october 2008

Chris Evans: "Being madeto feel special and uniquereally motivates the affluentcustomer" PAGE 31

Russell Waters: "It's on everyone'smind to help save the planet and themore we can do through business,the better" PAGE 35

James Eveling: "Past studiesindicate that shared-ownershipmodels have benefited fromeconomic downturns" PAGE 34

Enterprising ideas for the vacation industry October 2008

STRATEGIES THAT UNLOCK THE DOORTO TIMESHARE AND FRACTIONAL SALES

workV-CovOct3 xp6-JP:Layout 1 8/9/08 16:54 Page 3

4 MARKET OUTLOOK:A news and views round-up from Europe and the Middle East

11 MARKET REPORT – HOT BUSINESS IN COLD CLIMES:Russia is emerging as a strong source market for Europeandevelopers

16 COVER STORY – THE RIGHT SELL:A look at the philosophies and strategies that drive timeshareand fractional sales success

22 ISLAND LION:Cypriot-based timeshare operator Kouroushi Lion Resorts setsits sights on expansion

26 MAKING A SPLASH:A closer look at how IFA Hotels & Resorts operates its widerange of leisure real estate products

31 LIFESTYLE FOCUS:How marketing materials can make the right impact on potentialbuyers of high-end properties

34 FRACTIONALS FROM A LEGAL PERSPECTIVE:A legal practitioner shares his experience of the burgeoning European fractional market

35 FOR THE GREATER AND GREENER GOOD:Eco-friendly initiatives are good for business as well as the planet

38 ONLINE ADVERTISING - MAXIMISING RETURNS:SHANE QUIGLEY, director of Epiphany Solutions, demystifiessearch engine optimisation

RCI Ventures, October 2008 | 3

CONTENTS EDITORIAL

VENTURES is published by Group RCI, Kettering Parkway, Kettering, Northants, NN15 6EY, UnitedKingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: [email protected]: Helen Foster. DESIGN: Richard Blaney. PRODUCTION CO-ORDINATOR: Claire Williams.ADVERTISING SALES: Media Line Ltd. Tel: +44 (0)870 250 8701. Repro: JP Repro. PRINTING: CKNPrint Ltd. Images for Cover story, Market report and Green issues from Getty. Original articlesand contributions may be reproduced or transmitted only with written permission from thepublisher. No responsibility is accepted by RCI Europe for any losses or other consequencesresulting from advertisements or other material appearing in this publication. RCI Europereserves the right to accept or refuse advertisements at its discretion without assigning anyreason for doing so. © RCI Europe 2008.

Many of you will, like the Group RCI team,be preparing to head off to Madrid for thisyear’s OTE Business Forum. Although Iattended the ARDA convention earlier thisyear, the OTE Forum will be my firstmajor European industry event and I’mlooking forward to an in-depthpresentation of the achievements of the

industry in our region over the past year, as well as exploring thechallenges facing – and opportunities for – its future developmentand growth.

Everyone across the industry is feeling the credit squeeze but,as has been proven before during difficult times, ours is a diverseand resilient industry. It’s important at this time that we don’t losefocus on identifying the ways we can work together to build astronger future for everyone who contributes to the shared-vacation ownership industry.

We at Group RCI have listened to our members and they’retelling us they want greater choice of destinations and flexibility ofproduct from their timeshares. On page 8 of this issue you will seeour response has been to invest significantly in strengthening ouralready successful business development team, which is on amission to ensure our established and valued affiliates are welllooked after while new associates are brought on board to expandthe geography of Group RCI’s exchange network.

The choice and scale of our exchange portfolio is definitely seenas a plus by our members and already this year we have affiliated10 new resorts, many in exciting new and emerging holidaydestinations such as Turkey and Cyprus. You can see the full detailson page 9.

Russia is now high on the radar of the international businesscommunity as an emerging market and it’s on ours as well. TheRussian market report on page 11 looks at the strength of thecountry as a source market for European sales operations. Lookingahead, it also investigates the developer investment opportunitiesin Russia which will unfold as a legislative framework isestablished there to support our business.

With the emergence of new markets, it’s more important thanever that proper consideration is given to sales and marketingtechniques if consumers in these markets are to be able to trustthe product from the outset.

The cover feature, to be found on page 16, looks at the salesoperations of a fractional and a timeshare developer whoseapproaches will serve, not only to grow their own business, but alsoto enhance consumer confidence across the board for the benefit ofthe industry as a whole.

As ever, we hope your RCI Ventures provides you with greatideas and inspiration for your operation, as well as a sense ofGroup RCI’s commitment to supporting its affiliates – every step ofthe way.

SincerelyJonathan Back

Managing director, Group RCI EMEAI

VENTURES MAGAZINE SERVING RCI’S MARKETS IN OCTOBER 2008 EUROPE AND THE MIDDLE EAST

Cover story: Highlightsof sales success in thefractional andtimeshare marketsfeatures on page 16.

workV-ContsOct08-hf-rb-JP:Layout 1 4/9/08 11:40 Page 3

4 | RCI Ventures, October 2008

NEW MANAGEMENT FORANFI IN GRAN CANARIA

The RegistryCollection continues togrow in popularity, withlatest statistics revealing amembership of almost

30,000 just two years after its European launch.The luxury leisure accommodation exchange

platform is also attracting the attention offractional developers across Europe. TheRegistry Collection was represented at theFractional Life Summit in July by Brett Archibald,senior vice president business development, andNick Turner, vice president, who both presentedto delegates.

Archibald told Summit delegates theEuropean market was starting to embracefractionals as a business model which wasproving to be resilient in the current difficulteconomic climate. He said: “We’re seeing anincreasing number of major brand name playersentering the market.

“The global fractional market has grown by 50per cent from 2006 to 2007 and The RegistryCollection has a 40 per cent share of that market.We certainly had a lot of interest in theprogramme from developers visiting our stand atthe Fractional Life Summit and we’re pleased tosay the event generated a number of significantleads for us.”

For more information contact: Europe: NickTurner on +44 (0)7960 034 933 or Paul MacSherry on +44 (0)7710 372 994. South Africa: +2711 258 0195. The Middle East: +971 4 390 1660.Or visit: www.theregistrycollection.com

THE REGISTRYCOLLECTIONATTRACTSMOREMEMBERS

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

The AnfiGroup in Gran Canariahas appointed JohnMacDonald as its salesand marketing director.

Joining his teamwill be Christian Kuthin the role of salesdirector and CéliaFonseca as marketingdirector. Theseappointments see thecareers of MacDonaldand Kuth coming fullcircle, as they were keyplayers during thecompany’s foundationin 1992.

MacDonald bringswith him 20 years’experience in theindustry. His careerbegan at the MirafloresResort in the Costa delSol, from where hemoved to WimpyLeisure beforeundertaking thechallenging position atthe then fledglingcompany, Anfi del Mar.He went on to front

many vacationmembership resortsworldwide, includingHilton’s in Portugal andSunterra’s in theCaribbean and Florida,before returning to theAnfi Group.

MacDonald said:“Anfi is a magnificentresort, and to returnafter 11 years is afantastic opportunity.I’m looking forward toimplementing newtechniques andprogrammes alongsidethe already successfulmarketing strategies.”

On becoming salesdirector, Kuth returnedto his career roots, ashe was responsible forheading the salesdivision at Anfi del Marbetween 1992 and1997. He has sinceworked at AirtoursBeach Club in GranCanaria and Sunterrain the Caribbean beforereturning to Gran

Canaria as owner ofClub Vista Puerto – aboutique resort locatedin the south of theisland.

In his new role Kuthwill be responsible forlaunching the AnfiTauro entrance product.He said: “From mid-July I’ll be recruiting upto 100 new sales staffto work at Anfi Tauro,where we’ll be selling a unique product ofexceptional quality.”

Fonseca, newlyappointed marketingdirector, began hercareer in her nativePortugal, entering theluxury resort industryat Pine Cliffs/SheratonAlgarve Resort. In 2006she worked alongsideMacDonald at theHilton Vilamoura asmarketing manager.She has almost adecade of experience inbranded mixed-use five-star resorts.

The new Anfi team, from left, Christian Kuth, Célia Fonseca and John MacDonald.

Brett Archibald

PEOPLE:

Check out the new and improved

rciaffiliates.com where you will find a

breaking news page dedicated to bringing you

the news, as it happens, between your printed

editions of Ventures.

VENTURES NEWS ONLINE

PRODUCT:

workV-MktO'Look2-hf-rb-JP:Layout 1 8/9/08 16:53 Page 2

According to the Turkish Culture and Tourism Office (TCTO),Turkey has overtaken Spain as the most popular tourist destination forUK travellers.

The latest TCTO visitor figures for January to July 2008 show a17.03 per cent increase in visitors arriving in Turkey from the UK. Atotal of 765,506 UK tourists visited the country in the first half of thisyear, compared with 654,084 for the same period in 2007 – figureswhich secure Turkey’s place as the most popular holiday destinationfor the British this summer.

This shift in British holidaying trends is said to be largelyattributable to the poor exchange rate of the Pound against the Euro.Thousands of holidaymakers are heading to Turkey as a sunny andvalue for money destination which has not yet adopted the Euro and isbenefiting from a favourable exchange rate.

Irfan Onal, director for the Turkish Culture and Tourism Office inthe UK, commented: “In line with our objectives of increasing theunderstanding among both consumers and the trade of what Turkeyhas to offer, we have been working hard to develop Turkey’s visibility inthe UK and grow the country’s profile even further by developingawareness of the cultural side of Turkey. This is a particularly excitingtime for Turkey as Istanbul was recently awarded the European Capitalof Culture 2010, strengthening our presence among the top Europeandestinations for British travellers.”


TRENDS:

TURKEY TAKES SPAIN’SUK TOURISM CROWN

Group RCI has affiliated four new Turkish resorts to itsexchange holiday portfolio so far this year.

The company’s exciting new affiliations in Turkey offer a variety ofholiday experiences to its members. They comprise two spa resorts, aproperty situated close to several beaches and one of the country’smost ancient cities, and a water-borne holiday experience in the formof the Tatil Borasi Yacht Club which offers all-inclusive holidays onfully-crewed catamarans, pictured, sailing along Turkey’s east coast.See page 9 for more details.

INDUSTRY:

NEW AFFILIATES FORGROUP RCI IN TURKEY

Fabrizio Harper, pictured, joins Fractional Life,providers of a web-based fractional lifestyle portal, ashead of sales.

Company founder, Piers Brown, said: “Fabrizio comesto us with a diverse and highly relevant background.Having worked for a fractional carclub and been a property salesnegotiator in London he has a goodunderstanding of fractionals.”

Commenting on his new role,Harper said: “Working within theMayfair property market in Londonrecently, I’d noticed a downturn inthe whole-ownership property sectorand a growth in destination clubs, PRC and fractionalproperty ownership which made me feel now is the right time to join the Fractional Life team.”

PEOPLE:

SALES HEAD FORFRACTIONAL LIFE

Nostos Select has appointed Kevin Baker,pictured, as its new sales director.

Baker’s career in the industry spans 16 years andtakes in many high profile roles, including with Sunterra,Club La Costa (CLC) and NorthCourse Leisure RealEstate Solutions. Following four years as area sales andmarketing director for Royal Resorts in Bali, Baker leftthat company in 2005 to set up his own timeshare venturewhich closed following the Balibombings. Most recently he has beenworking with CLC as project directorat Trenython Manor in Cornwall inthe UK, before taking up his new rolewith Greece-based Nostos Select.

He said: “After speaking withdeveloper, Antonis Sougioultzoglou, Iwas excited by the plans for growth ofthe company’s timeshare, fractional and whole-ownership business streams. My priorities will be todevelop sales and marketing operations in Skiathos andCrete, and winter programmes in Athens and in the skiresort of Peilion. This company aims to be one of thebiggest shared-vacation ownership companies in theregion and I’m looking forward to helping make thathappen.”

PEOPLE:

NOSTOS APPOINTSALES DIRECTOR



A host of celebrities were spottedat Club La Costa Resorts & Hotels in southernSpain as it hosted two major charity events.

A fun run, the ‘Smile Mile’ - with 400participants and over 1,000 spectators, was ahighlight event raising money for the Cruz DiasHospital/Adimi Centre for children withdisabilities. UK snooker legend Willie Thornepresented the trophies.

