Leisure

Real Estate
TRENDS & OPPORTUNITIES
 Acknowledgements
Leisure and Real Estate Trends & Opportunities is designed for senior decision makers in
organisations with the potential to enter the shared-holiday ownership leisure real estate market.
It provides a starting point, together with some analytical tools and insights, to help determine
whether this industry will help to grow your business and revenues. It will give you the key topics
to be discussed with your professional advisors.

The following pages will help you to ask and answer the right questions as you evaluate your first, or
next, shared-holiday ownership opportunity.
This handbook would not have been possible without the contribution of many in the industry.
RCI would like to thank the following for their generous participation in this edition of the
shared-holiday ownership industry handbook.

Philip Bacon Jason Gamel

Director, Planning & Development/Valuation, President & CEO of ARDA
Horwath HTL
Ramesh Ramanathan
Paul Gardner-Bougaard Chairman and Managing Director, Sterling
Chief Executive, RDO Holidays, India; Executive Committee Member,
AIRDA
Susan McFadyen
Director Business Services - Corporate and Tony Ridl
Commercial, Blackadders LLP, Solicitors Managing Director, Club Leisure Group;
Chairman of VOASA
Sue McNicol
RDO, UK Head of Operations Juan Ignacio Rodriguez
Executive Director, RCI Mexico;
Eugene Miskelly Chairman of the Board of Directors
Chairman & Board Member, (2019-2020), AMDETUR
RDO Legislative Counsel
Isabella Ng
Perry Newton Director, Business Development North Asia,
Managing Director, Azure Malta RCI Asia Pacific

Leisure Real Estate Trends & Opportunities is offered as a toolkit to senior leaders of hospitality and real estate development companies so
that they can more efficiently evaluate opportunities in the holiday ownership, fractional and private residence club markets, and determine
if shared-holiday ownership is an appropriate addition to their business strategy. We also hope it serves as a useful reference tool for more
experienced shared-holiday ownership firms. It’s important to note that the content of Leisure Real Estate Trends & Opportunities is offered
for illustrative purposes only, and that the information contained in these pages reflects general industry insights that may or may not apply to
specific markets, project locations, product designs and business plans. Leisure Real Estate Trends & Opportunities should not be relied on as
a replacement for project-specific feasibility studies, rigorous financial planning, consumer research, legal and taxation advice and the support
of qualified advisors – all of which are important contributors to successful shared-holiday ownership projects. Financial model examples are
based on historical observations and are not in any way a guarantee of future returns. With that in mind, we hope Leisure Real Estate Trends &
Opportunities helps to give you some ideas as to how shared-holiday ownership can help to maximise the return on your asset investments and
contributes to a successful entry into what is an exciting industry. In some cases, currencies in this handbook have been converted to Euros for
consistency. All currency conversions are correct to date Jan 2017.

Leisure Real Estate Trends & Opportunities is published by RCI, a trading name of RCI Europe,
Kettering Parkway, Kettering, Northants, NN15 6EY, England.
EDITOR: Helen Foster
ASSISTANT EDITOR & PRODUCTION: Rebecca Gormley and Lorraine Loveland
DESIGN: Charlotte Semark
Original articles may be reproduced only with written permission from the publisher.
©RCI Europe 2020.

Leisure Real Estate

2 Trends & Opportunities
Contents
EXECUTIVE SUMMARY
Glossary of Terms .................................................................................................................................................................................... 4
The Case for Shared-Holiday Ownership ..................................................................................................................................... 5
Welcome ....................................................................................................................................................................................................... 6
Definition of Shared-Holiday Ownership ...................................................................................................................................... 7
Hospitality Trends .................................................................................................................................................................................... 8

A RESILIENT PRODUCT
Why Shared-Holiday Ownership? .................................................................................................................................................. 10
European Market Resilience ................................................................................................................................................................ 11
Industry Insight .........................................................................................................................................................................................12
Holiday Ownership Margin Improvement Over Time ............................................................................................................14
Sales and Marketing by the Numbers ...........................................................................................................................................15
Case Study: The Canary Islands .......................................................................................................................................................18
The Exchange Component of Shared-Holiday Ownership .................................................................................................19
Shared-Holiday Ownership Spectrum ........................................................................................................................................ 20

