October 2008

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Chris Evans: "Being made James Eveling: "Past studies Russell Waters: "It's on everyone's
to feel special and unique indicate that shared-ownership mind to help save the planet and the
really motivates the affluent models have benefited from more we can do through business,
customer" PAGE 31 economic downturns" PAGE 34 the better" PAGE 35
Enterprising ideas for the vacation industry October 2008
STRATEGIES THAT UNLOCK THE DOOR

TO TIMESHARE AND FRACTIONAL SALES
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VENTURES MAGAZINE SERVING RCI’S MARKETS IN

OCTOBER 2008 EUROPE AND THE MIDDLE EAST
CONTENTS EDITORIAL
Cover story: Highlights
of sales success in the
fractional and
timeshare markets
features on page 16. Many of you will, like the Group RCI team,
be preparing to head off to Madrid for this
year’s OTE Business Forum. Although I
attended the ARDA convention earlier this
year, the OTE Forum will be my first
major European industry event and I’m
looking forward to an in-depth
presentation of the achievements of the
industry in our region over the past year, as well as exploring the
challenges facing – and opportunities for – its future development
and growth.
Everyone across the industry is feeling the credit squeeze but,
as has been proven before during difficult times, ours is a diverse
and resilient industry. It’s important at this time that we don’t lose
focus on identifying the ways we can work together to build a
4 MARKET OUTLOOK: stronger future for everyone who contributes to the shared-
A news and views round-up from Europe and the Middle East vacation ownership industry.
We at Group RCI have listened to our members and they’re
11 MARKET REPORT – HOT BUSINESS IN COLD CLIMES: telling us they want greater choice of destinations and flexibility of
Russia is emerging as a strong source market for European product from their timeshares. On page 8 of this issue you will see
developers our response has been to invest significantly in strengthening our
already successful business development team, which is on a
16 COVER STORY – THE RIGHT SELL:
mission to ensure our established and valued affiliates are well
A look at the philosophies and strategies that drive timeshare
looked after while new associates are brought on board to expand
and fractional sales success
the geography of Group RCI’s exchange network.
22 ISLAND LION: The choice and scale of our exchange portfolio is definitely seen
Cypriot-based timeshare operator Kouroushi Lion Resorts sets as a plus by our members and already this year we have affiliated
its sights on expansion 10 new resorts, many in exciting new and emerging holiday
destinations such as Turkey and Cyprus. You can see the full details
26 MAKING A SPLASH: on page 9.
A closer look at how IFA Hotels & Resorts operates its wide Russia is now high on the radar of the international business
range of leisure real estate products community as an emerging market and it’s on ours as well. The
Russian market report on page 11 looks at the strength of the
31 LIFESTYLE FOCUS:
country as a source market for European sales operations. Looking
How marketing materials can make the right impact on potential
ahead, it also investigates the developer investment opportunities
buyers of high-end properties
in Russia which will unfold as a legislative framework is
34 FRACTIONALS FROM A LEGAL PERSPECTIVE: established there to support our business.
A legal practitioner shares his experience of the With the emergence of new markets, it’s more important than
burgeoning European fractional market ever that proper consideration is given to sales and marketing
techniques if consumers in these markets are to be able to trust
35 FOR THE GREATER AND GREENER GOOD: the product from the outset.
Eco-friendly initiatives are good for business as well as the planet The cover feature, to be found on page 16, looks at the sales
operations of a fractional and a timeshare developer whose
38 ONLINE ADVERTISING - MAXIMISING RETURNS: approaches will serve, not only to grow their own business, but also
SHANE QUIGLEY, director of Epiphany Solutions, demystifies
to enhance consumer confidence across the board for the benefit of
search engine optimisation
the industry as a whole.
As ever, we hope your RCI Ventures provides you with great
ideas and inspiration for your operation, as well as a sense of
VENTURES is published by Group RCI, Kettering Parkway, Kettering, Northants, NN15 6EY, United
Kingdom. Tel: +44 (0)1536 310101. Fax: +44 (0)1536 314682. Email: ventures@europe.rci.com
Group RCI’s commitment to supporting its affiliates – every step of
EDITOR: Helen Foster. DESIGN: Richard Blaney. PRODUCTION CO-ORDINATOR: Claire Williams. the way.
ADVERTISING SALES: Media Line Ltd. Tel: +44 (0)870 250 8701. Repro: JP Repro. PRINTING: CKN
Print Ltd. Images for Cover story, Market report and Green issues from Getty. Original articles
and contributions may be reproduced or transmitted only with written permission from the
publisher. No responsibility is accepted by RCI Europe for any losses or other consequences
Sincerely
resulting from advertisements or other material appearing in this publication. RCI Europe Jonathan Back
reserves the right to accept or refuse advertisements at its discretion without assigning any
reason for doing so. © RCI Europe 2008. Managing director, Group RCI EMEAI
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RCI Ventures, October 2008 3
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Marketoutlook
A R O U ND - U P OF I ND U S T R Y N E W S , V I EW S , A ND P E O P L E T O W ATC H
THE REGISTRY
COLLECTION
ATTRACTS
MORE
MEMBERS
PRODUCT: The Registry
Collection continues to
grow in popularity, with
Brett Archibald latest statistics revealing a
membership of almost
30,000 just two years after its European launch.
The luxury leisure accommodation exchange
The new Anfi team, from left, Christian Kuth, Célia Fonseca and John MacDonald.
platform is also attracting the attention of
fractional developers across Europe. The
Registry Collection was represented at the
Fractional Life Summit in July by Brett Archibald,
NEW MANAGEMENT FOR
senior vice president business development, and
Nick Turner, vice president, who both presented
ANFI IN GRAN CANARIA
to delegates. PEOPLE: The Anfi many vacation Canaria as owner of
Archibald told Summit delegates the Group in Gran Canaria membership resorts Club Vista Puerto – a
European market was starting to embrace has appointed John worldwide, including boutique resort located
fractionals as a business model which was MacDonald as its sales Hilton’s in Portugal and in the south of the
proving to be resilient in the current difficult and marketing director. Sunterra’s in the island.
economic climate. He said: “We’re seeing an Joining his team Caribbean and Florida, In his new role Kuth
increasing number of major brand name players will be Christian Kuth before returning to the will be responsible for
entering the market. in the role of sales Anfi Group. launching the Anfi
“The global fractional market has grown by 50 director and Célia MacDonald said: Tauro entrance product.
per cent from 2006 to 2007 and The Registry Fonseca as marketing “Anfi is a magnificent He said: “From mid-
Collection has a 40 per cent share of that market. director. These resort, and to return July I’ll be recruiting up
We certainly had a lot of interest in the appointments see the after 11 years is a to 100 new sales staff
programme from developers visiting our stand at careers of MacDonald fantastic opportunity. to work at Anfi Tauro,
the Fractional Life Summit and we’re pleased to and Kuth coming full I’m looking forward to where we’ll be selling
say the event generated a number of significant circle, as they were key implementing new a unique product of
leads for us.” players during the techniques and exceptional quality.”
For more information contact: Europe: Nick company’s foundation programmes alongside Fonseca, newly
Turner on +44 (0)7960 034 933 or Paul Mac in 1992. the already successful appointed marketing
Sherry on +44 (0)7710 372 994. South Africa: +27 MacDonald brings marketing strategies.” director, began her
11 258 0195. The Middle East: +971 4 390 1660. with him 20 years’ On becoming sales career in her native
Or visit: www.theregistrycollection.com experience in the director, Kuth returned Portugal, entering the
industry. His career to his career roots, as luxury resort industry
began at the Miraflores he was responsible for at Pine Cliffs/Sheraton
VENTURES NEWS ONLINE Resort in the Costa del

Sol, from where he
heading the sales
division at Anfi del Mar
Algarve Resort. In 2006
she worked alongside
Check out the new and improved moved to Wimpy between 1992 and MacDonald at the
rciaffiliates.com where you will find a Leisure before 1997. He has since Hilton Vilamoura as
undertaking the worked at Airtours marketing manager.
breaking news page dedicated to bringing you
challenging position at Beach Club in Gran She has almost a
the news, as it happens, between your printed the then fledgling Canaria and Sunterra decade of experience in
editions of Ventures. company, Anfi del Mar. in the Caribbean before branded mixed-use
He went on to front returning to Gran five-star resorts.
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4 RCI Ventures, October 2008
TURKEY TAKES SPAIN’S SALES HEAD FOR

UK TOURISM CROWN FRACTIONAL LIFE
TRENDS: According to the Turkish Culture and Tourism Office (TCTO), PEOPLE: Fabrizio Harper, pictured, joins Fractional Life,
Turkey has overtaken Spain as the most popular tourist destination for providers of a web-based fractional lifestyle portal, as
UK travellers. head of sales.
The latest TCTO visitor figures for January to July 2008 show a Company founder, Piers Brown, said: “Fabrizio comes
17.03 per cent increase in visitors arriving in Turkey from the UK. A to us with a diverse and highly relevant background.
total of 765,506 UK tourists visited the country in the first half of this Having worked for a fractional car
year, compared with 654,084 for the same period in 2007 – figures club and been a property sales
which secure Turkey’s place as the most popular holiday destination negotiator in London he has a good
for the British this summer. understanding of fractionals.”
This shift in British holidaying trends is said to be largely Commenting on his new role,
attributable to the poor exchange rate of the Pound against the Euro. Harper said: “Working within the
Thousands of holidaymakers are heading to Turkey as a sunny and Mayfair property market in London
value for money destination which has not yet adopted the Euro and is recently, I’d noticed a downturn in
benefiting from a favourable exchange rate. the whole-ownership property sector
Irfan Onal, director for the Turkish Culture and Tourism Office in and a growth in destination clubs, PRC and fractional
the UK, commented: “In line with our objectives of increasing the property ownership which made me feel now is the
understanding among both consumers and the trade of what Turkey right time to join the Fractional Life team.”
has to offer, we have been working hard to develop Turkey’s visibility in
the UK and grow the country’s profile even further by developing
awareness of the cultural side of Turkey. This is a particularly exciting
time for Turkey as Istanbul was recently awarded the European Capital
NOSTOS APPOINT
of Culture 2010, strengthening our presence among the top European
destinations for British travellers.”
SALES DIRECTOR
PEOPLE: Nostos Select has appointed Kevin Baker,
pictured, as its new sales director.
Baker’s career in the industry spans 16 years and
takes in many high profile roles, including with Sunterra,
Club La Costa (CLC) and NorthCourse Leisure Real
Estate Solutions. Following four years as area sales and
marketing director for Royal Resorts in Bali, Baker left
that company in 2005 to set up his own timeshare venture
which closed following the Bali
bombings. Most recently he has been
working with CLC as project director
at Trenython Manor in Cornwall in
the UK, before taking up his new role
NEW AFFILIATES FOR with Greece-based Nostos Select.
He said: “After speaking with
GROUP RCI IN TURKEY developer, Antonis Sougioultzoglou, I
was excited by the plans for growth of
INDUSTRY: Group RCI has affiliated four new Turkish resorts to its the company’s timeshare, fractional and whole-
exchange holiday portfolio so far this year. ownership business streams. My priorities will be to
The company’s exciting new affiliations in Turkey offer a variety of develop sales and marketing operations in Skiathos and
holiday experiences to its members. They comprise two spa resorts, a Crete, and winter programmes in Athens and in the ski
property situated close to several beaches and one of the country’s resort of Peilion. This company aims to be one of the
most ancient cities, and a water-borne holiday experience in the form biggest shared-vacation ownership companies in the
of the Tatil Borasi Yacht Club which offers all-inclusive holidays on region and I’m looking forward to helping make that
fully-crewed catamarans, pictured, sailing along Turkey’s east coast. happen.”
See page 9 for more details.
RCI Ventures, October 2008 5|

