RCI Ventures Magazine: Europe - May 2012

Mohannad Sharafuddin: Timeshareisnt a product that you wake upand want to buy it has to besold. PAGE 31

Julian Houchin: I think anexchange programme is agreat addition for whole-ownership buyers. PAGE 17

Peter Booth: We had to rethink thevalue proposition we were offeringin light of todays customers beingmore empowered. PAGE 24

May 2012

VENTURESVENTURESEnterprising ideas for the vacation industry

to ten magnificent years!Cheers

In 2002, The Registry Collection programme launched as the

first-ever global luxury exchange programme.

Today, we proudly celebrate our tenth anniversary with nearly

200 affiliated properties across six continents.

Contact us at [email protected]

An luxury brand

RCI Ventures, May 2012 | 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.Front cover image courtesy of iStock images. Original articles and contributions may be reproduced ortransmitted only with written permission from the publisher. All facts and figures stated in the articles containedin this publication are provided by the contributors and no responsibility is accepted by RCI Europe for content notcreated by them, nor for any losses or other consequences resulting from advertisements or other materialappearing in this publication. You are advised to make your own enquiries and conduct further research ifnecessary. RCI Europe 2012.

Sincerely,Gordon GurnikPresident, RCI

VENTURES MAGAZINE SERVING RCIS MARKETS IN EUROPE, MAY 2012 THE MIDDLE EAST, AFRICA AND INDIA

As we come off another highlysuccessful ARDA convention andreview our event pressannouncements, we see that the lastyear has been one of big happeningsfor RCI.

Most recently, we unveiled our latest round of RCI.comenhancements, including further RCI Travel integration forNorth America and UK members, as well as PlatinumMembership online renewal and upgrade for all membersglobally. For more news about RCI products and services turnto page 8 where we highlight new affiliations to our exchangenetwork, as well as our industry-first Smartphone-optimisedversion of RCI.com, which enables users to securely bookvacations at their leisure, wherever they are, whenever theywant, from the palm of their hand. Everything we do isdesigned to improve our member experience while drivingincreased activity and occupancy to our affiliated resorts.

Its also been a big year for many of our affiliateddevelopers and industry associates. On page 24 The PestanaGroup showcases its innovative and flexible Optionsprogramme that has been created to meet the needs of thenext generation of timeshare owners. Meanwhile ourdevelopers in India, featured in the cover story on page 11,are gearing up for exponential growth in their businesses by transforming their products as well as their sales andmarketing strategies to maximise the opportunitiesafforded to them in what is now one of the worlds fastest-growing economies.

On page 17 we welcome a unique whole-ownershipresidential property model, The Residences at DubrovnikSun Gardens, to The Registry Collection. This new affiliate isnot only providing consumer finance, but is also purchasingmembership of our luxury property exchange programme asan additional buying incentive and finding it to be influentialin the decision-making process.

Sondela Nature Reserve in South Africa is helping boththe local community and its own operation through its stafftraining Academy. Establishing it has been a big investmentand a bold move, but one which is paying dividends as youwill see in the article on page 21. As recipients of TheInvestors In People award for several years, RCI has a highregard for staff training, and we have been working with theLevitin Group to provide our affiliates with a free introductorytraining programme through the recently launched RCIeSchool, which you can learn more about on page 34.

As ever, both in our print magazine and onrciventures.com, we bring you the best fresh thinking andnew ideas from across our industry in your regions. I hopeyou enjoy the read.

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

8 RCI INSIDE:The latest news for RCI affiliates,including new timeshare and fractionalresort affiliations, plus developments in developer and member services

11 COVER STORY INDIA SHOWS ITS HAND:A market report on the exceptional and unique opportunity for growth in thetimeshare industry in India

17 HERE COMES THE SUN:The Residences at Dubrovnik Sun Gardens bring unusual whole-ownershipproperties into The Registry Collection

21 IN A CLASS OF ITS OWN:Sondela Nature Reserve in South Africa is reaping the rewards of majorinvestment in staff training

24 A NEW DEAL:The Pestana Group has dramatically revised its product offering to targetcontemporary customers

28 NEW TECHNIQUES BORN OF EXPERIENCE:Rhodes-based marketers, Aegean Blue, showcase marketing strategiesthat are key to beating recessionary pressures

31 BANKING ON DUBAI:The economic downturn has hit Dubai as hard as anywhere but one MiddleEast marketer is bucking the trend

34 FINAL CALL TRAIN FOR CHANGE:SHARI LEVITIN explains how the RCI eSchool online training solution couldboost your professional credentials

India

4 | RCI Ventures, May 2012

MarketoutlookA 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

WIDER HORIZONS FOR PESTANA

Pestana will enter the US market with theSouth Beach Miami hotel.

RDO3 RETURNS TO LONDONThe Resort Development Organisations 2012 conference, RDO3, will take place on

23-25 September 2012 in London.The event will again be held at the Pestana Chelsea Bridge Hotel & Spa, a four-star hotel in

Chelsea Bridge Wharf, alongside the banks of the River Thames and close to Battersea Park. For more information visit www.rdoconference.org

The Pestana Groupis expanding its resort portfolioby adding three new propertiesin three countries whichrepresent fresh destinationofferings for this leadingPortuguese hospitalitycompany.In July this year Pestana will

be opening the doors of a 120-room hotel on South Beach inMiami. In addition it has justclosed a deal to bring hotels inthe Columbian capital ofBogot, and Uruguays largestcity, Montevideo, into its

network, taking the totalnumber of Pestana resorts inSouth America to 14.Pestana has long enjoyed

success in Brazil, having 7,000Brazilian members and,according to Peter Booth,Pestana Group managingdirector, the country will play amajor part in his companysexpansion strategy. He said:The Brazilian economy isgrowing; it has a strongcurrency and a growing numberof its population have bothmore buying power and the

desire to travel outside Brazil.Miami is a preferred holidaydestination for Brazilians andSouth Beach has a youngerpurchaser appeal, while theother two selected destinationsare also popular with thismarket. We see Brazil as a realpower house for our business,both as a destination and asource market.

For the full story on the newPestana Options programmeand more on its operations inBrazil, turn to page 24.

DEVELOPER:

The HeavenlyCollection in Malta haswon PerspectiveMagazines regionalaward for Best FractionalResort in Europe & theMiddle East.

The penthouseresidences, marketed byThe Azure Group, arelocated on the ninth floorof the five-star RadissonBlu Resort & Spa, MaltaGolden Sands, and offerluxurious suites within a

prestigiousmixed-useresort in apremiumbeachfrontlocation.

Theresort, which is affiliatedto The Registry Collection,the worlds leading luxuryexchange programme,received the award atGNEX 2012 held in Mexicoand attended by fractionaland timeshare industryleaders from around theworld.

Perry Newton, above,Azure project director,said: Not only are weproud to offer ourmembers an incredibleplace in which to holiday,but this award reinforcesour understanding of theneeds and expectations oftodays discerningtravellers in an ever-changing market,offering them a productthat is cohesive with their lifestyle anddemands. For more informationvisit www.azure.com.mt

The European leg of the 2012 RCI ChristelHouse Open will take place at Badgemore ParkGolf Club, Henley-on-Thames on 11 June 2012.

This year marks the 10th anniversary of theannual competition, which raises funds for ChristelHouse, a charity established in 1998 by RCIfounder Christel DeHaan to help childrenworldwide break the cycle of poverty. RCI will again be the title sponsor forthe event.

Other events will be held at 12locations around the globe, and theEuropean leg will see teams of fourplayers taking part in a golf tournament

followed by an industry dinner and prize-givingceremony.

Vivienne Noyes-Thomas, Europeandevelopment coordinator for Christel House, said:This year we are making the dinner an open eventfor the industry, a chance for folks to get together

in aid of a wonderful cause. For more details of sponsorship

opportunities and to reserve entry or aplace at the dinner, contact ElizabethTaylor at [email protected],Vivienne Noyes-Thomas at vnoyes-

[email protected] or AmandaWhite at [email protected].

EVENT:

EVENT:

MALTA RESORTCROWNEDREGIONS BEST

DATE SET FOR CHARITY TEE-TIME

RESORT:

The Spanish governmenthas finally passed the EuropeanTimeshare Directive into national law.

The government passed thelegislation using a Royal Decree-Law toensure it was adopted as quickly aspossible and avoid fines threatened bythe European Commission.

The Directive is of maximumharmonisation, meaning that EU MemberStates cannot dilute provisions, including:

The 14-day cooling off period An absolute ban on deposits Contracts of more than one year

are within the legislation The contract must contain detailed

information of the product and be providedin the language of the purchaser, as longas it is an official EU language.

Francisco Lizarza, chairman of theResort Development Organisation (RDO)in Spain, said: This new law sweepsaway the confusion and will help boostconsumer confidence in Spain, the mostpopular timeshare market in Europe,where almost half of European ownershave chosen to buy.

Juan Gil, Club Melis regionaldirector Spain, also welcomed theadoption of the new laws, saying theyforced companies to act ethically andprofessionally and gave consumers asafe environment in which to purchaseand use vacation club products.

For all companies like Meli thathave a long-term commitment, this willprovide a more mature and solid industrythat will benefit both consumers andindustry players, he said.

A number of additions have beenmade to the Directive legislation in Spain,and companies are advised to seekverification. The RDO has publishedguidance notes that are available to itsmembers at www.rdo.org

To read more of our exclusiveinterview with Francisco Lizarza,

visit www.rciventures.com

Holiday Club Resorts hasentered a Southern European venture withGrupo Lopesan, one of Spainsleadingproperty developers.

