RCI Ventures Magazine North America and Canada Q3 2014

RCI VENTURES

T H E B U S I N E S S O F VAC AT I O N Q3 2014

T H E B U S I N E S S O F VA C AT I O N

A LEGACY RESTORED With support from industry leaders and each other, HOAs pioneer new paths to success

Q3 2014

ADVENTURES IN RESORT MANAGEMENT Behind the scenes with Bill Young, president and CEO of SPM Resorts

OPTIMIZE YOUR OUTREACH Five ways to supercharge your social communications strategy

A NEW VOICE FOR TIMESHARE Meet Peter Roth, ARDA’s VP of marketing and communications

Executive Dual Time Self-winding. Patented time zone quick setting.

Black ceramic bezel and 18 ct rose gold case.

Water-resistant to 100 m. Rubber band.

F O R A C ATA L O G , C A L L 5 6 1 - 9 8 8 - 8 6 0 0 O R E M A I L : U S A 1 1 4 @ U LY S S E - N A R D I N . C O M W W W . U LY S S E - N A R D I N . C O M

IN BR IEF

IN DEV ELOPMENT

06 By the Numbers The state of the industry

09 Events Calendar Industry events around the world

11 Travel Trends The destination wedding ­opportunity; Europe’s increasing numbers of Asian vacationers

12 Tuning In to Timeshare RCI goes on-air to spread the good word about vacation ownership

20 All Eyes on India Meet one of the world’s greatest pools of timeshare prospects INNOVATION

30 Technology & Marketing How to supercharge your social communications strategy RCI® eSchool; the RCI® Custom Incentives & Benefits Platform

34 Follow the Customer

14 Straight Shooter Bill Young, president and CEO, SPM Resorts

Condominium Management Services

47 RCI® Affiliated Resort News Recent RCI affiliated resorts and reports from the field

56 A Final Thought

ON THE COVER Preserving a legacy.

ON THIS PAGE Egypt’s Sharks Bay Oasis Resort & Residence, one of the latest additions to RCI’s network of affiliated resorts.

A new voice for timeshare

32 Industry Solutions

INSIGHT IN DEPTH

42 The Dream Team

Holiday Inn Club Vacations

38 Lakeside Charm Pend Oreille Shores Resort

Enjoy RCI Ventures® magazine on your iPad®* when you download the RCI Ventures® magazine app for iPad® free at the iTunes® App Store. * RCI Ventures magazine is an independent publication and has not been authorized, sponsored or otherwise approved by Apple Inc. iPad and iTunes are registered trademarks of Apple Inc.

16 Preserving a Legacy The movement to help HOAowned resorts prosper once again

Senior Vice President: Philip S. Brojan. Publisher: Brian Bruno. Associate Publisher: Emily Sadlock. Contributing Editor: Helen Foster. Advisory Board Chair: Fiona Downing.

Advisory Board: Jeff Parker, Kris Jamtaas, Kelly Deardorff, Eugenio Macouzet, Bob McGrath, Todd Menendez, Robert Stolt, Debbie Wunder.

Editor in Chief: Catharine Fleury. Managing Editor: Gaetano Pollice. Senior Editor: Bree Sposato. Editorial Assistant: Jessen O’Brien. Editorial Intern: Angela Huynh.

Copy Editors: Fred Kennedy, Amy Lynn Tonsits. Senior Art Director: Ash Oat. Junior Visual Designer: Jenna Grady. Photography Director: Danielle Lamp.

Photography Editor: Pamela A. Pasco. Assistant Photo Editors: Jenna Kaplan, Kasandra Torres. Senior Producer: Jessica Perrin. Account Director: Mitchell Wexler.

Account Supervisor: Shrivika Ramaswamy. Chief Executive Officer: Kirk Cheyfitz. Chief Creative Officer: Rob Rasmussen. Vice President, Narrative: Charles Coxe.

For all subscription and advertising queries, please contact rciventuresna@rci.com.

No part of this magazine may be reproduced without written permission from RCI. RCI Ventures® publishes opinions of many knowledgeable individuals.

These opinions are not a substitute for legal, accounting or other professional advice. The views and conclusions expressed in RCI Ventures® are those of the authors and are not necessarily those of RCI nor of its parent or affiliates. The information contained in this publication has been obtained from sources the proprietors believe to be correct. However, no legal liability can be accepted for any errors. RCI Ventures is a registered trademark of RCI, LLC. © RCI, LLC. All Rights Reserved. Printed in U.S.A. 9998 North Michigan Road, Carmel, IN 46032

2 Q3 2014

FPO

COVER: ISTVAN BANYAI; THIS PAGE: COURTESY OF SHARKS BAY OASIS RESORT & RESIDENCE

TA B L E O F C O N T E N T S

M E S S AG E F R O M R C I

Making the move from one-way communication to two-way conversations.

ONE THING ABOUT THE VACATION OWNERSHIP

industry I have always enjoyed is the diversity of people and companies within it. From individual entrepreneurs who had a dream and built a business from nothing to large branded corporations, there’s a panoply of personalities and points of view driving the industry forward, each with a unique something to offer our ever-diversifying owner base.

Homeowners’ associations have always been integral to this mix. As RCI celebrates its 40th anniversary, we’d like to honor the legacy resorts that pioneered the vacation ownership industry and that continue to enrich and expand the experiences it delivers to consumers today. On page 16 you’ll find a special report dedicated to HOA-owned resorts that illuminates their successes and explores the unique challenges they face. As more HOA boards and managers are discovering, they can overcome many of these challenges by sharing best practices and innovative solutions at networking events hosted by RCI, ARDA and other industry leaders.

Information exchange is a popular theme in this issue of RCI Ventures® magazine, and a critical topic for our industry. In the past five years we have witnessed a sea change in the way owners and members consume information. They no longer want to receive it; they want to talk about it. For our brands to grow and flourish today and in the future, we have to move from communicating to consumers to interacting with them. We have to think about the relationship with our customer as a conversation instead of a communication, and that conversation has to be able to happen on the customer’s terms—wherever, whenever and however they choose.

4 Q3 2014

ARDA’s consumer website, VacationBetter.org, was recently redesigned to inspire and facilitate such conversations. Peter Roth, ARDA’s new vice president of marketing and communications, talks about the revamped site in a Q&A on page 56 and offers tips for connecting to consumers in this exciting new landscape (my personal favorite: “They [consumers] want to be marketed with, not at”).

Meanwhile, resorts, developers and management companies are finding ways of their own to interact with consumers, from inviting prospects to share their opinions of timeshare in online surveys, as Condominium Management Services does (see “The Dream Team,” page 42), to hosting good old-fashioned owners’ meetings (Pend Oreille Shores Resort, profiled on page 38, holds one a week).

However we approach consumers, we have to keep the conversations informative, fresh and, above all, engaging.

We have to make our owners and members want to join us, or else they may not; the choice is theirs to make. Which is why we asked social media expert Jessica Gioglio to share her top strategies for bringing digital communications to life. As Gioglio points out in “Optimize Your Outreach” (page 30), personalized content, arresting visuals and human-interest stories are but a few of the ways we can capture consumers’ attention and spark the two-way conversations they crave.

Whenever I speak with RCI® subscribing members, I’m reminded of their deep commitment to the vacation ownership industry. In their minds they are not members of our companies; they are owners. Our customers expect to have a say in what we are doing and where we plan to go, and with good reason: They have made a lifetime investment in vacation ownership. And this, in my mind, creates an imperative for us to provide them with an opportunity to share feedback. We need to truly listen and truly talk. We can’t do everything our customers ask, but we can tell them why we make the decisions we do. If we don’t, we risk losing them. If we do, we can unleash an enormous amount of loyalty. And that, to me, is the greatest reward of all: inspiring our customers to become true champions of our brands.

Gordon Gurnik President, RCI

D I D YO U K N OW ?

RCI took home nine 2014 ARDA Awards in April, including the prestigious ACE Customer Service: Industry Partner Award.

Get the details on page 47.

PHOTO: IAN SPANIER

The Power of Co-creation

Anantara Vacation Club Phuket Mai Khao

Congratulations

on taking home this year’s top honor!

2014 ACE International Project of Excellence Award Winner

trcaffiliates.com The Registry Collection and related marks are registered trademarks and/or services marks in the United States and internationally. All rights reserved. ©2014 RCI, LLC. All rights reserved.

IN BR IEF

BY T H E N U M B E R S

TOTA L S A L E S VO LU M E * :

A Banner Year for Timeshare

$7.6 Billion (+11 % )

The timeshare industry kicked into serious growth mode in 2013.

That’s the main message of the ARDA International Foundation’s State of the Vacation Timeshare Industry: United States Study, 2014 edition. “Since the economic downturn we’ve seen green shoots here and there, but now we’re seeing true growth,” says ARDA president and CEO Howard Nusbaum. Based primarily on a survey of U.S. timeshare resorts, developers and management companies that was conducted by Ernst & Young LLP (EY), the study compares key industry metrics for 2013 with the same ones from 2012.

201

3

Here are three of the top findings.

$6

20 12

.5

$6 n

year of growth, signaling a steady recovery from the turbulent years of 2008 and 2009, when sales dropped because of the recession.

6 Q3 2014

* First generation or developer sales

)

than $700 million over 2012, or nearly 11 percent, the largest increase since 2006. It was the fourth consecutive

%

)

In 2013 total sales volume* increased more

1 (+

%

+1 n(

llio

n

lio

Bil

09

.3

Bi

llio

.4

Bi

11 20

$6

10 20

$6

20

Sales volume soared to new post-recession heights.

.9

Bi

llio

n

(+ 6

%

)

35

30

25

.6

L I O N T O TA L S A

$4 AV E R AG E S A L E S PRICE:

+9% 20

I N T E R VA L S P R I C E D BETWEEN $20,000 AND $29,999 ­ACCO U N T E D F O R MORE THAN HALF O F TOTA L S A L E S .

$18,720 15 2013

Average interval sales price climbed high.

The average price per interval jumped 9

percent from

2012 to 2013, an increase that “reflects strong performance among higher-end timeshare products and brands,” the study reports. It also signifies healthy overall growth for the industry.

Planned construction shot up.

Last year respondents reported that they planned to add

1,329 new units in 2014—an increase from the new units that were planned for 2013. “One of the things to watch in 2014,” the study concludes, “will be whether the growth and performance momentum of 2013 holds and translates into increased construction activity over the next several years.”

S

.1 B I L L I O N

$20,460

2012

LE

NEW UNITS PLANNED FOR 2014:

1,329

IN BR IEF

AV E R AG E S A L E S P R I C E ( K )

$7

BIL

RCI PRESENTER ®

A modern take on first impressions A cutting-edge touch screen sales tool that’s packed with the key information that can help you to close the sale. In a world where technology is growing at a faster rate than ever before, those that don’t keep pace can get left behind. Prospective owners love how the pitch is brought to life through inspiring, relevant content about vacation ownership with fun videos and interactive tools that can build credibility with your audience and enhance your sales presentation like never before.

years of challenging ourselves with the most important question–what’s next?

www.RCIAffiliates.com/Presenter

RCI and related marks are registered trademarks and/or service marks in the United States and internationally. All rights reserved. © 2014 RCI, LLC. All rights reserved. Printed in the U.S.A.

E V E N T S C A L E N DA R

What’s Happening AU G U S T

Conferences, seminars, expos, summits, workshops, exhibitions, forums, symposiums, conventions, events and meetings you should know about.

SEPTEMBER

O C TO B E R

Hong Kong, China.

IN BR IEF

AUGUST 29–31 Gauteng Getaway Show Johannesburg, South Africa getaway.co.za

PHOTOS: STUART MONK/SHUTTERSTOCK; LEUNGCHOPAN/SHUTTERSTOCK

London, England.

