RCI Ventures North America and Canada Q1 2015

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Q1 2015 THE BUSINESS OF VACATION THE CHANGING FACE OF TRAVEL

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Transcript of RCI Ventures North America and Canada Q1 2015

Page 1: RCI Ventures North America and Canada Q1 2015

Q1 2015THE BUSINESS OF VACATION

THE CHANGING FACE OF TRAVEL

Page 2: RCI Ventures North America and Canada Q1 2015

RCI Ventures Spread FOC MCM Blue 1186-126-3/63 Q1 2015 (19971) (January)

Marine Chronometer ManufactureManufacture chronometer movement with Silicium technology.

Self-winding. Water-resistant to 100 m. 18 ct rose gold case.

Available also on leather strap or gold bracelet.

F O R A C ATA LO G , C A L L 5 6 1 - 9 8 8 - 8 6 0 0 O R E M A I L : U S A 1 1 4 @ U LY S S E - N A R D I N . C O M

W W W. U LY S S E - N A R D I N . C O M

19971 RCI Ventures Spread FOC MCM Blue 1186-126-3/63 Q1 2015 (January).indd 1 9/30/14 10:44 AM

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RCI Ventures Spread FOC MCM Blue 1186-126-3/63 Q1 2015 (19971) (January)

Marine Chronometer ManufactureManufacture chronometer movement with Silicium technology.

Self-winding. Water-resistant to 100 m. 18 ct rose gold case.

Available also on leather strap or gold bracelet.

F O R A C ATA LO G , C A L L 5 6 1 - 9 8 8 - 8 6 0 0 O R E M A I L : U S A 1 1 4 @ U LY S S E - N A R D I N . C O M

W W W. U LY S S E - N A R D I N . C O M

19971 RCI Ventures Spread FOC MCM Blue 1186-126-3/63 Q1 2015 (January).indd 1 9/30/14 10:44 AM

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2 Q1 201 5

I N BR I EF

06 By the Numbers The transforming traveler

08 Events Calendar Industry events around the world

08 Travel Trends Opportunities in eastern Europe; a new—and younger—generation of owners

I N DEP T H

10 Changing Attitudes What industry leaders are doing to educate the world about the benefits of vacation ownership

16 Flying High Blaine Liljenquist, CEO of Plantation Resort

I N DE V EL OPM EN T

20 Canada’s Next Chapter The world’s second-largest country is poised for growth

I N NOVAT ION

24 Technology & Marketing The power of being helpful

28 Industry Solutions RCI® Connect; RCI® Resort Showcase packages

I NSIG H T

30 Making Waves TravelSmart VIP Vacations

34 Après-ski Appeal The Cliff Club

38 International Expansion Fairmont Heritage Place

42 Southern Charm Amber Vacation Club

46 RCI® Affiliated Resort News Recent RCI affiliated resorts and reports from the field

52 A Final Thought 2015 financial forecast

ON THE COVER This issue’s theme: the changing face of travel in 2015.

ON THIS PAGE The Palm, a Fairmont Heritage Place resort in Dubai, United Arab Emirates.

Senior Vice President: Philip S. Brojan. Publisher: Brian Bruno. Associate Publisher: Emily Sadlock. Contributing Editor: Helen Foster. Advisory Board Chair: Fiona Downing. Advisory Board: Jeff Parker, Kris Jamtaas, Kelly Deardorff, Eugenio Macouzet, Bob McGrath, Todd Menendez, Robert Stolt, Debbie Wunder.

Managing Editor: Gaetano Pollice. Senior Editor: Bree Sposato. Assistant Editor: Jessen O’Brien. Contributing Editors: Catharine Fleury, Dave Johnston. Copy Editors: Michael Luther, Amy Lynn Tonsits. Senior Art Director: Ash Oat. Contributing Art Director: Jim Maximowicz. Junior Visual Designer: Jenna Grady. Photography Editor: Pamela A. Pasco. Assistant Photo Editors: Jenna Kaplan, Kasandra Torres. Editorial Intern: Angela Huynh. Senior Producer: Jessica Perrin. Account Director: Mitchell Wexler. Account Supervisor: Shrivika Ramaswamy. Chief Executive Officer: Kirk Cheyfitz. Chief Creative Officer: Rob Rasmussen. Vice President, Narrative: Charles Coxe.

For all subscription and advertising queries, please contact [email protected]. No part of this magazine may be reproduced without written permission from RCI. RCI Ventures® magazine publishes opinions of many knowledgeable individuals. These opinions are not a substitute for legal, accounting or other professional advice. The views and conclusions expressed in RCI Ventures® magazine are those of the authors and are not necessarily those of RCI nor of its parent or affiliates. The information contained in this publication has been obtained from sources the proprietors believe to be correct. However, no legal liability can be accepted for any errors. RCI Ventures is a registered trademark of RCI, LLC. © 2015 RCI, LLC. All Rights Reserved. Printed in U.S.A. 9998 North Michigan Road, Carmel, IN 46032

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Enjoy RCI Ventures® magazine on your iPad®* when you download the RCI Ventures® magazine app for iPad® free at the iTunes® App Store.

* RCI Ventures magazine is an independent publication and has not been authorized, sponsored or otherwise approved by Apple Inc. iPad and iTunes are registered trademarks of Apple Inc.

TABLE OF CONTENTS

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MESSAGE FROM RCI

A YEAR AGO RCI EMBARKED ON A CELEBRATION of our 40th anniversary, an opportunity to appreciate the magnitude of the successes we’ve achieved together—as well as that we as an industry have a track record of not simply responding to the needs of our owners and guests, but actively anticipating them.

And if one thing was certain in the past 40 years, it was that the needs of owners and guests are constantly chang-ing. As we developed this issue of RCI Ventures® magazine, change quickly emerged as the dominant theme. In all its incarnations, change encompasses the demographics of our current owners as well as the next generation of owners, their attitudes toward and motivations for travel-ing, and the platforms on which our industry continues to promote the many benefits of the vacation ownership experience and educate prospects. How we address these changes defines our strategy at RCI. We’ve always made it a priority to invest in resources that can help ensure that you, our affiliates, have access to cutting-edge solutions and the competitive edge that those solutions inherently provide for expanding your business.

Change also describes how our industry connects to the next generation of owners and tells our story to the world. Industry leaders are proactively promoting the benefits of timeshare in new, inventive ways and in many channels. But what hasn’t changed is the undeniable appeal of the time-share product. Its fundamental benefits are constant: access to shared space, comfortable surroundings and important, valuable time with family and friends.

Understanding the current motivations and preferences of travelers is paramount. In this issue we illustrate the vacation likes and dislikes of travelers on a broad demo-graphic spectrum, thus demonstrating how to customize our industry’s messaging to attract prospects from a variety of generations to the sales table (By the Numbers, page 6). There’s been a sea change in owner demographics, with younger owners now comprising 30 percent of the industry’s new-owner base, according to the 2014 ARDA International Foundation (AIF) Shared Vacation Ownership Study (detailed on page 9).

The devices available to consumers, and the myriad ways consumers use technology and the Internet in making pur-chasing decisions, are also changing. Just as the PC gave way

to the laptop and cell phones, the use of tablets and mobile devices by our customers has risen swiftly, a shift that has, equally as rapidly, changed how we can best communicate with them. In our Technology & Marketing story, on page 24, we share content-based social media strategies designed to maximize the online conversation with prospects. When you truly know your customer, you can give them helpful, pertinent information when they can use it best—and fulfill needs they may not even have realized they had.

RCI® affiliates, of course, are on the front lines and witnessing firsthand how the vacation preferences of their owners have changed. In this issue there is plenty of evidence that the industry is rising to the occasion and tai-loring services in response. In Canada, for example, Skyline Vacation Club provides both year-round outdoor recreation and urban-based activities at its four resorts in Ontario, catering specifically to a changing demographic of Canadian owners who now desire access to the best of both worlds. In Mexico and the Caribbean, TravelSmart VIP Vacations, which was created to complement the portfolio of Sunwing Travel Group, has the unique ability to offer its expanding ownership base a specialized suite of travel products and services. And Rick Houston, general manager of operations for Fairmont Heritage Place, describes the dual benefit of change for owners, as well as resorts, this way: “By continu-ing to add value to our owner benefit programs, we are constantly enhancing our owners’ experiences and creating a competitive advantage.”

Just as change is inevitable, so too is our ability, as an industry, to continue to evolve, enhance and promote the resort-vacation experience, to the benefit of us all.

Finding Success in ChangeAs travelers continue to transform, more opportunities for growth appear.

Gordon Gurnik President, RCI

RC I V ENT U R E S 3

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The Unparalleled Exchange Network

An exit that generates

A RETURNRecovering costs & keeping tours engaged

Presenting a flexible customizedplatform designed

to engage prospects and help increase

your sales.

To learn more, visit www.RCIAffiliates.com/CustomIncentives

The RCI® Custom Incentives & Benefits Platform empowers you to promote your full range of travel

and leisure benefits:

Tour premiums • First-day incentives • Trial and exit programs

The end result is an easy-to-use custom-branded experience that helps build credibility, to turn prospective

buyers into owners.

FLEXIBILITY Package a wide range of benefits and put your brand at the forefront. Feature your existing

offerings while also leveraging RCI’s global network.

BREADTH OF DESTINATIONS Encourage prospects to return to your resort, while also enticing them with inventory from

thousands of resorts around the world.

SAVINGS CREDITS*Engage your customers with savings credits

they can spend immediately in RCI’s vast shopping network.

RECOVER COSTS Improve close rates and engage prospective owners from the start, all while driving down

operational expenses.

*Savings Credits are provided by a third party provider under agreement with RCI.RCI and related marks are registered trademarks and/or service marks in the United States and internationally.

© 2014 Resort Rental, LLC. All rights reserved. Printed in the U.S.A.

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The Unparalleled Exchange Network

An exit that generates

A RETURNRecovering costs & keeping tours engaged

Presenting a flexible customizedplatform designed

to engage prospects and help increase

your sales.

To learn more, visit www.RCIAffiliates.com/CustomIncentives

The RCI® Custom Incentives & Benefits Platform empowers you to promote your full range of travel

and leisure benefits:

Tour premiums • First-day incentives • Trial and exit programs

The end result is an easy-to-use custom-branded experience that helps build credibility, to turn prospective

buyers into owners.

FLEXIBILITY Package a wide range of benefits and put your brand at the forefront. Feature your existing

offerings while also leveraging RCI’s global network.

BREADTH OF DESTINATIONS Encourage prospects to return to your resort, while also enticing them with inventory from

thousands of resorts around the world.

SAVINGS CREDITS*Engage your customers with savings credits

they can spend immediately in RCI’s vast shopping network.

RECOVER COSTS Improve close rates and engage prospective owners from the start, all while driving down

operational expenses.

*Savings Credits are provided by a third party provider under agreement with RCI.RCI and related marks are registered trademarks and/or service marks in the United States and internationally.

© 2014 Resort Rental, LLC. All rights reserved. Printed in the U.S.A.

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EBY THE NUMBERS

The Transforming TravelerThe ever-changing American traveler plans to spend more money on vacations and take longer trips, positive signs for both the industry and the economy at large, according to MMGY Global’s 2014 Portrait of American Travelers®. “People’s likelihood, propensity and willingness to travel have turned much more quickly than the economy and, to a certain extent, have led the upturn,” MMGY Global vice president of insights Steve Cohen says. The study has examined the habits of active American leisure travelers for the last 24 years, providing substantial longitudinal data and insight into ongoing trends.

Vacation Motivations Several top motivators for travel among younger generations can be

grouped under the desire to interact with different cultures. “They want

to go explore and experience new things,” Cohen says.

70%

68%

63%

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%

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M ILLE N N IAL S %

BOO M E RS %

G E N -X ’ E RS %

MATU R E S %

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Internet & Devices“One of the key findings here is that other generational groups besides millennials post their photos on social

media sites to make friends and family jealous,” Cohen says. “We believe that number and the percentage of

people who say they use social media to share their vacation experience is understated.”