Marketoutlook
A ROUND-UP OF INDUST RY NEWS FROM THE M I D D L E E A S T
ANFI SCOOPS PROPERTY AWARD

INDUSTRY: The 2008 European Property Awards, in association
with CNBC Television and the SIMA Corporation, investors in real CELEBS BACK CLC
estate, were recently announced and the Anfi Group won an
award in the category for European and African Property Awards.
CHARITY EVENTS
INDUSTRY: A host of celebrities were spotted
The group’s Anfi del Mar development in Gran Canaria
at Club La Costa Resorts & Hotels in southern
scooped the award, being judged, along with other entrants, by a
panel of leading European property professionals from a range of Spain as it hosted two major charity events.
real estate associations and governing bodies, as well as from the A fun run, the ‘Smile Mile’ - with 400
trade and consumer press. As award winner, the company is now participants and over 1,000 spectators, was a
permitted to display the Property Awards logo at its properties highlight event raising money for the Cruz Dias
and in its marketing collateral. Hospital/Adimi Centre for children with
John MacDonald, sales and marketing director for the Anfi disabilities. UK snooker legend Willie Thorne
Group, said: “To receive the award for the best development is a presented the trophies.
fantastic achievement and, we hope, well deserved. Anfi’s goal UK-based TV and media celebrities,
has always been to provide a five-star resort with a service to pictured from left, Chris Tarrant, Max Clifford
match, and to receive recognition of our achievements from such and soul singer, Omar Simon, who performed
a prestigious body of judges is an accomplishment of which at the party, were among guests at a Club La
everyone at Anfi is very proud.” Costa cocktail party held during a charity golf
Pictured above: Club Puerto Anfi is one of the properties within
weekend which raised approximately €125,000
the group’s award-winning Anfi del Mar development. for the Rhys Daniels Trust. The Trust was set
up by Rhys’ parents who lost two of their
children to a devastating neurological disorder.
Roy Peires, chairman of Club La Costa,
CLC YACHT CLUB said: “Charity is very important to us and we
were very privileged and proud to help.”
TO SAIL THE RED
INDUSTRY: Club La Costa Yacht Club will
be based in the Red Sea this winter as it
enters its second sailing season.
The club’s sailing holidays will take in
three countries – Israel, Egypt and
Jordan. For the first time, CLC is giving
its Diamond and Platinum Vacation Club
Points members access to its yacht club.
Lucien Le Moing, Club La Costa
Resorts & Hotels’ new business and
product development director, said the
move made higher-level points
membership “even more aspirational”
and was in line with the company’s
mission “to exceed customers’
expectations”.
Pictured right: One of the vessels in the
Club La Costa Yacht Club fleet.
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OTEnews
THE YEAR IN BRIEF
‘‘
Despite being kept The Resale Working disputes brought before the
busy by Brussels this Group is due to report to courts, judges will look to
year, OTE has developed a the Board with its the Code to assess what is
series of initiatives, the recommendations for ‘reasonable behaviour’ and
positive impact of which improving the efficient that standard may be
should be felt as we go into operation of resales. It is applied to non-OTE
2009. anticipated that OTE members as to members.
Crucially, the ongoing membership for resale A recommendation was
issue of a name change for companies will give buyers made at OTE10 last year
OTE should have been and sellers greater that OTE should develop a
resolved by the time this confidence in the service web-based reputation
article appears. A new offered and an assurance management capability
name for OTE should have they will be transacting at designed to place timeshare
been voted on by the reasonable prices. in a positive light and to
membership, approved by We have set up the counter much of the
the Board and announced Timeshare Partnership negative content currently
PAUL GARDNER at OTE11. Trust (TPT) to fund projects on the internet. OTE’s Media
The name change is that benefit the industry in Working Group has taken
BOUGAARD, OTE
necessary if we are to general and timeshare up this challenge, despite
chief executive, looks represent what is a rapidly owners in particular. Its funding issues, and the web
evolving industry with new first grant of funds has been site should be up and
back over what has
products coming onto the made to TATOC to support running at OTE11.
been an eventful year market. Products such as its Consumer Services OTE’s Enforcement
fractionals and Private Programme. The Trust, Project will be boosted in
for the organisation
Residence Clubs fall within chaired by Frank Chapman, 2008 by the addition of
and forward to its the timeshare definitions will be advertised within the another staff member to
set out in the new EU industry. assist Alberto Garcia. The
2009 agenda.
Timeshare Directive and The initial results of the team has been successful
merit inclusion in the EU Economic Impact Study this year in tackling bogus
organisation’s lobbying, should be available at resale companies and
monitoring and analysis OTE11, followed by the holiday clubs, as well as
work. Though distinct from publication of the full report enrolling the support of
standard timeshare in 2009. The study was tourism associations in the
products, they still need to prepared by Nottingham Canary Islands.
be represented by a trade University’s Christel Many of the initiatives
body. DeHaan Institute for Travel mentioned here will be on-
A new Fractional and Tourism to assess the going. OTE’s key objective,
Committee will be set up to industry’s scale and its however, will be to
represent this sector of the economic contribution to EU underscore the fact that
industry and the Legislative balance sheets. This will be consumers and others
Council will establish a an indispensable tool in should only do business
working group to look at the discussions with opinion with OTE members and to
legal structures specific to formers throughout Europe. promote OTE membership,
these products. We would A review of the OTE Code not only as a sign of quality
hope to include input from of Ethics is underway and a and confidence in the
our US colleagues who have report is expected by the industry, but as a
’’
much practical experience year end. Members need to prerequisite to doing
to call upon. be aware that in consumer business in Europe.
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I N F O R M AT I O N E X C LU S I V E LY F O R G R O U P R C I A F F I L I AT E S
BUSINESS BUILDERS Sharing the confidence of

many industry experts who believe timeshare and other
shared-vacation products to be resilient to the current credit
crunch, Group RCI is investing in its business development team.
THE OPTIMISATION and expansion of Group RCI’s products into the market. They
exchange business is a constant priority. will be dealing with upscale
At the heart of the process of improving member tourism oriented real estate
experience and, therefore, the value of affiliation with (TORE) projects and the high-
JONATHAN BACK
Group RCI is the acquisition of fresh inventory, both in end borrowing environment
established popular locations and in new destination markets. such as property trust funds.”
To help achieve this year’s new affiliation targets, two new Both Turner and
vice presidents have joined the ranks of the business Mac Sherry have experience
development team. Nick Turner returns from Group RCI’s of building new markets.
Dubai office where he was managing director of Group RCI in Turner was responsible for
the Middle East, and Paul Mac Sherry joins the company from the start up of the DIMITRIS MANIKIS
Premier Resorts, where he held the post of account director. vacation rental
They join Dimitris Manikis, who has been with Group RCI business, Arabian
for 17 years, heading up its Greek operation before becoming Breaks, in the Middle
vice president, business development. They will report to East when he joined
Brett Archibald, senior vice president, business development. Group RCI in 2006
Commenting on the expansion of Group RCI’s business before assuming
development team, Jonathan Back, managing director, responsibility for its BRETT ARCHIBALD
Group RCI EMEAI, said: “The future of this industry is in the exchange network
hands of the business development teams. The lifeblood of business in the region.
this industry is the whole range and variety of exciting new Among Turner’s
destinations and resorts we are able to offer our owners and accomplishments in
members. previous leadership
“Our goal is to build on our already unrivalled portfolio of roles with the De Vere
NICK TURNER
quality leisure accommodation and, crucially, create new Group, Forte Ltd and
markets and new hybrid products. We view innovation and the Arcadian International
introduction of increasing product flexibility as key in helping are creating new products and developing hotel
our affiliates and industry partners to get the best return on distribution channels to 60 countries.
their investment. Mac Sherry is a sales and marketing professional
“To this end, our priority continues to be a focus on our with more than 19 years’ experience in business
Customer – both B2B and B2C – and we put them at the development which he will draw on to maximise
centre of everything we do. This is combined with a focus on opportunities in expanding Group RCI’s European
the people within our company and the creation of a values- markets. At Premier Resorts he led a team representing
centric organisation delivering the highest possible service clients across eight countries operating in the
PAUL MAC SHERRY
levels to members and affiliates. We never forget that we are fractional, condo-hotels and buy-to-let markets.
only as successful as our affiliates.” Prior to that he worked for Marriott Vacation Club
Archibald said of his new team: “Dimitris Manikis and the International creating a strategic marketing partnership platform and
affiliate services team have built a robust, tried and tested in other roles he has dealt with many blue chip companies including
exchange network. They’re doing a great job helping to build British Airways, HSBC, Nokia Global and Virgin Atlantic.
business at local levels and will continue in that role, as well Archibald explained that the work of the business development team
as making sure our existing affiliated developers are well will be backed by a more aggressive PR strategy which will see a
looked after. Group RCI presence at major real estate and hospitality industry events.
“Nick Turner and Paul Mac Sherry will be driving delivery He said: “This PR initiative is aimed at raising the profiles of the industry
of The Registry Collection and our Rental & Exchange (R&E) as a whole, and of our affiliated developers, as much as Group RCI’s.”
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TEN NEW PLACES

GROUP RCI is delighted to welcome 10 new
resorts that have been added to its portfolio
in the year to date.
The new affiliations reflect the
company’s ongoing commitment to provide
its members with the best quality resorts in
a variety of locations. Group RCI has been
listening to its members and has targeted
countries where they say they want to
holiday, and has introduced resorts in new
and emerging destinations, as well as in
traditional timeshare hotspots.
HOLIDAY & LEISURE CLUB, KUSADASI, TURKEY
The company has added a
resort in the emerging
destination of Hungary, as well
as three new properties and a
yacht club in Turkey. In
addition, there are two new
resorts on the island of Cyprus,
two in the increasingly popular
destination of South Africa, and
one in the world’s fastest-
growing tourist area, Dubai.
The new resorts are:
CAPITAL COAST RESORT &

SPA, CYPRUS
This contemporary seafront
resort between Coral Bay and
the Tomb of the Kings in ASTYRA SPA & THERMAL RESORT, TURKEY
Paphos, is the latest property
to be developed by Kouroushi Lion Resorts (KLR). Amenities near Turkey’s Aegean
include health club, indoor and outdoor pools, conference coast. The resort
facilities and more. developers are Ankara-
based Hattusah.
CLUB ADELPHI AT AMPHORA RESORT, CYPRUS
KLR’s second new property in Cyprus is a mixed-use five-star GARDEN ROUTE
resort with a beachfront location in Kato Paphos. Facilities CHALETS-ISLAND,
include wellness centre and spa, three swimming pools and a SOUTH AFRICA
boutique retail village. Managed by Garden
CAPITAL COAST RESORT & SPA, CYPRUS
Route Chalets, this resort
PARK INN HOTEL SÁRVÁR, HUNGARY in the picturesque village
Located in Hungary’s popular spa region of West Pannon and of Sedgefield offers a variety of watersports courtesy of its close
adjacent to the Sárvár Wellness Centre, this resort offers proximity to Swartvlei Lake and Gerrike's Point.
massages, beauty treatment and fitness facilities. The developer is
Attila Olasz of PS Hotel Ingatlanhasznosító. HOLIDAY & LEISURE CLUB, KUSADASI, TURKEY
With access to a range of beaches in a region renowned for its art,
ASTYRA SPA & THERMAL RESORT, TURKEY culture and history, this resort offers something for all types of
Four indoor thermal pools, a heated seawater pool and Turkish holidaymaker. The developer is Orhan Karaderili of Cagatay
baths are part of the appeal at this mixed-use resort at Edremit Alacam, based in Istanbul.
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I N F O R M AT I O N E X C LU S I V E LY F O R G R O U P R C I A F F I L I AT E S
TATIL BORASI YACHT CLUB, TURKEY
NKAMBENI TENTED
CAMP, SOUTH AFRICA
This RCI Frontier Property
is idyllically located next to
Kruger National Park, and
comprises luxurious wood
and canvas tents with a
variety of facilities. Activity
options include safaris, TEOSPA HOTEL & SUITES, TURKEY
bush walks, river rafting,
quad bike tours and hot-air ballooning.
TEOSPA HOTEL & SUITES, TURKEY

The ancient cities of Teos, Ephesus and Bergamo are all easily accessible
from this new spa resort, which overlooks the Aegean marina of Sigacik and
was developed by Israel-based Joseph Kyriati.
TATIL BORASI YACHT CLUB, TURKEY

