RCI Ventures - October 2010 issue

Loris Cappelli: ‘We need to work oncustomer satisfaction as well as onactively fighting those who operateoutside ethical boundaries.’ PAGE 28

Johann Redfern: ‘Our focusmust always be on givingguests the best holiday wepossibly can.’ PAGE 30

Gordon Gurnik: ‘We have agreat opportunity ahead of usto continue to grow ourEuropean region.’ PAGE 8

SCANDINAVIAN AND NORDICMARKETS GO FOR GROWTH

NORTHERN EXPOSURE

MID-MARKET FRACTIONALSOFFER REAL OPPORTUNITY

SOLUTION: EVOLUTION

THE MAGIC TOUCHTHE ANFI GROUPCONTINUES TO TURNDREAMS INTO REALITY

HOW TO ENSURE YOURSALES TACTICS ARE NOLONGER A GAME OF CHANCE

BOOSTINGYOUR ODDS

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Diversified fixer:Layout 4 23/6/09 14:17 Page 1

4 MARKET OUTLOOK:A news and views round-upfrom Europe and around theworld

8 WORKING TOGETHER:RCI management is workingharder than ever to build aneven greater RCI global exchange product

10 COVER STORY – BOOSTING YOUR ODDS:Industry experts discuss how to improve your chancesof sales success

16 THE DREAM FACTORY:A profile of the ever-evolving Anfi Group, one of timeshare’sflagship resort developers

19 NORTHERN EXPOSURE:Scandinavia and the Nordic region offers real scope for industry expansion

24 NEW DAWN FOR EUROPEAN FRACTIONALS:Mid-market products are set to provide growth opportunity for fractionals

28 25 YEARS OF PUTTING THE CUSTOMER FIRST:Marketing company Gruppo LCL is still one of Italy’s best

30 A TIMESHARE LIFE:Johann Redfern reflects on her lengthy career in the industry

32 MAKING SOCIAL MEDIA WORK FOR YOU:How Pearly Grey Ocean Club has harnessed the power of the internet todrive engagement through online communities

34 FINAL CALL – PUTTING YOUR PRODUCT IN THE PICTURE:Video is the best media to engage your customer, says PATRICK LOVELL,VP Business Development of Lenzworks

RCI Ventures, October 2010 | 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 CO-ORDINATOR:Claire Williams. ADVERTISING SALES: Media Line Ltd. Tel: +44 (0)870 250 8701. Repro: JP Repro. PRINTING:CKN Print Ltd. Original articles and contributions may be reproduced or transmitted only with written permissionfrom the publisher. All facts and figures stated in the articles contained in this publication are provided by thecontributors and no responsibility is accepted by RCI Europe for content not created by them, nor for any lossesor other consequences resulting from advertisements or other material appearing in this publication. You areadvised to make your own enquiries and conduct further research if necessary. RCI Europe reserves the right toaccept or refuse advertisements at its discretion without assigning any reason for doing so. © RCI Europe 2010.

With this my first Editorial in the

EMEAI regional edition of RCI

Ventures magazine, I’d like to

open by saying how excited I am

to be working more closely with

the region.

As Geoff Ballotti and I discuss

on page 8 of this issue, Europe is home to many of the

world’s leading shared vacation ownership developers

and flagship resorts, and many more are coming on

board bringing fabulous new destinations, resorts and

vacation experiences to our industry in Europe.

By bringing more RCI resources around the world to

bear, we are maximising our resources, sharing best

practice and strengthening support to our developers in

the region to ensure we’re all positioned to capitalise on

the significant growth potential within Europe, the

Middle East, Africa and India.

You can read about some of the high-quality,

experiential vacation offerings coming into the industry

and RCI in the Nordic Market Report on page 19. From

established big brands and large-scale developers

introducing new resorts, to smaller scale novice

developers bringing an intimate vacation experience to

our members, the diversity of these products is

especially exciting.

It is also encouraging to read in the cover story on

page 10 that the European industry is ready to embrace

new and innovative sales programmes to speak to

today’s more savvy consumers within their online social

media communities.

In addition, we are pleased to celebrate the Silver

Jubilee of Italian marketers, Gruppo LCL on page 30

and, in our Personal Profile feature, we congratulate

Johann Redfern on nearly three decades in the industry,

progressing from housekeeper to general manager at

one of the UK’s largest resorts.

I hope you enjoy this issue of RCI Ventures and that

you find even more to interest you on the magazine’s

sister website, www.rciventures.com. Meanwhile, I’m

looking forward to attending the RDO1 industry event in

Spain where I very much hope to meet with as many of

our partners in the region as possible.

Sincerely,Gordon GurnikPresident RCI North America and Europe,Middle East, Africa and India (EMEAI)

VENTURES MAGAZINE SERVING RCI’S MARKETS IN EUROPE, OCTOBER 2010 THE MIDDLE EAST, AFRICA AND INDIA

Coverillustration:

Getty Images

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Visit www.rciventures.com to find outmore about the book and its author.

4 | RCI Ventures, October 2010

LEADING SPANISH HOTELBRAND ENTERS TIMESHARE

TIMESHARE DEVELOPERTURNS AUTHOR

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

Marketoutlook

Leading Spanish hotelierand hospitality brand Grupo El Fuertehas made its entry into the timeshareindustry by opening two mixed-useresorts, launching its own vacationclub and affiliating to RCI.

The Andalusian company’s firsttwo resorts are Fuerte EsteponaSuites and Fuerte El Rompido Suites,pictured above, in the popular touristhotspots of Málaga and Huelvarespectively. Each resort contains 10 timeshare units.

In addition to the resorts, in Julythe group launched Fuerte DestinosVacation Club (FDVC) to enablemembers to exchange into any of thegroup’s eight hotels. The club has alsoaffiliated to the RCI Pointsprogramme, extending its offering to4,000 resorts worldwide.

Lenore McCarron, Sales & Marketingdirector at FDVC, said the move hadpartly been prompted by interest fromhotel guests, 60,000 of which aremembers of its Club de Amigos (FriendsClub) loyalty programme.

McCarron said: “Our loyalty clubmembers get a variety of special offersand benefits from the hotels, and manyof them have been asking us aboutintroducing resort-style properties.”

McCarron told RCI Ventures thatFDVC chose RCI as its exchangepartner due to the company’s longhistory, reputation, number of resorts– including brand names familiar tothe Spanish market such as Sol Meliá,Disney and Hilton – and ability toprovide high-quality service toSpanish clients.

“RCI offers excellent service toSpanish clients and resorts, which isimportant to us as most of our clientsare Spanish nationals,” she explained.

Grupo El Fuerte was formed in1957 following the opening of its firstproperty, Hotel el Fuerte in Marbella.The group currently employs almost1,000 people in divisions coveringhotel operation, propertydevelopment, residential leisureaccommodation, agriculture anddesign.

RESORT:

Much-travelled entrepreneur andtimeshare developer Emelyn Heaps (below) hasadded another string to his varied career bowby becoming a published author.

The managing director of Clare Resorts inIreland – which he developed from a businessof six holiday cottages to 62 properties, with plans for22 more – is set to becomethe timeshare industry’sfirst published author of anon-business book, withthe publication of ‘Heaps ofTrouble’ the first in what isplanned to be a four-volume autobiography.

The book, which is published by CollinsPress, tells the story of Heaps’ troubled childhoodgrowing up in a broken home and experiencingthe death of his only sister when he was just ten.But there are plenty of lighter moments.

“One critic called it ‘Angela’s Ashes’ withoutthe rain or misery,” he says. “And while it mightsound like a familiar story, it’s not been told inthis way, or with this humour, before.”

The book was published in September andHeaps is already working on the sequel, ‘Heapsof Opportunity’.

■ Heaps of Trouble is published by The CollinsPress, priced €12.99/£11.99 and is available inall good bookshops and online fromwww.collinspress.ie

PEOPLE:

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Club La Costa Resorts& Hotels (CLC) has unveiledexpansion plans spearheaded bythe announcement of two newproperties, including thecompany’s first resort in Florida.

The new resorts, due to openin 2011 and 2012 respectively, areEncantada in Kissimmee,Orlando, and Kusadasi Golf & Spaon Turkey’s Aegean coast.

Kusadasi Golf & Spa is amixed-use residential resortdesigned as a self-containedvillage comprising 2,000 luxuryaccommodations with a wholegamut of amenities. The resort isCLC’s second major project inTurkey following Apollonium Spa& Beach Resort on Bozbuk Bay,which opened in 2009 and isaffiliated to RCI.

The company has alsopurchased Encantada, a mixed-use resort with its own naturallake 8km from Walt Disney Worldand close to a variety of visitorattractions. David Honeyman, CLCmarketing director, said: “We willalways be committed todeveloping and improving ourproduct range to stay abreast ofchanging consumer demands. Todo this, we constantly upgrade ourstandards and facilities and addnew and exciting destinationsevery year to our already variedportfolio.

“While our recent acquisitionsinclude a second resort in Turkeyand our first-ever development inFlorida, we also intend to invest infurther UK ‘boutique’-styleproperties this year, following the

huge success of our resorts inCornwall and Scotland. Many ofour UK members simply don’thave the time to travel abroad atthe moment and the attraction ofa short break, closer to home isvery appealing to them.”

Roy Peires, CLC chairman,added: “There’s no magic bulletor ‘get rich quick’ formula in thisindustry. Our success today isbuilt on the strong foundations

we have laid over more than 25 years of hard work anddedication by looking after250,000 customers a year andconstantly improving every singlearea of our business – step bystep, notch by notch.

“The unrelenting quest forexcellence is what drives CLCforward and ensures we deliver agreat holiday experience to ourcustomers time and time again.”

RESORT:

Timeshare and fractional industrymedia brand, Perspective International, is setto hold a major networking and industryawards event next year.

The first annual Global Networking Expo(GNEX) and Perspective Magazine AwardsGala will be held on May 11-12, 2011 at theAtlantis Resort in the Bahamas.

The 1.5-day event will feature a variety of networking sessions balanced withnetworking time, optional workshops and an exhibit hall.

A Gala Awards Ceremony will be held tohonour the shared ownership industry’s elite

with awards in a number of categories, run inconjunction with Perspective Magazine’sregional titles in North America, Europe, theMiddle East, South Africa and Asia Pacific.

Paul Mattimoe, CEO, PerspectiveInternational, said: “We have been askedmany times why we do not have aPerspective Magazine awards programme.The answer has been that when we felt readyto take the concept of awards programmeswithin our industry to the next level, wewould introduce one.

“We’re thrilled to be delivering an eventon a level that has not been attempted before,

especially one that brings the best of ourprofession together from around the world tocelebrate their success and excellence on aglobal stage.”■ For further information visithttp://perspectivemagazine.com/gnex

EVENT:

MAJOR NETWORKING AND AWARDS EVENT

VENTURES ON THE WEBHave you visited the new and improved Ventures website

at www.rciventures.com? If not then now is the perfect time, aswe’ve added some great new content, including podcasts ontopical issues from industry and hospitality experts.

In addition, the Ventures website will feature live reports fromthe much-anticipated RDO1 conference in Spain in October.

CLC UNVEILS MAJOR EXPANSION PLANS

Left: The harbour at Kusadasi in Turkey Right: Kusadasi Golf & Spa



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

Marketoutlook

In addition to its residential properties, Anfi Tauro Golf & Luxury Resorts developmentwhen complete will house another 12 hotels, two man-made beaches, a 500-berth leisureharbour, a shopping centre and a clinic for respiratory diseases.

The Anfi Groupand the town council ofMogan have won anappeal which gives thegreen light for thecontinuing developmentof the Anfi Tauro Golf &Luxury Resorts project.