SEPTEMBER 8–10 ATHOC (Australian Timeshare and Holiday Ownership Council Limited) Annual Conference Denarau Island, Fiji athocconference.com.au SEPTEMBER 14–16 HICA (Hotel Investment Conference Africa) Johannesburg, South Africa hica.co.za SEPTEMBER 15–16 SAHIC (South American Hotel & Tourism Investment Conference) Quito, Ecuador sahic.com SEPTEMBER 18–20 RDO5 (Resort Development Organisation) London, England rdoconference.org SEPTEMBER 29–30 ARDA (American Resort Development Association) Southeast Regional Meeting Charleston, South Carolina, U.S.A. arda.org

OCTOBER 15–17 HICAP (Hotel Investment Conference Asia Pacific) Hong Kong, China hicapconference.com OCTOBER 20–22 RHIC (Russia & CIS Hotel Investment Conference) Moscow, Russia russia-cisconference.com OCTOBER 20–23 The Lodging Conference Phoenix, Arizona, U.S.A. lodgingconference.com OCTOBER 21–22 ARDA West Regional Meeting Denver, Colorado, U.S.A. arda.org OCTOBER 22–23 LASOS (Latin American Shared Ownership Summit) Panama City, Panama lasosummit.com/en

RCI VENTURES 9

RCI ® AFFILIATE APP FOR iPAD ® Keeping you one step ahead An industry first, RCI’s Affiliate app is a powerful point-of-sale tool, with over 12,000 downloads. Get quick access to sales materials, presentations, high-definition video content, details on RCI subscribing member benefits, and so much more. Customize your own profile with key content that works for your individual sales needs.

RCI® VACATION TRENDS • AFFILIATED RESORT DIRECTORY • HOTEL ACCOMMODATIONS CALCULATOR ENDLESS VACATION® MAGAZINE • RCI VENTURES® MAGAZINE • RCI PLATINUM® BENEFITS CALCULATOR RCI TV® • RESORT MANAGEMENT TOOLS • AND MUCH MORE...

Download the app today. www.RCIAffiliates.com/App

iPad is a registered trademark of Apple, Inc. RCI and related marks are registered trademarks and/or service marks in the United States and internationally. All rights reserved. © 2014 RCI, LLC. All rights reserved. Printed in the U.S.A.

T R AV E L T R E N D S

PHOTOS: LMFOTOGRAFIA/SHUTTERSTOCK; HARD ROCK HOTELS; COURTESY OF KARMA ROYAL GROUP

Timeshare resorts reap the benefits of making guests’ dreams come true.

Sixty-nine percent of Americans who are single, in a relationship or engaged would consider a destination wedding, according to Expedia’s 2014 American Altar Report. What’s more, 43 percent envision saying their “I do’s” on the beach, and popular vacation ownership regions, like Hawaii and the Caribbean, rank at the top of their destination wish lists.

As more timeshare companies are discovering, the destinationwedding business is a lucrative one to be in. Anantara Vacation Club

recently introduced a collection of love-inspired packages to tap into the growing market, and All-Inclusive Hard Rock Hotels’ wedding business is thriving—especially at its Cancún location, where weddings have increased 30 percent since last year.

Value is a critical draw, says Carilis Felipe, weddings department manager for the All-Inclusive Collection.

The All-Inclusive Hard Rock Hotels offerings include a complimentary wedding collection, wedding group benefits and a Limitless Resort Credit promotion. Having a team that can act quickly is also crucial, she says. “In the wed­ding business, the number one

IN BR IEF

Saying “I Do” to Destination Weddings BEACH BLISS From left: Newlyweds stroll the beach; a typical Hard Rock Hotels wedding ceremony setup.

complaint is response time. We have a dedicated sales team that responds to couples in less than 24 hours.”

Building a successful wedding program takes time and resources, but the payoff can be big. “I think the greatest benefit is room nights,” Felipe says. “Providing wedding services at our hotels enables us to keep group business consistent year after year.”

ON OUR RADAR

Couples on Vacation 92% of respondents to TripAdvisor’s 2014 U.S. Couples’ Getaway Survey said they would go on vacation with their partners in 2014, up from 78% in 2013.

East Moves West Rising demand by Asian timeshare owners for European vacations is a golden opportunity for developers.

In the two decades since John Spence founded the Karma Royal Group, he has witnessed what he calls a reverse-tourism trend: Whereas Asia was once a rising destination for Karma Royal’s European members, Europe is now a hot spot for the company’s members in Asia. “Budget airlines have opened up the world, the economy has gone nuts, and people now have disposable incomes and the ability to go to Europe,” he says.

In the past five years, RCI has seen a 60 percent increase in the number of Chinese subscribing members

traveling to Europe. Demand for European vacations among members in Southeast Asia is rising also. China, Indonesia and the Philippines will send the most Asian RCI members to Europe in the coming years, Damien Del Porto, director of marketing for RCI Asia Pacific, believes. “Many are going for the first time,” he says. “Timeshare’s particularly attractive because they can stay at a resort for an extended period, combining a relaxing holiday destination with sightseeing.”

Spence points to another opportunity for Europe: distressed inventory.

“A lot of resorts there are running at a loss,” he says. “You can pick up a property for probably 10 to 20 percent of its replacement value, then convert it for Asian clients.” It’s a strategy

D I D YO U K N OW ?

45% of Asian travelers reported that their mobile phone was the one item they could not Karma Royal Group’s AlpenClub resort, in Germany, a popular vacation spot for Asian timeshare owners.

travel without.

Source: Agoda.com’s Forgetful Traveler Survey.

that has worked well for Karma Royal Group. “We can provide the product, and we have the market­­ing channels,” Spence says. “It’s a win-win.”

RCI VENTURES 11

IN BR IEF

Tuning In to Timeshare RCI goes on-air to spread the good word about vacation ownership.

EARLIER THIS SUMMER, AMERICANS

across the country learned about vacation ownership while sipping their morning cup of coffee. The Lifetime network’s The Balancing Act, a weekday morning show dedicated to helping women manage their busy lives, invited RCI’s Fiona Downing, senior vice president of business development and operations, to talk about timeshare with co-host Julie Moran, formerly of Entertainment Tonight (her weekly segment, “ET One to One with Julie Moran,” was known for its high-profile celebrity interviews).

The show signified a major marketing moment for the vacation ownership industry. Since it reaches a significant population of affluent female decision makers—a key demo­­ graphic for timeshare—The Balancing Act is a powerful platform for educating current and future prospects about the benefits of vacation owner­­ship. It regularly outperforms competing programs on WE and OWN in the same time slot and helps viewers navigate the challenges of modern life.

Timeshare can also help them navigate those challenges, Downing explained to Moran. The segment opened with a discussion of vacation deprivation and how Americans’ increasingly busy lives make it difficult to plan a vacation, let alone take one.

More than 500 million vacation days go unused every year in the United States

12 Q3 2014

alone, according to Expedia’s 2013 Vacation Deprivation study. Timeshare makes sure people won’t fall into that trap, Downing said; what’s more, their lives will be the richer for it. The value of vacationing was a theme of the show: Not only does taking time off enable people to relax and recharge; it can also strengthen bonds with loved ones, relieve stress and anxiety and improve overall health.

Other talking points were common misperceptions of timeshare, such as the belief that owners must return to the same resort year after year, and the comforts and conveniences timeshare accommodations can offer that many traditional hotel rooms cannot.

Toward the end of the segment, Downing invited viewers to try out vacation ownership by booking a stay on EndlessVacationRentals.com—a site that is as useful to consumers as it is valuable to RCI affiliates. The heart of RCI’s Online Tour Generation program, EndlessVacationRentals.com enables affiliates to efficiently target online consumers with customized offers that meet their resorts’ unique tour-flow needs.

The timing of Downing’s Lifetime appearance was strategic: It aired in late June and again in early July, at the onset of the busy summer-vacation season.

“We wanted to prepare the general public to be more open-minded to timeshare should they find themselves

We’re working hard to spread the word about the value of timeshare so more consumers will be familiar with, and excited about, the product once they’re in a position to buy. Our end goal is to support affiliates’ sales teams and help increase close rates.

—PHIL BROJAN, senior vice president, global marketing, RCI

attending a sales presentation during their summer vacation,” Phil Brojan, senior vice president of global marketing at RCI, says. But ultimately, he says, the episode was conceived to build positive awareness of vacation ownership—a core objective of RCI. “We’re working hard to spread the word about the value of timeshare so more consumers will be familiar with, and excited about, the product once they’re in a position to buy. Our end goal is to support affiliates’ sales teams and help increase close rates.”

It’s a critical time for promoting awareness of vacation ownership,

IN BR IEF

ARDA president and CEO Howard Nusbaum points out. “During the economic downturn, our industry had to retrench and focus its sales efforts on the people we knew,” he says. “But suddenly we’re in a position to introduce new customers to our product. Educating the masses rather than staying parochial in our existing owners is more important today than ever before, because our future depends on introducing a new generation to timeshare.”

For its part, ARDA has been working to raise awareness through educational outreach. Earlier this year the organ­ ization relaunched its consumer-facing website, VacationBetter.org, to provide owners and prospects with useful information about the benefits of timeshare (for more on the new site, turn to page 56). ARDA also continues to create infographics, travel guides and educational resources for owners to incorporate into their outbound social-media communications. This past May, for example, it released

a three-page “Girlfriend Getaway Guide,” which included planning tips and destination ideas.

“To successfully use social media, we have to do more than just share the facts about timeshare,” ARDA Girlfriend vice president of marketing and Getaway communications Peter Roth says.

Guide “We have to turn them into stories 2014 that people will be interested in.”

The best stories of all, Nusbaum says, come from timeshare owners themselves. “Nobody has as much passion for timeshare or sells it as well as existing owners, and social media is a way for our industry to give them a megaphone.”

Whatever the channel—digital, print or even cable TV—the most important thing is to get people thinking about vacationing. “I don’t care if it’s cruising or it’s family How are you reunions or whatever,” Nusbaum helping to promote says. “If people are thinking and the industry? talking about the importance of Tell us at travel in their lives, that’s good RCIVentures@rci.com. for timeshare.”

PRIME TIME FOR TIMESHARE Above: Julie Moran (left) interviews RCI’s Fiona Downing about timeshare for an ­episode of The Balancing Act, which aired on Lifetime ­earlier this summer.

Left and below: ­Creative m ­ aterials from ARDA for raising public awareness of vacation ownership.

Before leaving on your exciting getaway with the girls, be sure to get together to decide where you want to go and how you want to spend your time. It’s important to agree on your vacation goals so that everyone comes back feeling refreshed and happy.

Discover the best way to get away with your girlfriends at VacationBetter.org, or keep reading for more tips!

E fects on L festyle • Beautiful resorts • Great locations • Flexible on schedules and travel requirements • Pre-paid, so there are no excuses to not take a vacation every year • Space for everyone, even extended family

E fects on Fam ly Memories

RCI VENTURES 13 3 out of 4 adults over 55 say they still have vivid memories of childhood vacations, even more so than school events or birthday celebrations.

55% of adults remember their childhood travels fondly and want to create similar memories for their kids.

Straight Shooter For Bill Young, president and CEO of SPM Resorts, the secrets of a successful career and a successful timeshare resort are one and the same: Be transparent.

With yourself, with your employees and, above all, with your owners.

B Y C AT H A R I N E F L E U R Y

IN DEPTH

V: Let’s start at the beginning.

When did you know that vacation ownership was for you?

B I L L YO U N G President and CEO, SPM Resorts

ONE TIMESHARE RESORT INCREASED

its vacation rental revenue from $40,000 to $292,000 in two years.

Another boosted its collection ratio 14.5 percent. Still another managed to turn a potentially negative situation (a multiyear construction project) into a positive experience for owners by posting regular updates on its Facebook page (660 likes, shares and comments so far). These are just a few of the successes SPM Resorts has bestowed on its clients in recent years—and all on the watch of president and CEO Bill Young. Since joining the full-service timeshare management company, 15 years ago, Young has helped increase the SPM port­folio from eight to 36 resorts and honed his skills as an expert custom-solutions craftsman. RCI Ventures ® magazine recently caught up with the industry veteran to learn about his rise to the top of a leading management firm and the key insights he’s gained along the way.

14 Q3 2014

BY: Working in the hotel industry, I was always aware of timeshare— including its reputation for sales back in the 1980s. But when companies such as Hilton, where I worked for a number of years, and Marriott ventured into vacation ownership, I felt they brought integrity to the mix and was inspired to follow their lead. I am so happy I did, because I have had a great career.

V: Why SPM Resorts? Tell us what drew you to the company.

BY: Through my work with Hilton, I had already cultivated relationships with SPM’s principal owners. I wanted to join the company because I saw the long-term relationships that had developed between SPM’s boards and its loyal employees, and I wanted to be a part of that.