FOUR GENERATIONS, AS DEFINED BY MMGY GLOBAL:

Key Attractions“The top reason millennials and X’ers travel is for an activity,” Cohen says. “It’s not about simply lying on a beach.

They are interested in going hiking, climbing or skiing.” Even in cities the main appeal for these two groups is the

variety of activities available. Matures, in comparison, were more likely to travel to visit friends and family.

Went online to seek/review information about a destination or travel service provider

Wrote/commented/posted travel-related content online

Posted travel-related pictures/videos online

MILLENNIA

LS

X’ERS

BOOMERS

MATURES

40%

30%

20%

10%

9 in 10 millennial travelers used the Internet to get information

about travel service providers for at least one trip last year—surpassing

Generation X’ers (82%), boomers (81%) and matures (77%).

OUTDOORS

62% Millennials 52% X’ers

42% Boomers 37% Matures

CIT Y

35% Millennials 25% X’ers

23% Boomers 17% Matures

THEME PARK

16% Millennials 21% X’ers

10% Boomers 7% Matures

I show my vacation photos on social media sites like Facebook to make my friends/family jealous.

44% Millennials 27% X’ers

13% Boomers 8% Matures

I like using social media to share a record of my travel

experiences.

51% Millennials 30% X’ers

19% Boomers 9% Matures

GENERATION BIRTH YEAR AGE IN 2014

MILLENNIALS 1979–1994 18–35

X’ERS 1965–1978 36–49

BOOMERS 1946–1964 50–68

MATURES 1945 AND BEFORE 69+

1940 1960 19901950 19801970

To purchase the full report, 2014 Portrait of American Travelers® by MMGY Global, go to mmgyglobal.com.

RC I V ENT U R E S 7

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EVENTS CALENDAR

Conferences, seminars, expos, summits, workshops, exhibitions, forums, symposiums, conventions, events and meetings you should know about.

JANUARY 14–15HIFI (Hotel Investment Forum India)Gurgaon, Haryana, India hifi-india.com

JANUARY 22–25EMITT (East Mediterranean International Tourism and Travel Exhibition)Istanbul, Turkey emittistanbul.com

JANUARY 26–28ALIS (The Americas Lodging Investment Summit) Los Angeles, California, U.S.A. alisconference.com

JANUARY 28–30Caribbean Travel MarketplaceSan Juan, Puerto Rico caribbeanhotelandtourism.com

JANUARY 28–FEBRUARY 1FITUR (International Tourism Trade Fair)Madrid, Spain ifema.es/fitur_06

FEBRUARY 11Leisure Real Estate SummitLondon, Englandleisurerealestatesummit.com

MARCH 2–4IHIF (International Hotel Investment Forum) Berlin, Germany berlinconference.com

MARCH 4–8ITB (Internationale Tourismus-Börse) BerlinBerlin, Germany itb-berlin.de/en

MARCH 6–8GITF (Guangzhou International Travel Fair) Guangzhou, China www.gitf.com.cn/en/index.html

MARCH 6–8TATOC (The Association for Timeshare Owners Committees)Warrington, Cheshire, United Kingdom tatoc.co.uk

MARCH 10–13MIPIM (Marché International des Professionnels de l’Immobilier)—The World’s Property MarketCannes, France mipim.com

What’s Happening

Developers are making a play for timeshare’s latest burgeoning market: eastern Europe.

With competitive prices, strikingly beautiful cities rich in history, unspoiled nature and proximity to the rest of Europe, eastern European countries have the kind of magical allure that other parts of the continent offered several decades ago. So it’s no surprise that these locales are in rising demand by foreign travelers, says Vassilis Themelidis, RCI’s European regional director of business development. “We are experiencing increasing interest from eastern European developers to enter the vacation ownership market and offer products domestically and to international travelers,” Themelidis says.

In Turkey, for example, two recent 2014 resort affiliations with RCI—Premium Vacation Club 5* Hotel Istanbul and Elysium Vacation Club Taksim—reflect Istanbul’s growing popularity among tourists and a belief in the improving safety of traveling to the country’s western provinces. But new growth opportunities are not limited to the city that so famously straddles east and west: Over the past two years, RCI has affiliated 18 resorts in Turkey and recorded remarkable growth in terms of new members’ joining RCI, doubling its Turkish member base.

Themelidis points to another opportunity, in Croatia. The appeal of Croatia, long considered a modern country, was augmented in 2013 when it joined the European Union. As the construction of holiday villas reaches a saturation point and traditional source markets experience turb­ulence, developers are seeking alt er natives. In response, vacation ownership in Croatia is poised to grow (RCI already has affiliated resorts here, along the Adriatic Sea). And in nearby Serbia, two RCI affiliated resorts can be found in the mountains of Zlatibor. So far sales take place mostly in the domestic market and neighboring Bulgaria and Romania.

Not only is eastern Europe itself attractive to international visitors, but the region also con tinues to be an important source market for other European countries with more­established timeshare programs, particularly Spain, the Canary Islands and Greece. This member base hails from Russia, Poland, Slovakia and the Czech Republic, among other countries, and has only grown over the past 10 to 15 years, Themelidis says. “They’re eager for lifestyle and value for their money,” he says. “And they’re replacing timeshare purchasers who traditionally come from the United Kingdom and Scandinavian countries.”

All around, new opportunities abound.

Europe’s Newest Frontier

TU R K E Y

I STAN B U L

ZL ATI B O R

J E L SA

D U B ROVN I K

CROATIA

SE R B IA

G R E ECE

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2014

Owner’s

Report

SHARED VACATION OWNERSHIP

2014 EDITION

P R E PA R E D BY

General ProfileCHAPTER THREE

12

• According to previous research conducted by AIF in 2012, 7.2% of all U.S. households owned at least one timeshare

product. Using the same methodology in 2014, 7.9% of all U.S. households (9,102,917)* are reported to be timeshare

owners. • The majority of timeshare owners continue to own one type of product.

• Continuing the trend first discovered in 2012, more owners own points products than week products in 2014,

demonstrating the growing popularity of points products.

OWNER’S REPORT: SHARED VACATION OWNERSHIP 2014 EDITION

*Source: U.S. Census Bureau USA Quick Facts (2013).

**Within the “Incidence of ownership” chart, the numbers represent the overall percentage of timeshare ownership among the population of households

within the U.S. ***Within the “Product type” chart, incidence of timeshare ownership is the percentage of the timeshare owner population that owns one or more

contracts of a given product type. Individual owners can own contracts across multiple product types, so incidence percentages by product type will

sum to more than 100%.

****Share of timeshare ownership refers to the percentage of all contracts that each product type represents. The sum of shares for each product type

will equal 100%, however the percentage shares featured may not sum exactly due to rounding.

Number of product types owned

n OnenTwonThreenFour2012

88%

9%

2% 1%

2014

83%

13%4%

0%

BASE2014 (n=1,722)2012 (n=1,002)

nIncidence*** n Share****

60%

40%

20%

0%

Week2014

43%

51%

Week2012

34%

45%

Points2014

47%

58%

Points2012

45%46%

fractional/PRC2014

11%12%

fractional2012

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PRC2012

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Product type

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All

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Incidence of ownership**

RC I V ENT U R E S 9

For years the vacation ownership industry has targeted younger owners— and now that persistence is paying off.

Sales are up, with millennials—adults under the age of 35—composing 30 percent of the new­owner base, according to the 2014 ARDA Inter­national Foundation (AIF) Shared Vacation Ownership Study. One reason younger owners are a valuable segment for the industry is that they are more likely than other owners to be affluent: Seventy­two percent of new owners are employed full­time, and the median household income for new owners is $94,800, compared with $89,500 for all owners. New owners in general are purchasing interests with a value of almost $20,000. They are also likely to make additional purchases after their initial investment in vacation ownership.

“We’re breaking through to a new generation that has more disposable income, values long­term vacation savings and understands the benefits of shared use,” says Howard Nusbaum, president and CEO of ARDA. “We’ve at last gotten past the economic downturn, and we’re selling more profitably than before.”

What’s most exciting about the millennial segment is their potential to expand the industry even further in the future. Fifty­one percent of new

owners have children under the age of 18 residing at home, the Shared Vacation Ownership Study found. Consequently, they are likely to purchase more over time as their families continue to grow. “These are youthful, family­oriented consumers with increasing income who want to see the world,” Nusbaum says. Millennials, with and without families, are committed to traveling. As Nusbaum says, “Younger people consider experience to be far more important than objects, and we have an experiential product.”

Younger owners also have a different approach to the purchasing process that is influencing other consumers and leading to a more positive experience. “Transparency, co­creation and authenticity: These are what motivate millennials,” Nusbaum says. “Our sales process needs to be more of an interactive dialogue in which the consumer can ask the questions and control the process.” Because they thoroughly research the product beforehand, 95 percent of millennials report that they are extremely or very satisfied with the overall experience of purchasing a timeshare.

As for why millennials are purchasing, a major draw is the ability to convert to other types of vacations. “The product is already pretty flexible, and it’s going to become even more chameleon­like,” Nusbaum says.

Have Youth, Will Travel

Three of the top

reasons millennials

purchase a

timeshare:

27% To save

on future vacation

costs

27% The overall

flexibility of the

product

20% Affordable

financial terms

Source: 2014 AIF Shared Vacation Ownership Study

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These are youthful, family-oriented consumers with increasing income who want to see the world. —HOWARD NUSBAUM, president and CEO, ARDA

What did you think of the 2014 ARDA AIF Shared Vacation Ownership Study? Share your thoughts and email us at [email protected].

Timeshare

owners are

getting younger.

The average age

of new owners

who purchased

timeshares in the

past three years is

39, compared

with 51 for all

existing owners.

90% of

millennials had

some form of

interaction with

vacation ownership

before purchasing.

45% stayed at

the timeshare

where they

purchased as a

guest of the owner.

33% stayed

through a rental.

“Timeshare is morphing into vacation currency so that families can use their interest to take a cruise or transfer to a hotel and have a different kind of experience. Points are helpful because they allow people to experience timeshare their way, as opposed to a one­size­fits­all type of product.”

These changes are only the beginning. “We are a lot smarter than before,” Nusbaum says. “We’ve opened our minds to realizing that timeshare is not one specific thing but rather a solution for people who want to vacation better. I truly believe that the golden days of vacation ownership are ahead of us.”

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Industry leaders are taking a proactive, multichannel approach to reaching

out to owners and prospects. Here’s what they’re doing—right now—

to educate the world about the benefits of vacation ownership.

BY J E SSE N O ’ B R IE N

Changing Attitudes

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In a constantly changing media landscape, the public is bombarded by mixed messages about vacation ownership. But the industry is pulling together and taking control of its story by clarifying misperceptions, developing strategies for encouraging engagement and connecting better to the next generation of owners. To learn more, RCI Ventures® magazine assembled a panel of industry professionals: Gregory Crist, chairman and CEO of the National Timeshare Owners Association (NTOA); Peter Roth, vice president of marketing and communications at the American Resort Development Association (ARDA); and Phil Brojan, senior vice president of global marketing for RCI. They shared their thoughts on the path forward and discussed how they’re talking to owners and prospects on a variety of platforms to shine a brighter light on the timeshare product.

Here’s what they had to say.

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V: How would you say vacation ownership is currently depicted by the media and perceived by the public?

GC: Owners and prospects appear to be bombarded with endless noise in the media about timeshare resales. We have to continue to educate the press and help them learn how to differentiate secondary-market problems from those in the timeshare industry. Media engagement is something we are currently working on, which should less-en the reported negatives about the industry and improve the overall perception of vacation ownership. Today devel-opers are certainly more conscious of reputation manage-ment. Some have implemented public relations programs, which is improving awareness of their own brands.

