RCI Ventures, December 2011 - EU edition

Howard Nusbaum: ‘We want to makesure emerging markets in Asia don’tmake the same mistakes as we didin the US and Europe.’ PAGE 19

Ashraf El Zarqa: ‘Successcomes from experience,creativity and investing inpeople.’ PAGE 22

Steve Pentland: ‘Young peopledon’t buy what their Dad bought.They don’t want to own ‘stuff’,they want to use it.’ PAGE 26

FORWARD PLANNING

SKISTAR LOOKS BEYOND

THE PISTE TO CREATE A

YEAR-ROUND PRODUCT HITTING NEW PEAKS

THE INDUSTRY’S TOP

PLAYERS SHARE

THEIR THOUGHTS ON

TIMESHARE IN 2012

WHAT CHALLENGES

WILL YOU FACE?

THE

YEAR

AHEAD RCI INVESTS TO BOOST

SERVICE TO MEMBERS

AND AFFILIATES

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www.rciventures.com

For over 35 years we’ve been helping our affi liates achieve results that grow their business. With 3.8 million members and more than 4,000 affi liated resorts worldwide, RCI continues to be the exchange provider of choice for some of the largest and most successful developers in the vacation ownership industry. Backed by industry-shaping innovations and service that includes some of the best products, the best technologies, and the best people, RCI is uniquely positioned to help you achieve your goals in shared ownership.

For more information, e-mail [email protected] or call +44 (0) 1536 314651.

RCI and related marks are registered trademarks and/or service marksin the United States and internationally. All rights reserved. ©2011 RCI, LLC. All rights reserved. Printed in the U.S.A.

“Our working relationship with RCI, stretching back more than 25 years, has been one of mutual benefi t and support with both companies sharing a dynamic and far-sighted approach, which has been instrumental in shaping the industry and taking it forward. As the largest international exchange facilitator, RCI is integral to our sales adding a further dimension to owning with Club La Costa. Our two companies continue to work together to increase the number and diversity of quality resorts across Europe, and beyond, to serve an expanding membership.”

Roy PeiresDeveloper and Chairman, Club La Costa Resorts & HotelsRCI Affi liate since 1986

For long-term growth, take thelong-term view

www.clublacosta.com

2011 has been a year of innovation forRCI. Our long-term investment in newtechnologies and RCI serviceenhancements has come to fruitionwith the launch of several exciting newprogrammes.

Earlier in the year we augmented RCITV Resort Showcasewith the launch of RCI Presenter. Both of these products aredesigned with non-members in mind as engaging sales tools tosupport our affiliated developers. This was followed by the newtier RCI Platinum Membership, which elevates the timeshareownership experience by introducing a suite of lifestyle and holidaybenefits exclusive to both RCI Points and Weeks members.Although a member benefit, we like to think of it as a ‘win’ for ourdevelopers too, as RCI Platinum should help to make thetimeshare ownership proposition more attractive in the sales office.

And there’s more… turn to page 6 of this issue to learn aboutan enhanced search tool for RCI Points members and a newresort information system on rci.com to improve the service toour developers and members by beautifully showcasing RCI-affiliated resorts. We have also launched a new onlinerecommendation tool which uses intelligent technology to matchRCI members to the right holiday for them making holidayplanning an easier and more rewarding experience.

We’re not the only ones thinking outside the box. Twenty-fiveleading industry experts share the key elements for success asthey see it in the context of today’s challenging market conditionsin our lead feature, The Year Ahead, on page 10. ARDA too is doingthings differently in 2012 with its first global conference, introducedby ARDA CEO and President Howard Nusbaum on page 19.

Two of our affiliated developers are looking to maximise theROI on their assets by making them work in more ways than one.On page 16 Barnsdale Country Club makes the most of its vastand spectacular grounds, while on page 24 relatively new industryentrant SkiStar devises a business plan to capitalise on its resort’sindividuality as a winter ski destination, combined with arepurposing of its assets to bring guests in during the summermonths. Meanwhile, in our Final Call article we learn howGenerator Presenter 2012 (GP12) speaks to a new generation oftimeshare buyers.

The coming year will no doubt bring with it many challengesfor all of us which will, in turn, drive change. And that’s the trulygreat thing about our industry – it has evolved to survive the last45 years and will continue to identify opportunities in thechallenges that lie ahead and to grow.

As ever, I hope you find inspiration and ideas in this issue ofRCI Ventures and that you visit rciventures.com regularly to sharebest industry practice and success stories throughout 2012.

I’d like to take this opportunity to wish each of you a healthy,happy and prosperous New Year!

RCI Ventures, December 2011 | 3

CONTENTS EDITORIAL

VENTURES is published by RCI, a trading name of RCI Europe, Kettering Parkway, Kettering, Northants, NN156EY, United Kingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: [email protected] EDITOR:Helen Foster. CONTRIBUTING EDITOR: Steve Adams. DESIGN: Richard Blaney. PRODUCTION: Claire Williamsand Lorraine Karabin. ADVERTISING SALES: Media Line Ltd. Tel: +44 (0)870 250 8701. PRINTING: CKN Print Ltd.Original articles and contributions may be reproduced or transmitted only with written permission from thepublisher. All facts and figures stated in the articles contained in this publication are provided by the contributorsand no responsibility is accepted by RCI Europe for content not created by them, nor for any losses or otherconsequences resulting from advertisements or other material appearing in this publication. You are advised tomake your own enquiries and conduct further research if necessary. RCI Europe reserves the right to accept orrefuse advertisements at its discretion without assigning any reason for doing so. © RCI Europe 2011.

Sincerely,Gordon Gurnik

President, RCI

VENTURES MAGAZINE SERVING RCI’S MARKETS IN EUROPE, DECEMBER 2011 THE MIDDLE EAST, AFRICA AND INDIA

Cover: Getty images

4 MARKET OUTLOOKA news and views round-up from Europe and around the world

6 RCI INSIDEThe latest news for RCI affiliates, including a variety of new benefits formembers and new additions to the exchange network

10 COVER STORY – THE YEAR AHEADKey industry figures share their views on timeshare and key elements forsuccess in 2012

16 MIXED BLESSINGBarnsdale Hall Hotel reaps the benefits of its timeshare component duringthe economic downturn

19 WORLD IN ACTIONThe American Resort Development Association (ARDA) is aiming to unitethe industry and go for growth

22 RECIPE FOR SUCCESSASHRAF EL ZARQA of Emirates Vacation Club is planning for expansion inthe Middle East

24 MOVING MOUNTAINSHow Scandinavian holiday ownership company SkiStar is developing a year-round product

26 FINAL CALL – SOMETHING MY DAD WOULD BUY!It’s time to redefine our product to attract younger buyers, says STEVE PENTLAND of Group Impact and Generator Systems

Cover: Getty Images

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4 | RCI Ventures, December 2011

TAKE TEE ON THE THAMES

Marketoutlook

The European leg of the 2012 Christel House Open Golf tournament will take place atBadgemore Park Golf Club, Henley-on-Thames, England, on 11 June 2012. The event marks the 10thAnniversary of the annual competition, which raises funds for Christel House, a charity established in1998 by RCI founder Christel DeHaan to help children worldwide break the cycle of poverty.

The event will see teams of four players taking part in an 18-hole golf tournament and the daywill be rounded off with an industry dinner and prize giving ceremony. Robin Mills, chairman of theOrganising Committee, said: “It’s shaping up to be a very special event. Sponsorship so far has beenphenomenal and we have people sponsoring individual holes alongside our major sponsors. Thisyear we are also making the dinner an open event for the industry, a chance for people to gettogether in aid of a wonderful cause, even if you don’t play golf.”■ For more details contact Amanda White at [email protected]

EVENT:

KEEP UP WITH VENTURES ONLINE

Don’t forget you can visit ourwebsite at www.rciventures.comfor all the latest news, as well asexpert commentary, analysis andviews on all aspects of theshared-holiday ownershipindustry. This includes timeshareand mixed-use models tofractionals and wholly-ownedresidential leisure properties.

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

HOLIDAY CLUB MAKES A REAL SPLASH

A stunning water park isone of the many luxuryamenities at HolidayClub Saimaa in Finland

Holiday Club Resorts,Europe’s largest timesharecompany, is celebrating its 25thanniversary with the opening of a new resort and theannouncement of excellentfinancial results and plans forexpansion.

The Finland-based companyand RCI affiliate, which operates32 resorts and 1,300 holidayhomes, recently opened its latestproperty, Holiday Club Saimaa,the largest travel businessventure in the Nordic countries.

The mixed-use project will bebased around a 222-room spahotel in the Rauha district ofLappeenranta in Finland. On-site

features include a water park withtreatment areas, restaurants, anda multi-purpose 4,000-capacity icearena. The €200 million resort isalso set to feature 300 timeshareapartments and an 18-hole golfcourse with driving range.

The spa hotel officially openedin November and the resort isexpected to be completed by2020, by which time it will have8,000 beds.

To coincide with the opening,Holiday Club Resorts announcedits financial results, with turnovershowing a growth of €25 million(37 per cent) over the previousyear. During the financial year2010–2011, the group, which

employs 588 people, recorded aturnover of €93.4m, with profitbefore taxes of €9.8m.

Vesa Tengman, managingdirector of Holiday Club Resorts,said: “During the past operatingperiod we made a number ofsignificant investments. Weacquired the operations of fivespa hotels in Finland, fivetimeshare locations in theCanaries, reorganised our spahotel arrangement in Åre,Sweden, and constructed holidayhomes all over Finland.

“These investments are a partof our growth strategy in whichHoliday Club will become theleading weekly European

timeshare company and theleading Nordic operator in thefields of holiday housing andtourism. We aim to continue ourgrowth in both the domestic andinternational markets.”

Tengman said the companyhas ambitious plans for the nextfive years, including theconstruction of villas, holidayhomes and timeshare flats in itsSaariselkä, Ylläs, Kuusamo,Katinkulta and Saimaa resorts.Renovation and expansion work istaking place across its portfolio ofresorts, with new locations alsobeing sought and plans to havefrom eight to ten spa hotels inoperation within five years.

INDUSTRY:

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The Registry Collection iscelebrating a hugely successful presence atthe international Property Investor ShowOPP Live, at which a number of its keyaffiliates won top awards.

The event, which took place in London inOctober, was hosted by Overseas PropertyProfessionals (OPP) group and attracteddelegates who were both industryprofessionals and consumers. Matt Holmes,business development manager for TheRegistry Collection in Europe, presented ontwo of the most popular panel sessions.

He said: “Both sessions were fascinatingand attending events such as these ishugely beneficial for The Registry Collectionand fractional property developers ingeneral, as OPP is so influential in theinternational property sector.”