The judgement washanded down from theSupreme AdministrativeCourt and confirms thefeasibility of the wholeproject, allowing the7,500-bed tourismdevelopment to go aheadwithout interruption.

The resort, which istargeted at the high-end

European tourist market,already boasts a luxuryhotel, a selection offreehold bungalows andvillas and an internationalgolf academy.

With a plannedinvestment of €400million, Anfi Tauro Golf &Luxury Resorts will beone of the mostimportant touristdevelopments in theCanary Islands, creatingsubstantial wealth for theisland of Gran Canaria aswell as beinginstrumental in theregeneration of the local

economy. Holidayingexclusively in self-catering units, Anfi’sclients are generallyaffluent visitors with ahigh spend on localamenities.

In response to thecourt’s verdict, aspokesman from the AnfiGroup said: “These arethe first seeds of a treethat will drive thedevelopment of the areawhich will become one ofthe most importanttourist resorts in Europe.” ■ See page 16 for a fullAnfi Group profile.

RESORT:

ANFI TAURO GOLF & LUXURY RESORTSGETS FULL COURT BACKING

ON THE ROAD WITH THEREGISTRY COLLECTION

The Registry Collection is launching aseries of roadshows to reach interesteddevelopers in key second home locations acrossEurope.

The first four events will be hosted by NickTurner, vice president Europe, The RegistryCollection and Fractional OwnershipDevelopments.“We have invested heavily in bigglobal events over the lastfew years but it’s apparentthere is a gap where smallto medium-sized resortdevelopers are keen tolearn more about thefractional ownershipmodel but have not beenable to travel to London orthe US,” he said.

“We have selected specific destinationswhere high-quality resorts are looking for newmodels and routes to market for our moreinformal workshops.”

There will be a series of one-day workshopsproviding a simple and concise summary of thefractional model followed by the chance to meetexperienced developers to learn more in theareas of fractional market intelligence,advisory, legals, sales and marketing. Theworkshops will be held in local languages.

“This is a low-cost educational day givingthose with an interest in fractionals theopportunity to talk with those who areestablished in the market and who are willingto share their experiences and present casestudies,” added Turner. “We have beenencouraged in this by the success enjoyedacross the Caribbean with similar style eventshosted by The Registry Collection.”

The first event will be held on 7 December inCounty Cork, Ireland, at the Fota Ireland Resort.This will be followed by events on 1 February2011 at the Quinta da Marinha Resort in Lison,Portugal; 3 February 2011 in Marbella, Spain, atthe Hotel Puente Romano; 15 March in Florence,Italy, at the Star Hotel Michelangelo and 12 Aprilat the InterContinental Aphrodite Hills ResortHotel in Cyprus. The programme will alsopotentially be extended to the Middle East.■ The day delegate cost for the workshops is€59 plus local taxes. To reserve a place or forfurther information, please [email protected]

EVENTS:

Nick Turner



RCI is proud that so many of its developers workhard to achieve and maintain, year-on-year, the RCI Gold Crown award. Spainhas recently seen several resorts being awarded RCI Gold Crown status andhere RCI Ventures showcases some of the award presentations.

SPANISH GOLD

Diamond Resorts at Sahara Sunset Club: Resortmanager Salvatore Di Caro receives the RCI GoldCrown Award from RCI’s Samantha Kuczynski.

Heritage Resorts at Matchroom Country Club:Developer Diane Atkin, centre, with NormanAnderson, customer services manager andLaurie Morelli, in-house consultant.

Miraflores Vacation Club: Celebratingthe Málaga resort’s RCI Gold Crownrecognition are, from left: AfsanehSigurdsson, resort manager’sassistant; Anna Coronado, resortmanager; Ilse Bartholomeeusen,member services; EncarnaciónMartínez, housekeeper; CarolineAlabert, member services; and JesúsDe Sada, reception manager.

Holiday World: RCI’s Samantha Kuczynski (second left) presents the RCI GoldCrown Award to Holiday World executives, from left: developer Mari FrancisPeñarroya, resort director Cecilia Pérez and marketing director Pilar Valcarce.

HeritageResorts at ClubPlaya Real:Displaying theMarbellaresort’s RCIGold CrownAward are,from left, JohnStevens, resortsales manager;Diane Atkin,developer; andHelen Harper,lodge manager.


… to grow timeshare around the world. For more than 35 years, RCI has beenoffering its members some of the most flexible, diverse and exciting vacationexperiences in the world. GEOFF BALLOTTI and GORDON GURNIK share theirinsights on how RCI plans to tap into the strengths and opportunities withinthe European region to build an even greater global exchange product.


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

RCInside

RCI’S network of affiliated resorts isextensive. Through its world-renownedvacation exchange programme, RCI offerssubscribing members access to more than4,000 timeshare resorts, as well asprivileges to many of its 75,000 vacationrental properties located throughoutEurope. While 2009 was one of the morechallenging years of late for the hospitalityindustry, RCI membership grew andsurpassed 3.7 million members.

“Our continued success can beattributed to our innovation, technology,marketing and most importantly – ourassociates and their tremendouscollaboration across the globe,” Ballottisaid. “In the past year, it’s become clearthat we can continue to leverage and growRCI’s global presence by partneringbetween our regions.”

As RCI gains more and more globalmomentum, maintaining high servicelevels, product quality and innovationacross its worldwide membership base iscritical. To further advance this goal,Gordon Gurnik’s role has been expanded toinclude leadership responsibility of RCIacross its European, Middle East, Africaand India (EMEAI) region, in addition to hiscurrent position as President of RCI NorthAmerica. Gurnik, an RCI veteran, began hiscareer more than 20 years ago in thecompany’s Indianapolis Call Centre andhas served in various roles of increasingresponsibility before heading up RCI’sNorth American operations. “Gordon’srecent appointment to lead our EMEAIregion will allow us to leverage the many

strengths of each respective region,” saidBallotti.

Although RCI’s largest member base isAmericans, nearly 50,000 of thosemembers travelled to Europe through theRCI exchange programme last year. In fact,vacationing in the European region is ingreater member demand than any otherregion in the world with Ireland, Italy,Greece, Germany, Norway, Spain and theCanary Islands among the most populardestinations for US members. To help meetthe growing global demand for Europeaninventory, RCI has welcomed many newEuropean destinations to its exchangenetwork and launched new technologies tofurther improve the member experience,including more robust online search andtransaction capabilities on RCI.com. Theserecent efforts have significantly improvedmember satisfaction scores and attractedseveral new affiliate developers in Europeto the RCI network.

“While it’s been a challenging year foreveryone in the hospitality industry, thenumber of US member visits to Europetells us that travel interest in this area isvery much alive,” said Gurnik, who alongwith Ballotti will be attending the RDO1European industry event and meeting withmany of the region’s developers andindustry associates to explore futureopportunities for stimulating furthergrowth in the region. “Several Europeandevelopers have demonstrated theirconfidence in the European market – andin RCI – by opening great new resorts andaffiliating with us.”

Among this year’s newest affiliations isSweden’s leading ski brand, SkiStar, whichhas two properties in Sälen, a popularSwedish ski and snowboarding area.Joining SkiStar is Finland market leaderHoliday Club Resorts, which has invested€200 million in Saimaa Garden Resort, a10-year project that will include 400 to 500timeshare apartments and a spa hotel in ahigh-quality development located close tothe Russian and Finnish border.

Sithonia Beach Club at Porto Carras inGreece, which is part of the stunning PortoCarras Grand Resort, brings many topguest attractions to the RCI exchangenetwork. The Beach Club has four luxuryhotels, a private casino, Thalassotherapyand spa facilities, and an 18-holeinternational standard golf course – all setagainst 9km of private, blue flag-qualitybeaches.

The Arcos Gardens Golf Club & CountryEstate in Cadiz, Spain joined RCI’s TheRegistry Collection® luxury exchangeprogramme, offering guests a mix oftraditional old Spain with a luxury golfexperience. And The Village atMachrihanish Dunes on the spectacularsouth western coast of the Mull of Kintyrein Scotland also joined The RegistryCollection portfolio, combining a world-class golf offering with the striking beautyof the shores of the Atlantic Ocean.

Gurnik said: “Our RCI team in Europecontinues to do a great job of growing ourportfolio of European destination optionsfor our members in Europe and across theglobe. The region is rich in all of the

WORKING TOGETHER

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RCI US-RESIDENT FAMILIES INTO EUROPE AS A PERCENTAGE OF TOTAL RCI EXCHANGES (2009)

WEEKS POINTSCountry % Country %Ireland 45% Netherlands 43%Norway 18% France 8%Germany 17% Germany 7%Greece 14% Scotland 6%Italy 13% England 6%Morocco 13% Ireland 5%Poland 12% Italy 4%France 12% Greece 4%Netherlands 12% Denmark 3%Spain & Canaries 11% Austria 3%Denmark 10% Switzerland 3%Switzerland 10% Spain 2%Sweden 9%England 8%Austria 8%Isle of Man, UK 6%Wales 5%Malta 5%

important visitor attractions our membersvalue, such as beaches, mountains andlakes, as well as history, culture and otheroutdoor activities.

“The UK is also a significant sourcemarket for our industry. RCI has more than250,000 UK members and the potential togrow that number even further. UKnationals have a strong love of their homesand home ownership and, through RCI, canenjoy vacationing options to mainlandEurope. The short distance to a widevariety of neighbouring countries is idealfor continental residents. UK residentsvalue holiday and time spent with family,and they have shown one of the greatestpropensities to take holidays in any regionin the world.

“Furthermore, the new Europeanlegislation recently established in the 2011EU Directive, which is applicable to all EUmember states, is a great benefit for thisregion. The new legislation affordsstronger consumer protection andmitigates opportunities for unlawful

operations in the European markets.Adapting to the new legislation will bechallenging, but worthwhile. It will greatlyimprove public perception and confidencein both the timeshare industry and allforms of shared vacation ownership, aswell as drive more positive mediacoverage.

“We have a fantastic opportunity aheadof us to continue to grow our Europeanregion in partnership with our affiliates andsupport the development of timeshareacross the continent and the world,” addedGurnik. “All of us at RCI look forward toworking together across regions to growour industry globally.”

Geoff Ballotti,CEO, RCI

Gordon Gurnik,President, RCINorth Americaand Europe,Middle EastAfrica and India

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Many resorts are approaching a secondsales cycle, with early buyers nearingthe end of their timeshare lease andsales directors looking to recruit a newgeneration of owners fuelled by morechoice and insight into the buyingprocess than ever before. DAVETHACKERAY asks global industry

experts how to reduce the element ofchance in the sales process.

TIMESHARE is at a crossroads. In the brave new world of 1975, RCIlaunched its first directory of affiliatedresorts and confirmed 236 exchanges.Fast forward 35 years and fixed weeksand perpetuity ownerships are asincompatible with the modernconsumer as a world without AppleiPhones and constant internetconnectivity.

Early, and now ageing, owners havealso reached an important intersection.Unable to travel and/or concerned byrising maintenance fees, many first-generation owners are seeking simpleways to offload their weeks, triggeringa rocketing secondary market.

As developer and resaleinventory collides in the

challenge for buyerattention, the industryfaces its stiffest challenge– and greatest opportunity

– in the form of theworldwide web.

With satisfaction levels far

exceeding those of most otherindustries, timeshare as a product hasclearly evolved to match theconsumer’s changing needs. Yet salesand marketing techniques have evolvedlittle.

Only recently has the combinationof global recession, internet and achoosier consumer brought intoquestion the way we sell. Engineeringnew products to match a newgeneration of buyers is one side of thecoin: the other is how to tune up oursales strategies to heat up revenues.