PB: The largest misperceptions are about the flexibility of the product, the satisfaction rate that owners enjoy and the very nature of timeshare accommodations. These impressions persist because we haven’t yet solved how to unite and educate the masses in a memorable way. We’re beginning to take more control of our reputation as an industry, however. We’re starting conversations and creat-ing product and industry advocates who get our message across in a post-advertising world. RCI has implemented a robust social-media strategy for listening to what the world has to say about our industry, as well as an accompanying engagement plan for educating owners and prospects. We’ve also made a tremendous investment in content, media and promotion to help spread the word about vacation ownership.

PR: We’re doing a good job of putting out tactical stories and responding to questions from the media. We really need to understand what those misperceptions are and what drives them, however, and conduct solid market research so we can focus in on owner and prospect behavior. Then we can develop a comprehensive strategy for shifting how people view timeshare and moving the industry forward. By that I don’t only mean getting rid of

the negative. I also mean leveraging the positive. We have an 84 percent owner satisfaction rate; any industry would be proud of that number. If we do our job right, most of our time should be spent championing the positive.

V: What is your organization doing to promote the benefits of the timeshare product to prospects?

GC: At the NTOA we help owners sort fact from fiction. We’re on the front line, promoting the timeshare experi-ence as a fun, affordable way to vacation and encouraging owners to use their leisure time to the fullest. Communi-cating with and educating owners is our top priority. We recently partnered with several companies and industry professionals to help us design an educational series that addresses every facet of the ownership cycle: purchase, exchange, rental and resale. We’re rolling this program out to our members via our web portal and through four live workshops held across the United States that can be replayed on our website. We also spend a lot of time work-ing with media, elected officials and regulatory agencies to give them a better perspective on the various issues that affect timeshare owners. In the future we hope to share some of the consumer feedback we receive from our ASK-NTOA owner assistance program [a resource through which owners can share their thoughts and request help].

PB: In the past year alone, RCI has conducted a major sweepstakes and aired advertisements on national cable television to educate consumers about timeshare. We also created a satellite media tour that coincided with the ARDA World convention in April 2014. It was picked up and covered by various media outlets across the country. In addition, RCI’s senior vice president of business develop-ment and operations, Fiona Downing, appeared on the Lifetime network’s weekday morning show The Balancing Act to discuss the benefits of timeshare. The episode aired four times throughout June and July to a national audience

At the NTOA we help owners sort fact from fiction.

We’re on the front line, promoting the timeshare

experience as a fun, affordable way to vacation.

— GREGORY CRIST, chairman and CEO, NTOA

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Gregory Crist Chairman and CEO, National Timeshare Owners Association

In addition to fulfilling his role at the NTOA, Crist serves on the board of directors of the Canadian Resort Development Association.

Peter Roth Vice president of marketing and communications, ARDA

Roth oversees ARDA’s communications, including branding, digital, publications and public-relations initiatives.

Philip S. Brojan Senior vice president, global marketing, RCI

Brojan is responsible for RCI’s marketing strategy, including member activation, retention, e-commerce and social media.

of 78 percent female viewers and 59 percent the next generation of owners, between the ages of 18 and 44.

PR: All our initiatives help build the reputation of the industry in some direct or indirect way. Recently, we relaunched ARDA’s consumer-facing website, VacationBetter.org. We envision it as an educational tool that anyone in the industry can send to new, current and prospective customers. We’ve intentionally kept sales out of the site; there’s no branding for our developers or partners. Twitter’s actually been our primary source of traffic, and social media has allowed us to reach out not only to the timeshare industry but also to the vacation and lifestyle communities. We’re joining bigger conversations with consumers who might otherwise never have consid-ered a timeshare. Through a soft educational process, we find people who are close to our demographic profile and move them to consideration status. From there it’s up to the developers and people who are selling and servicing the product to make the conversion. Our job is to prepare them for the conversion.

V: How can others in the industry help change misperceptions and encourage engagement?

PB: Get involved! Many brands are focused on outbound publishing via social channels but are not as quick to listen, service and respond. RCI has a turnkey reputation-management and online-listening service that enables companies to take control of their online reputations: the Timeshare Online Listening Center. Two things make

M E E T T H E PA N E L

POSITIVE PROMOTION Above, from top: RCI’s Fiona Downing (right) discussed timeshare with Julie Moran (left) on an installment of Lifetime’s The Balancing Act; the RCI Timeshare Online Listening Center (TOLC) helps companies take control of their digital reputations. Below: The ASK-NTOA owner assistance program and the NTOA’s owner bill of rights help promote transparency and build trust.

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We’re starting conversations and creating

product and industry advocates who get our

message across in a post-advertising world.

— PHIL BROJAN, senior vice president of global marketing, RCI

as well as about the relationship they maintain with their developer, association or management company. The NTOA’s best practices suggest that owners remain informed and educated as resort programs and policies change over many years of ownership, and our proposed owner bill of rights is another strong body of language designed to build trust and show transparency.

PR: People engage, interact and purchase based on trust, so the industry as a whole needs to become more transparent. You always want to have a conversation with consumers rather than have them come to you with questions about something they learned without you. So become part of the conversation. We think VacationBetter.org in particular gives the industry insight into how to converse with people and why edu-cation is better than the hard sell.

V: How can the industry reach the next generation of timeshare owners?

GC: There are millions of owners who enjoy their timeshare experience right now, but behind them is a generation of potential owners who show an aversion to long-term commitments. It’s important to understand that millennials value choice at this stage in their lives. Early indications from our own Timeshare Owner-ship Study show that these new consumers would be attracted to diverse timeshare product offerings, such as a non-deeded product with a three-, five- or 10-year commitment tailored to different vacationing lifestyles. Millennials would also be open to a hybrid product under a good-better-best upgrade program that can be adjusted along with owners as they mature, have fami-lies and settle down.

TOLC unique. First, we use human analysts to verify proper sentiment and topic coding of online discussions. Natural-languages-processing algorithms found in online-listening tools often miscode conversations. Second, our enterprise-level listening technology allows us to review tremendous amounts of social data, pull in and categorize daily conversations on social channels and deliver insights to our clients in an easy and digestible manner.

We’re continually impressed with how our clients use TOLC. One used the service to orchestrate the launch of its branded social media presence. It was able to maintain its excellent online reputation while increasing the chatter surrounding the brand 50 percent every month! Today it remains one of the top-performing TOLC clients.

GC: Listen to your owners. They will tell you everything you want to know if they think you care about them. Own-ers have shared with us how important it is for them to be confident about their long-term ownership program

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CONVERSATION STARTER VacationBetter.org, created by ARDA, is a consumer-facing resource designed to educate new, current and prospective customers.

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PR: We’re actually well positioned with millennials. They get the concept. They would already rather buy 1 percent of a product and share it with other people if that’s all they’re going to use. So we just need to fine-tune the product to their comfort level. Really, millennials are only the tip of the iceberg; every generation now has to be marketed to with a very different collaborative, two-way sales process. Sometimes lifestyle is a better indicator. A millennial with a three-year-old is a lot like a baby boomer with a three-year-old but nothing at all like a single mil-lennial without kids.

PB: Tomorrow’s owners are vastly different from our past prospects in how they think of vacation and value, the way they make decisions and what flexibility means to them. Affiliates need to reshape their product by de-accentuating the commitment required to become a timeshare owner and promoting aspects that already mesh well with this generation, like the fact that vacation ownership is based on shared use and comes with tremendous flexibility.

For instance, this past summer we had a lot of success with RCI’s Win Your Dream Vacation Sweepstakes, an interactive contest with a heavy viral component and a robust integrated-media strategy behind it. Registrants received bonus entries when they engaged in various activities related to learning about vacation ownership, such as answering trivia questions that dispelled time-share myths. This high level of social engagement created a large amount of positive chatter for the industry. More than 7.5 million impressions came through the branded hashtag used during the promotion period on Twitter.

V: What improvements do you see in the future?

PR: At ARDA we’re working to provide an “air cover” of facts to drive engagement and move the industry forward.

I see future initiatives having a major impact on interac-tion and building trust through reputation.

PB: Over the next two years we’ll see dramatic improve-ments in content creation and distribution, particularly in employing user-generated content. We’ll become bet-ter storytellers as an industry, and that will help us get our message across in a way that is understood better by the next generation of owners.

GC: There are larger and more diverse hospitality com-panies in timeshare today than there were just 10 years ago. These conglomerates have raised the bar by focusing on reputation management for some time now. We hope that the payoff or social currency for early adopters in the industry will make it compelling for others to follow.

We have an 84 percent owner satisfaction

rate; any industry would be proud of that number.

If we do our job right, most of our time should be

spent championing the positive. — PETER ROTH, vice president of marketing and communications, ARDA

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R C I : 4 0 T H A N N I V E R S A R Y S W E E P S TA K E S 3

REACHING OUT The RCI® Win Your Dream Vacation Sweepstakes received more than 7.5 million impressions last year; media outlets across the country picked up RCI’s satellite media tour, which coincided with last April’s ARDA convention.

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Blaine Liljenquist founded Surfside Beach’s Plantation Resort 37 years ago with nearly

nothing. Now it has more than 500 condos and 300 employees and a legacy of delivering

joy to tens of thousands of visiting families every year. Here the CEO reflects on a 47-year

career that has soared (at times literally).

BY B R E E SP OSATO

PHOTOG R APHY BY CH RISTO PH E R SHAN E

F L Y I N G

Even if the challenge

seems insurmountable,

you have to push forward.

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ON THE MORNING

of December 22, 2011, Blaine Liljen-quist was piloting his Nanchang CJ6-A Chinese Communist Air Force fighter plane 3,000 feet above Surfside Beach, South Carolina, with his son-in-law as a passenger when the engine blew up. Undaunted, Liljenquist navigated a deadstick landing on the beach below.

Thanks to his quick thinking, the plane made it down safely and no one was harmed. It was among the more intense moments Liljenquist had come through since earning his commercial pilot’s license, in the early 1970s. It was also the kind of experience that might easily deter one from flying again; but the emergency maneuver came natu-rally to the Vietnam veteran, Purple Heart recipient and CEO of South Carolina’s Plantation Resort.

“In the face of adversity, the option of quitting simply doesn’t exist,” Liljenquist says. “Even if the challenge seems insurmountable, you have to push forward.” It is a lesson he first learned in 1968 as a youthful lieutenant in command of a Marine Corps rifle platoon in Vietnam, and it has served him well time and again. He left the Corps in 1971, but the Utah law school he hoped to attend was so flooded with applications that he did not get a spot.

What to do? Start a business.Liljenquist began selling gemstone

jewelry in Washington, D.C., with the help of his three younger brothers. What effectively started out as a stand on M Street at Wisconsin Avenue branched into successful businesses. But the 1973 oil crisis hurt Liljenquist’s operation, so he went his own way. He sold recreational lots in Virginia initially and then timeshares at Cedar Village at Beech Mountain, in North Carolina; and at Myrtle Beach’s Golden Sands Beach Club.

In 1978 Liljenquist was offered the position of broker in charge of Deer-field Realty, in Surfside Beach, South Carolina. He sold golf-course lots but soon identified another opportunity: Many people were more interested in

a place to rent for a week or two while they golfed. “We went to the owners of the golf-course lots and recom-mended they start building and renting townhouses,” Liljenquist says. “That would have been small game for these heavy hitters, so they agreed to sell and subordinate some of the land to me so I could get started.”

From there things took off. Liljenquist created his own construction company and built 180 townhomes across Deerfield Plantation. Many owners wanted to use them as vacation homes and rent them out when they weren’t in resi-dence, so a vacation rental program was established: the origins of Planta-tion Resort. Liljenquist’s company created a new condo development all of whose units would be part of Plan-tation Resort’s short-term vacation rental program. So in 1987, Liljenquist tapped his timeshare sales experience and constructed one timeshare build-ing as an experiment.

The venture paid off handsomely. Soon 315 timeshare condos were built and sold. A 16,000-square-foot indoor pool and activity and fitness centers were constructed. Later a 4,600-square-foot heated outdoor pool—the largest in Myrtle Beach at the time—was added, along with a maintenance building and sales office. The latest addition is a 300-foot lazy river and splash deck per the requests of owners and guests. “The program was immensely successful,” Liljenquist says. “The infrastructure was there: check-in, checkout, accounting, human resources, housekeeping, landscaping. We found that it made more sense to sell people a timeshare week rather than a condo. So we started selling timeshares exclusively.”