V: You arrived at SPM Resorts as COO in 1999 and became president in 2001. Eleven years later you were appointed CEO, and today you’re a principal owner, too. That’s a pretty impressive track record.

BY: The last 15 years have been a tremendous experience. In my four-plus decades in the travel industry, two positions have defined my career above the rest, and this is certainly one of them.

V: And the other?

BY: When I was 22 I was promoted to general manager of a hotel on the island of Kauai.

V: Take us through a day on the job as president and CEO. What are your primary responsibilities?

BY: As SPM has grown from eight associations to the current 36, my role has shifted from day-to-day operations to more long-range planning and growth strategy. And it keeps evolving. Today I focus on continued growth through new business, cultivating board relationships and developing leadership among employees.

V: What are the core tenets of a successful management company?

BY: We actually have a document on our website that outlines the best practices of timeshare resort management, and it details the top 10 things a resort should be doing to stay healthy. Some of the most important functions we perform for the resorts we manage are improving collection processes, devising a plan for the future by building up reserves, and ensuring effective and efficient day-to-day operations. We have taken over many resorts that have needed help with collections and operations, and have been able to help them make great strides.

V: SPM has also assisted with a number of turnarounds. Tell us more about that side of your business.

BY: Through our established banking relationships, SPM has been fortunate to be appointed by receivers to oversee troubled properties. In each case SPM has successfully managed the property while protecting assets as the financial institution put together new investors.

PHOTOS: COURTESY OF SPM RESORTS(4)

BY: Not keeping owners informed about what is going on at the resort where they own. Transparency is a must: We always want our owners to have the facts so they can voice either their concern or their support.

For example, we just sent out to every owner at one resort we manage a comprehensive packet about a special assessment. This packet included all the financial details, the cost to the owner and the plans for the resort. Sending all the facts gives the owners an understanding of the scope of the project and the reasons for the decision to improve the property. We also use email, our private owners’ portal and social media to communicate with owners, answer their questions and share construction updates.

IN DEPTH

V: What’s the mistake you see resorts make most commonly?

V: SPM takes pride in being a “relationship-driven company.”

What’s your secret for building relationships that last?

BY: As I mentioned, transparency is key—and not just when it comes to owner relationships. At SPM, transparency is critical to our relationships with our boards and employees, too.

V: What other values inform your work at SPM? BY: We also believe that developing short- and long-term goals for proper maintenance and improvement, in addition to effective communications with boards and owners, creates an environment in which timeshare resorts can flourish.

V: Digital communication tools seem to have served SPM and its resorts especially well.

V: Where can you be found when you’re not at the office?

BY: Absolutely. I believe that one way our industry has grown and will continue to grow is through the integ­ ration of technology into every facet of management and the guest experience. From storing owner information to sharing video updates of renovation construction, SPM uses social media and technology to conduct our operations and connect to owners.

BY: I absolutely love my job and feel that the employees are an extension of my family, but sometimes I actually do take time for my own hobbies and interests! I love the game of golf and, of course, love spending time with my beautiful wife and children. The one thing that means the most to me outside of work and family is spending time with friends.

V: Looking back, what have been some of your proudest moments at SPM Resorts?

BY: I have had many over the years, but the thing that makes me proudest is not so much the individual moments but rather the maturity and growth of SPM over 15 years as a successful independent management company that is still competitive with all industry peers.

SPM BY THE SEA­ Clockwise from top left: Seawatch at Island Club, on Hilton Head Island, South Carolina; the Ocean Club on Smuggler’s Beach, in Yarmouth, Massachusetts; a master bedroom at Smuggler’s.

V: Looking forward, what does the future hold for you and SPM Resorts?

BY: For the next few years my focus will be to manage day-to-day operations, continue to grow the company and develop successors within SPM Resorts. We are going to invest in the leaders who will shape the growth of our company.

V: Any parting words of wisdom for the leaders of tomorrow?

BY: For me it all comes down to integrity. I would define my management style as hands-on with a firm belief in integrity at all levels. The most important lesson of my career is very simple, and I stand by this every day: Say what you mean, and mean what you say.

spmresorts.com RCI VENTURES 15

HOA-owned resorts are the pioneers of vacation ownership, yet some are struggling to survive.

With help from industry leaders—and each other— these legacy resorts can prosper once again.

EVERY TIME CINDY THOMAS a ­ ttends an industry-sponsored event for homeowners’ associations, she returns to Stoneridge Resort with a valuable network of contacts. “I walk away from those conferences knowing so many of my peers,” Thomas, who manages Stoneridge, says. “To be able to pick up the phone and talk to someone you have met at a conference is immensely rewarding and helpful.”

Stoneridge Resort has benefited from many such events in recent years. Industry leaders, such as RCI, ARDA and the Timeshare Board Members Association (TBMA), have developed a host of programs and resources to help boards and managers of homeowners’ associations expand their businesses and navigate the challenges of running legacy resorts.

“These HOAs are our industry’s original pioneers,” says Kris Jamtaas, senior vice president of affiliate part­ners and services at RCI. “Bringing greater awareness and support of their needs is one of our most important business obligations.”

Helping homeowners’ associations is not only the right thing to do but the

16 Q3 2014

smart thing, too, Howard Nusbaum, president and CEO of ARDA, says.

“If a resort stumbles and there’s a headline that says ‘Timeshare Resort Fails,’ that suppresses new sales for our brightest brands.”

Not all HOAs need help, of course.

As Nusbaum points out, some of the vacation ownership industry’s greatest successes are HOA-owned properties, including Stoneridge Resort, which has thrived in northern Idaho for 35 years. But industry-sponsored events can do as much for prospering resorts as for those that are struggling, as Thomas can attest. “I gain so much from being in attendance—networking, participating and sharing,” she says. “The RCI Lunch & Learn educational sessions are always entertaining and informative. I love ARDA’s events because they expose me to really big concepts. And the TBMA conference has been extremely beneficial.” (For more on RCI’s Lunch & Learn Tours and other supportive efforts, see “RCI Lends a Helping Hand,” on page 19.)

Since holding its inaugural meeting, in fall 2011, TBMA has been bringing HOA members, resort

managers and industry professionals together from across the country to network and share best practices.

Now a biannual event, the meetings are a “dynamic, highly interactive opportunity for our members to engage with industry professionals and with each other,” executive director Shep Altshuler says. “Resort delegates arrive eager to learn about solutions from industry experts and to exchange their own ideas for fixing the problems they share.”

Pains of aging There are some 1,540 timeshare resorts in the United States, and nearly 40 percent opened before 1996, according to the ARDA International Foundation’s State of the Vacation Timeshare Industry: United States Study, 2014 edition.

With age can come a dangerous downward spiral: The older a resort becomes, the more expensive it can be to maintain, which pushes assessment fees higher. This can lead to increased delinquencies and foreclosures, which puts further pressure on the active owner base to

S AV E T H E DAT E The next TBMA meeting will take place October 26–28, 2014, in San Diego, California. Visit tbmassoc.com for details.

ILLUSTRATIONS: STEPHANE MANEL; ISTVAN BANYAI

IN DEPTH

Preserving a Legacy

ABOUT THE PA R T I C I PA N T S Shep Altshuler Executive director, Timeshare Board Members Association (TBMA)

IN DEPTH

Altshuler is the publisher of TimeSharing ­ Today magazine and a longtime advocate for timeshare owners and HOAs. In 2009 the magazine received an email from an HOA board member that inspired him to help found TBMA. Kris Jamtaas Senior vice president, affiliate partners and services, RCI Jamtaas has more than 30 years of experience in the leisure and vacation industries. Prior to joining RCI in 2000, he worked for the Conrad Vacation Club, Costamex International and Fairfield Resorts. He is an active participant in ARDA and other local travel-related groups.

Kevin Mattoni Vice president, Cunningham Property Management Corporation Mattoni’s extensive marketing and banking background led him to join Cunningham Property Management Corporation in the late 1980s. Today the Sarasota, Florida–based firm manages seven resorts and serves more than 8,000 owners.

Howard Nusbaum President and CEO, ARDA Over the past 30 years, Nusbaum has held executive hotel positions in the private sector as well as executive positions in not-for-profit association management. He has served as president and CEO of ARDA since 2000, and is also on both the board of directors and the executive committee of the U.S. Travel Association.

Cindy Thomas Manager, Stoneridge Resort Thomas has worked at Stoneridge Resort since 1982. She became general manager in the early 1990s, when Stoneridge’s management company turned control of the resort over to the HOA.

18 Q3 2014

Bringing greater awareness and support of HOAs’ needs is one of our most important business obligations.

—KRIS JAMTAAS, senior vice president, affiliate partners and services, RCI

pay even higher fees—and even more delinquencies and foreclosures ensue.

Add to this the recent rec­ession and aging owners—many of whom can no longer travel and are looking for an exit strategy and/or falling prey to unscrupulous transfer companies— and failure seems all but certain.

But it doesn’t have to be. Consider the case of 33-year-old Palm Beach Resort & Beach Club, in Palm Beach, Florida. When its board hired Cunningham Property Management Corporation (CPMC), in 2007, the resort was in rough shape. “The projects-to-do list was more than six pages long,” says Kevin Mattoni, vice president of CPMC. “Budgets weren’t being met. Deferred maintenance was creating concerns. Unit furnishings were substandard. RCI comment cards were indicating problems.

Maintenance fee delinquency was approaching 40 percent.”

CPMC worked with the board to develop a step-by-step salvation strategy. The board had comm­ issioned an engineer’s report to identify necessary structural repairs and implemented its recommend­ ations. It took out a bank loan to refurbish interior furnishings.

“Although the loan made a relatively small increase in the maintenance fees, it was a better alternative than a special assessment,” Mattoni says.

Even more important, “owners would see improvement, regain faith in the property and continue to pay maintenance fees.” A new collection company was hired and new collect­ion procedures put in place.

Eventually, the board whittled its to-do list down to one page. The downward spiral had been broken.

Mattoni says Palm Beach Resort still faces challenges but has come a long way in seven years. The property has achieved RCI Silver Crown Resort® award designation and earns pos­itive TripAdvisor reviews. Rental guests return and send referrals. “Because of the refurbishment and overall condition of the resort, outside sales and marketing groups that have hundreds of resorts with plenty of inventory in Florida to consider are very interested in Palm Beach Resort,” Mattoni says. “A successful sales venture is the final piece in ensuring the long-term viability of the property.”

Sharing solutions HOAs have as much to learn from each other as from management companies and industry professionals.

When Cindy Thomas attends networking events, she’s happy to share Stoneridge Resort’s success tactics with her peers. The property owes its stability first and foremost to its board, which meets more than six times a year, has a strong manager and has been proactive from the start. “There are those who hold short meetings, where members are in and out in an hour, but that is not the dynamic of our board,” Thomas says. “ ‘Controlling our destiny’ is the board’s unofficial mantra.”

Among the board’s most recent successes was affiliating the Stoneridge rental program with a

PHOTO: THINKSTOCK

RCI LENDS A HELPING HAND As part of its ongoing investment in the vacation ownership industry’s legacy community, RCI has built a team dedicated to providing HOAs with the tools and services they need to succeed. “Our key objective is to reach out to every HOA and share what we have and what we know,” says Kris Jamtaas, senior vice president of affiliate partners and services at RCI. Here are some of the top ways RCI is helping association-run resorts achieve their business goals:

RCI® Affiliate Access Designed to help RCI affiliates increase operational efficiency and optimize their businesses, the RCI Affiliate Access Program provides award-winning customizable solutions exclusively to them. RCI continues to expand the program by incorporating more and more services from some of the industry’s top providers.

&Lea

Presented

RE

Lunch & Learn Tour RCI hosts day-long educational sessions around the country to promote networking and best-practice sharing. Geared to HOA boards of directors, resort management leadership and resort developers, the events also give resorts the chance to meet with RCI Affiliate Access Program partners.

2014

Lunch

IN DEPTH

major online travel agent. Since then rental income has increased 73 percent—almost doubled in four years. “Our board recognizes that there will always be pressure to keep assessment fees down, but it is their job to keep the resort healthy and financially strong,” Thomas says. “They employ the belief that value engineering is achieved through purchasing better quality, which lasts longer. The status quo is just not a good idea.”