The following affiliates of The RegistryCollection also picked up prizes at the OPPAwards for Excellence 2011:● Absolute World Group – Silver Award forBest Developer Worldwide● Dubrovnik Sun Gardens – Gold Award forBest Developer Southern Europe● Freedom Bay St Lucia – Silver Award forBest Luxury Developer● Freedom Bay St Lucia – Best FractionalScheme● The Residences at The BaglioniMarrakech – Best Marketing Campaign.

“We were delighted that so many of our

affiliated developers received prestigiousawards,” said Gregg Anderson, global vicepresident of The Registry Collection.

“The awards are well deserved andthis success reflects the overall quality ofthe programme and reaffirms ourcommitment to affiliate the best resortdevelopments and the most highlyreputed developers.”

With the 2012 Olympic Games nowonly months away, the UK tourist industry isgearing up for a major influx of internationalvisitors.

The games take place from 27 July to 12 August, followed by the Paralympic Gamesfrom 29 August to 9 September. The benefitsfor the UK tourist industry are likely to gobeyond these dates, with reports showing thatvisitors for the games are likely to spend twiceas long in the country as other tourists.

Indeed, the UK is expected to outperformglobal tourism growth by 50 per cent, bothbefore and in the four years after the games,with a potential 6.6 million extra visitors in theeight years from 2007-2016.

Apart from London, other Olympic venuecities expected to benefit include Cardiff,Coventry, Glasgow, Manchester, Newcastle,Weymouth and Windsor.

Patricia Yates, strategy and communicationsdirector for VisitBritain, said the Games werethe perfect opportunity to showcase Britain tonew audiences around the world. She said:“Our GREAT campaign will be launching in keyglobal cities, raising the aspiration to travel toBritain and backed up by GREAT offers fromour commercial partners to encouragevisitors to come now.”


DIARY DATES

SUCCESSFUL PROPERTY CONFERENCEFOR THE REGISTRY COLLECTION

UK TOURISM STRIKESGOLD WITH OLYMPICS

Matt Holmes, business development manager for The Registry Collection in Europe, left,accepts the Best Developer Worldwide Silver Award on behalf of Absolute World Group fromGeoff Hadwick, editorial director of OPP Media

The following dates and venues forsome of the industry’s leading eventsin 2012 have now been unveiled.

Check out the relevant websites formore information and benefit from anyEarly Bird booking offers.■ Fractional Summit Europe 2012February 27-28, Marriott GrosvenorSquare London, UK.www.fractionallife.com■ TATOC 2012 Conference9-11 March, Park Royal Hotel, Stretton,Warrington, UK. www.tatoc.co.uk■ ARDA World Convention1-5 April, Venetian Resort Hotel &Casino, Las Vegas, US. www.arda.org■ RDO3 European Industry Conference23-25 September, Pestana ChelseaBridge Hotel & Spa, London, UK.www.rdo.org

EVENT:

INDUSTRY:

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www.theregistrycollection.com/


RCI is investing heavily in technological developmentsto continually enhance its member benefits and, at thesame time, support sales and help boost occupancylevels at its affiliated resorts.

RCInside

SHAPING THE FUTURE

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

The latest technology innovationfrom RCI is making it even easierand more convenient for RCIPoints members to search onlinefor their ideal exchange holidays.

Enhanced Search for RCIPoints is a new user-friendly,intuitive tool designed to simplifyand streamline the searchprocess so that Points memberscan focus on finding the resortthat best meets their needs.

RCI Points members havealways been able to selectvacations from all available RCI-affiliated resorts – both RCIPoints and RCI Weeks resorts.To find all the vacations availableto them, however, they previouslyneeded to perform two separatesearches – one for availablePoints resorts and one forWeeks resorts. Newenhancements to RCI.com meanthat Points members can nowconduct one search for allavailable RCI-affiliated resorts,as well as benefit from moredevelopments that further easethe process of online searching.

RCI president Gordon Gurniksaid: “As technology continues toevolve – and as our membersbecome even more tech savvy –we’re able to provide more toolsand enhanced features thatbetter meet the needs andexpectations of today’s travellers.

“We’re committed toresponding to our members’feedback and to continually

assessing the tools and contentwe’re providing to ensure thebest experience possible for ourmembers.”

In addition to the single-search functionality, RCI Pointsmembers can enjoy otherenhancements when theysearch, including the ability tosee all holidays that areimmediately available. The newtool also ensures that RCI Pointsmembers always receive resultsin their search – searches willnever return a ‘no result’response. “Technology is nolonger a barrier,” Gurnik added.“It’s become the gateway thatleads to the full potential of anRCI subscribing membership,the gateway to a world full ofgreat vacations.”

Like many modern travellers,RCI members have expressedthe desire to have access torobust multimedia content,including photographs, floorplans, videos, detailedinformation about resort andunit amenities, informationabout local activities, holidayexperiences and more.

To meet these expectations,RCI has invested millions ofeuros in enhanced technologyto gather and present detailedcontent about all its affiliatedresorts. The initiative’s firststage was implemented in

2009, when RCI launched asystem for collecting andstoring high-qualityphotographs and videos of itsaffiliated resort properties.

Now RCI is launching a newresort information system thatwill act as a content-management tool to store,maintain and present detailedaffiliated resort informationacross all user channels. Thenew system’s benefits include:● Amenities and activities – nolonger limited to 41 static datapoints – are fully representedfor each resort.

RCI is committed to promoting its services and also invests significantly in theeducation of its members, using both online and direct mail campaigns to ensurethey make the most of their timeshare ownership.

PICTURE THISNew resort information system improvesservice to affiliated resorts and RCI members.

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● Information can bediscretely categorised andpresented to members andRCI Holiday Guides in clean,simple formats (replacingthe three ‘free-form’ textfields currently used tostore and present all otherresort information beyondthe 41 static amenitylistings)● Improved resortdescriptions – severalhundred have beenprofessionally written toprovide ‘experiential’descriptions so that memberscan imagine themselves onholiday more vividly.

Gurnik said: “Memberswant relevant, accurate,timely and reliable travelinformation, and our affiliateswant their properties to bebeautifully showcased toprospective guests.

“We need a system thatlets us deploy detailedinformation in a variety ofchannels, but always in aneasy-to-use format. This newtool lets us do all that andmore.”

Marketing statistics showthat RCI members are fourtimes more likely to confirm

resortsfeaturingfive or morephotographsthan thosewith none.Rising click-through

rates from RCITV’s ResortShowcase videos alsodemonstrate that membersuse the high-definition videosto help them plan holidays.

This information affirmsthat a resort with robustonline content appeals moreto members, and the more

The launch of RCI’s new online resort recommendation tool is beingsupported by educationals designed to encourage members to considervisiting new destinations and resorts.

PLAYING WITH MATCHESRCI’s new online recommendation tool usesintelligent technology to match RCI membersto the right holiday for them.

RCI can help in presentingaffiliated resorts in the mostpositive light, the better thepotential for increasedexchanges.

RCI Guides will also be ableto access this informationwhile interacting with RCImembers on the phone. Theenhanced information will beused in Holiday magazine, theRCI Directory of AffiliatedResorts and on RCI.com.

The new content tool willalso help RCI to achieve itsgoal of becoming the definitiveresource for affiliated resortand destination information,enabling members to dependon the company’s expertisewhen selecting holidays thatbest meet their needs.

With the new system, RCImembers will be able to‘picture it mentally’ – getting aclear and complete mentalpicture of a particular resortexperience as they plan theirnext holiday.

● For more information aboutthe new resort informationsystem contact your local RCIaccount executive.

RCI knows it is important tomake holiday planning a morepleasurable and easierexperience for its members, asthe first step in their RCI holidayjourney. That’s why it hasinvested in new technologies thatwill recommend bespoke holidaychoices based on the member’sown holiday experiencepreferences and uniquerequirements.

The new tool interprets themember’s travel history andprevious searches, andcombines these with ownershiptype filtered against currentavailability, to dynamicallyidentify the most relevant holidayoptions. Better yet, because thetool integrates with theenhanced online search featuresand expanded resortinformation, photographs andvideos, the search processbecomes faster, moreconvenient and more satisfyingthan ever before.

Gurnik said: “This powerfulnew recommendation tool willenhance holiday planningexperiences.

“Technology has enabled usto strategically sort through thethousands of holidayopportunities available to RCImembers and make insightfulsuggestions based on everythingwe know about them and theirpreferences.

“It’s an exciting developmentfor us as we continue to strive toprovide our members with thevery best travel services,information and technologiesavailable.”

RCI Guides are usually theonly source of personalisedholiday recommendationsavailable to members, and thenew tool will enable them,irrespective of their level ofexperience, to find the mostattractive holiday options formembers, more quickly andconsistently. Now that same

Gordon Gurnik



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

ONLINE RECOMMENDATIONTOOL – YOUR QUESTIONSANSWEREDQ: Will this new tool show the same holidays every time amember searches?A: If the same search parameters are entered from the exactsame section of the site, repeat searches through therecommendation tool will generate repeatrecommendations. However, over time the formula willlearn, on the basis of the member’s search actions andselections, what to recommend and what not to recommendand will drop certain resorts and add others.

Q: Does the system keep track of a holiday a memberdeclines so it won’t recommend it again?A: No, the recommendation tool does not recognise when amember declines a holiday, so if a member searches thesame parameters, the same recommendations may begenerated. However, the system does changerecommendations on the basis of the member’s action, sothe formula will eventually learn and provide differentrecommendations.

Q: How will this new tool decide which inventory to show amember?A: The new tool will make personal recommendations toeach member by taking into account their ownership(s),travel history and search behaviour, as well as theiravailability and visibility rules.

Q: Will the new tool ‘recommend’ across all possibleholiday options – Exchange, Extra Holidays and Late Deals Holidays?A: Yes. It does not filter or change any current searchfeatures, so if a member is searching ‘all’ inventory, the toolwill sort through all options.

Q: Is RCI tracking and saving members’ travel history?A: RCI has always kept this kind of data and does not shareit with other companies. This information is maintained byRCI because it is essential for providing the most relevantvacation recommendations to members.

Q: Why do RCI Guides offer recommendations different tothose offered online?A: The recommendations are dynamic by design. There isthe potential for different recommendations even when thesame search is conducted online at a later date.