The resort has many standout features. Its robust activities roster and high standards earned it RCI Gold Crown Resort® Award status, which it maintains. The 20-acre property consists of 517 condos, 300 of which are timeshare. Of the latter,

190 are purpose-built units and 110 were purchased from private owners and con-verted to timeshare. Thirty-eight of the remaining 217 units have been bought and are being leased as vacation rentals or long-term. They will be converted to timeshare when the resort needs the in-ventory. The balance are privately owned and may be purchased if the owners put them up for sale.

Making family his top priority has enriched Liljenquist’s career. His line of work has enabled him to bring his wife and five daughters on memorable vacations everywhere from London to Hawaii—trips they couldn’t have afforded to take when the kids were young if not for his work in the industry. Moreover, he explains, it is “incredibly satisfying to give tens of thousands of families the same kinds of opportuni-ties each year.” This belief is reflected in Plantation Resort’s motto: “Vacations are essential to life. Make them great.”

Plantation Resort’s 26-year affilia-tion with RCI augments the vacation opportunities afforded its owners. “We receive letters and emails from our owners, who have exchanged into resorts all over the world,” Liljenquist says. Keeping these owners happy is fun-damental to his mission. Liljenquist’s secret? “Under-promise and over-deliver. When the owner’s expectations are met or exceeded, everyone is happy.”

Asked how to maintain this high degree of satisfaction, Liljenquist points to the details: It’s important to have a friendly, helpful staff and well-kept and clean units in which everything is in working order. “Whatever a guest has been promised, they should receive 100 percent or more,” he says, “and any issue that might crop up should be resolved instantaneously by polite staff.” This year the resort will streamline its reservation system, making the front desk and check-in process even more efficient for guests.

A winning formula starts with the resort’s DNA. Plantation Resort’s 300-plus staff members, Liljenquist says, are “treated with courtesy and

REACHING NEW HEIGHTS Opposite, from top: Liljenquist greets a guest at Plantation Resort (one of his favorite parts of the job); Liljenquist with his Nanchang CJ6-A Chinese Communist Air Force fighter plane; a view of the resort, located in Surfside Beach, South Carolina, less than four miles south of Myrtle Beach.

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respect and given a clear mission state-ment, know exactly what’s expected of them and have their performance measured.” To further those ends, the resort is upgrading its employee education program. Instead of provid-ing one-off training, Plantation Resort will move the process online so that new and existing employees can log in and take training modules, track their progress, and pose and receive answers to questions. And with an eye to the future, the resort cultivates leadership by supporting people who are capable of stepping into management roles.

It’s little surprise, then, that Planta-tion Resort has low turnover. “Many of our people have been here 15 to 30 years,” Liljenquist says. “In the seven-ties the first person I hired, Rodney Brown, was only a week out of college, and his desk was a door supported by two saw horses because we truly started with nothing. Today he’s the president of Plantation Resort.” It’s a joy to come to work, Liljenquist says, and talk to employees, owners and RCI exchange families. “Recently I was speaking with an employee who said that he loves it here because he gets to live and work in a destination

other people save up all year to come to for a week or two,” he says. “We’re in an industry that brings real joy into people’s lives.”

Next on Liljenquist’s agenda is finding creative ways to engage pros-pects. To that end Plantation Resort is offering more marketing tours and has embraced social media, including Facebook, Instagram, Twitter and, most recently, Pinterest, says Dave Nelson, executive vice president of Plantation Resort and Liljenquist’s son-in-law. There are plans to create a YouTube channel for the resort to showcase exclusive videos. Liljenquist is also focused on selling its remaining inventory and expanding to other loca-tions in the Myrtle Beach area.

Asked about his vision for the industry’s future, Liljenquist responds with the characteristic determination that has defined his career thus far. “A large percentage of people in the United States would greatly benefit from vacation ownership,” he explains. “We’ve just scratched the surface.”

plantationresort.com

We’re in an industry that brings real joy into people’s lives.

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Canoeing at Vermilion Lakes, in Banff. Opposite, from top: An aerial view of Vancouver, in British Columbia; horseback riding in Lake Louise.

CANADA’S NEXT

CHAPTERThe world’s second-largest country demands attention.

With an ever-larger pool of prospects ready to visit and a focus on innovation, Canada is poised to capitalize on its most powerful asset:

a diverse natural landscape that caters to vacationers of all kinds.

BY B R E E SP OSATO

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RUGGED snowcapped mountains, pristine beaches, old-growth forests: Canada is naturally spectacular. More and more the country is redefining its cities as so-phisticated and cosmopolitan while staying true to its roots. Add to that its stability, easy-to-grasp currency and accessibility from major U.S. hubs and you’ve got a vacation desti-nation with irresistible appeal.

It’s an exciting time for travel in Canada. Active trips—hiking, biking, golf—have always been a draw. Winter skiing tops the list, thanks to world-class spots, like British Columbia’s Whistler; Alberta’s Canmore, Banff and Lake Louise areas; and Mont-Tremblant and Mont Sainte-Anne, both in Quebec.

But the country is undergoing changes that are expanding the scope of vacations. “Most compelling for today’s prime timeshare prospects—younger families—are urban-based resorts that offer outdoor activities and culinary experiences as well as culture and the arts,” says Jon Zwickel, president and CEO of the Canadian Resort Development Association.

Major cities, such as Vancouver,

Victoria and Toronto, which are largely insulated from seasonality, al-low access to nature without requiring one to explore it. Currently exchange opportunities are limited, but they are increasingly popular. “There’s op-portunity here,” RCI vice president of business development Bob McGrath says. “The cost of visiting these places has skyrocketed, so inventory access for timeshare owners and club mem-bers should be a sales catalyst.”

Skyline Vacation Club, which just celebrated its first anniversary, has capitalized on this rising demand. Skyline offers four strategic locations: in Toronto, the Cosmopolitan Hotel and Pantages Hotel and Spa; and north of the city, Horseshoe Valley Resort and Deerhurst Resort, which

offer golf and ski programs. With a portfolio geared to year-round recre-ation and urban-based activities, plus a user-friendly points system, the club is positioned for growth.

Indeed, the potential for develop-ment in Canada is notable. Despite a global economy in low gear, the country saw 16.6 million tourists in 2013, up 2 percent over the year before, driven largely by more visits from Asia. Core higher-volume, stable markets to Canada include Australia, France, Germany and the U.K., while emerging markets include Brazil, India and China. And in 2013 the Canadian government announced a $42 million package to improve global visa services; the stimulus is expected to fuel this market. Also driving growth

CANADA AT A GLANCE

16.6 million tourists (2013)

150,000 new airline

seats, resulting in increased air capacity (2013)

24% increase in visitors aged 24 and under

3.9% predicted growth

in tourism’s contribution to

GDP in 2014

Sources: World Travel & Tourism report;

CTC 2013 Annual Report

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is increased air capacity. In 2013 Canada added more than 150,000 seats, to serve mostly China, France and Mexico. These new visitors are spending more and are younger, the Canadian Tourism Commission reports: Visitors aged 24 and under surged 24 percent.

All told, this is a promising recipe for timeshare in Canada, where the industry already has a solid, if limited, foundation. RCI established a pres-ence in the country in 1979 with the affiliation of the Harbour Inn & Resort Club, in Ontario. Today there are more than 100 RCI® affiliated resorts in Canada, most of them in British Columbia and Ontario. (See “Time-share Hot Spots,” on page 23, for the full breakdown.)

But obstacles unique to the Canadian market have slowed more-recent growth. One is the reception of timeshare by key Canadian stakehold-ers, Zwickel says. It can be difficult to find investors who have a firm enough grasp of the product to make a significant financial commitment; and cumbersome legislation, McGrath says, tends to lump timeshare with

A large segment of today’s market prefers not to own in perpetuity. This group wants the vacation ownership product but also wants an end date to the program. —MICHAEL SNEYD, CEO, Skyline Vacation Club

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other real estate products. As a result, taking the time to educate these stakeholders is crucial.

According to McGrath, strict pri-vacy laws, recent anti-spam legisla-tion and other restrictive marketing requirements also pose challenges. At Skyline those challenges mainly affect efforts to get prospects to the sales table. “With the National Do Not Call List, and the new email privacy laws enacted in Canada,” Skyline CEO Michael Sneyd says, “it is more difficult to reach and properly message potential buyers.” Other obstacles, McGrath says, are develop-ers’ reliance on existing customer upgrade and reload sales, as opposed to expanding first-generation sales,

and the aging infrastructure of existing resorts.

But efforts are being made to turn things around. “Developers are trying to maintain their base of dues-paying members through challenging times and retool their marketing strat-egies,” McGrath says. “RCI continues to develop innovative products and services to assist new Canadian devel-opers getting into the market as well as support our existing clients’ sales and marketing efforts.”

There’s plenty of evidence that encourages optimism too. Canada fared very well during the recession, in fact, because of its banking system. Travel is now a priority after being deferred for years, Zwickel says, and

WIDE APPEAL Deerhurst Resort, an iconic getaway in Muskoka, in central Ontario. Opposite:

Lions Gate Bridge, in Vancouver, in British Columbia.

CANADA AT A GLANCE

Predicted growth in

international travelers

to Canada in 2014:

5.3% Expected growth

in business-travel

spending in Canada

in 2014:

15.1% Forecasted increase

in jobs generated by

travel and tourism

in 2014:

3% Increase in travelers

from China in 2013:

24.2%, spending

$603.2m

Sources: World Travel & Tourism report;

CTC 2013 Annual Report

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Skyline offers a 50-year right-to-use and is developing a much shorter-term product. It’s an innovative ap-proach designed to allow it to address several segments of the market. And management recently rolled out an option for families who want more than vacation ownership: At the time of purchase, a new membership may include a Skyline Communities Credit Option, which permits the member to use their vacation ownership pur-chase as credit toward the purchase of Skyline real estate opportunities; it has been well received.

Skyline is just one example of the nimble Canadian developers that, Zwickel says, made it through the re-cession, are offering creative products and are responsive to the market. The forecast for the next five years is that the number of RCI affiliates and mem-bers who own in Canada will hold steady. Growth over the following five years is predicted.

The future of Canadian shared ownership, McGrath says, is in con-tinued consolidation and alliances among existing resorts, in vacation clubs’ selling a flexible-use product and in the potential reemergence of fractional ownership in destinations where second-home real estate prices are or have remained high.

For the next generation of buyers, that means ease of use and of ex-change and providing shorter-term commitments. And smarter products with a wider appeal can only enhance the country’s natural charisma— because Canada as a backdrop speaks for itself.

a large portion of the population has income to spend on vacation ownership.

Regarding development, Zwickel continues, there is great potential for existing developers to acquire quality inventory at low cost from self-managed properties that are get-ting older—those that may not have the manpower or expertise to do their own sales.

Some of the most promising prospects can be younger families or adults under 35 who are look-ing for shorter-term flexibility and ease of use, McGrath says. Deeded ownership for life or leases of 30-plus years may no longer speak to these consumers, who are interested in having more options and flexibility at a lower cost.

Timeshare is no longer a legacy-type product and today must instead compete with TripAdvisor, Expedia and Travelocity as a travel option. And young families are becoming more aware of the benefits of timeshare over hotel rooms, McGrath says. Access to a full kitchen, washer and dryer, and several bedrooms and bathrooms is attractive. All this means that shorter-term (five- to 15-year) products may be more suited to the changing demographic, interests and lifestyles of the new timeshare buyer.

Skyline Vacation Club is taking these lessons seriously. “A large seg-ment of today’s market prefers not to own in perpetuity. This group wants the vacation ownership product but also wants an end date to the program,” Sneyd says. In response P

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1. British Columbia Snowcapped mountains,

dramatic fjords and waters

teeming with whales and

sea lions are a hit with active

types, while Vancouver’s

buzzing neighborhoods add

urban appeal to the region.

