RCI Ventures: July 2009

Vesa Tengman: ‘In bad timesonly an extremely strong conceptand strong organisations dowell.’ PAGE 25

Arlene McCarthy:‘Consumers will bemore confident in theirproduct. PAGE 16

Jennie Thompson: ‘Retainingthe member and their levelof activity is the key to thefuture’. PAGE 38

Enterprising ideas for the vacation industry July 2009

DISNEY FAIRYTALEDISNEY VACATION CLUB, NEWLYAFFILIATED TO GROUP RCI,SHARES WHAT DISTINGUISHESITS PRODUCT, AS WELL AS NEWRESORTS AND FUTURE PLANS

GREEN TEAMFAMILY OF RESORTDEVELOPERS PUTENVIRONMENTFIRST IN MEXICO

A PROFILE OF ONE OF EUROPE’SLATEST FRACTIONAL RESORTS

PROVENCE PROPERTY

HOW THE INDUSTRY ISCOPING WITH RECESSION

CRISIS MANAGEMENT

EXCLUSIVE INTERVIEW WITH MEPBEHIND EU TIMESHARE DIRECTIVE

LAW MAKER

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4 MARKET OUTLOOK:A news and views round-up from Europeand around the world

9 COVER STORY – DISTINCTLY DISNEY:Disney Vacation Club has affiliated toGroup RCI and Ventures looksat the magic that makes thecompany a world leader inthe hospitality industry

14 SWITCHING ON TO SERVICE:Resort Television proves the humble TV still has a big part to play in engaging guests

16 LAW & ORDER:In an exclusive interview, Arlene McCarthy, theMEP spearheading the EU Timeshare Directive,discusses its likely impact on the European industry

20 PASSION FOR PROVENCE:Showcasing The Provence Club – Les Maisons deBaumanière, a new luxury fractional brand which embodies the finestelements of this exclusive holiday destination

25 CRISIS? WHAT CRISIS?:Three of the industry’s leading European developers share their views onbeating the recession

28 THE GREEN FAMILY:Pioneering ‘green’ principles and ideas put into practice by the Arroyo family attheir Mexican resort, Tres Ríos

32 SHINING LIGHT:A passionate timeshare owners’ association breathes new life into Club LasCalas in Lanzarote

35 THE SOCIAL REVOLUTIONSocial networking is leading an online marketing revolution

38 FINAL CALL – NO PROBLEMS, ONLY OPPORTUNITIES:JENNIE THOMPSON, director of Spanish-based consultancy LeisureSolutions, focuses on attracting new owners

RCI Ventures, July 2009 | 3

CONTENTS EDITORIAL

VENTURES is published by Group RCI, a trading name of RCI Europe, Kettering Parkway, Kettering, Northants,NN15 6EY, United Kingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: [email protected]: Helen Foster. DESIGN: Richard Blaney. PRODUCTION CO-ORDINATOR: Claire Williams. ADVERTISINGSALES: Media Line Ltd. Tel: +44 (0)870 250 8701. Repro: JP Repro. PRINTING: CKN Print Ltd. Cover image fromAlamy. Original articles and contributions may be reproduced or transmitted only with written permission fromthe publisher. No responsibility is accepted by RCI Europe for any losses or other consequences resulting fromadvertisements or other material appearing in this publication. RCI Europe reserves the right to accept or refuseadvertisements at its discretion without assigning any reason for doing so. © RCI Europe 2009.

Group RCI approaches the close ofQ2 with eight new timeshareaffiliations across Europe and twonew additions to The RegistryCollection exchange programmein France and Tunisia. There areat least half a dozen moreRegistry Collection signings

currently under negotiation.Our affiliates and our business development teams have

achieved this in the face of some of the toughest tradingconditions ever experienced and it proves our premise that aquality product and strong concept will always have a place inthe market. This philosophy is shared by three of ouraffiliated developers who give their views on survivingrecession on page 25 of this issue.

Concept and quality come together in an exemplaryfashion in two of our most recent affiliations. Our coverfeature on page 10 profiles the magic of Disney Vacation Cluband the wonderful work of the Disney Imagineers in creatingexceptional holiday experiences for our members. Page 20uncovers the Provence experience and the spirit of this veryspecial region which is at the heart of The Provence Club –Les Maisons de Baumanière, our latest signing to TheRegistry Collection in Avignon.

Further credit goes to all our resorts for continuallyenhancing quality and member experiences. One example isClub Las Calas, featured on page 32, where it seems theowners’ committee and management company, ResortSolutions, have worked some magic of their own by bringingnew looks and life to the resort while keeping maintenancefees stable and the owners happy.

There are so many positives for our industry presently –not least the findings of the 2008 Industry Study carried out by The Christel DeHaan Tourism and Travel ResearchInstitute at Nottingham University Business School on behalf of RDO. A pleasing 87 per cent of timeshare ownersresponding are happy with their holidays and nearly threequarters consider timeshare accommodation to be betterthan other self-catering holidays.

The new EU Timeshare Directive next year should serve to further boost consumer confidence and drive fraudulentoperators out of the industry.

It was interesting to read the views of Arlene McCarthy,the MEP spearheading the new Directive, in her exclusiveinterview on page 16 in which she acknowledges thecontribution timeshare makes to national economies andlocal communities.

The news in this issue is very encouraging and I believegives us grounds to view the future with optimism.

SincerelyJonathan Back

Managing director, Group RCI EMEAI

VENTURES MAGAZINE SERVING RCI’S MARKETS IN EUROPE, JULY 2009 THE MIDDLE EAST, AFRICA AND INDIA

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4 | RCI Ventures, July 2009

VENTURINGONLINE

VIETNAMESE FIRST FOR GROUP RCI

TUNISIAN RESORT SIGNS TOTHE REGISTRY COLLECTION

A R O U N D - U P O F I N D U S T R Y N E W S , V I E W S , A N D P E O P L E T O W A T C H

Marketoutlook

RCI Ventures magazinenow has its own website –www.rciventures.com – to support themagazine and provide even greateraccess to the latest news.

Launched in June, the majority ofthe material on the website will beinternet exclusive, comprisingbreaking industry and Group RCInews stories, great tips and ideasfrom hospitality experts, as well ascore magazine features and articles.The site also includes an archive ofthe printed editions and gives visitorsthe opportunity to subscribe to themagazine, as well as invitingfeedback to the editor, Helen Foster.

Foster said: “As the print edition ispublished three times a year it’simportant to have the means to getbreaking news out quickly and it’sexciting to be able to do this for ouraffiliates and industry associates.

“The content on the site willcomplement the magazine perfectlyand, in many ways, act as anappetiser for the exciting features tocome. As a completely free and publicwebsite, I’m hoping it will also drivenew visitors to Ventures and serve asanother means of educating andengaging those who are looking toenter the industry and contribute toits growth. As it is further populatingthe internet with industry positives,the new Ventures site could also helpto boost consumer confidence in thetimeshare product.”

Finally, not only doeswww.rciventures.com provide thelatest news, it also features an alertsservice so subscribers can receive anupdate e-message every time newcontent is uploaded.

For operational information,updates and documentation, GroupRCI-affiliated developers should visitwww.rciaffiliates.com

PRODUCT:

A conceptdrawing of the

Las Vegas-styledcentre of TheInternational

Riviera luxury resortdue to open in

Monastir in 2011.

Group RCI announced itsfirst affiliated resort in Vietnam at a pressconference in Ho Chi Minh City.

Geoff Ballotti, president and CEO,Group RCI, welcomed Sea Links Golf &Country Club to the company’s exchangenetwork. He said: “This historicrelationship is further testament to ourcommitment to offer our members thebest vacation options around the world.”

The resort is 200 kilometres east ofHo Chi Minh City against the backdrop ofPhan Thiet’s coastline and is noted as theleading golf resort in Vietnam, offeringluxury accommodation.

Nguyen Van Thieu, vice chairman of developer company, Rang Dong Group, said: “It was aneasy decision to work with RCI, as it will be valuable to have our resort in such an extensiveexchange network. I believe that our professional services, as well as the stunning landscape inPhan Thiet, will provide unforgettable experiences for guests at Sea Links Golf & Country Club.”

The BW Group has announced thatits new fractional development, TheInternational Riviera resort development inTunisia, has affiliated with The RegistryCollection® exchange programme, the world’slargest luxury exchange programme.

The five-star residential resortdevelopment will comprise 60,000 wholly-owned and shared-ownership properties whenit is completed. BW Group chairman, BobbyWahi, says that despite the global financialcrisis, the multi-billion dollar project hasattracted a high level of funding.

The first build phase will complete in 2011and include 50 luxury water villas to be sold ashigh-end fractional ownership properties andwill be enrolled in The Registry Collection.

The concept for The International Rivierawas created by Wahi himself who wants theresort city to be a fusion of European elegance

and the 21st century pioneering spirit of Dubai.“We are very proud to add a property of the

calibre of The International Riviera to TheRegistry Collection programme,” said GreggAnderson, global managing director, TheRegistry Collection. “Working with affiliatessuch as the BW Group ensures that ourmembers receive exactly the world-classluxury travel experience they desire.”

Wahi added: “The Registry Collection offersa unique exchange programme for ourfractional owners. The level of service andexclusivity that The Registry Collectionprogramme provides is precisely what ourowners are looking for.”

The BW Group is set to replicate the modelin China, where it has signed a Memorandumof Understanding with the government todevelop a 26-kilometre square island in theSouth China Sea.

INDUSTRY:

INDUSTRY:

Pictured at the official signing are, from left: Le Minh Tri,general director of SAPro Corp; Nguyen Van Thieu, vicechairman of Rang Dong Group, and Adrian Lee,managing director, Group RCI Asia.

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This year, Club LaCosta Resorts & Hotels (CLC)celebrates its Silver Jubilee withits 2,000 staff and more than50,000 members.

CLC is a leading player inEurope with 23 owned resorts,its own real estate and travelbusinesses, a resortmanagement operation and ayacht club.

Company chairman andfounder Roy Peires said: “Itreally is just the beginning. Weare continuing to refine the

product, from reservations todelivery on site, and plan to takeour successful formula intoother major holiday destinationsacross the world.”

The formula is one of mixedcommunities, comprisingfreehold properties and inventoryfor its points-based VacationClub, with an extensive range offacilities and amenities whichcarry the Club La Costa standardof quality and value.

Silver Jubilee celebrationswill extend throughout 2009,

under the slogan‘Silver Jubilee, PureGold Holidays’.Plans includespecialcommemorationsfor members andstaff with thelongest loyal servicerecords. Some 77members who joined in CLC’sfirst year, are still enrolled.

“I never envisaged thecompany growing to its currentsize,” said Peires. “What really

excites me is the continuingpotential for growth as weincrease the diversity of holidayexperiences and services for ourmembers.”


CONSUMER SHARED-OWNERSHIP TITLE HITS UK SUPERMARKETSOwners Perspective

magazine is successfullyproviding a communicationchannel between the timeshareindustry and the UK consumersource market. Proprietors Pauland Sharon Mattimoe have nowsecured a deal with severalleading UK supermarkets,including Tesco and Sainsbury’s,to distribute the magazine atcheck-outs.

Since its launch in April,Owners Perspective has reacheda circulation of approximately42,000 copies per month and isalso available online. Designed toeducate and familiarise thegeneral public about the

timeshare product, it provides anindependent overview of theleisure property and luxury travelmarket covering timeshare and

fractional ownership, resort realestate and private residenceclubs, as well as all luxury traveland lifestyle topics.

Initial feedback indicates ahigh level of interest in theproducts and interaction with themagazine’s website suggests agrowth in online research prior topurchase.

Paul Mattimoe, CEO,Perspective International, said:“Owners Perspective magazine isproviding shared-ownershipdevelopers and marketers withexposure to a wider yet highlytargeted marketplace anddelivering direct purchase andrental enquiries to its advertisers.

“We view it as particularlyvaluable for the fractionaldeveloper or marketer lookingfor sales to grow this relativelynew industry in Europe.”

July sees the launch of a newFractional Property Guide byPerspective International on itsOwners’ Perspective website.The new guide is designed toharness the high traffic of themagazine to provide highlytargeted and product educatedpurchase enquiries for fractionalproperty developers.

Currently in preview mode,the site can be viewed atwww.ownersperspective.com/fractionalpropertyguide/

DEVELHOTEL.COM – A FIRST IN THE ONLINE MARKETPLACEDevelhotel.com is the first online marketplace for hotel

developments designed to help put developers, investors andpotential industry suppliers in touch with each other.

Backed by a team of hospitality and real estate developmentspecialists, the website will bring efficiencies to the hospitality industryby eliminating geographical barriers and suggesting ways to reducedevelopment costs and plan a more efficiency-conscious approach.

CEO is Ivar Yuste (pictured right), a hospitality industry veteranwho most recently held executive positions in the shared-vacationownership arm of Spanish giant, Hotetur Hotels & Resorts, as well

as Group RCI. He said: “Using Develhotel.com,hospitality and development companies will be ableto interact online by logging in to the platform fromany PC connected to the internet. Our clients pay aflat annual fee to showcase the profiles of theircompanies and their hotel assets or projects.

“Clients can also search for projects or properties in any regionof the world. Develhotel’s role is to put all parties in contact aroundspecific hotel projects and properties. We leave the profits of thesetransactions and operations to our community of users.”

INDUSTRY:

PRODUCT:

PRODUCT:

CLUB LA COSTA IS 25 YEARS YOUNG

Roy Peires and Club La Costa celebrate thecompany’s Silver Jubilee this year.

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A R O U N D - U P O F I N D U S T R Y N E W S , V I E W S , A N D P E O P L E T O W A T C H

Marketoutlook

INDUSTRY MOURNS LEADING LIGHTSThe industry has seen the passing of three

of its greatest ambassadors in recent

months. Jim Andrews, founder and

president of Club Greece Resorts lost his

brave battle with cancer on 4 February,

aged 68. Tony Hartley, club secretary at

Club Olympus passed away on 21 February

at the age of 54. Peter Cox, a partner in

Tradewinds Cruise Club, died in a tragic

swimming accident while on holiday on the

island of Ilha Grande in Brazil on Easter

Saturday. Peter was just 46 years old.

Dimitris Manikis, VP business

development and resort sales, Europe, for

Group RCI, paid tribute to Jim, Tony and

Peter on behalf of everyone at the company.

He said: “It was with great sadness and pain

that we learned of the loss of these truly

great guys. Each of them had a tremendous

personality and all made significant

contributions to building our industry.