PLATINUM LIFESTYLEThe shared-ownership industry is all about distinguishing thetimeshare experience from other holiday offerings and RCI’srecently launched membership enhancement does just that. RCIPlatinum Membership – for its Weeks and Points members – bringsluxurious lifestyle benefits to an already exclusive club. RCIPlatinum is a premium tier of membership giving RCI membersaccess to unit upgrades, priority access and cash rewards to be puttowards future RCI transactions – and all for £49. For moreinformation email [email protected], call +44 (0)1536 314651,visit www.rci.com or contact your local account manager.

consistency will be delivered,regardless of a member’spreferred channel for nteracting with RCI.

The key features and benefitsfor members include:● Relevant, personalisedrecommendations to RCI Guidesand members (RCI Weeks, RCI Points and Clubs)● Consistency regardless of thechannel used, whether website,call centre or mobile application● Explanation of whyrecommendations are relevant(eg. “recommended because youchose ‘beaches’”)● Dynamic, real-timerecommendations – if the searchcriteria are modified,recommendations changesimultaneously

RCI partnered with GravityResearch and Development, an

industry leader in matchingcustomers with product benefits,to develop the technology. Gravitytook data samples and built aformula that generatesappropriate recommendations,and RCI then completed acomparative validation by askingmembers to confirm that therecommendations were relevant.

“One of the most impressiveaspects of this system is howdynamic the formula is, alwaysupdating the recommendationsit offers based on the member’sactivities,” explained Gurnik.

“Whether members accessthese recommendations via RCIGuides in the call centre or onRCI.com, it’s almost like having apersonal travel agent who knowswhat you like and always leadsyou to the holidays that matchyour desires and needs best.”



The Registry Collection has expanded its network of resorts in Europewith the affiliation of Dubrovnik Sun Gardens, its first property in Croatia.

The move comes at an ideal time, with Croatia due to join the EU inJuly 2013 and tourism expected to increase by six per cent per annumover the next 10 years.

The five-star resort, pictured, above, is adjacent to a Radisson Bluhotel, just outside Dubrovnik, and has its own private beach. Additionalamenities include 13 bars and restaurants, three pools, a sports cluband spa.

The first phase of the property is comprised of 25 one- and two-bedroom new build homes, with whole-ownership prices ranging from€170,000 for a one-bedroom ground floor residence up to €555,000 forlarger two-bedroom residences with spectacular panoramic sea views.

Prospective owners will also be able to enjoy the benefits ofaffiliation to The Registry Collection, enabling them to stay at luxuryproperties around the world. Some 15 properties have been added to itsluxury property exchange programme in 2011 – six of them in Europe.

Julian Houchin, commercial director of resort owners iO AdriaLimited, said: “We strongly believe that investors today are interested inleveraging their asset to get more out of their investment.

“Given the quality and diverse nature of Dubrovnik Sun Gardens andthe luxury asset portfolio that is The Registry Collection, we believe thatthis partnership is a key strategic decision and one that will assist us inour sales efforts.”

RCI AFFILIATES FOUR NEW RESORTS IN EUROPE

CROATIAN FIRST FOR THE REGISTRY COLLECTION

RCI has expanded its network of resorts in Europe with theaffiliation of four properties in Italy, Cyprus and France.

Castello Izzalini, in the popular year-round destination ofTodi in Umbria, is a converted 13th century fortress that nowcomprises 15 elegant studio, one- and two-bedroomapartments. Facilities at the resort include a restaurant,cafeteria, wine cantina and a clubhouse due for completion inJune 2012.

Aphrodite Beachfront Village in northern Cyprus is a new-build beachfront resort on the island’s west coast,comprised of studio, one-, two- and three-bedroom penthousesand apartments.

On-site facilities include swimming pool and children’s pool,playground and lawn areas, Jacuzzi, beachfront indoor gym,sauna, spa and massage room, clubhouse and a bar and bistrorestaurant.

In France, Groupe Royal Polmen has affiliated two whole-ownership resorts to the RCI network. La Vallée d’Aulnes is avillage resort located in Charente-Maritime, a West CoastDepartment. When complete, facilities will include swimmingand diving pools, spa and gym, boutiques, bars and restaurants.All its one-, two- and three-bedroom units will have satellitetelevision and broadband, and the resort village will also house ahotel and conference centre.

Royal Oceanie, Ile de Ré is a villa-style property made up ofseven individual suites, each with private bathroom and largeprivate dressing room, fully-equipped kitchen, living-sittingroom, terraces, double garage and private parking.

The seafront resort can accommodate up to 14 guests, withseveral terraces and a sun lounge, private walled garden,outdoor whirlpool and a large heated swimming pool. On-siteservices and facilities include home massage and hairdressing,a chef, sports coach, golf, surfing/windsurfing and horse riding.

The resorts are among more than 50 new properties joiningRCI’s global holiday exchange network during 2011.

Geoff Ballotti, CEO, RCI, said: “All of these destinations addto our portfolio of high-quality exchange resorts, which is alreadythe largest in the world, and will give our subscribing memberseven more choice and flexibility in planning their next vacations.”

From left, RCI’s latest affiliates Castello Izzalini in Todi, Italy; La Vallée d’Aulnes in Charente-Maritime, France;and Aphrodite Beachfront Village in northern Cyprus.


www.castelloizzalini.it/

www.castelloizzalini.it/

aphroditebeachfront.com/

aphroditebeachfront.com/

www.royaloceanie.com/

www.valleeaulnes.com

QUOTE: 2012 WILL BE MORE PROMISING THAN THE LASTTWO YEARS FOR THOSE WHO KNOW WHERE TO LOOK FORGROWTH OPPORTUNITIES. NEVILLE BEEKMAN

COVER STORY


ANJA CASSAR

MEMBER SERVICES MANAGER AZURE SERVICES – OPERATING COMPANY, HEAVENLYCOLLECTION AT GOLDEN SANDS, MALTA

Developers must reach out to the public and mainstreammedia, educating them as to what shared-holiday ownershipis, how it works and why it makes sense. Timeshare owners,

salespeople and all stakeholders must be educatedabout what timeshare will and will not do, andhow to get the most out of it. Consumers need toknow they are dealing with honest people andthis credibility will help us survive.

Right now, service levels matter more than ever. At Azurewe constantly strive to help our members benefit by gettingthe maximum value out of the money spent with us byguiding them step by step in product use. We deliveroutstanding service. By working diligently, communicatingeffectively and pulling together as a team, we place ourselvesin a position of strength, even in challenging times.

TANER AYDIN

CHAIRMAN OF THE BOARD OF DIRECTORSTAES TOURISM AND CONSULTANCY SERVICES – MARKETERS OFRIVERSIDE GARDEN RESORT IN NORTHERN CYPRUS

Even in times of economic troubles and generalcrises, people still want special holidays with theirfamilies. I believe it’s a question of getting theright marketing strategy for your resort and thesecustomers would become timeshare owners. We

need to leverage guest testimonials to demonstrate they are ableto enjoy great holidays for less money.

My marketing strategy has always been bringing togetherthe right investor, the right co-workers and the right timesharecustomers. In addition to this, in 2012, my goal is to encourageinvestment in the developing countries that haveonly recently become familiar with the timeshareproduct. Developing new markets is key todriving sales volumes.

JOHN SPENCE

FOUNDER AND CHAIRMAN KARMA ROYAL GROUP, UK

Despite the tough financial climate thereare opportunities if resort developers take aglobal view. The European industry will face thechallenges of venturing outside its comfort zone insearch of new source markets from among thegrowing middle classes across Asia. Building a strongbrand DNA will be more important than ever inattracting buyers in uncertain times.

Key for us in 2012 will be bringing theKarma Royal Group DNA – its holidayexperiences and spirit – to a new mid-marketproduct and brand, Chakra. Launched in theEuropean marketplace, it will bring with it a loyal andcommitted Asian owner base. We all know we need to attracta younger buyer and they want more than greataccommodation. We have identified the beach clubexperience with DJs hosting beach parties as an importantelement of our Chakra brand and continued growth in 2012.

RCI Ventures invited 25 leading shared-ownership industry associates to share their views on the challengesand the way forward in the coming year and this is whatthey had to say...

■ WE ASKED:

What does 2012 hold for the shared-holiday ownership industry?What is the key element in your strategy for success in the year ahead?

■ OUR INDUSTRY LEADERS ANSWERED:

THE YEAR

AHEAD

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www.heavenly.com.mt

www.riversideholidayvillage.com/

PREBEN VESTDAM

PRESIDENTVALHALLA ASSOCIATES, UK

2012 will continue to be a challenging year forthe shared-ownership industry. Reduced global

consumer confidence and limited access to projectand consumer finance will continue to impact the

industry. Sales volumes will come mainly fromcurrent operators selling additional inventoryto existing owners, but we will also see newproducts being launched, with mixed-useresorts converting whole-ownership residences

into shared-ownership products to reachnew customer segments.Our 2012 focus will be on launching up

to four new European Private ResidenceClub (PRC) products which will tick all the

boxes. We will also be looking for additionalopportunities in Dubai where the market

conditions are ripe for the high-end PRCbusiness, from both the developer and consumer

point of view. A well-tuned marketing strategybased on prudent marketing spending is essential.

PETER BOOTH

GROUP MANAGING DIRECTORPESTANA HOTELS & RESORTS, PORTUGAL

Doubtless 2012 will be a difficult year asausterity measures make customers cautiousin their spending. Reductions in marketingcosts must be made and savings passed onto customers if our holiday product is tobe perceived as good value in comparison totraditional options. Products will be re-examined toensure they are right for today’s market conditions.

We will continue to provide excellent serviceand quality which distinguishes the Pestanaoffering. For 2012 we are introducing a newOptions programme moving our sales fromfixed weeks to a more flexible points-basedproduct. A daily fee based on usage rather than

an annual maintenance fee makes it even bettervalue for money and will help to put Pestana in a

good place for 2012.

MARTINA MATT JEZOVA

DEVELOPERTHE RESIDENCE CLUB, SLOVAKIA

The development of emerging markets – both destination andsource markets – will be the lifeblood of our industry in the


coming year. The challenges will be around thelack of industry infrastructure in those markets,getting the right level of government and tourismauthority investment in promoting newdestinations and tackling legislation and EU

regulation fast enough. Success will depend on getting theright group of people together to help build thatinfrastructure and sales strategy.

We go into 2012 with a good and relevant offer structuredaround excellent service levels. We started in sales lastSeptember and expected the strongest sales to come fromneighbouring countries and across Europe. Surprisingly, ouraffiliation with RCI brought in customers from as far away asAustralia and Israel.

BEHZAT AKSARAY

GENERAL MANAGERCLUB DEDEMAN, TURKEY

Turkey and its economy have been negatively impacted byglobal economic issues and because the Turkish timesharesector is heavily dependent on the domestic market, it willalso affect our business. Our economy has beenbuoyant until recently but is unlikely to enjoysimilar economic performance this year and so wemust prepare.