Former salesman Ugar Ozdel’s first venture as a developer features all-
inclusive holidays aboard fully-crewed yachts. The boats are based in Fethiye
and sail the Aegean, calling at popular resorts along Turkey’s east coast.
IVORY GRAND HOTEL APARTMENTS, DUBAI

Developed by Humaid Al Suwaidi Real Estate LLC, this mixed-use resort is
located close to renowned retail and leisure centre, the Mall of the Emirates.
Facilities include a temperature-controlled pool, gym, whirlpools, steam
rooms and massage spa. IVORY GRAND HOTEL APARTMENTS, DUBAI
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MARKET REPORT
QUOTE: THESE EASTERN EUROPEAN SOURCE MARKETS, SUCH
AS RUSSIA, ARE WHERE WE’LL FIND THE FUTURE GENERATION
OF TIMESHARE OWNERS. JAVIER MINGUELLA
Russia is opening its doors to foreign investment and its people are increasingly
looking to travel overseas for new holiday experiences. KATHERINE STEINER-
DICKS, a financial and investment journalist, explores the potential of this rich
country, both as a developer opportunity and source market.
HOT BUSINESS IN
COLD CLIMES
RUSSIAN cities are going through a construction boom with Moscow being named the hottest property market
for 2008 in an Emerging Trends survey compiled by the Urban Land Institute and PricewaterhouseCoopers.
The majority of the 500 real estate developers and institutional investors surveyed believed the once
perceived risks of corruption, burdensome bureaucracy and restrictions on foreign direct investment in doing
business in Russia were history and no longer kept investors away. It was found that the profits, starting to be
enjoyed by institutional investors, were encouraging others to set aside any inhibitions they may have had
about doing business in the country. B
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MARKET REPORT
QUOTE: I BELIEVE THAT THE CURRENT LACK OF TIMESHARE REGULATION
IN RUSSIA HAS LED TO MANY RUSSIANS HAVING MORE CONFIDENCE IN
INVESTING IN THE FINNISH MODEL. HANNU MÄNTYHARJU
Russia’s oil revenues have created a growing middle class and the But for those developers not already in the market, it’s worth
world’s largest population of billionaires, second to the US. A strong knowing that Moscow and St Petersburg are thought to be nearing
economy and profits have sent out a positive message to the foreign the peak of their boom, according to property investment website
investor. Property Secrets.
As of 2007, real GDP increased by the highest percentage since However, there’s certainly potential for new growth in the
the fall of the Soviet Union at 8.1 per cent. Meanwhile, the ruble underdeveloped areas of the Millionniki – the name for 11 Russian
remains stable, inflation has been moderate and foreign portfolio cities, excluding Moscow and St Petersburg, each with a population
investment surged last year by a factor of 2.5, a figure none of the exceeding one million. These cities are attracting a growing number
world’s 15 leading economies can compete with, according to of international real estate players, especially commercial property
recent reports by Dr Vladimir Kvint, president of the International investors attracted by the availability of building plots and weak
Academy of Emerging Markets. He puts a figure of $100 billion on competition. These cities include Samara, Rostov-on-Don,
overseas investment in Russia over the last 12 months – an all time Yekaterinburg, Novosibirsk and Chelyabinsk, all of which are
record for any emerging market country. beginning to attract increasing levels of investment.
Other hot Millionniki cities are Kazan, Nizhniy Novgorod,
WHERE IS THE SMART MONEY GOING? Omsk, Ufa, Volgorog and Perm.
Property and resort developers should note the fact that, according While the retail sector is the hottest segment of real estate
to Jones Lang La Salle, foreign direct investment in the Russian real investments, Property Secrets reports that the residential market in
estate sector has increased almost 50-fold over the last six years to Russia is still a speculative market, driven by demand from the
approximately $6.5 billion in 2007. wealthier locals who are predominately cash-buyers. However, there
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workV-Russia-MktRep-jp-6rb-JP 3/9/08 14:04 Page 5
CITY SPA RESORT FACTS & STATS TOP EXCHANGE CHOICES

Holiday Club Resorts’ Total population: 143 million Group RCI’s Russian members’ top Weeks exchange
St Petersburg Moscow 10 million choices in 2008 are:
development will be the St Petersburg 5 million Long haul: Egypt, Florida, India and the Caribbean,
city’s first full-service Belarus 9.5 million Short haul: Tenerife, Spain’s Costa del Sol, Greece, Hungary
spa hotel. Ukraine 45 million and Finland
The resort will
TRAVEL TRENDS *Source: Rosstat Service of State Statistics.
include a 260 room hotel
and 26 timeshare The 10 most popular destinations for Russian leisure travellers in Q1/2008, in order of preference,
apartments. were: China, Egypt, Finland, Thailand, Germany, UAE, Italy, Turkey, France and the Czech Republic.
St Petersburg is
Russia’s second
largest property
THE LEGAL PERSPECTIVE
market and is ARTEM KUKIN of V: What about tax incentives?
attracting a
growing number
Moscow-based law firm Yust is AK: This area needs to be
of international optimistic about the prospects checked on a case by case basis.
real estate for Russia’s future hotel, resort As a general idea, tax incentives
investors.
and timeshare markets. RCI could be found in the ‘special
Ventures asked him the economic zones’ and in the
questions every developer and tourist and recreational zones
investor wants to ask. which have already been formed
in many regions of Russia.
RCI VENTURES (V): For a
developer looking to invest in, V: Are there any issues
and open, a resort in Russia, is surrounding the purchase of a
it essential to partner with a holiday exchange or timeshare
Russian company? property, as it probably won’t be
AK: No. There is no a deeded purchase?
requirement to have a local AK: Indeed, the purchase of a
partner. However, specific timeshare would be considered
types of activity, for example as purchase of a service rather
construction, are subject to than acquisition of property, and
licensing in Russia. as such, not subject to statutory
registration. However, the
V: Can the profits of a foreign activities of a timeshare service
investor developer be provider would be subject to
has been a marked increase in the uptake of mortgages, but mainly transferred from Russia to the regulations on consumer rights,
from the wealthier population as interest rates are currently running developer’s country of hotel and tourist activities.
at 11 to 12 per cent. residence?
Property Secrets reports: “The common view is that Russia will AK: Yes. There are generally V: Are there any issues
do far better than developed European countries and Asian property no restrictions on repatriation surrounding a Russian national
assets during the global economic slowdown for two main reasons. of profits after all taxes and buying a timeshare in Europe?
One – demand for quality properties remains strong due to low dues have been paid in Russia. AK: No, there aren’t any issues
supply.Two – the macro-economic fundamentals are still in place in such agreements.
and sustainable enough to fuel domestic growth.” V: Are any government
incentives available to foreign V: The visa situation has
OPPORTUNITIES FOR TIMESHARE investors to encourage them improved greatly for Russians
So what does this mean to the timeshare market? Increased to establish businesses there? wanting to travel – but which
consumer spending power in other markets has brought increases AK: Foreign investments are main tourist destinations/
in house purchases. But it seems Russians prefer to buy their seen as a priority by the countries do Russians still need
property abroad. Russian Government. There a visa to visit?
In recent years, Russians have been buying up holiday properties are many political and AK: Russian citizens still need
in Turkey, Bulgaria and the Ukraine. Most middle class families can’t economic incentives to visas for most countries,
afford property in Moscow, probably one of the most expensive encourage foreign investment. including the EU and the US.
cities in which to own and rent property, so they’ve turned to
|
MARKET REPORT
QUOTE: ONE OF THE BIGGEST BARRIERS TO ENTRY WHEN IT COMES TO MARKETING IN RUSSIA AND
TO RUSSIAN CLIENTS IS LANGUAGE. IT’S DIFFICULT MARKETING TO RUSSIANS IF YOU DON’T HAVE
LOCAL STAFF, WHICH IS WHY MANY HOTELS ARE NOW HIRING RUSSIAN STAFF. RIITTA APIOLA
HOW RENTALS AND REAL ESTATE MEASURES UP

According to Knight Frank, global property between $3 and $3.5 million (secondary market).
experts, the average price per square metre of a These are 2007 prices, and the Moscow
new apartment in Moscow as of late 2007 was market has already experienced rises of
$18,175, while the average price on the between 18 to 25 per cent this year, according
Map courtesy
of Knight secondary market was $19,091 per square to local estate agents. In general, new luxury
Frank. Rates
shown are in metre. The highest level of supply was residential properties are increasing in value
dollars and
represent apartments (primary market) priced between quicker than middle-class properties.
price per
square metre. $1.5 and $2 million each, and units priced The rental rates are also high and rising.
buying holiday homes abroad.Timeshare and other shared-vacation Finnish travel with an estimated 11,000 Finns being employed in
ownership models are particularly appealing to the money-savvy service exports and Russian tourism.
Russians and are proving symbiotic with the overseas buying trend Not surprisingly, it is expected that there will be a significant
among them. take up of the St Petersburg timeshares by Finns, as well as by
Russian domestic purchasers.
AFFINITY WITH THE FINNS Mäntyharju said: “I believe that the current lack of timeshare
The Nordic region in particular has been a hot spot for Russian regulation in Russia has led to many Russians having more
timeshare buyers as Hannu Mäntyharju, deputy CEO of Finnish- confidence in investing in the Finnish model. And when companies
based Holiday Club Resorts (HC Resorts), can testify. He said: do as we do and offer Russian customers the same consumer
“Russian nationals’ average ownership of timeshare weeks in protection rights as EU customers, including a 14-day cooling-off
Finland is more than the Finnish. On average Finns own 1.7 weeks period, it builds a trusting relationship and serves to strengthen that
as opposed to the three or more weeks owned by Russians.” bond with the customer and market.”
Russian nationals make up seven per cent of the group’s owner
base and Russia is a source market HC Resorts believes it can HOT SPOTS FOR RUSSIAN HOLIDAYS
develop further, as Mäntyharju explained: “We’re building a new Russian consumers are looking beyond their border to the hotter
resort including spa hotel in Saimaa, at the heart of Finland’s climes of Spain and Tenerife. Javier Minguella, resort manager of
beautiful lakeland and only 220 kilometres from St Petersburg.This Tenerife-based Tropical
is being developed to specifically cater for Russians.” Park, says the Eastern
Construction of the 200-room spa hotel (approximately European countries are
250,000 sq m) will start in spring next year and an 18-hole golf the source markets that
course will be a feature. Importantly the site plans include more will help build his
than 300 timeshare apartments which is a measure resort’s future growth.
of HC Resorts’ confidence in Russia as a strong Many timeshare
source market. operations, like Tropical
There will also be a residential component to Park, a Group RCI-
the site which comprises 200 properties to be sold as Tropical Park affiliated resort, are
wholly-owned second homes which can be put into already hiring Russian sales teams that work in local markets, as well
timeshare. as onsite at their resorts. Minguella said: “If Spain wants to continue
Hannu HC Resorts was quick to realise the potential of being one of Europe’s most lucrative tourist destinations, new visa
Mäntyharju
Russia’s major cities as up and coming holiday and working agreements will have to be created so that interested
destinations of the future and several years ago, when it was then Russian tourists and workers can visit or work in our country
known as Holiday Club Finland, the company began developing without any hurdles or hesitation.”
Holiday Club St Petersburg, the first full-service spa hotel with 260 Minguella believes there is a need for more Russian workers, or
hotel rooms in the city of the same name. Set on the peaceful Vasil at the least Russian-speaking personnel with knowledge of the hotel
Island just a short distance, via bridge, from the centre of the city, and resort industry, to work in Tenerife and Spain. “The future of
the Group RCI-affiliated resort has 26 apartments which are the Spanish tourist industry depends on it,” he added. “These
allocated to timeshare.The first phase of the development opened Eastern European source markets, such as Russia, are where we’ll
earlier this year, and the completion and opening of all the resort find the next generation of timeshare owners.”
facilities is set for this Christmas. Tropical Park is already equipped with Russian
Simon-Erik Ollus and Heli Simola, economists from the Bank of satellite television channels, menus and bespoke party
Finland Institute for Economies in Transition (BOFIT), identified the and activities for its Russian guests.This is becoming
affinity of Finland and Russia, near neighbours and close trading the norm across many spa and hotel resorts in
partners, in their 2006 report, Russia in the Finnish Economy.The Europe, which is comforting for the Russian
report states that Russia provides jobs for as many as 50,000 Finns customers who are, says Minguella, increasing their Javier
and that the country is one of the most important markets for ownership of timeshare weeks year on year. V Minguella
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The average monthly rent in the capital was Primary properties tend to be more expensive centres such as Rostov-on-Don in Southern
$6,800 per annum in Q3 2007 – representing and buyers can expect to pay $3,700 to $17,300 Russia, are tipped by the pundits to be the
a 34.8 per cent increase in just nine months. per square metre, depending on the location areas to feed demand for higher quality
St Petersburg is the second largest property and the project facilities.” properties in future, especially with the 2014
market in the country, which is reflected in its But given that this city has seen such rapid Winter Olympics in Sochi on the horizon.
property prices. The Property Secrets website growth over such a short period of time, Currently, average apartment prices in
states: “Prices range from $2,955 per square property values are not generally expected to Millionniki are between $700 and $1,200 per
metre to $16,500 on the secondary market. get much higher. Millionniki and business square metre, according to Knight Frank.
THE GROUP RCI VIEW