“Jim was a great industry veteran of

more than 35 years and a great visionary,

as well as being a valued personal friend

and mentor to many, including myself.

“Tony lived for timeshare and spent

more than 25 years with Club Olympus,

becoming part of the Rhodes family. He

worked hard, played hard and was a

genuinely caring and generous person.

Peter was one of the industry’s most

energetic and charismatic characters, and a

tremendous entrepreneur.

“Each of these men have been an

inspiration to so many in our industry and

played a big part in making it the great

business it is today. We shall not forget

them. Our thoughts and sincere

condolences are with their families, friends

and colleagues.”

JIM ANDREWSJim Andrews, founder and president of Club Greece Resorts, wasacknowledged by his peers and contemporaries as a unique talentin the timeshare industry. He was born in North Carolina in theUS, rising to the rank of First Class Petty Officer in his early navalcareer before entering the world of real estate sales and trainingin 1965.

In 1978 Jim joined Fairfield Communities as it launched timeshare sales. Hedeveloped presentations and trained staff, finding an area of business he was tomake his own.

He moved to Europe in 1986 and worked with many leading timesharecompanies before settling in Greece and founding Club Greece Resorts, which nowboasts six resorts in Rhodes and Crete, with a membership of 9,000, and is widelyrecognised as one of the leading timeshare sales and marketing companies inEurope, employing 600 staff during the sales season.

Jim leaves a wife, Tamara, three daughters and four grandchildren.

TONY HARTLEYTony Hartley, club secretary at Club Olympus, lived in Manchesterin the UK and was also chairman of a group of global companies.Trained in accountancy and business law, Tony’s career began inthe design and marketing of business computer systems, anindustry in which he remained, having owned or managed severalIT companies across Europe and in the US.

His association with Club Olympus began more than 25 years ago. Ivan Rhodes,managing director, said: “Tony loved timeshare, that’s how he took his holidays and itgradually took up a major part of his time. He had a phenomenal work ethic.Travelling was in his blood and he delighted in being able to contribute positively toother people’s holidays. He will be badly missed by all.”

PETER COXPeter Cox joined the timeshare division of Group Pestana as asales consultant in 1987, quickly earning promotion two yearslater to owner relations manager. His skills as a people personwere invaluable in building an in-house sales team and in 1992 he introduced the now very successful Owner Referralprogramme. He became group resorts manager in 1995, heading

a team of 40 multi-national sales people.At the 1997 RCI Conference, Peter was presented with the prestigious European

Sales Manager of the Year Award in recognition of his outstanding salesachievements for 1996 and, in August 1997, was inducted into the Pestana Hall ofFame for his exceptional contribution to the Holiday Ownership division of the Group.

After becoming sales and marketing director in 1999 and a board member ofseveral industry organisations including OTE, Peter left Pestana in 2005. He joinedhis friend and former colleague, Magnus Lewin, becoming a partner in TradewindsCruise Club in the Caribbean. In the past four years, Peter had been driving thebusiness forward with some fantastic results. Peter leaves his wife, Nina, and 13year-old son, Sam. Peter is remembered on www.tradewindscruiseclub.com/peter

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RDOnews

The Fractional and SharedOwnership Trade Association(FSOTA) has become the first newmember of RDO since it changedits name from OTE to reflectchanges in the vacationownership industry.

While remaining a stand-alone association, FSOTAmembers will now be bound byRDO’s code of conduct, whichaims to protect consumers andpromote best practice and fairtrading in the industry.

“We renamed ourselves RDOso we could truly reflect theextensive range of holiday optionsnow available in the vacationownership market,” said RichardMcIntosh, chairman of RDO.“With FSOTA joining us we areable to significantly increase ourrepresentation of the fractionalownership market.”

Piers Brown, chairman ofFSOTA, acknowledged thebenefits of becoming part of anassociation like RDO, which has atrack record of representing the

industry and enforcing highstandards. “We expect fractionaland shared ownership tocontinue to increase in popularityand membership of RDO will helpthe industry grow,” he said.

FSOTA is a newly-formedorganisation dedicated to theresponsible and sustainablegrowth of the fractional andshared-ownership industry inEurope. Businesses interested inapplying for membership or whowant more information shouldemail [email protected].

LOOKING GOOD FRACTIONAL OWNERSHIP BODY SIGNS UP

VISITORS GO TO GOTIMESHARE.ORG

European timeshare study revealsnumber of positives for industry.

There are more than 1.5 million timeshareowners in Europe andthe vast majority – 87per cent – are happywith their holidays, withnearly three-quartersthinking their timeshareaccommodation isbetter than other self-catering holidays theyhave taken. The qualityof accommodation, thestudy revealed, is themost importantconsideration forowners.

The 2008 industry study was carried out by TheChristel DeHaan Tourism and Travel Research Instituteat Nottingham University Business School on behalf ofThe Resort Development Organisation (RDO) – formerlyknown as OTE.

The leading exchange companies supported the study,and questionnaires were sent to 396,419 timesharemembers and 56 developers across 12 European countries.The results painted a picture of a thriving industry which isgenerating €3.2 billion in tourism expenditure each yearand employing 70,000 people, thereby making a significantcontribution to local and national economies.

The product has a positive impact on the businessesof resort developers as well, with the industry benefitingfrom occupancy levels of 72 per cent in Europe’s 1,312resorts equating to 67 million bed nights. The averageowner’s household income (pre-tax) stands at €60,475and the average owner age comes in at 55-years-old. The British and the Irish are the largest source markets,followed by the Germans, Italians, Spanish and French.

Spain is the most popular destination with 26 per centof resorts in Europe, followed by Italy (15 per cent), and theUK and Ireland hosting 11 per cent of European resorts.

RDO chairman, Richard McIntosh, said: “Timeshare isa concept that has truly come of age with many thousandsof happy owners across Europe. The quality of timeshareresorts is high which is why many owners see it assuperior to other self-catering holidays. With exchangeoptions available, owners also enjoy the flexibility of beingable to try out resorts across the world.”

RDO’s new website www.gotimeshare.org is proving more andmore popular, with visitor numbers continuing to increase. InMay the number of visits to the site rose by 4.6 per cent and thenumber of pages viewed increased by 3.48 per cent. There wasalso an 18 per cent increase in traffic from main search enginesGoogle and Yahoo.

The site was launched in January to counter negative onlinepublicity for timeshare in Europe and designed to achieve a highranking in search engines when people search for information oradvice on timeshare.

The website’s first five sponsors – who are all RDO members– have also been confirmed. They are Group RCI, ResortProperties, Seasons Holidays, HOSM and Worldwide LeisureGroup.

Companies interested in sponsorship opportunities shouldcontact Sue McNicol at [email protected]

Piers Brown

Richard McIntosh

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A GREAT VIEWRCI® TV is the latest innovation from RCI designedto increase interaction with members and makeholiday planning more fun, entertaining andinformative, as FIONA DOWNING, Senior VP,Experience Transformation, explains.

I N F O R M A T I O N E X C L U S I V E L Y F O R G R O U P R C I A F F I L I A T E S

GroupRCInside

Available to RCI members onRCI.com, RCI TV is anentertaining and educationalnetwork filled with stories aboutRCI, its products and services,as well as travel and resortinformation.

Launched in April at the2009 ARDA Convention, RCI TVhas been rolled out in NorthAmerica, Latin America and theUK, and will be introduced toother regions throughout thenext year.

Responses from memberspreviewing RCI TV have beenoverwhelmingly positive. Thepotential to customise contentwith updates and additionalinformation means RCI TV is a‘must visit’ destination onRCI.com. Lively, engaging andinformative, RCI TV will be apowerful communication tool onRCI.com.

FOR SUBSCRIBINGMEMBERSRCI TV helps subscribingmembers get the most out oftheir RCI membership andmake holiday planning fun.Viewers will quickly get to knowDan, the RCI Guy, who willwelcome them and guide themthrough the content.

Dan may be RCI’s biggestfan, not only because he hostsRCI TV, but because he is atimeshare owner and RCImember of 24 years.

As members explore RCI TV,they will discover what’s new onRCI.com and get a preview ofadditional enhancements thatwill be coming in the nearfuture. Members can ‘meet’profiled RCI employees,including Geoff Ballotti,president and CEO of GroupRCI.

A special channel for 2009 isdedicated to celebrating RCI’s35th Anniversary, and memberscan ‘star’ on RCI TV bysubmitting a video clip of theirRCI holiday memories.

In the Destination Reviewschannel, members will findtravel information about thegreat destinations where theycan enjoy an RCI exchangeholiday. They can explore newholiday options through videofootage that highlights localattractions and showcases thedestination.

Through the ResortShowcase channel, an excitingaddition to RCI TV launchinglater this year, members will beable to view rich video footageof RCI-affiliated resorts to helpthem decide where they want tospend their next holiday.

FOR AFFILIATED RESORTSAND DEVELOPERSIt is said a picture is worth athousand words and there can belittle doubt that video sells. Thatis the thinking behind the Resort

Showcasechannel whichis set to becomethe heart of RCI TV.

Millions ofmembers will be able tosee affiliated resorts cometo life as award-winningproduction crews capturethe essence of theproperty in high definitionfootage. This, combinedwith photographs and videotours in the RCI Resort Directorysection of RCI.com, and thelocation information anddestination reviews, makeRCI.com a powerful tool thathelps to drive exchange activityand increase resort occupancylevels for RCI affiliates.

AND THERE’S MOREThe potential of RCI TV is notlimited to exchange holidays oreven to subscribing RCImembers. The long-term plansfor this unique network includethe launch of a consumerchannel where RCI will makerobust travel and affiliated resortcontent available to the generalpublic.

This consumer initiative willhelp raise awareness andcredibility of the industry, beyondRCI members, and cast an evenwider net to bring interestedprospects to the doors of RCIaffiliates.

QUOTE: RCI TV ADDS ANEXCITING, DYNAMIC ANDPOWERFUL ELEMENT TORCI.COM. ONE OF THEBEST WAYS TO EDUCATEIS TO ENTERTAIN. NOWWE CAN MORE FULLYENGAGE OUR MEMBERSWITH INFORMATION THATIS FUN, LIVELY ANDRELATIVELY EASY TOUSE. WE CAN CREATEINTEREST IN NEWLOCATIONS AND HELPPROVIDE OPPORTUNITIESTO REACH POTENTIALMEMBERS. RCI TVALLOWS US TO HELPMUTUALLY SATISFY THENEEDS OF BOTH OURMEMBERS AND OURAFFILIATES. GEOFF BALLOTTI,PRESIDENT AND CEO,GROUP RCI


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QUOTE: WE’RE THRILLED THAT THE VILLAS AT DISNEY’S GRANDCALIFORNIAN HOTEL & SPA ALLOW OUR MEMBERS TO CALL THEDISNEYLAND RESORT® ‘HOME’ FOR THE FIRST TIME. JIM LEWIS

COVER FEATURE

DISNEY Vacation Club has brought eightdistinctive North American resorts to RCImembers, with several more on the drawingboard. From partying with the family ofmuch-loved Disney characters such as themighty Mickey Mouse himself, RCImembers can now enjoy a truly uniqueholiday.

The facilities at the resorts are as fairytaleas the characters, with four theme parks andon-site attractions such as a water-skiing onprivate lakes and golf on championship courses.Disney Vacation Club resorts weave a magic for allgenerations to enjoy, providing activities andattractions to appeal to the widest range ofvacationers.

A VIEW FROM THE TOPJim Lewis, president of Disney Vacation Club,explained why the company made the switch tomake Group RCI its exchange services provider.He said: “Each year Disney Vacation Club reviewsthe Member Getaways portfolio and the valueeach exchange has for members. We attempt toensure that exchange opportunities providemembers with diverse, unforgettable vacationexperiences at popular destinations which offer

great value to theirmembership. Through ournew relationship with RCI,members will have a broaderrange of resort experiencesand length of stay options.

“This new relationshipprovides our members withenhanced flexibility and moreexperiential diversity than


In its 35th anniversary year Group RCI is proud to welcomeDisney Vacation Club to its global exchange network of affiliatedresorts. A Walt Disney World® Resort vacation is an experienceunlike any other because it embodies the finest traditions,heritage and quality, while bringing a touch of magic to thevacation experience.

DISTINCTLYDISNEY

Jim Lewis

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Animal Kingdom Villas showing the viewfrom the Savannah View Room Balcony.

Saratoga Springs Resort & Spa wasnamed one of the top five spas byCondé Nast Traveller magazine.

ever before. Additionally, members will have morenightly exchanges in the World Passport Collectionthan have been available in the past, together withsome more limited opportunities at 16 fractionalresorts.”

In the months since the affiliation, Lewis reportsthat the working relationship between DisneyVacation Club and Group RCI has worked very well.“Group RCI has the management depth, technologyresources and global marketing infrastructure toalign with Disney Vacation Club’s strategic growthplan,” he said.

“Its teams have been attentive to our membersand we are getting very positive feedback on RCI’sservice.”

Lewis is very proud to be introducing several newand innovative resorts into Disney Vacation Club’sportfolio, building on the popularity of the WaltDisney World Resort experience.

He said: “Like most Disney fans, our membershave great affection for the original Disney vacationdestination, and we’re thrilled that The Villas atDisney’s Grand Californian Hotel® & Spa will allowour members to call the Disneyland® Resort ‘home’for the first time.”


COVER FEATUREQUOTE: OUR RESORTS ARE IMMERSIVE EXPERIENCES. WALKINTO DISNEY’S ANIMAL KINGDOM VILLAS, AND YOU’LL FEELYOU’VE BEEN TRANSPORTED TO AFRICA. LISA BECKET

THE DIFFERENCE THAT IS DISNEYThe iconic brand of Walt Disney is probably the best loved and mostwidely recognised in the world. Lisa Becket, vice president ofmarketing for Disney Vacation Club discusses what she feelsdifferentiates Disney resorts from other vacation experiences.

Ventures (V): How does the legendary ‘Disney Magic’ impact theresort experience?Lisa Becket (LB): Disney Magic is what sets Disney Vacation Clubapart. The heritage, tradition and values that began with Walt Disneyare carried forward to today. It’s the attention to detail – whether it’sthe architecture and amenities or the legendary guest service – thatmakes everyone feel so special when they come to one of our resorts.