In 2012 we will follow the same strategy thathas strengthened our business throughout the economicfluctuations of the last 16 years. The key is maintaining thesame focus and concentration of resource on ensuring qualityproduct, high member satisfaction and continued trustedcompany brand strength within the market. Each yearpresents new challenges for us and we’re confident we’llachieve our goals if we stay with this strategy.

VERANNE WILKINSON

MANAGING DIRECTORHUTCHINSON & CO TRUST COMPANY, UK

Historically, the industry has always proved to be a resilientone during economic downturns, managing to comethrough such periods to go on to enjoy further growth.Rather than a noticeable surge of new business, I feel 2012will see current industry players focus ondeveloping and perfecting their products,adapting them to the more savvy consumers intoday’s markets.

Our company’s success over the last 25 yearshas been based on our flexible and openapproach to business. We will continue to offer new clientsbespoke and innovative services to assist, not only at startup, but also with their future growth and development. Ourclients’ success is imperative to our success, so working as ateam is key for us.


www.valhallaassociates.com/

www.pestana.com/

www.residenceclub.sk/

www.clubdedeman.net/

www.hutchtrust.co.uk/


QUOTE: THE POSITIVE EFFECTS OF THE NEW EU TIMESHAREDIRECTIVE WILL BE FELT AS THE GREATER TRANSPARENCYIT BRINGS INCREASES CONFIDENCE. ERIC GUMMERS

COVER STORY

NEVILLE BEEKMAN

DIRECTORTHE BEEKMAN GROUP, SOUTH AFRICA

2012 will be more promising than the last two years for thosewho know where to look for growth opportunities. With thelegal and compliance constraints, developers face biggerchallenges than ever to stay profitable withoutcompromising the sales process or overpromising to ensure they do the numbers. Ibelieve the industry will consolidate further as itbecomes more difficult for some in thisenvironment. The positive result is that if developers are tomaintain sales they will need to up their game, createalternative marketing opportunities and improve productstandards which will, ultimately, benefit both customers andthe industry.

We at The Holiday Club have gone through a process ofreinvention and, through strategic distribution anddevelopment partnerships, have created unique marketingopportunities with properties that have never before beenaccessible to timeshare owners. We have also looked at ourvalue chain and identified areas in our business where wecould generate additional revenues by offering services in-house.

LISA MIGANI

DIRECTOR, BUSINESS DEVELOPMENT EMEAFIRST NATIONAL TRUST COMPANY, UK

Next year we will start to see more deals being written onprestigious projects. I believe it will be the year manynewcomers to the industry, such as construction companieswith developments that have been floundering due to lack ofconsumer financing, will look at committing freeholdownerships to shared ownership. There are opportunities notto be overlooked in the Far Eastern market for servicecompanies. We have a client in Japan dealing in big volumes –

just like the good old days!We’ll be thinking about the product and what

people want. Short-term products will provepopular and are an especially good fit forcountries like Thailand where there is an appetite

for a lifestyle product. Fractional properties sold on a trusteeownership which revert to the developer after 20 years alsohave great potential in today’s market.

PAUL MATTIMOE

PRESIDENT & CEOPERSPECTIVE INTERNATIONAL, UK

2011 saw a change in attitude, as companies who hadretreated from marketing spend to ride out the economic

storm realised it was going to last longer than anticipated anda lower level of marketing wasn’t sustainable. Following onfrom a small increase in marketing spend in 2011, I wouldanticipate this to continue throughout 2012 as the necessityto drive sales outweighs the lack of confidence in the financialmarkets. This, combined with variations on producttypes and ‘new marketing’ programmes, will help toslowly breathe new life back into the marketplace.

After launching four regional editions ofPerspective Magazine and a customised OwnersPerspective Magazine (consumer facing) as a sales credibilitytool, we’re ready for 2012 expansion into Latin America,starting with a fifth Perspective Magazine for that region andour GNEX 2012 Cancun conference at the end of January. Ourstrategy is to maintain core objectives while identifying areaswhere we can add real value by creating relevant, new andinnovative products and services for resort developers.

BRYAN LUNT

CHAIRMAN & CEOABSOLUTE WORLD GROUP, ASIA

Online social interaction allows us to further understand ourclient needs, increasing opportunity to provide exactly theproduct required, be it whole-, shared- or vacation-ownership, within a perfectly tailored resort. The globaleconomic downturn has created a new level of consumerconsciousness and the need to holiday smarter which shouldbe embraced as a great advantage to the shared ownershipindustry. The perfect complement to this is greatertransparency from the shared ownership companies as welook to engage further with our clients.

With the opening of two new boutique beachfront resorts,we will continue to develop products to meetclients’ holiday needs, and to create a moreaccessible and fulfilling vacation experience. Wewill also continue to refine online operations,ensuring a seamless client experience; to exceed

client expectations with regards to service, experience,availability and variety, as well as leveraging technology toenhance our client online experience, through to resort.

NICOLA CIGHETTI

CEODOMINA VACANZE, ITALY

The shared-holiday ownership purchase exposes the buyer toless financial risk and is more affordable in these times ofeconomic turmoil than wholly-owned second homepurchases. This will continue to be an important characteristicand advantage of our product in 2012. Our product is not aholiday ‘hit and run’ cost but an investment in a holidaylifestyle over time. Founded in 1988, Domina Vacanze enjoysa relationship with its customers based on brand trust,


www.beekmangroup.com/

www.fntc.com/

www.absoluteworld.com/

www.dominavacanze.it/


professionalism and a competencebuilt over more than 20 years whichdistinguishes the brand.

Our Multi-Suite formula involves 13 four-starhotels, located in prestigious Italian andinternational destinations. The high guestsatisfaction levels and the growing interest ofnumerous foreign tourists, recurrently staying in

our hotels, has convinced us to take our formula overseas. In2012 we intend to expand the business beyond the Italianborders and are considering partnerships with internationalcompanies having the potential to present and sell ourproduct with the utmost professionalism abroad.

PIERS BROWN

FOUNDERFRACTIONAL LIFE, UK

Changing times will demand hybrid models of ownership asa form of ‘vacation currency’. Key will be increasing productflexibility and we’ll see smaller fraction sizes, short-term andfinite ownerships with guaranteed exit strategies, as well asnightly valuations and bookings rather than weekly.Developers will listen to what consumers want rather thanpredicting trends. And fractional buyers will want increasedemphasis on quality rather than cost, as they want thingsdone better rather than more cheaply. Consumer trends willdrive an emphasis on health and wellness at resorts – yoga,

pilates, spas – plus up-to-the minute on-resorttechnology and an increase in user-friendlyenvironmental technologies. Marketing will be toaffinity groups rather than to a financiallyqualified buyer.

Fractional Life’s 2012 strategy is quite simply to remainflexible and stay close to the market to provide the platformsand programmes our clients need.

MICHAEL STAEHLY

EXECUTIVE DIRECTORAEGEAN BLUE VACATIONS, GREECE

We shall experience a continuation of the trendsof the past two years. The challenge is fordevelopers and marketers to find real solutions.Our biggest challenge is that consumers aremore educated and demanding than ever, from

both a quality and a price negotiation perspective.The EU Directive poses another challenge, whileincreasing consumer protection it also weakenssales.

Challenge has two faces – crisis andopportunity. We will focus on the second... Our

strategy is to be proactive and to focus on client needsand satisfaction, and putting emphasis on the quality

levels of everything – product, customer services andselling methods. The search for new lead generationchannels and synergies in the market will be a priority, as iscontinuation of resort renovation and improvement of ourowner offering with a product that is more flexible,attractive and easy to understand and to buy. We’redeveloping in-house finance and negotiating with suppliersto reduce costs. With the support of RCI we recentlyopened discussions with major European companies towork together, exchange employees and create leadgenerations and we’ll build on these relationships.

OLE SIGURDSSON

PRESIDENTMIRAFLORES RESORTS, SPAIN

In the current market, the shared-holiday ownershipindustry will continue to have a tough time, both inmaking new sales, as well as retaining existing members.The ‘aspirin’ our politicians are providing might take away

the headache for a short while, but the realproblem remains until bold decisions areimplemented. Since the beginning, our industryhas constantly avoided the two main flaws: theever rising cost of maintenance fees and the

issue of resales.In 2012 Miraflores proposes to introduce a two-tier

maintenance fee comprising a fixed annual fee to coverfixed property expenses and a user fee to cover check-in,housekeeping and utilities only. To reduce resales, we’reintroducing the ‘Miraflores Fractional 15’ product whichoffers a phase-in and a phase-out. Following 15 years ofuse, the property is resold as freehold and the sale incomeis split between the members. In the current marketconditions, people still want to holiday, but they demandmaximum value and a limited duration of theirinvestment.


www.fractionallife.com/

www.aegeanblue.eu/

www.miraflores.com/

QUOTE: CENTRAL AND EASTERN EUROPE WILLPROVIDE GROWTH POTENTIAL FOR BOTH NEWAND EXISTING DEVELOPERS. DIMITRIS MANIKIS

COVER STORY

India have become the focus of attention for many. Thehospitality world continues to expand geographically andmixed-use developments have become a part of the naturalcourse of planning. Will standalone hotel projects becomethe exception rather than the rule?

RAMESH RAMANATHAN

MANAGING DIRECTORSTERLING HOLIDAY RESORTS, INDIA

The Indian economy is growing at a healthy rate of over sevenper cent. With this growth the discretionary spend on non-essential product is expected to grow substantially, including on

travel and holidays. Shared-vacation ownership isviewed by the Indian middle class as being lessvulnerable to economic fluctuation and, with apotential universe of an estimated five millioneligible Indian families and a current penetration of

only 250,000, there is immense potential for the future.Sterling Holidays is firmly focused on delivering great

holiday experiences to customers, especially families. Ourimmediate focus is resort refurbishment to contemporary, best-in-class standards, including a review of all facilities andarchitecture to ensure guests walk into a whole new experience.We are also expanding our destination footprint, as evidencedby the opening of three new resorts in quick succession. Whileowner acquisition is important, so is enhancing the satisfactionof existing customers. In 2012 our goal is to increase theirinteraction with us using technology and so our resortinformation and reservation system will be taken online to makeit easier for the customer to access their holidays.