UK-based TV and media celebrities,pictured from left, Chris Tarrant, Max Cliffordand soul singer, Omar Simon, who performedat the party, were among guests at a Club LaCosta cocktail party held during a charity golfweekend which raised approximately €125,000for the Rhys Daniels Trust. The Trust was setup by Rhys’ parents who lost two of theirchildren to a devastating neurological disorder.

Roy Peires, chairman of Club La Costa, said: “Charity is very important to us and wewere very privileged and proud to help.”

INDUSTRY:

Club La Costa Yacht Club willbe based in the Red Sea this winter as itenters its second sailing season.

The club’s sailing holidays will take inthree countries – Israel, Egypt andJordan. For the first time, CLC is givingits Diamond and Platinum Vacation ClubPoints members access to its yacht club.

Lucien Le Moing, Club La CostaResorts & Hotels’ new business andproduct development director, said themove made higher-level pointsmembership “even more aspirational”and was in line with the company’smission “to exceed customers’expectations”.

Pictured right: One of the vessels in theClub La Costa Yacht Club fleet.

INDUSTRY:

CLC YACHT CLUBTO SAIL THE RED

Pictured above: Club Puerto Anfi is one of the properties withinthe group’s award-winning Anfi del Mar development.

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

Marketoutlook

CELEBS BACK CLCCHARITY EVENTS

The 2008 European Property Awards, in associationwith CNBC Television and the SIMA Corporation, investors in realestate, were recently announced and the Anfi Group won anaward in the category for European and African Property Awards.

The group’s Anfi del Mar development in Gran Canariascooped the award, being judged, along with other entrants, by apanel of leading European property professionals from a range ofreal estate associations and governing bodies, as well as from thetrade and consumer press. As award winner, the company is nowpermitted to display the Property Awards logo at its propertiesand in its marketing collateral.

John MacDonald, sales and marketing director for the AnfiGroup, said: “To receive the award for the best development is afantastic achievement and, we hope, well deserved. Anfi’s goalhas always been to provide a five-star resort with a service tomatch, and to receive recognition of our achievements from sucha prestigious body of judges is an accomplishment of whicheveryone at Anfi is very proud.”

INDUSTRY:

ANFI SCOOPS PROPERTY AWARD



OTEnews

Despite being keptbusy by Brussels this

year, OTE has developed aseries of initiatives, thepositive impact of whichshould be felt as we go into2009.

Crucially, the ongoingissue of a name change forOTE should have beenresolved by the time thisarticle appears. A newname for OTE should havebeen voted on by themembership, approved bythe Board and announcedat OTE11.

The name change isnecessary if we are torepresent what is a rapidlyevolving industry with newproducts coming onto themarket. Products such asfractionals and PrivateResidence Clubs fall withinthe timeshare definitionsset out in the new EUTimeshare Directive andmerit inclusion in theorganisation’s lobbying,monitoring and analysiswork. Though distinct fromstandard timeshareproducts, they still need tobe represented by a tradebody.

A new FractionalCommittee will be set up torepresent this sector of theindustry and the LegislativeCouncil will establish aworking group to look at thelegal structures specific tothese products. We wouldhope to include input fromour US colleagues who havemuch practical experienceto call upon.

The Resale WorkingGroup is due to report to the Board with itsrecommendations forimproving the efficientoperation of resales. It isanticipated that OTEmembership for resalecompanies will give buyersand sellers greaterconfidence in the serviceoffered and an assurancethey will be transacting atreasonable prices.

We have set up theTimeshare PartnershipTrust (TPT) to fund projectsthat benefit the industry ingeneral and timeshareowners in particular. Itsfirst grant of funds has beenmade to TATOC to supportits Consumer ServicesProgramme. The Trust,chaired by Frank Chapman,will be advertised within theindustry.

The initial results of theEU Economic Impact Studyshould be available atOTE11, followed by thepublication of the full reportin 2009. The study wasprepared by NottinghamUniversity’s ChristelDeHaan Institute for Traveland Tourism to assess theindustry’s scale and itseconomic contribution to EUbalance sheets. This will bean indispensable tool indiscussions with opinionformers throughout Europe.

A review of the OTE Codeof Ethics is underway and areport is expected by theyear end. Members need tobe aware that in consumer

disputes brought before thecourts, judges will look tothe Code to assess what is‘reasonable behaviour’ andthat standard may beapplied to non-OTEmembers as to members.

A recommendation wasmade at OTE10 last yearthat OTE should develop aweb-based reputationmanagement capabilitydesigned to place timesharein a positive light and tocounter much of thenegative content currentlyon the internet. OTE’s MediaWorking Group has taken up this challenge, despitefunding issues, and the website should be up andrunning at OTE11.

OTE’s EnforcementProject will be boosted in2008 by the addition ofanother staff member toassist Alberto Garcia. Theteam has been successfulthis year in tackling bogusresale companies andholiday clubs, as well asenrolling the support oftourism associations in theCanary Islands.

Many of the initiativesmentioned here will be on-going. OTE’s key objective,however, will be tounderscore the fact thatconsumers and othersshould only do businesswith OTE members and topromote OTE membership,not only as a sign of qualityand confidence in theindustry, but as aprerequisite to doingbusiness in Europe.

THE YEAR IN BRIEF

PAUL GARDNERBOUGAARD, OTEchief executive, looksback over what hasbeen an eventful yearfor the organisationand forward to its2009 agenda.

‘‘

’’


products into the market. Theywill be dealing with upscaletourism oriented real estate(TORE) projects and the high-end borrowing environmentsuch as property trust funds.”

Both Turner and Mac Sherry have experience of building new markets.Turner was responsible forthe start up of thevacation rentalbusiness, ArabianBreaks, in the MiddleEast when he joinedGroup RCI in 2006before assumingresponsibility for itsexchange networkbusiness in the region.Among Turner’saccomplishments inprevious leadershiproles with the De VereGroup, Forte Ltd andArcadian Internationalare creating new products and developing hoteldistribution channels to 60 countries.

Mac Sherry is a sales and marketing professionalwith more than 19 years’ experience in businessdevelopment which he will draw on to maximiseopportunities in expanding Group RCI’s Europeanmarkets. At Premier Resorts he led a team representingclients across eight countries operating in thefractional, condo-hotels and buy-to-let markets.

Prior to that he worked for Marriott Vacation ClubInternational creating a strategic marketing partnership platform and in other roles he has dealt with many blue chip companies including British Airways, HSBC, Nokia Global and Virgin Atlantic.

Archibald explained that the work of the business development teamwill be backed by a more aggressive PR strategy which will see a Group RCI presence at major real estate and hospitality industry events.He said: “This PR initiative is aimed at raising the profiles of the industryas a whole, and of our affiliated developers, as much as Group RCI’s.”

THE OPTIMISATION and expansion of Group RCI’sexchange business is a constant priority.

At the heart of the process of improving memberexperience and, therefore, the value of affiliation with Group RCI is the acquisition of fresh inventory, both inestablished popular locations and in new destination markets.

To help achieve this year’s new affiliation targets, two newvice presidents have joined the ranks of the businessdevelopment team. Nick Turner returns from Group RCI’sDubai office where he was managing director of Group RCI inthe Middle East, and Paul Mac Sherry joins the company fromPremier Resorts, where he held the post of account director.

They join Dimitris Manikis, who has been with Group RCIfor 17 years, heading up its Greek operation before becomingvice president, business development. They will report to Brett Archibald, senior vice president, business development.

Commenting on the expansion of Group RCI’s businessdevelopment team, Jonathan Back, managing director, Group RCI EMEAI, said: “The future of this industry is in thehands of the business development teams. The lifeblood ofthis industry is the whole range and variety of exciting newdestinations and resorts we are able to offer our owners andmembers.

“Our goal is to build on our already unrivalled portfolio ofquality leisure accommodation and, crucially, create newmarkets and new hybrid products. We view innovation and theintroduction of increasing product flexibility as key in helpingour affiliates and industry partners to get the best return ontheir investment.

“To this end, our priority continues to be a focus on ourCustomer – both B2B and B2C – and we put them at thecentre of everything we do. This is combined with a focus onthe people within our company and the creation of a values-centric organisation delivering the highest possible servicelevels to members and affiliates. We never forget that we areonly as successful as our affiliates.”

Archibald said of his new team: “Dimitris Manikis and theaffiliate services team have built a robust, tried and testedexchange network. They’re doing a great job helping to buildbusiness at local levels and will continue in that role, as wellas making sure our existing affiliated developers are welllooked after.

“Nick Turner and Paul Mac Sherry will be driving deliveryof The Registry Collection and our Rental & Exchange (R&E)


Sharing the confidence ofmany industry experts who believe timeshare and other shared-vacation products to be resilient to the current creditcrunch, Group RCI is investing in its business development team.

BUSINESS BUILDERS

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 G R O U P R C I A F F I L I A T E S

GroupRCInside

JONATHAN BACK

BRETT ARCHIBALD

PAUL MAC SHERRY

DIMITRIS MANIKIS

NICK TURNER

workV-RCInside2 xp6-hf-rb-JP:Layout 1 4/9/08 13:37 Page 2

near Turkey’s Aegeancoast. The resortdevelopers are Ankara-based Hattusah.

GARDEN ROUTECHALETS-ISLAND,SOUTH AFRICAManaged by GardenRoute Chalets, this resortin the picturesque villageof Sedgefield offers a variety of watersports courtesy of its closeproximity to Swartvlei Lake and Gerrike's Point.

HOLIDAY & LEISURE CLUB, KUSADASI, TURKEYWith access to a range of beaches in a region renowned for its art,culture and history, this resort offers something for all types ofholidaymaker. The developer is Orhan Karaderili of CagatayAlacam, based in Istanbul.

GROUP RCI is delighted to welcome 10 newresorts that have been added to its portfolioin the year to date.

The new affiliations reflect thecompany’s ongoing commitment to provideits members with the best quality resorts ina variety of locations. Group RCI has beenlistening to its members and has targetedcountries where they say they want toholiday, and has introduced resorts in newand emerging destinations, as well as intraditional timeshare hotspots.

The company has added aresort in the emergingdestination of Hungary, as wellas three new properties and ayacht club in Turkey. Inaddition, there are two newresorts on the island of Cyprus,two in the increasingly populardestination of South Africa, andone in the world’s fastest-growing tourist area, Dubai.The new resorts are:

CAPITAL COAST RESORT &SPA, CYPRUSThis contemporary seafrontresort between Coral Bay andthe Tomb of the Kings inPaphos, is the latest propertyto be developed by Kouroushi Lion Resorts (KLR). Amenitiesinclude health club, indoor and outdoor pools, conferencefacilities and more.

CLUB ADELPHI AT AMPHORA RESORT, CYPRUSKLR’s second new property in Cyprus is a mixed-use five-starresort with a beachfront location in Kato Paphos. Facilitiesinclude wellness centre and spa, three swimming pools and aboutique retail village.

PARK INN HOTEL SÁRVÁR, HUNGARYLocated in Hungary’s popular spa region of West Pannon andadjacent to the Sárvár Wellness Centre, this resort offersmassages, beauty treatment and fitness facilities. The developer isAttila Olasz of PS Hotel Ingatlanhasznosító.

ASTYRA SPA & THERMAL RESORT, TURKEYFour indoor thermal pools, a heated seawater pool and Turkishbaths are part of the appeal at this mixed-use resort at Edremit


TEN NEW PLACES

CAPITAL COAST RESORT & SPA, CYPRUS

ASTYRA SPA & THERMAL RESORT, TURKEY

HOLIDAY & LEISURE CLUB, KUSADASI, TURKEY


NKAMBENI TENTEDCAMP, SOUTH AFRICAThis RCI Frontier Propertyis idyllically located next toKruger National Park, andcomprises luxurious woodand canvas tents with avariety of facilities. Activityoptions include safaris,bush walks, river rafting,quad bike tours and hot-air ballooning.

TEOSPA HOTEL & SUITES, TURKEYThe ancient cities of Teos, Ephesus and Bergamo are all easily accessiblefrom this new spa resort, which overlooks the Aegean marina of Sigacik andwas developed by Israel-based Joseph Kyriati.

TATIL BORASI YACHT CLUB, TURKEYFormer salesman Ugar Ozdel’s first venture as a developer features all-inclusive holidays aboard fully-crewed yachts. The boats are based in Fethiyeand sail the Aegean, calling at popular resorts along Turkey’s east coast.