V: How does Disney make each resort property unique?LB: Our resorts are immersive experiences. Walk into Disney’s AnimalKingdom Villas, and you will feel that you’ve been transported to Africa.You can take a stroll along the promenade at our Disney BoardWalkVillas and think you are along the Atlantic Seaboard. Or, my favourite,spend the night in a Treehouse Villa at Disney’s Saratoga Springs Resort& Spa, and you will feel like you are sleeping in the treetops.

V: With resort destinations broadening Disney’s traditional familyvacation marketplace, will the company market specifically to seniors,couples without kids and singles?LB: Walt Disney World Resort appeals to all of those demographics,and we see that reflected in our membership. There are grandparents,singles and couples who come with and without their families. Theymay want to enjoy the golfing, fishing or theme parks on their own.Walt Disney World Resort is actually a very popular honeymoondestination!

V: What are the high-end, luxury resort experiences that DisneyVacation Club offers?LB: Our resorts offer all the comforts of home, plus the amenities of aresort. For example, the spa at Disney’s Saratoga Springs Resort wasnamed one of the top five spas by Condé Nast Traveller magazine. Wehave a championship golf course just moments away, award-winningrestaurants and the magic of Disney all around.

V: Since 2003, Disney has doubled its vacation ownershipmembership. How do you explain this success?LB: Disney Vacation Club receives very high marks in terms of guestsatisfaction. We know if we continue to please our members and ourguests, we’ll be successful. We continue to hear from our membersthat they wish they had joined sooner. That’s the only kind of regret wewant them to have.

V: How will Disney’s affiliation with Group RCI impact the DisneyVacation Club experience?LB: RCI allows Disney Vacation Club members to enjoy vacations atdestinations across six continents and 25 countries. This brings accessto a broader range of resort experiences, including more all-inclusiveoptions, more nightly exchanges and high-end fractional propertiesthat our members will enjoy.


WELCOME TO THE WORLD OF DISNEY


On affiliating to Group RCI, Disney Vacation Club, one of the world’smost innovative and fastest-growing brands, initially brought thefollowing eight exciting resorts into the Group RCI exchange network.

DISNEY’S ANIMAL KINGDOM VILLASThe wonders of wildest Africa encapsulated in a wildlife reserve inFlorida. Accommodation ranges from studios to one-, two- andthree-bedroom villas.

DISNEY’S BEACH CLUB VILLAS (pictured here)New England seaside splendour of the early 20th century recreatedclose to the famous Epcot® and Disney’s Hollywood Studios™. The living spaces are styled with the romantic elegance of the mid-Atlantic seaside homes and comprise spacious studios, one-and two-bedroom villas.

DISNEY’S BOARDWALK VILLASReminiscent of the seaside charm of a bygone era, these studio,one-, two and three-bedroom villas recapture the fun of living in a1940s coastal village, with nearby shops and entertainment district.

DISNEY’S VERO BEACH RESORTHidden on a sunny beach midway between Cape Canaveral andWest Palm Beach, a combination of old-world architecture andbeach location make this resort on the Treasure Coast both an

idyllic retreat and a perfect family-fun destination.

DISNEY’S SARATOGA SPRINGS RESORT & SPAA Victorian-styled lakeside country retreat with accommodationranging from studios to three-bedroom Grand Villas and TreehouseVillas, this resort recaptures the spirit of the heyday of upstate NewYork racing and spa estates of the late-1800s.

THE VILLAS AT DISNEY’S WILDERNESS LODGEGuests at these studios, one- and two-bedroom villas can enjoypeaceful surroundings with the ambience of the days of the earlyrailroads and woodland wilderness.

DISNEY’S OLD KEY WEST RESORTThe Florida Keys comes alive in this colourful resort setting oftropical plants and swaying palms. Lush green landscaping andgolfing fairways abound.

DISNEY’S HILTON HEAD ISLAND RESORTAn enchanted getaway combining a laid-back South Carolinalifestyle with simple pleasures and outdoor fun, this resort isfashioned after a 1940s hunting and fishing lodge. The fact it islocated on a sun-drenched island in the spectacular AtlanticOcean is a bonus.


Treehouse Villas atDisney’s Saratoga SpringsResort & Spa – WaltDisney World Resort.

Bay Lake Tower atDisney’s ContemporaryResort – Walt DisneyWorld Resort.


COVER FEATUREQUOTE: RCI TEAMS HAVE BEEN ATTENTIVE TO OURMEMBERS AND WE ARE GETTING VERY POSITIVEFEEDBACK ON RCI’S SERVICE. JIM LEWIS

NEW FROM DISNEY VACATION CLUB

BAY LAKE TOWER AT DISNEY’S CONTEMPORARY RESORT – WALT DISNEY WORLD RESORTScheduled to open in August 2009, Bay Lake Tower at Disney’s Contemporary Resort offers a blend of the modern with theluxurious. It is conveniently located within walking distance of the Magic Kingdom® Park and enjoys some of the mostdramatic views anywhere in the Walt Disney World Resort portfolio.

Its two-storey entrance lobby, decorated with woven woods in warm colours and glass-wrapped columns, is designed towow guests on arrival. Accommodation is contemporary with open spaces yet a warm and comfortable ambience. The

furnishings are modern and innovativefeaturing items such as a pull-out pantryin the kitchen and movable partitions inthe bathrooms to provide views of theoutdoors from the baths.

On site there is an ultra-modernswimming pool with an unusual glass-block design waterslide. A Sky-WayBridge links the tower to the monorailstation, shops and restaurants. And,with its close proximity to the MagicKingdom Park, Bay Lake Towerprovides a relaxing retreat forfamilies within easy reach of a fun-filled theme park.

TREEHOUSE VILLAS AT DISNEY’S SARATOGA SPRINGSRESORT & SPA – WALT DISNEY WORLD RESORTAmong the newest vacation homes at the Walt Disney WorldResort in central Florida is Treehouse Villas at Disney’sSaratoga Springs Resort & Spa. Built in Victorian style with aspirit of ‘health, history and horses’, this 65-acre DisneyDeluxe Villa Resort is located on the shores of Lake BuenaVista. In its creation, Disney Imagineers were inspired by thehistoric Sarasota Springs, a glamourous upstate New Yorkequestrian retreat of the late 1800s which was famous forhorse racing and luxury spas.

The Treehouse Villas are stand-alone structures, rising 10 feet above the ground on pedestals and beams,accommodating up to nine guests who sleep high among theleafy branches of the forest. Disney calls this concept‘glamping’ or glamourous camping, giving guests the opportunity to enjoy nature with all the comforts ofa full kitchen, flat-screen television and air conditioning.

Amenities include the High Rock Spring Pool with waters cascading over rocky slopes, a thrillingwaterslide and two whirlpools. Children have a play area of their own and adjacent to the pool area is aspa offering professional treatments, saunas and steam baths.

Disney Vacation Club’s latest resorts in Florida and California might be verydifferent but all feature a combination of stunning design and architecture,luxurious accommodation and a range of facilities both on- and off-site.



DISNEY’S ANIMALKINGDOM VILLAS –WALT DISNEY WORLD®

RESORTSet within the DisneyAnimal Kingdom® Park ina 330-acre wildlifereserve, Disney’s AnimalKingdom Villas recreatesthe experience for guestsof living on an Africansafari.

The accommodation isdesigned in two uniquestyles, Jambo House andKidani Village. Guests stayamong African-inspiredarchitecture andlandscaping, all setagainst a backdrop of panoramic views, making the beautiful natural world outside an intrinsic part of the stayexperience. Golden bamboo-toned furnishings, thatched ceilings with beams and authentic hand-carved Africanartefacts breathe the intoxicating spirit of Africa into the villas.

Just beyond the windows, 33 exotic species of wildlife roam in lush tropical savannas. This resort is one offew places – and possibly the only place in North America – where you can open your curtains and see a giraffegrazing. Among other wildlife to be seen are zebras, impalas and ostriches – all can be enjoyed from the villabalconies or dedicated viewing areas throughout the resort. New animals are being introduced and a newrestaurant opened this year.

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THE VILLAS AT DISNEY’S GRAND CALIFORNIAN HOTEL & SPA – ANAHEIMThis resort is Disney’s first venture into the Disneyland®

Resort in California and will add 50 two-bedroom villas toone of the most popular of all Disney resorts, Disney’sGrand Californian Hotel & Spa.

The theme for the resort is the California arts and craftsmovement of the late 1930s. Architect Peter Dominick, whodied recently, also designed Disney’s Wilderness Lodge andDisney’s Animal Kingdom Lodge at the Walt Disney WorldResort in Florida.

Disney’s Grand Californian Hotel & Spa is widely regardedas the most luxurious of the three on-site hotels and has itsown entrance into Disney’s California Adventure. The resort’svillas are a short walk from the attractions of the theme parkand other facilities include a swimming pool complex with achildren’s pool in the shape of Mickey Mouse’s head.

This resort is also home to the award-winning Napa Roserestaurant where California’s wine country cuisine and expert sommeliers tempt guests with one of theworld’s finest selections of Californian wines.

Families can enjoy the nearby Storytellers’ Café, where parents and children can partake in adistinctively Disney dining experience, complete with entertainment by the famous and much-loved Disney characters.

A 2.5-acre site expansion to the south of the existing hotel will add 200 hotel rooms in a new wing with arooftop deck for viewing fireworks. There will also be a new swimming pool and additional parking forguests’ vehicles.

Disney’s AnimalKingdom Villas –Walt DisneyWorld Resort.

The Villas at Disney’sGrand Californian Hotel& Spa – Anaheim.

For more informationabout Disney VacationResorts visitwww.rci.com


Technology mayhave changed out ofall recognition over

the last decade –but the humble

television can stillbe key to building

rapport with guests,as SARA

MACEFIELDdiscovers.


QUOTE: OUR JOB IS TO PUT THE RIGHT TYPE OF INFORMATION AND RIGHT TYPE OFENTERTAINMENT ON SCREENS DURING THE WEEK TO REMOVE 90 PER CENT OF THEDOUBT ABOUT THE PRODUCT BY THE TIME THEY GET TO THE SALES DECK. TIM FOSTER

SERVICE

BUILDING relationshipswith guests is always a keyelement of the hospitalityindustry, and never moreso than in times ofeconomic uncertainty,when familiarity can breedregularity in terms ofrepeat business, as well asan atmosphere that willencourage new custom.

With this in mind,more and more resorts aretuning into the idea ofusing in-room TVs as acommunication tool tobroadcast a combinationof entertainment, generalinformation andpromotional messages tohotel rooms 24 hours a day.

Resort Television,Europe’s leading specialistin this field, asserts thatnot only do its productsproduce a happier, moreinformed visitor to theresort, but one more likelyto buy a product the resorthas to offer.

“Our products are notdesigned to sell timeshareoutright – that’s the job ofthe sales team – but byusing the correct style ofprogramming content andon-screen messaging wecan hopefully remove upto 90 per cent of visitors’resistance to buyingtimeshare,” says ResortTelevision chief executiveTim Foster, who is alsochairman of the MediaCouncil set up by theResort DevelopmentOrganisation.

“We can enable resortmanagement to

SWITCHING

SERVICEON communicate with

incoming guests andmembers in a way that ismuch more subtle, butmuch more informativeand less likely to createanimosity at interruptingpeople’s holidays.”

The latter element canbe a major issue fortimeshare resorts,particularly among first-time visitors who canresent what they see as anintrusion on their time.As far as Foster isconcerned, ResortTelevision is all aboutpsychology and subtlety,and treads the tightropebetween giving guestswhat they want to see,interspersed withmessages the resort wantsthem to digest.

“Our job is to put theright type of informationand right type ofentertainment on screensduring the week to remove90 per cent of the doubtabout the product by thetime they get to the salesdeck,” says Foster.

“Times have changedand if this industry is to besuccessful it must move onfrom using techniquessuch as pushing pieces ofpaper under doors toinvite guests to visit thesales deck.

“For guests to respectyour sales approach andgive you their timewillingly, you need tocommunicate with them inthe same style and manneras other well-known

TOsuccessful marketingcompanies. We need tomove the dial across fromfailure to success and tohelp do that we need touse 21st century marketingtechniques.”

As a result, Fosterclaims it not only makesguests more open totimeshare opportunities,but it can also increaseawareness of the resort’sfacilities, which in turncan boost revenue asguests will be more likelyto use them.

HOW DOES RESORTTELEVISION WORK?The Resort Televisionsystem can beprogrammed to eachindividual resort’s needs,but the basic premiseinvolves offering fourchannel options:● Channel 1 is targeted atfirst-timers to a resort whoare probably experiencingtimeshare for the first timetoo. The viewers aregenerally aged up toaround 55 years, and withchildren aged seven and up.

Channel content wouldbe fairly broad withgeneral information aboutthe resort and local areasmixed in with pop videos,news bulletins and generalentertainmentprogrammes. But enoughinformation abouttimeshare would also beincluded to allay anyconcerns before their salesdeck presentation.● Channel 2 is aimed at

Pictured above right: Chief executive Tim

Foster demonstratesResort Television.

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older guests aged 50 to 70years, who are probablyowners/members. Typicallythis channel wouldbroadcast less pop andyouth-orientated musicvideos, but more old timeSinatra-style classics. Therewill be some details aboutthe resort and moreinformation about thecompany and the exchangeoptions available.● Channel 3 is aninformation-based resortbulletin channel with thesame ambient music as inreception. It contains aprocession of resort-branded ‘live’ internet pagesand RSS feeds, similar toTeletext, and includesinformation about theresort, weather updates andflight information.● Channel 4 is pluggeddirectly into the plasmascreens around the resortto pick up directcommunications fromreception or themanagement. It also playscorporate videos and againhas branded resort bulletinboard capabilities.

Foster says the key to allcommunications is to getacross the benefits of theresort and the company insuch as way that guestsdon’t feel they are beingsold to.

Such a careful approachneeds meticulous anddelicate pre-planning toensure the right buttons arepressed when dealing withcustomers. Resorts not onlydecide on the content thatbest meets their needs, buthow it is presented. Shortvideos, information screensor running text messages atthe bottom of the TVscreen are among theoptions available. These can

be as basic as detailingdeparture times of a shuttlebus service or announcinga special event – but carefulthought needs to go intothe timing of suchmessages and how oftenthey are used.

For example, 200different messages wouldmultiply to 2,000-3,000by the time they arescheduled in over thecourse of a week.

“Some people use thesystem just for multi-lingual in-resortpromotions while othersuse it for promotions andsales support,” says Foster.

Over the last year,Resort Television has beeninstalled at around 25resorts across Italy,Germany, Spain, theCanary Islands and theUK, and the company isgetting ready to install at

its first resorts in the US,both on land and at sea.