2. Alberta Sprawling natural beauty

is the draw here: Standout

spots include Banff, Lake

Louise, the badlands around

Drumheller and the bison-

dotted lands of Waterton

Lakes National Park.

TIMESHARE HOT SPOTS

Endless forests and coastlines, and up-and-coming cities

with inventive food scenes: Canada’s diversity of vacation

experiences is enormous. RCI is affiliated with more than

100 resorts in five regions.

3. Manitoba Possessing a quieter appeal

than its neighbor Ontario, the

naturally striking province of

Manitoba is largely composed

of gently rolling fields of

wildflowers interspersed with

little towns.

4. Ontario Nearly 40 percent of

Canada’s population lives

here, and for good reason:

The entertainment scene in

Toronto rivals that of Montreal,

and nature—there are 250,000

lakes—is never far away.

5. Quebec The province offers a distinctly

European vibe, a flourishing

art scene and fantastic ski

resorts, Mont-Tremblant

being the crown jewel of the

Laurentian Mountains.

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Today your prospects can easily tune out traditional marketing. But the good news is, there’s a

better approach out there: “youtility.” “Youtility is massively useful free information that creates

long-term trust and kinship between a company and its customers,” Jay Baer, author of Youtility:

Why Smart Marketing Is About Help Not Hype, explains. The even better news is, by sharing helpful

personalized content—in every channel—brands can insert themselves into a customer’s purchasing

process in way they may not have had the opportunity to before. Pairing the right content with the

right channel at the right time in the purchasing process is key: It could mean the difference

between a conversion—and an exit. Here are five ways “youtility” can help develop a loyal customer

following for vacation ownership brands and build the foundation of a long-term relationship.

TECHNOLOGY & MARKETING

The Power of Being HelpfulAs consumers continue to change the ways they make purchases, it’s crucial for brands to be proactive in helping them throughout their decision-making process. What can you do to help close the sale? Provide them with useful and educational information—everywhere.

BY J E SSE N O ’ B R IE N

ILLUSTR ATIO NS BY ALISO N SE IFFE R

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The Digital 2015–2017 RCI® Directory of Affiliated Resorts

The next generation of travel inspiration. Coming to tablets this winter.

Family

ReunionSumm

er Vacation

Anniversary

RCI and related marks are registered trademarks and/or service marks in the United States and internationally.© 2015 RCI, LLC. All rights reserved. Printed in the U.S.A.

Because your vacation means the world to us ®

DIRECTORY OF

AFFILIATED RESORTS

2015

–2017 D

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4 / See the big picture When brands first learn about “youtility,” Baer says, they often compartmentalize it as a subset of marketing instead of employ it as an overarching strategy. “Brands need to look at everything they do through the lens of the customer,” Ciccone adds. “All areas of the organization need to align to meet the customer’s needs.” For example, create a tiered loyalty program that consumers can gain access to only through social media and that can drive their behavior. When a fan tweets positively about your brand, Baer says, reward them with special content available only to social media advocates.

5 / Focus the message “Micro content and video is taking off,” Baer says. “It’s not enough to just be useful; now you need to be useful in bite-sized chunks.” Think about how to make quick videos that are easily consumed and shared, even when a customer is traveling with just a smartphone. To shorten content, stay focused on what’s relevant to the message you’re trying to get across. And remember, Baer says, that ultimately social media is a tool and not an objective: “The goal is to be good at business because of social media. Measure business-level outcomes, not social media outcomes. You can’t pay your employees with re-tweets.”

Jay Baer is the author

of the New York

Times best-selling

book Youtility: Why

Smart Marketing Is

About Help Not Hype

and founder of the

digital-marketing

advisory firm

Convince & Convert.

Christine Ciccone is

vice president of

online marketing at

RCI, leading digital

strategy and

increasing the

transparency of

members’ digital

experiences.

1 / Sell smarter Consumers can now research a product online and choose the brand that appeals most to them. When you provide them with helpful content and comprehensive information up-front, it will immediately differentiate your product—and ultimately help you close the sale later. “Consumers are very much in control of the messages to which they are exposed and the companies they choose to support,” Baer says. “The best way to break through is to create marketing that is so useful that people would pay for it if you asked them to do so.”

2 / Start helping Baer outlines three methods for building long-term relationships with customers by helping them. Self-serve information, in which they proactively answer questions; radical transparency, in which they are completely open with customers; and real-time relevancy, in which brands use location, circumstance, behavior and other information to provide consumers with the best resource at a given moment. “Create relevant mobile moments for customers based on where they are in their travel life cycle,” says Christine Ciccone, vice president of online marketing at RCI. “Leverage email, SMS and push notifications through geo-location capabilities or iBeacons tied to an app to reach customers with valuable information and foster loyalty.” For example, send a destination’s weather and transit information before an owner leaves for vacation. Later, when the owner arrives at his destination, provide details and reviews of local restaurants and activities.

3 / Be social Social media is a convenient way for consumers to reach brands with their questions. At the same time, social media allows brands to learn about customers by talking to them. “The best way to figure out how to be helpful is to have real interactions with your customers,” Baer says. “Insights don’t come from a spreadsheet; they come from a conversation.” The brands with the most social media success go beyond simply publishing outbound messages and actually interact with consumers. “Driving engagement requires a commitment to listen, foster dialogue and respond to feedback with specific actions,” Ciccone says.

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We’re working hard to tightly integrate the existing RCI website with the RCI Help channels so our members know that assis-tance is always one click away.

RCI® Help: One Click Away

With the exciting launch of the new and improved RCI Help,

a multichannel subscribing membership support center, RCI

is providing members with comprehensive and consistent

digital assistance. On Twitter members can receive support by

tweeting @RCIHelp, and those with questions requiring in-depth

responses may receive personal videos from the companion

YouTube account. The videos will walk the customers through

the answers step by step and also be a resource for members

with similar questions. Jayson Smith, RCI’s director of digital

marketing, shares the latest about the initiative.

What was the thinking behind the launch of RCI Help?

Many of our members have long-standing relationships with the RCI Vacation Guides who work in our call centers, and this new experience in the digital space will provide a parallel experience.

What has member response been?

It’s quickly gaining traction with our members. We’re covering a variety of topics that resonate with different members in different ways: weather-related travel updates, direct Q&As, how-tos and more.

What is the RCI Help approach to Twitter?

In addition to listening and responding to membership-specific questions, we’re using Twitter to take an active role in trending topics affecting vacationing as a whole as well as to assist consumers in their vacation decisions whenever possible.

What’s next for RCI Help?

This February the free digital version

of the 2015–2017 RCI® Directory of

Affiliated Resorts will make its debut,

and with it RCI® subscribing members

will soon have access to a comprehen-

sive vacation planning experience on

their tablets. RCI Ventures® magazine

spoke with Brian Bruno, publisher of

the Directory as well as RCI Ventures®

and Endless Vacation® magazines,

about the upcoming launch and what

it means for members as well as

RCI® affiliated resorts.

V: Why did RCI create a digital version of the traditional print RCI Directory of Affiliated Resorts?BB: The Directory has been a reli-

able resource for our members for

decades, showcasing the breadth

and depth of our network of affiliated

resorts. To better serve the evolving

media preferences of our members,

we wanted to complement this

existing RCI member experience by

translating it to the digital realm.

V: How does the experience change?BB: Going digital opens up so many

possibilities for how we can showcase

nearly 4,500 affiliated resorts to our

members. It’s as useful as it is beauti-

ful, with a clean, modern design and

intuitive interface. With just a few

taps, members can immerse them-

selves in resorts around the world.

V: What about timeliness?BB: This platform enables us to

provide more up-to-date information

to our members to better aid them

in planning their vacations.

V: What’s next for the digital Directory?BB: Our launch in February is just

the beginning. Once we lay the

foundation, there’s plenty more

to come throughout the year that

will delight, and I think surprise,

members and affiliates alike.

The 2015–2017 RCI® Directory of Affiliated Resorts Goes Digital

Putting Help in Action RCI is working to be even more helpful to your owners with two new initiatives: the digital 2015–2017 RCI® Directory of Affiliated Resorts and RCI® Help.

COMING SOON:

@ Social Help, an enhanced service tier

from RCI’s Timeshare Online Listening Center (TOLC) offering

expanded services for social community management

and response.

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AFFILIATE RESERVATIONS STAFF

AFFILIATE PROPERTY MANAGEMENT SYSTEM

RCI WEB SERVER

INDUSTRY SOLUTIONS

Streamline Your SystemsIntroducing RCI® Connect, a tool that can help maximize the performance of your property management system.

Thanks to the recent debut of the RCI® Connect platform, affiliated resorts now have in their arsenal another tool designed to help save time and money.

“One of our core efforts at RCI is to help our affiliates lower the total operating cost of their resorts,” says Chris Parren, senior vice pres ­ident of product development for RCI. “We developed the RCI Connect platform to eliminate redundant, time­wasting activities and to give our affiliates faster access to RCI transaction data.”

RCI collaborated closely with several property management system (PMS) companies, including Resort Data Processing (RDP), Merlin and TimeShareWare. Most recently, RCI reached an agreement with timeshare software company SPI to join the RCI Connect platform. The ultimate result of their combined efforts? Increased operational efficiency and accuracy, which can lead to overall improve ments in processes.

RCI® CONNECT AT A GLANCE

What it is: A web-based interface that

directly accepts certain day-to-day

transactional information from RCI

What it includes: • Inbound data (RCI’s inbound

information is loaded into your property

management reservation system)

• Ability to request and verify deposit

data (for RCI Weeks® program only)

• Ability to view, update and verify

ownership data (for RCI Weeks®

program only)

Why choose it: • Saves time

• Helps reduce errors

• Streamlines processes

• Eliminates the manual entry of

RCI-related information

• Timely information is available from

a single source

Affiliated resorts can use RCI Connect to save time, help reduce errors and streamline their data importing by eliminating the manual entry of RCI­related transaction information. Resorts can directly accept certain day­to­day RCI business transactions, including inbound­guest lists, requests and verification of deposits for RCI Weeks® subscribing members, and verification and updates of ownership data.

“This is a great opportunity for us to continue to add value to the TimeShareWare products we offer our clients,” Mike Norton, director of customer relations for TimeShareWare, says. “We are excited to incorporate use of the RCI Connect platform and expand the benefits to the RCI affiliate process as part of our goal to continuously improve the business processes of our customers.”

Learn more about what RCI Connect can

do for you: Contact your RCI Account Executive today.

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INDUSTRY SOLUTIONS

Superior ShowcasesMake a lasting impression with enhanced RCI® Resort Showcase packages.

First impressions matter, especially online, and are crucial to a successful integrated digital­marketing strategy. RCI Resort Showcase has always provided affiliates with dynamic, engaging and shareable videos of resorts through its powerful multi media content. Now affiliates can choose from five new RCI Resort Showcase packages to best meet the needs of their specific resorts, whether that means growing rental traffic, getting owners more engaged or generating buzz about sales and marketing efforts.

These packages and à la carte services have been optimized by RCI in response to affiliate feedback and to keep pace with changing consumer trends in online­ video viewing habits. What hasn’t changed, however, is the fundamental benefits of showcasing your resort on RCI® TV, one of the industry’s leading online television networks, which include:

• Lead generation through open­market channels

• Increased RCI exchange and rental bookings

• Millions of additional web views through RCI.com and YouTube

• Optimized distribution channels to promote better search visibility and generate additional web traffic

New enhancements of the RCI Resort Showcase packages include:

• More flexibility, with five packages and seven à la carte services.

• One­minute drill­down videos that communicate essential resort information to consumer audiences, who are increasingly accustomed to shorter videos.

• Refreshes/reshoots of existing Platinum, Gold and Silver Packages. Ideal for resorts that have made brand or aesthetic changes since their first shoot, a refresh offers script rewriting, re­voicing, reediting and more.

