industry has
lauded the mixed-use model, and
for new entrants to the market
it seems an essential element of
their product offering.
“While having a hotel as an
element of your development
gives you income over many years,
timeshare provides a quick source
of capital, which is great for your
credit,” explained Kovács.
The developer had the
experience to inform the
introduction of the mixed-use
model at Clubhotel Cortina as it
had already developed another
resort, Clubhotel Kreischberg, in
Styria.
“Mixed-use has been the
key to our success. For us it’s
been a good idea proven out by
results,” said Kovács.
“Starting mixed-use was a
commercial solution. The hotel
income can cover your everyday
costs, while timeshare can be
used to generate cashflow.”
But as Kovács points out, the
two resorts are very different.
Clubhotel Cortina reaps the
rewards of its city location
with a long season. Conversely,
Clubhotel Kreischberg, which
opened in 2001 in the Austrian
countryside, has 137 units and
5,000 timeshare members, and
is popular with winter sports fans
but has a short winter season.
“Kreischberg’s main season is
over by spring,” explains Kovács.
“But hotel occupancy in Vienna
is high year-round and runs at
about 70 per cent.”
The mixed-use model is also
central to the product offering
at Hattuşa Astyra Thermal
Resort & Spa. “We will be
opening a second phase with
215-apartments, a five-star hotel,
and an 11,500 square metre
health and spa centre, and a
hospital in 2014,” explained Koşar.
“Mixed-use is so important
to our product offering – the
timeshare apartments will give
people the chance to stay with us
for a longer period after having
treatments at the hospital.”
Whether it means integrating
a five-star hotel into your resort
development, providing a
comprehensive wellness offering
or creating an appealing and
well-structured product for the
modern traveller, all these new
entrants agree that for a resort
to succeed it must offer today’s
clients something just a little bit
special.
Clubhotel Cortina, in the heart of Vienna, is one of a limited number of timeshare resorts to be located in a capital city – a factor the mixed-use resort aims to make the most of in its marketing.
Starting mixed-use was a commercial solution. The hotel income can cover your everyday costs, while timeshare can be used to generate cashflow.
András Kovács
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After a tough couple of years with rapid development suddenly stalling, Dubai is surging back to life. A variety of investment projects and tourism initiatives are set to boost visitor numbers, and the shared-ownership industry is taking note. By steVe ADAMs
a Universal Studios franchise. The ‘Mall of the World’ alone is expected to host 80 million visitors a year.
A huge proportion are likely to come through Dubai International Airport, which saw more than 57 million passengers in 2012 and is now the second busiest international airport in the world. Its facilities, along with the number of routes operated by chief carrier Emirates Airlines, are being expanded and Dubai’s ruler Sheikh Mohammed bin Rashid al-Maktoum expects airport traffic to top 90 million in six years.
Dubaion the up
Ambitious PlAnsThe Sheikh is reported to have said: “Our development initiatives concerning infrastructure in all sectors should be aligned with this growth rate. The current facilities available in Dubai need to be scaled up in line with the future ambitions for the city.”
Those ambitions are largely being fuelled by the tourism boom that has been at the heart of Dubai’s dramatic recovery. Visitor numbers increased by 9.3 per cent in 2012, taking the annual total to more than 10 million for the first time in the city’s history.
A range of factors has contributed to the growth,
Dubai by the numbers:
2,105,000Largest
population in the UAE
10.16million
Hotel guests and cruise passengers
in 2012
Dubai is back. The United Arab Emirates (UAE) city whose skyline became synonymous with a stream of fantastic buildings and widespread development – and then idle cranes, when the real estate market crashed and a corporate debt crisis brought work to a standstill – is buzzing once again.
Not surprisingly the city that’s home to the world’s tallest building isn’t doing things by halves. Plans are already under way for a massive tourism and retail development that will include the world’s largest shopping mall, a park bigger than London’s Hyde Park, hotels and
30 Q1/Q2 2013
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DUBAI’S RULER
Sheikh Mohammed
bin Rashid al-Maktoum
joE SItA President of
IFA Hotels Investments
ShAfI SyED RCI Regional
Director, Middle East and
North Africa
according to HE Helal Almarri, Director General of Dubai’s Department of Tourism and Commerce Marketing (DTCM), including a coordinated city-wide destination management strategy, world-class infrastructure, having an ideal location at the crossroads of East and West, and “unrelenting efforts to enhance our already diverse and compelling tourism offer”.