Before setting up thesystem at a new resort orship, the company’srepresentatives spend twoor three days on-site tosoak up the atmosphereand analyse the type ofguests it attracts.

By talking to staff andfinding out what kind ofmessages they need toproject, a customisedpackage is drawn uptailored to that resort orship’s needs before beingforwarded to themanagement team fortheir approval and theinclusion of any corporateor third party advertisingor messages.

Once this infomationis assimilated, the ResortTelevision team get towork on implementationand scheduling.

LOOKING AHEADFoster is confident that thistype of product is the wayforward when dealing withguests and holds hugepotential for the future.Resort Television has thecapacity to run up to 24channels, with 12 videochannels and 12 audiochannels, but Foster believesthe main growth will comevia more efficient ADSLtechnology, which willenable the system to pull inmore content from theinternet, such as live football matches.

At the moment thebandwidth is too small,leading to inconsistentquality, but when it catchesup it is likely to usher in anew wave of options that willguarantee that even moreguests switch on to ResortTelevision during theirholidays.

RESORT TELEVISION – THE FACTSThe concept started life as radio product Holiday FM in conjunction with Capital Radio in 2002. Threeyears later, the company created Resort Radio following an approach from Group RCI. This led to acustomised version of Holiday FM being created for Group RCI-affiliated resorts across Europe.

By 2006, this had evolved into a resort-specific product under the Resort Radio brand. April 2008saw the concept take a step further with the launch of Resort Television.

V

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In an exclusive interview forRCI Ventures, Arlene McCarthy, Labour MEP for the North West Regionand Chair of the European Parliament’s Internal Market and ConsumerProtection Committee, spoke to STEVE ADAMS about the new EU Directivegoverning timeshare and long-term holiday products – and its likely impacton the European industry.


QUOTE: IT’S A BOOST FOR THE INDUSTRY TO BE ABLE TO SAYTHAT THERE IS NOW SUCH GOOD LEGISLATIVE PROTECTION THATTHE CONSUMER HAS NOTHING TO FEAR. ARLENE McCARTHY

INTERVIEW

VENTURES (V): How did the UK and you, personally, come to bespearheading the new timeshare legislation in the EU?ARLENE McCARTHY (AM): The UK has the biggestnumber of citizens who own timeshare across Europe – athird of all timeshare owners – and there was a big lobbyfrom these constituents.

I’ve got friends and colleagues who have had goodexperiences with timeshare, but the issue for me was thenumber of consumer complaints we were getting. Werecognised there was a problem that needed to be dealtwith – consumers felt they weren’t getting a fair deal andin many cases they were being ripped off. That’s why wehad to take action.

V: What did you consider to be the failings of the industry legislationthat was already in place across Europe?AM: It was important to get changes to the original law,particularly because it didn’t cover holiday clubs and consumersdidn’t really have any rights in that area. While there are good,legitimate holiday clubs, the bad ones had become afundamental problem and proved to be the most difficult partof the timeshare issue.

V: What would you say to those who argue that holiday clubs aren’tactually timeshare, and that the original law provided enoughconsumer protection? AM:The original 1994 legislation was very limited. It helpedreduce the amount of mis-selling and aggressive selling but thescam merchants developed new products to get outside of thelaw, which is why we had to redefine timeshare, or ‘timeshare-like’ products, to make sure we covered all possible types ofoffers that were out there.

I think every legitimate trader will recognise that puttingnew consumer protection in place will be better for them andmore detrimental to the rogue traders.

LAW &ORDER

V: What elements of the new Directive are specifically designed tooutlaw holiday club activities?AM: There are quite a lot of strong protections relating to holidayclubs, which is where we felt the biggest problems were. We’rebanning upfront payments or deposits, allowing people to payannually for holiday club membership, so payments will bestaggered, and we’re giving the consumer a 14-day notice period inwhich to say they are going to withdraw in the next year.

V: Was the cooling-off period a major issue?AM: We did have a lot of discussion about the right to withdraw interms of the 14-day cooling-off period. I think if a company – andit isn’t the legitimate companies that are doing this, it’s the scammerchants – doesn’t inform customers of their right to withdraw,my instinct would be that this is a scammer or a rogue trader.

V: In addition to covering holiday clubs, what do you see as the other keyelements of the new Directive?AM: I think the standard information form – which the EuropeanParliament put in as it wasn’t in the original proposal – is veryimportant. Consumers have always had rights, but the standardinformation form makes them clearer. Before you sign a contractit gives you a description of the timeshare, its location, facilitiesand details of all the management fees and service charges. I thinkthis will protect both the seller and the buyer because theconsumer can’t go back to the trader and say “you didn’t tell methere would be this charge” because it will be in that standardinformation form when they sign up to it.

V: So you believe the Directive will benefit traders as well as consumers? AM: Yes, I think everybody gains from an open and transparentsystem. Good businesses are not going to fail to inform people oftheir right to withdraw because that entails a pretty heavysanction. That’s why we did it in that way – because we knew thatgood businesses would inform people of their right to withdraw

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too manydemonicpictiures

MEP Arlene McCarthyhas spearheaded thenew EuropeanTimeshare Directive.


so it wouldn’t be a penalty or an issue for them. We do want tohit the rogue traders really hard and driving them out of theindustry should improve consumer confidence in the productand make it a better business to be in as a trader.

V: Isn’t there an argument that rogue traders will simply find otherloopholes and create new products in order to continue operating?AM: It’s true we always have to keep up with their activitiesand try to stay one step ahead. However, the new Directiveapplies to all types of property for all periods of occupation, forany contract over a year – as well as covering resale andexchange agreements and any other ancillary contracts – sothere’s not much space for the rogue traders to operate in or tohide from consumer protection within the new law.

V: How soon do you anticipate the Directive becoming law?AM: We’ve given member states a two-year deadline to bringprotections into their own law. We have to give two years butthe UK can do it much faster as it won’t be such a difficult issuefor them, although UK legislators will have to go through allthe proper motions to do so. But countries such as Bulgaria,which are providing more and more of these kinds of productsand don’t have very good consumer laws in place already, willhave to almost start from scratch.

V: One of the problems under the old legislation was enforcement,particularly with regard to cross-border cases. Have any provisionsbeen made to tighten this up?AM: In 2007 the EU Commission set up a cross-borderenforcement network to join up different agencies in differentEuropean countries, so that will be quite critical in enforcingthis new legislation. That means UK Trading Standards can talkand share information on timeshare and holiday clubs with theequivalent body in Spain or Bulgaria for example. The law alsomeans that a purchaser of holiday club membership not backedby a fixed property and which was marketed in the UK to UKcitizens would be protected by the mandatory provisions of UKlaw. Because timeshare purchases are of a fixed property, buyersare protected by the law of the country where the property issituated. There are a lot of protections that will help consumersin all eventualities to get redress.

V: What penalties are likely to be imposed on companies caughtacting illegally? AM: We didn’t go into details about penalties because memberstates guard very jealousy the right to set penalties and to runtheir own justice systems. Clearly the penalties and sanctionsshould be very tough in order to be an effective deterrent toprevent traders undermining consumer rights in this area.

V: Do you believe the majority of operators are selling the timeshareproduct in the right way?AM: Absolutely. I know people who have had very goodexperiences but they’re not the ones who complain! We don’tsee that side of the story – what we get is all the complaintswhere things have gone wrong and what we’ve done is


INTERVIEWQUOTE: I KNOW PEOPLE WHO HAVE HAD VERYGOOD EXPERIENCES BUT THEY’RE NOT THEONES WHO COMPLAIN! ARLENE McCARTHY

redesign the rules in a way that means things shouldn’t gowrong. If they do go wrong, then the consumer will be in aposition to get redress with greater ease and speed.

V: Those ‘good experiences’ extend beyond the purchaser – theindustry is a significant contributor to the European economy and hasbeen shown to be resilient in times of economic downturn, as well ashelping to drive tourism inbound numbers up in some populardestinations during the shoulder seasons. Would you agree timesharehas a positive impact on tourism revenues?AM: Our view in Brussels as a committee was to support theinternal market. We certainly didn’t want to end up in asituation where we put an industry out of business, because thetimeshare industry does undoubtedly contribute to theEuropean economies, creating jobs and opportunities. That’swhy we took a balanced approach.

That was the biggest issue for us. Yes of course we had a lotof consumer lobbying, but we’re not just a consumerprotection committee, we’re also the internal market committeeand as such we wanted to put confidence back into theindustry so that it can actually operate effectively.

V: And you believe the new laws will help legitimate traders operatemore effectively?AM: Absolutely. I think it’s a win-win for the industry, especiallyif businesses start to adopt some of these practices now, becauseit will ensure people have confidence in buying the product.

I think articles in the press and consumer watchdog typeprogrammes have been subliminally telling the consumer notto touch timeshare, so it’s a boost for the industry to be able tosay that there is now such good legislative protection that theconsumer has nothing to fear.

And good traders have nothing to fear either, because I don’tbelieve the additional burdens are so onerous that it’s not worthcontinuing. On the contrary, consumers will be more confidentand interested in purchasing their product.

It’s all a question of ensuring the consumer knows whatthey are signing up to. As long as there is transparency, plentyof information and good rights, it should be a win-winsituation for consumers and traders alike.

CArlene McCarthy led the legislative review in Brussels.

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Registry fixer:Layout 4 20/6/09 13:03 Page 1

“Provence is a country to which I am always returning,next week, next year, any day now, as soon as I can get

on a train.” Elizabeth David,British cookery writer

A trio of delightful developments in Provence, imbued with the spirit of theregion and based on strong business partnerships, are among the latestadditions to The Registry Collection. HELEN FOSTER reports.


QUOTE: WE HAVE ONE SOLE PURPOSE – TO MAKE GUESTS HAPPY, WHETHER THEY ARE EATINGAT OUR RESTAURANTS, STAYING AT THE HOTELS OR, IN THE FUTURE, BUYERS OF THEFRACTIONAL OWNERSHIP PROPERTIES. JEAN-ANDRÉ CHARIAL, LES MAISONS DE BAUMANIÈRE

residential two- and three-bedroomapartments to be sold in 1/8th shares,entitling owners to six weeks’ use eachyear, in perpetuity, with closure formaintenance in January. The averageprice of six weeks in a two-bedroomapartment will be €180,000 when itgoes into sales in September.

The second development will be atDomaine de L’Enclos, in the stunninghillside village of Gordes, the jewel ofthe Luberon Valley. This town ischaracterised by its picturesque dry-stone architecture specific to Gordesand its dramatic setting high on ahillside overlooking the valley, all ofwhich have seen it officially voted oneof ‘Les Plus Beaux Villages de France’.It’s hardly surprising to learn that thisarea is home to artists, film stars andpoliticians – while the Michelin-starredrestaurant and hotel on the Gordes siteboasts many celebrity patrons includingSir Paul McCartney.

Set in 1.7 hectares, the Domaine deL’Enclos property enjoys a primeposition on the hillside givingaccommodation a panoramic view overthe valley. All restoration and buildingwork will be done in the indigenousdry-stone style. The hotel at thislocation has 23 rooms and thefractional development will comprisenine duplex apartments and nine villas,plus underground parking for ownersand their guests. Prices at thisdevelopment range from €160,000 to€230,000. Like all three of thefractional properties, the owners willbe able to enjoy the finest dining andspa facilities within the grounds of

FRACTIONAL PROFILE

THE sentiment expressed by thewoman responsible for introducingolive oil to British diets is key to thephilosophy behind The Provence Club, anew brand of luxury resorts which hasrecently joined The Registry Collection.

Avenio Prieuré, a resort companywhich owns the new luxury brand TheProvence Club – Les Maisons deBaumanière, fronted by managingdirector Marc Koerts, is building luxuryapartments and villas for fractional saleat three stunning locations. All are inthe grounds of existing top-class hotelsand Michelin-starred restaurants. Thecompany’s ethos is based on a passionfor the region and forging strongpartnerships with like-minded brandswhich are positioned to enhance eachother’s offering.

LOCATION, LOCATION, LOCATIONTo say the locations and the propertiesthemselves have that ‘wow’ factor ismost definitely an understatement. Setwithin walking distance of some of theregion’s most spell-binding old townswith winding streets, elegant squaresand bustling markets, The ProvenceClub properties are an oasis of blissfulcalm. Once through the gates, guestsare enveloped in idyllic, scentedgardens and rustling woods which partto reveal the quintessentially Provençalarchitecture of the hotel, and beyond,cooling swimming pools, fine diningand spectacular views. If ever a product

A PASSION FOR PROVENCE

could sell itself, this one will. Even afterthe briefest of stays, you feel as if younever want to leave.

Each of the three developments willmix fractional and private residenceclub properties with whole-ownershipresidences.

The first of the three fractionalproperties to be completed – in 2010 –will be at Villeneuve-lès-Avignon,located less than four kilometres fromthe historic walled town of Avignon. Ayear-round destination offering a widerange of cultural and culinaryexperiences, Avignon is just two-and-a-half hours by train from Paris. There aretwo golf courses nearby, together withthe Provence Country Club in Saumanede Vaucluse. Each development is ableto stock its kitchens with fresh producefrom the local markets for the manyregional dishes on the menu.

The Villeneuve-lès-Avignonfractional development will feature 24

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1: Domaine de l’Enclos seen throughsurrounding woodland.2: One of many spectacular views to be foundin Gordes.3: The scent of lavender prevails in gardensand markets across Provence.4: The pretty courtyard at the Villeneuve-les-Avignon property.5: The pool view from Domaine de l’Enclos.6: The Gordes property enjoys a commandingposition but (7) a very private entrance.

Opposite page: Sharing a passion forProvence are, from left, Peter Kempf, GreggAnderson, André Guillot, Stéphanie Guinard,Marc Koerts and Nick Turner.

1

2

5

7

6

3

4


their development.A third site is planned for Aix-en-

Provence, ‘the city of a thousandfountains’, and a favourite of Cezanne,Zola and Hemingway down the years.

A STORY OF SPIRITAt the heart of the philosophy behindThe Provence Club – Les Maisons deBaumanière is the spirit of the region ofProvence itself.

At a press conference to launch thenew luxury brand, Koerts told theassembled French, British and Dutchjournalists: “We have a passion forProvence, and we want to instilleverything we do with the spirit ofProvence. It would take a whole lifetimeto discover Provence. This region is ayear-round destination, with so manyreasons to visit. People from around theworld want to come here, and to stayhere – we want to capture what it isthey find so alluring.”