RIITTA APIOLA, THE LANGUAGE timeshare product at home travelling overseas for both
Group RCI CHALLENGE they readily want to take leisure and business in recent
regional The country’s timeshare advantage of the overseas years. Popular destinations
director, Central market is now at a new and opportunities and exchange include Finland, Lithuania and
Europe, shares exciting crossroads, as the holidays. Hotel developers Latvia, places that are easy
her views on long-established domestic such as Nordic Hotel and for them to access by car or
opportunities for shared- timeshare customer base is resort groups like Holiday train.
vacation ownership in the becoming keen to buy Club Resorts are now But when it comes to
Russian market. timeshare properties in constructing new resorts in family holidays in the sun,
mainland Europe. the big cities, which Russians Israel, Turkey, Egypt and
“For developers and property One of the biggest barriers love to visit. Cyprus are popular
investors interested in building to entry when it comes to Moscow and St Petersburg, destinations. These markets
resort hotels in Russia, the marketing in Russia and to for example, hold a special cater to the middle class
promising news is that it’s Russian clients is language. place in the hearts of the package holiday Russian
certainly becoming a more It’s difficult marketing to majority of Russians. The tourist who will often take
open market in terms of Russians if you don’t have Black Sea is also popular with their whole family, including
overseas investment local staff, which is why many Russians, as is Dambay in grandparents, aunts, uncles
opportunities. The government hotels are now hiring Russian Uzbekistan for its ski resorts. and cousins. But given the
and regulatory bodies have a staff and putting menus and And unsurprisingly, markets high disposable income many
good attitude towards foreign brochures in Russian. such as Croatia, Bulgaria, travelling Russians enjoy, they
investors. Group RCI has Group RCI, for example, is Hungary and the Czech do expect a high quality
experienced an increase in creating point of sale material Republic are key holiday product and something really
interest from various in Russian for the sales decks markets for Russians given special.”
regulatory bodies in the to make it easy for Russian the relative lower costs and
country and is quickly purchasers to understand and close proximity. ■ For more information
establishing relationships with use the literature. There are Russians undoubtedly please contact Riitta Apiola on
them to help our affiliates. now travel expos in Russia, have a greater ability and +358 9 4761 9219 or email
Group RCI has been active with four in Moscow this year desire to travel than 10 years riitta.apiola@rci.com
in Russia since 1995 and within alone, which makes our job ago. Though only 20 per cent
the past five years I’ve easier when it comes to of Russian timeshare owners ■ Last year, Group RCI
definitely seen an promoting the timeshare currently buy into overseas appointed Nadja Tulander, a
improvement in the legislative industry. resorts, Russians are active Russian speaker, to its
structure, with more exchangers, with Helsinki office. Nadja is
improvements to come. I RESORT DEVELOPMENT approximately 45 per cent of responsible for supporting the
would say that in about five AND TRAVEL TRENDS Group RCI’s Russian members sales teams of Group RCI’s
years’ time legislation in Developing new resorts in who own in Russia exchanging affiliates operating in the
Russia regarding overseas Russia is still not an easy out to Spain or the Canary Russian market.
investment, property and land thing to do if coming in from Islands each year. She is currently supporting
ownership will be on a level abroad. According to our research, Holiday Club Resorts’ sales
approaching that already However, as more there has been about a 15 per teams at its St Petersburg
enjoyed in Europe. Russians experience the cent increase in Russians resort.
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workV-Sales4 xp6-sa-rb-JP-vers7:Layout 1 8/9/08 16:41 Page 2
COVER FEATURE
QUOTE: IF A PERSON ‘BUYS’ SOMETHING, REMORSE IS REMOVED
BECAUSE THEY’VE CHOSEN TO MAKE A DECISION TO PURCHASE
THEMSELVES. JOHN GERNON
THE
RIGHT
SELL
THE FRACTIONAL FOCUS
Selling a high-end product always requires a
tailored focus. But it takes that – and more –
when selling fractionals to affluent travellers,
according to Regency Resorts’ John Gernon, who
shares his personal philosophy with SARAH LEE.
Gernon, project director of the company’s
72-unit fractional resort, The Regency Country
Club, believes focusing on a
prospective buyer’s emotional
response and ensuring they feel
no remorse following their purchase are the keys to a successful
fractional sale.
A salesperson always has He said: “We don’t sell to our clients, but give them the opportunity
to buy their future holidays with us.”
to work hard to close a deal With entry level one-bedroom apartments at the Tenerife property
and none work harder than starting at about €180,000 and a four-bedroom selling for €750,000
per five-week fractional, it is a considerable purchase. And since the
those representing the resort’s clientele of executive-level professionals don’t want to feel
shared-vacation ownership pressured into buying a product, selling fractionals requires a different
approach to the techniques commonly employed elsewhere in the
industry, coming, as they shared-vacation ownership business.
often do, face to face with a Gernon explained: “If a person is ‘sold’ a product, they will
undoubtedly experience buyers’ remorse in the following few days.
very wary customer. “However, if a person ‘buys’ something, remorse is removed
RCI Ventures, with the because they’ve chosen to make a decision to purchase themselves.
This not only makes clients feel happy with their purchase, but it will
help of Marcello Morelli of annihilate your cancellations.
Heritage Resorts and John “We have cancellations, like everyone else, but they are a great deal
lower than they could be in today’s legislative climate.”
Gernon of Regency Resorts, Since Regency Resorts entered the fractionals market with The
looks at the philosophies Regency Country Club in June 2007, it has converted 300 –
approximately 20 per cent – of its standard timeshare owners to
and strategies that drive fractional ownership with an average of two and a half weeks costing
sales success in the €60-70,000. According to Gernon, it was just a question of “knowing
our members and what they wanted, and we know all of them well.”
timeshare and fractional The company’s marketing techniques have varied. It has not used
sectors of the business. Off-site Personal Contacts (OPCs) since 1993, favouring instead fly-buys,
where clients visit the resort and experience all it has to offer before
attending a sales presentation. The company also markets itself online and
direct to targeted demographic groups.
Gernon said: “We’ve been selling positively for a long time. We also
reward members for referrals under our ambassador scheme which has
proven very successful.”
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workV-Sales4 xp6-sa-rb-JP 2/9/08 17:17 Page 3
COVER FEATURE
QUOTE: OUR RESORT IS VERY MUCH A COMMUNITY. WE ACTUALLY
CALL MEMBERS AND PROSPECTIVE MEMBERS ‘FRIENDS’ RATHER
THAN CLIENTS. JOHN GERNON
THE LIFE OF A FRACTIONAL SALE A client’s signature on a sales

agreement at The Regency Country Club is the culmination of weeks
of hard work. There isn’t such a thing as a typical day for the resort’s
salespeople, as they’re involved in a whole range of activities, many of
which aren’t directly linked to sales. Instead the focus is on building a
trusting and friendly relationship with the client over a period of time
in the same way a real estate agent would.
Gernon explained: “Around four to five weeks before clients visit us
our sales staff telephone them to introduce themselves and to find out
more about the client and what they’re looking for in their holidays.
“They will then recommend day trips or activities, and book things
for them as required. Our salespeople also enquire about any
disabilities clients may have, or special requests, and have even been
known to shop for them so they have a fully stocked fridge on arrival
or pick them up from the airport.
“During a guest’s stay, members of our sales team are available to
them whenever needed – be it to ask about a local attraction or resort
facilities. Our salespeople will also accompany guests on day trips.
“Selling is hard work, but for our people – some of whom work
14-hour days when necessary – the rewards are great.”
John Gernon, pictured left, focuses on building a trusting Another important aspect of sales at The Regency Country Club is
relationship with potential purchasers of Regency Resorts’ the chance for prospective purchasers to mingle with owners.
fractionals product. Gernon said: “Our resort is very much a community. We actually
Pictured top: The Regency Country Club is a call members and prospective members ‘friends’ rather than clients.
Balinese-themed haven on Tenerife where entry level “We get to know them and their family, go out with them, play
one-bedroom apartments start at about €180,000. golf with them, send them flowers on their birthday. I’ve even been on
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TOP TIPS TO FRACTIONAL SALES
■ Emphasise the low capital requirement of a fractional

compared to the costs of second-home ownership.
■ Sell the flexibility of a fractional purchase. Highlight the
exchanges possible across The Registry Collection portfolio –
whole ownership of a second home doesn’t offer the opportunity
to holiday on yachts, at ski lodges or fly in private jets.
■ Fractionals are an exclusive concept but they also make for
great family holidays. Family members represent the biggest
emotional trigger for any sale. Children like going on great
holidays especially when they can take their friends. You can
appeal to people this way, as even teenagers think of their
parents as ‘cool’ if they’re able to go on great holidays where,
instead of skiing or playing golf on computer games, they can
actually ski down the slopes and play golf on the same
courses as Tiger Woods.
■ Introduce resort ambassadors. People want to impress
friends and family and the best introduction for a potential
owner is to hear about this great concept from someone they
love and trust – it makes selling a great deal easier.
■ Use the fact that fractionals can be sold in perpetuity as a
selling point. Owners like the fact they can pass it on to
children or other family members. It makes a difference if
they feel they’ll get lasting value from the purchase.
exchange holidays with some. And it’s this community spirit that to Marbella for a holiday, Morelli is there to work which, for him,
shines through and is a huge selling point.” means selling a little bit of paradise each day and promoting the
Regency Resorts’ sales team use presentations to sell their product, timeshare dream.
as in other shared-vacation ownership resorts, but they utilise the His day usually starts with a 9am sales meeting with his team of
latest technology to help clients visualise themselves as owners. sales managers and representatives. Given his infectious positive
Gernon said: “Our sales staff meet clients for a champagne breakfast attitude, his sales team can look forward to a motivational talk every
and conduct a visual presentation on laptops. The clients are very receptive morning to prepare them for the day ahead and to discuss the
as the sales team have already developed a great rapport with them. activities and leads of the previous day.
“Being affiliated to The Registry Collection offers a greater choice When he’s not motivating his team, he’s keeping in touch with
of accommodation and holidays available to your owners. Showing his sales managers at five of the company’s Spanish resorts. He will
clients where they could exchange certainly helps. also personally take prospective purchasers on resort tours to ensure
“We then show them where various resorts are on Google Earth. they have all the information they need. And he can often be found
Being able to instantly zoom in on a US ski lodge or a coastal resort in helping sales reps to close deals at sales presentations by working
Mexico shows clients what they’re buying into. It’s a bit like reading a on pricing and specific requests.
book – you make up a picture in your own mind of what you’re buying. Although much of the work of a traditional timeshare sale is
“Once the sale is complete we get our clients to return and try the done in one day, Morelli likes to ensure his salespeople follow up
product as soon as possible. We get a lot of conversions from this with with friendly phone calls to customers, setting up individual
some members buying more time with each visit. presentations if required and being attentive to any requests. He
“In many ways it’s all very simple, but people like things that are encourages sales reps to take the opportunity to set up meetings
simple – so it works.” when they see people in the reception, by the pool or in the resort
restaurants.
THE TIMESHARE DREAM SALE Morelli says one of the most valued of his six sales channels to
KATHERINE STEINER-DICKS talks to Marcello Morelli, sales director of potential and existing timeshare owners is through agencies. He
Heritage Resorts, about what makes the timeshare sale tick. explained: “We have five outstanding resort locations on Spain’s
Morelli spends most of his days in an enviable location, Marbella, Costa del Sol, as well as two superbly located resorts in England. We
home to Heritage Resorts’ Club Playa Real. But while most people jet work with agencies by giving them free accommodation and/or
|
COVER FEATURE
QUOTE: OWNER REFERRALS, WHEREBY EXISTING OWNERS DISCUSS THE BENEFITS OF
OUR TIMESHARE PRODUCT WITH FRIENDS AND FAMILY, OR EVEN WITH FLY-BUY GUESTS,
REMAIN THE BEST WAY TO PROMOTE THE BRAND AND PRODUCT. MARCELLO MORELLI
the option of offering them a booking fee. We invite people to our

