081002 Vacation Trading
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Transcript of 081002 Vacation Trading
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RCI Global Vacation Networka Wyndham Worldwide Company
Vacation Trading
by Brenton BrownellDirector, LRE S.E.A.
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Global Leader in Vacation Exchange and European Rentals2
Worlds largest lodgingfranchisor as measured by thenumber of franchised hotelswith over 539,000 rooms andnearly 6,500 properties
Worlds largest lodging loyaltyprogram, based on number of
participating hotels.
26% of WYNs 2006 EBITDA
Worlds largest vacationownership business withover 20,000 units, approx. 150resorts and over 800,000owners
Leading provider of points-based timeshare
41% of WYNs 2006 EBITDA
Worlds largest vacationexchange network withmore than 3.4 millionmembers
Leading European
Vacation Rental Groupwith more than 60,000properties
33% of WYNs 2006EBITDA
Wyndham Worldwide
WYN
Wyndham Hotel GroupLodging
RCI Global Vacation NetworkVacation Exchange and Rental
Wyndham Vacation OwnershipVacation Ownership
Wyndham Worldwide
WYN
Wyndham Hotel Group
Lodging
Group RCI
Vacation Exchange and Rentals
Wyndham Vacation Ownership
Vacation Ownership
Wyndham WorldwideStrong, Global, Diverse
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Global Leader in Vacation Exchange and European Rentals3
Hotel rooms
Condo-hotelsVacationOwnership
FractionalOwnership
PrivateResidence
Clubs(PRC)
Wholeownership
DestinationClubs
Individual Investment Commitment
Shared Ownership Business Models
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Global Leader in Vacation Exchange and European Rentals4
Business modelsdemonstrate differentcharacteristics in termsof key parameters
A broad diversity ofproduct types to
maximise consumerappeal
How the Models Compare?
VacationOwnership
DestinationClubs
FractionalInterest
WholeOwnership
Condo Hotel
Usage Ownership
Lifestyle
Investment
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Global Leader in Vacation Exchange and European Rentals5
The Mixed Use Model
Product development has resulted in a tight fit between
the hotel and real estate business models, allowing for
the integration into a mixed use development.
Mixed use concept signifies the development of a variety
of accommodation offers alongside each other:
Hotel rooms
Rental units
Timeshare / Fractionals
Rental and Exchange (R&E)
Whole ownership Benefits
Marketing and lead generation
Shared services
Life time relationship
Timeshare /
Fractional / PRC
Rentals
Whole
ownership
Buy to use
& letHotel
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Global Leader in Vacation Exchange and European Rentals6
The unique opportunity
for hotel and / or condodevelopers companiesis to break currenttrends and mitigate
costs.
Mixed Use - A Winning Combination
MARGIN
OVERHEAD
COSTS
PRODUCT
COST
HISTORIC
MARGIN
PRODUCT
COST
CURRENT
OVERHEAD
COSTS
MARGIN
PRODUCT
COST
FUTURE
OVERHEAD
COSTS
Traditional Models Mixed Use
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Global Leader in Vacation Exchange and European Rentals7
. Optimize Asset Yield!
Smoothening against
seasonality
Occupancy
Year-long inventoryoptimization and resource
assignment
Protection against downturns
Business volume
Constant flow of maintenance fees andannual dues
Months Year
Fixed
income
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Global Leader in Vacation Exchange and European Rentals8
Resilience of VO!
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VO Trends
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Global Leader in Vacation Exchange and European Rentals10
ASSUMPTIONSVacation
OwnershipFractionalOwnership
Condo
Hotel (BTUL)
Whole
Ownership
Sales Price $250 USD $160 USD $115 USD $100 USD
ConstructionCosts
$75 USD $75 USD $75 USD $75 USD
Operating Costs 55% 20% 15% 10%
Occupancy Rates 85% 75% 70% 40%
Ancillary Income high Good good low
Interest Income high nil nil nil
Profit 35% 30% 20% 15%
Source: Ragatz Associates
Financial Principles
Optimizing Asset Yield
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Global Leader in Vacation Exchange and European Rentals11
Legal
Structure
Club
Servicing
Ancillary
BenefitsDesign &
FFEFee
Collection
Inventory
Management
Product
Design
Feasibility
Study
DevelopmentExchange
Rentals Financing
Key Elements Mixed Use Model
Overall Strategy
Resort
Operations
TravelServices
Concierge
Services
Consumer
Research
Sales &
Marketing
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Where Do They Play?