NETTING A PROFITThere are two trains ofthought when it comes to

timeshare sales. Bothtraditionalists and new-age sales titansare united in their agreement that theinternet is already having a profoundinfluence on business.

Jason Tremblay co-founded one ofthe world’s most successful resalesorganisations.

QUOTE: THE TOUR MODEL AS WEKNOW IT WILL BE EXTINCT IN FIVEYEARS. JASON TREMBLAY

COVER STORY

BOOSTINGYOUR ODDS

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SellMyTimeshareNow.com (SMTN)is, as its name suggests, an internet-only company. Praised in Timemagazine for offering a low-costalternative to first-hand developerinventory and recently expandednorthwards through the acquisition ofCanada’s Rapid ResaleInc, SMTN has giventhe timeshareindustry a wake-upcall in next-generation marketing.

Tremblay makesthe bold assertionthat “the tour modelas we know it will beextinct in five years”, saying that thetraditional timeshare prospect with apenchant for spontaneity has beenreplaced by the methodical, research-driven consumer.

The balance of power has shiftedfrom seller to buyer. Visit any salesdeck and no longer does the resorthave home advantage on information.Now it’s Apple iPhone versus Blackberry,Tripadvisor versus marketing collateral.

“Today’s consumer does not like tobe ‘sold’ to,” said Tremblay. “There isstill robust demand for the product butone of the reasons the secondarymarket is growing while much of theprimary market is largely struggling isdue to both the consumer-unfriendlysales process and the value one canreceive in buying resale that is notoverloaded with marketing costs.”

THE HUMAN TOUCHTightening your marketingbelt is no panacea, says

Jamie Klein, founder of TheLore Institute. It takes an enormousappetite for people to understand thebuyer profile and make a sale.

Next year Klein celebrates fourdecades in leisure real estate, buildingsuccess after success on a 21-step salesand marketing strategy he pioneeredduring the early days, and has sincecustomised to dozens of developerclients.

Famously, Klein’s focus on thetraditional and practical, people side ofthe business – which helped sell out

St Regis New York fractional ownershipcomponent retailing at a world-record$6,000 per square foot – saved TheCottages at Cape Kiwanda in Oregon.

With just one sale in four months,the resort needed help. Mining a

database of prospects who hadpreviously visited the fractionalownership resort – where prices rangefrom $82,900 to $144,900 – Klein andhis team first wowed clients on a one-day ‘sales-free sales’ event. “We told

Efficient exit strategies are now more important than ever – and that means having

the right resales proposition in place.

Resorts are increasingly looking at their in-house sales operations to handle

resales but the challenge of balancing new developer inventory and resale stock

can sometimes cause conflict and confusion.

Many marketers and developers appoint third party experts to handle resales

and one such company thriving in providing turnkey solutions is Worldwide

Timeshare Hypermarket, which develops and operates custom-branded websites

and provides unique video content for its partners. The company is also pushing the

boundaries by advertising clients’ weeks for sale on TV and through sponsorship of

the The Travel Channel and the production of a 30-minute programme educating

the British public about timeshare.

Managing director Phil Watson, a former timeshare sales executive, told RCI

Ventures: “We provide a service resorts are not able to provide for themselves. They

already have their own sales team selling developer stock.

“When a client comes along and says I want to sell my

weeks, the argument is that the developer wants to sell his

weeks first before he sells the member’s weeks so he is very

reluctant to take those weeks back and doesn’t always provide

a resale service. That’s where we come in.

“We operate as a resale arm of that particular resort and

we will set up a satellite site that is purely for that resort. The

developer can advertise as he wishes but predominantly we answer as that resale

company and there are other elements that we can build in, such as creating

fly-buys through our Indulgence programme.

“We can also do rentals and even part exchange – in other words if a client

wants to part-exchange their product for something new from the developer, we

can take that week off them and sell it on, so it’s quite an exclusive way of going

about things.”

Or you can take the DIY approach. Jamie Klein said: “I think the best way to

handle resales as a developer is to control the market.

“Resales is nothing more than an economic problem. It has to be factored into

your business plan and incorporated into your sales strategy. Make every fifth sale

a resale. It should be part of the product portfolio. Have processes in play to deal

with an exit programme and you’ve got a happy developer and a happy owner who

knows he has options when it’s time to leave.”

RESALES REVISITED

JasonTremblay

PhilWilson


QUOTE: NOWADAYS AND MORE THAN EVER WE NEEDSOMETHING NEW AND APPEALING TO MAKE STAYING INRESORTS AN IRRESISTIBLE PROPOSITION. BRYAN LUNT

COVER STORY

guests you can meetthe salespeople,but you can’tbuy,” said Klein.

Next they are offered aweekend’s stayfor a $500deposit –which isreturned on

arrival. Kleinhad earlier

called eachprospect “to provide

them with the bestpossible value proposition.”

On arrival, guests wereintroduced to the ‘extended family’

concept where everyone involved inthe resort, from the salesperson to thedeveloper, banker and concierge –

would talk leisurelyand informally aboutthe proposition.

A celebrationparty the next day forbuyers sealed the dealand alleviated anypost-purchase jittersas the extendedfamily of senior

resort representatives and financiersgathered to endorse the transaction.

At that event alone, 26 of 31 guestsbought. The resort celebrated revenuesthat weekend exceeding those from theprevious two years – and the bank cutloan interest rates by one per cent, anequivalent of a monthly $10,000saving for the developer.

“Selling is not about technology,it’s not about ‘old processes’ – it’sabout how you deal with humanbeings and make them feel part of thefamily,” said Klein.

PEOPLE POWERWhen you buildtrust and belief

in your company,you create aspiration andhigh volumes of referrals

around the product you sell.Group Pestana, one of

Europe’s biggest hospitality

companies, discovered this at itsPortuguese resort Alvor PrivateCollection. All Pestana's timesharecomplexes adjoin four- or five-starhotels. Pestana Alvor PrivateCollection has sat alongside AlvorPraia hotel since 1995 – when sales of15-year terms began.

As the majority of ownershipterms came to an end, two thingshappened. Pestana refurbished andrebuilt the 21-unit Pestana AlvorPrivate Collection, then sent out amail shot to the existing owner base.

Peter Booth, group managingdirector of Pestana Vacation Club, said:"We gave them a cut off date and toldthem we were extending the productby another 15 years. We made a fewfollow-up calls. The price was about25 per cent higher than we sold forback in 1995.”

Thirty per cent of the memberbase renewed their ownership “for acost approaching zero”, said Booth.

This experience and insight willinevitably play a significant role forPestana, an RCI affiliate based on thePortuguese island of Madeira, as itsresorts thereapproach theirsecond sales cycle.

Booth added:“When othercompanies wereselling in perpetuity,we sold 30-yearleases.”

Madeira BeachClub, which opened its doors in1985, will be first to start reselling itstimeshare leases, and a variety ofoptions are being considered inresponse to an increasing demand forflexible holidaying.

Ten and 15-year terms are beingmooted alongside an acceleratedusage plan.

“We realise that after 25 years,many owners may not want tocommit to another 15,” said Booth.

“Accelerated usage would allowthe owner to bring forward theirfuture usage rights so they can enjoya multiple of weeks in comingyears.”

JamieKlein

PeterBooth



TECH TALKIt’s not just the lease that’schanging. As owners

demand greater levels offlexibility, they also want quality,historically a hallmark of the timeshareproduct and now aspiring to newlevels of sophistication.

Absolute Sansabai Resort & Spa inPatong, Thailand, is set to make itsdebut in November with an industryfirst – Apple iPads serving as cutting-edge customer service devices in eachof its 43 suites.

Bryan Lunt, chairman of developer,the Absolute World Group, said:“Instead of flickingthrough a guestdirectory and havingto call reception formore towels,shampoo or roomservice for a clubsandwich at three inthe morning, you justswitch on the iPadand order it online.”

The resort’s futuristic computersystem allows management to track theeffectiveness and efficiency ofoperations relating to the order andenquiry process.

“It’s easy for us if we want to putthe food prices up or down – we canadjust them online in the back office.We can also send messages to theclient, which is a nice way ofcontacting them,” said Lunt.

“They can take the iPads out of theroom down to the beach or to theshopping centre where there is usuallyfree wireless so they can check theiremails.

“Nowadays and more than ever weneed something new and appealing tomake staying in resorts an irresistibleproposition.”

RCI members have been enjoying thebenefits of mobile applications sincethey were launched at the ARDAConvention in March. RCI SnapBook andRCI TV are both available for the AppleiPhone, iPad and iPod, with developersof the RCI TV application announcingone million video views within weeks ofits debut on RCI.com and YouTube.

A NEW APPROACHAs consumers’ thirst forflexibility in their

holidaymaking continues togrow, so hospitality companies arereinventing the timeshare product –and sales – to appeal in many differentways.

Macdonald Hotels & Resorts is onthe fourth phase of roadshows for itsfive-year timeshare sampler,Macdonald Complete. From £1,699,up to four people can take five years ofholidays inclusive of all fees.

Simple to understand, simple to buy– could this be the first Europeandeveloper inventory sold online?Simon Jackson, managing director of

A great deal has been said about the positioning of timeshare in

the marketplace. Brooke Doucha is senior corporate

communications manager at US-based Orange Lake Resorts,

and in a recent Ventures.com blog post suggests the industry

follows a five-step strategy for success:

■ Continue to share your growth stories. Communicating

your company’s growth and expansion with your key media

contacts helps strengthen the industry’s image as one that’s

resilient.

■ Be a place where people want to work. Use your mission and values statement

and make it come alive by ensuring it’s active in your company through your

employees. Also, empower your employees to be their best every day. Then, get

creative about telling others why you’re a great place to work, whether through the

recruitment pages of your website or via the social networks you use as a company.

■ Invite media to experience your property with their family or friends. There’s

no better way to explain our product than to experience it. A great tactic to help

consumers new to timeshare to understand the concept is to invite journalists to

your resort for a visit with their family. They’ll make memories together that

couldn’t be pitched by even the most savvy of PR professionals, and they’ll share

them with their readers.

■ Stay true to your sales process. When your company decides on a standard

sales tour experience for your customer, stick to it. The experience should be

positive, personable but professional, and consistent with each guest from ‘hello’ to

‘goodbye,’ whether the guest decides to purchase or not.

■ Work on your network. Our industry is lucky enough to have a tight network of

talented professionals. Connect with them via LinkedIn, Twitter, Facebook – or even

plain old email or telephone.

5 STEPS TO SALES SUCCESS

Macdonald Hotels & Resorts, said: “I don’t think it will be very long –maybe 12 to 16 months – until you’llbe able to go on to a website and signup for one of the Macdonald Completepackages.

“The only thing stopping us rightnow from a technlogical standpoint isthe legal document and how it’s signedin the proper manner. We’re talkingabout physical ownership of a unit forthe five-year term, fully covered bytimeshare legislation. We have to getthings absolutely spot on.”

Already the internet is playing a bigpart in lead generation. “There’s abanner on our site you can click tosign up for a roadshow, or ask for a call

BryanLunt

BrookeDoucha


QUOTE: WE TOLD GUESTS YOU CANMEET THE SALESPEOPLE, BUT YOUCAN’T BUY. JAMIE KLEIN

COVER STORY

back. We’ve already sold our productover the phone,” said Jackson.

Sophisticated customer profiling hashelped identify other prospective clientsamong the one million guests who stayeach year at Macdonald Group hotels.

Once at theroadshow, guests geta 25-minutepresentation and“then there’s aqueue to sign upand a queue for thedoor”, said Jackson.

From a relativelylow-impact salesstrategy, about 300 MacdonaldComplete packages have been sold.“Everything is very transparent, fromthe first generic email we send out.Nothing is hidden. You’ll have heardthe price several times before buying,”explained Jackson.