resorts in Spain and England on the condition that we are allowed a
small amount of their time via a no-obligation personalised sales
presentation. Obviously, having these important one-on-one
presentations makes it viable for us to give up the accommodation.”
Heritage Resorts’ next big sales channel is its owner referral
programme. “It seems that owner referrals, whereby existing
owners discuss the benefits of our timeshare product with friends
and family, or even with fly-buy guests on resort and at our weekly
welcome party, remain the best way to promote the brand and
product,” said Morelli.
He explained that incentives are offered to owners recommending
the Heritage Resorts’ product to friends and family, and these could
be a full year’s maintenance fee or a commission on the sale.
“Owners who successfully refer a client to us would get a higher
commission if the customer takes his promotional holiday during the
off-peak season, when occupancy tends to be lower,” says Morelli.
Marcello Morelli urges total transparency in dealings with potential “Another way we generate sales is through people coming to
purchasers with regard to the sales presentations and processes. stay with us on an RCI exchange holiday. After they’ve enjoyed the
Top left: The RCI Gold Crown resort of Heritage Resorts Club hotel, its facilities and local surroundings they will then attend an
Playa Real in Marbella, Spain, is marketed and sold in a informal meeting.”
professional manner befitting the quality of the property. As with all travel-based industries, the internet is a priceless sales
Top right: Heritage Resorts at Matchroom on the Mijas Costa, tool for Heritage Resorts. The company’s website, which caters for
an RCI Gold Crown property, is one of a portfolio of five of the its large English and Italian rental customer base, allows new rental
company’s Spanish resorts which come under the management of and enquiring customers to go online to see what’s on offer and
Morelli. learn more about the timeshare product.
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TOP TIPS TO
TIMESHARE SALES
■ Set the scene by making

sure the client is relaxed
and understands the
purpose of the sales
meeting. Ensure they have
a happy environment.
■ Advise clients of the
good, the bad and the ugly.
■ Deliver the sales
presentation with
enthusiasm, but don’t go
overboard. Respect
people’s space and keep a
happy medium.
■ Listen to the client
because it’s all about
fulfilling their dreams.
■ Your state of mind
should always be positive.
You have to believe that
everyone wins or else
you’re in the wrong
business.
But you can’t beat face-to-face meetings, which are always the best during our personalised presentations allows us to learn about
way for customers to develop an understanding of the product and, their holiday preferences and to explain the different options they
more importantly trust, according to Morelli. may find attractive. Our main Heritage product offers four
Of all the sales channels, cold calling is the toughest, as any different levels, allowing our owners to holiday at 25 different
salesman will tell you. But working from an established customer base resorts around the world. We have a very flexible product.”
does make things easier. Heritage Resorts’ telemarketing department The main concern timeshare owners have is availability of
deals with multiple nationalities and undertakes cold calling and accommodation and getting the week they want. This comes down
follow-ups to its own clients. This forms part of the owner referral to the fact that many have limited holiday times, especially during
programme. the school holidays. Morelli said: “These are the busiest periods for
“An element of trust is already built into the relationship,” says us and space is therefore limited so I urge customers to book as
Morelli. “This allows the telesales team to gently remind customers of soon as possible to avoid disappointment. Education in the proper
the added benefits of upgrades or perhaps considering referring use of timeshare is crucial, right from the sales deck.”
Heritage hotels and the RCI network to others.” Going back to the issue of trust, according to Morelli that
begins when a customer draws their own conclusions based on the
SALES PHILOSOPHY Morelli has naturally developed a sales information provided. He believes there’s a line to be drawn
philosophy, believing that a good product will not simply sell itself. between a salesperson being passionate about the product and
He said: “It’s very important in the timeshare business that when they’re just promoting the rosy side of things. He thinks the
everyone understands it’s vital, above all else, to have clients in latter approach is clearly insincere.
place. It won’t matter how good the product is, because if you don’t He said: “On arrival, guests are invited to our welcome party.
have a client base it will be virtually impossible to sell the product.” This is the perfect time for existing owners and fly-buy or other
Trust and an established track record in the industry work lead generation guests to meet. We also invite owners to let us
wonders, says Morelli, as does a reliable network of sales routes. know if they have any concerns, questions or requests to remind
“But I have to say that my sales philosophy or motto is to ‘Tell the them that we want them to have a stress-free holiday and no
client the good, the bad and the ugly’,” he adds. issue or question is ever considered trivial. In this way we’re
“Explain why they’re at the presentation and that there’s no showing guests who are prospective purchasers that we have
obligation to buy anything. The time that is spent with clients nothing to hide.” V
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workV-BizProfKLR xp6-sa-jp:Layout 1 8/9/08 16:40 Page 2
BUSINESS PROFILE
QUOTE: CADS HAD THE CAPITAL PROJECTS AND WE BROUGHT OUR TIMESHARE
SALES AND MARKETING EXPERTISE ... THE PARTNERSHIP OPENS UP A HOST OF
OPPORTUNITIES FOR US IN NEW DESTINATIONS. JACK MABLY
LION
ISLAND
Relative newcomer to the industry – and to Cyprus –
Kouroushi Lion Resorts is certainly making its presence on
the island felt with four quality resorts and a fifth due to open
shortly. SARA MACEFIELD takes a look at a company that has
its sights set on expansion, across Cyprus and beyond.
NO ONE could accuse Lion Resorts Vacation Club of resting opened on a prime site overlooking the sea near Paphos at
on its laurels. the end of July, boasts a wealth of facilities and has been
Having been in business for a relatively short time, the awarded RCI Gold Crown status.
Cyprus-based operation is sitting on the cusp of an investment The property comprises 113 spacious and modern one-,
wave with more than €120 million tied up in two new major two- and three-bedroom apartments, along with a wellness
developments on the Mediterranean island. centre and spa, squash court, gym, indoor and outdoor
But that’s not all. Three years after it was founded in 2002 by swimming pools, two bars, a la carte restaurant, and evening
industry champions Andrew Chapman and Jack Mably, Lion entertainment lounge and bar.
Resorts linked up with leading Cypriot entrepreneurs the However, the look and feel of the resort is more reminiscent
Kouroushi Brothers to form a new parent company, Kouroushi of a hotel configuration.
Lion Resorts (KLR). Mably explained: “When we acquired the land there was
This deal may have sealed success for the KLR partnership in already a building licence for a 250-room hotel. So, rather
its home market of Cyprus but, following a recent merger with than coming up with a new concept and applying for new
real estate and tourism giant CADS International, the company licence permissions, which would have taken at least 12
now has the rest of the world in its sights. months, it meant we could start work immediately using the
Mably, managing director of Lion Resorts, the sales and original footprint.
marketing entity of KLR, said: “It was a natural fit. CADS had the “The only changes we made were to the interior plan as we
capital projects and we brought our timeshare sales and converted a 250-room hotel to a timeshare property comprising
marketing expertise. The partnership opens up a host of 113 luxury self-catering suites. As a result, the whole project
opportunities for us in new destinations, including Eastern only took 15 months to complete, which is an amazing feat and
Europe, North Africa and the Far East. proves our decision to build our future with
“We are also looking to expand with leading developers in Chrysostomos and Kypros Kouroushi was BImages of KLR’s
year-round destinations throughout Europe using our very the right one.” contemporary
successful model.” Construction of KLR’s other new-build Capital Coast
resort, the Amphora Hotel Resort & Spa, is Resort & Spa will
WHAT’S NEW also under way. This property is being built be used to market
For the present, Lion Resorts is concentrating on its two newest in a prime beachfront location overlooking the resort in spa,
Group RCI-affiliated properties which will boost its timeshare Paphos harbour. At 40,000 square metres, lifestyle and
portfolio in its home market of Cyprus. the site is one of the largest of any leisure women’s
The contemporary Capital Coast Resort & Spa, which accommodation property in the area. magazines.
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workV-BizProfKLR xp6-sa-jp 1/9/08 13:51 Page 3
BUSINESS PROFILE
QUOTE: WE ARE LOOKING TO WORK WITH LARGE UK COMPANIES
WHEN IT COMES TO AFFINITY MARKETING THROUGH OFFERING
EMPLOYER/CUSTOMER BENEFITS. SEAN THACKER
The resort property will house 88 timeshare apartments, comprising a mix of ABOUT JACK MABLY
one-, two- and three-bedroom suites, some with lock-offs, plus three-bedroom Founder director of Lion
villas with private pools.The resort will have its own 1,200-square metre state-of- Resorts, Mably began his
the-art spa and wellness centre and there will also be a five-star hotel on site. Other career in timeshare in 1997
resort facilities include indoor and outdoor swimming pools, a chapel, small when he joined the Anfi
cinema, shops, restaurants and bars. Group, developers of the
The first phase, comprising 47 timeshare apartments, is due to open by the end Group RCI-affiliated Anfi del
of May next year, while the second phase, which covers the 73-room hotel and the Mar resort, which at the time had more
rest of the facilities, is scheduled to be completed in spring 2010. than 800 apartments and annual sales
On both properties, Lion Resorts is targeting the UK and Russia as its two key revenue of £60 million. Following the
source markets. acquisition of Anfi by the TUI Group in 1998,
which saw the expansion of the Anfi brand
THE RIGHT WAY TO SELL into Greece, Mably, as project director, set
The UK has long been linked to Cyprus through historical ties and, more recently, as up and managed the sales and marketing
an upmarket tourism destination.This was one reason why Chapman and Mably of three timeshare resorts across the Greek
chose the island for their joint venture in the first place. islands.
Mably explained: “The British market was well-established and inbound visitor
numbers to the island were high.We were also encouraged because Cyprus was due ABOUT ANDREW CHAPMAN
to join the European Union three years later.” Founder director of Lion
Since then, UK tourism to Cyprus has dropped.This has been attributed to Resorts, Chapman is a
increased competition from rival neighbouring tourist destinations, but the chartered accountant who
country’s relatively high cost of living – not helped by its adoption of the euro started his career with
earlier this year, which has been blamed for pushing prices up – has played its part Thomas Cook, where he
in reducing British tourism to the island. worked for 11 years. After
One issue that has undoubtedly influenced the island’s placing in the popularity working in the company’s finance
stakes is the ongoing problem of off-site personal contacts (OPCs) and their sales department, he became general manager
tactics, which amount to tourist harassment in many cases. Last autumn, the Cypriot of Thomas Cook Timeshare Holidays and
authorities tightened up legislation to stamp this out – but not before the image of led its expansion in this field.
timeshare on the island had been adversely impacted.
Lion Resorts wants to steer clear of building a reliance on OPC operations as its ABOUT SEAN THACKER
main sales tool and is, instead, looking at more imaginative ways to sell its Lead generation director,
timeshare weeks. KLR Hotels & Resorts,
Lead generation director Sean Thacker is putting together a package of measures Thacker joined the
that will become the company’s blueprint for timeshare sales. company last February and
It revolves around the key premise of enabling would-be buyers to sample the brings 15 years’ experience
timeshare resort while on holiday.The company has teamed up with tour operators in the industry with him.
such as Thomas Cook,Thomson, First Choice, MyTravel, Libra, Argo and Jetlife to He’s worked for TUI’s timeshare arm, as
send holidaymakers to its Capital Coast resort. Once there, they will be given the well as for Grecotel’s Galaxia Vacation
chance to attend a Lion Resorts Vacation Club presentation. Club in the Greek islands and Hilton’s
Matthew Metcalfe, the company’s sales director, said: “Usually people have been timeshare division.
brought into presentations from other hotels but in this case they will be staying at
the resort and I’m confident that it will sell itself.To rely on this as a key sales tool ABOUT MATTHEW METCALFE
you have to be sure your existing customers and guests will do the selling job for KLR sales director,
you – and I know ours will.” Metcalfe, joined the
The company claims this approach yields a 40 per cent conversion rate with a company in 2001. In 2003,
healthy average sales price – a figure it hopes to improve upon. at the age of 23, he became
Thacker explained: “We are now driving our efforts to source market generation one of the youngest sales
with offers for people to come and stay.We are working with large UK companies and marketing directors in
when it comes to affinity marketing, offering employer/customer benefits, and we’re the industry. His main focus is now sales
currently working on several promotions with the NHS in the UK among others. as the company expands its operation
“We’re targeting our advertising more carefully so, with Capital Coast, we’re throughout Europe and the Middle East.
choosing spa and lifestyle magazines and women’s titles. It’s not ground-breaking,
but it’s new for the company and we expect to use it as our model going forward.
Our key focus is on customer delivery in the source market, which is proving very B The stylish Akamanthea Holiday Village
successful for us as a company.With several new projects and developments in the is one of six – soon to be seven – KLR
pipeline this is a key area for our growth.” V resorts in Cyprus.
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KOUROUSHI LION
RESORTS (KLR) –
THE FACTS
Formed in 2005 as a
joint venture between
Cypriot developers, the
Kouroushi Brothers –
founded by Kypros and
Chrysostomos
Kouroushi, and Lion
Resorts – a vacation
membership sales and
marketing company
established by Andrew
Chapman and Jack
Mably in 2002
KLR has two
business divisions: KLR
Hotels & Resorts and
Lion Resorts Vacation
Club.
In May 2008 KLR
merged its shared
vacation membership
business with
Trustwise Holiday
Resorts, owned by
CADS International, a
real estate, hospitality
and tourism
development group.
KLR currently
owns or manages nine
resorts, with the tenth
due to open next year.
In Cyprus they are:
Akamanthea Holiday
Village, Aliathon
Holiday Village,
Malama Holiday
Village, Laura Beach
Resort, Cypria Maris
Resort and the RCI
Gold Crown resort
Capital Coast Resort &
Spa. They will be joined
by the Amphora Hotel
Resort & Spa next
spring.
In Egypt it markets
two resorts: Tamra
Beach Resort and
Rehana Sharm.
In Zante the group
has one: Erietta Luxury
Suites.
workV-IFA5 xp6-JP:Layout 1 8/9/08 16:38 Page 2
FRACTIONAL RESORT
QUOTE: WE WANT TO OFFER PRODUCTS THAT ENCOURAGE A RELATIONSHIP
BETWEEN OURSELVES AND OUR CLIENTS. WE FELT THAT A PRC WAS A
PERFECT EXTENSION OF OUR PRODUCT PORTFOLIO. PIARAS MORIARTY
Kuwait-based IFA Hotels & Resorts has a wide-ranging portfolio,