PRC/Luxury Timeshare/
Fractional Model
Condo Hotels / Personal Use Extension Destination Clubs
http://www.btprivatecollection.com/home.html -
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Global Leader in Vacation Exchange and European Rentals13
Vacation Ownership
An ownership to a resort property or unitthat is shared by others
Each owner has their own time period inwhich they can utilize the facilities,amenities, accommodations and allattributes associated with the resort
Also known as a second home
Share-time, Share-cost
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Shared-Ownership Global Statistics
So how many worldwide shared owners are there?
And how many shared ownership resorts?
Finally, whats the annual timeshare exchange and rentalrevenue?
Roughly 7 million shared owners
From more than 270 countries
About US$39 billion
Shared ownership sales of almost US$13 billion
5,500 resorts
Located in more than 100 countries
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Global Leader in Vacation Exchange and European Rentals15
Ownership Models
Condo Hotel / BTUL - Investment
Fractional - Lifestyle/Investment
Time-Share - Lifestyle
Rental PoolGroup RCIWorldwideVacationNetwork
Usage plan
One week increments
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Global Leader in Vacation Exchange and European Rentals16
Market leader with proven track record in the
vacation exchange and rental industry
30+ year operating history
The Premier Global Vacation Provider
More than 3.5 million members worldwide
Nearly 60,000 vacation properties in 100 countries, serving nearly four millionleisure-bound families a year
Network of 20 vacation accommodation brands and 50 worldwide offices notdependent on one region
Who is Group RCI?
7 out of 10 timeshare resorts affiliated with RCI
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Global Leader in Vacation Exchange and European Rentals17
Aspen Highlands Bachelor Gulch J upiter
Kapalua BaySt. ThomasSan FranciscoSouth Beach Miami
Diversified Experiences
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Global Leader in Vacation Exchange and European Rentals18
Vacations in Asia
Karuizawa Gangwon-do
Phuket
Selangor
Pahang BaliKyoto
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Global Leader in Vacation Exchange and European Rentals19
Group RCIs Offerings
RCI Weeks: traditional weeks-based exchange program offering over 3,800 resort
selections worldwide
RCI Points: the worlds premiere membership program designed for ultimate resort and
travel flexibility
The Registry Collection: luxury membership program exclusively for high-end consumers
and discerning travelers offering vacations to exclusive leisure assets
Vacation Rentals: vacation rental management and rental distribution through more than30 brands and 63,000 units
Endless Vacation: comprehensive, user-friendly travel magazine with the largest paid
circulation in the world
NorthCourse: top-tier consulting and full-service turnkey business solutions that are
offered to Network partners, including real estate developers, tourism investors and
hospitality companies
Weeks
Points
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Innovative Luxury Product Models
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Ever Increasing Circles
Amazement!(TRC)
ConciergeExchange
Flexibility
Investment
Appreciation
Service
AmenitiesProperty Asset
Lifestyle
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Global Network (Brand)
Call Centers
3.5 million customers4000 affiliate properties
14 centers worldwide16 languages in Asia
Developer
diversify marketquicker return
higher ROI
Asset Monetization
Consumer
informed consumerIncreased lifestyle
lower price point
Inventory Fusion
Group RCIFractionalOffering
RCI
Customer Care30+ years exchanging
80% of exchange market
The Group RCI Value
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Tripartite Relationship
ResortDeveloper
RCIConsumer
AffiliationAgreement
2 ,3, or 5 years EnrollmentFee for RCI Membership
Maintenance Fee
Marketing Co -- -- In-House
TRC/RCIExchangePlatforms
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N P ti
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Global Leader in Vacation Exchange and European Rentals27
New Perspective
Market leader in the
vacation exchange andrental industry
Market leader in the
vacation brokeragebusiness
Were in the Vacation Brokerage Business
Think Brokerage from a market maker perspective
Think stock exchange from an operations & execution perspective
We are in the business of matching supply and demand of vacation
destinations and accommodations worldwide
which we do through an exchange-like market mechanism thatwe refer to as our global vacation network
G RCI S
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Group RCI Structure
N thC
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NorthCourse
Delivers shared ownership& mixed use solutions to
projects globally
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What can we do for
you to unlock your
value proposition?
G RCI F ll S i M d l
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Global Leader in Vacation Exchange and European Rentals31Source: Tourism Malaysia.
Group RCI Full Service Model
Pre-Engageme
nt &
Feasibility
Branding &Collaterals
Training
New ProductConsulting
FeeCollections
TechnologyPlatforms
ExchangeNetworks
MemberServices &Marketing
SalesCertification
Partner/concierge
LeadGeneration
Marketing B2B B2C ClubMment
QualityAssurance
CategoryExpansion
Yield Mment
Feasibilityand best use
ProductDesign
Consulting
ProjectMment