IVORY GRAND HOTEL APARTMENTS, DUBAIDeveloped by Humaid Al Suwaidi Real Estate LLC, this mixed-use resort islocated close to renowned retail and leisure centre, the Mall of the Emirates.Facilities include a temperature-controlled pool, gym, whirlpools, steamrooms and massage spa.


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 G R O U P R C I A F F I L I A T E S

GroupRCInside

TATIL BORASI YACHT CLUB, TURKEY

IVORY GRAND HOTEL APARTMENTS, DUBAI

TEOSPA HOTEL & SUITES, TURKEY



Russia is opening its doors to foreign investment and its people are increasinglylooking to travel overseas for new holiday experiences. KATHERINE STEINER-DICKS, a financial and investment journalist, explores the potential of this richcountry, both as a developer opportunity and source market.

QUOTE: THESE EASTERN EUROPEAN SOURCE MARKETS, SUCHAS RUSSIA, ARE WHERE WE’LL FIND THE FUTURE GENERATIONOF TIMESHARE OWNERS. JAVIER MINGUELLA

MARKET REPORT

RUSSIAN cities are going through a construction boom with Moscow being named the hottest property marketfor 2008 in an Emerging Trends survey compiled by the Urban Land Institute and PricewaterhouseCoopers.

The majority of the 500 real estate developers and institutional investors surveyed believed the onceperceived risks of corruption, burdensome bureaucracy and restrictions on foreign direct investment in doingbusiness in Russia were history and no longer kept investors away. It was found that the profits, starting to beenjoyed by institutional investors, were encouraging others to set aside any inhibitions they may have hadabout doing business in the country. B

HOT BUSINESS INCOLD CLIMES

workV-Russia-MktRep-jp-6rb-JP:Layout 1 8/9/08 16:50 Page 3

Russia’s oil revenues have created a growing middle class and theworld’s largest population of billionaires, second to the US. A strongeconomy and profits have sent out a positive message to the foreigninvestor.

As of 2007, real GDP increased by the highest percentage sincethe fall of the Soviet Union at 8.1 per cent. Meanwhile, the rubleremains stable, inflation has been moderate and foreign portfolioinvestment surged last year by a factor of 2.5, a figure none of theworld’s 15 leading economies can compete with, according torecent reports by Dr Vladimir Kvint, president of the InternationalAcademy of Emerging Markets. He puts a figure of $100 billion onoverseas investment in Russia over the last 12 months – an all timerecord for any emerging market country.

WHERE IS THE SMART MONEY GOING?Property and resort developers should note the fact that, accordingto Jones Lang La Salle, foreign direct investment in the Russian realestate sector has increased almost 50-fold over the last six years toapproximately $6.5 billion in 2007.

But for those developers not already in the market, it’s worthknowing that Moscow and St Petersburg are thought to be nearingthe peak of their boom, according to property investment websiteProperty Secrets.

However, there’s certainly potential for new growth in theunderdeveloped areas of the Millionniki – the name for 11 Russiancities, excluding Moscow and St Petersburg, each with a populationexceeding one million. These cities are attracting a growing numberof international real estate players, especially commercial propertyinvestors attracted by the availability of building plots and weakcompetition. These cities include Samara, Rostov-on-Don,Yekaterinburg, Novosibirsk and Chelyabinsk, all of which arebeginning to attract increasing levels of investment.

Other hot Millionniki cities are Kazan, Nizhniy Novgorod,Omsk, Ufa, Volgorog and Perm.

While the retail sector is the hottest segment of real estateinvestments, Property Secrets reports that the residential market inRussia is still a speculative market, driven by demand from thewealthier locals who are predominately cash-buyers. However, there


QUOTE: I BELIEVE THAT THE CURRENT LACK OF TIMESHARE REGULATIONIN RUSSIA HAS LED TO MANY RUSSIANS HAVING MORE CONFIDENCE ININVESTING IN THE FINNISH MODEL. HANNU MÄNTYHARJU

MARKET REPORT

workV-Russia-MktRep-jp-6rb-JP:Layout 1 8/9/08 16:48 Page 4


ARTEM KUKIN of Moscow-based law firm Yust isoptimistic about the prospectsfor Russia’s future hotel, resortand timeshare markets. RCIVentures asked him thequestions every developer andinvestor wants to ask.

RCI VENTURES (V): For adeveloper looking to invest in,and open, a resort in Russia, isit essential to partner with aRussian company?AK: No. There is norequirement to have a localpartner. However, specifictypes of activity, for exampleconstruction, are subject tolicensing in Russia.

V: Can the profits of a foreigninvestor developer betransferred from Russia to thedeveloper’s country ofresidence?AK: Yes. There are generallyno restrictions on repatriationof profits after all taxes anddues have been paid in Russia.

V: Are any governmentincentives available to foreigninvestors to encourage themto establish businesses there?AK: Foreign investments areseen as a priority by theRussian Government. Thereare many political andeconomic incentives toencourage foreign investment.

V: What about tax incentives?AK: This area needs to bechecked on a case by case basis.As a general idea, tax incentivescould be found in the ‘specialeconomic zones’ and in thetourist and recreational zoneswhich have already been formedin many regions of Russia.

V: Are there any issuessurrounding the purchase of aholiday exchange or timeshareproperty, as it probably won’t bea deeded purchase?AK: Indeed, the purchase of atimeshare would be consideredas purchase of a service ratherthan acquisition of property, andas such, not subject to statutoryregistration. However, theactivities of a timeshare serviceprovider would be subject toregulations on consumer rights,hotel and tourist activities.

V: Are there any issuessurrounding a Russian nationalbuying a timeshare in Europe?AK: No, there aren’t any issuesin such agreements.

V: The visa situation hasimproved greatly for Russianswanting to travel – but whichmain tourist destinations/countries do Russians still needa visa to visit?AK: Russian citizens still needvisas for most countries,including the EU and the US.

THE LEGAL PERSPECTIVE

FACTS & STATSTotal population: 143 millionMoscow 10 millionSt Petersburg 5 millionBelarus 9.5 millionUkraine 45 million

TOP EXCHANGE CHOICESGroup RCI’s Russian members’ top Weeks exchange choices in 2008 are:Long haul: Egypt, Florida, India and the Caribbean, Short haul: Tenerife, Spain’s Costa del Sol, Greece, Hungaryand Finland

CITY SPA RESORTHoliday Club Resorts’ St Petersburgdevelopment will be thecity’s first full-servicespa hotel.

The resort willinclude a 260 room hoteland 26 timeshareapartments.

has been a marked increase in the uptake of mortgages, but mainlyfrom the wealthier population as interest rates are currently runningat 11 to 12 per cent.

Property Secrets reports: “The common view is that Russia willdo far better than developed European countries and Asian propertyassets during the global economic slowdown for two main reasons.One – demand for quality properties remains strong due to lowsupply.Two – the macro-economic fundamentals are still in placeand sustainable enough to fuel domestic growth.”

OPPORTUNITIES FOR TIMESHARESo what does this mean to the timeshare market? Increasedconsumer spending power in other markets has brought increasesin house purchases. But it seems Russians prefer to buy theirproperty abroad.

In recent years, Russians have been buying up holiday propertiesin Turkey, Bulgaria and the Ukraine. Most middle class families can’tafford property in Moscow, probably one of the most expensivecities in which to own and rent property, so they’ve turned to

St Petersburg isRussia’s secondlargest property

market and isattracting a

growing numberof international

real estateinvestors.

TRAVEL TRENDSThe 10 most popular destinations for Russian leisure travellers in Q1/2008, in order of preference,were: China, Egypt, Finland, Thailand, Germany, UAE, Italy, Turkey, France and the Czech Republic.

*Source: Rosstat Service of State Statistics.

workV-Russia-MktRep-jp-6rb-JP 3/9/08 14:04 Page 5


buying holiday homes abroad.Timeshare and other shared-vacationownership models are particularly appealing to the money-savvyRussians and are proving symbiotic with the overseas buying trendamong them.

AFFINITY WITH THE FINNSThe Nordic region in particular has been a hot spot for Russiantimeshare buyers as Hannu Mäntyharju, deputy CEO of Finnish-based Holiday Club Resorts (HC Resorts), can testify. He said:“Russian nationals’ average ownership of timeshare weeks inFinland is more than the Finnish. On average Finns own 1.7 weeksas opposed to the three or more weeks owned by Russians.”

Russian nationals make up seven per cent of the group’s ownerbase and Russia is a source market HC Resorts believes it candevelop further, as Mäntyharju explained: “We’re building a newresort including spa hotel in Saimaa, at the heart of Finland’sbeautiful lakeland and only 220 kilometres from St Petersburg.Thisis being developed to specifically cater for Russians.”

Construction of the 200-room spa hotel (approximately250,000 sq m) will start in spring next year and an 18-hole golfcourse will be a feature. Importantly the site plans include more

than 300 timeshare apartments which is a measureof HC Resorts’ confidence in Russia as a strongsource market.

There will also be a residential component tothe site which comprises 200 properties to be sold aswholly-owned second homes which can be put intotimeshare.

HC Resorts was quick to realise the potential ofRussia’s major cities as up and coming holiday

destinations of the future and several years ago, when it was thenknown as Holiday Club Finland, the company began developingHoliday Club St Petersburg, the first full-service spa hotel with 260hotel rooms in the city of the same name. Set on the peaceful VasilIsland just a short distance, via bridge, from the centre of the city,the Group RCI-affiliated resort has 26 apartments which areallocated to timeshare.The first phase of the development openedearlier this year, and the completion and opening of all the resortfacilities is set for this Christmas.

Simon-Erik Ollus and Heli Simola, economists from the Bank ofFinland Institute for Economies in Transition (BOFIT), identified theaffinity of Finland and Russia, near neighbours and close tradingpartners, in their 2006 report, Russia in the Finnish Economy.Thereport states that Russia provides jobs for as many as 50,000 Finnsand that the country is one of the most important markets for

Finnish travel with an estimated 11,000 Finns being employed inservice exports and Russian tourism.

Not surprisingly, it is expected that there will be a significanttake up of the St Petersburg timeshares by Finns, as well as byRussian domestic purchasers.

Mäntyharju said: “I believe that the current lack of timeshareregulation in Russia has led to many Russians having moreconfidence in investing in the Finnish model.And when companiesdo as we do and offer Russian customers the same consumerprotection rights as EU customers, including a 14-day cooling-offperiod, it builds a trusting relationship and serves to strengthen thatbond with the customer and market.”

HOT SPOTS FOR RUSSIAN HOLIDAYSRussian consumers are looking beyond their border to the hotterclimes of Spain and Tenerife. Javier Minguella, resort manager of

Tenerife-based TropicalPark, says the EasternEuropean countries arethe source markets thatwill help build hisresort’s future growth.

Many timeshareoperations, like TropicalPark, a Group RCI-affiliated resort, are

already hiring Russian sales teams that work in local markets, as wellas onsite at their resorts. Minguella said: “If Spain wants to continuebeing one of Europe’s most lucrative tourist destinations, new visaand working agreements will have to be created so that interestedRussian tourists and workers can visit or work in our countrywithout any hurdles or hesitation.”

Minguella believes there is a need for more Russian workers, orat the least Russian-speaking personnel with knowledge of the hoteland resort industry, to work in Tenerife and Spain. “The future ofthe Spanish tourist industry depends on it,” he added. “TheseEastern European source markets, such as Russia, are where we’llfind the next generation of timeshare owners.”

Tropical Park is already equipped with Russiansatellite television channels, menus and bespoke partyand activities for its Russian guests.This is becomingthe norm across many spa and hotel resorts inEurope, which is comforting for the Russiancustomers who are, says Minguella, increasing theirownership of timeshare weeks year on year.

QUOTE: ONE OF THE BIGGEST BARRIERS TO ENTRY WHEN IT COMES TO MARKETING IN RUSSIA ANDTO RUSSIAN CLIENTS IS LANGUAGE. IT’S DIFFICULT MARKETING TO RUSSIANS IF YOU DON’T HAVELOCAL STAFF, WHICH IS WHY MANY HOTELS ARE NOW HIRING RUSSIAN STAFF. RIITTA APIOLA

MARKET REPORT

According to Knight Frank, global propertyexperts, the average price per square metre of anew apartment in Moscow as of late 2007 was$18,175, while the average price on thesecondary market was $19,091 per squaremetre. The highest level of supply wasapartments (primary market) priced between$1.5 and $2 million each, and units priced

between $3 and $3.5 million (secondary market).These are 2007 prices, and the Moscow

market has already experienced rises ofbetween 18 to 25 per cent this year, accordingto local estate agents. In general, new luxuryresidential properties are increasing in valuequicker than middle-class properties.