from hotels to high-end whole-ownership, timeshare,
fractionals, Private Residence Clubs and even yacht ownership
clubs. STEVE ADAMS looks at how all these elements of leisure
real estate work under one corporate roof.
MAKING A SPLASH…
IN AUGUST 2008 IFA Hotels & Resorts (IFA mix of products that you have at the development,
HR) announced year-end profits of $143 million creating higher occupancy rates and a reduction
(€97m), a huge increase of 64 per cent on its in operating costs. For instance, instead of having
2007 figures. During the same period, total one general manager for the PRC and another for
revenues rose 86 per cent, from $113.88m the hotel you have one for the entire complex.”
(€77.53m) in 2007 to $211.47m (€143.97m) Kevin Wash, deputy vice president, vacation
during 2008. ownership, says developing a PRC was a natural
The impressive figures are attributable to step for IFA HR.
Kuwait-based IFA HR’s wide array of business “The benefits of mixed-use properties have
interests, which range from land holdings to always featured very clearly in the development of
resort development and management. Vacation the company,” he said. “This is one of the
ownership, in its various forms, is playing an strategies that separates IFA HR from most
increasingly important role in the company’s property developers – we want to offer products
financial results, and one that is likely to continue that encourage a relationship between ourselves
as the company pushes ahead with ambitious and our clients. We felt that a PRC was a perfect
plans for global expansion. extension of our product portfolio.”
Piaras Moriarty, IFA HR’s vice president, Moriarty added: “Ultimately the client gets a
vacation ownership, said growth plans followed a better service and better amenities as a result of
methodical strategy covering three main areas – being in a mixed-use environment.
hotel development, which is the company’s initial “After all, you wouldn’t build 10 restaurants if
core business, vacation ownership and real estate. you only had a vacation club or a PRC, but they
He said: “When you develop all three products will be part of a development when there is a
at the same time in a single resort, the synergy hotel and so on.”
through the businesses makes the expansion a lot Size has other benefits. IFA’s worldwide
more effective. network of properties and brands includes
“Since you’re developing a market for real Fairmont Hotels & Resorts, Kempinski Hotels,
estate you’ll also get people who are interested in Mövenpick Hotels & Resorts and Sheraton Hotels
buying fractionals, vacation ownership and Private & Resorts. There is also a Vacation Club and
Residence Club (PRC) membership, and that all soon-to-be-launched ‘IFA Collection’, which
raises awareness of the hotel once it opens. So incorporates its high-end Fairmont Heritage
they all feed from each other.” Place-branded properties. These various resort
properties are able to effect internal exchanges for
MORE TO MIXED-USE their guests.
Moriarty said IFA HR saw the potential for the
development of fractional properties and PRCs THE REGISTRY COLLECTION OFFERS MORE
following the success of its first vacation club The company has also recently affiliated a number
product at the Pine Cliffs mixed-use resort in of resort products – including its innovative IFA
Portugal some 15 years ago. Yacht Ownership Club (see opposite page) – to
He said: “Vacation ownership was obviously a the prestigious portfolio of premier
very positive factor in that development. Fractional accommodations, The Registry Collection (TRC).
ownership came as a result of that success. TRC affiliation offers owners even greater choice
“The main advantages are that it adds to the of destinations, according to Wash.
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workV-IFA5 xp6-JP 1/9/08 15:34 Page 3
One of the IFA

Yacht Ownership
Club vessels
which come with
full crew and chef.
MAKING WAVES
The IFA Yacht Ownership Club is making waves in the leisure industry as a
flexible way to enjoy a luxurious yachting lifestyle without needing to find
the capital, maintenance and management costs to support full-time yacht
ownership.
With yachts – complete with crew including on-board chefs – based in
the Arabian Gulf, Red Sea, Caribbean and east and west Mediterranean,
the club has proved so popular there is a 100 per cent renewal rate on its
annual membership, according to Piaras Moriarty, IFA HR vice president,
vacation ownership, who says the product was largely developed in
response to customer feedback.
He explained: “We had a portfolio of customers who had purchased
high-end properties and villas from us, and from feedback we knew they
wanted to enjoy yachting, but it didn’t make sense for them to own one
yacht in one destination or two yachts in two destinations. So the yachting
club came about from requests from our customers.”
Moriarty said the initial product – based on the timeshare model with
customers buying a week for five years and pre-booking its use – didn’t
really work. The company opted instead for an annual renewable
points-based membership.
“It’s a very straight-forward concept,” he said. “You take the whole cost
of the product, divide it among a certain number of members and they get Pictured at the signing of IFA Yacht Ownership Club to The Registry
a better price, you make a bit of profit and there are benefits for Collection are, from left, Shafi Syed of RCI Middle East, Piaras Moriarty
of IFA Hotels & Resorts, Geoff Ballotti, Group RCI president and CEO,
everybody… you are simply utilising your asset more effectively.” Talal Jassim Al-Bahar, chairman of IFA Hotels & Resorts, and Nick
Turner, vice president, Group RCI business development.
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workV-IFA5 xp6-JP:Layout 1 8/9/08 16:38 Page 4
FRACTIONAL RESORT
QUOTE: THE QUALITY AND DESTINATION DIVERSITY OF
THE REGISTRY COLLECTION MERGES PERFECTLY WITH
THE BUSINESS ETHICS OF IFA HR. KEVIN WASH
A view of the pool from one of

the lodges at Platinum Private
Residences: Zimbali Beach
Estate, an IFA Collection Club
property in South Africa which
has now joined The Registry
Collection.
He explained: “This serves to in the knowledge of the standard of

enhance the benefits of our products, accommodations they will find.
and TRC also provides resorts which “The quality and destination
meet the exacting standards that we diversity of TRC merges perfectly with
demand.” the business ethics of IFA HR, and we
Wash said positive member are aware that there is controlled
Piaras Moriarty
feedback during IFA HR’s 15-year expansion of TRC, which will continue
relationship with Group RCI through to enhance its standing.”
its timeshare units at Pine Cliffs – Moriarty said he expected TRC to
which is affiliated to Group RCI’s be more popular with members of IFA
exchange network and is an RCI Gold Vacation Club than fractional owners.
Crown property – played a key role in He explained: “Exchange is always
encouraging the company to sign up important, but typically a PRC Kevin Wash
to TRC. member buys to use that property,
He added: “From our Pine Cliffs though over time he might want
BPine Cliffs,
ownership we know that our clients additional options and the chance to on Portugal’s
truly appreciate the wider resort exchange. Exchange is therefore a Algarve,
exchange facility, and that it major priority and TRC is very brought IFA HR
into resort
encouraged them to travel to important to us – we’re keen to add development in
destinations previously unvisited, secure more and more inventory to it.” the mid-1980s.
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workV-IFA5 xp6-JP 1/9/08 15:47 Page 5
IFA HR AND THE REGISTRY COLLECTION

IFA Hotels & Resorts signed its agreement with The
Registry Collection at the Arabian Hotel Investment
Conference earlier this year.
The affiliation will give IFA Collection Club
members access to more than 100 prestigious
developments within The Registry Collection.
Properties within IFA HR’s portfolio, including Pine
Cliffs in Portugal, the IFA Yacht Ownership Club and
future resorts such as The Palm Residence and the DAn interior at
Kingdom of Sheba on the Palm Jumeirah, Dubai, and Pine Cliffs resort
Zimbali in South Africa, will be added to The Registry characterises the
upscale offering of
Collection. the IFA HR product.
DIVERSITY AND DISTINCTION