With so many customizable options, RCI Showcase can help ensure that the first online impress ion your resort makes is a lasting one.

For complete package descriptions, à la carte services and specific prices and to learn even more about the RCI Resort Showcase packages, contact your RCI Account Executive or visit RCIAffiliates.com.

RCI® RESORT SHOWCASE PACKAGE OPTIONS*

A variety of packages can help ensure

that the particular needs of your resort

are met. Here’s an overview of just some

of the items each package offers.

Platinum Plus Package: • Three to three-and-a-half days of HD

filming with three-person crew

• One-minute drill-down videos

• Resort overview video with custom

script and narration

• Content plays on RCI® TV

• RCI Presenter touchscreen wall tour

Platinum Package: • Two to two-and-a-half days of HD

filming with three-person crew

• Resort overview video with custom

script and narration

• Content plays on RCI® TV

• RCI Presenter touchscreen wall tour

Gold Package: • Two to two-and-a-half days of HD

filming with two-person crew

• Resort overview music video

• One-minute drill-down videos

Bronze Plus Package: • One to one-and-a-half days of HD

filming with two-person crew

• Resort overview music video

Bronze Package: • One to one-and-a-half days of HD

filming with two-person crew

• Ten still photos with touch-up

• Custom rental video: 30-second

version of music video with call

to action

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* Not all packages contain content inclusion on RCI TV.

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Making Waves The latest innovation from the Sunwing Travel Group, TravelSmart VIP Vacations, is changing the game in Mexico and the Caribbean with its 360-degree approach to vacation exchange.

TR AVELSMART VIP VACATIONS

LUIS LARA Managing director TravelSmart VIP Vacations

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TRAVELSMART VIP VACATIONS IS MAKING an impact in Mexico and the Caribbean. The club has grown rapidly since it launched, two years ago, to complement the Canadian-based Sunwing Travel Group portfolio, which includes an airline, tour operators in the United States and Canada and a transportation company. It now includes 12 resorts spanning the Dominican Republic, Jamaica, Cuba and the Bahamas, and its two newest resorts, in Cancún, Mexico; and Saint Lucia, just opened their doors this past December.

The club aims to generate a loyal member base as it ag-gressively expands. Although members can use SmartPoints to travel for one night or weekend, most stay seven nights. Members are mainly young families of four: adults between 40 and 50 years old with kids or teens. About 43.15 percent live in the United States, with Canadians following, at 29.22 percent. Other source markets are Latin America and the Caribbean (21.25 percent) and Europe (6.38 percent).

The numbers continue to paint a positive picture: Seventy percent of those who recently became members return to the resort where they purchased, 15 percent travel to another resort or destination within the club, and the remaining 15 percent tap the travel benefits offered by Sunwing or the Sunwing-owned tour operator, Vacation Express.

In 2013 TravelSmart VIP Vacations affiliated with RCI with two properties, the Royalton Punta Cana, in the Dominican Republic; and the Royalton White Sands, in Jamaica. The proposition, explains Luis Lara, managing director of TravelSmart VIP Vacations, is a strong one: “Our members have a one-stop solution with RCI. They can pay with their SmartPoints for their exchange without having to deposit a week, and reserve an RCI affiliated resort seamlessly. Once members have been with the club longer, we expect an increase in exchange.”

We provide outstanding services and always strive to exceed our members’ expectations. — LUIS LARA, managing director, TravelSmart VIP Vacations

Memories Grand Bahama, on Grand Bahama Island.

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Cup, to name a few things.” All the scenic properties are equipped with the latest technology, plus restaurants and bars, pools, water parks, casinos, spas and room service.

Differentiating each vacation experience is just as important. The club manages three all-inclusive brands: Royalton, Memories and CHIC. Royalton Resorts are designed for the sophisticated traveler. For example, the 1,200-room Royalton property in Cancún has 54 unit config urations and three sections: Family, Diamond Club (with services such as personal butlers) and the adults-only, luxe Hideaway. Memories Resorts provide families with value and comfortable accommodations and facilities and include such acc ess ible activities as Splash World, a fun water park. CHIC is an adults-only resort that delivers a relaxing, romantic experience with personal service. “We are constantly improv ing our club product with feedback from our members and steadily refining our sales and marketing processes and materials,” Lara says, “with a positive impact on our members’ satisfaction and our collection performance.”

Power of personalization Service is a cornerstone of the TravelSmart experience. Regardless

Trump card As part of Sunwing, TravelSmart is able to offer a uniquely sophisticated product. In addition to the club’s resorts, members have access to 800 properties via Sunwing and Vacation Express, exclusive airfare rates and hundreds of package options. This suite of benefits is a fundamental part of the plan to foster repeat guests as Sunwing Group expands its reach in the Caribbean, Mexico and Central America. So far 15 percent of members (many of them Canadians, because of the total integration of travel services with Sunwing Airlines) have used these services, an encouraging figure given the relative youth of the club. The most popular perks, Lara says, are members-only lodging rates and packages at Sunwing, Vacation Express and Sunwing-owned tour operator Signature Vacations’ resorts, and discounted flights with Sunwing Airlines.

Fine-tuned product “Each of our resorts has been developed with the target market in mind,” Lara says. “Guests can enjoy the local culture and cuisine, but they also have the option to indulge in what they would at home: steak houses, gourmet hamburgers; the Stanley Cup, the Super Bowl and the World

of their membership level, all owners have free entry to the resort-based Diamond Club. That means access to exclusive lounges with premium drinks, dedicated concierge service, room upgrades, a pillow menu, late checkout and early check-in, discounted pricing of on-site products and services, and access to VIP beach areas. “Our VIP members receive special treatment at our airline, buses, excursions and resorts,” Lara says. “We provide outstanding services and always strive to exceed our members’ expectations.”

Just the beginning Plenty of services are to come. “We have made a lot of progress since we started our first operation, in Bávaro, at an old resort that was about to be renovated,” Lara says. “At the moment we have sales operations in six resorts in four countries: Jamaica, the Dominican Republic, the Bahamas, and Mexico. Four of those resorts have been completely renovated and expanded and the brand new one in Cancún and the one in Uvero Alto in the Dominican Republic just recently opened this past December.” Both these properties—the 1,200-room Royalton Riviera Cancún and the adults-only 323- room-and-suite CHIC, in Uvero Alto— are generating excitement. P

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SMART VACATIONS From left: Royalton White Sands, in Jamaica’s Montego Bay; Royalton Punta Cana, in Bávaro, in the Dominican Republic.

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This spring TravelSmart will also kick off the renovation and expansion of luxury resorts on St. Lucia and in Negril, Jamaica. On beautiful St. Lucia, the 351-room Smugglers Cove Resort & Spa will offer seven pools (including an adults-only pool and a separate kids’ pool), a fitness center with modern equipment, five tennis courts, a kids’ club and a teens’ club, conference facilities and a spa and beauty center. And in Jamaica the to-be-renovated Grand Lido Negril will more than double, from 210 units to 450.

The club has also analyzed acquisition opportunities on the Mexican Pacific Riviera (Puerto Vallarta and Playa del Carmen), in Central America (Costa Rica) and on other Caribbean islands (Aruba, St. Martin and Antigua). While expansion is the goal, quality is paramount. “Despite our young age,” Lara says, “we have very quickly reached industry performance standards in our sales operations, particularly in the Dominican Republic, based on one of the most sophisticated and flexible products in the market.”

tsvipclub.com

THE TRAVELSMART PORTFOLIO

1. Royalton Punta Cana, Bávaro, Dominican Republic*

2. Memories Splash, Punta Cana, Dominican Republic*

3. CHIC, Resort & Spa, by Royalton, Punta Cana, Dominican Republic

4. Memories Varadero, Varadero, Cuba

5. Royalton Hicacos Varadero, Varadero, Cuba

6. Memories Caribe Beach, Cayo Coco, Cuba

7. Memories Flamenco Beach, Jardines del Rey, Caya Coco, Cuba

8. Memories Paraiso Azul Beach, Cayo Santa Maria, Cuba

9. Royalton Cayo Santa Maria, Cayo Santa Maria, Cuba

10. Royalton White Sands, Montego Bay, Jamaica*

11. Grand Lido Negril, Negril, Jamaica*

12. Memories Grand Bahama, Grand Bahama Island, Freeport, Bahamas*

13. Royalton Riviera Cancún, Cancún, Mexico

14. Smugglers Cove Resort & Spa, St. Lucia*

TU R KS & C AI COS

DO M I N I C AN R E P U B LI C

HAIT I

G UAD E LO U P E

SAI NT LU CIA

DO M I N I C A

MARTI N IQ U E

JAMAI C A

CU BA

TH E BAHAMA S

VALUE-ADDS

Under the Sunwing umbrella, TravelSmart offers members a suite of

travel benefits including:

• All-inclusive flight packages

• All-inclusive cruise packages

• Travel packages that include airfare, accommodations and car rental

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* Depicts resorts affiliated with RCI.

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Après-ski Appeal With stunning scenery and a proactive approach to surpassing owners’ expectations, The Cliff Club charms both in season and out.BY J E SSE N O ’ B R IE N

ILLUSTR ATION BY FR ANCE SCO BONG IOR NI

THE CLIFF CLUB

EACH YEAR, MORE THAN 500 INCHES OF LIGHT, POWDERY

snow falls over Utah’s Little Cottonwood Canyon and the property at the heart of the canyon: The Cliff Club. An inviting and elegant retreat among the glacier-sculpted Wasatch Mountains, the club is located within The Cliff Lodge at Snowbird Ski & Summer Resort. The area is famous for having the longest ski season in Utah, but a year-round appreciation of the environment, sensitivity to owners’ preferences and commitment to vacation flex-ibility are what has made The Cliff Club a success.

The resort’s appeal extends to those besides local skiing enthusiasts. Owners are in all age groups and come from all over the world. Many have had memberships since the inception of the resort. Most winter-season owners occupy their weeks to ski, while off-season owners utilize more exchange time.

Consistently providing good, friendly service that keeps this variety of owners coming back again and again is no small feat. In fact, it’s an order as tall as the mountains surrounding the club, and part of the shared mission statement of The Cliff Club and Snowbird: “Making Memories to Match Our Mountain.” The Cliff Club’s dedication to outstanding service has paid off: It has received the RCI Gold Crown Resort® Award continuously since 1996.

Extending vacation flexibilityWhile owners can explore Snowbird’s 2,500 acres or Salt Lake City, a 45-minute drive away, there’s as much to do indoors as on the mountains. In addition to 54 two-bedroom, three-bath luxury condominiums, The Cliff Club is home to the world-class Cliff Spa, several award-winning restaurants, cocktail lounges and an array of on-site shops. Those behind The Cliff Club believe in providing plenty of options, an attitude that has helped both the club’s exchange rate and its year-round bookings thrive.

The Cliff Club has developed several programs that offer more choices for when to vacation. A split-week option allows owners to occupy their condominium during two separate periods within their ownership season: one reservation Friday to Monday, and another Monday to Friday. Bonus Time motivates owners to take extra vacations by letting them stay at The Cliff Club for half the advertised rate if they book 72 hours before arrival. The resort also runs special rates for summer owners that can be booked in advance, which lets owners take additional vacation time without waiting for the 72-hour window.

Even the units themselves permit a flexible vacation experience. All are triple lockouts, so each condominium

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SUN AND SNOW From top: A room at The Cliff Club; sunset at Snowbird Ski & Summer Resort. Opposite, clockwise from top left: A field of wildflowers in the Wasatch Mountains; a bull moose grazes in Utah; aspens in the mountains; skiing at Snowbird.

essential to gaining feedback and insight into what owners want.

In the past few years people have been looking even harder for good value for their vacation dollars. The Cliff Club delivers that value by taking advantage of its connection to the larger resort complex of Snowbird. Owners receive discounts on restaurants and can attend Snowbird’s fun, free warm-weather programs, such as Family Flicks, every Friday night, and the Cool Air concert series, on Saturday. The Cliff Club has also created its own program of free and low-cost summer

activities, including hiking, crafts and cooking classes, specifically for owners and exchange guests.