HARRY TAYLOR

CHIEF EXECUTIVE OFFICERTATOC – THE TIMESHARE ASSOCIATION, UK

I’m not sure the industry knows where it’s heading in 2012.On the fractional side there is clarity as to the way forwardand it will be a year of real opportunity for the growth of themid-market fractional sector. We need to look at the selling ofweeks again to take the pressure off unsoldinventory. Weeks needs to be repackaged as areduced timescale offering of three to four years’ownership and then up-sell into a fractionalproduct. TATOC feels more attention needs to be

paid to the opportunity in the family marketand the bringing in of family units at a

lower, more affordable price point.Our 2012 priority is, as ever, to be

here for both our owners and the industry.It is more important than ever to provide a

mechanism to bring owners and the industrycloser for the benefit of both and that will

always be our primary goal.

RAJIV SAWHNEY

MANAGING DIRECTORMAHINDRA HOLIDAYS & RESORTS, INDIA

Fortunately, the Indian economy is growing by more thanseven per cent a year and so we would expect to see

exponential growth of 25 per cent year-on-year inour business. Our industry only has a relativelysmall penetration in a country with a rapidlyincreasing middle class with aspirations to travel.Indian families are likely to buy in India and to

exchange to visit overseas destinations.To meet the significant increase in demand for travel to

places such as Thailand, Singapore, Malaysia, Sri Lanka andDubai, we plan to extend the suite of destinations we offer in2012. Our focus will be on delivering a consistent qualityMahindra experience, wherever it is sold. We need greaterunderstanding of what our owners want and this year we’llbe mining our data more effectively to achieve that; to defineactivities that make sense for them and to deliver.

PHILIP BACON

MANAGING DIRECTORHVS GLOBAL HOSPITALITY SERVICES, MADRID OFFICE, SPAIN

Existing properties and those caught out by the globalmeltdown will look to recalibrate their projects to takeaccount of the changed landscape for both investors andcustomers. It is all about risk management. Opportunities willexist in mixed-use developments, including branded

residences, private residence clubs and fractionalownership, as well as golf, casinos, spa, marinas,retail and offices. It’s a buyer’s market soconsolidation and scaling up of sound operatingplatforms will be the name of the game.

Short- to mid-term projects will provide real opportunity,especially unique and limited supply products which willattract the attention of hospitality-based real estate investorsand guests globally. Such projects must truly offer theseattributes and provide clear risk assessments. Long-term

projects with high levels ofdevelopment risk are less likely to getthe attention of serious investors.Africa, Latin America, China and


www.clubmahindra.com/

www.hvs.com/

www.sterlingresorts.in/

www.tatoc.co.uk


ERIC GUMMERS

PARTNERHOWARD KENNEDY, UK

There will be several strong themes in 2012for the industry. We will begin to see thepotential and power of markets outside westernEurope, including Asia. People will view their purchasing

ability differently and ask themselves if whole-ownership holiday homes are what they want asthe difficulty of raising finance changes the gameplan. Drive-to destinations will be back in focus,particularly in the UK in the popular locations

where there will be a fusion of whole ownership andtimeshare. We will see a blurring of the boundaries betweentimeshare and fractional product – and a product structureneeds to be in place for this development.

The positive effects of the new EU Timeshare Directive willbe felt as the greater transparency it brings increasesconfidence. Quality of product and selling methods will beimportant to success, and partnering with big hospitalitybrands will also be a theme for 2012.

SEAN LOWE

MANAGING DIRECTORRCI EUROPE, MIDDLE EAST, AFRICA AND INDIA

Rising levels of activity and exciting developmentsin the Nordic and Eastern markets should help todrive a steady recovery of primary sales. Ofparticular note is Holiday Club Resorts’ expansioninto beach territories and the opening of itsfabulous Saimaa Resort in Finland. Collaboration betweendevelopers seems likely in the difficult times ahead.

RCI’s immediate focus will be on member retention andensuring the highest member satisfaction levels andengagement with both RCI and its resorts. We aim to achievethis through product and customer service enhancements,transparency of our offering, and in the careful and correctdistribution of inventory.

DIMITRIS MANIKIS

VICE PRESIDENT, BUSINESS DEVELOPMENTRCI EUROPE, MIDDLE EAST & AFRICA, GREECE

Consolidation will be key as pressure is put on the marketwith more resorts entering distressed status when lack ofmaintenance fees and a fall in sales challenges the industry.

Big players will be looking at the opportunities topurchase distressed resorts in high-demandlocations. The building of new markets – bothdestination and source – will be a real focus.Central and Eastern Europe will provide growth

potential for both new and existingdevelopers. Developers will continue to

expand outside their home regions. And thetime has come for the Middle East to fulfil its

promise in 2012.RCI will continue to innovate, creating products and

services which will serve to increase member satisfaction andhelp to strengthen the business of our affiliates. With ouroverview of the industry and markets, we believe it’s crucialto act as a facilitator and bringing the right people in thebusiness together is pivotal in our 2012 strategy.

GREGG ANDERSON

GLOBAL VICE PRESIDENTTHE REGISTRY COLLECTION, US

Many people deferred taking holidays in the pastyear and in the exchange world they banked theirweeks. They are now ready to holiday, so weexpect to see exchange volumes increase.Likewise, many shared-ownership developmentsheld back on launching sales until pricing stabilised which isnow beginning to happen so we’d also expect to see a numberof previously announced projects in active sales in the firsthalf of the year.

Innovation and common sense are pivotal to success. TheRegistry Collection isn’t just an exchange engine for fractionalresorts; rather we’re innovating by partnering with condo-hotel developers, destination clubs and other alternativeownership/usage programmes to expand inventory offerings.

MATT HOLMES

BUSINESS DEVELOPMENT MANAGER – EUROPETHE REGISTRY COLLECTION, UK

We believe fractional ownership will gain momentum withboth developers and consumers across Europe in the comingyear. Developers of mixed-use leisure resorts will increasinglylook to the benefits of having a shared ownership and/or anexchange component in their sales offering. 2012 will seeongoing economic turbulence, meaning nowmore than ever is the time for developers to enticeconsumers by adding extra product lines to theirsales that don’t require the large upfront capitaland ongoing outlays that they have beenunwilling or unable to make. Adding an exchange componentthat allows owners to leverage their asset to travel the world isthe icing on a very compelling cake!

Following the very successful fractional ownershipawareness days held across Europe last year, we will beseeking new markets in 2012 in which to spread the sharedownership word to interested developers, agents, hoteliers,tourism authorities and others. Istanbul, Vienna andEdinburgh are on the 2012 event agenda. V


www.howardkennedy.co.uk/

www.rci.com



www.rci.com


BARNSDALE Hall Hotel in Rutland, nearLeicestershire in the UK, is the archetypalcontemporary mixed-use resort.

Set in conservation parkland overlookingRutland Water, the comprehensive complexwhich is also known as Barnsdale CountryClub features 66 hotel bedrooms, 49timeshare units plus bars and restaurants.To further boost its revenue streams it hasadded conference facilities, a spa and leisurefacilities including a 22-metre swimmingpool, mini and crazy golf courses, tennis andsquash courts, football pitch, bowling greenand even a helipad to its on-site amenities.

Russell Waters, general manager, said:“The helipad doesn’t get an awful lot of usebut it’s popular with wedding parties as away for the groom and best man to arrive.Sadly the bride often misses out on thatexperience.”

Weddings are big business for the venue.It hosted somewhere in the region of 100ceremonies during 2011, but the creditcrunch is continuing to bite and bookings aredown for the year ahead.

But rolling with the punches dealt byeconomic downturn is something BarnsdaleCountry Club has become good at. The

QUOTE: WE’VE SEEN THE WAY THE RECESSION IS LIKELY TO AFFECT OURWEDDING AND CONFERENCE BUSINESS, SO THE TIMESHARE OPERATIONPROVIDES A STEADYING ELEMENT. RUSSELL WATERS

MIXED-USE

owner and management have been quick toadapt to change over the years and indeedthe hotel operation, which came after ratherthan before the timeshare element, wasintroduced as a way of beating the recessionof the early 1980s.

“The owner was first introduced totimeshare while on holiday in the 1970s andreally liked the concept,” explained Waters.

GROUNDS FOR GROWTHSeeing the business potential of timeshare,the property owner developed a smalltimeshare operation of four apartments

The ongoing economic downturn has hit the hospitality industryhard, but one hotel overlooking Rutland Water in the UK’s smallestcounty is surviving better than most thanks to the steadyinginfluence of its mixed-use resort operation. By STEVE ADAMS

MIXED BLESSING

workV-B'dale-p16-18-sa-rb_Layout 1 08/12/2011 21:54 Page 16

www.barnsdalehotel.co.uk/

within the main Barnsdale Hall building, aformer hunting lodge built in 1890 for the VI Earl Fitzwilliam.

Shortly afterwards, the magnificent andspacious grounds of Barnsdale were put togood use in generating further revenuesfrom timeshare operation with the building ofindividual lodges in the grounds.

“Sales started okay but were really hit bythe recession of the late 1970s and early1980s, when consumers had less disposableincome,” said Waters. “At the same time, thecorporate market was holding up – the area’ssteel and concrete industries were doing well

back then – so the resort shifted its focus tomore corporate business.”

The move initially meant converting someof the timeshare apartments to hotel rooms –the size of which still impresses guests –before more accommodation was added, withconference and other facilities, as the resortexpanded. This included adding furthertimeshare units in the form of apartments,mews cottages and timber-constructedlodges, sleeping two to eight people.

The resort was affiliated to RCI in 1992,and has held RCI Gold Crown status almostpermanently since then.


The development of timeshare villas in itsspacious but largely unused grounds hasgiven Barnsdale Country Club a significantadditional source of revenue.

Hotel guests now stay in the main hall orone of two more accommodation blocks, withnightly rates ranging from £96 for a singleroom to £525 for a suite. A timeshare weekcosts from as little as £1,200, withmaintenance fees starting from £500depending on unit size. The resort also offersa rental and resale service on behalf of itstimeshare owners, which it operates via itsown website and through third parties.

ADVANTAGES SHARED“Our timeshare prices represent great valuefor money, not only when compared to thehotel rates, but because of the additionalbenefits they bring,” explained Waters.

“One of the big draws is that timeshareowners get concessionary use of leisurefacilities all year round, which means wehave a huge proportion of owners who livelocally. Eighty per cent of our owners livewithin 40 minutes’ drive of the resort.”

With the leisure club charging annual feesof £540 for an individual and £925 for a couple,it’s not surprising that gym users see theincentive of buying timeshare at Barnsdale.

“People moving to the area come to theresort to use the facilities or join the gym andthen find out they can buy here,” said Waters.“They soon realise that the maintenance feeeffectively gives them a cheaper membershipto the gym and leisure facilities. Many theneither bank their week with RCI for exchangepurposes or rent it out.”