Following the success achieved with theacquisition of the Club Puerto CalmaGroup in March 2011, Holiday Club Resortsdecided to further invest in the CanaryIslands by signing a Heads ofAgreementon 2 April for the development of a landparcel adjacent to Villa del Conde on theCosta deMeloneras, one of the mostexclusive locations in Gran Canaria.

Calvin Lucock, managing director ofHoliday Club Canarias said: Holiday Clubis proud of this joint venturewith GrupoLopesan. The agreement is a fusion of twomarket leaders coming together in thedevelopment of touristic plots ofexceptional quality that both companiesexpect to become the finest in Europe.

Vesa Tengman, Group CEO, added: Itsa pleasure and an honour to collaboratewith such a successful company inGranCanaria. The Meloneras area is theideal location for this ambitious projectand in my opinion the finest developmentin theCanary Islands.

Grupo Lopesan is a family businessfounded in 1972 and currently chaired byEustasio Lpez. Today the company is

involved in property developmentand tourism, and has helpedconsolidate two international hotelchains, Lopesan Hotels & Resortsand IFA Hotels & Resorts, with 20 hotels located in Gran Canaria,Fuerteventura, Germany, Austriaand the Dominican Republic.

Lpez said: Grupo Lopesan isvery pleased with the agreementsigned with Holiday Club Resorts,one of Europes largestvacationownership enterprises withextensive experience in the sector.Having a strong commitment tocreating new jobs and promotingthe economy in theCanary Islands,this collaboration means anopportunity to diversify our offer and toachieve a destination of excellence inMeloneras.

Under the joint venture, GrupoLopesan will hold a majority share in the resort management business, andHoliday Club a majority in the projectssales and marketing. The project willcomprise luxurious timeshareaccommodation, consisting of one-, two-and three-bedroom villas. Constructionis scheduled to start by the end of thisyear.


HOLIDAY CLUB AND GRUPOLOPESAN JOIN FORCES

TIMESHAREDIRECTIVEBECOMES LAWIN SPAIN

Pictured from top to bottom: A taste of things to come on Gran Canaria withthe Lopesan Villa del Conde, soon to be neighboured by a new upscaletimeshare development; Vesa Tengman; Eustasio Lpez; Calvin Lucock.

DEVELOPER:

LEGISLATION:


MarketoutlookA 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

REVIEW AND DOTATOC accreditation isbecoming the industry kitemarkin Europe, enabling consumersto assure themselves they aredealing with the professionalsas opposed to the rogues. Wenow have 97 member resorts,up 11 on this time last year, andfive more in the pipeline, GeoffChapman, TATOC director, tolddelegates.

And 29 of those havebecome TATOC accreditedresorts. Our 2012 goals are todrive these figures up to 107member resorts and 500,000individual members wecurrently have 400,000. We alsoaim to become better known forwhat we are and plan tostrengthen communications andPR with media, the trade andowners, as well as with widertrade organisations such asARDA.

In answering the burningquestion of whether the new EUDirective had made a difference,Chapman was able to reportthat it had. Comparing the lastsix months of 2010 with 2011,complaints to TATOC overallwere down by 39 per centagainst genuine timesharecompanies, by 50 per centagainst sales operations, and by 26 per cent against rogueoperators, he said.

However, complaintsagainst bogus legal companiesoffering help with resale fraudswere up 180 per cent, but wealways knew those companieswould find a new place to go.

THE US VIEWFrom over the pond, Lisa AnnSchreier, owner of TimeshareInsights and The TimeshareCrusader, urged executives tomove closer to the sales decksto identify issues before theybecame real problems. Sheapplauded TATOC for bringinghigh level resort executives andowners together to identify theproblems they face.

She added: You are right totalk about the new generationtimeshare purchaser. Forevernow is three years. The new genpurchasers wont think 50 yearsinto the future and they dontwant to be sold anything, theylike to buy things. Peoplebought 35 million iPhones lastquarter and you dont seeApple going around bribingpeople. Imagine what wouldhappen if Apple sold timeshare?

The need for exit strategiesfeatured in Schreiers conferenceaddress: Why wont resorts buyunwanted units back? If youbelieve in your product you knowyou can sell it for 100 per centmore than you buy it back for.

And on sales techniques shesaid: Though we talk about hardsell giving the industry a badname, unfortunately people arestill being subjected to three-hour presentations. And you, theconsumers, have the power tochange this because nothinghappens on the sales decks ifyou dont pull out your wallet.

LESSON LEARNEDSimon Jackson, CEO ofMacdonald Resorts Limited,presented some startlingstatistics. He said: Recentresearch revealed there areapproximately 300,000 resaleweeks on the market currentlyand, via all sources, 10,000 ayear were being sold. A 30-yearsupply! Stating that up to 70 percent of all questions received onthe TATOC Helpline were abouttimeshare resales, he added:Ive met owners who want keyindustry people to do somethingabout this.

Last year Macdonald Resortssurveyed 13,000 long-termowners and asked how many ofthem would be looking for an

exit of ownership in the short- tomedium-term. Jackson said:We were surprised at how highthe number was and realised wehad to plan accordingly. At lastyears AGMs, five of our clubsgave a mandate to theircommittees supportingconstitutional changes tofacilitate a possible future exitstrategy for owners. MacdonaldResorts fully supported theseclub initiatives and is nowlooking at creating new productswith a shorter ownership timespan and definite end date.

Our research also showedthat the main reason peoplewerent buying timeshare was afear of not being able to sell it onand leaving a legacy behind thatwould create problems for theirheirs.

We at Macdonald Resortsare positive about this industryand want our company to beoperating in 25 years time, butthe product we sell and howwe sell it might be different.

Visit www.tatoc.co.uk for moreinformation.

TATOC MEETING THE CHALLENGE

The annual TATOC Conference is one of the most popular industry events,attracting an international audience. This years event did not disappoint.HELEN FOSTER highlights some of the hard talking and insider insights.

EVENT:

Left to right: TATOCs Harry Taylor presents acceditation plaques to Simon Jackson for the Plas Talgarth resortin Wales, Lisa Ann Schreier, Geoff Chapman.

CLOSING COMMENTS

FRACTIONAL SUMMIT SHAPING UPThe 2012 Fractional Summit staged by Piers Brown, founder of

Fractional Life, and held in London, defied economic trends with asignificant number of new faces and potential fractional resort developersin attendance. HELEN FOSTER reports on the headline discussions.


Peter Kempf, CEO Peter Kempf International, on budget:You must ask yourself do we need a bar tender at10.30am or multiple doormen at 3.00am? As long as yourowners feel comfortable in terms of the service levels andresales value is that going to have more cache and keyvalue?

Maintenance plans: Build in a reserve fund for capital expenditure andmanage a sinking fund properly seven years down the road your ownersshould not be surprised. In Europe many buyers come from the US and Canadaso dont forget exchange rate fluctuations can be a big thing for them and leadto huge increases in dues, so set expectations at sale.

Andy Sirkin, founder Sirkin Fractional Lawyers, on leadgeneration: Many super high-end guests do not want rentalvisitors on resort, so be careful how you manage your guests.For those who are interested in a return through rental it isbecoming more acceptable. Operate different policies acrossdifferent seasons.

Christine Gregory, new business support, Citadel Trustees,on model positioning: Fractional must not be sold as aninvestment and you must be careful how you position anyanticipated uplift in value on resale and ensure youre notconsidered as a collective investment scheme or you maylose exemptions under the EU Timeshare Directive.

Perry Newton, executive director of Azure Services andboard member of Golden Sands Resorts, Malta, on closinga sale: Today we are spending money on our clientenrichment programme to see where we can make a saleearlier where we can make a difference in the purchasejourney.

We have segmented every process a client goes through to make apurchase and its like an assault course! We put ourselves in our clientsshoes How am I picked up at the airport? Welcomed at the resort? Am Istacked and racked treated as a second-class citizen and not as someonewho can buy at this property? The little changes weve made as a result of thisprocess have made the biggest differences to our cancellation rates.

For more information on the Boutique Hotel Summit, [email protected] or phone +44 (0)208 340 7989.

As always, the Summit is the place toattend for entrants to the fractionalmarket. The panel on exchange withactual customers was great.Ioannis Verdelis, Best International

As a first-time attendee, I found theevent met my goals of improving myknowledge of the fractional business andmeeting key players within this industrysegment.Steven Dow, Diamond ResortsInternational

Piers Brown, founder of Fractional Life,said:During difficulttimes the industrycontinues todemonstrate productinnovation and a

willingnesstoshare best practice bylearning from the experiences andknowledge of the best in the business.

To ensure this continues, we areintroducing some exciting newelements to our US and MENAconferences, while expanding theirfocus to recognise the increasinglysoftening distinction betweentraditional second home ownership,fractional ownership, travel anddestination clubs, vacation rental andluxury hotels.

We have also launched a standaloneboutique hotel conference BoutiqueHotel Summit, May 21-22 inLondon which is attracting delegatesfrom across the resort developmentsector who recognise the vital role that ahotel plays in a mixed-use project.

TALKING POINTS

EVENT:


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

As ARDA was a global event this year, it gave RCI the idealplatform to reveal that it added more than 150 new properties toits global exchange programme last year. These additions joinRCIs network of more than 4,000 affiliated resorts and latestEuropean affiliates include:

Holiday Club Saimaa, Finland developer, Holiday ClubResorts

Sonmez Falezyum Residence, Turkey developer, VolkanSonmez

Onat Garden, Turkey developer, Nihat Tuzun Turim Estrela do Vau Beach Resort, Portugal a new

entrant to the industry by Turim Hotels, a Portuguese hospitalitygroup with 11 hotels in different locations across the country.