The company has a number of expansion selecting and developing properties that are
plans. Private Residence Club properties will unique – in terms of destination, design,
soon be available at Fairmont Heritage Place structure of product and management – helped
Zimbali in South Africa and Fairmont Heritage it to succeed in a tough economic climate.
Place, Kingdom of Sheba on Dubai’s Palm “When people say ‘recession, recession,
Jumeirah – and that’s just the start according recession’, it really depends on what you’re
to Wash, with Zanzibar, Thailand, South selling,” he explained. “If you’ve got a
America and the Seychelles also on the run-of-the-mill product that’s the same as
horizon. thousands of others on the market then of
“We’re currently reviewing locating course you’ll be affected by recession.
Fairmont Heritage Place properties in a number “But if you’ve got a property which is
of destinations, and believe the expansion of unique, and full of attributes and benefits, then
the product is key to the future growth of you’ll be less affected or even bypass recession.
sales,” he explained. So far we’ve had no negative or adverse
“We look everywhere,” added Moriarty. reaction. Our first year of selling fractionals in
“Markets change and opportunities present Dubai exceeded our expectations – we’ve very,
themselves. We’re very flexible and we develop very happy with the results.That’s due to good
products for consumers in various markets.” products, good location and good people
Moriarty also said the company’s strategy of selling them.” V
|
Ventures 1-4 page Oct08 ads:Layout 2 9/9/08 12:06 Page 1
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workV-Mkting xp6-rb-JP:Layout 1 8/9/08 16:37 Page 3
MARKETING
QUOTE: IT’S NO LONGER ENOUGH TO BE SELLING JUST A PRODUCT AND THIS IS
PARTICULARLY IMPORTANT WITH FRACTIONAL OWNERSHIP AND TIMESHARE
OFFERINGS TARGETING THE MORE SOPHISTICATED, WEALTHY CONSUMER. CHRIS EVANS
LIFESTYLE FOCUS Evoking the right ambience and eliciting the

desired emotional response is particularly important when marketing to the buyers
of high-end properties. CHRIS EVANS, head of creative at Creative Action Design,
highlights the ways in which marketing materials can make the difference.
Chris Evans
believes
‘lifestyle-focused’
customers are
smart with their
time and their
money.
IN RECENT years we have seen a massive re-definition of be smart with their time. For them this is considered to be
what people aspire to have and what luxury desirables are the real luxury. To purchase something that not only adds
actually perceived to be. value to, but also smoothly integrates with their often
Rather than accumulating more things – whether cars, pressurised lifestyle, is vitally important.
yachts, or holiday homes – people are craving 360-degree By being sensitive to these customer characteristics we
lifestyle experiences. It’s no longer enough to be selling can understand the needs and requirements, aspirations
just a product and this is particularly important with and desires of this market more fully and communicate to
fractional ownership and timeshare offerings targeting the them in a far more considered, effective and engaging way.
more sophisticated, wealthy consumer. I would suggest there are six key things that every
This market, driven by the need for ‘lifestyle company operating in this market should consider. Firstly
experiences’, can be broadly defined as ‘cash-rich, about themselves as a brand, and then in the way they seek
time-poor’. Not that they waste their money, quite the to target their potential customers in any communication –
opposite in fact. These customers are very smart with whether marketing, advertising, branding, online, or in the
their hard earned cash and it makes considerable financial services they offer.
sense for them to acquire fractional or timeshare-based
items – to be able to use something only at the times they 1. INSPIRATION
want to. Take a yacht company, for example. The focus of
However, even more potent than being savvy with their communication should be on creating inspiring images
money, is the desire of the ‘lifestyle-focused’ consumer to appealing to the consumer’s senses, conveying the feeling
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workV-Mkting xp6-rb-JP:Layout 1 8/9/08 16:37 Page 4
MARKETING
QUOTE: THE FOCUS OF COMMUNICATION SHOULD BE ON CREATING
INSPIRING IMAGES APPEALING TO THE CONSUMER’S SENSES,
CONVEYING THE FEELING OF ACTUALLY BEING THERE. CHRIS EVANS
of actually being there. The sound of the lapping water, the On the opposite page are a couple of examples of
smell of the fresh sea breeze and the colour of the clear advertisements we designed for a fractional ownership
blue ocean, goes way beyond the value of the actual classic car club called Parc Ferme. In the ‘Parc & Ride’
product alone. It sets a scene and tells a story that people advertisement we use a humourous pun on the name of
can imagine themselves in and they aspire to be part of the club – ‘Parc’ – to illustrate that members can just drop
that scene. in and drive away. In the ‘No overheads’ advertisement
there is a play on the fact there are none of the overheads
2. INTRIGUE of full car ownership and we use the image of an open-
Most importantly in initial contact, and then also to topped classic car which is a model many people dream of
enhance and support the sales process, the visual driving. Both pieces take a whole offering and condense it
communication needs to be eye-catching and tease down into a statement that speaks to people directly and
browsers to discover more. clearly, cutting through the clutter that bombards people
Giving someone all the information in one go and every day.
leaving them with no journey of exploration can be an
anticlimax that can put customers off altogether. It’s vital to 5. CONSISTENCY
create touch-points or situations that people can relate to Communicating your brand values starts from the first
and desire for themselves. point of contact with the customer. The whole process
When promoting fractional or timeshare-based second needs to be thought through thoroughly to create a
homes, a great way of doing this is with images of people seamless and holistic experience.
rather than shots simply of the rooms set out like show From a purely marketing point of view, you’re only as
homes. A focus on the atmosphere and ambience of a strong as your weakest piece of communication. I’ve
destination will leave people with a deeper and more come across companies that have spent thousands of
satisfying all-round experience. pounds on high colour brochures – and then haven’t
The pressure to show lots of nice pictures of rooms bothered to post complete and appropriate contact details
showing exactly what they will get, I believe, not only on their website. How many businesses spend thousands
stifles the customer’s curiosity and interest but can come on advertising campaigns only to have nobody on the end
across as a representation of a generic one-size fits all of the phone who can help follow up interest and
offering. demand?
The need for a cohesive brand experience is essential
3. EXCLUSIVITY and any areas where consistency is not maintained will be
Being made to feel special and unique really motivates the apparent immediately and could lead to the whole offering
affluent customer, and this needs to be harnessed when being disregarded out of hand. There’s no point promising
communicating with them. All marketing materials need to an upscale lifestyle experience as an end product if the
clearly convey visually that the customer will be treated as process of getting a person there isn’t supportive of it.
an individual.
Any insensitivity to this on either a service or visual 6. INNOVATION
communication level can seriously undermine an offering, Whether using alternative ‘ambient’ advertising, or
no matter how good it actually is. However if it’s well harnessing new online social networking sites, being
considered and applied, ‘exclusivity’ can be an incredibly innovative in communicating with this consumer category
valuable tool to drive sales and generate interest. is vitally important.
The market is always changing and your competition
4. CLARITY is always evolving, so brands, communications and
To be able to stand out visually and strategically from an offerings need to be kept fresh and innovative to achieve
increasingly crowded marketplace is becoming more that all-important competitive advantage.
challenging. Therefore it’s vital to have a brand that is
distinctive, communicates clearly and articulates what is For any company to fully maximise the opportunity that
special about your product and your owners. exists they need to remember the pressures the lifestyle
The concept should be easy to explain and, more customer groups have on their time, as well as their
importantly, easy for the customer to understand. Whether preference for experiential holidays. Given the sensitive and
on the shelf, on the screen or on the page, you only have a diplomatic application in the six areas outlined above to all
fraction of a second to attract a customer. aspects of communication, I believe a company can
The questions that must be asked when reviewing distinguish its brand. There is no doubt that the financial
materials are: (i) can pages of information be reduced to a benefits of inspiring and engaging this booming and
single powerful statement, and (ii) is there a single image affluent market sector will be considerable. V
that will carry the message of a thousand words with
greater emotional impact? ■ For more information email: chris@creativeaction.co.uk
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workV-Mkting xp6-rb-JP 2/9/08 17:04 Page 5
CThis advert reduces the whole concept behind the fractional classic car club down to a simple picture which intrigues and inspires
the audience.
DEmotive image and a clever play on words and the company name strengthens the brand and creatively sells the dream.
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workV-Legal xp6-rb-JP:Layout 1 8/9/08 16:36 Page 2
LEGAL
JAMES EVELING, managing director of

Eveling Legal & Advisory, is advising
an increasing number of purchasers
of fractional properties at his boutique
legal practice in south-west England.
He shares his initial experiences in
this property sector.
FRACTIONALS FROM A
LEGAL PERSPECTIVE
SINCE advising on one of the we’re talking to is that
first independent-developer provided they get the product
fractional ownership projects in right, they’re confident of
the south-west of England just achieving the desired level of
over two years ago, there’s no sales, regardless of the overall
question that we’ve seen health of the economy.
interest levels in new fractional It would be misleading to
James Eveling
projects rise dramatically. suggest that we’ve not seen
Existing owners and any barriers or concerns in want to control the timing on purchase as a residential
external developers of hotels, setting up new projects, but the buy-back option, but we property transaction, which is
holiday cottages and apartment this is always going to be the have not yet found this to be a inappropriate and caused
complexes are beginning to case until the market matures problem from the owner/ delays and increased costs for
realise the potential in selling in this country. developer’s or, more all sides. We have attempted to
fractionals, as opposed to the One of the major issues importantly, the purchaser’s deal with this by establishing a
traditional holiday ownership we’ve had when advising on point of view. link with another firm of
models. new fractional developments One of the other main solicitors with knowledge of
Positive and increasing has been to educate the bank issues I repeatedly encounter this market and which has
media coverage of fractionals lenders as to how the is concern about the potential been able to provide
has, in my opinion, helped to ownership model will work, purchaser’s acceptance and independent fixed-fee advice on
raise both developer and public how it will affect the security limited knowledge of the scheme documents to
interest levels in the product in they are holding over the land/ fractionals – it being a potential purchasers.
the UK. We notice that clients buildings and how they will get relatively new concept in the Without doubt, funding
now have a far greater their money back. In some UK. In projects we’ve been needs to be carefully structured
knowledge and understanding cases, the bank’s initial involved in, we work closely so as not to cause a barrier to
of the fractional market and demands for retention of with the developer client and granting unencumbered
the options available to them security have been marketing advisers to provide ownership rights to the
than was the case even 12 incompatible with the legal concise, plain English ‘Legal purchaser. Sensibly drafted
months ago. ownership models we have Q&As’ in the marketing marketing and legal scheme
While the current recommended. There are literature and buyer’s guides, documents will assist those
economic climate is certainly solutions to this and one of the with diagrams setting out purchasers who are new to the
resulting in increased caution ways around this problem has exactly how the legal scheme idea of fractional ownership.
across the board, past studies been the use of owner/ is put together. Because, as I believe,
indicate that shared- developer buy-back options The issue of limited fractionals are beginning to
ownership models have within the sales agreement. purchaser awareness has, at take off in Europe, it’s
actually benefited from This ensures that if sales don’t times, led interested important that contracts are
economic downturns, as go to plan, fractionals can be purchasers to instruct their properly prepared and
purchasers look at alternatives bought back by the developer local high street solicitor to structured to ensure that
to whole second home and therefore brought back advise them on the fractional purchasers and developers are
ownership. The view among within the bank’s overall purchase. This has led to those assured a positive experience
the majority of new entrants security. The bank may well advisers treating the fractional in this exciting new market. V
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workV-Green xp6-sa-rb-JP:Layout 1 8/9/08 16:33 Page 3
GREEN ISSUE
QUOTE: WHEN WE BEGAN BUILDING, IN SOME COUNTRIES WE HAD TO ADAPT TO THE
DIFFERENT ENVIRONMENTAL REGULATIONS...WE SOON REALISED THAT THESE ADAPTATIONS
WERE ACTUALLY A VALUE OUR CLIENTS WERE DEMANDING. IVAR YUSTE
Consumers and industry leaders are increasingly

realising the importance of reducing the carbon
footprint and sustaining our environment.
GAYLE GREEN takes a look at the
eco-friendly initiatives of two resort
developers who are working to
reduce the environmental impact
of their operations.
THERE was a time when