Waters is quick to praise the benefits ofbeing an RCI affiliate, and recognises thathaving guests on site in whatever capacitybrings revenue-generating opportunities. Thehotel’s restaurants and spa facilities allbenefit from the increased footfall of leisurevisitors as well as the high proportion oftimeshare exchange guests – which can beas many as 70 per cent at any one time.

SALES STRATEGYRental and exchange guests also offermarketing potential for resales and unsoldweeks, but since the latter only account foraround two per cent of the resort’s inventory,the sales tactics are generally low key.Brochures are sent to exchange guests,



QUOTE: OUR TIMESHARE PRICES REPRESENT GREAT VALUE FOR MONEY,NOT ONLY WHEN COMPARED TO THE HOTEL RATES, BUT BECAUSE OF THEADDITIONAL BENEFITS THEY BRING. RUSSELL WATERS

MIXED-USE

while fliers offering incentive packages aredistributed to conference attendees, weddingguests or left in hotel rooms, but the resortrarely conducts formal presentations or opendays, according to Waters.

“We run promotions at certain times butotherwise it’s very low key,” he said. “Wehave a welcome morning for guests and theycan then visit the sales office during theweek if they choose to do so – it’s muchmore relaxed, which also happens to be the

best way to sell.“Having said that, we

have a responsibility toour 2,500 owners – andthe owners’ committee,which pays us tomanage the resort on arolling three-yearcontract – to keep

money coming in for the ‘sinking’ fund, soselling weeks or helping owners to resell theirweeks, is important for the health of the resort.”

Waters said the resort has sold around100 weeks during the past 12 months, with70 per cent being resales.

“That’s not a bad figure in the currentclimate, when hotel bookings are down andless people are going away on holiday,” hesaid. “We’ve seen the way the recession islikely to affect our wedding and conferencebusiness, so the timeshare operationprovides a steadying element.”

Waters said the timeshare operation alsohelped to stave off some of the effects ofrecession – as well as seasonality – bymaintaining occupancy levels all year round.Its average hotel occupancy dipped below 70per cent during 2011, but timeshare occupancyremained at over 90 per cent, possibly due tothe recession and the number of people taking‘staycation’ breaks closer to home.

Management funds and revenuegeneration through food and beverage andother areas contribute to the ‘steadying’aspect, helping cash flow and enabling the

resort to maintain operations and staffinglevels (with nearly 120 staff Barnsdale is onethe largest year-round employers in the area).

The higher occupancy levels enjoyed bytimeshare also help justify the originaldecision to make the most of the hotel’sextensive land by building the A- and AA-framestyle timeshare lodges, according to Waters.

“It’s something that all hotels with landplots that they can develop shouldautomatically consider,” he said. “We’ve seenlots of hotels go into receivership during thepast couple of years, and having the timeshareelement has really kept us afloat.

“I don’t think we’ve seen the end of therecession yet, but the mixed-use model hasproved very effective in overcoming some ofits problems and will certainly help us to rideit out.”

Russell Waters

Accommodation options at Barnsdale CountryClub include A- and AA-frame lodges, mews-style properties and the main hall, with manyrooms offering views of Rutland Water.

V



ARDA 2011

WHAT do you do when everything changes? When emergingmarkets become dominant forces and industrialised economiesvie for cameo roles in a new world order?

In a world deep in transition ARDA is coming out with a boldmission to develop a blueprint to help tomorrow’s growthmarkets learn from their established peers. Its goal is to positionthe entire sector at the vanguard of the hospitality marketplacethrough research and innovation.

The first global timeshare study for much more than a decade; asignificant and international restructuring of its annual conference – theworld’s largest – to better address the needs of timeshare’s embryonicmarkets; and a concerted effort to showcase owner-evangelists areall part of ARDA’s strategy to galvanise the global industry.

THE WORLDTimeshare has grown up, and with it, the aspirations and wanderlustof BRIC (Brazil, Russia, India and China) countries’ middle classes.While 85 per cent of the US population count themselves in thatdemographic, China’s 17 per cent is significantly greater in real termsand indicative of a market that’s ready to take on the world with itsown already well-respected hospitality industry.

Hospitality companies such as Starwood Hotels and Resorts andHilton Worldwide have accelerated efforts to attract an increasingnumber of Chinese holidaymakers travelling internationally (see

Timeshare is preparing to write the next chapter in its evolution with theAmerican Resort Development Association (ARDA) spearheading efforts to unitethe industry and lay the foundations for growth, as DAVE THACKERAY reports.

WORLD IN ACTION

panel, page 21) while countries such as Brazil and India arecreating shared-holiday ownership products at an exponential ratethat are proving popular with their domestic source markets. Thesenew growth markets challenge the world and offer internationalinvestors an opportunity – if they’re ready to innovate.

Differing legal structures and holiday products to address newconsumer preferences are required, and lessons need to be learnedand shared, which is one of the chief reasons why ARDA isbacking the creation of a global assembly of timeshare-familiarnations with experience of doing it both the right way and thewrong way.

Howard Nusbaum, ARDA’s president and CEO, explained: “Wewant to make sure emerging markets in Asia don’t make the samemistakes as we did in the US and Europe, which created laws thatwere punishments.

“The ARDA Convention has always been attractive to peoplefrom across the world – that’s not new and I’m proud of that –but the reality is it’s always been an America-centric show wherepeople can learn about best practices in America, which naturallyhas been of interest to global players.”

Having spent the past few months taking the industry’s pulse,Nusbaum has probably notched up more frequent flyer miles thanthe average head of state – and in doing so has bolstered alreadydeep connections with trade associations worldwide.

QUOTE: THE SURVEY IS GOING TO BE A DIAGNOSTIC. IT’S JUST THE BEGINNINGAND IT WILL GIVE US VALUABLE INFORMATION – A ROAD MAP OF WHAT WENEED TO DO AND WHERE WE NEED TO GO. HOWARD NUSBAUM

ARDA is moving with the times to embrace timeshare’sevolving market by staging its first global event.

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www.arda.org

The move is supported byDavid Aaker, author of Harvard Business Press’ Spanning Silos and BrandRelevance books, who told RCI Ventures that launching a repository ofhappy stories by customers to showcase timeshare’s strong points was asizeable advantage in the highly-competitive hospitality sector.

Aaker commended ARDA’s efforts to create a global platform forthe sharing of timeshare knowledge and intelligence, which heconsidered was vital in reinforcing consistency and authenticity fromthe consumer’s perspective.

“It’s vital to understand that decision-making to purchase is atwo-step flow,” said Aaker. “First the customer chooses the category,then the brand, which means an industry united by behaviour andmessage is very important right from the outset.”

THE FUTURENusbaum explained that while ARDA was tasking itself withstimulating a think-tank of regional shared-holiday ownershiprepresentatives, its role was in no way controlling.

“ARDA’s relationship with timeshare is a little like America’srelationship with the UN,” he said. “We house it here, but it’s aglobal organisation and its leadership comes from across the world.America writes a bigger cheque to support it, but we ask othercountries to support it as well at the level they are able.

“We’re not interested in controlling it. Everyone has a part to playon where this is going. Every market is different – from real estatelaws to what product is right for those markets.

“The world needs leadership and ARDA is uniquely positioned todo it because we are capitalised and have the largest proportion of themarket. Our industry is global and it’s going to take unity.

“Innovation will come from many places… people we haven’teven met yet are going to help the industry evolve.”


THE CONFERENCEIt all bodes well for the Association’s 2012 conference, whichNusbaum playfully hinted directly after last year’s event, was duefor a refresh under the auspices of ‘ARDA Mundo’.

The now-confirmed ARDA World exposition from 1 to 5 Aprilpromises a complete change to the traditionalconvention syllabus. For example, last year’s stateof the industry panel consisted entirely ofAmerican CEOs, with scant coverage of theinternational market.

“That same panel this year will consist ofboth domestic and international companyheads,” said Nusbaum.

It’s not just the name that has changed for 2012 – Olympianefforts are being made at the organisation’s Washingtonheadquarters to make sure ARDA World lives up to its name, witha focus shift towards a forum for global debate.

“ARDA is probably the one organisation in the world oftimeshare that has the bandwidth to host an international show ofthis size, so we want to step up and do that,” said Nusbaum.

“In the past the ARDA Convention has been both a place youcan come to learn best practices in the American industry, andwhere America learns about the rest of the world.”

THE SURVEYARDA International Foundation is responsible for the first globaltimeshare study in 13 years, and the widely anticipated results willbe revealed at ARDA World.

“The financial markets need it, regulators need it. It’s a reportcard for the industry, and a benchmark for the future,” saidNusbaum of the survey, which has been financed by theAssociation and the industry’s major exchange companies.

But what happens if the analysis is skewed towards the negative?“I’m not afraid of it being a lost cause,” said Nusbaum. “It’s

going to be a diagnostic. It’s just the beginning and it will give usvaluable information – a road map of what we need to do andwhere we need to go. This is a benchmark – where the product is,what it looks like today and what is its structure. Again, this isdiagnostic and will help us with future studies.

“One study alone doesn’t give you much information. This studyis hugely important, a wake-up call – but only after two or three yearsof data will it be truly compelling. This is also all about transparency– there is no more smoke and mirrors in the timeshare industry.”

THE CONSUMERUnder its consumer brand VacationBetter.org,ARDA has been collecting good news stories abouttimeshare from its greatest evangelists – its owners.

ARDA’s member-developers have been workingin conjunction with the Association to showcasethe ownership stories of their most passionateguests. Told through blogs, videos and pictures,these essays give a compelling case for timeshare to be consideredby the wider consumer marketplace, and are delivered under aninitiative known simply as Timeshare Fans. A similar project isbeing carried out in Europe by The Timeshare Association (TATOC).

QUOTE: FIRST THE CUSTOMER CHOOSES THE CATEGORY, THEN THEBRAND, WHICH MEANS AN INDUSTRY UNITED BY BEHAVIOUR ANDMESSAGE IS VERY IMPORTANT RIGHT FROM THE OUTSET. DAVID AAKER

ARDA 2011

V

HowardNusbaum

David Aaker

The ARDA 2011 fall convention wasas popular as ever. Leveraging itsstrength, ARDA is taking itsconference and research global in2012, making it a compellingplatform for the sharing of bestpractice across the industryworldwide.


www.davidaaker.com/

Hospitality industry commentators suggest China has thesame, if not greater, potential today as the US offered to thehotel sector in the 1950s.

Spence Wilson, chairman of the board, Orange LakeResorts, believes Asia has a glowing future. Wilson, whosefather Kemmons founded the Holiday Inn hotel chain, has beenassociated with China for more than 30 years, and has seen asignificant rise in the quality of accommodation and service.