Regular improvements further affirm The Cliff Club’s value. As part of a recent renovation of the kitchens in all the units, stainless steel app liances and granite countertops were install ed. Additional upgrades are on the way, including new beds and an improved wireless Internet system. Next year Snowbird will open a restaurant, retail and event space on top of 11,000-foot Hidden Peak, giving guests a 360-degree view of the Wasatch Mountains.

can be divided into three separate studios and accommodate a total of 10 guests. This alterability encourages guests to bring various combinations of family and friends to the resort so more people can discover The Cliff Club. Alternatively, owners can maximize their timeshare within the same one-week use by occupying one module and releasing another to an exchange company and the third to the Snowbird rental program. The range of options makes it easy to sample summer at The Cliff Club without committing to a full week of off-season ownership.

Owners firstFlexible offerings inspire year-round visits, but it’s The Cliff Club’s sensitivity to owners’ expectations that persuades them to return in every season. The resort’s leadership appreciates feedback from guests and monitors comments daily out of a conviction that staying in touch with their expectations is the key to making their experience a memorable one. Many of The Cliff Club’s repeat guests are RCI® subscribing members, so RCI comment-card reports are

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Protecting the planet The Cliff Club also shares the eco-friendly policies of Snowbird, which is dedicated to protecting its corner of the Rockies so future generations can create vacation memories. Snowbird has led numerous environmental projects, which include improving wildlife habitats and cleaning up the heavy metals contaminating the American Fork River. For its efforts Snowbird has received the National Ski Areas Association’s 2007 Golden Eagle award for overall environmental excellence, the Environmental Protection Agency’s Environmental Achievement award and the State of Utah’s 2007 Earth Day award.

Snowbird has also implemented initiatives for making the resort complex more eco-friendly. Every building participates in a recycling program, and a plan for installing LED light sources in The Cliff Club is in the works. These efforts not only help preserve the mountains that draw in visitors but also often save money by making the resort more efficient. Snowbird’s cogeneration power facility, in The Cliff Lodge, produces 48 percent of the resort’s power in winter and 80 percent in summer. Exhaust from that plant is converted to steam, which is then piped throughout the resort to heat The Cliff Lodge’s rooms, pools, restaurants and meeting rooms.

By protecting the environment and understanding its owners’ wishes, The Cliff Club gracefully fulfills the vision co-founder Dick Bass had for Snowbird when it was being built in 1970: “A year-round resort which respects and comple-ments the beauty and inspiration of this natural setting.”

Reduced electricity consumption by

1,460,500 kilowatt hours per year with

motor upgrades

and controls for

building heaters

Cut power consumption

67% by replacing

energy-wasting

incandescent

bulbs and T12

fluorescent

fixtures with

new CFLs and

premium T8s

Plants approximately

1,500 native species

seedlings every

summer as part

of a re-vegetation

effort with

TreeUtah

Developed environmental education out-reach programs

including the

Disabled Skier/

Wilderness Experi-

ences, Barrier Free

Nature Trail, Hawk

Watch, Stargazer,

Discover Your

Forest, Jr. Ranger

Program and

Wildflower Festival

GREEN EFFORTS AT SNOWBIRD THAT MAKE A DIFFERENCE

thecliffclub.net

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International ExpansionFairmont Heritage Place is showing no signs of slowing down as it continues to add to a diverse roster of resorts.

FAIRMONT HERITAGE PL ACE

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WHEN RCI VENTURES® MAGAZINE ASKED RICK HOUSTON TO DESCRIBE the locations of the properties he oversees for Fairmont Heritage Place as its general manager of operations, he responded with a very specific term: unrivaled destinations. As Fairmont Heritage Place has eight resorts spanning three continents, Houston’s description of its portfolio is anything but hyperbole.

Its international presence is undeniable. At the Zimbali private residence, in South Africa, one has only to stroll the grounds to take in sweeping views of the Indian Ocean. The Palm resort property is located on Dubai’s Palm Jumeirah, a man-made island in the shape of a palm tree, surrounded by upscale restaurants and boutiques. Perpetual North American favorites are also represented, including ski mecca Telluride, Colorado; and classic beach escape Acapulco, Mexico. The newest addition, Fairmont Heritage Place, Mayakoba, will open in Mexico’s Playa del Carmen later this spring. (For the full Fairmont Heritage Place portfolio, turn to page 40.) “All our properties are extremely unique in location, yet they are all unified with the service levels we offer to all owners,” Houston says. “Our resort teams focus on creating a memorable experience for every owner, and will tailor their stay to accomplish this goal.”

An affiliate with The Registry Collection®, RCI’s luxury exchange program, since 2010, Fairmont Heritage Place has created a solid foundation on which to build since opening its first property, in 2003. “We visualized the material benefits that residential properties would contribute to both our hotels’ performance and the overall growth of the company,” Houston says. “Creating ownership opportunities in highly sought-after real estate markets added consistent incremental revenue streams to our hotel properties and a foundation for increm-ental expansion of our portfolio.”

In our conversation, Houston explained how Fairmont Heritage Place is aligned with the overall vision of its parent company, FRHI Hotels & Resorts, to continue to seek opportunities to be a global hospitality leader and offer best-in-class vacation experiences to owners.

A view of Dubai’s skyline from Fairmont

Heritage Place, The Palm.

RICK HOUSTONGeneral manager, operationsFairmont Heritage Place

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V: The first Fairmont Heritage Place resort opened in Acapulco in 2003. How has the brand evolved in the subsequent decade?

RH: While others have shied away from fractional ownership development opportunities, Fairmont Heritage Place continued expanding. Since our inception we have added approximately a property a year. Every new property is a significant milestone, as each possesses its own character based on its location. Being an industry forerunner has allowed us to learn from our experience and craft products that meet the needs of individual markets and ownership groups. Nurturing strong ownership relations provides us with happy owners who are our best salespeople. By continuing to add value to our owner benefit programs, we are constantly enhancing our owners’ experiences and creating a competitive advantage for FRHI Hotels & Resorts and our owners.

V: Tell us about your owners.

RH: We have a varied group of owners at our properties. Although the majority of our owners are retired couples who like to bring the extended family to their homes, we see young

families as well. Our properties are based on a usage plan of seven-day [week-long] stays, and each has a slightly different fractional plan based on the specific needs of the location they’re in. We have properties where owners reserve three weeks a year and properties where owners reserve up to five weeks a year.

V: How does your ownership vary with such diverse resort locations?

RH: Several of our properties are composed of owners who live within driving distance of their fractional homes. For example, many owners at Fairmont Heritage Place, Ghirardelli Square live in the San Francisco Bay area, while our property in Dubai has an international mix of owners.

V: What benefits does your loyalty program, the Fairmont President’s Club, provide for your owners?

RH: As real estate owners, our Fairmont Heritage Place owners have been invited to join the exclusive “invitation only” level of our guest loyalty program, Fairmont President’s Club Circle Level. This distinction means that all our owners travel as VIPs to Fairmont, Swissôtel Hotels & Resorts and Raffles Hotels & Resorts P

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around the world. Benefits our owners receive in the Club Circle Level include complimentary upgrades to the best available suite in the hotel (excluding the presidential suite), offers of preferred rates when trav el ing and the designation of VIP. Other in-hotel benefits are compli-mentary services, such as Wi-Fi, access to golf clubs, bicycles and more.

V: Why did Fairmont Heritage Place affiliate with RCI’s The Registry Collection® program?

RH: Our decision was based on several factors, one being that our ownership was clear that they wanted to have access to a large range of locations worldwide to exchange into. We were familiar with the scope and global reputation of The Registry Collection as the industry leader. Our affiliation has assisted in the sales process to all purchasers, and its flexibility of use and wonderful locations add value to new and existing owners.

V: Nightly rentals are now available at certain properties. What are the advantages of a rental program?

RH: Half our properties currently offer a rental program to owners. This decision is made property by property.

DIVERSE OPTIONS Opposite, from top: Poolside at Fairmont Heritage Place, Acapulco Diamante, in Acapulco, Mexico; Fairmont Heritage Place, Zimbali, in South Africa, lies alongside the Indian Ocean; Fairmont Heritage Place, Franz Klammer Lodge, in Telluride, Colorado, is a perennial ski destination.

40 Q1 201 5

1. United States Fairmont Heritage Place, El Corazon de Santa Fe Santa Fe, New Mexico, U.S.A.

Fairmont Heritage Place, Franz Klammer Lodge Telluride, Colorado, U.S.A.

Fairmont Heritage Place, Ghirardelli Square San Francisco, California, U.S.A.

Fairmont Heritage Place, Inspiration Miramar Beach, Florida, U.S.A.

2. Mexico Fairmont Heritage Place, Acapulco Diamante Acapulco, Mexico

Fairmont Heritage Place, Mayakoba Playa del Carmen, Mexico

3. South Africa Fairmont Heritage Place, Zimbali South Africa

4. United Arab Emirates Fairmont Heritage Place, The Palm Dubai, United Arab Emirates

THE FAIRMONT HERITAGE PLACE PORTFOLIO

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Of the properties participating with a rental program, we see the majority of owners using the property, with approximately 80 percent being owner usage and approximately 20 percent used by rental guests. A great advantage of the rental program is the ability of owners to offset their annual dues, giving them more flexibility and creat ing added value.

V: What are the most effective strategies for filling rental inventory in off-season months?

RH: We see peak rental seasons at all our properties. For example, winter ski weeks in Telluride are extremely desirable, as is Holy Week at our property in Acapulco. Low-season months certainly require creativity and fresh ideas. We offer package escapes to locations, and we partner with exclusive travel agents who are familiar with our product and realize the value of traveling to a residential property, even in the off-season. This area of rental requires constant fine-tuning to achieve results.

V: What’s next for Fairmont Heritage Place?

RH: We are excited about our newest addition to the Fairmont Heritage Place portfolio, which is scheduled to open this spring: Fairmont Heritage Place, Mayakoba. It will be located in the heart of Mexico’s Riviera Maya as part of Mayakoba, one of the most prestigious resort developments in the Mexican Caribbean. This project will consist of ultra-luxurious, fully furnished three- and four-bedroom residences that provide unmatched service and amenities as well as access to a host of leisure and retail facilities. We also plan to continue expanding our portfolio in regions such as the Asia-Pacific and the Caribbean and throughout North America.

fairmont.com/heritage-place

SNAPSHOT P.O.V.

Fairmont Heritage

Place is now in

its 11th year of

operation, and

along with our

constant growth

we are also con-

tinuing to renew

management and

affiliation agree-

ments throughout

our portfolio.

These renewals

express our own-

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in the brand and

the value created

for ownership by

Fairmont Heritage

Place. As a

company we are

excited for the

future of fractional

ownership and

also to continue

our relationship

with The Registry

Collection®

program.

—RICK HOUSTON, General manager, operations, Fairmont Heritage Place

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Southern Charm Amber Vacation Club remains true to its core values and is prepared to take business to the next level.BY B R E E SP OSATO

ILLUSTR ATIO N BY K E L SE Y GAR RIT Y R ILE Y

AMBER VACATION CLUB

THERE IS MUCH TO CELEBRATE AS THE AMBER GROUP, WHICH MANAGES

Amber Vacation Club and Amber Resort Management, marks its 10th anniversary. At the forefront of this celebration are Amber Vacation Club’s five resorts—two in Florida, another three in Tennessee—which put their own spin on the kind of classic American escape that can feel so elusive these days.

In Florida, Casa del Mar Resort fronts on soft-sand Ormond Beach, while Alhambra Villas, in Kissimmee, rise from 47,000 acres of countryside dotted with palmetto trees and sparkling lakes. Over in Tennessee, Sunrise Ridge Resort, where the group’s sales team is based, is nestled in the foothills of the Great Smoky Mountains. In Gatlinburg, Tennessee, Tree Tops Resort sits on the banks of the crystal-clear Roaring Fork Creek. Meanwhile Oakmont Resort is in close proximity of the heart of Pigeon Forge, Tennessee, and with that affords easy access to activities like a dinner theater and go-karts. Each property offers a roster of activities, everything from sailing and golfing to horseback riding and spa treatments.