BRAND BONDINGKoerts, a relative newcomer to thefractional ownership market, wasinspired by a visit to the 2008 FractionalLife Summit in London, whichencouraged him to develop a concept hecalls “smart luxury”.

He had seen how second-homeowners were encumbered withmaintenance, security and administrationcosts and hassles. The attractions of thefractional model were very evident toKoerts, he could see it would free ownersfrom these responsibilities, allowingthem to make the most of their holidaytime, as well as offering a significantlylower purchase price in one of Europe’smost expensive property markets.

A year on from Koerts’ visit toLondon, and The Provence Club – LesMaisons de Baumanière was born whenhe partnered with André Guillot and oneof France’s legendary chefs and proprietorof the iconic Les Maisons de Baumanièrehotel brand, Jean-André Charial.

The business model is to build high-quality fractional apartments andvillas on the sites of existing Les Maisonsde Baumanière boutique hotels, givingbuyers access to the hotel’s Michelin-starred restaurants and exquisite country


gardens, as well as other facilities.All locations benefit from being

exclusive, high-demand low-supplyareas where it is very near impossible togain building permits, and are in aregion which is considered to have a 10to 11 month high season. They arelocations to which people will want toreturn again and again. Koerts said: “Wewant people to keep coming back, so weare recruiting staff who are committedto our brand spirit. Our staff willbecome like family to our owners. Wewant our owners to be welcomed by ourown Jean-Paul or Jacques each time theyand their friends and family return overthe years. Our guests will be greeted by afriendly and familiar face.”

To do this, Koerts – a Dutchmanwhose background is in developingsome of the more spacious luxury skichalets and apartments in the top Frenchresort of Val D’Isère – and his businesspartner André Guillot, who has morethan 30 years’ experience in thehospitality and resort developmentbusiness, have forged three crucialpartnerships.

LES MAISONS DE BAUMANIÈREThe first is with Jean-André Charial,the holder of three Michelin stars, andrecognised in France as one of theforemost creators of modernProvençal cuisine, as well as asuccessful hotelier, winemaker andolive oil producer. Charial is carrying

QUOTE: WE’RE NOT INTERESTED IN FIVE-STAR HOTELS WHICH HAVE NO SOUL.OUR PARTNERS MUST SHARE OUR CONCEPT, OUR PASSION FOR THE STORYAND HAVE REAL CHARACTER. STÉPHANIE GUINARD, L’OCCITANE EN PROVENCE

FRACTIONAL PROFILE

8: The calm elegance of theDomaine de l’Enclos property.9: The classic styling of LesMaisons de Baumanière isevident in this bathroom.10: The Michelin-starredrestaurant at Domaine de l’Enclosenjoys celebrity patronage.

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Charial says: “We have one solepurpose – to make guests happy,whether they are eating at ourrestaurants, staying at the hotels or, inthe future, buyers of the fractionalownership properties.”

L’OCCITANE EN PROVENCEThe second partnership is withL’Occitane en Provence, the €450-million annual turnover skincareand spa company, founded in 1976 byOlivier Baussan. His philosophy ofsharing the experiences that representthe essence and the best of Provencealmost exactly mirrors that of Koertsand Charial. Baussan said: “The sun, theproducts of the soil and a love of natureare the essence of my Provence. It is thisessence I want to share with theworld.”

L’Occitane en Provence will beoperating spas at each of the threeProvence Club locations, and all will bethemed around the Camargue area ofProvence, using the natural and watercolours associated with the countrysidein the region.

Stéphanie Guinard, vice president,new service ventures, of L’Occitane enProvence said: “Like Maisons deBaumanière and The Provence Club,L’Occitane offers a unique lifestyleconcept, which is consistent whereveryou go. Spas have been a great way tocreate a buzz and attract additionaltraffic to our boutiques. We’re veryhappy to partner with Jean-André,Marc and André because we feel thatour brands are a perfect match.

“We’re not interested in five-starhotels which have no soul. Ourpartners must share our concept, ourpassion for the story and have realcharacter. In terms of spa design, wecan be flexible because the strongconcept of the Les Maisons deBaumanière brand is in the same spiritas L’Occitane so it’s not a big stretchfor us.”

All the spas at The Provence Clubvenues will be open to the public,raising awareness of the resortdevelopment, as well as increasing thefood and beverage revenues from theincreased number of visitors. The

11: A bedroom at the Avignonhotel offers a taste of the elegantcountry styling that willdistinguish the fractionalproperties.12: New meets old in the Avignonreception area.13: Pretty as a picture, Gordes iswithin walking distance ofDomaine de l’Enclos.

access to all the amenities and servicesthe hotels offer.

Charial’s wife, Genevieve, hasundertaken project management ofthe restoration works of the hotels, aswell as the design and interiors. Thefractional properties will be styled andfurnished to the same exactingstandards, and with the same look andfeel, of the hotel rooms on each site –but the fractional properties will bemuch more spacious. Like the hotelrooms, each of the fractionalapartments will have individualdécor, differing slightly from theothers, but in complete harmonywith the overall feel and spirit of LesMaisons de Baumanière.

on a tradition started by hisgrandfather at the world-renownedL’Oustau de Baumanière in Les-Baux-de-Provence, a restaurant which has along history of entertaining Europeanroyalty, US presidents, Hollywoodactors and rock stars.

Charial’s philosophy is summed upin one phrase – perfection andsimplicity. These are the core valuesthat form the bedrock of his LesMaisons de Baumanière brand, whichhe founded in 2007. The ProvenceClub – Les Maisons de Baumanièrefractional properties will all be locatedon sites where Charial is operatingMaisons de Baumanière hotels andrestaurants, and owners will have11

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company’s product range will also beon sale at the three on-site L’Occitanebranded and operated spas which willprovide a further revenue stream forthe business.

Crucially, the partnership providesThe Provence Club with sometantalizing cross-marketingopportunities, including access toL’Occitane’s eight million-strongactive database, and an opportunity tomarket through the company’s 1,500retail outlets worldwide, plus itswebsite which saw 10 million visitorsin 2008.

THE REGISTRY COLLECTIONA third vital alliance is with TheRegistry Collection. The Provence Club– Les Maisons de Baumanière bringsthe first French-affiliated propertiesinto the luxury exchange programme.

Gregg Anderson, global managingdirector, The Registry Collectionprogramme, said: “We are very proudthat The Provence Club has chosen TheRegistry Collection as its partner. MrCharial has a wonderful story to telland all three locations are fabulous.Provence is a major destination with aspecial appeal for both European andUS travellers. Whole ownership inProvence is very expensive – thefractional ownership opportunityprovided by The Provence Club offersa flexible and high quality alternative.

“We share with Marc, André andJean-André their love of makingpeople happy and we hope theiraffiliation to The Registry Collectionexchange programme will present anexcellent selling opportunity, with its24/7 concierge service and specialtravel benefits available through ourCollection Partners, on top of theholiday exchange possibilities.”

Marc Koerts said: “The RegistryCollection programme offers a much-valued accommodation exchangeoption for fractional owners whowant that flexibility. With the ticketthey buy to holiday in Provence, theycan travel the world through TheRegistry Collection. As beautiful asProvence is, there are a lot of otherwonderful places to visit, and The

Registry Collection will allow ourowners to do just that.

“The service levels and theexclusivity of The Registry Collectionare exactly what our owners arelooking for.”

Koerts’ comments were echoed byPeter Kempf, managing director,Europe for DCP International, whichhas been appointed to handle the salesand marketing for The Provence Club.He said: “The Registry Collection iscritical to the sales process as it opensup a world of fantastic and desirableaccommodation to owners.”

AWARD WINNERSThe Provence Club is already making asplash in the property industry andattracting significant media attention.

Earlier this year it won the 2009Fractional Life Summit Award forInnovation and Excellence. PiersBrown, founder of Fractional Life,said: “The Provence Club, the newluxury brand and its exclusiveproperties offering many superbamenities on site, including aboutique hotel and the L’Occitane enProvence spa experience, is indeed, aworthy winner of our Innovation andExcellence Award.

“As the first winner of what wehope will be many Fractional LifeSummit Awards, The Provence Clubshould certainly provide inspirationfor others.”

QUOTE: WE HAVE A PASSION FOR PROVENCE, AND WE WANT TO INSTILL EVERYTHING WE DO WITH THESPIRIT OF PROVENCE. THIS REGION IS A YEAR-ROUND DESTINATION, WITH ITS CLIMATE, HISTORY,CULTURE AND BREATHTAKING SCENERY. MARC KOERTS, MANAGING DIRECTOR, THE PROVENCE CLUB

FRACTIONAL PROFILE

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14: Exquisite presentation of finefoods and wines comes asstandard at Les Maisons deBaumanière restaurants.15: Genevieve Charial’s uniqueinterior designs will distinguishThe Provence Club brand.16: Jean-André Charial (right)and Marc Koerts toast asuccessful press trip at theGordes restaurant.


QUOTE: OUR MARKETING OF TIMESHARE IS MOREPRODUCTIVE DURING A DOWNTURN AS EVERYONEIS LOOKING FOR A BARGAIN HOLIDAY. ROY PEIRES

DEBATE


Ventures (V): How is therecession affecting yourcompany?

RP: 2008 was a record salesyear for Club La Costatimeshare and CLC Estates,our real estate arm that hasbeen developing freeholdunits in Turkey. Devaluation ofsterling has had a downwardeffect on profits and causedan increase to our membersin management fees.

However, our first Turkishdevelopment of 200 units hasbeen sold in record time,causing us to acquire a newdevelopment sooner thanexpected.

VT: Financing of our newlarge spa hotels is verydifficult. We are currentlydeveloping two in Finlandand the process has sloweddown while we try to getfinancing. On the other hand,five months into ouraccounting period we have a5-7% increase in timesharesales, compared to the sameperiod last year, despite theglobal economic situationand flow of bad news. TheFinnish market is fighting butwe can see it faltering assales of new houses havedropped by 60%.

BT: We are nearingcompletion on a 300-unit luxury condo-hotel inJamaica, The Palmyra. Theproject is 60% sold withdeposits of 30%. It was sold as aluxury product with the averageapartment selling for $1million.The majority of sales took placein 2007 and began slowing in2008 as the financial crisiscreated uncertainty even forthose people who could affordmillion dollar second homes.Since September, sales haveslowed to one or twotransactions per month. Thecurrent financial crisis has hadlittle effect on our timesharebusiness and 2008 saw solidgrowth in sales and bottom lineresults in both traditionaltimeshare sales and innovativefractional products.

V: What are you doing tocombat the problems caused bythe recession?

BT: Unsold units in ThePalmyra will be operated as aluxury condo hotel. By

developing mixed-use productswe have the advantage ofaltering our products to fit thecurrent market. We operatehotels, sell freehold apartments,timeshare and fractionals; weparticipate in joint ventures andare comfortable establishing apresence in a variety ofcountries and locations. Ourstrategy has always been todevelop products to fit themarketplace and that includesthe financial capabilities ofpeople in those locations that weconsider legitimate prospects.

RP: We have increased ourmarketing activities tocompensate for lower owner andRCI occupancies, and turned this

Three of Europe’s mostsuccessful timesharedevelopers discuss how thecurrent economic recession isaffecting their multi-facetedbusinesses and the industry.By JUDI EVERITT.

CRISIS? WHAT CRISIS?Roy Peires (RP) ischairman andfounder of Club LaCosta Resorts &Hotels – a leading

vacation ownership company inEurope with a real estatedevelopment and sales arm –now in its 25th year and withover 50,000 predominantlyBritish members, 23 ownedresorts and a yacht club.

Vesa Tengman(VT) is presidentand CEO ofHoliday ClubResorts –

Finland’s biggest developer of timeshare selling primarily to nationals. The company was established in 1986, has 19 resorts and a chain of spahotels, and more than 30,000owner families.

Bob Trotta (BT) ischairman andfounder of ResortProperties Group,selling timeshare,

fractionals and real estate. Anindustry heavyweight for 26years, the company hasproperties in Tenerife, Malta,Tuscany, Dubai, Florida andJamaica, and more than 50,000European owners, half of whichare British.

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to our advantage having openedup more space for fly-buys. Atthe same time we have looked atmaking our product moreaffordable and adding morevalue. We are also turningincreasingly towards the benefitsof technology in order to reducemarketing costs, as well aspruning functions deemed notabsolutely necessary as weattempt to cut back on ouroverall costs of doing business.However, we are expandingsales operations in the UK andTurkey.

VT: The Holiday Club brand isvery strong with many resortsand lots of work in sales andmarketing. We will be buildingless timeshare and focussingmore on sales of existinginventory – which currentlyequates to 10,000 weeks, about2.5 years of sales. Finnishcompanies are promisingvacation services to theiremployees so this is going to beour best year yet for sales to thecorporate market, with manynew clients interested, even inthese bad times.

V: Have you been faced withsimilar difficulties in previouseconomic downturns?

VT: Finland experienced reallybad times at the beginning of the1990s that seriously affectedbusinesses. At that time weturned to selling more low-priced inventory.

BT: The timeshare industry inthe past has gone throughsimilar recessions with littleeffect on business volumes. InEurope we are dealing withsomething we have experienceof. In America there has been acomplete drying up of creditmarkets which is having adramatic effect on the industry.In Europe, consumer credit is


still expect good sales thisyear.

V: Has the recession forced youto make job cuts?

VT: We had already carried outcuts and have three less in topmanagement than a year ago.We saw what was coming andstarted preparing for it in 2007.Now we are careful about newrecruitment, which is mostlyrestricted to commission-basedsales and marketing people.

RP: We are constantly re-engineering our processes,employing more technology,cutting costs and improvingefficiencies in order to weatherthe rough marketplace.

BT: While we have never had tocut back on staff, looking for‘wastage’ is a routine exercise ingood times and bad.

V: How important is marketingto help solve problems relatedto the recession?

BT: All our marketing is done in-house and it, along with oursales department, is the trueheart of the company. Wegenerate, qualify and book all ofour own leads. We spend anenormous amount of time andmoney developing informationtechnology, call centres,websites and gatheringconsumer information. Wecontinuously examine andupgrade all our marketingprogrammes with the goal offinding the perfect prospect forour various product lines. Themore we refine our search, themore successful we havebecome.