In 2008 Wilson addressed delegates at the Asia-Pacificconference of Intercontinental Hotels Group (IHG), OrangeLake’s partners in Holiday Inn Vacations Club. It was duringthat trip to Shenzen that he wasdazzled by China and suggestedit was a strong market toconsider.

“I knew my dad was on tosomething years ago when hespent a great deal of time tryingto break into the Asian market,”said Wilson. “Theirs has becomea culture of hospitality and thehospitality industry has learnedwhat it takes to service at thehighest levels.”

Other major hospitality marques have been hypnotised bythe potential of China and its burgeoning outbound travelsector. Starwood Hotels and Resorts and Hilton Worldwidehave been embarking on exciting initiatives gearing up theirhotel product for an expected influx of Chinese tourists.

Hilton spent three months working with the generalmanagers of its Chinese hotels, and its preferred Chinesetravel agencies, to create Hilton Huanying (meaning‘welcome’). The programme – creating a dedicated hospitalityexperience tailored to the Chinese traveller at the touchpoints of arrival, guest room and breakfast – was launchedlast summer in San Francisco.

Starwood sent many of its senior executives on a month-long cultural awareness trip to China last summer andunveiled Starwood Personalized Travel at 19 hotels in itsinternational portfolio, offering special touches such as in-room tea kettles, slippers, translated welcome materialsand on-site translation services.

“Just last year several of our hotels in gateway citiesaround the world saw double and triple digit growth year-over-year driven by Chinese travellers,” said a Starwood spokesperson.

“Chinese business at the W New York – Times Squaregrew 173 per cent and Chinese business at the St RegisMonarch Beach in Southern California increased 140 per cent.”

DIARY DATEARDA World takes place April 1 to 5 at The Venetian ResortHotel & Casino in Las Vegas. For more information visitarda.org/convention2012/


MARKET STRENGTH IN CHINA

Spence Wilson

ARDA FORGES WORKINGALLIANCE WITH RDO

ARDA has agreed a working alliance with its Europeancounterpart the Resort Development Organisation (RDO).

The move is designed to help the organisations advancethe growth of the timeshare industry worldwide, theinterests of their members and the consumers they serve.

Howard Nusbaum, president and CEO of ARDA, said: “Intoday’s global environment, timeshare is a growing portal tothe world for vacationers. Establishing a better exchange ofinformation with RDO will bring value to our members whohave resorts around the world and to owners who areincreasingly looking to destinations abroad for theirtimeshare vacations.”

The agreement aims to explore opportunities for bothorganisations to share industry information with theirrespective developer communities and prospectivetravellers. Cooperative efforts will include identifyingopportunities to reach new members and address relevanttopics such as:

● Membership standards and enforcement issues

● Joint approaches to jurisdictions which do not as yet havetimeshare legislation nor an effective trade association

● Joint marketing opportunities.


www.orangelake.com/


“I’VE been to some excellent resortsaround the world but I’ve always foundsomething to be missing,” said theEmirates Vacation Club chief operatingofficer as he looked out of the windowof the Burj al Arab towards downtownDubai, where the company is planningits next resort among the huddle of cityskyscrapers.

“But we have very good products,run by a very good team, in a very gooddestination. I have never seen that in aclub before and for me, this is the secretof our success,” explained El Zarqa,when we met at the end of the SharedOwnership Fractional Summit MiddleEast and North Africa 2011 – theconference that signalled thedevelopment of this emerging market.El Zarqa has plenty of experience,having worked in timeshare for 12 yearsstarting with Marriott Vacation Club inthe Middle East and Europe, thenmoving to Fairmont Heritage Place inSouth Africa and Dubai.

Emirates Vacation Club is nowaffiliating the Tulip Inn in Sharjah withRCI and it plans to affiliate its nextresort, set to open in Dubai this year. El Zarqa said: “The RCI team have beengood friends to us. They have offeredgreat support and information in theshared-ownership business and that’swhy we’ve chosen to affiliate our futureresort with them.”

El Zarqa has high hopes for the newproject, details of which were still underwraps at the time of going to press, andit’s no surprise given Emirates VacationClub’s dramatic success. It entered salesin February 2010 at the Emirates GrandHotel, also in downtown Dubai, and has

QUOTE: I’M PASSIONATE ABOUT THIS BUSINESS. I LOVE DEALING WITHPEOPLE AND THAT’S WHY I LOVE MY JOB BECAUSE WE CHANGE PEOPLE’SLIVES IN 90 MINUTES. ASHRAF EL ZARQA

PROFILE

exceed expectations. Don’t get the wrongidea – I’m a very humble man, but I havegreat confidence,” said El Zarqa.

“People are central to our industry. Ibelieve success comes from experience,creativity and investing in people. Youcan’t tell much about someone in aninterview so you have to invest in themand try them out. I always think come tous with discipline and desire, and wewill help you to become a better person.

“For example, I have the bestmanagers in the Middle East who haveworked with Fairmont and MarriottVacation Club but when they came tome they wanted to be better. So I workhard to motivate them and constantlytalk to them about how unique theyshould be if they want to be better for

As Dubai’s Emirates Vacation Club celebratesrecord sales figures, the man heralded as bringingabout its success, Ashraf El Zarqa, maintains it’sall about the right elements falling into place, ashe talks to SARAH LEE.

RECIPE FOR SUCCESS

The interiors of EmiratesVacation Club timeshareat Emirates GrandApartments speak of thehigh quality that definesthe brand and which willbe applied in the samemeasures across thecompany’s new resortTulip Inn in Sharjah, soonto be affiliated to RCI.

sold between 100 to 120 timeshareweeks generating US$25,000 a monthsince – confirming El Zarqa’s belief thathis operation and product has all theelements clients look for.

“We’re selling service and luxury ina city where there’s fantastic hotels likethe Burj al Arab – the world’s firstseven-star – then there’s the tallestbuilding in the world, skiing in thedesert and more. We can’t give ourguests a second rate product to make afew bucks,” he said.

“I’m passionate about this business. Ilove dealing with people and that’s whyI love my job because we changepeople’s lives in 90 minutes. Peoplewho are used to normal holidays comeinto a presentation and we introducethem to something more luxurious andmore reliable. And they love theproduct.”

With Dubai’s ever-growingpopularity and Emirates Vacation Club’sunique timeshare offering it’s easy tosee why. The club differs from traditionaltimeshare as it offers extras usually foundonly in hotels – 24-hour room service,valet and daily housekeeping as well asthe largest full-compliment spa in theMiddle East and even private chefs, allavailable in 99-year ownerships.

Meanwhile Emirates Vacation Clubhas grown its sales team from five to125 in a matter of months and marketsthe resort around the world, withowners coming from 76 countries.

“We may have hit record sales but ithasn’t met my expectations yet. It’s a newteam – they’re still in training and aredoing the best in the Middle East so whatwill happen in the future? Surely we will

workV-ME Profile-p22-23-sa-rb_Layout 1 08/12/2011 23:00 Page 22

their children, their city and theircommunities.

“After all, what’s the differencebetween the average person andPresident Obama? He’s the same guy asyou and me but he just wants to bebetter. He might have a little moreexperience and leadership skills, but heis essentially the same as any of us.”

Though the downturn in globaleconomies has had a visible impact inDubai and many building projects,including the ground-breaking The Worlddevelopment, have either been put onhold and are just starting up again or havebeen cancelled altogether, the Emirates’resolve has not weakened. EmiratesVacation Club is a prime example of theoptimism in this still emerging market.

Alongside Emirates Grand Apartmentsand the Tulip Inn in Sharjah, it is workingon another resort in Dubai.

“It’s close to all the life in Dubai – thebeach, shopping malls and metro, in factthe metro is underneath the building soit’s an excellent location. Plus we have theknow-how to make it a success, so wefigured why not have two resorts in thecentre of Dubai?,” said El Zarqa.

“There isn’t a lot here like our Cluband so we are a pioneering club in theregion, showing that shared ownershipcan work in the Middle East.”

Alongside other companies in theregion, Emirates Vacation Club is layingthe groundwork for shared ownershipto have a healthy future in the MiddleEast. It is currently an unregulated


sector but Emirates Vacation Club isworking on contracts and legislationwith government agencies.

“I don’t see any challenges in theMiddle East, only opportunities.Penetration of shared ownership in theMiddle East is only two per cent – withthose figures there is so much potential.But the trouble is some companies haveentered the market and investedmillions of dollars in a project and yetthey won’t invest a few thousand inmarketing, which is vital,” El Zarqaexplained before highlighting theimportance of experience.

“We will make mistakes but we willlearn from them. After all, how much ofa mistake can you make by trying things?It’s all about taking calculated risks.” V

workV-ME Profile-p22-23-sa-rb_Layout 1 08/12/2011 23:00 Page 23


WHILE most people would look atsnow covered mountains and envisionperfect powder and apres-ski visitoractivities, savvy hospitality developerssuch as Sweden’s SkiStar are fastrealising there’s year-round gold in thevalleys traversed by this 7,000 year-oldsport. The seasonal peaks that comewith Mother Nature’s cyclical spur areconsidered to be the icing on theholiday experience cake for this resortdeveloper.

Ski destinations are the perfectembodiment of resorts trading on

speciality status and thelateral thinking of SkiStar,a company with morethan 35 years’ experiencein the hospitality sector,defines the way ahead forshared ownershipoperators in niche

tourism sectors.Since brothers Mats and Erik

Paulsson bought Sälen’s Lindvallen skiresort in the mid-1970s, SkiStar hasgrown to embrace every need of theholidaymaker, every month of the year.And with the unveiling of SkiStarVacation Club in 2009, which isaffiliated to the RCI holiday exchangenetwork, the company hasdemonstrated to its hospitality peershow to expand operations and leveragebrand loyalty to turn guests into owner-evangelists – whatever the weather.

MARKETING HIGHNorth America aside, very few noisystatements at a destination or regionallevel have conquered the widely-heldbelief that the buck stops for mountain

QUOTE: BROADBAND PENETRATION AND TRUST IN ONLINE PURCHASINGIS VERY HIGH IN SCANDINAVIA. WE ALREADY DO 70 PER CENT OF OURTRADITIONAL BUSINESS OVER THE INTERNET. MATHIAS LINDSTRÖM

SKI & MORE

Swedish nationals – online.“Broadband penetration and trust in

online purchasing is very high inScandinavia,” explained Lindström. “Wealready do 70 per cent of our traditionalbusiness over the internet and believethe classic sales process for timeshare isa little bit ‘old school’. The customermust have more ways to buy.”

Prospective owners living nearby canbook inspection visits online and enjoya voucher incentive, while discountedapartment rentals are offered to thoseopting to take a tour.