WHAT YOU SEE IS WHAT YOU GETTransparency is fast

becoming a buzzword in theworld of timeshare, and a great

example of the way the industry istaking accountability seriously

is its support of aconsumer-ledaccreditation scheme.

The TimeshareAssociation (TATOC) soft-

launched the initiative in2008 to help turn around the

negative consumer perception oftimeshare as “an endorsement bytimeshare owners, for timeshareowners”, according to its chiefexecutive officer, Harry Taylor.

Included in resort evaluations is amystery shopper visit to the salesdeck. “If your resort is TATOCaccredited, it is saying you're declaringyourselves to be open and honest,with nothing to hide and everythingto be proud of,” explained Taylor.

“We’ll have about 25 properties inthe network by the end of this year. Ithas been very well received and resortsare queuing up foraccreditation.”

Resort reviewersare timeshare ownerstrained by TATOC tounderstand everyaspect of resortoperations. Tayloradded: “One of theimportant things wedo is look at salespractices from top to bottom, includingthe package owners get, and how theyare spoken to. Then we look at thestandard of accommodation, marketing,health and safety – everything thatwould affect the consumer and theirholiday experience.” V

“RESALES IS NOTHING MORE THAN AN ECONOMICPROBLEM. IT HAS TO BE FACTORED INTO YOUR BUSINESSPLAN.” JAMIE KLEIN

“I DON’T THINK IT WILL BE VERY LONG UNTIL YOU’LLBE ABLE TO GO ON TO A WEBSITE AND SIGN UP FORONE OF THE MACDONALD COMPLETE PACKAGES.”SIMON JACKSON

“ACCELERATED USAGE WOULD ALLOW THE OWNERTO BRING FORWARD THEIR FUTURE USAGE RIGHTSSO THEY CAN ENJOY A MULTIPLE OF WEEKS IN

COMING YEARS.” PETER BOOTH

“WE OPERATE AS A RESALE ARM OF THAT PARTICULARRESORT AND WE WILL SET UP A SATELLITE SITE THAT IS

PURELY FOR THAT RESORT.” PHIL WILSON

INDUSTRY INSIGHT

Visit www.rciventures.com to tune into its library of podcasts by leading

shared vacation ownership industry expertson sales and resales.

SimonJackson

HarryTaylor


©2009 RCI, LLC. All rights reserved.

Want to talk success? In just sixyears, � e Registry Collection®exchange programme has gained over30,000 members and a globalnetwork comprising more than130 a� liates on � ve continents.We help developers like you positionyour properties for growth—while helping your owners enjoyexclusivity, superlative quality andunsurpassed service.

Ready for success that opens doors?Talk to us. We’ll hand you the key.

For more information, contact Kelly Render on tel: + 44 (0) 1536 536222 or Email: [email protected] to arrange an appointment, or for further information visit www.theregistrycollection.com

� e Registry Collection and related marks are registered trademarks and/or service marks in the United States and Internationally. All rights reserved.

� e Residence Club at Pronghorn, Oregon Quinta Real, Mexico � e Regency Country Club, Spain

Winner of the Best Fractional Service Award – 2009 Overseas Property Professional Industry Awards

Winner of Services To � e Industry – Fractional Life Awards 2010

2010 TRC Ad Key (Ventures).indd 1 9/3/10 10:03 AM

With five resorts and more than33,000 member families, TheAnfi Group is one of the world’slargest and most successfultimeshare companies. It’s alsoone of the most forward thinking,as STEVE ADAMS discovers.


THE ANFI Group and itsseries of stunning resorts onthe south west coast of GranCanaria is one of timeshare’sbiggest success stories. It’salso a classic example ofdreams being turned intoreality.

The Anfi Group was infact the dream of one man.Norwegian entrepreneurBjörn Lyng, founder of theLyng Group – a successfulorganisation specialising inindustrial engineering aswell as a diverse range ofactivities from salmonfarming to bathroomfitments, had been a regularvisitor to Gran Canaria whenhe spotted the potential of abarren hillside while sailingon his private yacht duringthe early 1980s.

THE VISIONLyng’s vision of a “holidayparadise in Gran Canariawith a commitment toexcellence, which ourmembers will refer to astheir home from home”went from dream to drawingboard to reality in sevenshort years. He bought theland in 1988, and the firstresort, Anfi Beach Club –affiliated to RCI – opened in1995.

During the next eightyears three more resorts –Club Puerto Anfi, Club

Monte Anfi and Club GranAnfi – were added, givingthe overall complex knownas Anfi del Mar and alsoaffiliated to RCI, a total of854 units. The complex hasa marina, shopping centreand white sandy beachwhich, together with theisland’s year-roundsunshine, created a salesproposition that has provedhard to beat.

All resorts are virtuallysold out, with membershipnumbering more than33,000 families, representingaround 100,000 individuals.Most owners are European,the majority coming fromUK, Germany, Austria,Switzerland, Holland andScandinavia.

But if the incrediblesuccess story of Anfi del Marmight seem like a hard act tofollow, it unbelievably looksset to be put in the shade by

the company’s latestdevelopment Anfi Tauro Golf& Luxury Resorts.

An all-encompassingproject, the resort in GranCanaria’s Tauro Valley offersluxury hotels, exclusiveleisure real estate and twogolf courses. It is also set toinclude a white sandy beach,timeshare and fractionalproperties including RCI-affiliated units, a 500-berthmarina, shopping centre,bars, restaurants andextensive leisure facilities(see panel, page 17). Theoverall resort will be largerthan many villages in thesurrounding area, accordingto Anfi Group CEO José LuisTrujillo.

“Anfi Tauro will offervisitors to Gran Canaria aresort of unprecedenteddimensions and services,from real estateopportunities, timeshare,fractional ownership, rentals,as well as facilities includingshopping centres, varieddining experiences, wellnessand recreational amenities,”he says.

“The Anfi philosophy hasalways been to providemembers with the best, so byproviding them with asuperior selection of resorts,facilities, service andamenities within onedevelopment, we are simplyrecognising our promise.”

The philosophy is a

QUOTE: OUR MARKETING EFFORTS HAVE TO REMAIN FLUIDAND WE HAVE TO BE OPEN TO METHODS THAT CANULTIMATELY ENHANCE OUR BUSINESS. JOSÉ LUIS TRUJILLO

RESORT PROFILE

DREAMTHE

FACTORY

workV-Anfi-sa-rbQ7-jp:Layout 1 2/9/10 11:23 Page 2


reflection of Lyng’s originalvision, and while thecompany founder died in2006, the currentorganisation – which isjointly owned by AnfiInternational BV and GrupoSantana Cazorla, a majorconstruction company –maintains its founder’sapproach.

BUYING THE DREAM“One of the early objectivesset forth by the Group was tocreate a home from home forvisitors, with luxurioussuites that members wouldbe proud to call their own,and a first-class service tomatch,” says Trujillo.

“A resort that would be

unpretentious and welcomepeople from all walks of life– ultimately, this is ourmarket.”

Trujillo explains that theresorts’ market largelycomprises professional,management and blue-collarworkers aged 30 to 59 with ahousehold income ofbetween £30,000 and£60,000. Further, thehouseholds are typicallymade up of couples orfamilies with children agedbetween five and 15.

With Tauro – whoseluxury accommodationincludes apartments (AnfiEmerald Club), a condo-hotel (Anfi Ruby Club) andvillas (Anfi Opal) – the

Pictured above:One of the villasat Anfi Opal, partof the 7,500-bedaccommodation atAnfi Tauro Golf &Luxury Resorts.

Pictured below:José Luis Trujillo,Anfi Group CEO,says the newresort “aims tocater to everyrequirement ofthe client”.

A DREAM RESORTThe sheer size of, and plannedfacilities for, Anfi Tauro Golf &Luxury Resorts are little short ofmind-boggling.

For starters more than over twomillion cubic metres of rock wereblasted away before building workcommenced, and the gardens andgolf area alone cover some 125,000 sq metres. To put that inperspective, all four resorts at Anfi del Mar account for 105,000 sqmetres between them.

The next phase of Tauro’sdevelopment will see the addition ofa marina village and harbour withup to 500 moorings, a yacht club andthe provision of services for boatowners. These facilities will all belocated next to Tauro beach, whichAnfi proposes to remodel usingwhite sand – a method usedsuccessfully at Anfi del Mar –covering a 600-metre stretch ofbeach.

The project will also feature asea promenade to unite the beachesof del Cura and Tauro, and there arealso plans for a shopping centre tobe built nearby. The two-storeybuilding will cover a surface area of18,000 sq metres and incorporate alarge selection of qualityrestaurants and retail outlets. Inaddition there will be a wellnesscentre, spa and extensive sportingfacilities, as well as a large selectionof dining options.

In total the resort – theaccommodation element of which isscheduled to have 7,500 beds – willcover an area of more than 1.5million square metres, and havesomething for everyone.

“Anfi Tauro aims to cater to everyrequirement of the client, from themoment they arrive to the momentthey depart,” says José Luis Trujillo.

“Theoretically it could beconsidered ‘all-inclusive’, as guestswill receive a comprehensiveselection of facilities and amenitieswhich would enable them to spendtheir entire time at the resort ifdesired.”


company has developed aproduct to match its market,according to Trujillo.

“Tauro is the future butthe dream is still the same,”he says, reporting that AnfiEmerald Club, a complex of119 apartments, is already 70 per cent sold out.

“Two- and three-bedroomunits with an average pricetag of around €40,000 arenow the focus of salesefforts.”

Trujillo says that asidefrom some fixed weeks fromunsold inventory, themajority of sales are points-based, and that longer-termAnfi owners are converting topoints to take advantage of

benefitsavailablethrough thegroup’s internalexchangesystem AnfiVacation Club,

which is also affiliated to RCI.“Our sales techniques are

quite simple and have provedsuccessful for over 20 years,”he says. “We listen to peopleand give them what theywant – dream holidays in aluxury, stress-freeenvironment with excellentexchange options.

“We’re also continuallyexploring new advertisingand marketing avenues andare currently achieving goodresults through socialnetworking campaigns andGoogle Adwords, as well asreferrals from differentsources, introductions frommembers and businesspartners.”

Trujillo explains that thecompany has set up severalagreements with marketingpartners in Europe, includinggolf clubs, car dealerships,airline companies, touroperators and even other

hotels and resorts, and isseeking to expand itsnetwork.

“We believe that thesestrategies, together with anexceptional level of service,are the factors that dictatesales conversion rates,” hesays.

In addition, Trujillosays the Anfi Group hasreacted to prevailingmarket conditions and theeconomic slowdown ofrecent years bydiversifying its productrange. As well as launchinga resales operation to helpowners who want to selldue to changing personalcircumstances, the grouphas also started marketingshorter-term membershipsand is considering afractional product at AnfiTauro.

“We have createddifferent products to suitthe needs of our clientsthrough our cold line andin-house operations,” heexplains. “Some havealready been implementedand others are underanalysis for the future.

“These products areshorter term ones than theexisting full membership,allowing buyers to enjoythe same benefits as fullowners, but with a lowerinitial investment. Ourmarketing efforts have toremain fluid and we have tobe open to methods that canultimately enhance ourbusiness,” he adds

“Through implementingnew marketing strategiesand strengthening existingones, our aim is for AnfiTauro Golf & Luxury Resortsto become regarded as theultimate holiday andlifestyle experience withinthe Canary Islands.”

WHAT’S NEXT FOR ANFIMaintaining a flexibleapproach, taking on achallenge and looking tothe future are all part of theAnfi approach, and there’sno sign of it changing.Trujillo calls 2010 “both achallenging and excitingyear”, announcing that thecompany is not onlydiversifying its productoffering, but also expandinginternationally, with plans

for a resort in Florida.“The phenomenal success

of the Anfi Group in GranCanaria has naturallyattracted the interest ofoverseas developers,” he says.