Increases in hotel guests, revenues and nights stayed all demonstrate Dubai’s strengthening position as one of the world’s most popular destinations.
The boom has seen 24 new hotels open in 2012 (adding 3,600 rooms) – taking the total to 599 (57,000 rooms) – with more to follow this year. A recent report by real estate experts Jones Lang LaSalle suggests there will be another 5,400 extra hotel rooms in 2013, with a further 13,600 rooms over the next three years.
The additional supply isn’t reducing room rates. According to DTCM figures, average room rates rose from AED 563 in 2011 to AED 588 in 2012. Increases in occupancy, up to 78 per cent from 74 per cent in 2011, helped to drive a revenue rise of 17.7 per cent, with average length of stay going up to 3.76 nights, a 4.1 per cent increase.
HE Helal Almarri said: “The increasing average length of stay and the rising number of hotel apartments is evidence
of a growing trend in people and families visiting Dubai for longer periods – historically the city was seen by some markets as a stopover destination but in recent years it has become the destination.”
oPPortunity for shAred ownershiPThese statistics will be welcome news to the shared-ownership sector, which has yet to fully exploit the region, according to Shafi Syed, RCI’s Regional Director for the Middle East and North Africa.
“Dubai’s future is very bright,” he said. “It’s no longer a construction site but an established and exciting destination that supports success.
“The ongoing regeneration shows there is real confidence in the region, and Emirates Airlines increasing international routes will make it even more accessible for visitors. The potential for shared ownership is tremendous.”
A variety of factors support his conviction. Dubai’s real estate market is bouncing back, strong hotel room rates strengthen the timeshare value proposition, average length of stay is increasing and recent upmarket developments sit perfectly with products such as fractionals and private residence clubs.
Another encouraging factor is Dubai’s popularity with the British and European markets. Some 80 flights arrive every day from the UK, delivering around 700,000 visitors in 2012, making it the third largest source market after Saudi Arabia and India.
“The British are the main tourists to Dubai,” stated Syed. “And they are also the biggest timeshare buyers in Europe.”
The correlation seems perfect,
and while Syed admits development costs can be high, Dubai is increasingly being seen as the safest place to invest in the region.
“The uprisings in the Middle East and civil war in Syria have made Dubai an investment oasis in the region, attracting funds seeking a politically and economically stable haven,” he explained. “The improving financial situation makes Dubai a good source market for shared ownership and a great tourism destination.
“Middle Eastern customers are adventurous travellers – they visit the US, Europe, Malaysia, Turkey, Morocco, India and more. RCI affiliate Club Mahindra opened a sales office in Dubai in December 2012 and acquired a stake in a Dubai hotel property based on heavy demand from their members. I think others will follow – we’re working with a number of developers keen to open sales locations and resorts here.”
ifA set the bArOne of those developers is IFA Hotels & Resorts, which opened its first private residence club, Fairmont Heritage Place, The Palm, in February.
The resort is affiliated to luxury exchange programme The Registry Collection, a move that gives it a distinct marketing advantage, according to Joe Sita, President of IFA Hotels Investments.
“The increased global reach from which owners benefit is extremely attractive,” he says, adding that quality brand names coming to the region are improving the image of shared ownership.
“The history and stability of IFA Hotels & Resorts, plus the proven quality of our product upon delivery, certainly help to quell any investor concerns as to
We’re aiming to develop a Dubai market for what we call ‘affordable luxury’ with our next YOTEL project.
joe Sita, IfA
rci Ventures 31
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the longevity of the company or the product,” he says. “There’s also an overall sense of security for tourists when they see familiar Fortune 500 companies setting up shop in the Emirate.”
Sita said the market was also starting to see the benefits of a wider product mix, with the emergence of three- and four-star properties and budget accommodation shifting the emphasis away from five-star hotels.