LEISURE REAL ESTATE – THE OPPORTUNITIES

Mixed-Use Development Opportunities & Benefits ...............................................................................................................22
Preferred Marketing Approaches....................................................................................................................................................23
Shared-Holiday Ownership vs Residential Product Cycle ................................................................................................ 24
State of the Nation – Europe ............................................................................................................................................................26
State of the Nation – India .................................................................................................................................................................28
State of the Nation – USA ................................................................................................................................................................. 30
State of the Nation – South Africa..................................................................................................................................................32
State of the Nation – Asia & Pacific .............................................................................................................................................. 34
State of the Nation – Latin America ............................................................................................................................................. 36

KEY SUCCESS FACTORS

Physical and Non-Physical Product Dimensions .....................................................................................................................38
Strategic Considerations ...................................................................................................................................................................40
Human Resource Requirements ......................................................................................................................................................41

PROTECTING YOUR CONSUMER

Europe: Opportunity for the Adventurous ............................................................................................................................... 42
Protecting the Consumer & Strengthening Credibility ....................................................................................................... 44
Considering the Contract .................................................................................................................................................................. 46

WHAT IS EXCHANGE?
Partnering with RCI Exchanges ...................................................................................................................................................... 48
About The Registry Collection® ...................................................................................................................................................... 50
About Love Home Swap.......................................................................................................................................................................51
About DAE..................................................................................................................................................................................................52
Key Global Trade Associations ........................................................................................................................................................53

3
 Glossary of Terms
Condo Hotels
The Condo Hotel model can be applied
to several types of property, including
accommodation types from hotel rooms and
suites to apartments, townhouses and villas.
The basic model involves the sale of property
which is actively managed by a separate
company that contracts the services of a hotel
company to market the accommodation and
provide services to guests. In all cases, there will
be some split of rental revenues between the
hotel operator and the individual property owner,
either on a pooled or separate asset basis.
Destination Clubs
Most Destination Clubs are non–equity based.
They are generally positioned very high on the
quality scale and the properties tend to be fully-
serviced individual homes rather than properties
that form part of a larger resort environment.
There is a high degree of lifestyle benefits and
services incorporated into Destination Club
membership and they generally offer the return
of a percentage (typically 80%) of the initial
membership fee, should the member decide to
leave the club.
Exchange Products and Services
The system that allows timeshare owners
to trade the accommodations they own for
comparable accommodations or travel-related
services. Most resorts which are marketed under
a shared-ownership model are affiliated with
an exchange company. Many resort companies
offer an internal exchange mechanism that
allows owners to exchange to resorts within
their company’s portfolio of resorts.
Fixed Week
A type of timeshare ownership in which
usage rights attach to a specific week of the
year, each year in perpetuity for the period
of ownership.
Floating Week
A type of timeshare ownership where the use
rights are subject to the owner reserving his or
her week within a season purchased (winter,
summer, etc.), or sometimes throughout the
year. A year-round ‘float’ is most often found in
resorts with similar seasons, like Hawaii or the
Caribbean. In most cases the customer owns a
right-of-use for a limited number of years.
Leisure Real Estate
4 Trends & Opportunities
Fractional Ownership
Leisure real estate sold in intervals of more
than one week and less than whole ownership.
Fractional ownerships are usually associated
with the luxury segment of holiday ownership,
offering greater services and amenities.
Right-to-Use
A timeshare owner’s right to occupy a unit at
a resort for a specified number of years and
having no real estate interest conveyed.
Points
A ‘currency’ that represents timeshare ownership
and is used to establish value for seasons, unit
sizes and resort locations. Points are used by
some developers for both internal and external
exchange and frequently can also be traded for
travel agency products, such as car rental, hotel
nights or cruises.
Private Residence Clubs (PRC)
PRCs are often associated with a five-star or
luxury hotel brand and are usually either a ‘stand
alone’ development or can be part of a mixed-
use resort development. The interest sold in the
properties generally represents an interval of time
of more than two and less than 12 weeks. Located
in all the prime holiday settings, PRCs offer luxury
apartments and freestanding houses, combined
with a lifestyle element, including services such as
pre-arrival and on-site concierge, private lounge,
daily maid service, in-home catering, etc.
Short-Term Ownership
A category of traditional timeshare/holiday
ownership which includes products that range
from 5-15 years in duration.
Trial Membership
A product offered after the initial sales tour
consisting of travel-related products and services
packaged with an opportunity to experience the
resort developer’s primary holiday-ownership
product within a defined period. Sometimes
called a ‘taster’ programme.
Timeshare/Holiday Ownership
A term used to describe a method of use and/or
shared-ownership of holiday real estate, where
purchasers acquire a period of time (often one
week) in a resort, hotel, apartment or other type
of holiday accommodation. Timeshare is also
known as shared-holiday ownership.
THE CASE FOR