As legacy resorts seek to attract the next generation of owners, innovative ideas are everything. An especially popular session at the TBMA meetings, Altshuler says, is a roundtable discussion during which board members and resort managers share creative solutions that have worked well for their properties— from promoting family reunions to working out special discounts at area attractions. But ultimately it’s the time TBMA sets aside for attendees to network with their peers and with industry professionals that benefits them most.

“Creating a B2B marketplace that allows people to network and find the right business partners is one of the best things our industry can do to help HOAs,” Nusbaum says. He adds that education and advocacy are also crucial. “Say you’re a small, sold-out resort and there’s a new government safety rule about the bleach you use in the washing machine—how do you address that? There are myriad resources these associations may not have that their larger industry partners can help build a conduit for.”

For Thomas, every industrysponsored event is an invaluable source of inspiration. “Implementing just one idea that comes out of these meetings more than pays for the cost of attending,” she says. It’s also a reminder of the industry’s support.

“The fact that our partners are there, recognizing that nonprofit owners’ associations have specific needs, is encouraging.”

G

IS

FIL

IAF

RC

T

RCI UPDATES • SPECIAL OFFERS

AFFILIATE ACCESS PROGRAM PARTNERS • PRIZE

{

Tuesday, April 15, 2014 • GATLINBURG, TN Tuesday, April 22, 2014 • PALM BEACH, FL Thursday, April 24, 2014 • FORT MYERS, FL Tuesday, May 13, 2014 • PALM SPRINGS, CA Thursday, May 15, 2014 • PACIFIC CITY, OR Tuesday, June 10, 2014 • PORTSMOUTH, NH Thursday, June 12, 2014 • CAPE COD, MA Wednesday, August 27, 2014 • OUTER BANKS, NC Tuesday, September 09, 2014 • PARK CITY, UT Thursday, September 11, 2014 • SOUTH LAKE TAHOE, N Tuesday, September 16, 2014 • DESTIN, FL

Strategic Sourcing and RCI Marketplace Strategic Sourcing leverages the combined

Tuesday, October 07, 2014 • MYRTLE BEACH, SC

purchasing power of 4,000-plus resorts to Thursday, October 09, 2014 • HILTON HEAD, SC negotiate significant discounts on high-quality TOUR SPONSORS: supplier programs. Affiliates can search and shop for these products and services on a convenient virtual-shopping platform, RCIMarketplace.com. ®

RCI and related marks are registered trademarks and/or service marks in the United States and internationally. All © 2014 RCI, LLC. All rights reserved. Printed in U.S.A.

140162RC HOA Ventures Ad.indd 1

RCI VENTURES 19

IN DEV ELOPMENT

Tourists take in the famed Taj Mahal’s marble facade, in the city of Agra.

20 Q3 2014

ALL E YES ON

It’s no secret that India’s middle class is rapidly expanding. But did you know how much they like to vacation?

Meet one of the world’s greatest pools of timeshare prospects.

B Y C AT H A R I N E F L E U R Y

IN DEV ELOPMENT

INDIA

IN DEV ELOPMENT

In the early 1990s, John Spence left Global Group, a European-based timeshare company, intending to start a resort business in the French Caribbean. But as he was getting ready to head west, he received an invitation to make a trip east: RCI was hosting a conference in India and asked Spence if he would like to speak about timeshare. “I had never been to India before, but I liked curry and was always fascinated by new places, so I thought, Yeah, I’ll go,” Spence recalls. “And I just fell in love with the place.”

So much so that he scrapped his Caribbean dream and called his team to India instead. “I just saw this middle-class client base that was emerging out of semi-poverty— you could clearly see it—and they were growing, growing, growing in economic impact,” he says. His group flew to Mumbai and traveled south to the beach-lined state of Goa, where they began working on their first resort. “It was vastly underfunded,” Spence says, “but the gods were with us and we managed to build a business, and off it went.”

That business soon became one of the fastest-growing vacation ownership companies in industry history.

Today Karma Royal Group has more than 55,000 owners and operates 21 resorts around the world, eight of which are in India. Spence expects to open many more there. “We’re extremely keen to grow in India,” he says. “Our goal is to get to 20 properties as soon as possible.”

He’s not the only one who’s keen.

As the Indian timeshare industry continues to grow—18 to 20 percent year on year—the country’s leading vacation ownership companies are plotting their next properties. “At the ground level we would like to expand our destination footprint and increase

22 Q3 2014

We’re extremely keen to grow in India. Our goal is to get to 20 properties as soon as possible.

—JOHN SPENCE, founder, chairman and CEO, Karma Royal Group

our inventory: We plan to add resorts in the coming years,” says Rohit Malik, chief sales officer of Mahindra Holidays & Resorts India Ltd., India’s largest vacation ownership brand (171,000 members and counting).

Sterling Holiday Resorts, one of India’s longest-running timeshare companies, is also eyeing untried locations. “We are evaluating new, unusual and more interesting destinations across both popular and relatively unknown locales in hill stations, beachside towns, wildlife sanctuaries and more,” managing director Ramesh Ramanathan says. “India has a lot to offer, from mountain and wellness destinations to riverside and coastal retreats, so we have a wide canvas to choose from.”

The RCI affiliates quoted in this article helped pave the way for vacation ownership in India.

INDIAN TIMESHARE OW N E R S :

Married with younger kids:

53% Married with grown-up kids:

29% Other:

18% Source: IMRB International

PRESENT MEETS PAST Clockwise from top: Sterling ­Holidays Terrace Greens, in Kerala; Club Mahindra Mashobra, in Himachal Pradesh; Karma Royal Group’s Royal Goan Beach Club at Haathi Mahal, in Goa. Opposite: Jaipur’s signature attraction, the 16thcentury Amber Fort, in Rajasthan.

Sterling Holiday Resorts Members: About 70,000 (most live in India) Resorts: 19 (all in India)

Club Mahindra Members: More than 170,000 (97 percent live in India) Resorts: 40 (36 in India)

Established in 1986, Sterling was one of the very first companies to educate Indian consumers about the benefits of vacation ownership. Earlier this year it announced a merger with Thomas Cook (India), India’s leading travel operator, a move that will not only enable Sterling to reach new destinations and markets but also boost the credibility of India’s timeshare industry at large.

Mahindra Holidays and Resorts India Limited launched Club Mahindra in 1996 to provide Indian consumers with a smart alternative to poorly planned vacations. By 2000 it had become India’s largest vacation ownership brand, a distinction it has maintained ever since. The brand’s high-quality properties and services have played an instrumental role in building a positive popular perception of vacation ownership.

Karma Royal Group Members: About 55,000 (approximately one third live in India) Resorts: 21 (eight in India) When John Spence founded Royal Resorts with his life savings in Goa, India, in 1993, he helped ­introduce ­India’s timeshare industry to Western-style resorts. In 2002 he launched Royal’s luxury sister brand, Karma Resorts, and a third brand recently joined Karma Royal Group: Chakra Resorts, geared to a younger, affluent consumer.

RCI VENTURES 21

IN DEV ELOPMENT

It’s an exciting time for travel and tourism in India—especially the domestic market, which has been growing along with the country’s rapidly expanding middle class. Domestic tourist visits increased nearly 20 percent from 2011 to 2012, from about 865 million to more than 1 billion, according to figures from India’s Ministry of Tourism. (International arrivals increased 4.3 percent, to 6.58 million.)

Though the economy is slowing—­ India’s real GDP growth slipped to 4.7 percent in 2013, the lowest point in a decade—projected tourism growth remains steady. Spending on domestic travel will grow 8.2 percent in 2014 and rise 6.7 percent per year through 2024, the World Travel & Tourism Council’s Economic Impact Report 2014 for India predicts.

Among the surge of Indian travelers is a sizable population of young families with rising disposable income and the desire to take more-frequent vacations—top prospects for vacation ownership. “Our members are primarily middle- to upper-middle-class Indian parents with school-age children or teenagers who seek to go on regular holidays,” Ramanathan says.

“There is a noticeable trend toward

MEET THE PIONEERS

We would like to expand our destination footprint and increase our inventory: We plan to add resorts in the coming years.

IN DEV ELOPMENT

—ROHIT MALIK, chief sales officer, Mahindra Holidays & Resorts India Ltd.

Capturing the Taj Mahal on camera.

multiple shorter holidays versus the earlier practice of an annual holiday.”

Club Mahindra, whose owner base is also dominated by young families, has witnessed a similar shift. “In the last few years members have begun taking short trips in addition to their annual long vacations,” says Deepali Naair, chief marketing officer, Mahindra Holidays & Resorts India Ltd. Not only are these families hungry for more vacations, but they also want to explore a wider variety of destinations. Seventy-four percent of Indian timeshare owners prefer to visit places they haven’t been before, and the ability to exchange is attractive to them, research conducted by IMRB International on behalf of RCI India found. For most of these owners, India’s vast palette of attractions— mountains, beaches and rivers; temples, palaces and forts; quaint colonial towns; bustling cities—more than suffices. Seventy percent of Indian RCI subscribing members vacation in their home country, Pali Badwal, managing director of RCI India, estimates.

Still, a growing number of owners are venturing abroad. Sterling Holiday Resorts is looking to expand to neighboring countries, and Club Mahindra now has international resorts in Austria, Dubai, Bangkok and Kuala Lumpur. “In 2013 we added significant international inventory to our portfolio,” Malik says. “This was largely on account of the increasing popularity of certain destinations that were easily accessible from India, a popularity led by affordable air-travel options offered by low-cost carriers for reaching these destinations.” Dubai and Bangkok have become “immensely popular” with Club Mahindra members, he adds.

Outbound travel among Karma Royal Group’s Indian owners is also picking up, Spence says, especially travel to the company’s European properties (for more on the increasing numbers of Asian timeshare visitors to Europe,

SOME OF T H E TO P REASONS INDIANS PURCHASE TIMESHARE: Economical vacations

24% Like the resort

22% Accommodation quality

14% Opportunity to own/access a premium resort product

8% Source: IMRB International

A F G H A N I S TA N

5 4

Estimates of the size of India’s middle class vary widely, but one thing is certain: The emerging client base that caught John Spence’s eye more than two decades ago is only getting bigger.

India’s middle class will “grow steadily

PA K I S TA N

NEW DELHI

N E PA L

3

ARABIAN SEA

6

MUMBAI

T I M E S H A R E H OT ZO N E S Mountains, beaches, wildlife parks, forts, palaces, bazaars: India’s diversity of vacation destinations and experiences is staggering. Vacation ownership resorts operate across the country, but these six states are the top timeshare-market performers, according to a 2012 report

by Cushman & Wakefield and RCI, Timeshare in India: Establishing Perspectives and Busting Myths.

1. Goa Best known for its sunny beaches, Goa has a large English-speaking population and a sound infrastructure. South Goa is popular with older people—especially, in winter, European retirees— while north Goa attracts a younger crowd.

2. Kerala Branded “God’s own country,” Kerala has fabled backwaters that are a hit with eco-tourists. Other attractions are beaches (the state has about 375 miles of Arabian Sea coast) and Guruvayoor’s Sree Krishna Temple, known for its healing powers.

3. Rajasthan Lonely Planet calls India’s largest state “the must-see state of this must-see country.”

Rajasthan is rich in varied historic, cultural and environmental attractions but is perhaps most famous for its palaces and forts.

1 B AY O F B E N G A L

2

SRI LANKA

4. Uttarakhand From 2008 to 2011, the number of RCI affiliated resorts in this state grew from six to 17. More than half are in Mussoorie, a colonial hilltop town (“hill station”), and in the Ramnagar and Corbett National Park region. Uttarakhand is one of India’s leading timeshare states, according to Timeshare in India.

5. Himachal Pradesh Adventure tourists, honeymooners, leisure travelers and pilgrims are drawn to Himachal Pradesh’s spectacular Himalayan landscapes.

Tourist arrivals have increased dramatically in recent years, and the state government actively promotes tourism.

6. Maharashtra More than 66 million domestic tourists arrived in Maharashtra in 2012, making it the fifth-mostvisited state in the country. Signature attractions include beaches, a scenic hill station, cave temples and, of course, the capital city, Mumbai.

RCI VENTURES 25

IN DEV ELOPMENT

turn to Travel Trends, on page 11).

Indian timeshare owners’ appetite for more and varied vacations corresponds to a larger shift in the country’s leisure-traveler profile.