“There is still room for more variety,” he said. “We’re aiming to develop a market for what we call ‘affordable luxury’ with our next YOTEL project, for which site negotiations are underway.”
That’s not all. IFA’s plans for the region are “expansive” according to Sita, with whole and shared-ownership projects to the fore. Golden Mile, Palm Jumeirah, comprises 10 interconnected buildings that include retail and
Left: An aerial view of Dubai’s stunning Palm jumeirah, which features IfA resorts fairmont heritage Place, Golden Mile and Kingdom of Sheba.Below left: one of the Kingdom of Sheba’s Baliqis Residences.Page 29: Stunning views from fairmont heritage Place.
freehold office space and 860 residential units, while Kingdom of Sheba, a mixed-use residential and leisure resort, is set to be the company’s largest single development.
“A beach club, several pools, shops, restaurant and convenience store are planned for phase 1 of the resort with a five-star hotel and possible vacation club planned alongside further phased development,” said Sita.
“We are currently working on a vacation club venture aimed to help drive the expansion of the product in the Middle East by removing some of the typical barriers to sale – one of which is the lack of Sharia-compliant financing options,” he explained. “Our goal is to then expand the product on a global scale.”
This is a vision that could also be used to describe the destination of Dubai itself.
joe Sita, President of IfA hotels Investments, highlights Dubai’s shared-ownership strengths.
The climate is not as subject
to seasonal variation as
other destinations and there’s
a wealth of entertainment and
retail on offer.
Inbound tourism numbers
now exceed 10 million
per annum from a diverse
geographic marketplace.
The authorities have set
a stringent set of rules
and code of conduct to
prevent miss-selling or
misrepresentation.
The prevention of off-plan
sales assures purchasers that
what they buy is tangible.
Ownership titles are held
by the authorities and a
maximum sales per unit
is enforced to prevent the
oversell of inventory.
These rules and regulations
ensure that developers must
know about the industry
and be well prepared before
entering the market.
Land of opportunity
ifahotelsresorts.com
5
4
3
2
1
Dubai by the numbers:
9.96million
Hotel guestsin 2012
37,445,453Guest nights
AED18.82billion
Hotel revenues – up 17.9% on
2011.
32 Q1/Q2 2013
UNIQUE MERLIN MAGIC“Our USP is that we are clients, not analysts. We understand what operations managers want from the process and have been able to re-engineer it to create a more logical process,” said Pnematicatos.
“The Merlin team has a genuine understanding of the timeshare business and resort operation because they have done it all. I think it is fair to say we have a wider overview of all the processes and how they work together than many of our clients do.”
It’s not just the industry-based experience that drives the Merlin magic, as he explained: “Cloud-based technology is the way of the future. In addition to the obvious advantages of using one database to reduce replication of work and the opportunity for error, Cloud technology is not outdated as soon as it is purchased and implemented.
“Our clients subscribe to Merlin software as a service and rent resources – software – not in their offices, but in the Cloud or the internet. They buy only what they use and any software updates are given to them automatically as their application is updated in the Cloud. Unlike traditional back-office systems, clients do not have to pay for upgrades and any upgrade will be a seamless process. We upgrade the systems every week and our clients know nothing about it – it just happens.”
MIKE PNEMATICATOSFounder, Merlin
A single database is what every
resort operation should be working from,
according to Mike Pnematicatos, Founder
of software solutions provider Merlin.
Having been in the timeshare industry since
1983, when he became involved in resort
development, the frustration and extra work
created by using several disparate systems
vicariously linked to each other inspired him
to develop his own software in 1987, which
launched in 2006. The software development
was based on 17 years’ experience of resort
operations, from sales through to day-to-day
management.
Merlin is the only complete enterprise
timeshare software system to be Cloud-
based and served on demand over the
internet. Users can access their Merlin
accounts securely, via a web browser,
anywhere with an internet connection.
The service functionality includes
the Merlin marketing, sales, front-office,
property management and back-office
modules, stand-alone exchange facility and
website integration. This form of ‘software
as a service’ (SaaS) helps businesses
become more efficient and productive.