VT: We have always heavilyinvested in marketing and brandbuilding, spending €1m annuallyon the brand. It is one of the

DEBATEQUOTE: WHEN TIMES ARE GOOD, EVERYONE DOES WELL, INBAD TIMES ONLY AN EXTREMELY STRONG CONCEPT ANDSTRONG ORGANISATIONS DO WELL. VESA TENGMAN

QUOTE: OUR STRATEGY HAS ALWAYS BEEN TO DEVELOP PRODUCTSTO FIT THE MARKETPLACE AND THAT INCLUDES THE FINANCIALCAPABILITIES OF PEOPLE IN THOSE LOCATIONS. BOB TROTTA

still available to developers sothe effect is not nearly socatastrophic.

RP: The 1990s recession wasnot global so when the Britishmarket became very difficult webegan selling to the Spanish,German and French markets.

V: Timeshare is traditionallyresilient, isn’t it?

RP: The marketing process oftimeshare, whereby we drivecustomers into our salesoperations, has always madetimeshare more resilient thanbusinesses that wait for thecustomer to come through thedoor. At the moment, CLC’smarketing operations areperforming extremely well asconsumers are attracted to ourlow-cost promotional holidayoffers. However, this recession isnot proving so easy fortimeshare due to consumerfinance restrictions, especially inthe US, and the euro/poundexchange rates in Europe.Devaluation and restrictedfinance is putting timeshare intothe same recession, but thistime around we cannot escapeinto other markets.

BT: This product has provenresilient because of its relativelylow cost, the quality of theproduct offering and theimportance of holidays to people.Despite the negative image oftimeshare in Europe, qualityresorts continue to provideconsumers with fantasticholidays and genuine value formoney. The image is slowlyimproving and the products arealso improving.

VT: We have seen already thatwe can sell our product well indifficult times. Holiday Club isstill growing and we have noreason to question that, we

reasons we do well as 90% of Finnsknow about us, making it easier toattract them to presentations. Nowwe are concentrating on fly-buys(actually drive-buys), andtelemarketing operations.

RP: Marketing programmes arethe core competence of thetimeshare business – withoutmarketing there are no sales. Ourmarketing of timeshare is moreproductive during a downturn aseveryone is looking for a bargainholiday. This makes up, to someextent, for lower sales efficiencycaused by financing restrictionsand pricing problems. We aremulti-faceted in our operation, with on-site, off-site, cold line and in-house operations. We are pruningour more expensive marketingprogrammes and expanding ourlower cost programmes.



V: Do your target marketsremain the same?

RP: Since the early 1990s, ClubLa Costa has had a multi-national sales force on- and off-site. However, the British marketis the mainstay of the companyand that continues to be good.The Russian market is oursecond biggest market and hasbeen extremely good to date.

BT: Our traditional and originalhome of Tenerife continues to bea most rewarding marketplacefor our company. Some 50% ofour owners are British and therest from across Europe. We arerecognised for being in Tenerifefor more than 25 years and forbuilding and operating thehighest quality resorts.

VT: We are interested in havinga new project in Spain to meetthe needs of Nordic and

Russian clients who lovesunshine, but we are not inany hurry. We are not reallylooking at new foreignmarkets because we arealready in Finland, Sweden,Norway and Russia. InFinland, we have 360,000households that wouldconsider buying timeshare.

V: What is your forecast forthe current crisis?

VT: When something goesdown it goes up again and ifyou can survive there are a lotof opportunities to increasebusiness volumes. Whentimes are good, everyone doeswell, in bad times only anextremely strong concept andstrong organisations do well.Construction costs are almost40% lower, which we havebeen able to take advantage ofand have a deal lasting severalyears, so in better times wewill have far lower costs still.

RP: It is anyone’s guess as tohow long the recession will last,but I expect it to continue wellinto 2011. At Club La Costa, itseffects are being dealt withright now and adjustments toour business plan have beenmade to enable us to operateat a high level of efficiency,even in this environment. Forthe first two months of thisyear, sales are exceedingbudget and our freeholdoperation in Turkey is goingfrom strength to strength.

BT: Without question, ourfreehold business is in a periodof stagnation and we do notanticipate this changing in thenear future. Our timesharingand fractional business,however, continues to grow.The current financial crisis willforce us to pay better attentionto expenditures and spendmore time and money ondeveloping our people. This issomething we take great pridein having done throughout ourhistory, but in times ofuncertainty we are reminded torefocus on our objectives.

V: Can we learn much from theAmerican experience?

BT: As long as consumer creditmarkets are open in Europe, theindustry should not decline toany noticeable degree.Developers and marketers maybe required to focus on newmarkets and less on the Britishmarket, which seems to befinancially affected more thanmost. In Europe we have uniquetraditions, economies,currencies, people andproblems. We do not require anAmerican example or solution tosolve what are essentiallyproblems of common sense.

VT: We do things our own wayand believe in the long-termrelationship with our owners.The current crisis in Europe is athreat, but it is also a bigopportunity.

RP: The American industry isparticularly affected by the creditcrisis as financing of theconsumer is heavily restricted. InEurope there are many problemsrelating to currency fluctuations,with some element of financingproblems, but the experiences ofAmerica are similar only in thatit is a global recession.Americans have their problems,we in Europe have ours. V


Instilling green initiatives in a resort is often seen as the right thingto do, but developers can be put off by the high price of such aninvestment. SARAH LEE discovers how the Arroyo family, owners ofan upscale Mexican resort built on sustainable principles, areboosting both the environment and their bottom line.


QUOTE: TOURISM IS THE THIRD MOST IMPORTANT SOURCE OF REVENUE TOMEXICO AND AS MORE VISITORS ENJOY ITS ATTRACTIONS WE NEED TOMINIMISE ITS IMPACT ON THE LOCAL ENVIRONMENT. MANUEL DIAZ-CEBRIAN

BUSINESS PROFILE

TO THOSE in the know, the Arroyofamily ranks among the founding fathersof tourism in Cancún and the subsequentdevelopment of the Mayan Riviera.

The area has been transformed in thepast 35 years from a tiny fishing villagesurrounded by dense jungle intoMexico’s premier holiday destination,with 24,000 hotel beds, netting up to 30 per cent of Mexico’s US$576 million2007 tourist income.

Engineer brothers Orlando andRomarico Arroyo, and friend Sigfrido PazParedes, also an engineer, were part of theteam that founded Cancún back in the1970s led by FONATUR, Mexico’snational trust for the promotion oftourism. Today their flagship developmentis Hacienda Tres Ríos – a resort built onsustainable principles, at Tres Ríos, sixmiles from Playa del Carmen.

Of course green issues are not a newconsideration, but today there is a muchgreater awareness, emphasis andunderstanding of the need to protect theenvironment than there was during the

THE GREEN FAMILY

region’s early development.Orlando’s daughter Annie Arroyo, Tres

Ríos’ director of brand development,explained: “The focus was so differentthen. Mexico needed to develop its touristmarket and Cancún was where it began.The developments brought hugeinvestment into the local economy andcompletely transformed the lives of localpeople. But they say you have to growand mature into a business before youcan look at ways of improving whatyou’re doing and Cancún is in that stagenow.”

MIXING BUSINESS AND NATUREA project of this stature could bedescribed with a measure of hyperbole.Tres Ríos is an enormous site of 132hectares, over 60 hectares of which arebeing left as a nature park. Situated wherethree rivers converge before flowing intothe sea, the site is home to 120 plantspecies including 11 endangered species,90 animal species, and ten cenotes –freshwater sinkholes – and thousands ofunderground rivers.

When the full plan is complete TresRíos will feature a huge range ofhospitality and leisure facilities, includingthe nature park, a marina, conventioncentre and five hotels. The first hotel –Hacienda Tres Ríos – is affiliated to GroupRCI and The Registry Collection.

But it would be wrong to engage in

hyperbole when everything about TresRíos is measured and planned to thefinest detail.

The Arroyo family purchased the site25 years ago, developing an eco-park forlocal people and tourists. They alreadyhad two mixed-use hotels in Cancún andone in Playa del Carmen, all part of theSunset Hotels Group.

However, when they looked to expandby building resorts on the Tres Ríos sitethey had to comply with the regulationsof SEMARNAT, the country’s Ministry ofEnvironment and Natural Resources.“If I’m honest I hadn’t considered theenvironmental impact of what we wantedto do – green issues didn’t top myagenda,” said Orlando Arroyo, Tres Ríos’CEO.

“Generally there’s a lack of care for theenvironment in our industry due to a lackof education, but SEMARNAT made mecare and insisted we show them how we would build our resorts withoutdamaging the area’s delicate ecosystems.

“I set what has become ourEnvironmental Management System

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SUSTAINABILITY THE TRES RÍOS WAYThe Tres Ríos model is based on clear sustainable developmentmethodologies and the premise that true sustainability is not limitedto the implementation of best practice during the resort’s operation –but that environmental criteria should be considered during designand construction phases. Its sustainable initiatives include:■ Hacienda Tres Ríos’ buildings were constructed on over 400 pilingsand a permeable rock base 2.8 metres above ground to allow groundwater to flow through the wetlands.■ The use of pre-fabricated elements of the buildings, assembled on-site resulting in the use of fewer materials and reduced wastecontamination of the site.■ Only local and regionally adapted plants were used for the gardens■ 4,000 plants of 11 endangered and protected species were rescuedfrom the construction site and placed in Tres Ríos’ on-sitegreenhouse.■ 80,000 mangrove trees were planted in 2.4 hectares of land■ Tres Ríos can operate off the national power and water grids andhas a titanium-clad water desalination plant that treats and filterssaltwater, avoiding the use of the freshwater aquifer.■ Cold water from deep wells is used to pre-cool air conditioningsystems resulting in a 38 per cent energy saving.■ Heat generated from air conditioning systems is captured and usedto heat the resort’s hot water resulting in a 75 per cent energy saving.■ In-room motion sensors shut down unnecessary energy use whenrooms are empty.■ Oxygenics showers mix oxygen with water to reduce consumption,while maintaining water pressure.■ LED and energy saving light bulbs save 75 per cent of what wouldnormally constitute the resort’s lighting energy consumption.



(EMS) team to work, and a few monthslater they came to me with a 400-pagedocument detailing ways we coulddevelop a sustainable resort that met ourbusiness needs.

“It was then I realised how thevarious ecosystems worked together atTres Ríos and the benefits of sustainableinitiatives. Soon the opinion of myenvironmental people became moreimportant than that of the engineersand there were more environmentaliststhan engineers and architects on site.”

THE MASTER PLANThe EMS team, led by chiefsustainability officer Gabriel Santoyo,carried out a two-year environmentalstudy of the site, including satelliteimagery, before drawing up plans forthe resort.

The study cost more than twice thatof the hotel’s architectural project, but itprovided a comprehensiveunderstanding of the composition ofthe site and the way in which Tres Ríos’numerous ecosystems interact.

This study led to the implementationof a range of initiatives aimed atprotecting, conserving and improvingthe natural environment in which theluxury 273-suite RCI Gold Crown resorthas been built.

The US$60 million resort, which


GETTING STAFF ONBOARDStaff at the resort are given a fullprogramme of environmental educationas part of their training. “Our staff reallyunderstand why it’s necessary to becareful about the way we use cleaningproducts for example,” said Annie. “Wefind that once they understand the ‘why’it makes it easier to do and tocommunicate to others. So we arepleased to be doing our part in raisinglocal workers’ environmental practices.”

Group RCI president and CEO, GeoffBallotti, has been so impressed by thework carried out at Hacienda Tres Ríos andthe resort’s commitment to, and leadershipin, sustainability initiatives that hecontinually references their efforts whentalking to global media about great ‘green’success stories in the vacation industry.“This resort is a shining new example of adevelopment that has used materials thatwill last longer and need less maintenancein the years to come,” he said.

Annie said: “We are pleased to beaffiliated to Group RCI and felt LaHerencia had all the characteristics to fitThe Registry Collection propertyportfolio. This is such a select group ofproperties that we felt our unique resortshould be part of it. The RegistryCollection brings a lot of prestige to LaHerencia Suites.”

Hacienda Tres Ríos’ shared ownershipaccommodation is still in sales and sinceJune 2008 its sales centre has accruedover US$20 million, and it has alreadysold some fractional memberships.

BUSINESS PROFILEQUOTE: SOON THE OPINION OF MY ENVIRONMENTALPEOPLE BECAME MORE IMPORTANT THAN THAT OFTHE ENGINEERS. ORLANDO ARROYO

opened in November, offers mixed-useaccommodation – half hotel, half sharedownership, with prices starting fromUS$20,000 a week.

Traditionally eco-resorts have anassociation with austerity, but HaciendaTres Ríos has not allowed its greenprinciples to undercut comfort – thesmallest room is a junior suite, all featuretraditional Mexican mahogany furniture,marble floors, flat screen satellite TVs, CDand DVD players, in-room Wi-Fi, pillowmenus, Egyptian cotton linens and somehave whirlpool baths.

Meanwhile The Registry Collectionone-, two-, and three-bedroom LaHerencia Suites with upgraded finishesand appliances, concierge services,private housekeeping and butlers will besold on completion in fractions startingfrom US$68,000 for two weeks.

Above: Luxury junior suites are standard rooms at Hacienda Tres Ríos andmaterials used fit the resort’s green credentials. Below: Green principles havenot impacted comfort levels or appearance at the resort.



The extended executive family, from left, Diego Arroyo, Annie Arroyo,Orlando Arroyo, Jorge Pallas, Arturo Marcelín and Daniel Arroyo

FAMILY VALUESThe Arroyos have a long association withCancún, dating back to the 1970s whenthey worked as consultants to nationaltourism development agency FONATUR.After gaining a masters degree intransportation economics in 1979, OrlandoArroyo headed FONATUR’s Cancún office,overseeing the development andconstruction of the city.

In 1988, Orlando Arroyo foundedSunset Group, encompassing SunsetLagoon Resort & Yacht Club, SunsetFishermen Spa & Resort, and 20 othertourism-related companies. He has heldnumerous travel industry positions,including vice president of the Associationof Hotels of Quintana Roo, and presidentof the Caribbean Co-ordination BusinessBoard, where he designed the Cancúnbeach restoration project and theEconomic Development Plan of QuintanaRoo 2025.

However, Orlando cites his brotherRomarico and close friend Sigfrido PazParedes as the brains behind Cancún, andother resorts across Mexico. The pairwere instrumental in the creation ofFONATUR. He also served as its adjunctdirector during the development ofCancún and Ixtapa Zihuatanejo, beforebecoming general director, planning andlaunching the tourist centres of Loretoand Los Cabos. Romarico served inMexico’s government as secretary ofagriculture and rural development, and isnow vice president of development andfinancing for Tres Ríos.