Shared-Holiday
Ownership
The Millennial is the consumer category we should be selling to today. So what appeals to
them, and what doesn’t?

The June 2016 Euromonitor International report identified a ‘New Consumerism’. Like many other
consumer studies in 2016, it told us that Millennial buyers want value for money, choice and flexibility;
they want authentic experiences; access to assets rather than full ownership. They don’t want to be
committed to long-term financial exposure, and they don’t want ‘cookie cutter’ holiday experiences.
The Millennial consumer demand has been, and will continue to be, a key driver in the
exponential growth of the sharing economy that gives access to, on a flexible value-based
premise, a range of products, from designer handbags and clothing, to upscale lifestyle products
such as performance cars, yachts and holiday homes. In short, consumers in today’s sharing
economy are looking for what shared-holiday ownership can give them.
The Millennial market cannot be ignored. In 2016 a PricewaterhouseCoopers’ report put a value
of £7 billion on the UK sharing economy, estimating that it will rise to £140 billion by 2025. Debbie
Wosskow, founder of the UK’s leading second home swap business - Love Home Swap - highlighted
that in 2016 an average family could save up to £8,520 annually by participating in the sharing
economy, and holiday home exchange represents a significant element of that saving and lifestyle.
Holiday and holiday home swap and exchange programmes, which can also be aligned to rental
products, present a strong purchase proposition to those selling second homes. These buyers
want to get more from their ownership and seek opportunities to swap unused time in their
holiday home for different holidays across the world, as well as allocating other unused time to
holiday lettings programmes to generate an income.
Shared-holiday ownership is a product which benefits developers and investors in the hospitality
sector, as well as delivering genuine benefits to the purchasing consumers. Here’s why:

• It gives holidaymakers the opportunity average holidaymaker, raising occupancy

to purchase a lifetime of holidays at
today’s prices.
• Purchasers aspiring to a second home
lifestyle can afford shared-holiday
ownership properties, enjoying a much-
reduced financial commitment compared to
a wholly-owned second home purchase.
levels and average spend in resorts and
hotels all year round.
• Shared-holiday ownership can be a key
driver of revenue generation in leading
hospitality companies, with the potential to
add value by:

• It gives owners of second homes an i. Improving occupancies

opportunity to holiday swap and generate a
rental income as well, if they so choose.
• Owners of shared-holiday ownership leisure
real estate enjoy much more holiday choice,
with complete flexibility to tailor their
holidays to their personal preferences in
terms of destination, activities and type of
accommodation.
• Because their holidays are paid for up front,
shared-holiday ownership owners have a
greater propensity to take holidays than the
ii. Driving incremental revenues at on-site
outlets as owners have a preference
for self-catering holidays and tend to
spend more time and money on resort
iii. Spreading management, maintenance
and operational costs across a wider
set of assets and range of customers
iv. Reducing marketing costs
v. Diversifying asset usage and
opportunities.

Increasing numbers of developers of second homes’ residential real estate are entering the market
in Europe, having identified the potential to add value to their sales proposition by adding a
shared-holiday ownership with a property exchange and rental component.

EXECUTIVE SUMMARY 5
 Welcome
ABOUT ROBIN MILLS
With more than 30 years of experience, Robin
is a well-respected veteran in the timeshare and
hospitality industry. During his career Robin has
established strong partnerships with numerous
industry leaders and affiliate resorts throughout
Europe and Africa. Robin has served as MD
Europe for Club Leisure Group, MD of the RMI
Consortium and worked closely with several
trade associations including ARDA and RDO.
ROBIN MILLS
Robin holds a degree from Edinburgh Heriot Vice President, Business Development,
Watt University. Europe, Middle East and Africa - RCI Exchanges