The rental rates are also high and rising.

HOW RENTALS AND REAL ESTATE MEASURES UP

HannuMäntyharju

Tropical Park

JavierMinguellaV

Map courtesyof Knight

Frank. Ratesshown are in

dollars andrepresentprice per

square metre.



RIITTA APIOLA,Group RCIregionaldirector, CentralEurope, sharesher views on

opportunities for shared-vacation ownership in theRussian market.

“For developers and propertyinvestors interested in buildingresort hotels in Russia, thepromising news is that it’scertainly becoming a moreopen market in terms ofoverseas investmentopportunities. The governmentand regulatory bodies have agood attitude towards foreigninvestors. Group RCI hasexperienced an increase ininterest from variousregulatory bodies in thecountry and is quicklyestablishing relationships withthem to help our affiliates.

Group RCI has been activein Russia since 1995 and withinthe past five years I’vedefinitely seen animprovement in the legislativestructure, with moreimprovements to come. Iwould say that in about fiveyears’ time legislation inRussia regarding overseasinvestment, property and landownership will be on a levelapproaching that alreadyenjoyed in Europe.

THE LANGUAGECHALLENGEThe country’s timesharemarket is now at a new andexciting crossroads, as thelong-established domestictimeshare customer base isbecoming keen to buytimeshare properties inmainland Europe.

One of the biggest barriersto entry when it comes tomarketing in Russia and toRussian clients is language.It’s difficult marketing toRussians if you don’t havelocal staff, which is why manyhotels are now hiring Russianstaff and putting menus andbrochures in Russian.

Group RCI, for example, iscreating point of sale materialin Russian for the sales decksto make it easy for Russianpurchasers to understand anduse the literature. There arenow travel expos in Russia,with four in Moscow this yearalone, which makes our jobeasier when it comes topromoting the timeshareindustry.

RESORT DEVELOPMENTAND TRAVEL TRENDSDeveloping new resorts inRussia is still not an easything to do if coming in fromabroad.

However, as moreRussians experience the

timeshare product at homethey readily want to takeadvantage of the overseasopportunities and exchangeholidays. Hotel developerssuch as Nordic Hotel andresort groups like HolidayClub Resorts are nowconstructing new resorts inthe big cities, which Russianslove to visit.

Moscow and St Petersburg,for example, hold a specialplace in the hearts of themajority of Russians. TheBlack Sea is also popular withRussians, as is Dambay inUzbekistan for its ski resorts.And unsurprisingly, marketssuch as Croatia, Bulgaria,Hungary and the CzechRepublic are key holidaymarkets for Russians giventhe relative lower costs andclose proximity.

Russians undoubtedlyhave a greater ability anddesire to travel than 10 yearsago. Though only 20 per centof Russian timeshare ownerscurrently buy into overseasresorts, Russians are activeexchangers, withapproximately 45 per cent ofGroup RCI’s Russian memberswho own in Russia exchangingout to Spain or the CanaryIslands each year.

According to our research,there has been about a 15 percent increase in Russians

travelling overseas for bothleisure and business in recentyears. Popular destinationsinclude Finland, Lithuania andLatvia, places that are easyfor them to access by car ortrain.

But when it comes tofamily holidays in the sun,Israel, Turkey, Egypt andCyprus are populardestinations. These marketscater to the middle classpackage holiday Russiantourist who will often taketheir whole family, includinggrandparents, aunts, unclesand cousins. But given thehigh disposable income manytravelling Russians enjoy, theydo expect a high qualityproduct and something reallyspecial.”

■ For more informationplease contact Riitta Apiola on+358 9 4761 9219 or [email protected]

■ Last year, Group RCIappointed Nadja Tulander, aRussian speaker, to itsHelsinki office. Nadja isresponsible for supporting thesales teams of Group RCI’saffiliates operating in theRussian market.

She is currently supportingHoliday Club Resorts’ salesteams at its St Petersburgresort.

The average monthly rent in the capital was$6,800 per annum in Q3 2007 – representinga 34.8 per cent increase in just nine months.

St Petersburg is the second largest propertymarket in the country, which is reflected in itsproperty prices. The Property Secrets websitestates: “Prices range from $2,955 per squaremetre to $16,500 on the secondary market.

Primary properties tend to be more expensiveand buyers can expect to pay $3,700 to $17,300per square metre, depending on the locationand the project facilities.”

But given that this city has seen such rapidgrowth over such a short period of time,property values are not generally expected toget much higher. Millionniki and business

centres such as Rostov-on-Don in SouthernRussia, are tipped by the pundits to be theareas to feed demand for higher qualityproperties in future, especially with the 2014Winter Olympics in Sochi on the horizon.Currently, average apartment prices inMillionniki are between $700 and $1,200 persquare metre, according to Knight Frank.

THE GROUP RCI VIEW



A salesperson always hasto work hard to close a dealand none work harder than

those representing theshared-vacation ownership

industry, coming, as theyoften do, face to face with a

very wary customer. RCI Ventures, with the

help of Marcello Morelli ofHeritage Resorts and John

Gernon of Regency Resorts,looks at the philosophiesand strategies that drive

sales success in thetimeshare and fractionalsectors of the business.

THE FRACTIONAL FOCUSSelling a high-end product always requires atailored focus. But it takes that – and more –when selling fractionals to affluent travellers,according to Regency Resorts’ John Gernon, whoshares his personal philosophy with SARAH LEE.

Gernon, project director of the company’s72-unit fractional resort, The Regency Country

Club, believes focusing on aprospective buyer’s emotionalresponse and ensuring they feel

no remorse following their purchase are the keys to a successfulfractional sale.

He said: “We don’t sell to our clients, but give them the opportunityto buy their future holidays with us.”

With entry level one-bedroom apartments at the Tenerife propertystarting at about €180,000 and a four-bedroom selling for €750,000per five-week fractional, it is a considerable purchase. And since theresort’s clientele of executive-level professionals don’t want to feelpressured into buying a product, selling fractionals requires a differentapproach to the techniques commonly employed elsewhere in theshared-vacation ownership business.

Gernon explained: “If a person is ‘sold’ a product, they willundoubtedly experience buyers’ remorse in the following few days.

“However, if a person ‘buys’ something, remorse is removedbecause they’ve chosen to make a decision to purchase themselves. This not only makes clients feel happy with their purchase, but it willannihilate your cancellations.

“We have cancellations, like everyone else, but they are a great deallower than they could be in today’s legislative climate.”

Since Regency Resorts entered the fractionals market with TheRegency Country Club in June 2007, it has converted 300 –approximately 20 per cent – of its standard timeshare owners tofractional ownership with an average of two and a half weeks costing€60-70,000. According to Gernon, it was just a question of “knowingour members and what they wanted, and we know all of them well.”

The company’s marketing techniques have varied. It has not used Off-site Personal Contacts (OPCs) since 1993, favouring instead fly-buys,where clients visit the resort and experience all it has to offer beforeattending a sales presentation. The company also markets itself online anddirect to targeted demographic groups.

Gernon said: “We’ve been selling positively for a long time. We alsoreward members for referrals under our ambassador scheme which hasproven very successful.”

COVER FEATUREQUOTE: IF A PERSON ‘BUYS’ SOMETHING, REMORSE IS REMOVEDBECAUSE THEY’VE CHOSEN TO MAKE A DECISION TO PURCHASETHEMSELVES. JOHN GERNON

SELLTHE

RIGHT

workV-Sales4 xp6-sa-rb-JP-vers7:Layout 1 8/9/08 16:41 Page 2

workV-Sales4 xp6-sa-rb-JP 2/9/08 17:17 Page 3

THE LIFE OF A FRACTIONAL SALE A client’s signature on a salesagreement at The Regency Country Club is the culmination of weeksof hard work. There isn’t such a thing as a typical day for the resort’ssalespeople, as they’re involved in a whole range of activities, many ofwhich aren’t directly linked to sales. Instead the focus is on building atrusting and friendly relationship with the client over a period of timein the same way a real estate agent would.

Gernon explained: “Around four to five weeks before clients visit usour sales staff telephone them to introduce themselves and to find outmore about the client and what they’re looking for in their holidays.

“They will then recommend day trips or activities, and book thingsfor them as required. Our salespeople also enquire about anydisabilities clients may have, or special requests, and have even beenknown to shop for them so they have a fully stocked fridge on arrivalor pick them up from the airport.

“During a guest’s stay, members of our sales team are available tothem whenever needed – be it to ask about a local attraction or resortfacilities. Our salespeople will also accompany guests on day trips.

“Selling is hard work, but for our people – some of whom work 14-hour days when necessary – the rewards are great.”

Another important aspect of sales at The Regency Country Club isthe chance for prospective purchasers to mingle with owners.

Gernon said: “Our resort is very much a community. We actuallycall members and prospective members ‘friends’ rather than clients.

“We get to know them and their family, go out with them, playgolf with them, send them flowers on their birthday. I’ve even been on

QUOTE: OUR RESORT IS VERY MUCH A COMMUNITY. WE ACTUALLYCALL MEMBERS AND PROSPECTIVE MEMBERS ‘FRIENDS’ RATHERTHAN CLIENTS. JOHN GERNON

COVER FEATURE


John Gernon, pictured left, focuses on building a trustingrelationship with potential purchasers of Regency Resorts’fractionals product.

Pictured top: The Regency Country Club is a Balinese-themed haven on Tenerife where entry level one-bedroom apartments start at about €180,000.



■ Emphasise the low capital requirement of a fractional

compared to the costs of second-home ownership.

■ Sell the flexibility of a fractional purchase. Highlight the

exchanges possible across The Registry Collection portfolio –

whole ownership of a second home doesn’t offer the opportunity

to holiday on yachts, at ski lodges or fly in private jets.

■ Fractionals are an exclusive concept but they also make for

great family holidays. Family members represent the biggest

emotional trigger for any sale. Children like going on great

holidays especially when they can take their friends. You can

appeal to people this way, as even teenagers think of their

parents as ‘cool’ if they’re able to go on great holidays where,

instead of skiing or playing golf on computer games, they can

actually ski down the slopes and play golf on the same

courses as Tiger Woods.

■ Introduce resort ambassadors. People want to impress

friends and family and the best introduction for a potential

owner is to hear about this great concept from someone they

love and trust – it makes selling a great deal easier.

■ Use the fact that fractionals can be sold in perpetuity as a

selling point. Owners like the fact they can pass it on to

children or other family members. It makes a difference if

they feel they’ll get lasting value from the purchase.

TOP TIPS TO FRACTIONAL SALES

exchange holidays with some. And it’s this community spirit thatshines through and is a huge selling point.”

Regency Resorts’ sales team use presentations to sell their product,as in other shared-vacation ownership resorts, but they utilise thelatest technology to help clients visualise themselves as owners.

Gernon said: “Our sales staff meet clients for a champagne breakfastand conduct a visual presentation on laptops. The clients are very receptiveas the sales team have already developed a great rapport with them.

“Being affiliated to The Registry Collection offers a greater choiceof accommodation and holidays available to your owners. Showingclients where they could exchange certainly helps.

“We then show them where various resorts are on Google Earth.Being able to instantly zoom in on a US ski lodge or a coastal resort inMexico shows clients what they’re buying into. It’s a bit like reading abook – you make up a picture in your own mind of what you’re buying.

“Once the sale is complete we get our clients to return and try theproduct as soon as possible. We get a lot of conversions from this withsome members buying more time with each visit.

“In many ways it’s all very simple, but people like things that aresimple – so it works.”

THE TIMESHARE DREAM SALEKATHERINE STEINER-DICKS talks to Marcello Morelli, sales director ofHeritage Resorts, about what makes the timeshare sale tick.

Morelli spends most of his days in an enviable location, Marbella,home to Heritage Resorts’ Club Playa Real. But while most people jet

to Marbella for a holiday, Morelli is there to work which, for him,means selling a little bit of paradise each day and promoting thetimeshare dream.