GROWING RESORT NETWORK

THE REGISTRY COLLECTION EXPANDSRCIs luxury exchange programme, The Registry Collection,celebrated a decade of achievement by announcing the additionof 18 new properties to its network of affiliated resorts in 2011.The programme now has approximately 200 properties availablefor exchange in 40 countries, across six continents.

We had another tremendous year of growth, adding someexclusive resorts to our network, said Gregg Anderson, globalvice president, The Registry Collection. We are proud of thesupport we have provided to our affiliates and their owners sinceour founding in 1992, and are looking forward to the next 10years and beyond.

Among the new resorts are Maltas Heavenly Collection atGolden Sands, St. Lucias Freedom Bay Residences and TheManhattan Club Penthouse Suites in New York City.

LISTEN TO THE CHATTERRCI has launched a Timeshare Online Listening Centre to help itsaffiliates monitor online conversations, respond to discussions, andprotect and build positive brand reputations.

Social media adoption continues to grow rapidly as timeshareowners and prospective buyers become vocal online, said PhilBrojan, senior vice president, Global Marketing, RCI.

With so many discussions about timeshare on the web and insocial media, its essential for stakeholders to be aware of, andparticipate in, these conversations to build strong reputations anddeep relationships, especially with those who are influential online.

Affiliates taking advantage of the Timeshare Online ListeningCentre, which is serviced in English, receive customised reportingthat includes brand mentions online and customer comment.

Brojan added: As a trusted exchange partner we are invested inyour success so you can be sure well be working overtime to helpsafeguard your brands online.

NEW RESORT DIRECTORYRCI will launch a new Directory of Resorts in November which willfeature full resort and unit highlights, fresh destination photography,simplified RCI guides to membership use and inspiring destinationfeatures. The directory will be available in print and digital editions.

APPY DAYSRCI has introduced several new services to help members andaffiliates access information from their mobile devices. After thesuccess of the RCI iApp, the company introduced the industry-firstSmartphone-optimised RCI.com. It allows Weeks members to bookholidays directly from a mobile keypad, making portable RCI.comsurfing easier. Users can also enjoy traditional website tools such asaccessing account information, searching for holiday options anddepositing weeks. This capability is coming for Points members too.

Holiday ClubSaimaa

RCI unveiled a raft of major newsannouncements at ARDA World, the American Resort DevelopmentAssociation convention, which was held in Las Vegas in April.

UNVEILED AT ARDA

German timeshare developerMondi-Holiday is celebratingafter Holiday Club Grundlseeachieved 20 consecutive years ofRCI Gold Crown status this year.

The resort is located in theSalzkammergut region ofAustria. Dr Mike Doerr,managing director of Mondi-Holiday, said the 20th award wasan honour that reflected thehard work of the resorts staff.

The RCI awards are maybe the most unbiasedhotel and resort rating system in the world. Not onlyare they based on many individual and very detailedguest reports, but RCI exchange guests are veryexperienced holidaymakers and correspondinglydemanding, he said.

The Grundlsee staff members cannot be praisedenough for this great achievement particularly as manyof them joined the team at the very beginning likeresort director Franz Kromoser.

Stefan Namyslo, RCIs affiliate manager for Germany,Austria and Switzerland, added: Retaining RCI GoldCrown status over 20 years is an exceptional achieve-ment which very few resorts can claim to have done.

Each time I visit Mondi Holiday Grundlsee resort Iam reminded of why it is so remarkable. It combineshigh-quality apartments and great facilities withdelivery of customer service excellence and all this inone of the most beautiful Austrian locations. Littlewonder it is so highly rated by our members.


TWOGOLDENDECADES FORAUSTRIAN RESORT

MORE AWARDSA number of resorts in the popular Spanish destinationof Mlaga are also celebrating continued RCI GoldCrown award recognition. Diamond Resorts at SaharaSunset Club and four Macdonald Resorts MacdonaldDoa Lola Resort, Macdonald Leila Playa Resort,Macdonald Villacana Resort and La Ermita have allachieved this RCI status again for 2012.

RCI GREEN AWARDS FOREARTH-FRIENDLY AFFILIATESThe European winners of the 2011RCI Green Awards were honoured atthe recent ARDA World conventionin Las Vegas.

A total of 30 submissions werereceived for the European Award,using a self-assessment form whichwas reviewed and scored byProfessor Peter Burns, Professor ofInternational Tourism andDevelopment and director of theCentre for Tourism Policy Studies atthe University of Brighton in the UK.

Making it to the final three werethe Langdale Estate in the LakeDistrict, Trenython Manor inCornwall both UK, and SaharaSunset Club in Malag, Spain.

In making the awards, ProfessorBurns said: The Langdale Estatehas shifted to a co-ordinatedapproach that perfectly blends socialresponsibility with a dynamic greenagenda that is meeting both businessand increasingly environmentally-literate consumer demand.

Trenython Manor plays animportant role in the maintenance ofa sustainable local communitythrough sponsorships andassistance to local social enterpriseorganisations. It is quite clear thatthe environmental agenda isembedded in corporate culture.

Sahara Sunset Clubs sheerenthusiasm of the managementteam to do the right thing, even to the extent of includingenvironmental awareness inchildrens play activities, works inachieving environmental goalsbecause it is backed by meticulouspaperwork: not only of their ownactivities but of the environmentalcredentials of all their suppliers andoperational partners.

LEARN MORE ONLINEHave you visited www.rciventures.com yet? In the year since its launch visits to

the site have topped 40,000 and industry experts from around the world now regularlycontribute their insights and top tips. It is the must have timeshare industry companion.

Top: Franz Kromoser, resortdirector, is the proud recipient ofthe RCI Gold Crown award forMondis Holiday Club Grundlseewhich achieved the exceptional featof retaining the award for the 20thconsecutive year.

Middle: Salvatore Di Caro, resortmanager, Sahara Sunset Club,displays the resorts 2012 RCI GoldCrown plaque with, from left,Begoa Aguirre, resort manager,Whitesands, in Menorca, AlexandraBarham, resort manager for RoyalOasis at Pueblo Quinta and RoyalOasis at Benal Beach, RCIs SamKuczynski and Carmina Saiz,regional director, Diamond Resortsin Spain.

Bottom: Receiving the RCI GoldCrown 2012 award on behalf ofMacdonald Doa Lola Resort arengel Pareja, centre, and SebastinUrqua with RCIs Sam Kuczynski.

With so much cyber chatter out there, HELEN FOSTER looks atLiveShareTravel.com one voice which is being heard above the din.


ITS NOT just the consumerson the street who are looking forreal value in their spending. Even large organisations arebeing more selective in puttingbudget to project, which is whyRCI chose to sponsorLiveShareTravel.com, an onlineleisure lifestyle magazine whichcertainly commands an audience.

The sites statistics areimpressive. It attracts an averageof 168,000 visits a month and,using an extensive social medianetwork, its content reaches afurther 774,000 eyes eachmonth, putting your product infront of approximately 12 millionconsumers a year.

Equally impressive is thestrategy behind this onlinemarketing portal, which islargely dedicated to shared-ownership products, and that isvery much the soft sell. The sitecontent is a mix of destinationattractions and resortshowcasing, presented usinghigh-quality photography andvideo footage, together witheditorial and interviews bothwritten and to camera withresort staff, guests, tourists andlocal people running visitorattractions. The content mix iscrafted to take site visitors on anemotional journey and give themreal time experience of life inthat location and on resort.

Kate Karagholi, director ofMarketing for RCI in Europe,said: RCI has subscribed toLiveShareTravel.com because ittakes an approach to marketingwe fully support it letstimeshare owners tell our storyfor us and allows the resorts to

MAKING WAVES, NOT NOISE

speak for themselves. We arepopulating our pages on the sitewith RCI member experiencesand testimonials to supplementour product information and planto use our space as a platform tolet our members engage visitors,as well as a conduit forconsumer education as to thevalue of timeshare ownershipand RCI membership.

The marketing packages areflexible and vary in scale and cost,from fully-branded sponsorshipto full media deals. The latter isbased on a weeks stay on resortby LiveShareTravels team ofprofessional travel writers andonline marketers, who produceon-resort interviews, videos andfeatures that capture the actualexperience of holidaying at theresort in all its differentaspects. This content ishoused on a co-brandedmicro site andhighlighted in the HomePage. Scaled downpackages comprisepictures, video and othereditorial and advertisingopportunities. Allcontent incorporateslinks to clients salesand marketing contacts.

LiveShareTravel directorSarah Lee said: LiveShareTravelis dedicated to showcasing thebeauty of shared ownership. Ourreaders are passionate abouttravel and visit us to actively seektheir next leisure lifestyleinvestment. Increasingly, onlinecommunities are the first placepeople go to research products,services and opportunities,which makes third party

QUOTE: OUR READERS ARE PASSIONATE ABOUT TRAVELAND VISIT US TO ACTIVELY SEEK THEIR NEXT LEISURELIFESTYLE INVESTMENT. SARAH LEE

MARKETING

recommendationson these popularnetworks a hotcommodity.Asmuch as 65 percent of our sitetraffic comes fromsearch whichmeans people

searching for our clients will betaken to our third partyrecommendations.