“In the past there have been negativereports in the media about timeshareand it’s important for us to build a long-

How do resorts with a unique offering capitaliseon their individuality while striving for mass-market appeal? DAVE THACKERAY talks toSkiStar, a Scandinavian hospitality and holidayownership company to find out.

MOVINGMOUNTAINS

SkiStar is turning specialist skiresorts into year-round destinations.Opposite page, clockwise from topleft: Hemsedal Alpin Lodge inNorway, Timmerbyn and Snötorgetin Lindvallen – the latter completewith lodge-style bar area – and theFjällhotellet Cabin Village atTandådalen, all in Sälen, Sweden.

MathiasLindström

resorts at powder and pistes, and thatsunseekers will stay on their sunloungers.

SkiStar is bucking the trend, withstrategies popularising ski alternatives,including the construction of a hugeall-weather leisure dome and smartrepurposing of winter facilities. It is alsoramping up awareness of timeshare,including Sweden’s newest industryentry, SkiStar Vacation Club, as part of itsproduct offering and an additionalrevenue generation stream.

Mathias Lindström heads up sales andmarketing for SkiStar Vacation Club. AnMBA graduate and alumni of the mightyhospitality tourism company TUI, hejoined SkiStar in 2007.

“Timeshare is not a well-knownbusiness model for Swedish people ingeneral,” said Lindström. “So we’vebeen educating consumers usinglifestyle magazines and onlinemarketing.

“On our website potential customerscan get a picture of what we areoffering and even go on a virtual tour ofour resorts.”

SkiStar Vacation Club was introducedin December 2009. The holidayownership arm has two resorts inSälen – Lindvallen and Tandådalen –while the parent company also hashotels and apartments in Åre andVemdalen in Sweden, as well asHemsedal and Trysil in Norway.

As the company changes theperception of holiday ownership, so it focuses on futurising salesmethodology. Capitalising on domesticbrand equity, SkiStar Vacation Club istoday marketing almost exclusively to

workV-SkiStar-p24-25-sa-rb_Layout 1 09/12/2011 00:09 Page 24

www.skistar.com

term business model for SkiStar VacationClub where customers feel comfortablewith the product, and where the SkiStarbrand guarantees a great holidayinvestment,” added Lindström.

While SkiStar isn’t ruling out aninternational membership, it already hasa database of more than a millionScandinavian SkiStar guests.

“Swedish families often return to thesame destination, enjoying familiarityand the sense of community thisbrings,” he said. “Owning a holidayhome is deeply-embedded in theScandinavian culture, and as we onlyhave limited quality time to spend withour families there’s ever-greater value in

owning where maintenance isn’t aburden,” said Lindström.

SOMETHING MORESkiStar, which generated revenues of SEK 1.78bn in 2010, and AndermattSwiss Alps are currently in negotiationsto develop a SEK 1bn hospitality projectin Andermatt and Sedrun in Switzerland.Modernisation and linking of the twoareas is planned, to create a mega-resortduplicating the infrastructure and successof the SkiStar model in Sälen.

Andermatt Swiss Alps already ownsand operates a development project atthe intended location, comprised of 1.4 million square metres of land and a


THE RCI VIEWHaving an exchange component integrated into a nicheresort brings likeminded owners together, said RiittaHalme, affiliate manager for RCI in Scandinavia. “Just likegolfers like to try different golf courses, skiers love variety.

“But exchange is invaluable in every situation. Whenit comes to trading power obviously the winter weeksare most popular. On the other hand, off-season weekshaving lower trading power spurs prospective owners tosample your resort – a big benefit for our partners inactive sales.”● For more information on the timeshare market inScandinavia, email [email protected]

WHEN THE SUN SHINES...Despite the best efforts of every developer and parent, relaxation isn’t high onthe list of priorities of little VIPs in the family mix. But when Sälen’s 116 skiruns and 93 lifts shut down for the season, SkiStar lights up the Swedishmountains with the country’s most complete entertainment palace – Experium.

A significant investment, Experium features an adventure pool, indoorsurfing, spa and sauna suite, bowling alley, 3D cinema, gym and shops andbars. And thanks to an innovative system involving bracelets, holidaymakerssimply pick up the tab at the exit. Simple, stylish – and so very Swedish.

Not every hospitality developer has the financial muscle to createweatherproof palaces for guests, but lateral thinking in pursuit of success isabout repurposing the assets you have. For instance, those ski lifts ownedby SkiStar double up as mountain bike carriers during the warmer months!

planned 490 apartments and up to 30villas and six luxury hotels.

Meanwhile, SkiStar’s newest complex,Mountain Resort Trysil, was unveiled inDecember 2011. The 1,200-key propertyboasts apartments and hotel rooms, with aspa, restaurants, bars and shops. It ishoped apartments at Mountain ResortTrysil will be added to SkiStar VacationClub in 2013.

“Our goal is to offer SkiStar VacationClub ownership at all SkiStar’sdestinations,” said Lindström. “We’reexcited by what’s to come, and knowthis is just the beginning.”

The mountains, it seems, are ready tobe moved. V

workV-SkiStar-p24-25-sa-rb_Layout 1 09/12/2011 00:09 Page 25

Steve Pentland, founder of Group Impact and Generator Systems and oneof the industry’s great sales innovators, shares his personal insights intoselling to the next generation of shared-holiday ownership purchasers.


Today’s scenario – ■ Seven billion people alive in the world today!That’s our market.■ Economic collapse – today’s legacy ofyesterday’s excess – a game changer. ■ Less funding, fewer prospects, tighter credit,lower propensity to buy. ■ An ageing product – timeshare has beenaround for 45 years now. Is it long in the tooth?Is it still relevant? ■ The ticking time bomb of unwanted inventory– a reality often brushed under the carpet. Yes,some have tried relief; yes, some resaleoperations are successful – but the developercommunity resists the challenge to new salesability. “The (sales) force is strong in this one”.

SO WHAT’S THE ANSWER?Look again at that seven billion. Who do we sellto? The typical buyer is western and over the ageof 45. A typical owner, however, is often in their60’s and 70’s! And who doesn’t presently buy? SubBoomers, and (some developers excepted) Asiaand South America’s increasingly affluentconsumers. So it’s not like we’ve run out of people.It’s more ‘think same way – get same results’.

And how do we reach and sell to them? (mypersonal opinion only – always happy to discussover a beer).

Redefine the product – young people don’t buywhat their Dad bought. They don’t want to own‘stuff’, they want to use it. Yesterday’s ‘acquisitionsociety’ is today’s ‘consumption society’. The rulesare different for them:• “Don’t tie me in, give me complete flexibility, myterms – not yours, and if you’re going to give mebricks and sticks please make sure they blow meaway! • “Excite me – we all vacation, but we wantexperiences, trophy photographs, uniqueness andoutstanding memories.

SOMETHING MYDAD WOULD BUY!

• “Make the product easy – shorter term options,no maintenance fees, simplicity – please!• “Talk to me in my language (I’m younger – I don’tthink like you do).• “If you must sell to me (and actually I prefer thecomfort of my own cyberspace) then please havethe good grace to use familiar daily technology! I’ma visual thinker, I don’t do words and I like myinformation short, pithy, relevant and transparent.Show me beautiful pictures and videos – I’m theYouTube generation. Show me authenticity!• “Oh, and I’m going to know all about you beforeyour presentation. I have a smartphone, I’veGoogled and Trip-Advisored you, I’m watching forcontradictions and you’re going to have to workhard, and very openly, to impress me.• “Show me experiences, make my life moreinteresting, just give me bliss. I’m the Applegeneration – beauty, simplicity and it works – makeit like that. Make my veins tingle, melt my heart,seduce me – but please make it believable.”

Our own contribution to reaching the youngergeneration – Millennials to Gen Y’ers, the newmiddle classes in emerging markets and anyoneelse of the twenty-first century – is our new versionGenerator Sales System – Generator Presenter2012 (GP12). It’s simple, powerful, transparent,looks a million dollars but costs a cup of coffee,runs on iPads, tablets, desktops and walls. It’s sosimple for the rep to use, communicates with‘oomph’ and spring water clarity, bridges the gapbetween your story and customer expectation; doesauthenticity in its sleep and blows people away withits beauty.

GP12 is completely customisable, comes withover 20 years of worldwide, best in class, shared-ownership sales psychology experience and prettymuch works out of the box. RCI offers a starterversion of the system – RCI Presenter. This comes aspart of its RCITV Resort Showcase Programme and isan ideal springboard to full Generator down the line.

QUOTE: REDEFINE THE PRODUCT – YOUNG PEOPLE DON’T BUY WHAT THEIR DAD BOUGHT.THEY DON’T WANT TO OWN ‘STUFF’, THEY WANT TO USE IT. YESTERDAY’S ‘ACQUISITIONSOCIETY’ IS TODAY’S ‘CONSUMPTION SOCIETY’. STEVE PENTLAND

FINAL CALL

ABOUT STEVE PENTLAND From a financial and salesbackground, Steve Pentlandfounded his film productioncompany in 1990. A year laterthrough a business relationshipwith RCI, he discoveredtimeshare and the industryquickly became the company’score. Group Impact (film) andGenerator Systems (salessystems) have driven manycutting edge innovations thathave changed the way we sell.For more information call Steveon +44 (0)7802 333733 or [email protected]

workV-FinalCall2-p26-sa-rb_Layout 1 08/12/2011 23:38 Page 26

www.generator-systems.com

For more than 35 years, RCI® has been the exchange provider of choice for some of the most successful developers in the vacation ownership industry. With over 3.8 million members and more than 4,000 affiliated resorts worldwide, we are uniquely positioned to help you achieve your goals in shared ownership.

Success, by any measure, begins with a solid business vision. RCI is ready to support you in yours.

For more information, e-mail [email protected] or call +44 (0) 1536 314651.

RCI and related marks are registered trademarks and/or service marksin the United States and internationally. All rights reserved.©2011 RCI, LLC. All rights reserved. Printed in the U.S.A.

“Over the last six years, with the help and support of the RCI® team, Macdonald Resorts Ltd. has achieved eight RCI Gold Crown Resort Awards and an RCI Silver Crown Resort Award across our RCI-affiliated properties. Working closely with the RCI team we have enhanced our service and quality to the high standards of today, benefiting the whole Macdonald group as well as all 25,000 of our owners.”

Simon JacksonChief Executive Officer, Macdonald Resorts Ltd.RCI Affiliate since 2001

Higher standards for exceptional holiday experiences

Macdonald Elmers Court Resort, England

For more information visit:www.fractionalsummit.com

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RCI Ventures, December 2011 - EU edition