With the rise of the sharing economy, having collaborative consumption at its heart, shared-
holiday ownership is set to remain one of the fastest growing segments of the international
hospitality sector.
The pay-as-you-live lifestyle is here to stay. Any number of studies reveal that consumers today
are looking for access to assets, rather than ownership and long-term financial commitment; they
want to try something new. Millennial consumers are experience seekers – in short they are looking
for the type of product that developers of shared-holiday ownership products can give them.
Holiday homes are expensive and shared-ownership is the smart way to access and use them.
Over a relatively short period of time we have seen the rise of many successful companies
offering product sharing; Airbnb; Uber and Love Home Swap – part of the RCI Exchanges family
of brands. Shared-holiday ownership is hailed as one of the early inventors of collaborative
consumption, and combined with a global exchange provider, RCI, it offers extraordinary
potential for developers to monetise hotel and leisure real estate properties. Recent figures from
Orbis Research suggest the global market size could increaseby more than 33 million by 2024.
North America and Europe are the largest shared-ownership markets, accounting for more than
71% of shared-ownership resorts around the world. From traditional timeshare and upscale fractional
properties, to hotels, serviced apartments and many other forms of residential leisure real estate – all
have proven to be robust products.
The recent audited figures for European timeshare purchases showed sales volumes of €2.3
million. There are approximately 1,342 resorts across Europe putting 92,234 units onto the market.
Resorts incorporating a shared-holiday ownership component in their business models have an
average of 76% occupancy levels.
RCI, the world’s leading provider of holiday exchange services, has been in the industry for more
than 45 years and is a pioneer of the pay-as-you-live lifestyle. In its four decades in business, RCI
has seen a continual increase in the numbers of developers coming into the market, including
an increasing number of established hospitality brands, and has affiliated more than 100 new
properties around the world to its exchange programme each year, for the last five years.
The future for the shared-holiday ownership market is one of continued growth, as developers
of ever more property types seek a stronger return on their investment, while consumers are living
longer and wanting more out of life in terms of experiences, lifestyle and value for money. Being
a global business, shared-holiday ownership continues to be strengthened as new destinations
come on board in Eastern Europe, Australia, Africa, Asia and India. The growing middle classes
in countries such as Russia, China and India, having a desire to travel to Europe, are playing an
important role in boosting demand for shared-holiday ownerships. These are just some of the
factors which are expected to drive industry growth in the future.
*Source: Shared-Vacation Ownership Worldwide Report: 2016 Edition prepared by Oxford Economics and Leger for ARDA International Foundation;
Orbis Research Global Vacation Ownership (Timeshare) Market 2018, Industry Trend and Forecast to 2025.

Leisure Real Estate

6 Trends & Opportunities
DEFINITION OF
Shared-Holiday
Ownership
Shared-holiday ownership is a category of leisure-orientated, real estate products that enable
multiple owners, or rights-of-use holders, to share long-term usage of an individual villa,
apartment or collection of units/properties.
• Shared-holiday ownership is typically
understood to encompass holiday
ownership (timeshare), fractional and
private residence clubs.
• Buy-to-Use and Let properties are also
considered to be shared-holiday ownership
products.
• Offerings are typically leisure-orientated,
often with strong recreational and lifestyle
components, offering a variety and
authenticity of experience.
• Shared-holiday ownership is often a
component of a mixed-use project
development, including hotel and
wholly-owned residential real estate.
• While the industry has a great deal in
common with other forms of real estate
development, it is first and foremost a
holiday product for most consumers and
should not be sold as a financial investment,
but as an investment in a set period of
holidays and a leisure lifestyle.
• The exchange component, allowing
owners to exchange into properties of
commensurate quality across the world,
using a holiday exchange services provider,
such as RCI, DAE and The Registry
Collection®, is a valued and persuasive
benefit for prospective shared-ownership
purchasers.
• Management services capabilities
and hospitality solutions are integral
components of successful shared-holiday
ownership products.
• Shared-holiday ownership can generally be
categorised into two main forms: Deeded
or Right-to-Use.
• Shared-equity ownerships in leisure real
estate are known as fractional ownerships.
Typically high-value properties in AAA
locations, fractional properties have an
entry price point of around £250,000 and
are sold in longer use intervals of up to
12 weeks. These properties tend to follow
the values of other unique properties in
the neighbourhood and, at the end of the
contractual period of ownership, if the
property is then sold, the owners may
well benefit from a return on equity if the
property has increased in value over the
ownership period.
• Loyalty Club business models are, as the
name suggests, based on a fee payable to
join a club which gives its members access
to accommodations, spas, golf, ski and
a host of other leisure lifestyle amenities
and exclusive club benefits. Club models
often use a tiered membership structure
so that lower fee-payers can access
the introductory products, designed to
give new members a taste of the brand
experience, building their loyalty and
trust with that brand, and affording the
developer many different opportunities to
up sell to higher membership levels. Up
selling and selling more brand products to
existing members significantly lowers the
marketing costs.
• Shared-holiday ownership models are
generally known as timeshare or fractional
properties, while a hotel or leisure real
estate/rental properties operating a
timeshare or fractional arm are known as
mixed-use developments.
EXECUTIVE SUMMARY 7
 Hospitality Trends
Travel and holidays are an essential for many people across the world – even in times of global and
economic uncertainty, travellers are not willing to give up their precious holiday time, which is why
the hospitality and leisure industry is renowned for its growth and resilience. The number of people
travelling to destinations outside their own country continues to increase, with international tourist
arrivals up by six per cent in 2018, reaching 1.4 billion two years ahead of forecast.