travelling abroad was a luxury
reserved only for the wealthy. Then the
hospitality industry saw the emergence
of purpose-built resorts, low-cost
airlines and affordable cruises, all of
which made worldwide travel an
option for almost everyone.
Before long, the leisure and tourism
trade was booming, and hotels, apartment
blocks, timeshare resorts and rental villas
were springing up in every available tourism
destination around the world. Everyone
involved in the hospitality industry was enjoying
unprecedented growth. But, in hindsight, had
anyone considered the impact that building At the top end of its market,
resorts and transporting tourists around the world Hotetur boasts the BlueBay brand embracing
on such a scale might have on the environment? BlueBay Hotels & Resorts and the BlueBay
After all, a healthy and attractive environment is Vacation Club, currently comprising eight hotels
the goose that lays the golden eggs for any and resorts in Mexico, Cuba, the Dominican
business associated to the tourism industry as a Republic, the Canary Islands and Morocco. Many
whole. of these upmarket properties are located in
Today a very different world is emerging. It’s protected coastal areas.
one in which corporate responsibility is taking Ivar Yuste, managing director, corporate
pride of place on the business agenda and development for Hotetur, said developing tourist
beginning to force tourism companies to look at destinations in environmentally-protected areas is
how they can contribute towards protecting the what the four- and five-star BlueBay brand has
environment while at the same time expanding been built on.
their business. Yuste explained: “When we began building, in
some countries we had to adapt to the different
ENVIRONMENT AND BRAND GO HAND-IN-HAND environmental regulations in the way we Ivar Yuste,
One company which appreciates this better designed and operated our resorts. managing
than most is the Marsans Group, Spain’s largest “We soon realised that these adaptations were director,
corporate
tourism company, which owns Hotetur Hotels actually a value our clients were demanding, so it development
& Resorts. made business sense as well as environmental for Hotetur.
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workV-Green xp6-sa-rb-JP 2/9/08 13:47 Page 4
GREEN ISSUE
THE GREEN GLOBE PROGRAMME
The Green Globe Programme is a BRONZE: SILVER: GOLD:

travel and tourism benchmarking To achieve Bronze To achieve Silver certification, an An organisation which
and certification scheme which status, an organisation must: maintains its Silver
provides an environmental organisation must ■ Comply with relevant legislation certification for five or more
management framework to establish a and policy requirements continuous years will receive
enable organisations to achieve sustainability policy ■ Implement an environmental a Gold logo award.
sustainability. and complete a and socially sustainable approach
There are three levels to the benchmarking ■ Document its performance
programme: benchmarking assessment. When outcomes For more information visit:
(Bronze), certification (Silver) and this is achieved, it can ■ Communicate and consult with www.ec3global.com/products
the right to use the logo (Gold). apply for Silver status. interested parties. -programs/green-globe
sense for us to embrace eco-friendly initiatives from the BE BOLD AND BRAVE
start.” But BlueBay is not the only RCI-affiliated resort which is
For example, in Mexico BlueBay was required by law to committed to protecting the environment.
build around protected plant species when constructing its In the UK, Russell Waters, general manager of the
Grand Esmeralda Resort. The resort was designed to Barnsdale Country Club in Rutland, has introduced a
regulate the drainage of water so that, as well as reserving number of new recycling initiatives since joining the
water, it provides a biological corridor for the species of resort last September.
fauna growing there. The Barnsdale development, an RCI Gold Crown resort,
The resort also uses biodegradable chemical products includes a 66-bedroom hotel and 49 lodges. Waters says
throughout its housekeeping operations to ensure it when he joined, the lodges had no facilities for recycling
doesn’t pollute or damage the environment. A biological their rubbish and when he approached the local
system at its sewage treatment plant ensures all possible authorities to help, he got a limited response.
water from the process is treated and reused in the resort’s Not deterred, Waters employed a private company to
garden watering system. provide recycling bins on site. Each bin is easily accessible
Another initiative involves children visiting Grand but has been strategically placed to blend in with the
Esmeralda being encouraged to go on ecological walks surroundings so it doesn’t create an eyesore. Owners and
which are designed to educate them, while having fun, their guests can now recycle paper, plastic bottles, glass
about the importance of protecting the natural world. and cardboard.
Crucially, the resort uses an energy-saving system Spurred on by the success of the recycling bins, Waters
whereby magnetic switches will automatically cut the got to thinking about the amount of mineral water sold by
power in rooms when it’s not needed. The air conditioning the resort each week.
is regulated by sensors in sliding doors which respond to He said: “I read an article which said three billion
whether or not the guest is in the room. bottles of mineral water are drunk in Britain each year and
For Yuste, planned expansion of BlueBay means more of of those, half a billion are transported from overseas.
the same eco-friendly concepts. The group is planning “That means more than 33,000 tonnes of carbon
another eight hotels and resorts over the next 18 months, dioxide is emitted every year in transporting bottled water
two of which will be golf resorts in Spain. in the UK alone.”
At both golf resorts a special type of grass will be used Waters calculated that Barnsdale supplied between 250
which can be irrigated by salt water. Yuste explains: “In the and 400 plastic bottles of mineral water to its conference
areas in which we’re developing there is a lot of and event delegates every week. He decided to withdraw
agricultural land which takes the priority for the available mineral water from functions and serve fresh tap water
water, so we had to find an alternative to the use of fresh instead. If mineral water is requested it’s explained to
water for our thirsty golf courses.” guests why tap water is being suggested, but that mineral
At all of its resorts BlueBay management policies water can be provided if essential.
encourage guests to separate organic and non-organic It was a brave move which has paid off, as Waters
rubbish, recycle paper, switch off lights and electrical explained: “We have had nothing but overwhelming
appliances when not in use, use biodegradable sunscreens, support from our guests. We’ve even had letters from
reuse towels and refrain from dropping litter and cigarette some saying ‘thank goodness someone has taken the
ends. initiative’.”
In fact, to prove its commitment to leading the way in Waters is positive about the future and intends to
environmental protection, BlueBay has introduced its own continue to find ways that Barnsdale can do its bit to
BlueBay Means Green strategy. The group is currently in protect the environment.
the process of certifying four of its existing eight resorts He said: “Recycling is a way of life today. It’s on
under the Green Globe Programme, an external measure everyone’s mind to help save the planet and the more we
for the tourism industry (see panel, top). can do through business, the better.” V
|
workV-Green xp6-sa-rb-JP 2/9/08 14:39 Page 5
CChildren visiting Grand

Esmeralda are taken on
walks to educate them about
protecting the natural world.
BHotetur’s BlueBay group

has developed many resorts
in environmentally-protected
areas, and has introduced its
own Bluebay Means Green
strategy. Pictured is the
BlueBay Villas Doradas hotel,
in Puerto Plata, DR.
ARussell Waters with some of

the recycling bins at Barnsdale
Country Club, which are
carefully hidden but accessible
to encourage guests to recycle
as much as possible.
DGuests and owners at

Barnsdale have been very
positive about the
management’s recycling
initiative.
|
workV-FinalCall xp6-saVERS6-rb-JP:Layout 1 8/9/08 16:31 Page 2
FINAL CALL
QUOTE: GOOGLE REWARDS A HIGH CLICKTHROUGH RATE
BY PLACING THE ADVERT HIGHER IN THE LISTING WITH
A LOWER COST PER CLICK. SHANE QUIGLEY
There’s a real buzz about online advertising

and we all think we can do it. But as
SHANE QUIGLEY, director of Epiphany
Solutions, explains, a little understanding of
the process goes a long way to getting the
biggest bang for your buck.
ONLINE ADVERTISING –
MAXIMISING RETURNS
‘‘
Every month hundreds of thousands of and one per cent of
people in the UK alone search on Google for visitors sign up, then
their dream holiday. It’s a fantastic sales portal and each visitor effectively
to use it effectively all you need is a good website generates £1 of
and a working knowledge of how the Google search revenue. There’s no
engine works. point in paying more
As well as listing the most relevant websites, than this per click, in fact you should bid less than
Google also displays paid-for listings, using its this to make any profit, though bid too low and
pay-per-click business, Adwords. nobody will even see your advert. The right balance
Adwords is basically an auction – you pay for each must be found.
click on your advert and the more you’re willing to pay Adverts – Adverts need to do four things. Firstly,
per click, the higher in the listing you appear. they need to catch people’s attention and
It’s a simple concept but you need to understand capitalising each word, using eye-catching words
Adwords to mount a successful campaign. There and quoting prices will help. Secondly, they need to
are a number of critical components, the main ones persuade people to clickthrough your advert rather BIO NOTE
being your keywords (the words you want to bring than someone else’s, so highlight the advantages Epiphany Solutions
your advert up on screen), your bids (the amount and special features of your resort and services. specialises in search engine
you’re willing to pay for each click), the quality of Thirdly, you need to dissuade people who aren’t marketing – a highly
your adverts and your website. really interested by making clear exactly what you’re targeted, flexible and
Keywords – If you’re going to pay for visits to offering, particularly if you’re bidding on a keyword interactive online marketing
your site you need to convert them into business. that’s only marginally relevant. Finally, your advert tool. Shane Quigley, director,
Just because lots of people are searching for needs to be relevant to the search query. If it is, is responsible for new
‘package holidays in Spain’, it doesn’t mean you Google will reward you with lower costs per click product development.
should be bidding on it, as most searchers won’t and including the keyword in the title helps here. Quigley has more than
click on your advert and the ones that do won’t really Website – If your site is only converting one per 10 years’ experience within
be interested in buying a timeshare. cent of visitors and your competitors are converting the technology and software
To get the best from search engine marketing, twice that, they can afford to spend twice as much sectors and has won and
it’s important that searchers click on your advert per visitor and still make the same profit. Put managed accounts with
because the clickthrough rate is used by Google to another way, the better your site converts, the more several multinational
assess how relevant your advert is to searchers. you can afford to bid and so the higher up in the companies, including
Google rewards a high clickthrough rate by placing listings your advert will appear giving you a bigger Experian, Bearings, AXA,
the advert higher in the listing with a lower cost per piece of the pie. 3 Mobile and HSBC. His
click. Those with a low clickthrough rate will end up Google Adwords offers a level playing field for experience extends to
paying a lot more than their competitors for each everyone – anyone can appear top of the results, helping small UK-based
click and potentially appearing below them in the regardless of the size of their business. But some firms expand into Europe
results! campaigns are more equal than others. and the US.
Bids – You need to work out how much the Understanding how to make Adwords work for you For more information tel:
searchers clicking on your advert are worth to you. can put you ahead of your competitors +44 (0)870 199 6382 or visit
’’
If you make £100 from each person that signs up, and contribute to profits generated online! www.epiphanysolutions.co.uk
|
The Registry Collection
your essential partner for fractional,
whole ownership and luxury leisure real estate
The Registry Collection Rental and Exchange Programme is the leader in Luxury Exchange
and Rental; servicing more than 20,000 exchange members at more than 130 resorts worldwide
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Ultimate Luxury. Unlimited Opportunity.SM
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Enterprising ideas for the vacation industry October 2008

STRATEGIES THAT UNLOCK THE DOOR

VENTURES MAGAZINE SERVING RCI’S MARKETS IN

VENTURES NEWS ONLINE Resort in the Costa del

TURKEY TAKES SPAIN’S SALES HEAD FOR

RCI Ventures, October 2008 5|

ANFI SCOOPS PROPERTY AWARD

THE YEAR IN BRIEF

BUSINESS BUILDERS Sharing the confidence of

TEN NEW PLACES

CAPITAL COAST RESORT &

TATIL BORASI YACHT CLUB, TURKEY

TEOSPA HOTEL & SUITES, TURKEY

TATIL BORASI YACHT CLUB, TURKEY

IVORY GRAND HOTEL APARTMENTS, DUBAI

CITY SPA RESORT FACTS & STATS TOP EXCHANGE CHOICES

HOW RENTALS AND REAL ESTATE MEASURES UP

THE GROUP RCI VIEW

THE LIFE OF A FRACTIONAL SALE A client’s signature on a sales

TOP TIPS TO FRACTIONAL SALES

■ Emphasise the low capital requirement of a fractional

the option of offering them a booking fee. We invite people to our

■ Set the scene by making

Kuwait-based IFA Hotels & Resorts has a wide-ranging portfolio,

One of the IFA

A view of the pool from one of

He explained: “This serves to in the knowledge of the standard of

IFA HR AND THE REGISTRY COLLECTION

DIVERSITY AND DISTINCTION

LIFESTYLE FOCUS Evoking the right ambience and eliciting the

JAMES EVELING, managing director of

Consumers and industry leaders are increasingly

THERE was a time when

The Green Globe Programme is a BRONZE: SILVER: GOLD:

CChildren visiting Grand

BHotetur’s BlueBay group

ARussell Waters with some of

DGuests and owners at

There’s a real buzz about online advertising

The Registry Collection Rental and Exchange Programme - a unique opportunity

For more information call 0845 608 6117 or email uk@registry-collection.com

Ultimate Luxury. Unlimited Opportunity.SM

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

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