“The Indian traveler has evolved over the years and become more confident and experimental,” says Deep Kalra, chairman and group CEO of MakeMyTrip.com, one of the leading online travel companies in India.

“Earlier, holidaying was restricted to staple destinations or traveling to the family home. With greater exposure and increased purchasing power, however, international travel now features prominently on the wish list of Indian travelers. They are taking more-frequent short-duration holidays, and their longer weekend breaks also include Southeast Asian destinations, such as Thailand and Hong Kong.”

Whether vacationing at home or abroad, Indian travelers increasingly seek out unique vacation experiences. “The Internet has empowered the new-age Indian traveler, who has become savvier and is looking for newer experiences that provide talk value,” Kalra says. “More and more Indian travelers are looking out for activities that enrich their lives and experiences that connect them to the people and culture of the destination.” This desire for experiential travel presents an opportunity for India’s vacation ownership operators; in addition to expanding their resort networks, both Club Mahindra and Sterling Holiday Resorts are exploring ways to create new experiences for members. “We’re studying these trends closely and gearing up to fulfill the aspirations of our members,” Ramanathan says.

IN DEV ELOPMENT

HOMES AWAY FROM HOME Clockwise: Sterling Holidays’ Kodai By the Lake resort; Club Mahindra Ashtamudi resort; Club Mahindra Varca Beach, Goa resort.

Opposite: Hitting the beach in Goa.

26 Q3 2014

PHOTOS, OPENING SPREAD: SERG ZASTAVKIN/SHUTTERSTOCK; AZAT1976/SHUTTERSTOCK; SECOND SPREAD: THINKSTOCK; COURTESY OF STERLING HOLIDAY RESORTS; CLUB MAHINDRA; KARMA ROYAL GROUP; THIRD SPREAD: ISTOCKPHOTO; THIS SPREAD: COURTESY OF STERLING HOLIDAY RESORTS; CLUB MAHINDRA(2); SAIKO3P/SHUTTERSTOCK

Indian families are now beginning to see regular holidays as a necessity for personal relaxation and family well-being.

—RAMESH RAMANATHAN, managing director, Sterling Holiday Resorts

vacation ownership concept,” he says.

“Fortunately, Indian families are now beginning to see regular holidays as a necessity for personal relaxation and family well-being. As Indian families get habituated to holidays and understand the economic benefits of a vacation ownership membership plan, the industry will see accelerated penetration and growth.”

Another key to connecting to prospects: Western amenities. An IMRB International survey of Indian timeshare owners conducted for RCI India found extremely high car ownership (93 percent) and a high incidence of household goods such as plasma TVs, laptops, computers and double-door refrigerators. “What people want in India is to buy Western products,” Spence says. “They have the BMW, they have the gold credit card, they stay in the nice hotels. They want what the West has to offer, and they want it now.”

Since RCI began operating in India, in 1991, its network of affiliated resorts

IN DEV ELOPMENT

over the next decade, reaching 200 million by 2020,” according to a 2013 Ernst & Young report, Hitting the Sweet Spot: The Growth of the Middle Class in Emerging Markets, and then “really accelerate, reaching 475 million people by 2030.” Considering the size of India’s current timeshare owner base—there have been about 350,000 timeshare sales to date—the opportunities for growth are astronomical.

“In my mind,” RCI’s Badwal says, “the real growth potential for vacation ownership lies in two areas: the growing number of consumers with disposable income and the aspiration to travel, and the large number of destinations within India that have yet to be leveraged.” He believes that young families will continue to be the industry’s most promising prospects but adds that Indians aged 50 and over are also consumers to watch.

They too have travel aspirations and, unlike busy young families, have the time as well as the cash with which to pursue them.

Young or old, Indian vacationers care about value. The same IMRB International research that found that exchange opportunities motivate Indians to purchase timeshare uncovered another interesting insight: Twenty-four percent of owners cited “economical vacations” as a reason to buy a timeshare. When it comes to timeshare, “pure cost-effectiveness” resonates with Indian consumers above all else, says Akshay Kulkarni, Cushman & Wakefield’s regional director of hospitality for South and Southeast Asia and an author of the joint C&W-RCI report Timeshare in India: Establishing Perspectives and Busting Myths.

To engage prospects, the industry must invest more in communicating both the economic and the emotional benefits of vacation ownership, Sterling Holiday Resorts’ Ramanathan says. “There is still a lot of work to be done in gaining consumer understanding and acceptance of the

R C I ­I N D I A AT A GLANCE RCI affiliates:

67 RCI® affiliated resorts: More than

135 RCI subscribing members: More than

125k

has grown from about 10 properties to more than 135—35 of which came online in just the past year. “It’s hard to predict how many more resorts will affiliate in the next 10 years, but given the recent past we expect the number to grow significantly,” Badwal says.

Investment in vacation ownership is trending up, he adds—“We have seen increased activity in terms of fresh investments and acquisitions in recent years”—and bigger names are taking interest in the industry (perhaps the biggest to date is Thomas Cook, which recently merged with Sterling Holiday Resorts).

“I believed in India’s vacation ownership market when I first visited the country, 21 years ago,” Spence says. “But I would be lying if I said I knew just how quickly it would grow or how huge it could become.”

RCI VENTURES 27

Maximize what RCI can do for you.

RCIAffiliates.com/Innovation

*Based on TripAdvisor ratings of affiliated resorts as of 1/13/14. Excludes luxury vacation exchange programs. †2.5 times calculation based on TripAdvisor data provided to RCI. RCI and related marks are registered trademarks and/or service marks in the United States and internationally. Š 2014 RCI, LLC. All rights reserved. Printed in the U.S.A.

TECHNOLOGY & MARKETING

Optimize Your Outreach How to supercharge your social communications strategy.

BY SE AN CU N NING HAM

A smart social media strategy can have a big impact on your bottom line. How big? Adobe’s Q4 2013 Social Intelligence Report found that Facebook, Pinterest, Twitter and Tumblr drove record revenue per visit (RPV) for retailers in the fourth quarter of 2013. (Tumblr and Pinterest fueled the greatest RPV growth, with year-on-year increases of 340 percent and 244 percent, respectively.)

“The consumer reigns supreme, and their attention is the ultimate commodity,” says Jessica Gioglio, co-author of The Power of Visual Storytelling: How to Use Visuals, Videos, and Social Media to Market Your Brand. To help you make—and earn—the most out of social media, we asked Gioglio for

INNOVATION

tips on how brands can amplify their outbound communications. Here are her top five:

Embrace visual storytelling.

They say a picture is worth a thousand words. Believe it or not, that figure is low. “Humans process visuals 60,000 times faster than text,” notes Gioglio, citing a striking bit of research from her book. Combine this with the fact that content has a limited window to catch our attention— users typically leave Web pages within 10 to 20 seconds, a paper from Microsoft Research suggests—and the winning strategy becomes clear: Let a strong visual be your hook.

“Consumers are evolving to have shorter attention spans,” Gioglio says. “We just keep scrolling down until something catches our attention.” When creating content, ask yourself, Would this make me stop? If the answer is no, it’s unlikely to connect with anyone else, either.

Customize your content.

“There’s a saying: ‘Personalize, don’t spray,’ ” Gioglio says.

“It’s easy to say ‘Let’s do this across all channels.’ Don’t.

Each channel has unique characteristics.” Instead of pushing out the same message across every channel, tailor your content to serve your audience in different ways. For example, you may use Facebook to address frequently asked questions about a resort (ideally, visually—what better way to answer “Do you have a pool?” than by posting a beautiful image of one?) and Twitter to build excitement about an upcoming event (you could tweet a

30 Q3 2014

Vine of your staff decorating said pool for a holiday bash).

Then take advantage of food’s popularity on Instagram—a recent bit of research by Gioglio found over seven times more usages of the hashtag #Food than #Travel—and show the delicious meals you served poolside at the party. Finally, you may share user-generated content of your guests enjoying the pool party on Tumblr.

Make your brand useful.

“Every resort knows the major questions travelers ask,” Gioglio says citing frequently asked questions like “What is your cancellation policy?” and “How do I get there?”

However, she notes many properties fail to utilize this knowledge in a productive way. She urges resorts to think about how they can answer these questions visually, and to explore the best channels for addressing them. But don’t stop there: In addition to anticipating your customers’ needs, you have to pay attention to their feedback. “The biggest mistake: not listening,” Gioglio cautions.

Show your human side.

Has your resort had the same bellhop, who knows every owner by name, for 20 years? Or did some of your owners recently salute your staff for going above and beyond to make their beloved grandmother’s birthday special? Or maybe you just take the time to respond to reviews online?

I N S I D E R C I ’ S E N G AG E M E N TDRIVEN OUTBOUNDCO M M U N I C AT I O N S A P P R OAC H RCI kicked off 2014 with a fresh social media campaign to grow engagement and drive positive chatter about vacation ownership. In the first quarter alone, RCI grew its Facebook fan base by 16 percent and saw a 136 percent increase in post engagement. Today RCI continues to leverage new content practices to inspire, educate and serve your owners and give a positive voice to the timeshare industry at large. On the newly revamped RCI® Facebook page you’ll find: Member spotlights: Authentic quotes from RCI subscribing members about memorable RCI vacations and experiences “Wanderlust Wednesdays” posts: ­Inspirational imagery that highlights the travel experiences available to RCI subscribing members and reinforces the message that travel options are vast; these posts are among the page’s highest-performing in terms of engagement Clean, shareable infographics: Educational visuals that express the benefits of RCI membership in a simple, easy-to-understand tone

These are all opportunities to connect with your customers on a personal level, which can boost engagement and even inspire them to share your content. “What can you do to make your brand feel more like a friend than a corporate entity?” Gioglio asks. “Look for those amazing moments that you can maximize.”

Jessica Gioglio is a co-author of The Power of Visual Storytelling: How to Use Visuals, Videos, and Social Media to

ILLUSTRATION: VIKTOR KOEN

Market Your Brand.

Live in the moment.

“Social media captures everyday moments,” Gioglio says.

“Your business should think the same way.” That’s not to say you shouldn’t plan ahead—indeed, you should map out the entire year, planning for special events and other key items on the calendar. Just be prepared to make a change if something better comes along. “Plan for what you can, but be nimble in the moment,” Gioglio advises. Mine your feeds constantly, and act quickly when you find something.

If, say, a snowstorm suddenly sandbags the Northeast, you may post a quick pic of your property’s glorious Caribbean beach. The key is to act fast. Because, as Gioglio notes, “Relevancy has a deadline.”

A recognized thought leader, Gioglio has also held social media and communications roles at Dunkin’ Donuts, TripAdvisor, State Street and Comcast.

Striking photography: Breathtaking visuals that are both aspirational and accessible, inspiring the audience to imagine themselves in the featured destinations

INNOVATION

Resort highlights: Destination spotlights showcase affiliated resorts with alluring visuals and warm, inviting text

IN DUSTRY SOLUTIONS

Learning to Succeed

INNOVATION

The RCI® eSchool online learning platform gets a powerful reboot.

RCI recently unveiled a series of enhancements of RCI eSchool, a free online educational platform that provides a convenient alternative to in-person training and is offered exclusively to RCI affiliated resorts.

Built on the industry-leading SuccessFactors learning management system, the updated platform gives affiliates even-more-robust tools for furthering employees’ professional development.

“RCI has always been a firm believer in staff-training programs,” says Fiona Downing, senior vice president of business development and operations at RCI. “We’re constantly looking for innovative ways to help affiliates train new and existing employees without breaking the bank. These upgrades will make it that much easier for employees to achieve their learning goals and for affiliates to maintain the high standards of education that are critical in today’s competitive marketplace.”

Key features of the new and improved RCI eSchool include: • Custom view: Users can create a custom view that best suits their learning styles and preferences.

• Course credits: All RCI eSchool courses are now accredited by the ARDA International Foundation (AIF) for credits toward premier professional designations within the vacation ownership industry, the associate resort professional (ARP) and registered resort professional (RRP).

• Fast and easy search capabilities: Users can search the course catalog by keyword, course name or subject.

32 Q3 2014

1

3

THE USER EXPERIENCE A clean, easy-to-navigate home screen welcomes visitors to the new RCI eSchool platform. From here they can:

2

4

1. Browse a list of all available classes alphabetically by subject and name 2. View and run reports and customize their page settings

4

3. Search for classes by keyword, subject and class name

When a user completes a course, it is placed here so they have a record of their accomplishments and can print certificates of completion at any time.