Europe – Authenticity at a low cost remains a priority

With consumers seeking value-for-money, low-cost airlines and short-term rentals continue to be top
per­formers in the market, with online travel sales acting as a catalyst for growth, increasing at 3.4 per cent
Compound Annual Growth (CAGR).
Europe offers incredibly diverse experiences, and research from the European Travel Commission
highlights the importance of pursuing cultural interests as a key driver of tourism to the region.
Gastronomy, adventures, urban experiences and ‘living like a local’ are all highly regarded by visitors,
who also seek unique and authentic experiences.
‘The Greta Effect’ is said to be one of the most impactful megatrends in the region, with
Scandinavia at the forefront of the movement as many travellers become increasingly conscious of
the effects their travel is having on the environment. Airlines, hoteliers and tour operators are taking a
direct response, with many airlines aiming to become carbon neutral, hoteliers reducing plastic waste
and tour operators advising on the most sustainable modes of transportation.
Accessibility has also become a key focus in the market, with a fifth of the world’s population
recognised as having accessible needs. UK and Germany are blazing the trail in terms of offering
inclusive tourism for consumers who require assistance, which includes seniors, infants, and those
with a disability. The business case for marketing to these consumers is compelling as those requiring
assistance usually travel in a group and holiday for longer periods of time.

Worldwide trends
The Americas – Subscription models take centre stage
In comparison to Europe, leisure travel is somewhat limited for those residing in the US, meaning brand
loyalty is difficult to maintain. Many travel operators are replicating the ‘Netflix effect’ and creating
subscription models which are reliant on AI for personalisation to attract customers and satisfy their
travel needs. Uber is also following suit and is piloting a monthly subscription service in two US cities,
offering ride discounts and Uber Eats deliveries.

Global Travel Industry 2019-2024

Mobile Travel Sales Online Travel Sales Total Travel Sales

3,000

2,500

2,000
USD billion

1,500

1,000

500

0
2019 2020 2021 2022 2023 2024

Leisure Real Estate

8 Trends & Opportunities
Asia – Innovation and super apps triumph
Asia has been coined as a hub for technology and innovation throughout the 21st century, and with
60 per cent of consumers stating that new products and services are a priority for them in 2019, this
market is certainly open for business. Digital technology is enabling the enjoyment of interacting with a
brand, and with the rise of super apps (multi-functional apps combining several features in a centralised
platform), Asia is set to continue as the world leader in mobile commerce.
Africa – Empowering the people
Tourism in Africa is shifting from an historical focus on wealthy, international travellers, to unearthing the
desires of African consumers to visit and explore their own continent. This is largely driven by a number
of start-ups and influencers who are helping to increase the connectivity and promote the diversity and
beauty of the continent. The launch of the African Tourism Board will enable the continent to speak
with one voice to drive sustainable tourism in Africa.
Middle East – Market recovery and a rise in travel start-ups
Egypt is well on the road to recovery, with arrivals expected to exceed those achieved before a number
of travel bans were implemented in 2016. The Ministry of Tourism is partnering with TripAdvisor, as well
as regional stakeholders, in the development of the Red Sea project to encourage growth. Meanwhile,
technology hubs in many Middle Eastern countries, in particular the UAE, are focusing on tourism
to help diversify the country’s economy, with Abu Dhabi launching several initiatives to incentivise
entrepreneurs in travel and other industries.