Were delighted to have RCIonboard with LiveShareTravel.We enjoy a long-standingrelationship with the companyand are excited by the pioneeringonline social media projects it isundertaking to share informationabout holiday exchange far andwide. Recent enhancements to

RCI.com have made the RCImember holiday planningjourney far easier and more fun.

LiveShareTravel sharesRCIs philosophy of respectingthe consumer the timeshareowner and RCI member andmaking sure they have the bestinformation and tools to make itas easy as possible for them toget the holidays they haveworked hard for and deserve.

For more information anddetails of a Media PackageSummer Sale running until theend of July, contact Sarah Lee [email protected] see www.livesharetravel.com

LiveShareTraveldirector Sarah Leeand the onlinemagazines website.


SHOWSITS HAND

India

BOUNDLESS HORIZONSThe opportunities for timeshare development inIndia are huge, especially for those internationally-recognised brands already testing the territory.

While city hoteliers feeling the squeeze of slashedspending on business travel can offer timeshare andenjoy an uplift in their occupancy rates, thoselooking for modestly-priced land banks in out-of-

In a world shrunken bytechnology and cheapertravel, rare are theopportunities for the

developer to grow new andprofitable regional businessoperations. DAVE THACKERAYdiscovers that India is earningits rights of passage as atimeshare industry leader,with an intriguing start to hisinvestigation into its growth

potential...

IF YOU go down to the Nevada desert youmay be surprised to find that in thegambling oasis of Las Vegas there arevirtually as many hotel rooms as in the wholeof India. Vegas, according to STR Globalslatest market snapshot, has 167,806 keys.

India, with half of its 1.21 billionpopulation now thirsting for travel, hosted just168,856 keys. Little wonder against a backdropof western economic troubles, this paradox ofscale has been setting tourism tongues waggingacross the world.

Thats India, the country of 7.45 per centaverage GDP growth since 2000; with an estimated600 million people travelling domestically; andwhere the upper class demographic increases byaround 15 per cent every year.

One of the strongest and most admiredcharacteristics of the Indian population is theirunrelenting industriousness. In recent years thisexceptional productivity across the nation hasjustifiably resulted in financial rewards for manymillions of its workers and, consequently, thedesire for quality time with their families has risendramatically.

All the ingredients for timeshare success areclearly in place in the country. The emotional andfinancial logic of becoming a timeshare owner/member has already proven an irresistibleproposition to the 350,000 owners across India,while some industry commentators speculate thatthere are more than 150 million prospectiveowners waiting in the wings.

COVER STORY

QUOTE: I AM CONVINCED IN MY SONSLIFETIME THE RULER OF THE FREE

WORLD WILL BE INDIA. JOHN SPENCE


town destinations favoured by the time-poor, cash-rich middle classes will also find plenty of idealholiday ownership investment opportunities.

According to research commissioned by RCI,demand for timeshare in India is likely to grow atapproximately 16 per cent per annum up to 2015,facilitated by a growth in product supply of approximately 12 per cent per annum over the sameperiod.

Because many participants in the Indian markettoday are committed to building a strong industry,working with a trade body engaged in thelobbying of central government policy makers, theindustry is primed to deliver much to those withthe long-term vision and understanding of acountry with possibilities like no other.

ROYAL PIONEERSLittle surprise that one of the few men in theworld with the official Ernst & Young title of BestEntrepreneur should have capitalised on thepotential that is India, way ahead of the curve.

John Spences Royal Goan Beach Club is seen asa model of Indian timeshare, but like the airplanes

bringing the guests into the resortweek after week, Spences Indianplans came right out of the blue.I had planned for the

development to be in theCaribbean and then RCI invited meto a conference in Hyderabad,

Spence, founder and chairman of the Karma RoyalGroup, told RCI Ventures. It was back in 1993 andRCI had just started its operations in India. Duringthat visit I could see India represented a hugeopportunity it had an emerging middle class; Goawas simply a magnificent place; land was cheap,and nobody was out there doing what I was doingso I took a punt. I did a Christopher Columbus inreverse and, like much in my life, it was a case ofright place, right time.

Nearly 20 years later and with seven Indianresorts, Spence and Royal Resorts have seen acavalcade of immense changes to Indias economicand cultural DNA many predicted. Spence citesjust one example when he said: I saw a poster putup by a mobile phone company at the airport inMumbai addressed to the residents of the State ofMaharastra, which has a population of around 120million saying Happy New Year to our users, all20 million of you. The numbers are just fantastic.

He acknowledges that with increasedopportunities comes increased cost: India has gotvery expensive with Mumbai now being a moreexpensive city than London. I am convinced in mysons lifetime the ruler of the free world will be

QUOTE: AS MANY NEW CARS ARE SOLDHERE IN JUST OVER A MONTH AS THEREARE TIMESHARE OWNERS. RAJIV SAWHNEY

COVER STORY

John Spence

Royal Goan Beach Club isone of seven RoyalResorts in India. JohnSpence, founder, sayseven though operatingcosts have increased inIndia, so have theopportunities.

ROYAL RESORTS


India. There are definitelyopportunities there forhotels and timeshare.

You read different statswhich put the middle classessomewhere between five to 15 percent of the population which represents 50 to200 million potential purchasers. Although theyare not going to be able to afford our productuntil they reach a certain age, which in Indiatends to be in their 40s.

The purchaser profile is very broad. A family husband, wife and two children; average age of35 to 40, and really not so very different fromthe buyers we saw in Tenerife during the 80s.

Spence points out that at present there are fewmarketing databases which means going for massvolume through a variety of marketing media. We use a combination of telemarketing, directmails, off the page advertising and OPCs, and runin-house programmes with existing clients whichare much cheaper, and fly-buys which are higher incost, he said.

When I started in India it was $5 a tour today it costs $200 a tour. The cost of operationhas increased, but the opportunities have alsoincreased. You hear stats of 20 per cent year-on-year economic growth and there is ahuge desire among the middle classes to spendon product, especially western products, as theyhave grown up watching TV and now they havethe income to buy all those things theyve seenon the screen.

THE MAHINDRA MODELSince joining Mahindra Holidays & Resorts back inMay 2011, Rajiv Sawhney, managing director, andhis team have worked relentlessly enhancing themember experience across every touchpoint. Thecompany, part of the $14.4 billion multinationalMahindra Group, is steadfast in its confidence andassertion that the glory days for the countrystimeshare industry lie ahead. The main thing is tolook at how we can get a bigger slice of thegrowing holiday market, said Sawhney.

Airline traffic is growing at a rate of more than15 per cent every year, clearly demonstrating thestrong inclination of people to travel to and fromIndia. Club Mahindra is ready to expand both itsmember base and resort portfolio accordingly.Sawhney said: Consider the amount of hotelrooms taken versus timeshare units. If we take theUS as a benchmark, the timeshare industry inIndia has the capacity to grow by up to five or sixtimes merely to catch up with that market.

Today Club Mahindra has close to 150,000

India


STERLING IN REVOLUTIONThere are few companies in the timeshare industry that haveembarked on a more transformative programme of works thanSterling Holiday Resorts which, in 2012, is implementing astrategy that could be described as both a revolution, andrevolutionary. Tearing down some resorts, refurbishing others,and essentially leaving no stone unturned is the initiative thatwill reward Sterlings loyal members and delight the owner-to-be with a vibrant holiday experience.

The companys 11 owned resorts are beingtransformed at architect-level, with guestrooms being refurbished in the first stagebefore public areas get a makeover. Crucially,Sterling has agreements with owners of thoseleased resorts, which are not new to themarket, to ensure their units will benefit fromthe same treatment.

The resort redevelopment strategy is a matter of duty, aswell as utmost importance, said Ramesh Ramanathan,managing director of Sterling Holiday Resorts. Most of ourresorts were built in the mid-1990s and almost everything haschanged since then. Plumbing systems, telephone systems itsall moved on. And todays resorts are bringing eco-friendlyoperations on-stream so were making sure were addressingthose, too, he said.

Each resort will take between 60-90 days. Were doing twoat a time, and we expect the programme to be completedwithin 12-15 months.

The biggest changes are at Green Vistas, Munnar and LakeView, Kodaikanal, which are being entirely rebuilt and set tocome back on-stream by the start of the summer season inApril 2012.

It represents a complete reboot for Sterling Resorts, and a

COVER STORY

members, holidaying at 36 properties. The standardmembership package is a 25-year term, with theprice of a floating week averaging $6,000.

While many resort operators in establishedmarkets adapt their ownership models to reflectdemand for term memberships and changingconsumer demographics, Club Mahindra is a torchbearer with its own full membership feeder system,known as Zest.

Launched in 2006, Zest targets young urbanfamilies looking for high-qualityshort breaks. Members can take sixdays at any of the six Zest resorts, fora period of 10 years.As well as growing its domestic

footprint, Club Mahindrasexecutives are investigating

opportunities in neighbouring countries popularwith nationals, such as Sri Lanka, Thailand andMalaysia. Sawhney explained: Wed like to give ourmembers the chance to explore and enjoy a home-from-home experience, so they can have the best ofboth worlds.

Being hugely positive for the future, he added:Given the economic growth which this generationhas seen, and given that people are much more futurepositive and confident, which wasnt the case adecade ago, the willingness to invest and put moneyup front is much greater. Mobility is there, as is thespend on discretionary products. All in all, this addsup to an ideal environment for this industry toexpand significantly.

Rajiv Sawhney

Above left: Club Mahindras Masinagudi, Zestresort, and above right, Mahindra Binsarresort, designed to appeal to the younger

purchaser offering short breaks.