“We are currentlynegotiating the launch of anAnfi offshoot in Florida inthe US. This is set to beanother exciting and uniqueventure for the Anfi Group.”And another dreamrealised…


QUOTE: A HOLIDAY PARADISE IN GRAN CANARIA WITH ACOMMITMENT TO EXCELLENCE, WHICH OUR MEMBERS WILLREFER TO AS THEIR HOME FROM HOME. BJÖRN LYNG

RESORT PROFILE

V

ANFI MILESTONES

1988 Björn Lyng buys the land for the Anfi del Mar project.

1992 Anfi International BV founded by the Lyng Group.Construction of Anfi Beach Club begins.

1995 Anfi Beach Club completed, offering 282 luxuryapartments. Construction of Club Puerto Anfi begins.

1997 Club Puerto Anfi completed, offering 165 luxuryapartments. Construction of Club Monte Anfi begins.

1999 Club Monte Anfi completed, offering 237 luxury apartments.

2000 Preussag AG (formerly World of TUI) takes 51 per centownership of Anfi Sales S.L. and Anfi Resorts S.L. Nine-hole golfcourse opens at Anfi Tauro.

2001 Construction of Club Gran Anfi begins.

2002 Construction of Anfi Tauro begins.

2003 Club Gran Anfi completed, offering 185 luxury apartments.

2004 Anfi Tauro town houses and villas completed. SantanaCazorla Group becomes joint shareholder of Anfi Group, takingover Preussag’s shareholding. New Anfi Group name and logocreated. Construction of 18-hole golf course at Anfi Tauro begins.

2006 Opening of on-site mini-golf course.

2007 Inauguration of 18-hole golf course at Anfi Tauro. Al Gore,former US Vice President and environmental campaigner, staysat Club Gran Anfi.

2008 Anfi del Mar awarded CNBC International Property Award2008 (Europe & Africa).

2009 New look and relaunch for website anfi.com.

2010 Relaunch of enhanced Anfi Vacation Club, including onlineaccess to points balance. Plans announced for internationalexpansion into Florida.

Björn Lyng


NORTHERNEXPOSURE

THE POPULATION of the Scandinaviancountries (Sweden, Norway and Denmark) are nostrangers to the concept of timeshare. They havelong appreciated the benefits of vacationownership and are regular buyers in southernEurope, particularly Spain and the Canaries whichoffer a complete contrast to their domesticholiday experience. In contrast, in Finland, 90 percent of RCI members own in their own country.

The entire region is home to a growingtimeshare sector that has enjoyed a major boost inrecent years with two of the area’s biggesthospitality brands and RCI affiliates – HolidayClub Resorts and SkiStar – devoting much of theirenergies to promoting vacation ownership in thearea.

Riitta Apiola, RCI’s regional director for the


Nordic countries, says that the quality andreputation of these developers are a key factorin the growth of timeshare in the region. “In2004, Holiday Club Resorts opened a fantasticspa resort in Åre, in northern Sweden, whichoffered many on-resort activities.

“That resort started a new wave of timeshares.Last year, we affiliated the most famous ski brandin this region – SkiStar – with two resorts in thepopular Swedish ski resort of Sälen, and thecompany is expanding into Norway in 2011.These two affiliates are definitely boosting theindustry profile in the Nordic region.

“We are fortunate to have these brand namesin our market – it really helps that people cansee such trustworthy and reputable companiesinvolved in our industry. There are also some

QUOTE: WE’VE HAD AN EVOLVING STRATEGY FOR MANY YEARS TO GETOUR CUSTOMERS TO BOOK THROUGH THE WEB AND IT’S WORKINGREALLY WELL. TOMMY ABRAHAMSSON

MARKET REPORT

Pictured top:Holiday ClubKuusamonTropiikki, amixed-useresort in Finland.Pictured above:RCI’s RiittaApiola.

The Nordic and Scandinavian countries might not be a typical‘sun, sea and sand’ timeshare destination, but they are hometo a flourishing vacation ownership sector with potential for

significant growth. GEORGE SELL reports.

workV-MktRep-sa-rbQ7-JP:Layout 1 2/9/10 14:46 Page 3

existing and new, smaller affiliatescoming on board who willbenefit from the positiveconsumer perception of timesharein this region, thanks to theestablished brands.

“Our affiliates in Finlandalways adhere to Europeanlegislation and the ethics of RDO,so we haven’t had many problems.Sales staff are very well-trained, tosell both their own resorts and theRCI exchange programme in theright way.

“In Sweden, timeshare hadquite a bad reputation in its earlyyears because of ‘roadshows’ that didn’t deliver what theypromised, but things haveimproved a lot there.”

Apiola offers an interestinginsight into the differencesbetween the Nordic countries.“Typical timeshare buyers are 50-plus years old, middle classpeople. Today we are getting morefamilies and younger people, whoare starting to appreciate thebenefits of the activities andservices that resorts offer, as wellas the high-quality units.

“In Finland, people like to taketheir holidays at lakeside resortsduring the summer months. Weare blessed with so much naturalbeauty and, in places like Laplandwith its ‘nightless night’ in mid-summer, you can even play golf 24 hours a day. Around 50 percent of our RCI Points members inFinland take domestic holidays butthey also use their Points to go tothe Canary Islands, mainlandSpain, Florida and the Caribbean.Thailand is also very popular.”

Apiola says RCI’s Norwegianmembers mainly own in theCanaries and southern Europe,while strict legislation inDenmark means timeshare canonly be sold to Danish citizens,and through a registered broker.She reports that Danes are “activetimeshare buyers”, with RCImembers largely owning inDenmark and the Canary Islands.


QUOTE: THE FINNISH MARKET IS GROWINGSTEADILY, AT AROUND FIVE TO TEN PERCENT ANNUALLY. VESA TENGMAN

MARKET REPORT

GOING FOR GROWTHDuring a difficult economic period for many industries, discretionaryspending on holidays and vacation property has been hard hit. But in theNordic region, the main players are upbeat about the prospects.

Vesa Tengman, CEO of Holiday Club Resorts – the region’s biggesttimeshare operator with 29 RCI-affiliated resorts, says: “The Finnishmarket is growing steadily, at around five to ten per cent annually, and theSwedish market is expected to grow more rapidly.” As Finland’s marketleader, 25 of HCR’s resorts are located in the country, while the companyhas launched an overseas expansion programme and now has threeresorts in Sweden and one in Spain.

Ralph Torgersson is a director of Hotel Kullaberg Sea Club in Sweden,a 19-room mixed-use hotel resort in the town of Mölle, with each roomgiven its own themed decoration.

He says: “Timeshare is not a big industry here yet, but it is growing. Ithink within a few years it will be a successful business in Sweden –although it depends on the economic situation.

“In the first year of the recession the hospitality industry wasn’t hit toobadly, because we had a lot of Danish visitors as their currency was verystrong against ours. But in the last year the Danish krone has gone downaround 25 per cent against the Swedish krone, so the number of Danishvisitors has dropped off.”

Tommy Abrahamsson, project manager of resort developer SkiStar,reports that more than two million people have visited the company’sproperties, with more than one million visiting its resort in Sälen alone.

“I believe our timeshare element will continue to grow as more peoplediscover the product either through visiting as skiers or through ourconnection with RCI,” he says.

“We have the potential to grow and expand in two countries and nextyear we will open a second resort in Norway. We are starting to get theconcept of timeshare known in the region and develop its credibility, aswell as promoting the attractions of Norway in general.”

Pictured top:Holiday ClubResorts’ latestproject is SaimaaGarden Resort, a mixed-useresort near Lake Saimaa in Finland. Above right:Facilities atHoliday ClubKatinkulta atVuokatti inFinland includean 18-holechampionshipgolf course.

Pictured below:Vesa Tengman,CEO of HolidayClub Resorts, the timesharemarket leader inFinland with 25resorts.



One of the uniquechallenges facing anySwedish resort is theextreme variation inseasons due to itsnorthern location –the sun shines foralmost 24 hours inmidsummer, butwinter offers only afew brief hours ofdaylight. Resorts haveused a range of tacticsto extend theirseasons, and timeshareis playing a major rolein this.

At Hotel Kullaberg,becoming an RCIaffiliate changed theresort’s entire businessmodel. Torgerssonsays: “There are threepartners in ourbusiness and wediscussed thisparticular hotel,deciding it hadpotential to be used ina better way becauseit’s quite a shortseason in Sweden ifyou rely on thetraditional summertrade.

“If we were able toreach a bigger market,we thought we couldget visitors to come allyear round. This is abeautiful area, andsome peopleappreciate it inNovember andDecember, others inApril and May – it’sdown to individualtaste.”

Torgersson says thehotel was originallyrun as a smallconference hotel inautumn and winter,with holiday clientsduring the summer.

RESORTS FOR ALL SEASONSThe former ownerrealised that timesharecould provide anopportunity to furtherdevelop the hotel.

“The hotel wasalways fully booked inthe summer but therest of the year wasdifficult,” explainsTorgersson. “From adeveloper’s point ofview, it’s good to havethe restaurant andbistro businessesrunning moreefficiently and makingmoney through the‘dark half’ of the year.From October toMarch we need moreclients to keep thingsrunning, and we hopeto get RCI visitorsduring these months.”

Torgersson wasintroduced to RCIwhen he purchased atimeshare in theCanary Islands. Hesays he and hisbusiness partnersturned to RCI afterinitial problemsdeveloping a usageplan that suitedbuyers. “We saw theopportunity to joinRCI and sell week-by-week, while alsooffering our membersthe opportunity totravel within the RCInetwork. We thoughtRCI exchange couldbe a good option.”

At SkiStar inSweden, the developerhad the oppositeseasonal situation. Thecompany owns resortsat Sälen, Åre andVemdalen in Sweden,and Hemsedal andTrysil in Norway, and

Pictured thispage: HotelKullaberg SeaClub in Mölle,Sweden, waspreviously run asa conferencehotel butexperienced lowoccupancyoutside thesummer months.Many of theresort’s roomsare decorated inthemes, while therestaurant offersstunning views ofthe harbour andout to sea. RCI’sRiitta Apiolasays: “We thinktimeshare hasmany faces, andthe idea behind itis to give peopleexperiences andmemories. HotelKullaberg bringssomething newto our portfolio.”

Pictured below:Ralph Torgersson,director of HotelKullaberg SeaClub.


has a huge 41 per centof all Scandinavian skipass sales. But SkiStarproject managerTommy Abrahamssonsays: “When you arerunning a ski resort,the hardest thing todo is to get people tocome in summertime.

“We currently seeabout 50,000 guestsvisiting us during thesummer and we knowthat number could bemore. Our resorts arefully booked over thewinter. Through RCIwe saw the possibilityof getting guests tocome to us outside themain winter season.

“At our resort inSälen, for example, wehave made real effortsto introduce moreactivities for thesummer guests. We’vefitted the ski lifts withbike holders, so peoplecan take their bikes upthe mountain and rideback down. We have alot of differentactivities around theslopes for the summer,and we also offercanoeing and fishingin the beautiful naturalsurroundings at ourresorts.”

HCR’s Tengman has always taken aninnovative approach tosecuring higher year-round occupancylevels and HCR hasbeen especiallysuccessful with itscorporate timesharesales programme.Recognising thepopularity of natureretreats amongFinnish families,Tengman launched a

loyalty programmeallowing majorcompanies andnational unions,which had previouslyowned andmaintained holidayhomes for their staff atconsiderable expense,to offer weeks to theirstaff. “This allowscompanies to offer thesame staff benefitsmore cost-effectivelyand is now animportant andgrowing part of thebusiness, bringing in€6 million revenueduring the last year,”said Tengman.