His day usually starts with a 9am sales meeting with his team ofsales managers and representatives. Given his infectious positiveattitude, his sales team can look forward to a motivational talk everymorning to prepare them for the day ahead and to discuss theactivities and leads of the previous day.

When he’s not motivating his team, he’s keeping in touch withhis sales managers at five of the company’s Spanish resorts. He willalso personally take prospective purchasers on resort tours to ensurethey have all the information they need. And he can often be foundhelping sales reps to close deals at sales presentations by workingon pricing and specific requests.

Although much of the work of a traditional timeshare sale isdone in one day, Morelli likes to ensure his salespeople follow upwith friendly phone calls to customers, setting up individualpresentations if required and being attentive to any requests. Heencourages sales reps to take the opportunity to set up meetingswhen they see people in the reception, by the pool or in the resortrestaurants.

Morelli says one of the most valued of his six sales channels topotential and existing timeshare owners is through agencies. Heexplained: “We have five outstanding resort locations on Spain’sCosta del Sol, as well as two superbly located resorts in England. Wework with agencies by giving them free accommodation and/or


QUOTE: OWNER REFERRALS, WHEREBY EXISTING OWNERS DISCUSS THE BENEFITS OFOUR TIMESHARE PRODUCT WITH FRIENDS AND FAMILY, OR EVEN WITH FLY-BUY GUESTS,REMAIN THE BEST WAY TO PROMOTE THE BRAND AND PRODUCT. MARCELLO MORELLI

COVER FEATURE


the option of offering them a booking fee. We invite people to ourresorts in Spain and England on the condition that we are allowed asmall amount of their time via a no-obligation personalised salespresentation. Obviously, having these important one-on-onepresentations makes it viable for us to give up the accommodation.”

Heritage Resorts’ next big sales channel is its owner referralprogramme. “It seems that owner referrals, whereby existingowners discuss the benefits of our timeshare product with friendsand family, or even with fly-buy guests on resort and at our weeklywelcome party, remain the best way to promote the brand andproduct,” said Morelli.

He explained that incentives are offered to owners recommendingthe Heritage Resorts’ product to friends and family, and these couldbe a full year’s maintenance fee or a commission on the sale.

“Owners who successfully refer a client to us would get a highercommission if the customer takes his promotional holiday during theoff-peak season, when occupancy tends to be lower,” says Morelli.

“Another way we generate sales is through people coming tostay with us on an RCI exchange holiday. After they’ve enjoyed thehotel, its facilities and local surroundings they will then attend aninformal meeting.”

As with all travel-based industries, the internet is a priceless salestool for Heritage Resorts. The company’s website, which caters forits large English and Italian rental customer base, allows new rentaland enquiring customers to go online to see what’s on offer andlearn more about the timeshare product.

Marcello Morelli urges total transparency in dealings with potentialpurchasers with regard to the sales presentations and processes.

Top left: The RCI Gold Crown resort of Heritage Resorts ClubPlaya Real in Marbella, Spain, is marketed and sold in aprofessional manner befitting the quality of the property.

Top right: Heritage Resorts at Matchroom on the Mijas Costa,an RCI Gold Crown property, is one of a portfolio of five of thecompany’s Spanish resorts which come under the management ofMorelli.



But you can’t beat face-to-face meetings, which are always the bestway for customers to develop an understanding of the product and,more importantly trust, according to Morelli.

Of all the sales channels, cold calling is the toughest, as anysalesman will tell you. But working from an established customer basedoes make things easier. Heritage Resorts’ telemarketing departmentdeals with multiple nationalities and undertakes cold calling andfollow-ups to its own clients. This forms part of the owner referralprogramme.

“An element of trust is already built into the relationship,” saysMorelli. “This allows the telesales team to gently remind customers ofthe added benefits of upgrades or perhaps considering referringHeritage hotels and the RCI network to others.”

SALES PHILOSOPHY Morelli has naturally developed a salesphilosophy, believing that a good product will not simply sell itself.

He said: “It’s very important in the timeshare business thateveryone understands it’s vital, above all else, to have clients inplace. It won’t matter how good the product is, because if you don’thave a client base it will be virtually impossible to sell the product.”

Trust and an established track record in the industry workwonders, says Morelli, as does a reliable network of sales routes.“But I have to say that my sales philosophy or motto is to ‘Tell theclient the good, the bad and the ugly’,” he adds.

“Explain why they’re at the presentation and that there’s noobligation to buy anything. The time that is spent with clients

during our personalised presentations allows us to learn abouttheir holiday preferences and to explain the different options theymay find attractive. Our main Heritage product offers fourdifferent levels, allowing our owners to holiday at 25 differentresorts around the world. We have a very flexible product.”

The main concern timeshare owners have is availability ofaccommodation and getting the week they want. This comes downto the fact that many have limited holiday times, especially duringthe school holidays. Morelli said: “These are the busiest periods forus and space is therefore limited so I urge customers to book assoon as possible to avoid disappointment. Education in the properuse of timeshare is crucial, right from the sales deck.”

Going back to the issue of trust, according to Morelli thatbegins when a customer draws their own conclusions based on theinformation provided. He believes there’s a line to be drawnbetween a salesperson being passionate about the product andwhen they’re just promoting the rosy side of things. He thinks thelatter approach is clearly insincere.

He said: “On arrival, guests are invited to our welcome party.This is the perfect time for existing owners and fly-buy or otherlead generation guests to meet. We also invite owners to let usknow if they have any concerns, questions or requests to remindthem that we want them to have a stress-free holiday and no issue or question is ever considered trivial. In this way we’reshowing guests who are prospective purchasers that we havenothing to hide.”

■ Set the scene by making

sure the client is relaxed

and understands the

purpose of the sales

meeting. Ensure they have

a happy environment.

■ Advise clients of the

good, the bad and the ugly.

■ Deliver the sales

presentation with

enthusiasm, but don’t go

overboard. Respect

people’s space and keep a

happy medium.

■ Listen to the client

because it’s all about

fulfilling their dreams.

■ Your state of mind

should always be positive.

You have to believe that

everyone wins or else

you’re in the wrong

business.

TOP TIPS TOTIMESHARE SALES

V



Relative newcomer to the industry – and to Cyprus –Kouroushi Lion Resorts is certainly making its presence onthe island felt with four quality resorts and a fifth due to openshortly. SARA MACEFIELD takes a look at a company that hasits sights set on expansion, across Cyprus and beyond.

QUOTE: CADS HAD THE CAPITAL PROJECTS AND WE BROUGHT OUR TIMESHARESALES AND MARKETING EXPERTISE ... THE PARTNERSHIP OPENS UP A HOST OFOPPORTUNITIES FOR US IN NEW DESTINATIONS. JACK MABLY

BUSINESS PROFILE

ISLANDNO ONE could accuse Lion Resorts Vacation Club of restingon its laurels.

Having been in business for a relatively short time, theCyprus-based operation is sitting on the cusp of an investmentwave with more than €120 million tied up in two new majordevelopments on the Mediterranean island.

But that’s not all. Three years after it was founded in 2002 byindustry champions Andrew Chapman and Jack Mably, LionResorts linked up with leading Cypriot entrepreneurs theKouroushi Brothers to form a new parent company, KouroushiLion Resorts (KLR).

This deal may have sealed success for the KLR partnership inits home market of Cyprus but, following a recent merger withreal estate and tourism giant CADS International, the companynow has the rest of the world in its sights.

Mably, managing director of Lion Resorts, the sales andmarketing entity of KLR, said: “It was a natural fit. CADS had thecapital projects and we brought our timeshare sales andmarketing expertise. The partnership opens up a host ofopportunities for us in new destinations, including EasternEurope, North Africa and the Far East.

“We are also looking to expand with leading developers inyear-round destinations throughout Europe using our verysuccessful model.”

WHAT’S NEWFor the present, Lion Resorts is concentrating on its two newestGroup RCI-affiliated properties which will boost its timeshareportfolio in its home market of Cyprus.

The contemporary Capital Coast Resort & Spa, which

opened on a prime site overlooking the sea near Paphos atthe end of July, boasts a wealth of facilities and has beenawarded RCI Gold Crown status.

The property comprises 113 spacious and modern one-,two- and three-bedroom apartments, along with a wellnesscentre and spa, squash court, gym, indoor and outdoorswimming pools, two bars, a la carte restaurant, and eveningentertainment lounge and bar.

However, the look and feel of the resort is more reminiscentof a hotel configuration.

Mably explained: “When we acquired the land there wasalready a building licence for a 250-room hotel. So, ratherthan coming up with a new concept and applying for newlicence permissions, which would have taken at least 12months, it meant we could start work immediately using theoriginal footprint.

“The only changes we made were to the interior plan as weconverted a 250-room hotel to a timeshare property comprising113 luxury self-catering suites. As a result, the whole projectonly took 15 months to complete, which is an amazing feat andproves our decision to build our future withChrysostomos and Kypros Kouroushi wasthe right one.”

Construction of KLR’s other new-buildresort, the Amphora Hotel Resort & Spa, isalso under way. This property is being builtin a prime beachfront location overlookingPaphos harbour. At 40,000 square metres,the site is one of the largest of any leisureaccommodation property in the area.

LION

BImages of KLR’scontemporaryCapital CoastResort & Spa willbe used to marketthe resort in spa,lifestyle andwomen’smagazines.

workV-BizProfKLR xp6-sa-jp:Layout 1 8/9/08 16:40 Page 2

workV-BizProfKLR xp6-sa-jp 1/9/08 13:51 Page 3

The resort property will house 88 timeshare apartments, comprising a mix ofone-, two- and three-bedroom suites, some with lock-offs, plus three-bedroomvillas with private pools.The resort will have its own 1,200-square metre state-of-the-art spa and wellness centre and there will also be a five-star hotel on site. Otherresort facilities include indoor and outdoor swimming pools, a chapel, smallcinema, shops, restaurants and bars.

The first phase, comprising 47 timeshare apartments, is due to open by the endof May next year, while the second phase, which covers the 73-room hotel and therest of the facilities, is scheduled to be completed in spring 2010.

On both properties, Lion Resorts is targeting the UK and Russia as its two keysource markets.

THE RIGHT WAY TO SELLThe UK has long been linked to Cyprus through historical ties and, more recently, asan upmarket tourism destination.This was one reason why Chapman and Mablychose the island for their joint venture in the first place.

Mably explained: “The British market was well-established and inbound visitornumbers to the island were high.We were also encouraged because Cyprus was dueto join the European Union three years later.”

Since then, UK tourism to Cyprus has dropped.This has been attributed toincreased competition from rival neighbouring tourist destinations, but thecountry’s relatively high cost of living – not helped by its adoption of the euroearlier this year, which has been blamed for pushing prices up – has played its partin reducing British tourism to the island.

One issue that has undoubtedly influenced the island’s placing in the popularitystakes is the ongoing problem of off-site personal contacts (OPCs) and their salestactics, which amount to tourist harassment in many cases. Last autumn, the Cypriotauthorities tightened up legislation to stamp this out – but not before the image oftimeshare on the island had been adversely impacted.

Lion Resorts wants to steer clear of building a reliance on OPC operations as itsmain sales tool and is, instead, looking at more imaginative ways to sell itstimeshare weeks.

Lead generation director Sean Thacker is putting together a package of measuresthat will become the company’s blueprint for timeshare sales.

It revolves around the key premise of enabling would-be buyers to sample thetimeshare resort while on holiday.The company has teamed up with tour operatorssuch as Thomas Cook,Thomson, First Choice, MyTravel, Libra,Argo and Jetlife tosend holidaymakers to its Capital Coast resort. Once there, they will be given thechance to attend a Lion Resorts Vacation Club presentation.

Matthew Metcalfe, the company’s sales director, said: “Usually people have beenbrought into presentations from other hotels but in this case they will be staying atthe resort and I’m confident that it will sell itself.To rely on this as a key sales toolyou have to be sure your existing customers and guests will do the selling job foryou – and I know ours will.”

The company claims this approach yields a 40 per cent conversion rate with ahealthy average sales price – a figure it hopes to improve upon.

Thacker explained: “We are now driving our efforts to source market generationwith offers for people to come and stay.We are working with large UK companieswhen it comes to affinity marketing, offering employer/customer benefits, and we’recurrently working on several promotions with the NHS in the UK among others.