Today, Merlin has clients on every
continent and in 17 time zones, with support
teams on the ground in Australia, Spain, the
UK, South Africa and most recently in the US
as the company expands into this exciting
marketplace.
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Whether a single, multi-site or mixed-use operation, most resorts will have data stored on multiple systems which don’t talk directly to each other. Using Cloud technology, Merlin Software has a fully-integrated software solution to streamline all aspects of resort management efficiently. HELEN FOSTER reports
Ahead in the Cloud
Today, Merlin has clients on every continent and in 17 time zones, with teams on the ground in Australia, Spain, the UK and South Africa and the US.Mike Pnematicatos
RCI VENTURES 33
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MERLIN SUPPORT“At minimal cost we carry out a business process and product analysis with our clients and then set up a test process and user acceptance testing,” says Pnematicatos.
“This is proof of concept stage, after which a client can decide whether it works for them. When they proceed we provide one to four weeks of on-site training and a further two weeks of ‘hand holding’. Even when our clients are flying solo, they have access to a sophisticated 24/7 online support system.
“We price according to the scale of the client’s operation and a resort with 25 units will get exactly the same software and functionality as a 1,000-unit resort. The technology platform for Merlin consists of a Microsoft SQL Server database (back end) with the front end built using Active Server Pages (browser front end).”
With a full order book for this year, many in the industry have already got their heads in the Cloud. quickmerlin.com
BACK OFFICE BENEFITSThere is a package for every area of operation. For example, inter-company accounting and the business of balance sheets and income statements, though not often debated at industry forums and hidden away in the back office, are a crucial and complex part of any resort operation. Merlin has automated this process in the Cloud, effectively eliminating the possibility of leaving out any vital account entry replication or overlooking any transaction entries. Automated inter-company accounting delivers a simple and accurate end-of-year account balancing process. Accrual suspense accounting can be dealt with similarly.RCI & AFFILIATE INTEGRATION
Merlin has been working with RCI for some time. In December 2012 RCI
announced the launch of its Deposit Simplification Interface, allowing
links between its system and external property management systems. The
interface is designed to integrate and automate operational processes for
RCI affiliates. Merlin Software For Vacation Ownership created an interface
with RCI which allows members’ deposits to be automatically validated and
deposited into the affiliate’s site on Merlin’s Cloud-based software. Inbound
RCI reservations are also automatically created and maintained in both
systems using the intelligent interface.
Because Merlin software is purchased as a service package, the new
functionality will be available to Merlin customers who are also RCI
affiliates for a minimal configuration fee but no additional on-going cost.
Those RCI affiliates are now able to access:
1. Real time deposit verifications with little or no manual processes
2. Inbound guest lists automatically entered into the Merlin system
3. Inbound guest reservations automatically booked
4. Time-saving in assigning units for inbound guests
5. Improved check-in process for resorts.
Pnematicatos explained: “Merlin Software is one of the first of the
property management software providers to complete such an interface,
which allows RCI affiliated resorts to have their live data automatically fed
from the RCI system directly into Merlin. Our team worked incredibly hard
on this project because we understood the huge benefits it can bring to our
clients who are RCI affiliates.”
The system is infinitely flexible and its architecture can accommodate
weeks, points and bonus weeks in a single package.
34 Q1/Q2 2013
A FINAL THOUGHT
It’s still possible to secure timeshare financing in a post-financial crisis US. Michael Szwajkowski, EVP, Vacation Ownership Team, Commercial & Specialty Finance, at Capital One Bank, sets out what he expects of the developer to seal the deal
Independent finance companies
were the primary source of debt capital
to the vacation ownership industry
prior to the 2008 crisis. However, many
such companies ceased lending to
the industry and some ceased to exist
altogether, leaving operators facing
more stringent lending criteria while
competing for scarce loan proceeds.
But adversity is the mother of
invention and many timeshare operators
demonstrated ingenuity in fine tuning
sales operations and financial profiles to
emerge in a better position than before.
Many developers who survived now
function more efficiently and are in a
better position to pursue financing within
the industry’s current business model.