In another initiativedesigned to reach newbuyers, HCR is set tolaunch a new productcalled Holiday ClubVillas. With thismodel, the buyers willown the apartmentoutright and canreserve a maximum ofnine weeks annuallyfor their own use,while the remainingweeks will go into aHoliday Club rentalpool from which theowner receives anincome, therebyensuring the ownersget the most out oftheir ownership bymaking the propertywork for them all year.

REACHING NEWMARKETSAnother notableaspect of the marketin the Nordiccountries is theextent to which it isdriven by domesticvisitors. Althoughthere is someinterchange between


QUOTE: FROM A DEVELOPER’S POINT OF VIEW, IT’S GOOD TO HAVE THERESTAURANT AND BISTRO BUSINESSES MAKING MONEY THROUGH THE‘DARK HALF’ OF THE YEAR. RALPH TORGERSSON

MARKET REPORT

Pictured thispage: SkiStar has resorts inSälen, Åre andVemdalen inSweden, andHemsedal andTrysil in Norway.The companyaccounts for amassive 41 percent share of allski pass sales inScandinavia, andmore than twomillion peoplehave visited itsresorts.

Pictured below:SkiStar projectmanager TommyAbrahamssonsays the hardestthing aboutrunning a skiresort is “to getpeople to come insummertime”.


A WORLD OF POTENTIALThe expansion of timeshare – and the RCIPoints programme – in the Nordic regionoffers a major opportunity for developers tomove from a visitor pool made up almostentirely from domestic customers to a moreinternational clientele. The wider travelindustry in the region has done this quiteeffectively in recent years, according to RCI’sRiitta Apiola.

“Summer in Lapland is very popular withvisitors from Eastern Europe, Italy, Germanyand France,” she says. “We also get a lot ofJapanese visitors in winter.”

In a troubled period for internationaltourism, Sweden actually saw a 1.2 per centincrease in overseas visitors in 2009, one ofthe very few countries in Europe to showpositive growth.

Around one-third of all foreign visitors toFinland are from neighbouring Russia, while theGermans are Norway’s biggest visitor group.

the countries in theregion, Swedes tend toholiday in Sweden,Finns in Finland andso on.

Tengman says:“Generally timeshareis a domestic productand if buyers want totravel overseas they canuse the RCI exchangeprogramme. Howeverin Finland we are alsoselling to the Russianmarket, and in Swedento the Norwegianmarket.”

Not only is HCRbuilding resortsoverseas, it is alsolooking to sell tooverseas sourcemarkets and, with aclear appreciation ofthe strength of theRussian market, iscurrently building aresort at Lake Saimaain Finland, close to theRussian border. HCR’sSaimaa Garden Resort,to be affiliated to RCI,is a €200 million, 10-year project whichwill include 400 to500 timeshareapartments and a spahotel. The first phasealone has seen aninvestment of some€100 million.

And lookingbeyond its nearneighbours, Tengmansays HCR plans tofurther boost its brandand presence in theMediterranean viamarketing co-operation, investmentand possible companyacquisitions.

Hotel Kullaberg’stimeshare customersare “99 per cent fromSweden”, according to

Torgersson. “We sendinvitation cards topeople fromStockholm and thesouth – people whowe think could have aninterest in buying ourproduct. It’s partlyguesswork so theyhave to be income-qualified and we havevarious criteria peoplehave to fulfill beforewe invite them.”

Affiliating to RCIhas broadened the mixof nationalities whocome to the hotel,with Torgerssonreporting RCI clientsfrom Finland, the UK,Germany and someSwedish owners fromother resorts.

At SkiStar themarketing channelshave been narroweddown to a nearexclusiveconcentration on theinternet. Abrahamssonsays: “We do useadvertising but ourmain channel is ourwebsite. Approximately80 per cent of ourbookings are throughthe website. We’ve hadan evolving strategy


Pictured top and above: Alpin Lodge, SkiStar’slatest property, is a mixed-use resort inHemsedal, Norway, due to open in 2011. A ski-in,ski-out resort, the complex will feature apartments,hotels, restaurant, bar, grocery store, ski rental,sports shop, ski school booking and ticket office.

for many years to getour customers to bookthrough the web andit’s working reallywell.

“SkiStar’s brandstrength hascontributed to itsinternet success. Thecompany is quoted onSweden’s stock market(OMX) and has aturnover of almost twobillion SEK, whichattracts positive PR andcredibility totimeshare in Sweden.

“Our timesharebuyers are mostlyexisting customerswho have been to theresorts before and likeour new timeshareconcept. Our maintarget now is toexpand vacationownership to all ourfive destinations, andto get a strongposition in thetimeshare market.

“It’s going to bereally interesting forus to see how ourguests use theirtimeshares, andwhether they movearound between ourresorts.” V


With the fractional market reaching a levelof maturity in Europe and the region’sinnate diversity allowing for a great breadthof product, the industry sector is set forfurther expansion. SARAH LEE reports


AS IN other parts of the world, the European fractionalstarted life as an exclusive, upscale product and thoughquality remains an industry hallmark, today a growingnumber of mid-market properties are being developed inthe region’s popular holiday resorts.

Recognising a growth in demand for the mid-marketfractional, RCI has developed a product to match. AlongsideThe Registry Collection portfolio of exclusive fractionaldevelopments it is now offering an RCI Points fractionalproduct to resorts. Launched successfully in the US, Pointsfractionals are being introduced in Europe to offer moreflexibility and greater availability to fractional owners.

According to Nick Turner, vice president Europe, TheRegistry Collection and Fractional Ownership Developments,

there is a gap in the market which has beenidentified as an opportunity for theindustry.

“At the moment the industry has thebenefit of two very strong existing marketscoming together successfully,” he said.

“Timeshare developers are looking atoffering existing owners the opportunity to

buy an upgraded product with more features andownership at the end of their use. Whole ownershipresidential developers are also looking at fractionals forpeople who can’t afford a wholly-owned second property.It fits very nicely between the two areas of leisure propertydevelopment.”

He added: “People still aspire towards bricks and mortarand owning a place in the sun but there’s a stark realisationthat going to a High Street bank and asking for a mortgagefor a holiday home is not something they want to do.”

Turner explained that the new RCI Points fractionalproduct has been introduced for resorts that don’t meet TheRegistry Collection’s exceptionally high entry levels, eventhough the properties are of a high level of quality. Throughaffiliation to RCI Points fractionals, such developers will beable to offer their potential purchasers a wide range ofbenefits and holiday stay choices available through the RCIPoints exchange platform.

“This allows their owners to exchange for two, three,

four or more weeks of the year, leveraging our existingnetwork of 4,000 affiliated resorts worldwide,” Turner said.

“Developers are looking for any potential opportunity todistinguish their product by providing more features,benefits and value, so coming into RCI Points is a veryquick win to strengthening their mid-market proposition.”

The new product is something First National TrusteeCompany’s (FNTC) Lisa Migani, an advocate of the mid-market fractional model, supports: “I think this is a greatmove for RCI and fractional developers,” she said.

“The exchange opportunities will work well for thefractional product, and I personally feel that the exchange

QUOTE: WE ALSO BECAME AWARE THAT PEOPLE VISITING CORNWALLWERE KEEN TO OWN A HOLIDAY PROPERTY THERE BUT NOT KEEN TOTAKE ON THE RESPONSIBILITIES. ROBIN MORTIMER

FRACTIONAL

NEW DAWN FOREUROPEAN FRACTIONALS

Pictured below and left:Sunset Springs resort is a

modern luxury developmentnear Limassol in Cyprus. Due

for completion in 2012, theresort is comprised of

one- and two-bedroom unitsand a host of amenities.

Nick Turner

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component is a vital part of the whole package. There’s a lotof interest in fractionals now from developers outside theindustry who have some very nice real estate on theirhands. But we also have timeshare developers, some ofwhom have always been involved in construction, startingup mid-market fractionals and looking at volumes.

“It’s an exciting time as we are really seeing an upturnin the market – fractional is the name of the game.”

Two resorts set to debut as RCI Points fractionals are theLiving Quarters in Cornwall in the UK and Sunset Springsin Cyprus. Both are mid-market products – prices for theLiving Quarters start at £24,950 per eight-week in-perpetuity fraction, while Sunset Springscomes in at €20,000 per 12th fractionalshare. Though Sunset Springs was originallyaimed at whole-ownership sales and theLiving Quarters developed by a companymore accustomed to holiday rentals, bothwere keen to leverage the advantages of thefractional model.

The Living Quarters’ founder Robin Mortimerexplained: “We owned too many properties in one area ofCornwall and two years ago decided we should diversify.We found that people were very interested in visitingCornwall year after year, but didn’t want the responsibilityof owning property as they didn’t know what they woulddo with it when not in use.

“I’d been to the US and seen the fractional model inaction there and thought it could work for us. Also when Irealised some of the big players in hospitality such asWyndham and Hilton were involved in the fractionalindustry, I knew it was a viable model.

“We also became aware that people visiting Cornwall werekeen to own a holiday property there but not keen to take onthe responsibilities of a whole ownership, so not so ideal. Thefractional model gave them all the benefits of ownershipwithout the difficulties of owning from a distance.

“We decided on a mid-market property as we want tosell to the younger ‘man in the street’ and wanted to makeit accessible to people on normal incomes.”Lisa Migani



QUOTE: THERE’S A LOT OF INTEREST IN FRACTIONAL NOW FROMDEVELOPERS OUTSIDE THE INDUSTRY WHO HAVE SOME VERYNICE REAL ESTATE ON THEIR HANDS.” LISA MIGANI

FRACTIONAL

Pam Prince of Pure Cyprus Invest is themarketer for Sunset Springs, which is due forcompletion in 2012. She warned that the fractionalindustry is not an easy option to selling distressedwhole-owned property.

“Today, even if you have good clients that canafford whole ownership it’s harder for them to getfinance,” she said. “It’s important for us to ensurethat the developers we are working with aremoving forward and continue to be profitable, sothe fractional model is a good one to consider.

“But developers have to make sure their propertyis up to scratch. In the past developers could builda property and not have to pay too much attentionto the details, features or amenities on site.

“Clients are buying into a lifestyle. They don’t want tobuy an apartment in a block with a pool in the middle. Ifyou are looking at moving into the fractional market youneed to have certain resort facilities. Developers also needto be involved in the long term so they must consider thefuture management of the property.”

Though the mid-market is flourishing, traditional high-end fractional products continue to thrive and bedeveloped, such as The Registry Collection’s latest affiliationThe Village at Machrihanish Dunes, in Scotland. Theexclusive golf resort near the Mull of Kintyre is selling two-bedroom properties in four-week fractions from£46,900.

Marc Wexler, project executive of US-based projectmanagers Southworth Development, said: “We aredeveloping 32 luxury cottages, averaging about 1,000-square feet. We wanted to differentiate them from standardtimeshare products and move away to a different story.

“The shared equity model we are using does that – ourfractions are in perpetuity, as opposed to a 50-year leasewhich you might get with timeshare, as this gives people atrue investment proposition.”

SEASONALITY AND MARKETSAs diverse as these three featured fractional properties are,they have at least one thing in common – a long season and

enough attractions to keep people returning year-round.Mortimer said: “We have a long season in Cornwall from

Easter straight through to October, then Christmas and NewYear are also becoming very popular. There are also severalgood quality restaurants and attractions in the countywhich, alongside improved road networks and daily flightsto Newquay and Plymouth, are making Cornwall more andmore popular throughout the year.”