Above right: Sterling Holiday Resorts istransforming its 11 owned properties to bringthem up-to-date to meet the expectations of

todays more demanding owners.

RameshRamanathan

CLUB MAHINDRA

STERLING HOLIDA

STERLING HOLIDA

CLUB MAHINDRA

QUOTE: IN THE PAST PEOPLE USED TO BUY TIMESHARE AS AVALUE-FOR-MONEY PRODUCT BUT NOW THEYRE BUYING ITON A EXPERIENTIAL LEVEL. RAMESH RAMANATHAN


AY RESORTS

AY RESORTS

INDIA UNDER THE MICROSCOPEAkshay Kulkarni isexecutive director ofhospitality services in SouthAsia for consultants Cushman & Wakefield.

RCI Ventures asked him to deliver his verdict on the future oftimeshare in India.

RCI VENTURES (RCIV): Why do you think none of the majorinternational hotel brands have entered India with mixed-useresorts? AKSHAY KULKARNI (AK): One of the main reasons for thegrowth of the mixed-use resort market was the demand forsecond homes in the US and Europe. However, India still hasntseen this happen as yet. The majority of the middle class is stillin the process of acquiring their first homes. It is only once thisresidential market matures, one will see the larger playersenter.

RCIV: What do you believe the industry needs to do to becomemore appealing to international investors and developers? AK: There is a perception that the industry in India suffers frompoor governance in the resort sector. AIRDA has over the yearstaken several initiatives to address these issues and as a self-regulatory body has a set code of ethics and represents the developers in government forums. The industry also needsto source better trained manpower through tie-ups with hotelschools and stronger in-house training programmes.

RCIV: What do you think is the optimum price for a timeshareweek in India? AK: There is no such thing as an optimum price for a timeshareweek in India. The number of diverse destinations ranging fromGoa to Uttarakhand with the significant differences indevelopment costs, tax policies and operating costs in differentregions dictate the price from region to region.

Any price needs to take into account the impact of inflation.The middle class is more susceptible to inflationary pressuresand often the discretionary spends, such as vacations, tend tosuffer.

RCIV: Do you think Indian timeshare has a big opportunity togrow into the future?AK: Growing incomes and smaller families are expected toprovide the timeshare industry with a great platform to grow.The major opportunity would initially be in the holidaydestination space but developers could also make investmentsin the religious tourism space, as a well-connected network ofresorts covering key religious centres could attract not onlydomestic travellers but also non-resident Indians.

Flexibility will be key. Split weeks, innovative systems ofearning points, and timeshare as part of a larger resortdevelopment are all strategies operators and developers couldseek to leverage to increase returns.

India


show of confidence in the future by its owners, Bay Capital Investments.In the past seven to eight years Sterling hasnt really sold anything, so were

building out our marketing programmes from the bottom, putting together ourteams with the right product and selling systems, said Ramanathan.

The product were now selling is our own version of a points product and istotally flexible. And were doing home calls, venue sales and franchisee sales. In thepast people used to buy timeshare as a value-for-money product but theyre nowbuying it on an experiential level.

THE TRADE BODYThe All Indian Resort Development Association (AIRDA) has a powerfulrecruitment tool up its sleeve: only its members are eligible for the nations hotelclassification system. In a country where brand is everything, wearing this badge isan official endorsement no timeshare property can afford to ignore.

BS Rathor is AIRDAs chairman, a role he has made his own since leaving theFord Motor Company to make the short move across Madras (now Chennai) to

focus on the ethical and disciplined growth of a fledgling industry.Lobbying central government is a constant feature of Rathors

schedule. Whenever they think of hospitality, they always think ofhotels first; we've got to lobby hard for that because timeshare ispivotal in developing economic contributions and wealth creationin rural areas, he said.Thats not to say the Ministry of Tourism isnt well aware of

timeshare. AIRDA and RCI worked closely on proposing that the hotel classificationguidelines be extended to holiday ownership resorts. The proposal was adopted in2005.

Said Rathor: Were just scratching the surface and the industry has a long wayto go. We can't simply import a model from the US or Europe; you have tocustomise your business operations to the local environment.

Rathor is in no doubt that the industrys future growth is reliant on outsideinfluences. Industry expansion depends on big players coming in. Hoteloccupancy rates have been very high in India, but have plummeted in the last fewyears because of the global recession. That opens up the opportunity for hotelbrands to diversify their product into mixed-use.

QUOTE: OPPORTUNITIES IN INDIA FOR THE DEVELOPER ARE IMMENSE. INDIAIS UNIQUE, OFFERING ALL KINDS OF HOLIDAY EXPERIENCES - BEACHES,SPIRITUAL, CULTURAL, NATURE AND WELLNESS HOLIDAYS. JOHN SPENCE

COVER STORY

Woods n Spice, near the perimeter of the Periyar Wildlife Sanctuary inThekkady, is the latest addition to the Sterling Holidays Resort network.

STERLING HOLIDAY RESORTS

India

BS Rathor

YOUR NEXT MOVE"Travel and tourism is one of thefastest growing industries in India,with timeshare doing particularlywell, says Radhika Shastry,managing director of RCI India.Thats down to improvements ininfrastructure, a rising disposable

income and adesire for uniqueholidayexperiences."With so many

new players in theindustry,

educational programmes areinvaluable. We were pleased to hostthe Shared Ownership Conference toprovide a learning platform for bothexisting as well as potentialdevelopers."

That Shared OwnershipConference the first of its kind in theregion took place in Mumbai. Onehundred delegates were expected atthe conference, but more than 180filled the auditorium on the day.

So is the time right for a majorglobal player to enter the industry?Shastry thinks so. It seems to methat there is a huge opportunity for ajoint venture between an internationalhotel brand and a domestic hospitalitycompany with the complementaryexperience of the Indianholidaymakers wants and needs,she said.

Between them they could craftthe definitive template for the futureof timeshare here in India.

For more information abouttimeshare in India, [email protected] for some tips on top Indiandevelopment hotspots from a reportentitled Timeshare in India:Establishing Perspectives and BustingMyths, by Cushman & Wakefield, visit www.rciventures.com

V

extend the airport here has just been finishedin anticipation of continued growth in flights,and last year BA named Dubrovnik as one ofthe most popular travel destinations acrossits global network. It's getting an awful lot ofgood press, and the growth is strong.

THE BUSINESS MODELDubrovnik Sun Gardens is unusual for anaffiliate of The Registry Collection, as it onlysells whole-ownership properties. Its 207residences have both garden and sea viewsof the Adriatic and 25 units have beenreleased for sale. With interior designinspired by the acclaimed Hirsch Bedner &Associates, first release prices range from170,000 (149,000) to 555,000 (488,000).The resort offers 60 per cent LTV mortgagesat competitive rates arranged through ErsteBank of Vienna, which is unusual in thecontext of resort real estate in Croatia. We released our first 25 units to the

market in August last year after securingfreehold ownership on the units. We havesince completed on four and are in the


FRACTIONAL

JUST over 11 kilometres north ofDubrovnik's Old Town on the Dalmatiancoast lies one of The Registry Collection'snewest affiliates, The Residences atDubrovnik Sun Gardens.This five-star mixed-use resort is owned

by iO Adria Limited, and features 207 one- andtwo-bedroom residences ranging in size from44 to 111 square metres. It also includes afive-star 201-key contemporary Radisson BluHotel, conference facilities for up to 900delegates, its own secluded beach, acomprehensive spa (winner of the SpaTraveller Award for Best International NewSpa), 13 bars and restaurants, three outdoorpools and an extensive sports club whichboasts a five-a-side floodlit football pitch andthree clay tennis courts. This is the first phaseof a planned three-phase development whichwill see the addition of another five-star 125key hotel and a further 200 residential units.

THE DEVELOPERiO Adria, formerly Jupiter Adria Limited,was set up in 2005 as an investment fundunder London-listed fund manager JupiterFund Management plc. In 2011 it separatedfrom Jupiter Fund Management, andrebranded to continue its focus onbecoming Croatia's leading high-endhospitality and tourism company.

QUOTE: I THINK AN EXCHANGE PROGRAMME IS A GREAT ADDITION FOR WHOLE-OWNERSHIPBUYERS AND I CAN SEE MANY MORE WHOLE OWNERSHIP PROJECTS EMBRACING IT IN THEFUTURE. YOU COULD DESCRIBE IT AS THE REAL BONUS OF OUR OFFER. JULIAN HOUCHIN

As well as the Dubrovnik resort, it hasseveral other projects in the pipeline threegolf resort projects planned in Istria, threemarina resort-based projects planned fornorthern Dalmatia, and it also owns 43hectares of land on the island of Sipan, offthe coast of Dubrovnik.iO Adria commercial director Julian

Houchin says there are numerous reasonswhy the company is so wholeheartedlybehind Dubrovnik specifically and Croatia ingeneral. We've been monitoring the markethere for 10 years and it has absolutely hugepotential at the deluxe end of the market.Croatia is joining the EU in 2013, while itcontinues to be projected as one of the

fastest growing tourismdestinations in Europe. InDubrovnik alone, we arealready experiencing a 20 per cent growth perannum in visitornumbers, he explains. The first phase of a

three-phase plan toJulian Houchin

GEORGE SELL profiles Dubrovnik Sun Gardens, a recentaffiliate to The Registry Collection and a five-starresidential resort offering a unique whole-ownershipsecond home experience on Croatias Adriatic coast.