Global Attitudes to Experiences 2019

I value real world experiences

I use technology to improve my day-to-day life

It is important to experience cultures other than my own

I seek curated experiences that are tailored to my tastes

It is important to spend money on experiences

I shop in stores that create engaging experiences

I value online virtual experiences

0 20 40 60 80
% of respondents

Key global opportunities

• Online sales are anticipated to account for 52 per cent of travel sales by 2024, with mobile sales
representing a quarter of all travel bookings.
• International arrivals are expected to achieve 1.8 billion trips by 2024, however these will be
overshadowed in comparison to the growth of domestic tourism, which is expected to reach 19 billion.
• With 43 per cent of consumers prioritising experiences over tangible items, the travel industry is
capitalising on the need for cultural and unique activities, with 78 per cent of consumers valuing real
world experiences in 2019.
• The wellness industry is booming, as many consumers look to connect with nature to enhance their
well-being through activities such as voluntourism and meditation, as well as the use of Eastern and
Western health modalities.
• Consumers have also expressed a new fascination with ethical living by becoming incredibly
focused on sustainability and caring for the environment, as well as the communities they travel to.
• Short-term rentals are outperforming hotels in all key geographical regions, which comes as hotels
are investing in short-term rental players to adapt to changing consumer demands.
• Boundaries in the market are breaking down, with homeware, food and beverage outlets opening up
boutique hotels.
• Connected consumers seek to establish relationships with brands and like-minded consumers,
amplifying the need for personalisation and increasing multiculturalism.

Source: Euromonitor International; Megatrends Shaping the Future of Travel 2019 Edition; Orbis Research Global Vacation Ownership
(Timeshare) Market 2018, Industry Trend and Forecast to 2025.

EXECUTIVE SUMMARY 9
 Why Shared-
Holiday Ownership?
The rationale for entering shared-holiday ownership depends on the type of business you
operate and its precise characteristics, needs and objectives.

Both leisure property developers (second home market) and hospitality companies will find
shared-holiday ownership models offer significant benefits, including:

Create synergies with other asset classes in
mixed-use developments
• High year-round occupancy levels of
timeshare developments drive revenues to
ancillary businesses
• Shared-ownership marketing incentives (i.e.
gift certificates) drive incremental business
to on-property outlets
• Increased occupancy can result from sales
preview packages
• A portion of the capital costs for developing
key amenities can be borne by the shared-
ownership component
• Concierge and other service areas that
could generate ownership leads can be
offset by shared-ownership marketing
Most immersive brand experience available
to consumers
• The residential nature of shared-holiday
ownership products offers an incredible
platform on which to tell brand stories and
to evolve brands over time
• The purchase of a branded holiday
ownership or private residence club is the
ultimate expression of loyalty
• Purchasers often go on to become
tremendous brand ambassadors
Scalable
• Sales and marketing capability is a vehicle
for monetising inventory from multiple
phases and projects

Multiple revenue streams Accelerate capital return

• Profit contribution through initial sales
Investment diversification
and marketing
• Recurring management fee revenues
provide higher margin with little risk
• Lower cost marketing through referral and
existing owner programmes