Paz Paredes’ work in the developmentof Cancún is so respected that a canal inthe city is named after him. After leavingFONATUR he became director of

Aeroméxico, then worked for thecountry’s secretary of tourism for 18years and is now project developmentdirector at the resort.

Vice president of sales andmarketing Arturo Marcelín is aninnovator in the vacation club industrywhose salesmanship and creativity areresponsible for the evolution of thegroup’s focus, from providingaccommodation to creating a lifestyleproduct.

Architect Jorge Pallas, vicepresident of operations andadministration, has served in manycommunity and national businessorganisations including as president ofAMDETUR, the Mexican Association ofTourism Developers.

Annie Arroyo became Tres Ríos’brand director, and Romarico’s sonDaniel Arroyo its adjunct vice presidentof sales and marketing, and when thegroup created its own constructioncompany while developing HaciendaTres Ríos, Annie and Daniel’s cousinDiego became Tres Ríos’ director ofdevelopment.

Annie said: “We are not a big chain.Hacienda Tres Ríos’ owners live here,eat here, and are here a lot of the time.It’s not left to people who don’t reallycare about the resort to run it – it is afamily resort run by a family.

“We are proud to be 100 per centMexican and support local communitiesthrough a partnership with Kanache, alocal non-profit adventure and tourorganisation that introduces tourists toauthentic Mayan culture, with tours thatdirectly benefit 13 Mayan communities.”

REWARD THROUGH RECOGNITIONTres Ríos’ environmental projects havewon high praise and accreditations. Asearly as 2006 SEMARNAT recognised theresort as a regional and national modelfor sustainable tourism development andit was one of only three national tourismprojects to receive a uniqueenvironmental seal of approval.

Orlando Arroyo has been invited topresent on building green resorts atevents such as World Travel Market,FITUR and ITB, and Tres Ríos is set tohost groups from other resorts keen tolearn from their example.

Orlando said: “A group is visiting usfrom a resort in Innsbruck, Austria tosee what we have achieved, and we arehosting interns from across theCaribbean’s hospitality industry with aninterest in sustainable resorts – not onlyin terms of how to build them, but howto run them. This interest is a greatcompliment for us.”

The Mexico tourism board’s directorfor the UK, Ireland, Sweden and theNetherlands, Manuel Diaz-Cebrian, alsobacked Tres Ríos’ environmental efforts.He said: “Tourism is the third mostimportant source of revenue to Mexicoand as more visitors enjoy its attractionswe need to minimise the impacttourism has on the local environmentand our people. To that end we are akeen supporter of the work carried outby the Travel Foundation and developersin order to maximise the benefits to theeconomy, the natural environment andour culture.”

The Tres Ríos group may haveentered into sustainable tourismsomewhat under duress back in theearly days of the resort’s planning, butthey have learned how importantenvironmental stewardship is. Today the group fully appreciates its value tothe local people and the touristeconomy of the Mayan Riviera, and notleast, how protecting the environmentcan save money while boosting theirbusiness.

Through their work in sustainabletourism the Arroyo family has developedan in-depth knowledge and infectiouspassion for the environment they havehelped to preserve at Tres Ríos. V


Popular Lanzarote resort Club Las Calas is ashining example of the difference a passionatetimeshare owners’ association can make to thelife and enjoyment of a resort. On the brink ofclosure two decades ago, the resort has run twomajor refurbishment programmes to keep unitsand guest areas fresh and up-to-date. And, asSTEVE ADAMS discovers, the work has beenalmost entirely funded by maintenance fees.


QUOTE: SUDDENLY THEY WEREN’T SELLING ENOUGHAND MAINTENANCE FEES WEREN’T SUFFICIENT TOCOVER THE RUNNING COSTS. ADAM JOHNSON

REFURBISHMENT

WHEN CLUB Las Calas became thefirst resort to receive the TATOC (TheAssociation of Timeshare Owners andCommittees) Certificate of ResortAccreditation, it marked anothermilestone for the Lanzarote resort,which has undergone a massiveturnaround during recent years.

The award also gave owners’committee chairman Adam Johnson thechance to take stock and look back atthe resort’s achievements with aconsiderable degree of satisfaction.“We’ve come a long way,” he told RCIVentures, in an understatement.

The 145-unit RCI Gold Crown resortin Puerto del Carmen is 100 per centowned by its members and – based on thenumber of owners and exchange gueststhat visit each year – one of the mostpopular timeshare resorts in Lanzarote.

A HISTORY LESSONBut it hasn’t always been that way. Alittle under 20 years ago it was adifferent story, as the original DiamondClub Las Calas – made up of fourresorts: Diamond Club Las Calas 1, 2and 3 plus nearby Club Mimosa – wasplaced in receivership in Spring 1990.

The first-time developers of theresorts got into difficulty by expandingtoo quickly and found themselves withan excess of supply over demand.

Johnson explained: “The original

SHINING LIGHT

developers were basically a group offriends from the UK who took regularholidays in Lanzarote. In late 1983, anumber of them jointly purchased apartially completed 19-apartment resortin Puerto del Carmen. This opened inApril 1984 as Diamond Club Las Calasand is on the site of what is now knownas Club Las Calas 1.

“That resort sold out almostimmediately, so the developer groupbought the adjacent plot, now known asClub Las Calas 2, borrowing capital tobuild 70 more units which they putinto sales. Initially it sold well but, bythe time they started on Calas 3, salesstarted drying up,” said Johnson.

“Suddenly they weren’t sellingenough and maintenance fees weren’tsufficient to cover the running costs.”

It was a recipe for disaster thatresulted in the club being placed inreceivership in Spring 1990.

THE RESCUEEnter John Bush, an accountant who hadbeen acting as secretary to the Owners’Committees of the four Las Calas resorts.He made an approach to the OfficialReceiver saying the resort could be runas a going concern, and his plan wasaccepted on Good Friday 1990.

Under the plan, the four originalclubs were all formally closed downand reopened as a single, combined

Club Las Calas, under the direction of ajoint, elected Owners’ Committee.New companies were formed in theUK and the Canary Islands to own andmanage the Club’s assets, while the twomajor creditors – the Royal Bank ofScotland (RBS) and First NationalCommercial Bank – retained a numberof property assets.

Bush formed a resort managementcompany – TMSI, now known as ResortSolutions – to handle members’ accounts,billing, bookings, rentals and more. Butwith more than 7,000 weeks unsold,sales were the priority. The Club washelped by RBS, which offered weeks to itsown staff, many of whom purchased.

“John instigated a complete changein marketing tactics,” Johnson recalled.“He realised cash flow was the problemand offloaded the remaining weeks ascheaply and quickly as possible. By theend of 1992 we were virtually sold out.”

During the next five years themanagement company and Owners’Committee prioritised debt settlement toput the club on a sound financial footing.

THE COSMETICSThough in a better position financially,the resort’s problems weren’t over. Bythe time Johnson took over as chairmanof the Owners’ Committee in 1998, the15-year-old apartments were starting toshow their age. A report on the resortconducted by Judith Dallison, then RCI’sCanary Island representative, highlightedthis fact.

Johnson said: “I asked Judith tocome and do a survey of the club andprovide a warts-and-all report.

“She did a good report, which canbe summarised thus – fantasticatmosphere, wonderful staff, poorapartments and facilities. It was assimple as that.”

Armed with the report, Johnson

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went to the Owners’ Committee andrecommended a major overhaul,arguing that anything less would resultin continuing falling standards.

“At that point John Bush stepped in,supporting my suggestion but saying itwould be difficult to manage the workfrom the UK or redesign an apartment‘by committee’,” Johnson explained.

“He offered to refurbish oneapartment, saying that if we liked it anddecided to do the same with the other146, then he would recoup his moneyas part of the major refurbishment – ifnot then he would lose out. But he wasprepared to take the risk.”

The one-off refurbishment saw anentire apartment stripped out andredecorated, with modern fittings, alldesigned to be high quality but lowmaintenance.

“We were knocked out by it – itmade such a difference,” recalledJohnson. “Refurbishing one unit gave usan idea of the cost for the whole resort,which worked out between £12-15,000per apartment depending on size.”

THE SUMSA variety of measures were used to keepcosts down, including standardisingitems such as cookers and fridges.

“At one time we had 13 differentbrands of fridge, which is a greatermaintenance cost,” explained Johnson.

The total cost of fully refurbishingthe resort was £1.6 million, but therewas only £350,000 in its long-termmaintenance (sinking) fund.

“That meant we would have to makea ‘cash call’ on the owners for thedifference, which worked out around£200 per week in a one-bed apartment– slightly less in a studio, slightly morein a two-bed,” said Johnson.

“I created a prospectus withphotographs and sent it out with a mailshot and called an extraordinary generalmeeting to vote on whether to proceed.”

Johnson spent the next couple ofmonths convincing owners it was theright move. His efforts paid off. The go-ahead was assured before the EGMeven took place after a very positivepostal vote with 86 per cent of ownersin favour of the refurbishment.

Tired and outdated lounges and bedrooms atClub Las Calas underwent a completerefurbishment as part of the resort’sApartment Refresh Programme in 2007-08.

BEFORE...

The refit was carried out by the resort’smaintenance team, supervised by interiordesigners Britta Interiores with sofa-bedsprovided by Manudecor. The total cost of£1.1 million was entirely funded throughmaintenance fees.

AFTER...

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Rather than employ an expensiveteam of builders, the resort opted tohire a project manager – Lindsey Key –to work with Resort Solutions and usethe on-site maintenance team alongsidevarious subcontractors. The ambitiousschedule for completion of the work –from September 1999 to July 2000,avoiding the busy summer schoolholidays – was also designed to be asefficient as possible.

THE WORK“We did the work in three blocks to geteconomies of scale. We closed down athird of the resort and locked it off as abuilding site,” said Johnson.

The project was delivered on timeand under budget, helped by a hugelypositive response from owners – morethan 98 per cent paid the additional fee– and sterling’s appreciation in valueagainst the peseta at the time.

“We had something like £200,000in exchange rate gains, because we keptmoney in the bank and only purchasedpesetas when the rate was favourable,”Johnson explained.

The work saw all apartmentsstripped and redecorated, with fullyequipped kitchens installed – includingmodern cookers, ceramic hobs, fridgefreezers, microwaves, juicing machinesand granite worktops – as well asmodern light fittings, new sofa bedsand more.

In addition, all the site’s electricswere replaced, a new hot water ringmains and industrial-scale hot waterheaters installed, all the resort’s bars andrestaurants refurbished and a newleisure complex constructed in a formerstorage space.

The work paid off. As well asdelighting owners, the resort was made


each year, and while the fees rise abovethe rate of inflation – in 2009 the feesare £249 for a one-bed unit and £299for a two-bed – the increase is fairlymodest, according to Johnson.

“The bigger problem has been thefalling value of sterling against the euro,because we collect more than 90 percent of fees in pounds but 78 per centof our expenditure is in euros,” he said.

“With the drop in the value of thepound against the euro, we had to workvery hard this year not to increasemaintenance fees by more than 10 percent. I’ve spoken to a number of resortswhere the increase in fees has been 18,20 and 23 per cent, and in some casesas much as 40 per cent.”

Johnson also says that because theclub is run “by the owners for theowners” the management work hard totrim costs wherever possible.

“One of the things we do is berigorous in setting the budget, and onceit is set – the figure is £1.75 million thisyear – the money is given to themanagement company who are told tomanage the resort within it, meeting thestandard of service and quality thatwe’ve agreed upon.”

As an incentive, the managementcompany receives a percentage of anysaving if they deliver the quality andservice for less.

The positive effect of therefurbishment work extends beyondRCI Gold Crown awards andaccreditation. The resort’s 4,700 ownershave never been happier.

“We couldn’t have achieved thisoutcome without the invaluablecontributions and work of my fellowcommittee members, the team on siteand Resort Solutions,” said Johnson.

“When I took over as chairman in1998 I used to get one or two letters ofcomplaint per month, maybe a quarter ofwhich were significant. I now get maybeone a year, and haven’t had a seriousletter of complaint in a long time. Like Isaid, we’ve come a long way.”

REFURBISHMENTQUOTE: WE SPENT JUST SHORT OF £1.1 MILLION, ANDIT DIDN’T COST THE MEMBERS ANYTHING OTHER THANTHEIR USUAL MAINTENANCE FEE. ADAM JOHNSON

an RCI Resort ofInternationalDistinction in 2001,and awarded RCI GoldCrown status the yearafter – an accolade ithas held ever since.

THE FUTUREThe committee and managementbecame determined to maintainstandards without having to conductanother ‘cash call’ to owners.

“We wanted to work out how muchmoney we needed to ring-fence frommaintenance fees to be able to maintainand improve standards,” said Johnson.

“So we itemised every single piece ofequipment in every apartment, got thepurchase price in 2000 and a life foreach item – for instance a bath lasts 15years, a bed frame 15 years, a mattress18 months – and produced aspreadsheet of all the apartments,plotting replacement schedules andcosts, factored for inflation.

“We worked out an annual figureand were a long way short inmaintenance fees. So over the last sevenyears we’ve been factoring that moneyinto the fees and increasing them overinflation each year to the point wherewe’re not far short of the figure weneed to collect.”

The fund was called upon in 2007-08for the resort’s Apartment RefreshProgramme, a project that involvedrefurbishing lounges, bedrooms andsome minor work in bathrooms. Changesincluded new soft furnishings, sofas, sofa-beds, armchairs, wardrobes, coffee tables,flat screen TVs, curtains and drapes.

To get the best value for money theresort put design and supply of the newfurnishings out to tender, ultimatelyemploying Malága-based BrittaInteriores with sofa-beds provided byManudecor. The refurbishment work wascarried out by the club’s maintenancestaff under the supervision of Britta.

“We spent just short of £1.1 million,and it didn’t cost the members anythingother than their usual maintenance fee,”said Johnson.

Around £300,000 now goes into thesinking fund from maintenance fees V

Adam Johnson

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QUOTE: IN TRAVEL, SOCIAL NETWORKING EVENS THEPLAYING FIELD SO SMALL HOTELS CAN COMPETEWITH BIGGER BRANDS. ANGELA BERADINO

MARKETING

MARKETING your productused to be quitestraightforward – you’didentify the market, devisemessages and then targetyour audience through oneor two channels. But thegrowth of the internet hascreated new marketingchannels and methods.