While most of Amber Vacation Club’s loyal guests come from the Midwest and the South, the resort group also attracts visitors from other parts of the world, says L. Nicolas Gray, RRP, chief operating officer of Amber Group, Inc. Most stay for an average of 4.5 days. Amber Vacation Club’s affiliation with RCI has been a boon, allowing guests to enjoy vacations closer to home and at nearly 4,500 resorts. The group’s resort occupancy consists mostly of owners who use the Amber Vacation Club points exchange program, and inbound RCI exchanges. The balance comes from rentals by owners and non-owners.

L. NICOLAS GRAYRRP, chief operating officer Amber Group, Inc.

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Keeping things simpleAmber Vacation Club is an internal exchange with a flexible points-based currency that is used in reserving single or several days. That in itself may not be unique, Gray explains, but the simplicity of its rules is. Except for guest reservations, there are no fees beyond the low annual member-ship fee.

That’s just one of the ways the club puts members first. “With a central reservation and customer service department, we believe that the vacation experience begins in the planning,” Gray says. “We endeavor to make the process as stress free as possible and have combined the two departments to ensure that should a problem arise, the same attendants are empowered to resolve any issues quickly and efficiently.”

Beyond that, those who manage the club believe that the winning formula is straightforward: clean, well-maintained and well-appointed accommodations that highlight recreation options.

Creating a cycle of happiness The key to effective customer service—creating a realistic expectation at the point of sale and then delivering a product that meets or exceeds that expectation—may be a familiar one, Gray says. But it is a central creed of Amber Vacation Club. The club relies on two main member-facing communication tools: its website, ambervacations .com; and a biannual newsletter, “Club Talk.”

To keep members happy, the club focuses on feedback, communication and follow-through when it comes to members’ comments. The club’s employees are thoroughly educated and provided with the tools necessary to enable them to support these strategies.

Employees are just as much a priority for the club. Most important, the company leadership cultivates a positive work environment with an emphasis on education, empower-ment and, of course, a good product. And while there are limits to what P

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SOUTHERN EXPOSURESSunshine Ridge, in Pigeon Forge, Tennessee, surrounded by the Great Smoky Mountains. Opposite, clockwise from top left: An aerial view of Casa del Mar, on Ormond Beach, Florida; the pool at Alhambra Villas, in Kissimmee, Florida; a mill in Pigeon Forge, Tennessee; the Daytona Interna-tional Speedway, in Daytona Beach, Florida; a warm welcome at Alhambra Villas.

AMBER VACATION CLUB AT A GLANCE

• Established in 1994

• Five resorts in Florida and Tennessee

• Studios, one- and two-bedroom units,

and cottages

• All are RCI Points® affiliated resorts

• Enhances the owner experience with

in-room amenities, from coffeemakers

and dishwashers to TVs and DVD players

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RECREATION HIGHLIGHTS Here, a sample of the activities

guests can enjoy at each Amber

Vacation Club resort.

I N T E N N E S S E E :

1. Tree Tops 3 poolside spas, access to nearby golf

courses, horseback riding

2. Sunrise Ridge 3 pools, an indoor-outdoor spa

and fireplaces

3. Oakmont Resort Dining in downtown Pigeon Forge,

go-karts, outlet shopping

I N F LO R I DA :

4. Casa del Mar Nearby Daytona and its Speedway

5. Alhambra Villas Access to boating, sailing and

waterskiing

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small companies can achieve in terms of economic benefits, Amber Vacation Club offers employees an excellent health insurance plan at only 25 percent of the premium cost.

Not surprisingly, turnover at Amber Vacation Club is quite low. With five years of service behind him, Gray is still considered one of the newcomers. “We are fortunate to have little turnover throughout the company and at the resort level,” Gray says.

Growing a legacy For some time Amber Vacation Club has not actively been in the sales business, so prospecting has not been a concern. During this time the club has not atrophied but actually grown. What’s more, unlike other legacy resorts, which may experience sizable inventory-related problems, the club has a relationship with a large, very active developer that, quarterly and at a preset purchase price, acquires any defaulted-on and foreclosed inventory. The

turnaround for the resale is typically less than a few months.

That said, Amber Vacation Club recognizes the importance of refocusing its sales efforts to expand the club effectively. “Our best development opportunity exists at Sunrise Ridge,” Gray says, “with approximately 75 units remaining to be built to complete the resort.” In addition, the leadership seeks to increase the benefits of the club and add travel locations through affiliation and sales agreements. This expansion will be driven by demand, not geography. The next five years will be about growth through association sales, affiliation and property acquisition.

But always with an eye to the things that matter most: “As a company,” Gray says, “we are proud to remain profitable and focused on our members and associations.”

ambervacations.com

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RCI ® AFFILIATED RESORT NEWS

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Club Meliá at Palacio de Isora, in Tenerife, Canary Islands, Spain.

Below: The second annual Splash-N-Dash one-kilometer fun

run sponsored by Silverleaf Resorts.

Meliá Hotels International Earns GreenLeaders StatusTripAdvisor’s GreenLeaders has recognized 67 Meliá Hotels International properties in Europe. GreenLeaders honors hotels that meet TripAdvisor’s Sustainability Policy standards. It was developed through collaboration with national and international industry experts, such as those involved in the U.N. Environment Programme and the U.S. Environmental Protection Agency’s Energy Star program.

Silverleaf Resorts Raises Money for Christel House This past summer Silverleaf Resorts collected more than $33,000 in donations for Christel House, a charity that provides K–12 education for impoverished children. Silverleaf co-sponsored RCI’s Christel House Golf tourn ament, in Branson, Missouri; hosted its own miniature-golf opens at various Silverleaf resorts; and held the second annual Silverleaf Splash-N-Dash one-kilometer fun run.

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RC I V ENT U R E S 47

RCI Weeks® program

Akropol Termal Beypazari, Ankara, Turkey

Astoria Boracay Aklan, Philippines

Bellini Suites at Presidio, Lakefront Muntinlupa City, Philippines

Casa Divina Oaxaca, Mexico

Chongqing Alexander Hotel Chongqing, China

Corbett Wild Iris Spa And Resort Jim Corbett National Park, Nainital, Uttarakhand, India

Crosswaters Ecolodge & Spa Guangdong, China

Dreams Las Mareas Costa Rica by UVC Guanacaste, Costa Rica

Dreams Sands Cancun Resort & Spa by UVC Cancún, Quintana Roo, Mexico

Elysium Vacation Club Taksim Istanbul, Turkey

Grand Palladium Imbassai Resort & Spa Mata de São João, Brazil

Hotel Coco Beach Playas del Coco, Guanacaste, Costa Rica

Hotel Decameron Los Delfines Isla San Andrés, Colombia

Hotel Fiesta Siesta Playa del Carmen, Quintana Roo, Mexico

Modern Saraylar Avsallar, Antalya, Turkey

Red Mansion Shanghai, China

Salinas Park Resort Salinópolis, Pará, Brazil

Secrets Playa Mujeres Golf & Spa Resort by UVC Isla Mujeres, Quintana Roo, Mexico

Shangri-La Tusifu Resort Shangri-La, Yunnan, China

The Golden Tusk Jim Corbett National Park, Nainital, Uttarakhand, India

The Residences at Lakeview Country Bodmin, England

TravelSmart Vacation Club/ Memories Grand Bahama Beach & Casino Resort Freeport, Bahamas

Vistacay Hotel Cheonjiyeon Seogwipo, Jeju, South Korea

Vistacay Hotel Seogwipo Seogwipo, Jeju, South Korea

Xishuangbanna Resort Xishuangbanna, Yunnan, China

Yalova Thermal Palace Yalova, Turkey

Yu Papagayo Sardinal, Costa Rica

Zoëtry Villa Rolandi Isla Mujeres by UVC Isla Mujeres, Quintana Roo, Mexico

RCI Points® program

Parliament House Resort Orlando, Florida, U.S.A.

The Registry Collection® program

The Lodges at Kentisbury Grange Kentisbury, England

RECENT RCI ® AFFILIATED RESORTS*

* Due to space limitations and other considerations, this list might not include all resorts that have recently affiliated with RCI.

Do you have news to share? Email it to rciventuresna @rci.com.

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Karma St. Martin’s, in England.

Club Meliá at Palacio de Isora in Tenerife, Canary Islands, Spain.

Karma Royal Group Enters UKKarma Royal Group has opened its first luxury resort in the United Kingdom. Karma St. Martin’s is the only hotel on the tiny island of St. Martin’s, off Cornwall, England. Thanks to the island’s microclimate, the resort’s 30 rooms are surrounded by subtropical plants usually found in Africa or southern Europe. This move follows Karma Royal Group’s recent acquisitions in Germany, Greece and France.

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Grand Palladium Imbassai Resort & Spa, in Mata de São João, Brazil.

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Simmons® Hospitality Group pricing for RCI Affiliated Resorts queen size Beautyrest® Recharge® Sutherland™ Plush

mattress sets from only $300*

*All products and services are manufactured and/or provided solely by Simmons® Hospitality Bedding and not by RCI, its parent and/or affiliates. Neither RCI nor its parent or affiliates are responsible for the accuracy or completeness of any statements made in this advertisement, the con-tent of this advertisement (including the text representations and illustrations) or any material on a website to which the advertisement provides

a link or a reference. Please refer to the applicable brand specifications for your property prior to purchasing products.

PRODUCTS MAY NOT BE AVAILABLE IN ALL REGIONS

Page 54: RCI Ventures North America and Canada Q1 2015

A FINAL THOUGHT

2015 Financial Forecast

A focus on flexibility and options.MS: Developers are expanding their hotel and club operations, adding products and developing more customer-focused flexibility. Years ago timeshare was sold in weeklong increments. The industry has evolved and become more flexible, with club-based programs assigning point values and allowing guests to stay at several resorts or break up those weeks. Those developers that made it through the financial crisis will continue to get stronger, add products and expand.

A move to modernize.JC: We believe that Capital One’s Vacation Ownership Survey at the ARDA World convention is a good barometer for the industry. Based on direct feedback from industry professionals, the 2014 edition found that the trend toward renovating and modernizing existing properties would gain the most momentum. That finding has been spot-on.

An emphasis on affordability.JC: There’s an increasing interest in affordable developments, and that trend will continue.

New growth opportunities. MS: The secondary resale market remains a concern, and there are also a limited number of new developers. It would be a positive sign for the industry to see new developers and increased new opportunities.

Consumer confidence on the rise. JC: Consumer confidence in the

timeshare industry appears quite strong, and we expect

that to continue. The developers we finance and know well report that sales volume is improving year over year. The uptick in sales and receivables performance is a reasonable indicator that consumer confidence remains strong.

A stronger future. MS: In 2015 the vacation

ownership market will continue to grow, with more new

developments and more interest in new construction. Developer liquidity and the outlook for timeshare receivables are both strong. We’re interested in hearing about new developments and new opportunities, and we would like to help those developers in any way we can.

Three years ago Capital One Bank’s commercial and specialty finance division created its Vacation Ownership Group. It was a crucial time: Having just weathered the brunt of the

economic recession, the industry had proved its resilience and was ready to continue growing.

“We believed that the industry would benefit from the participation of one of the largest banks in the country, which is also capable of delivering an expansive suite of products and

services not commonly available,” executive vice president Michael Szwajkowski says. “The industry has benefited from the engagement of a committed, stable and significant new source of capital which works diligently with its clients to tailor essential financing

solutions,” James Casey , senior vice president and managing director, adds.

RCI Ventures® magazine spoke with Szwajkowski and Casey about what to expect in 2015. Here’s what you should know.

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www.gevrilgroup.com

ALARMAUTOM TICTHE WORLD’S FIRST

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Page 56: RCI Ventures North America and Canada Q1 2015

Eternity just entered a new time zone.

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