HERECOMESTHE SUN

the low and shoulder season Novemberthrough to April we have a solid PRplatform in the UK and in German andRussian-speaking Europe, delivering a lot ofgood coverage which drives leads to ourwebsite. We have good lead generationcampaigns targeting our key markets throughthird-party alliances, and these are payingdividends across a variety of territories. Wealso work closely with strategic brokerpartners. Brokers like the resort, as we are apremium waterfront product which is sold ona freehold basis most unusual in Croatia. From April/May to October the focus

moves to in-resort and the wider range of


process of completing on another four, saysHouchin. We have a very healthy pipeline ofprospects and are encouraged by the interestlevels from many markets across Europe andwe expect to convert much of this interest intoadditional sales over the next few months. It'ssteady and in the current climate we areconfident about the way things are going.The buyers are a very disparate group in

terms of nationality. Houchin explains: Thisis a very international resort, with visitorsfrom 92 countries in 2011, up from 72 theyear before. Of those 92 source markets mainly spanning western, central and easternEurope about 45 are interested in the realestate offering, so its a very varied mix. Thereis no one market that dominates and we areencouraged to see such diversity of intereststemming largely from prospects that havean affinity with Dubrovnik and this part ofCroatia. We have strong interest coming fromthe Czech Republic, Hungary, Poland,Germany, Austria, The Netherlands, Russia,Ukraine and, of course, the Brits who arestarting to show signs of renewed interest inbuying second homes along the AdriaticCoast. We also have a growing interest fromthe Croatian and regional diaspora.With such a wide potential audience to

reach with its marketing messages, iO Adriahas developed a strategy that variesaccording to the season. Houchin says: In

QUOTE:WE JUST LOOK AT A WHOLE OWNER AS HAVING 52 WEEKS AS OPPOSED TO FOUR ORSIX. THEY WILL BE HIGH YIELDING MEMBERS BECAUSE WE THINK THE TRANSACTION VOLUMEIS GOING TO BE SIGNIFICANTLY HIGHER THAN A TYPICAL FRACTIONAL OWNER. MATT HOLMES

FRACTIONAL

visitors to Dubrovnik. Houchin says: We haveover a million visitors to the Dubrovnik regionevery summer, so we have a lot of localactivities to generate interest among them.We also host open houses and a lot of in-resort marketing awareness to encourageour in-resort guests to visit the sales office.Guests who come to visit us are genuinelyinterested in what we are selling prompted bytheir positive in-resort experience and theopportunity to buy waterfront resort realestate on the doorstep of one of Europesfastest growing tourism destinations.Buyers are attracted by a successful

rental programme with a three year track


record, which Houchin says is generatingupwards of four per cent net yields afterannual fees. In the summer our Residencesare in high demand for families looking torent family-type accommodation set within aresort context. As such our two-bedroomResidences rent out fast and command rentalrates of upwards of 550 per night,comparable with resort prices in southernFrance and Tuscany, all of which helps fuelthe rental returns for owners. Furthermore,the resort is quickly becoming recognised asone of Europes leading meeting andconference destinations, helping to generateyear-round business for the resort andincome for Residence owners.Another draw is three years' membership

of The Registry Collection, which is paid for byiO Adria. Houchin an ex-Wyndham/RCIsenior director, says: Having worked withThe Registry Collection myself and having

been involved with the development of theprogramme, I think that one of the greatassets of affiliation with The RegistryCollection is the ability for owners at TheResidences to exchange it's a great salestool. I see the same value when buying wholeownership. Our entry level price of 170,000is very affordable when you compare it withthe price of some fractions in Tuscany, forexample. So if one of our buyers here candeposit some of their unused time and use itfor other holidays around the world that's avery powerful incentive. We have had somepurchasers who asked about exchange, andthey are increasingly educated about it. Withone couple it played an important part in theirdecision-making process. Our owners see the value of owning

freehold resort real estate in one of thefastest growing tourism destinations inEurope, using their unit throughout the year

and then capitalising on rental incomethrough a strong rental platform. The icing onthe cake is the ability to exchange unusedtime for holidays in other destinations.And the usage programme is very flexible,

as Houchin explains: Buyers get five weeks'usage in peak season, and as many weeks asthey like outside of the peak season. Forexample, in January a buyer could depositthree or four low-season weeks that theywould probably never use, and they could usethe exchange value of those weeks to goskiing in Italy. There is real value to the buyerin that. I think an exchange programme is agreat addition for whole-ownership buyersand I can see many more whole-ownershipprojects embracing it in the future. You coulddescribe it as the real bonus of our offer,which includes mortgage finance, freeholdownership and a rental income.

POWER OF EXCHANGEMatt Holmes, business developmentmanager for The Registry Collection inEurope, who describes Dubrovnik SunGardens as a majestic resort in awonderful location, agrees that exchangeactivity for whole-ownership resorts is astrong area for growth. Currently the Lower

The Residences at Dubrovnik Sun Gardens arebeing sold as whole-ownership propertieswith a difference owners can enjoy theflexibility of a global fractional exchangethrough The Registry Collection. Membershipto the luxury exchange programme is paid forby iO Adria.


Mill Estate in England'sCotswolds region is the onlyother affiliate of The RegistryCollection which sells purelywhole-ownership property.Holmes says: The benefits

of exchange are the same forwhole-ownership buyers as they are forfractional buyers, and Julian has beenastute enough to see what it can offer hisowners. We just look at a whole owner ashaving 52 weeks as opposed to four or six. In commercial terms we get more

enrolments from shared ownership, asthere are more owners, but I think wholeownership is going to be a growth area forus. Whole-ownership buyers are likely to beexchanging more often as they have moretime to put into an exchange programme.They will be high yielding members becausewe think the transaction volume is going tobe significantly higher than a typicalfractional owner. Fractional owners tend tostart looking at exchanging in years two,three or four, but the whole-ownershipbuyers are likely to start looking at

Buyers of these properties purchase theirpanoramic vistas with a view to the long term.Though buying the freehold to their personalslice of heaven on the Adriatic coast, they buywith the option to rent or exchange unusedtime in their residence through membershipof The Registry Collection.

QUOTE: BROKERS LIKE THE RESORT, AS WE ARE A PREMIUMWATERFRONT PRODUCT WHICH IS SOLD ON A FREEHOLDBASIS MOST UNUSUAL IN CROATIA. JULIAN HOUCHIN

FRACTIONAL

exchange options straight away.We have other projects that sell a mix of

whole and fractional ownership and offer TheRegistry Collection membership to bothtypes of buyer, says Holmes. The exchangecomponent is a great fit for many lifestylewhole-ownership developments and we aremore than happy to accept high-qualitywhole-ownership resorts into The RegistryCollection.If developers are offering leaseback

clauses or rental guarantees, we can ensurethat only those weeks allocated to the owneras personal use weeks are able to beexchanged, thereby not negating any rentalincome received by the operator/management company or the owner, orputting any rental guarantees if offered injeopardy.Houchin, meanwhile, is bullish about his

projects and Croatia in general. He says: Wehave seen the growth coming from a long wayoff and today we are one of the biggest inwardinvestors in Croatian hospitality. We are veryexcited and passionate about what we aredoing in this incredible destination. V


TRAINING

Lauren Bowler,animal care manager

at Sondela WildlifeCentre, demonstrates

hands on training.

IN A CLASSOF ITS OWNDelivering a first-class customerservice in the hospitality industryis essential for success. One SouthAfrican resort believes so stronglyin this fundamental principle ithas launched its own staff trainingacademy. GAYLE GREEN reviewsthe returns on Sondela NatureReserves investment in its staff.

A COMMITMENT to its employees is the driving forcebehind the Sondela Academy, according to resort managingdirector Ian Jansen van Rensburg.

The Academy has been running hospitality andconservation training programmes for its staff and the staff ofits external clients for the past five years. Its understanding ofthe real difference training made to its business dates backalmost 16 years, when it saw a direct correlation between afulfilled workforce and satisfied customers.

Jansen van Rensburg, who has been Sondelas managingdirector for 17 years, said the idea began in the mid-1990s whenthe company took staff to visit other resorts so they could learnby experiencing how other companies operated. He said: Wequickly realised that to be ahead of the game we needed to trainour staff. But we found a lot of our staff couldnt read or write.

We started 50 people on a programme learning to read,write and be computer literate. We had a really good responseand staff were much happier, which was paramount inmaking our guests happy.

The efforts made to improve guest services at SondelaNature Reserve have certainly paid dividends the resort hasreceived no less than 27 hospitality industry awards since 1992.

FROM STRENGTH TO STRENGTHFrom the early days of teaching staff to read and write, Sondelacontinued its commitment to staff training and education bydeveloping more training programmes.

In 2007 it launched the Sondela Academy, ensuring all its

QUOTE: WE QUICKLY REALISED THAT TO BE AHEAD OF THE GAME WENEEDED TO TRAIN OUR STAFF. BUT WE FOUND A LOT OF OUR STAFFCOULDNT READ OR WRITE. IAN JANSEN VAN RENSBURG

staff received the highest standard of training, being awardedqualifications across all resort disciplines, including hospitality,food and beverage, conservation and game keeping.

The Academy is accredited to award qualifications from theSouth African Qualification Authority, as well as from theinternationally-acclaimed City & Guilds Institute, thereby ensuringthat Sondela Academy training is recognised worldwide.

Today Sondela Nature Reserve boasts a 72 per cent record ofreturn business, with 64 per cent of business generated by wordof mouth.

Resort operations manager, Mel Meyer, attributes this directly

kitchen and made him an assistantmanager.

Sixteen years later he is a businessunit manager with responsibility forhospitality, the resorts five-starCountry House, the Caravan Park,restaurant and shops.