4. Access their learning history All RCI eSchool courses are accredited by the ARDA International Foundation (AIF).

• Tracking and reporting: Users can track their progress, learning hours and history and print professional certificates of completion.

• New courses: RCI recently released a new mobile course, “Quick Guide to RCI Platinum® Benefits,” and will continue to produce new content throughout the year.

Affiliates stand to benefit from RCI eSchool as much as their employees do. The free platform helps cut costs by reducing in-person-training and travel expenses and limiting the productivity lost because of time

away from work. It also drives associate engagement: Staff training is linked to increased morale and proficiency—both of which can result in financial gains.

Positive reviews are already coming in. “RCI eSchool is easy to use, and our employees love printing their certificates of course completion at the end of a session,” says Karla Davis, general manager at Plantation Resort, in Myrtle Beach, South Carolina. “If you need help with training, look to the RCI eSchool as a cost-effective way to make your employees more knowledgeable about your product!”

TO L E A R N MORE Contact your RCI Account Executive for more information about how RCI eSchool can help your resort.

IN DUSTRY SOLUTIONS

Benefits for Everyone Create the optimal incentive program for you and your prospects with the new, flexible and fully customizable RCI® Custom Incentives & Benefits Platform. to feature and present them in a way that reinforces the consistency and credibility of affiliates’ sales efforts.

Featured benefits can be as diverse as the affiliates’ product offerings and the prospects themselves, and can leverage special product offerings from RCI and/or third-party vendors.

Affiliates can further customize these benefits to meet specific goals, such as prioritizing resort return visits and creating a referral program.

The end result is a sleek one-stop benefits shop with a first-rate user experience. Enhanced search features make it easy for prospects to use their benefits, while a personalized dashboard helps them keep track of their benefits in real time via a single display screen (pictured below). And

Prospects are greeted with an array of exciting travel and leisure benefits. The easyto-use interface makes it simple for prospects to stay engaged and get the most out of their purchase—and potentially come back to buy more.

because the platform is Web based, associates can activate customers’ accounts right there at the sales table, granting them immediate access to their privileges.

“The Custom Incentives & Benefits Platform is the latest product of RCI’s ongoing investment in cutting-edge technologies that benefit affiliate resorts and their sales prospects,” Downing says. “It brings everything together into one sophisticated online experience: Prospects can activate, shop and redeem value-added benefits all in one place with just a few clicks.”

The happier the prospects, the easier they are to convert. Whether used as a purchase incentive or an exit program, the Custom Incentives & Benefits Platform can help affiliates improve their closing rates and increase revenue while driving down operational costs. In other words, everybody benefits.

INNOVATION

RCI has developed an innovative sales incentive tool to support its affiliates: the RCI Custom Incentives & Benefits Platform. A low-cost, flexible, white-label solution, the Web-based platform empowers affiliates to merchandise an array of travel and leisure benefits with broad appeal and several sales applications, from tour premiums and first-day incentives to trial and exit programs.

“When we set out to build this new platform, our primary objective was flexibility,” says Fiona Downing, senior vice president of business develop­ ment and operations at RCI. “Today we’re thrilled to offer a solution that is completely customizable to the unique goals, needs and budgets of each and every affiliate.”

The Custom Incentives & Benefits Platform enables affiliates to design their own marketing and incentive programs, letting them pick and choose which benefits they would like

The benefits dashboard makes it easy for prospects to keep track of the benefits they’ve earned and when they are due to expire, as well as the benefits they’ve already used.

RCI VENTURES 33

H O L I DAY I N N C L U B VAC AT I O N S

Follow the Customer With a new property in Virginia and another on Florida’s space coast, Holiday Inn Club Vacations® is expanding its family of resorts according to where members want to vacation next.

INSIGHT

BY J E SSE N O ’ B RIE N

The new Holiday Inn Club Vacations Williamsburg Resort, near Virginia’s historic Colonial Williamsburg district.

34 Q3 2014

DON HARRILL CEO, Orange Lake Resorts

MEMBERS ASKED, AND HOLIDAY INN CLUB VACATIONS® LISTENED:

In April, the family-vacation brand unveiled its first property in Virginia, near the historic Colonial Williamsburg district. “Our decision to establish a presence in Williamsburg was based on the interests of our members,” says Don Harrill, CEO of Orange Lake Resorts, which sells the Holiday Inn Club vacation ownership product. “We survey them to learn where they want to vacation, which helps inform many of our expansion destinations.”

Like all Holiday Inn Club Vacations properties, the new Williamsburg Resort offers spacious one- and two-bedroom villas. Many public areas are also being upgraded, including, when complete, a miniature golf course; three pools; bowling lanes and sports courts; an arcade; and a kids’ playground. The property’s upscale lodging options also reflect member demand: Twenty-four of its 130 units are part of the Signature Collection portfolio, the brand’s top luxury product. And Colonial Williamsburg is only minutes away.

The Williamsburg property is one of the latest additions to the brand’s rapidly expanding network. Since IHG® (InterContinental Hotels Group) and Orange Lake Resorts launched Holiday Inn Club Vacations, in late 2008, its portfolio has swelled from four to 12 properties—and shows no signs of stopping. The company plans to continue expanding west of the Mississippi (today it has two western resorts, in Las Vegas and Galveston, Texas), adding popular national destinations and regional vacation spots closer to members’ homes.

2

9

11 3 6

7

1

10

12

8 5

INSIGHT

4

T H E H O L I DAY I N N C LU B VAC AT I O N S R E S O R T P O R T F O L I O 1. Orange Lake Resort 2. Ascutney Mountain Resort 3. Smoky Mountain Resort 4. Lake Geneva Resort 5. Sunset Cove Resort 6. South Beach Resort 7. Bay Point Resort

8. Panama City Beach Resort 9. Desert Club Resort 10. Galveston Beach Resort 11. Williamsburg Resort 12. Cape Canaveral Beach Resort

RCI VENTURES 35

INSIGHT

“In addition to looking at all the obvious options where many families like to vacation,” Harrill says, “we also seek destinations suggested by our current owners. New locations with beaches, water activities, snow skiing, theme parks and unique cultural activities are currently being explored.”

RCI Ventures ® magazine recently sat down with Harrill to learn more about the newest Holiday Inn Club Vacations resorts, the brand’s customer-driven growth strategy and where it will take members next.

V: Holiday Inn Club Vacations Williamsburg Resort is obviously a boon for members; they asked for it. How is it good for business, too?

DH: Not only is the resort an easy drive-to destination for many of our members, it’s also located in a popular tourist destination.

Additionally, nearby Washington, D.C., and Philadelphia are both prime markets that attract active vacationers who fit our consumer profile, so it makes strategic sense to

36 Q3 2014

be there. We expect it to provide great opportunities to introduce our growing brand to new consumers.

V: As Holiday Inn Club Vacations ventures into new source markets, do you expect your member profile to change?

DH: Historically, a significant segment of Holiday Inn Club members have been middle-aged and retired couples. In recent years our member base has increasingly diversified to represent a cross section of the population. This trend is projected to continue as we expand our family-friendly destination offerings.

V: With such a diverse membership, how do you prioritize where to go next?

DH: While our members’ vacation habits vary overall, clear preferences emerge. We make sure to grow our resort network into the destin­ations they desire, such as the three beachside resorts we’ve added over the last couple of years. As for our two

EAST TO WEST From top left: Holiday Inn Club Vacations Smoky Mountain Resort, in ­Tennessee; a Signature ­Collection Reserve kitchen at Holiday Inn Club Vacations Desert Club Resort, in Las Vegas. Opposite: One of the Holiday Inn Club Vacations Desert Club Resort’s Signature Collection Reserve bedrooms.

largest resorts, in Orlando and Las Vegas, these are obviously in two important travel destinations for any growing vacation ownership company. With popular theme parks and attractions nearby that are always adding new things, it invites return visits and high resort utilization.

V: Clearly, knowing your members is essential to your growth strategy. Are there any other components?

DH: I truly believe that our employees are our greatest asset. We have a tremendous group of people who are passionate about our resorts. They work hard to provide great vacation experiences for owners, Club members and guests. We still have team members and maintain long-standing values from the earliest days of our company. We also place great value on what employees have to say, surveying them annually and making improvements based on their feedback.

V: Holiday Inn Club Vacations now has five sales centers, in Las

DH: Our company has a great story to tell and follows a specific script.

It ensures a clear and accurate presentation of who we are and the inherent value of our product. This is supported by sales displays that are designed around five key steps and are enhanced with video modules and vibrant imagery. In our Las Vegas sales center, we also incorporate RCI® TV as part of the vacation exchange step.

V: Who are your most promising prospects?

DH: They stem directly from our strategic marketing alliance with IHG, with which we share a customer profile. This provides us with access to more than 77 million loyal IHG® Rewards Club members for our marketing and rental efforts. In the end it’s the vacation experience you provide that matters the most. This

has proven itself over 32 years, as our owners and members continue to rate their ownerships very high. They purchase more products and refer their friends and families based on years of positive experiences.

V: What kinds of programs have you implemented to attract these prospects and keep existing members happy?

DH: Holiday Inn Club Vacations is also always adding to its portfolio of products, resorts and experiences.

Besides staying within the resort network, members can book any of their travel needs—including air, car, cruises and rail, and tours and adventure packages—through the Club. Our members can use Club Points to travel to any of nearly 4,500 resorts through RCI, and they can also convert their Club Points to IHG® Rewards Points, giving them access to all hotels in the IHG system.

Virtually any vacation destination, method of travel or type of vacation experience can be attained through the Club. It’s all about providing our members more opportunities to

create memorable vacation experiences.

Various programs enhance ownership for our existing members and also help attract prospects. For instance, personal concierge agents work with our prestige- and elite-level members individually to help them get the most out of their memberships.

Plus, our MAXtime program has proven very popular by providing Club members the opportunity to book last-minute vacations at significant discounts.

V: What’s next for Holiday Inn Club Vacations?

DH: Expect to see continued growth and expansion as we offer more member flexibility, with a focus on expanding west. We’re presently looking at Arizona, California, Colorado and Hawaii—and on May 1 we announced the addition of the Cape Canaveral Beach Resort, on the east coast of Florida. It’s an exciting time to be part of our vacation family.

INSIGHT

PHOTOS: COURTESY OF ORANGE LAKE RESORTS STAFF PHOTOGRAPHERS(5)

Vegas; Gatlinburg, Tennessee; Myrtle Beach, South Carolina; Williamsburg, Virginia; and Orlando. What can you tell us about your sales strategy?

holidayinnclub.com RCI VENTURES 37

PEND OREILLE SHORES RESORT

Lakeside Charm Pend Oreille Shores Resort wins owners’ hearts with a smart financial strategy, a town-hall management style and a staff who are hard to beat.

INSIGHT

BY J E SSE N O ’ B RIE N

Pend Oreille Shores Resort sits on Lake Pend Oreille, in Hope, Idaho.

LISA DERR General manager, Pend Oreille Shores Resort

Taking care of owners Pend Oreille Shores was the first major development in Hope, Idaho, a tiny lakefront community in the northeast corner of the state. Major is a relative term: The resort has just 50 timeshare units, all one- and two-bedroom condominiums. Owners come for the spectacular setting—on the banks of glacier-carved Lake Pend Oreille, beneath the soaring Cabinet Mountains—but the resort’s intimate, home-

RCI VENTURES 39

INSIGHT

IN ITS 31-YEAR HISTORY, Pend Oreille Shores Resort has asked owners for a special assessment just once: $150 per interval to buy land for the resort’s drain fields. The project has saved thousands of dollars in sewage-disposal fees over the years and, as a bonus, provided guests with a convenient overflow-parking area.

Keeping owners’ costs down has always been a priority for the Pend Oreille Shores board of managers. “The board believes in the ‘Quality is economy’ concept and holds the resort accountable to owners for every maintenance-fee dollar spent,” general manager Lisa Derr says. Maintenance fees are low—almost $200 below average—yet the resort still manages to make significant improvements every year. In the past two years alone, Pend Oreille Shores Resort has replaced owners’ kitchen countertops, upgraded their TVs, purchased new sleeper sofas and recliners for all units, resurfaced and retiled the indoor pool and installed a new indoor spa—all without a special assessment. How? “Planning ahead—in some cases up to 20 years ahead,” Derr says.