Cyprus is blessed with a long season making it ideal for fractional ownership, according to Prince. “It’s a near year-round destination and a good golf one,” she said.“Often you’ll find golfers want to travel outside the hottesttimes of the year, which also strengthens the length ofseason there.”

Machrihanish Dunes’ project manager, SouthworthDevelopment, has been involved in numerous projects inthe US and the Caribbean but this is its first in Europe.Wexler explained it was simply a case of waiting for theright opportunity. “We were, and still are, consideringother countries but Scotland is the home of golf so this is agood first European venture for us,” he said.

Wexler also explained that the Mull of Kintyre has amicro-climate that means it’s protected from the worstravages of a Scottish winter, giving their property longevitythroughout the seasons.

Pictured this page:The Atlantic Reach

four-bedroom villasat the Living

Quarters are just fivemiles from the

beaches of Newquayin Cornwall. Amongthe resort’s on-site

amenities are heatedindoor and outdoor

swimming pools.



“A key target market for our product is executive levelprofessionals – it’s a product for successful people who have a tastefor a certain lifestyle,” he said.

THE IMPORTANCE OF EXCHANGEThe Living Quarters’ fractional developments comprise threeproperties across two sites and, as well as having exchange optionsthrough the RCI Points programme, they also have links withdevelopers overseas to offer internal exchanges in the future.

Mortimer said exchange is “a real benefit of RCI affiliation”as people can tire of visiting the same place. He added: “We feelRCI is experienced in the fractional market and that thisexperience is advantageous as we were completely new to theindustry. RCI has provided us with a lot of help. And as thefractional is relatively new in the UK, RCI’s involvement givespeople confidence.”

Wexler added: “The Registry Collection certainly is the RollsRoyce of exchange programmes and our property is of a calibrethat we would not want to affiliate with anything less. We also feltan exchange programme offered our owners great flexibility.”

Pictured this page: The Village atMachrihanish Dunes is an exclusivegolf resort comprised of luxurytwo-bedroom cottages near theMull of Kintyre in Scotland, and thefirst European development bySouthworth Development. V


Italy has long been an attractive but challenging timeshare market. Celebrating25 years as leading marketers in the Italian industry, Gruppo LCL, know moreabout what makes it tick than most, as SARAH LEE finds out.


TURIN-based Gruppo LCL issomething of a stalwart of Italy’sshared ownership industry. Thecompany first entered theindustry back in 1985 marketingIschia Uno Residence, but thiswasn’t its first taste of timeshare.Gruppo LCL founder and CEOLoris Cappelli started the family-run business after experiencingthe product for himself.

“After buying a timeshareand discovering this fantasticproduct, I started to operate inthe field, from there I foundedLCL Group,” he said. “Eventoday, two of my four children,Alessandro and Ambra, areworking in the company andonce the other two completetheir studies they will have thechance to decide if they want tobecome part of the LCL team.”

Following the success of itswork with Ischia Uno Residencethe company began selling asecond resort, Residence VerdeMare in Sardinia in 1994 and in2001 became one of the firstcompanies in Italy to embraceRCI Points.

Gruppo LCL has sincebecome the sales and marketingforce behind a number of Italianresorts including Borgo al Sole inthe Dolomites, Torre Inserragio ITramonti and Portoselvaggio,Puglia, and Tuscany-based IlPoggio. Earlier this year it starteda collaboration with CamporossoII, an alpine ski resort two hoursfrom Venice.

Cappelli said: “We feel very

much a part of the Italiantimeshare market – we’ve alwaystraded here and I’m sure wealways will. Many, manycustomers have bought timeshareowned or marketed by us.”

For Cappelli, Italy’s strengthis the fact that most of itsresorts are in drive-todestinations and offer holidayoptions from beaches tomountains, cultural cities,thermal waters and more.

He explained: “We’re mindfulthat the average Italian takes atleast two holidays a year. Sowe’re always looking to enrichour portfolio of resorts so we cancover all types of holidays – fromthe exclusivity of Sardinia to thebeauty of Il Salento, or IschiaIsland and its breathtaking viewsof Naples Bay and Etna, to theTuscan countryside and the skiresorts of the Dolomites.

“This wide range ofdestinations not only contributesto our customer satisfaction butallows us to keep selling furtherweeks to existing clients.”

Given the company’slongevity and dedicated focus onthe Italian market, Gruppo LCLis an expert in the field and hasseen Italy’s timeshare industrygrow and mature. But how has itchanged in the past 25 years?

“From our perspectiveopportunities have increased,”said Cappelli. “People no longersimply look for timeshare duringthe classic four weeks of August.They are also looking for a wider

variety of holiday. People are notonly interested in sunbathing atthe beach, but also in wellness,culture, tradition and lifestyleresorts. This is also where RCI’sexchange product becomes akeystone in our value propositionto customers. Its servicingplatform and the range ofopportunities offered by itsexchange system cannot becompared to any other company.

“RCI exchange greatlyincreases developers’ chances ofselling and changes ourapproach to marketing. We haveadapted it to the requirements ofa more experienced consumerbut the basics remain the same.We work exclusively on site, aswe believe the client needs totouch and experience theproduct before making thedecision to buy.”

But the market is still notwithout its challenges andCappelli says the biggest isincreasing the number of newcustomers while keepingmarketing costs withinreasonable budgets. Added tothis is the constant need tochallenge preconceived ideasabout the product, and to fight

against unscrupulous companiesand the bad press they generate.

“As an industry we need towork on customer satisfactionas well as actively fighting thosewho operate outside ethicalboundaries,” said Cappelli.

The Italian market is alsorenowned for somethingCappelli has termed the ‘July-August problem’ – the result ofItalians’ love of holidaying inpeak seasons. But how are theyhelping resorts overcome it?

“If a customer needsholidays in July and August theyhave two solutions: the first is tobuy peak season holidaysthrough travel agents and paythe corresponding rental fee. Thesecond option we recommend toclients is to acquire a peakseason timeshare week that willgive them not only guaranteed

QUOTE: THIS IS WHERE RCI’S EXCHANGE PRODUCT BECOMES A KEYSTONE IN OUR VALUE PROPOSITIONTO CUSTOMERS. ITS SERVICING PLATFORM AND THE RANGE OF OPPORTUNITIES OFFERED BY ITSEXCHANGE SYSTEM CANNOT BE COMPARED TO ANY OTHER COMPANY. LORIS CAPPELLI

MARKETING

25 YEARS OF PUTTINGTHE CUSTOMER FIRST

RCI’s Enrique Gutierrez,left, presents awardsrecognising the company’slong-term businessrelationship with GruppoLCL to Loris Cappelli (CEO),Alessandro Cappelli (salesdirector) and AmbraCappelli (assistant director)

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holidays every year in peakseason if they decide to use it,but also a high trading powerthat will increase theiropportunities of exchange intoother resorts during the mostdemanded dates of the year.

“Often we find customerswho need to travel during peakseasons have bought timesharein destinations and seasons thatare not very appealing to ourmarket. It is our job to explainthat the location and the datesthey acquire are a keycomponent of the product. Putsimply, if you love eatingauthentic pizza napoletana, youhave to go to a pizzerianapoletana!”

LCL-Assistance wasestablished in 2003, and isGruppo LCL’s customer serviceprogramme which works closelywith clients to serve their needs.Cappelli said: “It may seem trite

but we saw that our customersare our first source of newcustomers – they bring us manyof their friends, so customerservice is vital.

“The daily challenge is toimprove LCL-Assistance andmake it a more efficient division.To do this it is essential to ‘hear’the customer’s requirementsand try, if possible, to makethem a ‘tool’ to fill the service.Special thanks goes to RCI’smember service team in Corkwith whom LCL-Assistance isalways in direct contact.

“In our 25 years RCI hasevolved a lot with differentproducts, but we’ve seen it alwaysmaintains the goal of deliveringhigh customer satisfaction and aslong as this remains we’ll keepworking alongside RCI.”

RCI’s affiliate servicesmanager for Italy, EnriqueGutierrez, said: “Gruppo LCL has

been a travel companionthroughout RCI’s journey in Italysince its earliest days. AlthoughLoris Cappelli and his team areveterans of our industry they arealways ready to embrace change.Their marketing and post saleservices, together with the longterm commercial relationshipwith RCI affiliates, are a winningformula, and will continue to beso for their next 25 years.”

Clockwise from topleft: Ischia Ponte,close to the firstresort marketed byGruppo LCL,Castello Aragonesedi Sera on the Isle ofIschia, the pool andgarden areas atResidence VerdeMare in Sardinia.

V

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Johann Redfernhas spent nearlythree decades inthe timeshare andleisure industries,working her wayup fromhousekeeper toher current role asgeneral managerat one of the UK’slargest timeshareresorts, MacdonaldDalfaber Golf &Country Club.STEVE ADAMSdiscovers whathas made her staythe course…


A TIMESHARE

VENTURES (V): How did you getstarted in the industry?JOHANN REDFERN (JR): Byaccident really. Though I’mScottish, I moved to Cornwallwhen I was a child. After gettinga degree in Horticulture I went

to Scotland to visit my grandparents for Christmasin 1984. While I was there I got a housekeeping jobat Stakis Coylumbridge [a mixed-use resortcomprising a 275-bedroom hotel and 52 timeshareunits] and never returned to Cornwall!

V: What made you stay so long?JR: I loved it. The people were great, and the 9-5hours were ideal as they enabled me to do otherthings with my evenings. I learned a lot and my jobkept changing so I never had time to get bored. It’ssomething that you learn to love and you meet somany interesting people. Over the years I’ve madesome very good friends from all walks of life.

V: Did you know much about timeshare before you started?JR: Not really – I just thought it was for extremelywealthy people who had to be treated extra special!From the hotel’s perspective the timeshare guestswere our bread and butter in the winter, keepingthe bars and restaurants busy during the quietertimes. Not that Coylumbridge was ever really quiet.

V: You’ve come a long way from your first job as ahousekeeper – how did your career progress?JR: Housekeeping was my main forté for manyyears and I worked my way up to headhousekeeper, lodge manager and assistant resortmanager. I left to work for a small family hotel for awhile, rejoining Macdonald Hotels & Resorts towork in food and beverage and restaurantmanagement before becoming general manager

at Macdonald Lochanhully Woodland Club Resortand now Macdonald Dalfaber Golf & Country Club.

It’s been a gradual process and I’ve beenlearning along the way which is really important.The office and financial side of things were part ofthat learning curve – I’m definitely more of a peopleperson than an accountant. I’m also dyslexic so tohave got this far and be doing what I’m doing todayis a big deal to me.

V: You’re a very good example of how someonecan really develop a career in this industry and atMacdonald Hotels & Resorts in particular.JR: The Macdonald Group is very good to work for.The staff have goals and a focus to work towardsand what I’ve achieved proves there is opportunityto improve your career with the right company.Managing director Simon Jackson is a good andvery direct manager, and the management ingeneral are efficient and like to challenge staff todo better.

V: What is a typical day for you?JR: There is no typical day – that’s what I like aboutthe job, you don’t know what you’re going to faceeach morning. At timeshare resorts every day isdifferent and it’s a challenge to make sure that yourguests are all happy and the organisation isheading in the right direction.

The progress at Dalfaber has been fantastic –we’ve just had a huge refurbishment with newleisure facilities and foyer, plus we’re adding a newbar/restaurant. We’ve also been proactivelyrefurbishing all the timeshare lodges as part of ourset refurb programme.