I feel great about my job today,said John. But when I was learning itwas hard work. I want to thank thecompany for what they have done forme by training other people andmaking sure that South Africanhospitality is taken to the next level. Iwant our customers to know that we are not only in business,but that we care as well.

While the training academy has undoubtedly enhancedcustomer service, staff morale and retention at Sondela NatureReserve, it has also brought huge benefits to the localcommunity where the resort is based.

Many of the learners are from the local area and are able toremain working at the resort or use their new-found skills toset up businesses locally. This includes eight local people whowere trained at the Sondela Academy and are now runningtheir own small businesses.

Diederick Reinecke, principle of the Sondela Academy,said: The young students arrive here as children or youngadults and by the end of their first year they are very proudyoung people who have confidence and can work as part of ateam. That is one of our biggest successes.

Another success is the growth of these people as juniormanagers and team leaders which is crucial because in SouthAfrica we have a big need for management skills, he added.

Next on the agenda for the Academy is to widen itsofferings to resorts across South Africa. It is already beingasked by other resorts to help them set up their own traininginfrastructure. And it has just purchased Learning AssistantLicences, allowing it to put its training materials online to


to the customer care and first-class service Sondela resort staffconsistently deliver once properly trained. We have really seenour service delivery pick up and there have been many lesscomplaints, said Meyer, who was responsible for developingthe infrastructure behind the Sondela Academy, while ensuringon-the-job training doesnt interfere with service delivery.

One of the biggest challenges faced by Meyer was gettingexisting staff to recognise their roles would involve them inongoing staff training, as well as their normal duties. Meyerexplained: Normal hotel staff do very little training. For us, trainingis nearly 50 per cent of the job of every business unit manager.

THE PLANAll staff at the resort are given a Work Skills Plan, whichoutlines their development and training. Employed staff cancontinue to add to their qualifications, whatever their job.

For new employees or employed learners as they areknown on the resort as well as external students orunemployed learners, the initial training is a three-yearcourse, during which they can specialise in either hospitalityor conservation.

Only 30 per cent of the training takes place in theclassroom. The remaining 70 per cent takes place on-the-job.But even the classroom provides stimulation for the students,as it is situated in the bush of the game reserve.

For employed learner Chan Vorster, who joined Sondelafrom university after struggling to settle, this was one of thethings that most attracted her to the resort.

Vorster heard about the Sondela Academy and decided tofund herself through the three-year training course. Shecompleted the hospitality course and was offered a job at theresort. She is now assistant guest house manager and trainingmanager for the food and beverage department.

She said: While at university I was constantly changingwhat I wanted to do. I heard about Sondela, and the idea ofon-the-job training and working with people is what pulledme in. Sitting in a classroom looking at papers and having noworkplace experience just didnt do anything for me.

The resort currently employs 385 staff who are all classedas employed learners. In addition it has 90 unemployedlearners, including 25-year-old Kyle Hattingh who is in histhird year of a conservation course.

Like Vorster, Hattingh was studying at university when heheard about the Sondela Academy. Having already been atuniversity, the training I got in my first year was mindboggling, said Hattingh. At university it was all classwork.Here most of the training was out in the bush.

Now in his third year, Hattingh has already acquired skillsin facilitating, assessing and coaching so that he can help thefirst year students.

THE RETURNSBusiness unit manager, John Mahlangu is the perfect exampleof how training at the Sondela Academy can work. Havingjoined the resort as a chef in 1997, Johns potential wasquickly spotted by his employers who took him out of the

TRAINING

QUOTE: NORMAL HOTEL STAFF DO VERY LITTLE TRAINING.FOR US, TRAINING IS NEARLY 50 PER CENT OF THE JOB OFEVERY BUSINESS UNIT MANAGER. MEL MEYER


facilitate remote learning.It will mean our external clients students

can stay at their resorts and get full trainingonline. It will be a huge benefit for RCI to beable to offer such services, said Diederick.

Our dream is to be an RCI preferred trainingprovider for all RCI affiliated developers in SouthAfrica. That is what we are aiming to achieve next.

RCI has been working with the Sondela teamfor many years and the resort has held RCI GoldCrown status since 1993. Dimitris Manikis, RCIsvice president, business development for Europe,Middle East and Africa, said: Implementing a good stafftraining programme is challenging in every way financially,operationally and getting staff buy in. As we have seen fromthe successes enjoyed at Sondela, investment in your staff canmake the biggest positive difference to your guest experienceand, importantly to job satisfaction and staff retention rates.

People are at the heart of any organisation and we at RCIare proud to be regular recipients of the Investors In PeopleAwards which is recognised in 21 countries. Sondela is clearlylooking to the long-term success of the resort with theSondela Training Academy launch an inspirational movewhich we at RCI whole-heartedly applaud and support. V

Main images: Classrooms atthe Sondela Academy vary

from dining rooms to outdoorlocations. The faces of the

Academy, clockwise from topleft: John Mahlangu, ChanVorster, Diederick Reinecke, Mel Meyer, Kyle Hattingh and

Ian Jansen van Rensburg.


INNOVATION

ITS a generally acceptedprinciple that successfulbusinesses never stand still.They must continually striveto find and make the most ofnew opportunities whileavoiding the danger ofstagnation.

With 27 hugely successfulyears behind it in thetimeshare industry, PestanaVacation Club (PVC)certainly comes into thatcategory. PVC itself is one ofEuropes most influentialtimeshare operators. Thecompany is part of thePestana Group, Portugalslargest tourism and leisureorganisation, which operates90 hotels as well as morethan 45 partially state-ownedPousadas historicproperties such as castles,monasteries and forts thathave been converted intohotels.

The company pioneeredthe mixed-use model oftimeshare hotel operations inEurope when it openedMadeira Beach Club in 1985.It now has 12 resorts inMadeira and the Algarve allaffiliated to RCI. Its 25,000members are a mix of British(60%), German (20%),Scandinavian (15%) andPortuguese (5%), and itsnewest resort, PestanaPromenade, opened inMadeira in 2009.

European mixed-use resort pioneer ThePestana Group is leading the way onceagain with the launch of newly-designedproducts for the contemporary andyounger market. STEVE ADAMS reports.

A NEW DEAL

BOLD AND BRAVE MOVESIn 2011 PVC took thedramatic decision to radicallyreinvent its business and createa new product to cater to themodern market and morediscerning customer.

Peter Booth, Pestana Groupmanaging director, says anumber of factors promptedthem to rethink their strategy.

For a start we needed tofind new ways to market theunsold inventory at PVCs 12resorts, which had reached 75per cent sell out of its total1,000 units, he said.

Once you reach that levelof sell out its hard to find theinventory people are lookingfor, because your moreprivileged units have probablybeen sold. You can bringpeople in through yourmarketing efforts and theymight like the product, but ifyou cant find the week theywant, you cant close the deal.

As well as having limitedinventory to sell, Booth saidthe company also had toconsider ways to adapt tochanging economicconditions which broughtnew ways for customers tobook their holidays.

He said: We had torethink the value propositionwe were offering in light oftodays customers being moreempowered. People arechanging the way they take

from fixed weeks and fixedunits to a well-priced flexiblepoints-based product thatgives people a lot morechoice. Thats how we cameup with Pestana Options,which has proved to be oursaving grace. If we hadntdone so, I think we wouldprobably just be selling trialentry products like manyother timeshare operators.

POPULAR OPTIONSFar more than a saving grace,the Pestana Options product a 10-year product that enablesbuyers to use credits to stay atany PVC resort has proved ahuge success, with impressivesales figures that buckeconomic trends. In 2011 thecompanys closing rate was 24per cent, up from 20 per centthe previous year, with a 20per cent rise in cold line sales.

QUOTE: YOU CAN BRING PEOPLE IN THROUGH YOUR MARKETINGEFFORTS AND THEY MIGHT LIKE THE PRODUCT, BUT IF YOU CANT FINDTHE WEEK THEY WANT, YOU CANT CLOSE THE DEAL. PETER BOOTH

holidays, moving away fromtour operators and bookingflights and accommodationindependently.

Pestana Group founder andowner Dionsio Pestana saidthe company needed to bemore flexible to reflectchanging customer behaviour:Our guests and owners arenow hiring a car andtravelling around Portugal,staying at different propertiesrather than simply having aweek or two weeks at oneresort.

Other challenges Pestanafaced included adapting to thenew European TimeshareDirective and the prospect ofselling Madeira Beach Club asecond time around. Theresort returns to Pestana in2016 after being sold on a 30-year lease.

Booth explained: Thosewere the factors we were facedwith, so we decided toredefine our product away


As its exchange company of choice, RCIhas been a key partner for PestanaVacation Club throughout its 27 years of operation, from the affiliation ofMadeira Beach Club in the mid-1980s toproviding a white label club for its newOptions product.

Dionsio Pestana, top, said: Wevegot to know RCI very well over the yearsand developed a great understandingand business relationship. There hasbeen plenty of input from both sidesthat has really contributed to our

success. RCI is a keyreason why thetimeshare industryremains strong.

Peter Booth, left,added: The dedicated

servicing team that RCI has created issomething were very happy with. Weworked closely with Dimitris Manikisand Isabel Santos at RCI Portugal tocreate a special personalised facility forour Options members. It makes themfeel part of something exclusive, whichis exactly what we wanted.