Another important 2011 change was the
metamorphosis of funding sources for
the timeshare industry, when banks and
the securitisation market became the
dominant liquidity providers.
As a ‘Top Ten’ US bank committed to
serving the vacation ownership industry,
Capital One Bank’s team made four key
observations to help those pursuing
financing – wherever they may be
operating in the world:
Strong, clean balance sheets attract capital – A clean balance sheet is the
‘new normal’ for companies looking
to secure attractive financing. The
focus should be on simplifying and
strengthening their balance sheets, for
example, by providing adequate reserves
and more closely matching assets and
liabilities.
Strong consumer credit and FICO scores are critical – In the post-
financial crisis environment these are
no longer options, but rather the norm.
Maintaining consistent, disciplined
credit criteria while building a portfolio
of receivables will pay dividends.
In addition to increased earnings,
timeshare operators will benefit
from greater access to financing and
operational improvements that come
with a well-performing portfolio, such
as lower delinquency in terms of
customer accounts.
Robust reporting systems are essential – Information is power
and in-depth reporting systems
are tantamount in providing both
banks and the capital markets
with accessible, but detailed views
of receivables portfolios. More
comprehensive reporting systems
give financiers and other key
stakeholders the ability to stratify
portfolios across multiple criteria (ie:
FICO scores and geographic location).
Experienced management teams with a proven track record – In a
more stringent financing environment
the calibre of a leadership team is
more important than ever. Strong
management teams provide the
confidence that lenders and investors
look for when making financing
decisions.
On the money
CapitalOneCommercial.com
Capital One Bank’s Vacation Ownership team provides receivables, inventory and working capital loan facilities to timeshare operators across the US and the Caribbean. This team is part of the Bank’s Commercial and Specialty Finance Business, which serves clients through a team of more than 200 associates who have expertise in healthcare, security and defence, technology, asset-based lending, rediscount finance, as well as equipment leasing and finance.
ABOUT CAPITAL ONE
MICHAEL SZWAJKOWSKIEVP, Vacation Ownership Team, Commercial & Specialty Finance, Capital One Bank
For more than 35 years, RCI® has been the exchange provider of choice for some of the most successful developers in the vacation ownership industry. With over 3.8 million members and more than 4,000 affiliated resorts worldwide, we are uniquely positioned to help you achieve your goals in shared ownership.
Success, by any measure, begins with a solid business vision. RCI is ready to support you in yours.
For more information, e-mail [email protected] or call +44 (0) 1536 314651.
RCI and related marks are registered trademarks and/or service marksin the United States and internationally. All rights reserved.©2011 RCI, LLC. All rights reserved. Printed in the U.S.A.
“Over the last six years, with the help and support of the RCI® team, Macdonald Resorts Ltd. has achieved eight RCI Gold Crown Resort Awards and an RCI Silver Crown Resort Award across our RCI-affiliated properties. Working closely with the RCI team we have enhanced our service and quality to the high standards of today, benefiting the whole Macdonald group as well as all 25,000 of our owners.”
Simon JacksonChief Executive Officer, Macdonald Resorts Ltd.RCI Affiliate since 2001
Higher standards for exceptional holiday experiences
Macdonald Elmers Court Resort, England
What’s the key to sensational sales?We’ll help you put your fi nger on it.
In our increasingly point-and-click world, the customer demand for more dynamic presentations of information is growing. As a leader in the industry, RCI has a tradition of meeting the future head-on, supporting our affi liated resorts with both quality content and powerful, leading-edge technology. RCI’s most recent innovation, RCI® Presenter, is a touchscreen interactive sales tool that can add extra sizzle to your sales centers. Packed with engaging content, RCI Presenter offers you and your business exciting new ways to drive traffi c, generate sales and ultimately lower your marketing costs.
Need fl exibility? RCI Presenter lets you customize the content to align with your sales needs.
At RCI, the best vacations start with great innovation.
To learn more visit www.rciaffi liates.com or email [email protected]
© 2013 RCI, LLC. All rights reserved.
What’s the key to sensational sales?We’ll help you put your fi nger on it.
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