“We’re targeting our advertising more carefully so, with Capital Coast, we’rechoosing spa and lifestyle magazines and women’s titles. It’s not ground-breaking,but it’s new for the company and we expect to use it as our model going forward.Our key focus is on customer delivery in the source market, which is proving verysuccessful for us as a company.With several new projects and developments in thepipeline this is a key area for our growth.”


QUOTE: WE ARE LOOKING TO WORK WITH LARGE UK COMPANIESWHEN IT COMES TO AFFINITY MARKETING THROUGH OFFERINGEMPLOYER/CUSTOMER BENEFITS. SEAN THACKER

BUSINESS PROFILE

V

ABOUT JACK MABLYFounder director of LionResorts, Mably began hiscareer in timeshare in 1997when he joined the AnfiGroup, developers of theGroup RCI-affiliated Anfi del

Mar resort, which at the time had morethan 800 apartments and annual salesrevenue of £60 million. Following theacquisition of Anfi by the TUI Group in 1998,which saw the expansion of the Anfi brandinto Greece, Mably, as project director, setup and managed the sales and marketingof three timeshare resorts across the Greekislands.

ABOUT ANDREW CHAPMANFounder director of LionResorts, Chapman is achartered accountant whostarted his career withThomas Cook, where heworked for 11 years. After

working in the company’s financedepartment, he became general managerof Thomas Cook Timeshare Holidays andled its expansion in this field.

ABOUT SEAN THACKERLead generation director,KLR Hotels & Resorts,Thacker joined thecompany last February andbrings 15 years’ experiencein the industry with him.

He’s worked for TUI’s timeshare arm, aswell as for Grecotel’s Galaxia VacationClub in the Greek islands and Hilton’stimeshare division.

ABOUT MATTHEW METCALFEKLR sales director,Metcalfe, joined thecompany in 2001. In 2003,at the age of 23, he becameone of the youngest salesand marketing directors in

the industry. His main focus is now salesas the company expands its operationthroughout Europe and the Middle East.

B The stylish Akamanthea Holiday Villageis one of six – soon to be seven – KLRresorts in Cyprus.


KOUROUSHI LIONRESORTS (KLR) –THE FACTSFormed in 2005 as ajoint venture betweenCypriot developers, theKouroushi Brothers –founded by Kypros andChrysostomosKouroushi, and LionResorts – a vacationmembership sales andmarketing companyestablished by AndrewChapman and JackMably in 2002

KLR has twobusiness divisions: KLRHotels & Resorts andLion Resorts VacationClub.

In May 2008 KLRmerged its sharedvacation membershipbusiness withTrustwise HolidayResorts, owned byCADS International, areal estate, hospitalityand tourismdevelopment group.

KLR currentlyowns or manages nineresorts, with the tenthdue to open next year.

In Cyprus they are:Akamanthea HolidayVillage, AliathonHoliday Village,Malama HolidayVillage, Laura BeachResort, Cypria MarisResort and the RCIGold Crown resortCapital Coast Resort &Spa. They will be joinedby the Amphora HotelResort & Spa nextspring.

In Egypt it marketstwo resorts: TamraBeach Resort andRehana Sharm.

In Zante the grouphas one: Erietta LuxurySuites.



Kuwait-based IFA Hotels & Resorts has a wide-ranging portfolio,from hotels to high-end whole-ownership, timeshare,fractionals, Private Residence Clubs and even yacht ownershipclubs. STEVE ADAMS looks at how all these elements of leisurereal estate work under one corporate roof.

IN AUGUST 2008 IFA Hotels & Resorts (IFAHR) announced year-end profits of $143 million(€97m), a huge increase of 64 per cent on its2007 figures. During the same period, totalrevenues rose 86 per cent, from $113.88m(€77.53m) in 2007 to $211.47m (€143.97m)during 2008.

The impressive figures are attributable toKuwait-based IFA HR’s wide array of businessinterests, which range from land holdings toresort development and management. Vacationownership, in its various forms, is playing anincreasingly important role in the company’sfinancial results, and one that is likely to continueas the company pushes ahead with ambitiousplans for global expansion.

Piaras Moriarty, IFA HR’s vice president,vacation ownership, said growth plans followed amethodical strategy covering three main areas –hotel development, which is the company’s initialcore business, vacation ownership and real estate.

He said: “When you develop all three productsat the same time in a single resort, the synergythrough the businesses makes the expansion a lotmore effective.

“Since you’re developing a market for realestate you’ll also get people who are interested inbuying fractionals, vacation ownership and PrivateResidence Club (PRC) membership, and that allraises awareness of the hotel once it opens. Sothey all feed from each other.”

MORE TO MIXED-USEMoriarty said IFA HR saw the potential for thedevelopment of fractional properties and PRCsfollowing the success of its first vacation clubproduct at the Pine Cliffs mixed-use resort inPortugal some 15 years ago.

He said: “Vacation ownership was obviously avery positive factor in that development. Fractionalownership came as a result of that success.

“The main advantages are that it adds to the

mix of products that you have at the development,creating higher occupancy rates and a reductionin operating costs. For instance, instead of havingone general manager for the PRC and another forthe hotel you have one for the entire complex.”

Kevin Wash, deputy vice president, vacationownership, says developing a PRC was a naturalstep for IFA HR.

“The benefits of mixed-use properties havealways featured very clearly in the development ofthe company,” he said. “This is one of thestrategies that separates IFA HR from mostproperty developers – we want to offer productsthat encourage a relationship between ourselvesand our clients. We felt that a PRC was a perfectextension of our product portfolio.”

Moriarty added: “Ultimately the client gets abetter service and better amenities as a result ofbeing in a mixed-use environment.

“After all, you wouldn’t build 10 restaurants ifyou only had a vacation club or a PRC, but theywill be part of a development when there is ahotel and so on.”

Size has other benefits. IFA’s worldwidenetwork of properties and brands includesFairmont Hotels & Resorts, Kempinski Hotels,Mövenpick Hotels & Resorts and Sheraton Hotels& Resorts. There is also a Vacation Club and soon-to-be-launched ‘IFA Collection’, whichincorporates its high-end Fairmont HeritagePlace-branded properties. These various resortproperties are able to effect internal exchanges fortheir guests.

THE REGISTRY COLLECTION OFFERS MOREThe company has also recently affiliated a numberof resort products – including its innovative IFAYacht Ownership Club (see opposite page) – tothe prestigious portfolio of premieraccommodations, The Registry Collection (TRC).TRC affiliation offers owners even greater choiceof destinations, according to Wash.

FRACTIONAL RESORTQUOTE: WE WANT TO OFFER PRODUCTS THAT ENCOURAGE A RELATIONSHIPBETWEEN OURSELVES AND OUR CLIENTS. WE FELT THAT A PRC WAS APERFECT EXTENSION OF OUR PRODUCT PORTFOLIO. PIARAS MORIARTY

MAKING A SPLASH…

workV-IFA5 xp6-JP:Layout 1 8/9/08 16:38 Page 2


Pictured at the signing of IFA Yacht Ownership Club to The RegistryCollection are, from left, Shafi Syed of RCI Middle East, Piaras Moriartyof IFA Hotels & Resorts, Geoff Ballotti, Group RCI president and CEO,Talal Jassim Al-Bahar, chairman of IFA Hotels & Resorts, and NickTurner, vice president, Group RCI business development.

One of the IFAYacht Ownership

Club vesselswhich come with

full crew and chef.

MAKING WAVESThe IFA Yacht Ownership Club is making waves in the leisure industry as aflexible way to enjoy a luxurious yachting lifestyle without needing to findthe capital, maintenance and management costs to support full-time yachtownership.

With yachts – complete with crew including on-board chefs – based inthe Arabian Gulf, Red Sea, Caribbean and east and west Mediterranean,the club has proved so popular there is a 100 per cent renewal rate on itsannual membership, according to Piaras Moriarty, IFA HR vice president,vacation ownership, who says the product was largely developed inresponse to customer feedback.

He explained: “We had a portfolio of customers who had purchasedhigh-end properties and villas from us, and from feedback we knew theywanted to enjoy yachting, but it didn’t make sense for them to own oneyacht in one destination or two yachts in two destinations. So the yachtingclub came about from requests from our customers.”

Moriarty said the initial product – based on the timeshare model withcustomers buying a week for five years and pre-booking its use – didn’treally work. The company opted instead for an annual renewable points-based membership.

“It’s a very straight-forward concept,” he said. “You take the whole costof the product, divide it among a certain number of members and they geta better price, you make a bit of profit and there are benefits foreverybody… you are simply utilising your asset more effectively.”

workV-IFA5 xp6-JP 1/9/08 15:34 Page 3

He explained: “This serves toenhance the benefits of our products,and TRC also provides resorts whichmeet the exacting standards that wedemand.”

Wash said positive memberfeedback during IFA HR’s 15-yearrelationship with Group RCI throughits timeshare units at Pine Cliffs –which is affiliated to Group RCI’sexchange network and is an RCI GoldCrown property – played a key role inencouraging the company to sign upto TRC.

He added: “From our Pine Cliffsownership we know that our clientstruly appreciate the wider resortexchange facility, and that itencouraged them to travel todestinations previously unvisited, secure

in the knowledge of the standard ofaccommodations they will find.

“The quality and destinationdiversity of TRC merges perfectly withthe business ethics of IFA HR, and weare aware that there is controlledexpansion of TRC, which will continueto enhance its standing.”

Moriarty said he expected TRC tobe more popular with members of IFAVacation Club than fractional owners.

He explained: “Exchange is alwaysimportant, but typically a PRCmember buys to use that property,though over time he might wantadditional options and the chance toexchange. Exchange is therefore amajor priority and TRC is veryimportant to us – we’re keen to addmore and more inventory to it.”

QUOTE: THE QUALITY AND DESTINATION DIVERSITY OFTHE REGISTRY COLLECTION MERGES PERFECTLY WITHTHE BUSINESS ETHICS OF IFA HR. KEVIN WASH

FRACTIONAL RESORT


A view of the pool from one ofthe lodges at Platinum PrivateResidences: Zimbali BeachEstate, an IFA Collection Clubproperty in South Africa whichhas now joined The RegistryCollection.

BPine Cliffs,on Portugal’sAlgarve,brought IFA HRinto resortdevelopment inthe mid-1980s.

Piaras Moriarty

Kevin Wash

workV-IFA5 xp6-JP:Layout 1 8/9/08 16:38 Page 4


IFA HR AND THE REGISTRY COLLECTIONIFA Hotels & Resorts signed its agreement with TheRegistry Collection at the Arabian Hotel InvestmentConference earlier this year.

The affiliation will give IFA Collection Clubmembers access to more than 100 prestigiousdevelopments within The Registry Collection.Properties within IFA HR’s portfolio, including PineCliffs in Portugal, the IFA Yacht Ownership Club andfuture resorts such as The Palm Residence and theKingdom of Sheba on the Palm Jumeirah, Dubai, andZimbali in South Africa, will be added to The RegistryCollection.

The company has a number of expansionplans. Private Residence Club properties willsoon be available at Fairmont Heritage PlaceZimbali in South Africa and Fairmont HeritagePlace, Kingdom of Sheba on Dubai’s PalmJumeirah – and that’s just the start accordingto Wash, with Zanzibar,Thailand, SouthAmerica and the Seychelles also on thehorizon.

“We’re currently reviewing locatingFairmont Heritage Place properties in a numberof destinations, and believe the expansion ofthe product is key to the future growth ofsales,” he explained.

“We look everywhere,” added Moriarty.“Markets change and opportunities presentthemselves.We’re very flexible and we developproducts for consumers in various markets.”

Moriarty also said the company’s strategy of

selecting and developing properties that areunique – in terms of destination, design,structure of product and management – helpedit to succeed in a tough economic climate.

“When people say ‘recession, recession,recession’, it really depends on what you’reselling,” he explained. “If you’ve got a run-of-the-mill product that’s the same asthousands of others on the market then ofcourse you’ll be affected by recession.

“But if you’ve got a property which isunique, and full of attributes and benefits, thenyou’ll be less affected or even bypass recession.So far we’ve had no negative or adversereaction. Our first year of selling fractionals inDubai exceeded our expectations – we’ve very,very happy with the results.That’s due to goodproducts, good location and good peopleselling them.”