Dimitris Manikis, below, RCIs vicepresident, Business DevelopmentEurope, Middle East and Africa, said:Pestana was one of RCIs first affiliateddevelopers in Europe and we havedeveloped a successful andlongstandingrelationship. They aretrue innovators, withgreat quality resorts inhighly demandeddestinations and a hoteloperation to back it up. Since the firstyears of our relationship, Pestana hasevolved to become one of the worldsmajor global hospitality groups withoperations in Europe and Latin America.RCI could not be prouder than to beassociated with such a brand.

To learn more about Dionsio Pestanabeing honoured with Ernst & YoungsEntrepreneur of the Year 2011 Portugal award, visitwww.rciventures.com

A SPECIAL RELATIONSHIP

The Pestana Groups newest mixed-useresort, Pestana Promenade, is set in astunning location in Funchal. Theproperty enjoys dramatic ocean views,one of the largest swimming pool areasof any hotel in Madeira, tropicalgardens and offers luxurious four-staraccommodation.


INNOVATION

The Options product hasbeen particularly well receivedby the German market, wherecold line sales have been verystrong according to Booth.

For the last four or fiveyears weve usually sold a trialpack for around 2,000-2,500 to the Germanmarket, he said. Now we areselling them an Optionsproduct costing around6,000. In the past we wouldbring the customer back toup-sell in-house, but nowwere selling the wholepackage on the cold line.

The Options product hasalso prompted off-site salesoperations to be opened inLisbon and Porto, with a thirdsales deck opened in Cascaisin March this year. Closingrates for the off-site salesoperation have been a verycreditable 12-15 per cent.

In addition, an enhancedversion of Options had beendeveloped for in-house salesteams to sell, again largely tocompensate for the lack ofnew inventory, as Boothexplained: We normally builda new property every fouryears and our in-house teamstake existing owners andeither upgrade them or reloadthem into the new product.With no new inventory wehad to be more inventive, sowe introduced OptionsPremium, which is strictly forsale in-house, not on the coldline. With this product ownerscan also use their credits atselected hotels and Pousadas inthe Pestana Group.

Dionsio Pestana added:You always want to give yourin-house sales somethingextra to offer, so that whenpeople come back they getsomething more. It hasworked well. We thought itwas a fantastic way for peopleto feel part of our organisation

and be able to utilise more ofour hotel properties,including the Pousadas.

From the feedback wevebeen receiving people arereally excited by the newOptions programme and thepossibility of touring Portugalusing our historic Pousadas astheir base. Options offersflexibility for people to dodifferent things.

TRAINING OPTIONSLaunching the new productwas a major exercise, not leastin terms of retraining salesstaff. PVC employed adedicated training manager,created its own sales traininguniversity and enrolled inShari Levitins online trainingprogramme (see page 34).

Even our top sales peopleneeded some time to adjust tothe new product, said Booth.We put great emphasis ontraining to enable them tolock into the new proposition,which is quite different towhat theyd been sellingpreviously. One of thehighlights of 2011 was howwell our sales team adapted toselling the new product andachieved great closing rates.

Booth said the companyhad also invested heavily in IT and the training ofreservations staff to supportthe new product: Itsobviously important that weget existing owners to banktheir weeks, as youve got tofeed the inventory pipeline.We need our existing owners,including weeks owners, toexchange within Pestana tofree up space, so its importantto manage that well.

FEE AND RESALESOLUTIONSOne of the most innovativeelements of the Optionsproduct is that it comes with

no fixed maintenance fee.Users pay a daily hotel fee,but only when they stay at aPVC resort or hotel. Thenightly charges range from30 for a studio to 50 for atwo-bedroom apartment.Booth says the move makes iteasy to collect payments allour timeshares are part of ahotel system so when peoplecheck in, thats when they paytheir fee and has proved astrong selling point.

Our sales and marketingteams love the new productbecause theres so muchpositive information that theycan communicate to thepotential buyer, he added.They let clients know howdifferent this is to traditionaltimeshare and Im sure it hascontributed to our high salesfigures.

Maintenance fees havealways been a contentiousissue for the industry, withmany owners feelingexploited by the constantincreases in fees, particularlywhen those increases areabove the inflation index.

Booth explained that PVCmaintenance fees have alwaysbeen fairly modest andindexed to inflation.

Options is a 10-yearproduct, and if people dontuse it they dont pay the hotelfee, which is a responsibleway of handling it, heexplained. On a 10-year planthere isnt the heavy emphasison capital refurbishment thatyoud have when selling inperpetuity.

Selling a product over alimited lifespan, rather thanin perpetuity, also helpsovercome another of thetimeshare industrys biggestissues resales.

Ten years is not going togive people a resale problem,because theyre going to usethat in their lifetime, saidBooth. We also allow ownersto accelerate their usage, sothey dont have to use it eachyear they can use all of theircredits in the first year if theywant. Madeira attracts a lot ofolder people and now noneof them can say theyre tooold to buy this product.

QUOTE: WE THOUGHT IT WAS A FANTASTIC WAY FOR PEOPLE TO FEELPART OF OUR ORGANISATION AND BE ABLE TO UTILISE MORE PROPERTIES,INCLUDING THE POUSADAS. DIONSIO PESTANA

One of the new salesdecks selling thePestana Optionsprogramme atOFarol in Madeira.


Pestana Vacation Club(PVC), one of Europesbiggest timeshareoperators, is starting tomake major inroads intoLatin America via a points-based product thatmakes the most of parentcompany Pestana Groupshotels in the region.

The company hasaffiliated 12 of its SouthAmerican hotels into thescheme, and is sellingalmost exclusively to theBrazilian market at six off-site sales centres in thecountrys major cities.

Sales are conductedquite differently than inEurope. For instance, mostdeals are closed usinginstalment plans, acommon practice in Brazil,and even the sales pitchesdiffer greatly, according toPestana Group managingdirector Peter Booth.

Brazilians are oftenvery animated andextroverted people, so theymake great salespeople,he said. It brings a wholenew dynamic to the market and the salespresentation.

The points-based

product enables buyers tovisit any of Pestanas hotelsin South America, as wellas in Europe, but its theformer that is the mainsales draw, according toBooth.

We mostly sell toBrazilians around 95 percent so they mainly wantto holiday within Brazil andArgentina, although I thinkthere will be strongdemand for our hotel inMiami when it opens inJuly, he said.

PVC has 7,000members in Brazil so far,but the potential for growthis huge. Not only will thecountry be in the worldspotlight when it hosts thefootball World Cup in 2014and the Olympic Games in2016, but the changingdemographics of itspopulation suggest it is amarket ripe for expansion.

The market is verynew and exciting and still in its infancy there are200 million Brazilians, withmore and more peoplemoving into the middleclass, said Booth. Thereare very exciting timesahead in that country.

PESTANA AHEAD OF THE CURVE IN BRAZIL

BACK ON THE MARKETOn the subject of age, PVCsoldest resort, Madeira BeachClub, was sold on a 30-yearlease and reverts to PVCownership in 2016, when itwill be refurbished and soldall over again.

Well have to rethink andupgrade it to come up withsomething special for the 21stcentury, said Dionsio.Nobody can take away itsfabulous location on thewaterfront, but obviouslywell be looking to come upwith something extra in termsof amenities and facilities.

Booth said it is likely to bemarketed as a hybrid productof Options with a weekattached. He said: Its wherewe have our highest loyalty soI think people will still wanttheir guaranteed week withequivalent points value.

Combining the best ofboth worlds is probably a fairreflection of PVCs approachto timeshare as a whole.Having pioneered mixed-use,they stick to a philosophy oftimeshare and hotel

integration all guests checkin at the same reception, forexample, a cross-over that isactively encouraged. Dionsioalso thinks timesharecustomers take comfort inknowing that hotels are thecompanys core business.

Its all based on service,he said. You start off withhotel guests and convert themto timeshare because theyhave already seen, experiencedand liked the product.

Booth added: Were not areal estate developer trying tosell timeshare, were a hotelierthat understands hospitalityand what the customer needs.

Coming at it from thatangle has helped us to look atwhat customers dont likeabout timesharing, such asmaintenance fees, resales, lackof flexibility, and enabled us todevelop a product thatovercomes these concerns.

Thats how wevereinvented our product andcome up with somethingdifferent that fits the newcustomer and the currenteconomic climate.

The Pestana RioAtlantica, located onthe Copacabana Beach.

V

Marketing is the backbone of the shared-ownership industry, where consumerproduct education is king. The economicdownturn tests our marketing strategiesstill further so how do you makemarketing work? SARAH LEEdiscovers new techniques beingemployed by one experiencedmarketer in one of Europes mostchallenging economies.


SALES & MARKETING

MIKE STAEHLY admits heprobably couldnt do anotherjob. After starting work with thelate Jim Andrews at timesharemarketers, Aegean Blue, as a 20-year-old in 1992, he agrees withhis former mentors assessmentof him. After Id been with thecompany about 15 years Jimlaughed and said, theres onlyone good thing about it youwont leave because shared-ownership marketing is all you know.

Established in 1990 byAndrews, Aegean Blue isweathering the economic stormby building on its previousexperience and successes todevelop new products andbusiness lines.

It started marketing Rhodes-based Sun Beach Holiday Clubin 1990, followed by severalresorts in Crete, including CreteResorts Village Holiday Club in1993, Leoniki Residence in1997, Grand Leoniki in 2001and Village Heights Golf Resort,which opened in 2006.

SEASONAL SOLUTIONSFrom the outset the companyoperated a long seasoncompared to the rest of theGreek market 42 weeks fromFebruary to December wh

Documents

RCI Ventures Magazine: Europe - May 2012