Now another level ofonline marketing is growingexponentially through thedevelopment of Web 2.0 – asecond generation of webdevelopment and design thatfacilitates communication,secure information sharingand collaboration over theinternet. The most popularexamples of these types ofwebsites are the increasingnumber of social networkingsites such as Facebook,Myspace, Bebo, LinkedIn,Plaxo, YouTube, Twitter,WAYN, and Flickr.

Social networks are notnew – Facebook celebrated itsfifth anniversary earlier thisyear and it certainly wasn’t


the first of its kind. But whatis striking is that such sitesare attracting more and moremainstream followers.Everyone from Britney Spearsto Barack Obama is usingthem. Obama’s presidentialelection campaign was thefirst to harness the power ofsocial networking – usingFacebook, Myspace, Twitterand Bebo to communicatewith voters.

As user numbers for thesesites grows each day, theirpowerful marketing potentialis being identified andembraced by companies theworld over. Within thehospitality sector take-up hasbeen slower, but here toocompanies are taking noteand making their mark.

So should timeshare andfractional resorts enter intothis new form of interaction?What’s in it for them? Whichplatform is best? And, mostimportantly, what are thebenefits to your business? Agroup of experts, active

hoteliers and industryadvisers shared their viewswith Ventures.

THE EXPERTSThere are manymisconceptions about socialnetwork marketing – that it’sjust for fun, you can’tcommunicate with the rightaudience and that it isn’tright for every business.

But as Angela Berardino,director of emerging mediaat Turner PR in Coloradoexplains, social media hasshown its worth in thehighest profile arenas.

“Last year I worked forthe city of Denver tourismwhen Obama was nominatedas Democrat candidate in thecity,” she said.

“ There was a huge socialnetworking aspect to this andit continued across Obama’scampaign. He launchedprofiles on Facebook, Twitter,MySpace and Bebo, whichhelped form a grass rootscampaign. He was able to

communicate with millionsof people and this led to vitalfund-raising with onlinesupporters donating to thecampaign.

“In travel, socialnetworking evens the playingfield so small hotels cancompete with bigger brands.Small hotels can performbetter on social networks asthey tend to have morepersonality and areunrestricted by the confinesof the corporate marketingstrategies of larger brands.”

There is a view amongluxury hotels that Facebookand Twitter do not matchtheir customerdemographics. ButBerardino, who works withluxury hotels such as HotelTeatro and Four SeasonsPrivate Residences in Denverand Banyan Tree Mayakoba,Mexico, argues that thesesites aren’t just for 20-somethings with littledisposable income.

“The fastest growing

Do you think Facebook, MySpace, Twitter and similarsites are just for fun? Think again, writes SARAH LEE,as she explores how the growth in social networking isleading to an online marketing revolution.

THE SOCIAL REVOLUTION

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demographic on Facebook is35 to 44-year-olds,” she said. “Hotels spend a lot of moneyon customer experiencesurveys but don’t look atwhat is being said aboutthem online. I recommendhotels I work with toresearch what’s being saidabout them using a servicelike Filtrbox.com. This showswhere people are talkingabout them and they canjudge whether a specificcampaign was effective.

“I recommend my clientsuse Facebook as its fan pagesare easy to build and itssearch engine optimisation(SEO) indexing helps searchengines find businessesonline. Bebo is also good forthis, while I suggest hotelshave all their executive teamon a business network likeLinkedIn, which is great formaking contacts. I also advisehotels to claim their listingson Tripadvisor and Yelp asthey need to monitor andrespond to reviews. The mostimportant thing is that theyrespond when people aretalking about them.”

Morris Sim is CEO of


“This paradigm shift hasmade social media andnetworks very influential asinformation shared on theseplatforms impacts a brand’sreputation and some offer aranking system. This is whatpeople will increasingly basetheir purchase decisions on.”

THE INDUSTRY ADOPTERSFairmont Hotels & Resortshas a fan page on Facebookand a channel on YouTube,both looked after by theirmarketing and strategyteams, while public relationsmanager Mike Taylor is theirchief Twitterer.

He said: “We monitoredsocial media for a while and,as the media started to useTwitter, we decided to joinlast August to communicatewith journalists.

“We initially followedmedia and other brands wethought were doing a goodjob at engaging people andreally interacting, then westarted following and beingfollowed by customers,partners, people interested intravel and other hotelbrands.”

Mike cites the recentexplosion in Twitter use asone reason why it’sbecoming central toFairmont’s PR strategies.Although Facebook’s globalmonthly visits hit almost 1.2

MARKETINGQUOTE: INCORPORATING SOCIAL NETWORKING INTO OUR PR STRATEGY HAS GENERATED ANINCREASED LEVEL OF SITE TRAFFIC TO VACATIONBETTER.ORG AND AWARENESS OF THEOVERALL CAMPAIGN. LOU ANN BURNEY

Circos, whose Brand Karmapackage helps hospitalitybrands understand how theyare perceived by customersresearching them throughsocial media.

He said: “Hotels use theinformation we collate toimprove operationalperformance or develop abetter understanding of howtheir brand is beingimpacted by comments andreviews on social networks.

“With the travel industryhit by the economic decline,there is an increased need forresorts to effectively presenttheir brand in a way thatconsumers will be lookingfor.

“Social media is apurchase shaper, so hoteliersand resort developers shouldget involved and showconsumers what they offer.”

Like Berardino, Simhighlights the importance ofclaiming your brand onlineand responding tocustomers. He added:“Technology has made iteasy for consumers togenerate content – postingpictures and videos on anynumber of sites, andwhenever they do so it hasthe ability to fragment thebrand message.

billion and MySpace about810 million, Twitter – thenewest of the big socialnetworks – registered around54 million visits but it israpidly trending upward.Twitter’s user base grew ten-fold in the UK in the yearto January and according toNielsen Online it grew astaggering 1,382 per cent inthe US in February.

“This is a phenomenalfigure,” said Taylor. “AndTwitter’s so viral that if youwant to get news orinformation out you can hita wide range of individualsvery quickly. But the mostimportant thing to us is to beauthentic and providegenuine responses on there.

“We are seeing increasedbrand awareness and gaininggood real-time feedbackfrom people about ourbrand, products and ideas.The biggest disadvantage isthe amount of time it takes –you need to service youraccount with regular updatesto appeal to followers.”

Although Hilton Hotels isa large brand it doesn’t havea company-wide socialnetworking strategy. Instead,individual hotels such asHilton Anaheim, nearDisneyland, California haveinstigated their own onlineefforts.

The hotel’s PR managerAndy Keown is behind theirfour-month-old Twitter



profile and Facebook page.He said: “I post on Twitterabout promotions andspecial rates targeting peopleall over the country. I alsohave a following of localpeople so I talk about ourrestaurant and forthcomingevents. As we are aconvention hotel I havereached out to organisers onTwitter offering reducedrates and advice. But I alsopost fun things – the Mayorof Anaheim once visited andsaid he enjoyed our blog so Iput that on Twitter.

“People who thinkFacebook and Twitter are allabout fun are missing thepoint – it’s brought usobvious benefits. We learnedsomeone wanted to have atweet-up at our hotel – anopportunity to meet othertwitterers. We offered theman incentive, whichencouraged more people tocome and our bar wasabsolutely packed.

“I often search on Twitterfor Disneyland and if peopleare looking for hotelrecommendations, I’llcontact them and suggest ourhotel. Sometimes they’relooking for things to do inthe city so I reach out tothem and I know people have

stayed here because of that.“I have even posted a job

opening on Twitter and wegot some excellentapplicants.”

TIMESHARE ON SOCIAL NETWORKSTimeshare trade organisationshave also started to embracesocial networks with theResort DevelopmentOrganisation (RDO, formerlyOTE) in Europe and theAmerican Resort DevelopmentAssociation (ARDA) bothutilising thesechannels.

Each hasrecently launcheda website –gotimeshare.org(RDO) andvacationbetter.org (ARDA) –aimed at populating theinternet with positivemessages about timeshare andsocial networks are aidingthese campaigns.

ARDA vice president ofmarketing andcommunications Lou AnnBurney (above) said: “We usesocial networking to reach ourtarget audience of timeshareowners and travellers, and the

general public withinformation about the benefitsof vacation ownership.

“Incorporating socialnetworking into our PRstrategy has generated anincreased level of site traffic tovacationbetter.org andawareness of the overallcampaign.”

Vacationbetter.org hasprofiles on Twitter, Facebook,MySpace and LinkedIn,regularly updated withimages, video, resources andinformation from the website.It is also using YouTube andVimeo to postvacationbetter.org videos andis developing a blog with

entries from presidentand CEO HowardNusbaum, membersand timeshare owners.

ARDA also usessocial news sites suchas Diig and Reddit to

post press releases andinformation related tovacation ownership or specificcampaigns.

Burney added: “Combined,these types of media allow usto micro-target audiences andreach large segments of thepopulation.

“You can have a creative,dynamic website, but it is onlyeffective if people know aboutit and visit frequently. In

addition to linking to yourwebsite and creating a profileon networking sites, it is asimportant to keep the contentin networking profiles up-to-date. This plays a key role inSEO ranking and promptsreturn visitors to yourwebsite.”

SEO ranking forgotimeshare.org is central toRDO’s social networkingstrategy too, as their SEO expertTim Kirby explained. “Twitterhas helped draw moresubscribers to the website, butyou can also search for peopleand information in real-time,”he said. “It provides a river ofinformation and resorts shouldconsider under whatcircumstances this would beuseful to them – be itmarketing information, clientreferrals, or even as a projectmanagement interface.

“Twitter gives you theability to send a text message tothe whole internet at once andyou will be amazed at whofinds you on there.

“It is also a great leveller asit doesn’t matter if you are abig corporation or small start-up, you have the capacity to getyour message out, whilegetting noticed on Google isnow pretty costly and startingto get elitist.

“Twitter is great for pickingup trends and great formarketers as they can see who’stalking about their product. Weare hitting the bell curve withit and will start to see sharpadoption of Twitter as amainstream communicationschannel.” V


CRISIS, meltdown, downward spiral,depression… the list of adjectives goes on –

but does the present economic downturn reallyaffect us? After all, the timeshare market hasalways stayed strong in recession. Sadly, thatmight have been true during the recessions of thelate 1980s and early 1990s, but this time thesituation is very different.

In timeshare’s heyday the buzz-phrase was‘empty nesters’ – those ideal clients whosefamilies had grown up leaving them with more freetime and disposable income.

But times change, and the empty nesters of the1980’s are now 80 themselves. They face economic,health and travel issues meaning they holiday less orcease to holiday at all as they age, which in turn hasa negative impact on the industry, leading torelinquishments of membership and the downwardspiral of decreasing incomes from maintenance fees.

So how can these difficulties be overcome? First we need toconsider the modern consumer, a savvy person who is well aware ofhis rights and knows what he wants – flexibility, security, service andvalue for money. This younger generation of client has the finances tobe able to enjoy the product, but how do we attract them?

Firstly you have to identify your client, which comes down tomanaging your data and knowing your client base, as well as havinga hard think about who you want to attract. Investigate, ask, observe.This is easy for large operations having the data and the expertise,but there are still many ways that smaller resorts can improvemember acquisition and retention.

Attracting the 21st-century consumer involves a mix of tangiblesand intangibles. Put that in the context of today’s economic climateand it’s not as simple as providing comfier beds or building largerapartments.

Look at the finances of purchasing timeshare. The major item ofexpense, apart from the initial purchase, is the annual fee. Consumerrequirements change so don’t simply offer them perpetuityownerships, allow them the ability to change when the family growsor circumstances change. Wrap the membership into bite-sizedpieces with fees included, using three-, five- or 10-year packages.

Service is paramount, as is training staff to be professional and tothink outside the box. That extra special word or gesture ofassistance can make the biggest difference. Never underestimate

how much a warm welcome can mean at the end of a long andfraught journey.

The large US hospitality groups have an excellent service ethicand there’s no reason why smaller European resorts can’t have thesame. To fully maximise the potential of keeping or increasing yourmember base you have to maximise and increase the potency of yourstaff and your service levels to ensure they meet guests’requirements. You may not be able to afford a completerefurbishment on resort, but the guest may well remember themember of staff who went out of their way to ensure they enjoyedtheir stay, whether by finding a piece of information or a lost shoe!

Another big challenge is the vast amount of unsold inventory onthe market and the lack of high calibre resale companies. There is noeasy solution to this ever-growing problem. The price of a second-hand timeshare now undermines the primary product – after all, whyshould a consumer pay £10,000 when he can buy for £2,000? Thissituation has to be managed, and the industry needs to work togetherto do it. Increasing resale inventory cannot be ignored by any resort,as it won’t go away because changing personal and economicsituations are a fact of life.

Even the modern day consumer won’t be a member at a resortforever so think about this first – it shouldn’t be an after thought.Sales are important but retaining the member and their level of activity is the key to the future.


QUOTE: ATTRACTING THE 21ST-CENTURY CONSUMER INVOLVES A MIX OF TANGIBLESAND INTANGIBLES… IT’S NOT AS SIMPLE AS PROVIDING COMFIER BEDS OR BUILDINGLARGER APARTMENTS. JENNIE THOMPSON

FINAL CALL

With timeshare’s traditional resilience to economic downturn being severelytested, JENNIE THOMPSON, director of Leisure Solutions, a Spanish-basedconsultancy specialising in business solutions for the European leisureindustry, looks at how to keep loyal members and attract new ones.

NO PROBLEMS, ONLY OPPORTUNITIES

‘‘

’’

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For more information, please contact: Amanda White on +44 (0)1536 314 651.

“Through the years, Hilton and RCI have enjoyed a great relationship. When we dream big and present ‘what if’ ideas, RCI always steps up to help us bring our Owners’ vacation experiences to the next level. As a result, our travel advantages remain unique, flexible and ever-evolving. Our successful collaborations with RCI are based on years of trust, and a shared commitment to bring dynamic ideas to life. We celebrate RCI’s 35th Anniversary and look forward to the innovations ahead!”

Kim Robert KreigerSenior Vice President and Chief Club Officer, Hilton Grand Vacations

RCI Affiliate since 1993

With 35 years of experience, more than 4,000 affiliated resorts worldwide and over 3.7 million members, we continue to be the global leader in vacation exchange. We are committed to bringing the highest level of reliability, customer service and innovation to every developer relationship so that you can achieve your goals in shared ownership. Because after all… your success is our success.

RCI and related marks are registered trademarks and/or service marks in the United States and internationally. All rights reserved. ©2009 RCI, LLC. All rights reserved.

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