This low-cost, high-return ethic isn’t lost on owners. “We often hear ‘We appreciate being able to see where our maintenance-fee dollars are being spent’ and ‘We always look forward to the new upgrades each year,’” Derr says. The industry has taken note too: Pend Oreille Shores has earned the RCI Gold Crown Resort® Award each year since the program’s inception, in 1992.

VA L U E -A D D S PEND OREILLE SHORES RESORT

Pend Oreille Shores Resort enhances the owner experience with many free services and amenities, including: • Access to a wide range of household items, from coffee grinders and food processors to playpens and high chairs • Boat moorage and trailer storage • Linen exchange • Group exercise classes at the resort’s on-site athletic club

LAKE PEND OREILLE

BOISE

INSIGHT

I DA H O

away-from-home vibe is also a draw.

“As a fixed-unit, fixed-week, deeded resort, we’ve had the pleasure of developing relationships with our owners and watching their children and grandchildren grow up,” Derr says. “Our original owners are in the sunset time of their lives. Many of them have ‘retired’ from traveling and now come here, to their home resort, every year. Summer is a time for family reunions, so we have a steady line of family members taking over ownership of their parents’ or grandparents’ intervals.”

For those owners who choose not to pass their intervals down, Pend Oreille Shores offers other solutions: low-cost deed backs and in-house resale assistance. “From the beginning the board has supported the idea of an easy deed-back program

40 Q3 2014

because it is another means of serving our owners and reducing the cost and negative emotions that inevitably come with the foreclosure process when an owner can no longer pay maintenance fees,” Derr says. What’s more, she says, affordable deed backs strengthen resales “because people don’t have to worry about getting involved in something they can’t eventually get out of without a hassle or big financial burden.”

Positive reinforcement Every time a guest expresses their satisfaction with the service at Pend Oreille Shores, verbally or in writing, the entire staff hears about it. “We ask our employees to pass along compliments with as much consistency and enthusiasm as any complaint or suggestion,” Derr says.

ON THE WATER Above: Pend Oreille Shores’ lakefront perch. Opposite, from top: Guest patios; serene Lake Pend Oreille; room for everyone to eat.

“Hearing directly from guests how much they are appreciated motivates our team to continue to look for ways to make everyone’s stay more enjoyable.”

This sharing policy is one of many ways that Pend Oreille Shores cultivates a positive work environment.

“We hire ‘attitude first’ because a positive, honest, kind foundation— with a good sense of humor thrown in—is vital to making the entire atmosphere at Pend Oreille Shores a place that feels good,” Derr says. “And we require that the staff treat each other with as much courtesy, kindness and respect as they do the guests— you can tell when you walk into a room full of people who genuinely enjoy each other and their job!”

Not surprisingly, turnover at Pend Oreille Shores is extremely low.

The average length of employment

Town-hall management Derr believes that the people at Pend Oreille Shores—staff and guests—are its greatest resource. “My management style is very participative,” she says.

“Sometimes to the extreme!” All employees are asked to give opinions on resort matters: housekeeping weighs in on espresso drinks, baristas comment on unit decor. Decisions are based wholly on an idea’s merit, a philosophy that recently led to the maintenance department designing the hats in the resort’s gift shop.

“Respecting the fact that each person brings to the table different experiences and perspectives results in wonderful ideas from some of the most surprising sources, and it makes staff, owners and guests feel that they contribute to the overall success of the resort,” Derr says.

Pend Oreille Shores solicits owners’ opinions by holding weekly meetings (open to all guests, exchangers and renters) and asking owners for their thoughts in newsletters. No matter is too small to invite additional input on it. When a recent newsletter asked owners what they thought about low-flow toilets, a number of owners called Derr in response, and one even invited her to check out the new low-flow toilet at his home, about an hour from the resort.

“What we want most for our owners and guests at Pend Oreille Shores is to come to a quiet, relaxing, clean and comfortable resort that is staffed with people who genuinely care about them,” Derr says. “We want our owners to feel involved and know that their opinion matters and that we take their vacation memories very seriously.”

www.posresort.com

PEND OREILLE S H O R E S AT A GLANCE Opened in 1983 Four-season resort One- and two-bedroom timeshare c­ ondominiums RCI Gold Crown Resort® Award designation

INSIGHT

PHOTOS, OPENER: JEFFREY T. KREULEN/SHUTTERSTOCK; COURTESY OF PEND OREILLE SHORES RESORT; THIS SPREAD: COURTESY OF PEND OREILLE SHORES RESORT(4)

among the resort’s supervisory personnel is 17 years, while the rest of the staff averages 10. “Our board is incredibly supportive of the staff and understands how important they are to the overall success of the resort,” Derr says.

INSIGHT

The scenic coast of Destin, Florida, home to two CMS resorts.

C O N D O M I N I U M M A N AG E M E N T S E R V I C E S

The Dream Team For Condominium Management Services, lasting relationships—with owners, employees and resort personnel—are the ultimate measure of success.

BY J E SSE N O ’ B RIE N

K AY B E C K M AY E President, Condominium Management Services, Inc.

IN DESTIN, FLORIDA, THERE’S AN OCEANSIDE RETREAT that sits

From vision to reality The inspiration for CMS’s intimate approach to resort management stems from a partnership almost as old as CMS: the friendship between Maye and Bob Windham, the original developer of HBR and a member of the resorts’ boards of directors. “Windham has stayed active with HBR because he cares about the people who bought into the timeshare concept and trust him to ensure the future of their purchase,” Maye says. “He has provided his invaluable expertise and experience and has been a mentor to me, teaching me the importance of customer service to last a lifetime.”

CMS’s greatest success stories often begin with the same phrase from Windham: “I was in the shower this morning.” Inspiration typically strikes him there, and his next move is to share his idea with Maye. No matter how outrageous or seemingly impossible the scheme—like the time Windham wanted to replace the small kitchen appliances at Destin Phase I with ones of regular size despite the space constraints—Maye finds a way to make it happen.

“We have a long-standing joke about his vision and my ability to make things work based on his vision,” Maye says. “This is what has made our partnership so successful.”

One of Windham’s most important visions was the development of Destin Phase II, Destin Phase I’s luxurious next-door neighbor, which has just 20 units—all with three bedrooms and two bathrooms.

RCI VENTURES 43

INSIGHT

on 500 feet of sugar-white sand. Part of the Holiday Beach Resort (HBR) family, it has one of the largest beachfronts in the area and is Destin’s only timeshare resort with direct access to the Gulf of Mexico. But what really makes Destin Phase I, as it’s called, a standout is its owners: Many have been coming to the resort since it opened, in 1981, and continue to vacation there year after year.

“They would rather spend time with the other owners they’ve befriended over the last 30-plus years than explore new destinations,” says Kay Beck Maye, president of Condominium Management Services, Inc. (CMS), the company that manages Destin Phase I. “These owners’ kids have grown up together, and now those kids are bringing children of their own, creating bonds that strengthen from one generation to the next.”

Like the properties it manages, CMS is built on lasting relationships. It oversees just four resorts, including Destin Phase I—all are Holiday Beach Resorts and are nearly sold out— and employs a tight-knit team of 10. Turnover is low. “CMS is proud to have seasoned personnel who are dedicated to the success of the company,” Maye says. “We also have longevity in our resort personnel. We have a maintenance person at Destin Phase I who has been with us for 15 years. He is 86 years old and is one of the hardest, most dependable workers I have ever seen.”

The resort opened in 2002 and signified a major milestone not only for CMS and HBR but for the vacation ownership industry at large: It became the first property to affiliate with RCI as an RCI Points® resort. “We are very proud of that fact,” Maye says.

INSIGHT

Staying in touch Amid the resort descriptions and photos posted on the CMS website, HolidayBeachResort.com, visitors will find a short survey about time­share. “It’s a way for us to keep in touch with how the public perceives the timeshare ‘tour’ and the concept of timeshare in general,” Maye says. It’s also a way for CMS to connect with prospective owners, many of who describe high-pressure tours they have experienced in the past. “We believe that by allowing them to express how they feel, it will make them feel they are being heard,” Maye says. “Sometimes that is all anyone really wants—to know someone listened.”

CMS has proven an exceptionally good listener. Sales personnel are prohibited from using strong-arm tactics, and the company embraces an opt-in marketing philosophy.

Maye says the product often sells

itself because guests enjoy their stay so much. Or because they drop by an information session on how to get the most out of an RCI® subscribing membership—CMS hosts weekly RCI Q&A events at its Destin resorts— and feel inspired to join. The focus of these sessions is education, not sales—and the impact is dramatic.

The program is widely attended by owners and exchange guests, and some drive in just to attend.

The timeshare survey and educational sessions are just a few of the ways CMS keeps tabs on owners’ needs and perceptions. Maye and her staff also study guest comment cards and RCI exchanger comments on a monthly basis, and Maye personally responds to every letter sent by an owner or guest. “As the president of the management company, I feel very strongly that if someone has a concern, it deserves a response from the one person who has the ultimate responsibility to address that concern,” she says. “This also ensures that I am completely informed of concerns that are raised by owners and guests.”

Generations of happiness Effective customer service is about listening and responding, but it’s also

BEACH TIME Above: A guest living room at Soundside Holiday Beach Resort, in Pensacola, Florida.

Below: ­Destin Phase I. Opposite, from top: Inside Destin Phase I; Destin Phase II; one of seven buildings that comprise Soundside Holiday Beach Resort.

critical to anticipate guests’ future needs. “The association’s needs are changing more rapidly now than they have in the past 30 years,” Maye says.

“We rely heavily on our guests to provide us with insight into the types of amenities they would like to have.”

Fortunately, when you know your customers, they know you, too. They are happy to tell you what they want, and how thrilled they are to be members. The proof lies in a story that repeats itself regularly at HBR and happened again recently.

“Windham was walking through the Destin resort’s parking lot, and an owner stopped him—everyone knows Windham—to tell him a story,” Maye recalls. The owner said that when he inherited his unit from his deceased father, a longtime owner who had been known by all, he had continued the family tradition by bringing his own son to the resort.

And when that son grew up, he bought a week of his own and started bringing his son. “Standing in the parking lot, those three generations told Windham how much they loved being a part of the HBR family.”

holidaybeachresort.com

THE CMS PORTFOLIO

1 3

2

1. Holiday Beach Resort Phase I Destin, Florida 2. Holiday Beach Resort Phase II Destin, Florida 3. Soundside Holiday Beach Resort Pensacola Beach, Florida 4. Royal Holiday Beach Resort Biloxi, Mississippi

A B R I E F H I S TO RY OF CONDOMINIUM M A N AG E M E N T S E R V I C E S • 1981: Founded as part of the Windham Company under the name Interval Management of America, Inc. • 1988: Bought from Windham by then vice president of mortgage loans Kay Beck Maye, who changes the name to Condominium Management Services • 1995: Hurricane Opal destroys most of Destin Phase I. The board lets the owners decide if they want to rebuild or sell the property—95 percent of owners vote to rebuild • 2002: Maye and Windham open Destin Phase II, the first RCI Points® affiliated resort

INSIGHT

PHOTOS, OPENING SPREAD: THINKSTOCK; COURTESY OF CONDOMINIUM MANAGEMENT SERVICES; THIS SPREAD: O’KEELEY MEDIA(5)

4

RCI VENTURES 45

ADVERTISEMENT SECTION

V E N T U R E P L AC E

SPECIAL OFFERS TO HELP GROW YOUR BUSINESS AND ENHANCE YOUR PROPERTIES INVESTMENT FUND DIVESTING

Real Estate Offering

YOUR LISTING HERE!

COSTA RICA

Hotel/Resort Property For Sale

C O S TA RICA

• 528 acres—undeveloped • Guanacaste, Costa Rica •N orthwest Costa Rica—dubbed the Gold Coast •L ocated between the tourist towns of Tamarindo and Flamingo •O n the Pacific Ocean overlooking Brasilito Bay • I ncludes 600 feet of beach frontage and ocean views

Want to reach some of the most influential decision makers in the resort development and management industries?

Advertise in this special section of RCI Ventures® magazine!

•P lanned as a resort village to include hotel, golf course, retail shops and residential housing—significant design work already completed by Michael Graves & Associates

GUANACASTE

•4 0 miles from Liberia International Airport (the provincial capital)

Fractional listings available.