Leisure Real Estate

10 Trends & Opportunities
 European Market
Resilience
S U E M CN I C O L
RDO, UK Head of Operations
THE EUROPEAN MARKET HAS RECOVERED
well from the recession of 2009. RDO's latest
Key Performance Indicators (KPIs) reveal a
strong performance on the part of RDO resort
members, with sales amounting to just under
Source: Shared-Vacation Ownership Worldwide Report: 2016 Edition prepared by Oxford Economics and Leger
€500 million in 2014. This represents an average
revenue return of approximately €2.2 million per
resort in 2014, and €32,000 per unit.
RDO calculated that sales of €500 million
accounts for just 41% of total sales across
Europe which, in 2010, achieved sales of
approximately €1.2 billion according to
a report released by ARDA International
Foundation (AIF).
Consumers have become reluctant to think
long-term commitment, which has given rise
to the introduction of short-term ownerships.
The industry became creative to safeguard
future sales, with a large proportion of
the market now selling short-term holiday
ownership products of between five and 15
years’ duration. This works well for the current
generation of buyers, who often work in a less
secure job environment.
for ARDA International Foundation.
The European market is the second largest
in the world, after North America, with a total
of 1,342 resorts, 92,234 accommodation units
and approximately 1.6 million timeshare owners.
There is a great demand for timeshare, which
saw year-round occupancy levels among RDO
member resorts increasing by 5% between 2013
and 2014, standing at just over 74%. This is an
exceptionally high level compared with other
ABOUT SUE MCNICOL
Sue McNicol has more than 20 years of
experience in the shared-holiday ownership
industry after commencing her career
with the Timeshare Council in 1996, which
has since become the UK Chapter for the
European Trade Body.
accommodation types, such as hotel rooms.
AIF estimated that there were nearly 59,000
jobs created by European shared-holiday
ownership operations in 2010; 24,000 of these
relating to resort operations, and over 16,000
in sales and marketing. RDO KPIs revealed that
the average wage per employee at timeshare
resorts in 2014 was just over €24,000.
Who are our customers, where do they go?
RDO found that 40% of visitors to its European
member resorts are British, 14% German,
7% Finnish, 6% Spanish, and the remaining
European countries representing under 4%
each. Two thirds prefer to holiday at resorts
other than their own, with the exception of
Spain, where the majority of Spaniards prefer
to holiday at home. Spain is in fact the most
popular European destination, attracting
over half of Europe's timeshare owners.
This is followed by the UK, Finland, Germany
and Portugal.
Maintenance fees at RDO member resorts in
2014 stood at an average of €649 for a two-
bed unit, €532 for a one-bed unit – the most
common unit type, and €383 for a studio.
Overall, the figures in Europe are positive,
supported by ongoing buoyant sales. In the
long term, developers who can rapidly adapt
to consumer trends and develop innovative
products will thrive. They will succeed in
finding buyers in the volumes we saw in the
80s and 90s.
A RESILIENT PRODUCT 11
 Industry Insight
SHARED-HOLIDAY OWNERSHIP
WORLDWIDE REPORT*

Europe
SALES (All figures shown in US Dollars and based on research for 2015)

G R OW T H

Sales Volume $2.537m

Rental Volume $ 3 6 1 , 8 9 4 , 5 4 0 (2,584,961 nights rented at $140 per night)

AV E R AG E S A L E S P R I C E P E R T I M E S H A R E P U R C H A S E

Avg. price per interval $16,765

Avg. price per transaction $12,401

N U M B E R O F I N T E R VA L S O R E Q U I VA L E N T S S O L D I N A Y E A R (2015)

*Source: Shared-Vacation Ownership Worldwide Report: 2016 Edition prepared by Oxford Economics and Leger for ARDA International Foundation.
Intervals sold 151,329

N U M B E R O F T I M E S H A R E T R A N S AC T I O N S I N A Y E A R (2015)

Transactions 204,580

NUMBER OF RESORTS IN SALES

In sales 83%

42%
Pre-sale 2%

NUMBER OF RESORTS SOLD OUT

Sold-out 16%

O F OW N E R S A R E L I K E LY
TO P U R C H A S E AG A I N

PROPERTY

O U T LO O K

Resorts built 2016 3

Resorts built 2017 and beyond 5

USAGE
Units built 2016 459

Units built 2017 and beyond 785 PERFORMANCE

TYPE OF TIMESHARE PROPERTY Occupancy 76 %

LEGAL STRUCTURE Avg. Maintenance Fee $542

Right-to-Use 56%
NUMBER OF RESORTS
Deed 9%
1,342
Interest in Trust 16% REPRESENTING
Number of Resorts
25% OF RESORTS
TYPE OF CONSTRUCTION
WO R L DW I D E
S TA N D -A LO N E MIXED-USE
35% 65% NUMBER OF UNITS

