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

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The Registry

Collectio

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RCI Platin

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RCI Prese

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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: helen.foster@rci.com 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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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 gosocial@rci.com 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.

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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

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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 amanda.white@rci.com 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 amanda.white@rci.com

© 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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