V: What makes a great resort?JR: You’ve basically got to set a high standard fromthe word go. It’s an old cliché but first impressionsalways last the longest so you need to ensure

QUOTE: AT TIMESHARE RESORTS EVERY DAY ISDIFFERENT AND IT’S A CHALLENGE TO MAKE SUREYOUR GUESTS ARE ALL HAPPY. JOHANN REDFERN

PERSONAL PROFILE

LIFE

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guests get good communications from reception, staffare smartly dressed and units are in perfect condition.To achieve this, managers need to ensure the rightpeople are in the right jobs.

Our focus must always be on giving guests thebest holiday we possibly can. I think it’s important tomake contact on their arrival and supply informationabout what’s on at the resort and locally. I hold awelcome party every Sunday morning whether I’msupposed to be working or not – it’s an importantfocal point because that’s when you meet people whodon’t regularly come to the resort, such as rentalvisitors.

V: What changes have you seen in the industry over the years?JR: One of the main things has been the constantneed to modernise – something we’re always doing atour resorts – and the increasing use of technology.

We’ve just upgraded to the Merlin booking system– which is quite a step up after using a filing cabinet,

ledger books and handwritten registration cards!Technology and computer systems also enable us

to have information on guests prior to arrival whichhelps us to find ways to better a guest’s experience ontheir holiday, which is our main focus.

V: What changes would you like to see in thetimeshare industry in the future?JR: As well as wider and better use of technology, Ithink we need to consider a different type of ownership.Most timeshare in Scotland was sold in perpetuity, but Ithink shorter-term ownerships of five, 10, 15 and 20years would be more attractive to a lot of people.

Macdonald Resorts does look at these changingsituations and operates a resales operation to help itsowners to sell if they want to. I think the industry ingeneral would benefit from selling shorter and moreflexible ownership plans.

Johann helps to ensure unitsat the resort are in perfectcondition for each guest.

Macdonald Dalfaber Golf &Country Club is one of theUK’s biggest resorts.

V

Johann RedfernCAREER NOTES

1984 - 1985Stakis Coylumbridge,Aviemore (Hotel)Hotel room attendant

1985 - 1995Stakis Coylumbridge,Aviemore (Timesharelodges)Assistanthousekeeper, head housekeeper

1995 - 2001MacdonaldLochanhully WoodlandClub, Aviemore Head housekeeper,lodge manager,assistant resortmanager

2001 – 2003Muckrach LodgeHotel, Dulnain Bridge near Grantown on Spey

2003Macdonald NewDrumossie Hotel,InvernessFood and beveragemanager

2003 - 2006Aviemore HighlandResort, AviemoreAssistant restaurantmanager (Aspect),bars manager,assistant headhousekeeper

2006 - PRESENTMacdonaldLochanhully WoodlandClub, AviemoreGeneral manager

2009 - PRESENTMacdonald DalfaberGolf & Country Club,AviemoreGeneral managerVisit www.rciventures.com to find out more

about Johann’s life in the timeshare industry.

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JOHN BECKLEY of Sorted Sites explains how harnessingthe power of the internet has boosted marketing wins atPearly Grey Ocean Club in Tenerife.


IF YOU’RE in charge ofrunning or marketing atimeshare resort, you’reprobably aware of theenormous potential thatsocial media has to get yourmessage out to a vast onlineaudience and build a strongonline community aroundyour business.

Chances are that youhave already tried bloggingor using social networkssuch as Facebook, so nowit’s time to think about themost important questionfacing marketers the worldover: “How do I leveragethe power of social mediato the max?”

The answer, in anutshell, is to interactregularly via as many of theavailable social networkingsites as possible, and to useeach one to promote theothers and ultimately yourresort itself. A social mediacampaign is an ongoingeffort, and you may need todevelop an effective strategythat you can easilyimplement with yourexisting staff and resources.

Sorted Sites has workedwith Pearly Grey OceanClub in Tenerife to build ahighly effective onlinemarketing campaign. Nowthat it is up and running,

the resort’s staff managemost of it themselves as partof their daily duties, at noextra cost to the company.

THE WEB WORLD OF PEARLY GREYPearly Grey was quick to takeadvantage of social media foronline promotion, albeitfrom a fairly humblebeginning.

Dennis Markham, the ITmanager who also leads theresort’s social media team,explained: “We began withour blog, back whenFacebook and the like werestill in their infancy. The blogmade it easy for us to publisharticles and update pageswithout the need to knowany html. It was our first steptowards keeping our guestsand wider audience betterinformed about what’s

happening atPearly Grey.”

Since thenthe resort hascome a longway and is nowactive on avariety of social

networks. Having a strongonline presence allows it toconnect with a vast audiencein a variety of ways, bringingwith it the benefit ofimproving Pearly Grey’s

ranking on Google and othersearch engines.

The Pearly Grey Facebookpage has more than 700 fans,enabling the resort to interactdirectly with its contacts andtheir friends. Pearly Greypromotes its blog posts,photos and videos onFacebook, using this media toinform people of events at theresort in a fun way. Owners,guests and fans of Pearly Greycan comment on anythingthat is posted, and also use theFacebook page to get to knowother like-minded peoplewho share an interest inTenerife and the resort.

The Twitter feed is used for

brief one-line updates, and to promote and link tointeresting posts on the PearlyGrey blog, Facebook, YouTubeand other social networks.Although not so many ofPearly Grey’s target audienceare active on Twitter, it is anexcellent way for the resort tokeep in touch with otherbusinesses in Tenerife, as wellas bloggers, travel writers,trade organisations and RCI.

Pearly Grey’s Flickrphotostream is an onlinephoto album designed toappeal to the resort’s guests, aswell as other visitors toTenerife and the island’sresident ex-pat population.

QUOTE: WHEN USING SOCIAL NETWORKS, IT’S VERYIMPORTANT TO POST A VARIETY OF RELEVANT CONTENT THATIS OF INTEREST TO YOUR AUDIENCE. JOHN BECKLEY

CASE STUDY

DennisMarkham

MAKING SOCIAL MEDIAWORK FOR YOU

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When using social networks,it’s very important to post avariety of relevant content thatis of interest to your audience,and not only about yourcompany. With this in mind,Pearly Grey posts photos of itsactivities and staff, as well asothers taken at events aroundthe island – from golftournaments to villagefestivals. Many of these photosare also posted to the PearlyGrey blog and uploaded toFacebook.

AN ONLINE SHOWCASEPearly Grey also has a YouTubechannel that showcases theresort. As part of theAmbassador Plus referralsprogramme, guests talk abouttheir experiences in candidvideo interviews that arehosted on YouTube. The videosare also promoted via the blogand shared on the Facebookpage, so that they reach aswide an audience as possible.

As part of his daily routine,

Dennis answerscomments on Facebookand Twitter and is in charge ofuploading photos and videosto Flickr and YouTuberespectively. He says: “Jimmy,our compere, provides mewith a regular piece aboutwhat entertainment ishappening and has his ownsection in our blog. Gemma,our head receptionist, doublesas our roving reporter and alsowrites a ‘gossip’ section tokeep guests and ownersinformed of what the PearlyGrey staff are up to while awayfrom work. These articles areparticularly popular becausemany of the owners feel likewe are their extended familyand want to keep in touchwith the staff that they havecome to know over the years.”

All Pearly Grey’s socialnetworks are linked from theirmain homepage and also fromtheir Google Profile(www.google.com/profiles/pearlygrey). The latter is a

handy point of reference foranyone who is interested inPearly Grey and also makes iteasy to promote the resort’sentire social media campaignwith a single link.

The social media effort ispaying off, and it’s not justabout the extra exposure itself.One of Pearly Grey’s mostsuccessful marketing efforts isits referral programme, andsocial media plays a vital rolein this. Whenever an owner orguest refers a friend, thatperson can instantly connectwith Pearly Grey and its staffin a variety of ways online,and this works well inconverting that referral.

“New guests who arrive atour resort feel like they

already know our staff andfacilities,” says Dennis. “Thishelps them feel at home rightaway and make the most oftheir stay with us, so they willbe even more likely to becomerepeat visitors. Besides, thesocial networks also make iteasy for people to share theirexperience with their friends,indirectly promoting PearlyGrey.

“We’re constantly lookingfor new ways of getting themost out of our social mediacampaign as we continue todiscover more excitingopportunities to reach out topeople online.”

■ For more information visitwww.sortedsites.info

Pearly Grey Ocean Club uses avariety of online media and socialnetworks including Facebook andflickr to communicate with as widean audience as possible.Right: John Beckley, director ofSorted Sites.

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Selling your resort is much more than just telling people how good it is –they’ve got to see and get a feel for what you are offering and video is themost engaging of media, explains PATRICK LOVELL, vice president ofbusiness development for US-based production company Lenzworks.


WE SAY a picture is worth a thousand words butvideo sells, and it’s true. No other device engages

people’s emotions as completely as high-quality HD video. Shared ownership is all about the emotional sell – it’s a

lifestyle product that has to appeal to people’s wants anddesires. Couple that with video and it creates an emotionalbond for a location in a way that photos simply can’t.

We all like to show our friends and family where we’regoing on holiday or something we’re considering purchasing,and people who buy resort property at a certain price pointwill hook up laptops to their flatscreen televisions to showvideos to their friends.

The fact is people watch video adverts 160 per cent longerthan adverts without video, and 12 per cent actually purchasesomething after viewing video advertising.

Lenzworks was formed 10 years ago by Dan Debenham(also known as Dan, The RCI Guy on RCI TV) and TomZdunich, both former network TV executives. In fact everyonewho works at Lenzworks has a network TV pedigree.

We have since developed RCI TV and created all the videoson there as well as videos for Shell Vacations, all the PalaceResorts, Sol Meliá and many others, together with manydestination-focused travel videos.

Time has moved on but the game hasn’t changedtremendously. In the ’70s, ’80s and ’90s it was about tellingstories that engaged the viewer. We’re still doing that, but nowits stories about resorts and destinations.

PUTTING YOUR PRODUCT IN THE PICTURE

Everyone’s going online but there’s an incredible qualitygap between professional and home-produced videos.Everyone expects the same level of quality but network TVproduction is extremely expensive.

At Lenzworks we use the same equipment as network TVbut can do so at a competitive price due to the skill of ourstaff and structure of our productions. We’d never go to aresort without a production plan, and during pre-productionwe find out what’s special about the property, then write ascript and once approved by the resort, our crew – a directorof photography, producer and grip – will visit the resort for 48 hours to film.

Our productions include a three- to five-minute customproperty presentation, which is co-owned by the resort so it’stheirs to do with as they please. They can use it on theirwebsite, in presentations, on social media platforms, asmember testimonials and high-quality stills for resort websites or brochures, and as email blasts – a one-minute musicvideo that can be sent to clients with a call to action.

We bring all the pieces of the puzzle together to produce astrong package which is designed to appeal to a buyer’semotions. Video is the future and we’re on the cusp of it.

QUOTE: EVERYONE’S GOING ONLINE BUT THERE’S ANINCREDIBLE QUALITY GAP BETWEEN PROFESSIONALAND HOME-PRODUCED VIDEOS. PATRICK LOVELL

FINAL CALL

‘‘

■ For more information contact Patrick Lovell on tel: +1 801 261 1001,email: [email protected] or visit www.lenzworks.com ’’

Visit www.rciventures.com for facts and statistics on the use ofonline video and how travellers use the internet.

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Dramatically expand your reach and effectively lower your marketing costs.

RCI ® TV is revolutionizing vacation planning with breathtaking high-definition video of your resort.

An innovative marketing opportunity that increases utilization and expands your reach to our

millions of RCI.com visitors every month. Let RCI TV transport potential timeshare buyers into your

world today.

To inquire about how you can take advantage of RCI TV, please contact Amanda White by phone at +44 (0) 1536 314651

or by email at [email protected].

Visit www.RCI.com

RCI Ventures - October 2010 issue

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