DIVERSITY AND DISTINCTION

DAn interior atPine Cliffs resortcharacterises theupscale offering ofthe IFA HR product.

V

workV-IFA5 xp6-JP 1/9/08 15:47 Page 5

Continental Trustees LimitedFOR ALL YOUR TRUSTEE SERVICES

Contact:Mike Murphy: 00 353 86 8118 391Trevor Darby: 00 44 7787 354 366

Head Offi ce:P.O. Box 78, Waterford, Ireland

00 353 51 373294Email: [email protected]

www.continentaltrustees.com

WHO IS GOING TO FINANCE YOUR

FRACTIONAL BUYERS?

LET US SHOW YOU A WHOLE NEW WAY TO SELL RESORT PROPERTIES USING OUR

FRACTIONAL SYSTEM

WITH GUARANTEED FRACTIONAL FINANCING!

“COME FLi WITH US”™

www.fractionalli.net

c

Where’s yourmessage?Ventures is THE magazine to turn towhen you want to gain the attentionof industry professionals.

Published four times a year, Ventures is thedefinitive publication for European industryexecutives.

Ventures will get your advertising message through.

For information on options, rates and deadlines,

contact: Nicky Lane,

Media Line Ltd, 23/25 Hockliffe Street, Leighton

Buzzard, Bedfordshire, LU7 8EZ.

Telephone: +44 (0)870 2508701

Mobile: +44 (0)7956 107882

Email: [email protected]

Ventures 1-4 page Oct08 ads:Layout 2 9/9/08 12:06 Page 1


QUOTE: IT’S NO LONGER ENOUGH TO BE SELLING JUST A PRODUCT AND THIS IS PARTICULARLY IMPORTANT WITH FRACTIONAL OWNERSHIP AND TIMESHARE OFFERINGS TARGETING THE MORE SOPHISTICATED, WEALTHY CONSUMER. CHRIS EVANS

MARKETING

IN RECENT years we have seen a massive re-definition ofwhat people aspire to have and what luxury desirables areactually perceived to be.

Rather than accumulating more things – whether cars,yachts, or holiday homes – people are craving 360-degreelifestyle experiences. It’s no longer enough to be sellingjust a product and this is particularly important withfractional ownership and timeshare offerings targeting themore sophisticated, wealthy consumer.

This market, driven by the need for ‘lifestyleexperiences’, can be broadly defined as ‘cash-rich, time-poor’. Not that they waste their money, quite theopposite in fact. These customers are very smart withtheir hard earned cash and it makes considerable financialsense for them to acquire fractional or timeshare-baseditems – to be able to use something only at the times theywant to.

However, even more potent than being savvy with theirmoney, is the desire of the ‘lifestyle-focused’ consumer to

be smart with their time. For them this is considered to bethe real luxury. To purchase something that not only addsvalue to, but also smoothly integrates with their oftenpressurised lifestyle, is vitally important.

By being sensitive to these customer characteristics wecan understand the needs and requirements, aspirationsand desires of this market more fully and communicate tothem in a far more considered, effective and engaging way.

I would suggest there are six key things that everycompany operating in this market should consider. Firstlyabout themselves as a brand, and then in the way they seekto target their potential customers in any communication –whether marketing, advertising, branding, online, or in theservices they offer.

1. INSPIRATIONTake a yacht company, for example. The focus ofcommunication should be on creating inspiring imagesappealing to the consumer’s senses, conveying the feeling

Chris Evansbelieves‘lifestyle-focused’customers aresmart with theirtime and theirmoney.

Evoking the right ambience and eliciting thedesired emotional response is particularly important when marketing to the buyersof high-end properties. CHRIS EVANS, head of creative at Creative Action Design,highlights the ways in which marketing materials can make the difference.

LIFESTYLE FOCUS

workV-Mkting xp6-rb-JP:Layout 1 8/9/08 16:37 Page 3

of actually being there. The sound of the lapping water, thesmell of the fresh sea breeze and the colour of the clearblue ocean, goes way beyond the value of the actualproduct alone. It sets a scene and tells a story that peoplecan imagine themselves in and they aspire to be part ofthat scene.

2. INTRIGUE Most importantly in initial contact, and then also toenhance and support the sales process, the visualcommunication needs to be eye-catching and teasebrowsers to discover more.

Giving someone all the information in one go andleaving them with no journey of exploration can be ananticlimax that can put customers off altogether. It’s vital tocreate touch-points or situations that people can relate toand desire for themselves.

When promoting fractional or timeshare-based secondhomes, a great way of doing this is with images of peoplerather than shots simply of the rooms set out like showhomes. A focus on the atmosphere and ambience of adestination will leave people with a deeper and moresatisfying all-round experience.

The pressure to show lots of nice pictures of roomsshowing exactly what they will get, I believe, not onlystifles the customer’s curiosity and interest but can comeacross as a representation of a generic one-size fits alloffering.

3. EXCLUSIVITYBeing made to feel special and unique really motivates theaffluent customer, and this needs to be harnessed whencommunicating with them. All marketing materials need toclearly convey visually that the customer will be treated asan individual.

Any insensitivity to this on either a service or visualcommunication level can seriously undermine an offering,no matter how good it actually is. However if it’s wellconsidered and applied, ‘exclusivity’ can be an incrediblyvaluable tool to drive sales and generate interest.

4. CLARITYTo be able to stand out visually and strategically from anincreasingly crowded marketplace is becoming morechallenging. Therefore it’s vital to have a brand that isdistinctive, communicates clearly and articulates what isspecial about your product and your owners.

The concept should be easy to explain and, moreimportantly, easy for the customer to understand. Whetheron the shelf, on the screen or on the page, you only have afraction of a second to attract a customer.

The questions that must be asked when reviewingmaterials are: (i) can pages of information be reduced to asingle powerful statement, and (ii) is there a single imagethat will carry the message of a thousand words withgreater emotional impact?

On the opposite page are a couple of examples ofadvertisements we designed for a fractional ownershipclassic car club called Parc Ferme. In the ‘Parc & Ride’advertisement we use a humourous pun on the name ofthe club – ‘Parc’ – to illustrate that members can just dropin and drive away. In the ‘No overheads’ advertisementthere is a play on the fact there are none of the overheadsof full car ownership and we use the image of an open-topped classic car which is a model many people dream ofdriving. Both pieces take a whole offering and condense itdown into a statement that speaks to people directly andclearly, cutting through the clutter that bombards peopleevery day.

5. CONSISTENCYCommunicating your brand values starts from the firstpoint of contact with the customer. The whole processneeds to be thought through thoroughly to create aseamless and holistic experience.

From a purely marketing point of view, you’re only asstrong as your weakest piece of communication. I’vecome across companies that have spent thousands ofpounds on high colour brochures – and then haven’tbothered to post complete and appropriate contact detailson their website. How many businesses spend thousandson advertising campaigns only to have nobody on the endof the phone who can help follow up interest anddemand?

The need for a cohesive brand experience is essentialand any areas where consistency is not maintained will beapparent immediately and could lead to the whole offeringbeing disregarded out of hand. There’s no point promisingan upscale lifestyle experience as an end product if theprocess of getting a person there isn’t supportive of it.

6. INNOVATIONWhether using alternative ‘ambient’ advertising, orharnessing new online social networking sites, beinginnovative in communicating with this consumer categoryis vitally important.

The market is always changing and your competition is always evolving, so brands, communications andofferings need to be kept fresh and innovative to achievethat all-important competitive advantage.

For any company to fully maximise the opportunity thatexists they need to remember the pressures the lifestylecustomer groups have on their time, as well as theirpreference for experiential holidays. Given the sensitive anddiplomatic application in the six areas outlined above to allaspects of communication, I believe a company candistinguish its brand. There is no doubt that the financialbenefits of inspiring and engaging this booming andaffluent market sector will be considerable.

■ For more information email: [email protected]


QUOTE: THE FOCUS OF COMMUNICATION SHOULD BE ON CREATINGINSPIRING IMAGES APPEALING TO THE CONSUMER’S SENSES,CONVEYING THE FEELING OF ACTUALLY BEING THERE. CHRIS EVANS

MARKETING

V

workV-Mkting xp6-rb-JP:Layout 1 8/9/08 16:37 Page 4


CThis advert reduces the whole concept behind the fractional classic car club down to a simple picture which intrigues and inspiresthe audience.

DEmotive image and a clever play on words and the company name strengthens the brand and creatively sells the dream.

workV-Mkting xp6-rb-JP 2/9/08 17:04 Page 5


LEGAL

SINCE advising on one of thefirst independent-developerfractional ownership projects inthe south-west of England justover two years ago, there’s noquestion that we’ve seeninterest levels in new fractionalprojects rise dramatically.

Existing owners andexternal developers of hotels,holiday cottages and apartmentcomplexes are beginning torealise the potential in sellingfractionals, as opposed to thetraditional holiday ownershipmodels.

Positive and increasingmedia coverage of fractionalshas, in my opinion, helped toraise both developer and publicinterest levels in the product inthe UK. We notice that clientsnow have a far greaterknowledge and understandingof the fractional market andthe options available to themthan was the case even 12months ago.

While the currenteconomic climate is certainlyresulting in increased cautionacross the board, past studiesindicate that shared-ownership models haveactually benefited fromeconomic downturns, aspurchasers look at alternativesto whole second homeownership. The view amongthe majority of new entrants

we’re talking to is thatprovided they get the productright, they’re confident ofachieving the desired level ofsales, regardless of the overallhealth of the economy.

It would be misleading tosuggest that we’ve not seenany barriers or concerns insetting up new projects, butthis is always going to be thecase until the market maturesin this country.

One of the major issueswe’ve had when advising onnew fractional developmentshas been to educate the banklenders as to how theownership model will work,how it will affect the securitythey are holding over the land/buildings and how they will gettheir money back. In somecases, the bank’s initialdemands for retention ofsecurity have beenincompatible with the legalownership models we haverecommended. There aresolutions to this and one of theways around this problem hasbeen the use of owner/developer buy-back optionswithin the sales agreement.This ensures that if sales don’tgo to plan, fractionals can bebought back by the developerand therefore brought backwithin the bank’s overallsecurity. The bank may well

want to control the timing onthe buy-back option, but wehave not yet found this to be aproblem from the owner/developer’s or, moreimportantly, the purchaser’spoint of view.

One of the other mainissues I repeatedly encounteris concern about the potentialpurchaser’s acceptance andlimited knowledge offractionals – it being arelatively new concept in theUK. In projects we’ve beeninvolved in, we work closelywith the developer client andmarketing advisers to provideconcise, plain English ‘LegalQ&As’ in the marketingliterature and buyer’s guides,with diagrams setting outexactly how the legal schemeis put together.

The issue of limitedpurchaser awareness has, attimes, led interestedpurchasers to instruct theirlocal high street solicitor toadvise them on the fractionalpurchase. This has led to thoseadvisers treating the fractional

purchase as a residentialproperty transaction, which isinappropriate and causeddelays and increased costs forall sides. We have attempted todeal with this by establishing alink with another firm ofsolicitors with knowledge ofthis market and which hasbeen able to provideindependent fixed-fee advice onthe scheme documents topotential purchasers.

Without doubt, fundingneeds to be carefully structuredso as not to cause a barrier togranting unencumberedownership rights to thepurchaser. Sensibly draftedmarketing and legal schemedocuments will assist thosepurchasers who are new to theidea of fractional ownership.

Because, as I believe,fractionals are beginning totake off in Europe, it’simportant that contracts areproperly prepared andstructured to ensure thatpurchasers and developers areassured a positive experiencein this exciting new market.

JAMES EVELING, managing director ofEveling Legal & Advisory, is advisingan increasing number of purchasersof fractional properties at his boutiquelegal practice in south-west England.He shares his initial experiences inthis property sector.

FRACTIONALS FROM ALEGAL PERSPECTIVE

James Eveling

V

workV-Legal xp6-rb-JP:Layout 1 8/9/08 16:36 Page 2


Consumers and industry leaders are increasinglyrealising the importance of reducing the carbonfootprint and sustaining our environment.GAYLE GREEN takes a look at the eco-friendly initiatives of two resortdevelopers who are working toreduce the environmental impactof their operations.