Flamingo

YOUR AD COULD BE HERE!

Liberia

PROPERTY Tamarindo

PROPERTY VIEW

Closing date for Q1 2015 issue: November 1, 2014

For more information: 908-519-2348 www.AzuleraCostaRica.com

DEVELOPERS AND MANAGEMENT COMPANIES ADVERTISING GROWTH OPPORTUNITIES TO EACH OTHER For more information and rates, contact: Emily Sadlock • Associate Publisher • 973-753-7368 • Emily.Sadlock@RCI.com

R C I ® A F F I L I AT E D R E S O R T N E W S

Meliá Hotels International to Make Its NYC Debut Meliá Hotels International will open its first New York City property, INNSIDE Manhattan, in 2016. Built from the ground up, the 20-story, 313-room building will cater to leisure and business travelers and signifies a major step in Meliá’s global growth strategy. The company now operates hotels in 40 countries and plans to open additional properties in other North American gateway cities, such as Miami and Los Angeles.

Margaritaville Vacation Club® Resort Coming to St. Thomas Construction has begun on St. Thomas’s first Margaritaville Vacation Club resort. Wyndham Vacation Ownership and Margaritaville Hospitality Group are redeveloping the former Grand Beach Palace Resort—on the northeast side of St. Thomas in the U.S. Virgin Islands—into Wyndham St. Thomas, a Margaritaville Vacation Club resort, and expect to welcome the property’s first guests in 2015.

Sales are already under way.

RCI Scores Nine 2014 ARDA Awards RCI won nine 2014 ARDA Awards in April, including the coveted ACE Customer Service: Industry Partner Award. “We are ecstatic to once again take home the ACE Customer Service Award,” said Gordon Gurnik, president of RCI. “Customer satisfaction is our number one priority.” RCI’s other wins included two more ACE Awards: Spirit of Hospitality and Volunteer of the Year.

SPECIAL OCCASIONS From left: Madison Square Park, near the future INNSIDE Manhattan; Margaritaville Holdings CEO John Cohlan, Wyndham Vacation Ownership president and CEO Franz Hanning and Jimmy Buffett; Tara Bergeron, manager of business development for RCI and recipient of the ACE Spirit of Hospitality Award, with Holiday Systems International CEO Craig Morganson.

Do you have news to share?

Email it to rciventuresna@rci.com.

RC I V ENT U R E S 47

INSIGHT

PHOTOS: DAVID RALITA; SHUTTERSTOCK; LARZ LARSEN; CHRISTIE’S PHOTOGRAPHIC STUDIOS

INNSIDE Madrid Génova, in ­Madrid. In 2016 Meliá Hotels International will ­expand the hotel brand to New York City.

TIMESHARE ONLINE LISTENING CENTER

By becoming part of the conversation, you are helping to shape it. Find out what more than 450 resorts in 16 countries who are leveraging RCI’s Timeshare Online Listening Center already know – tracking online sentiment is helping to transform the vacation ownership industry.

Let us help you take control of your online brand.

17

%

TOLC clients score

in positive sentiment than the timeshare industry average.

over

145

customized reports generated monthly

On average,

19,800 mentions manually reviewed each month

Timeshare Online Listening Center LATIN AMERICA

Timeshare Online Listening Center NORTH AMERICA

years of challenging ourselves with the most important question… what’s next?

RCIAffiliates.com

Based on Timeshare Online Listening Center (TOLC) data on social media mentions from 1/1/13 – 12/31/13. The average percentage of positive mentions versus all mentions (excluding neutral mentions) for all TOLC clients was 17% higher than the corresponding percentage of mentions for “timeshare.”

RCI and related marks are registered trademarks and/or service marks in the United States and internationally. © 2014 RCI, LLC. All rights reserved. Printed in the U.S.A.

higher

higher in positive sentiment

RCI Weeks® program Blue Suites Hotel Skopelos, Greece Eagles Resort at Sugarbush Waitsfield, Vermont, U.S.A. Fontana Hot Spring Leisure Parks Angeles, Philippines Golden Sands Island Residence Club Golden Bay L/O Mellieha, Malta Gran Casa Sayula Hotel Galeria Spa Sayula, Jalisco, Mexico The Grove Kerala, India Hotel La Bohème Royal Bogotá, Colombia

Hotel Posada Bereshit Punta del Este, Maldonado, Uruguay Inagua Resort & Village Canning, Argentina Laguna Resort Residence Caldas Novas, Brazil Living Asia Resort & Spa Senggigi, Indonesia

Ventanas Hotel & Residences Cabo San Lucas, Mexico Xiangshan International Yacht Club Xiamen, China

NEW HORIZONS Clockwise from top: The Grove, in Kerala, India; Hotel La Bohème Royal, in Bogotà, Colombia; Skopelos Holidays Hotel & Spa, in Skopelos, Greece.

RCI Points® program Floresta Golf Views Vila do Bispo, Portugal

INSIGHT

PHOTOS: SIJO ABRAHAM; HOTEL LA BOHEME ROYAL; SKOPELOS HOLIDAYS HOTEL & SPA

R E C E N T R C I ® A F F I L I AT E D R E S O R T S *

Pipa Privilege Tibau do Sul, Brazil Rigas Hotel Skopelos, Greece

The Registry Collection® program

Sharks Bay Oasis Resort & Residence South Sinai, Egypt

Gwel an Mor Cornwall, England

Skopelos Holidays Hotel & Spa Skopelos, Greece

*D ue to space limitations and other considerations, this list might not include all resorts that have recently affiliated with RCI.

RCI VENTURES 49

PRODUCTS MAY NOT BE AVAILABLE IN ALL REGIONS

Simmons® Hospitality Group pricing for RCI Affiliated Resorts queen size Beautyrest® Recharge® Sutherland™ Plush mattress sets from only $300*

*All products and services are manufactured and/or provided solely by Simmons® Hospitality Bedding and not by RCI, its parent and/or affiliates.

Neither RCI nor its parent or affiliates are responsible for the accuracy or completeness of any statements made in this advertisement, the content of this advertisement (including the text representations and illustrations) or any material on a website to which the advertisement provides a link or a reference. Please refer to the applicable brand specifications for your property prior to purchasing products.

MAKE ROOM FOR

THE BEST

GIRLSSM

THE WOLVERINE

TRUE BLOOD®

VEEP®

GAME OF THRONES® FAST & FURIOUS 6

WE’RE THE MILLERS

Give your guests the ultimate in entertainment!

Visit homeboxoffice.com/bulkmarkets for incentives and more.

©2014 Home Box Office, Inc. All rights reserved. HBO® and related channels and service marks are the property of Home Box Office, Inc. The Wolverine MARVEL TM & ©2013 MARVEL & Subs.

Connect.

More than just a telephone.

M Series telephones keep your guests connected to stream sound, place and receive calls over their own cell network, charge phones and tablets, and access the Internet via a built-in Wi-Fi access point. Call +1.719.368.6544, write info@teledex.com, or visit www.teledex.com.

Accept no substitutes. Š2014 Cetis, Inc. Product specifications and descriptions in this document subject to change without notice. Cetis™, Teledex are trademarks or registered trademarks of Cetis, Inc.

PRODUCTS MAY NOT BE AVAILABLE IN ALL REGIONS

MORE THAN

CERTIFIED

Master Hotel Supplier Professionals

INDUSTRY-LEADING SUPPORT As one of the industry’s largest MRO, OS&E, and FF&E suppliers, we can help you exceed your guests’ expectations. Our Certified Master Hotel Supplier Professionals will provide the product assistance, brand expertise, and solutions you require. And with our fast, free delivery, the products you need are always on hand.

Trust HD Supply to deliver what you need, when you need it.

Visit hdsupplysolutions.com for more information.

© 2014 HDS IP Holding, LLC. All Rights Reserved.

ADV 14-9189

UNPARALLELED SALES & SERVICE

YOU CAN TRUST Expertise in laundry, housekeeping and food safety procedures.

Proactive service, sales and handson support.

Ready to serve you 24 hours a day, 7 days a week, 365 days a year.

Our sales and service team will help optimize your operations, and minimize energy and water costs, while maintaining a higher level of clean for a higher level of guest satisfaction.

Your Ecolab representative is your personal resource to ensuring best-in-class clean. We take care of you.

So you can take care of your guests.

Our emergency service coverage is available around the clock.

Call 1.800.35.CLEAN or visit www.ecolab.com.

370 Wabasha Street N St. Paul, MN 55102 www.ecolab.com 1 800 35 CLEAN Š2014 Ecolab USA Inc. All rights reserved.

guest T HE

guestsupply.com

guest

experience

A superior guest experience is at the core of all successful resorts. For more than three decades, Sysco Guest Supply has been committed to helping RCI affiliates maximize that experience by offering an extensive selection of products that exceeds even the most demanding expectations.

And, we combine that with an exceptional buying experience for our customers through quick and easy ordering, attentive sales support, and unparalleled customer service. To learn more, contact your Sysco Guest Supply Territory Manager or call 800-772-7676.

All products and services are manufactured and/or provided solely by Sysco Guest Supply and not by RCI, its parent and/or affiliates. Neither RCI nor its parent or affiliates are responsible for the accuracy or completeness of any statements made in this advertisement, the content of this advertisement (including the text, representations and illustrations) or any material on a website to which the advertisement provides a link or a reference.

A FINAL THOUGHT

A New Voice for Timeshare Meet Peter Roth, ARDA’s new vice president of marketing and communications. Since he and his team helped revamp the organization’s consumer website, VacationBetter.org, lapsed time spent on the site has shot up and bounce rates have dropped dramatically.

How’d he do it? RCI Ventures® magazine paid him a call to find out.

V: You’ve developed sales and marketing programs for a remarkably diverse clientele, from RJR Nabisco to Time Warner to Sunday River Ski Resort. What made you take the leap to ARDA and vacation ownership?

PR: It was a great opportunity to join an awesome team in an industry that’s back in growth mode with a product that is a marketer’s dream. And I mean two things by that: The product deals with fantastic destinations and vacations—that’s what people work for, to be able to take vacations—and the industry has had some reputation problems. As a marketer, that’s always a great challenge.

PR: Yes. We wanted to redo the look and feel of the site so that when people got there they would feel comfortable. VacationBetter.org is not a commerce site. It’s a place where anyone can learn about the product. Today’s consumer doesn’t want to be preached to; they want to co-create. VacationBetter .org is a way for us to say, “Hey, if you’re interested, here’s a comfortable place to have a conversation about timeshare.”

V: How does this “conversation” ultimately enhance the owner experience?

PR: With anything you buy, the more you know about it, the more you get out of it. If you learn how to use all the new features on the TV you just purchased, you’re going to be satisfied that you just spent $1,500.

But if all you learn is how to hit the on-off button, you won’t feel like you’re getting any value out of it.

V: If you could give the vacation ownership industry one piece of marketing advice, what would it be?

PR: Consumers want transparency. They want to be marketed with, not at.

V: How can the new VacationBetter.org help tackle that challenge?

PR: The site is designed to promote the reputation of the industry in a positive way. It’s getting the word out: This is a great product with a great satisfaction rating for the right person.

PR: Exactly. Timeshare isn’t for everybody.

The purpose of VacationBetter.org is to put the facts out there so consumers can decide what’s best for them. I think that will help start to eliminate some of the problems we’ve had in the past.

V: The tone of the website is down-toearth, conversational and never sales-y.

Was this a conscious decision on ARDA’s part?

56 Q3 2014

ILLUSTRATION: SHUTTERSTOCK

V: But the “right person” isn’t everybody.

THE WORLD’S FIRST AUTOM ATIC

ALARM

CHRONOGRAPH GMT LIMITED EDITION

www.gevrilgroup.com

LeagasDelaney.de

helioro by kim. simply, beautifully irresistible.

EXQUISITE TIMEPIECES & JEWELRY 路 ESTABLISHED 1878 700 FIFTH AVENUE & 55TH STREET NEW YORK 212.397-9000 OPEN SUNDAYS 12 TO 5

At the best Addresses in Germany and in London, Paris, Madrid, Vienna, New York and Beijing. www.wempe.com Just like a magnificent moment that never ends: nine seamlessly joined strands of gold combine to form the Helioro ring. In 18 k rose gold and with brilliant-cut diamonds. From $1,865.