QUOTE: WHEN WE BEGAN BUILDING, IN SOME COUNTRIES WE HAD TO ADAPT TO THEDIFFERENT ENVIRONMENTAL REGULATIONS...WE SOON REALISED THAT THESE ADAPTATIONSWERE ACTUALLY A VALUE OUR CLIENTS WERE DEMANDING. IVAR YUSTE

GREEN ISSUE

THERE was a time whentravelling abroad was a luxuryreserved only for the wealthy. Then thehospitality industry saw the emergenceof purpose-built resorts, low-costairlines and affordable cruises, all ofwhich made worldwide travel anoption for almost everyone.

Before long, the leisure and tourismtrade was booming, and hotels, apartmentblocks, timeshare resorts and rental villaswere springing up in every available tourismdestination around the world. Everyoneinvolved in the hospitality industry was enjoyingunprecedented growth. But, in hindsight, hadanyone considered the impact that buildingresorts and transporting tourists around the worldon such a scale might have on the environment?After all, a healthy and attractive environment isthe goose that lays the golden eggs for anybusiness associated to the tourism industry as awhole.

Today a very different world is emerging. It’sone in which corporate responsibility is takingpride of place on the business agenda andbeginning to force tourism companies to look athow they can contribute towards protecting theenvironment while at the same time expandingtheir business.

ENVIRONMENT AND BRAND GO HAND-IN-HANDOne company which appreciates this better than most is the Marsans Group, Spain’s largesttourism company, which owns Hotetur Hotels & Resorts.

At the top end of its market,Hotetur boasts the BlueBay brand embracingBlueBay Hotels & Resorts and the BlueBayVacation Club, currently comprising eight hotelsand resorts in Mexico, Cuba, the DominicanRepublic, the Canary Islands and Morocco. Manyof these upmarket properties are located inprotected coastal areas.

Ivar Yuste, managing director, corporatedevelopment for Hotetur, said developing touristdestinations in environmentally-protected areas iswhat the four- and five-star BlueBay brand hasbeen built on.

Yuste explained: “When we began building, insome countries we had to adapt to the differentenvironmental regulations in the way wedesigned and operated our resorts.

“We soon realised that these adaptations wereactually a value our clients were demanding, so itmade business sense as well as environmental

Ivar Yuste,managingdirector,corporatedevelopmentfor Hotetur.

workV-Green xp6-sa-rb-JP:Layout 1 8/9/08 16:33 Page 3

sense for us to embrace eco-friendly initiatives from thestart.”

For example, in Mexico BlueBay was required by law tobuild around protected plant species when constructing itsGrand Esmeralda Resort. The resort was designed toregulate the drainage of water so that, as well as reservingwater, it provides a biological corridor for the species offauna growing there.

The resort also uses biodegradable chemical productsthroughout its housekeeping operations to ensure itdoesn’t pollute or damage the environment. A biologicalsystem at its sewage treatment plant ensures all possiblewater from the process is treated and reused in the resort’sgarden watering system.

Another initiative involves children visiting GrandEsmeralda being encouraged to go on ecological walkswhich are designed to educate them, while having fun,about the importance of protecting the natural world.

Crucially, the resort uses an energy-saving systemwhereby magnetic switches will automatically cut thepower in rooms when it’s not needed. The air conditioningis regulated by sensors in sliding doors which respond towhether or not the guest is in the room.

For Yuste, planned expansion of BlueBay means more ofthe same eco-friendly concepts. The group is planninganother eight hotels and resorts over the next 18 months,two of which will be golf resorts in Spain.

At both golf resorts a special type of grass will be usedwhich can be irrigated by salt water.Yuste explains: “In theareas in which we’re developing there is a lot ofagricultural land which takes the priority for the availablewater, so we had to find an alternative to the use of freshwater for our thirsty golf courses.”

At all of its resorts BlueBay management policiesencourage guests to separate organic and non-organicrubbish, recycle paper, switch off lights and electricalappliances when not in use, use biodegradable sunscreens,reuse towels and refrain from dropping litter and cigaretteends.

In fact, to prove its commitment to leading the way inenvironmental protection, BlueBay has introduced its ownBlueBay Means Green strategy. The group is currently inthe process of certifying four of its existing eight resortsunder the Green Globe Programme, an external measurefor the tourism industry (see panel, top).

BE BOLD AND BRAVEBut BlueBay is not the only RCI-affiliated resort which iscommitted to protecting the environment.

In the UK, Russell Waters, general manager of theBarnsdale Country Club in Rutland, has introduced anumber of new recycling initiatives since joining theresort last September.

The Barnsdale development, an RCI Gold Crown resort,includes a 66-bedroom hotel and 49 lodges. Waters sayswhen he joined, the lodges had no facilities for recyclingtheir rubbish and when he approached the localauthorities to help, he got a limited response.

Not deterred, Waters employed a private company toprovide recycling bins on site. Each bin is easily accessiblebut has been strategically placed to blend in with thesurroundings so it doesn’t create an eyesore. Owners andtheir guests can now recycle paper, plastic bottles, glassand cardboard.

Spurred on by the success of the recycling bins, Watersgot to thinking about the amount of mineral water sold bythe resort each week.

He said: “I read an article which said three billionbottles of mineral water are drunk in Britain each year andof those, half a billion are transported from overseas.

“That means more than 33,000 tonnes of carbondioxide is emitted every year in transporting bottled waterin the UK alone.”

Waters calculated that Barnsdale supplied between 250and 400 plastic bottles of mineral water to its conferenceand event delegates every week. He decided to withdrawmineral water from functions and serve fresh tap waterinstead. If mineral water is requested it’s explained toguests why tap water is being suggested, but that mineralwater can be provided if essential.

It was a brave move which has paid off, as Watersexplained: “We have had nothing but overwhelmingsupport from our guests. We’ve even had letters from some saying ‘thank goodness someone has taken theinitiative’.”

Waters is positive about the future and intends tocontinue to find ways that Barnsdale can do its bit toprotect the environment.

He said: “Recycling is a way of life today. It’s oneveryone’s mind to help save the planet and the more wecan do through business, the better.”


THE GREEN GLOBE PROGRAMME

The Green Globe Programme is atravel and tourism benchmarkingand certification scheme whichprovides an environmentalmanagement framework toenable organisations to achievesustainability.

There are three levels to theprogramme: benchmarking(Bronze), certification (Silver) andthe right to use the logo (Gold).

BRONZE:To achieve Bronzestatus, anorganisation mustestablish asustainability policyand complete abenchmarkingassessment. Whenthis is achieved, it canapply for Silver status.

SILVER:To achieve Silver certification, anorganisation must:■ Comply with relevant legislationand policy requirements■ Implement an environmentaland socially sustainable approach■ Document its performanceoutcomes■ Communicate and consult withinterested parties.

GOLD:An organisation whichmaintains its Silvercertification for five or morecontinuous years will receivea Gold logo award.

For more information visit:www.ec3global.com/products-programs/green-globe

GREEN ISSUE

V

workV-Green xp6-sa-rb-JP 2/9/08 13:47 Page 4

ARussell Waters with some ofthe recycling bins at BarnsdaleCountry Club, which arecarefully hidden but accessibleto encourage guests to recycleas much as possible.

DGuests and owners atBarnsdale have been verypositive about themanagement’s recyclinginitiative.


CChildren visiting GrandEsmeralda are taken onwalks to educate them aboutprotecting the natural world.

BHotetur’s BlueBay grouphas developed many resortsin environmentally-protectedareas, and has introduced itsown Bluebay Means Greenstrategy. Pictured is theBlueBay Villas Doradas hotel,in Puerto Plata, DR.

workV-Green xp6-sa-rb-JP 2/9/08 14:39 Page 5

Every month hundreds of thousands ofpeople in the UK alone search on Google for

their dream holiday. It’s a fantastic sales portal andto use it effectively all you need is a good websiteand a working knowledge of how the Google searchengine works.

As well as listing the most relevant websites,Google also displays paid-for listings, using its pay-per-click business, Adwords.

Adwords is basically an auction – you pay for eachclick on your advert and the more you’re willing to payper click, the higher in the listing you appear.

It’s a simple concept but you need to understandAdwords to mount a successful campaign. Thereare a number of critical components, the main onesbeing your keywords (the words you want to bringyour advert up on screen), your bids (the amountyou’re willing to pay for each click), the quality ofyour adverts and your website.

Keywords – If you’re going to pay for visits toyour site you need to convert them into business.Just because lots of people are searching for‘package holidays in Spain’, it doesn’t mean youshould be bidding on it, as most searchers won’tclick on your advert and the ones that do won’t reallybe interested in buying a timeshare.

To get the best from search engine marketing,it’s important that searchers click on your advertbecause the clickthrough rate is used by Google toassess how relevant your advert is to searchers.Google rewards a high clickthrough rate by placingthe advert higher in the listing with a lower cost perclick. Those with a low clickthrough rate will end uppaying a lot more than their competitors for eachclick and potentially appearing below them in theresults!

Bids – You need to work out how much thesearchers clicking on your advert are worth to you.If you make £100 from each person that signs up,

and one per cent ofvisitors sign up, theneach visitor effectivelygenerates £1 ofrevenue. There’s nopoint in paying morethan this per click, in fact you should bid less thanthis to make any profit, though bid too low andnobody will even see your advert. The right balancemust be found.

Adverts – Adverts need to do four things. Firstly,they need to catch people’s attention andcapitalising each word, using eye-catching wordsand quoting prices will help. Secondly, they need topersuade people to clickthrough your advert ratherthan someone else’s, so highlight the advantagesand special features of your resort and services.Thirdly, you need to dissuade people who aren’treally interested by making clear exactly what you’reoffering, particularly if you’re bidding on a keywordthat’s only marginally relevant. Finally, your advertneeds to be relevant to the search query. If it is,Google will reward you with lower costs per clickand including the keyword in the title helps here.

Website – If your site is only converting one percent of visitors and your competitors are convertingtwice that, they can afford to spend twice as muchper visitor and still make the same profit. Putanother way, the better your site converts, the moreyou can afford to bid and so the higher up in thelistings your advert will appear giving you a biggerpiece of the pie.

Google Adwords offers a level playing field foreveryone – anyone can appear top of the results,regardless of the size of their business. But somecampaigns are more equal than others.Understanding how to make Adwords work for youcan put you ahead of your competitorsand contribute to profits generated online!


QUOTE: GOOGLE REWARDS A HIGH CLICKTHROUGH RATEBY PLACING THE ADVERT HIGHER IN THE LISTING WITHA LOWER COST PER CLICK. SHANE QUIGLEY

FINAL CALL

There’s a real buzz about online advertisingand we all think we can do it. But as SHANE QUIGLEY, director of EpiphanySolutions, explains, a little understanding ofthe process goes a long way to getting thebiggest bang for your buck.

BIO NOTEEpiphany Solutionsspecialises in search enginemarketing – a highlytargeted, flexible andinteractive online marketingtool. Shane Quigley, director,is responsible for newproduct development.

Quigley has more than 10 years’ experience withinthe technology and softwaresectors and has won andmanaged accounts withseveral multinationalcompanies, includingExperian, Bearings, AXA, 3 Mobile and HSBC. Hisexperience extends tohelping small UK-basedfirms expand into Europeand the US.

For more information tel:+44 (0)870 199 6382 or visitwww.epiphanysolutions.co.uk

ONLINE ADVERTISING –MAXIMISING RETURNS

‘‘

’’

workV-FinalCall xp6-saVERS6-rb-JP:Layout 1 8/9/08 16:31 Page 2

R&E R&E

Ultimate Luxury. Unlimited Opportunity.SM

The Registry Collection Rental and Exchange Programme is the leader in Luxury Exchange and Rental; servicing more than 20,000 exchange members at more than 130 resorts worldwide

and total management of 30,000 rental properties.

By partnering with The Registry Collection Rental and Exchange Programme your property will join a portfolio of elite accommodation that not only offers your customer luxurious holidays

around the world but also provides an opportunity to benefit from rental income.

The Registry Collection Rental and Exchange Programme - a unique opportunity that holds the key to unlocking your sales potential.

For more information call 0845 608 6117 or email [email protected]

your essential partner for fractional, whole ownership and luxury leisure real estate

The Registry Collection

Ventures ad 0908 AW.indd 1 5/9/08 16:08:39

october 2008

Documents

vacation industry

rci europereserves

group rci team

market outlook

diverseand resilient

thisyears ote business

advertising sales

strong source market