92,234
CONVERSION P U R P O S E - B U I LT
47 % 53% Units W I T H AVG . R E S O R T
SIZE OF 69 UNITS

Leisure Real Estate

12 Trends & Opportunities
Global
SHARED-HOLIDAY OWNERSHIP ECONOMIC IMPACTS
(Direct, Indirect and Induced)

USD (MILLIONS)
E M P LOY M E N T
REGION
( TOTA L J O B S ) OUTPUT I N CO M E TA X E S

ASIA 73,088 $5,260 $1,382 $510

AU S T R A L A S I A 11,175 $963 $423 $125

CARIBBEAN 51,953 $2,457 $1,097 $182

CENTRAL &
66,398 $3,593 $1,041 $310
SOUTH AMERICA

EMEA 280,448 $24,504 $8,622 $3,211

NORTH
796,081 $109,213 $32,932 $12,582
AMERICA

TOTA L , WO R L D 1,279,143 $145,990 $45,497 $16,920

WORLDWIDE SHARED- WORLDWIDE SHARED-

HOLIDAY OWNERSHIP HOLIDAY OWNERSHIP
UNITS BY REGION, 2015 SALES
6,083 $20
0
37, 32

92
,5
37

$15
60,526
293,682

92
,23
USD BILLIONS

$10

KEY
NORTH AMERICA $5
EMEA

CENTRAL & SOUTH AMERICA

CARIBBEAN

ASIA
$0
AU S T R A L A S I A 2013 2014 2015

A RESILIENT PRODUCT 13
 Holiday
Ownership
MARGIN IMPROVEMENT OVER TIME
Holiday ownership margins and overall profitability typically improve over time as developers
unlock synergies associated with a growing member/owner base. As the owner base grows,
it enables the developer to introduce new, more efficient marketing programmes with higher
associated margins. At the same time as the owner base grows, so do attractive downstream
revenues.

Example of potential efficiency lift

Forty-two per cent of timeshare owners are likely to purchase holiday ownership again.

*Source: Shared-Vacation Ownership Worldwide Report: 2016 Edition prepared by Oxford Economics and Leger for ARDA International Foundation.
Many owners, being highly satisfied with their product, will be happy to upgrade their
timeshare ownership or buy additional weeks or points.*

Higher margin marketing programmes Downstream revenue plays an increasingly

become increasingly attractive as the owner positive role as owner base grows:
base increases:
• Management services fees
• Referral programmes • Loans portfolio (where applicable)
• Existing owner (add-on) programmes
• Trial programmes

KEY SUCCESS FACTORS

H O L I DAY OW N E R S H I P F R AC T I O N A L / P R C

Strong average daily rates in the surrounding

Resorts with a 24-week high season
hotel segment most closely aligned with the
or longer
quality of the holiday ownership product

Destination with high volume of seasonally

Location with high real estate values
consistent tourist visits

The degree to which consumers view the

Strong leisure-orientated location
market as a compelling leisure destination

Customer-centric and effective property Fair and equitable use plan enabling
management company purchasers to access high-demand periods

Strong owner satisfaction Flexible layouts and design

Global exchange affiliation Global exchange affiliation

Efficient sales and marketing costs Turnkey services

Compelling sales centres Quality product

High service levels yet reasonable

Solution to compete against resales
maintenance fees

Leisure Real Estate

14 Trends & Opportunities
Sales & Marketing
BY THE NUMBERS

PERRY NEWTON
MANAGING DIRECTOR,
AZURE MALTA
RESORT PROPERTY:
THE RADISSON BLU RESORT
& SPA, MALTA GOLDEN SANDS
MEMBERSHIP PRODUCT:
AZURE ISLAND RESIDENCE
CLUB MALTA; THE HEAVENLY
COLLECTION AT GOLDEN
SANDS BY AZURE; AZURE
ULTRA POWERBOATS & MOTOR
YACHTS; AZURE PERFORMANCE
SUPER CAR CLUB.
UNITS IN PROPERTY:
240 IN TOTAL

I HAVE BEEN MARKETING AND SELLING experience with us is far richer.

shared ownerships – timeshare and fractional
resort properties – for over 25 years. In that
time I have learned a lot about the efficiencies
of the marketing and sales operation.
Here’s what I know – ACQUISITION-
ENGAGEMENT-RETENTION: These are
the goals!
Initially, quite a few years ago, we would
take prospective purchasers on sales tours,
and would do at least three tours a day. When
reviewing the cost of those tours against
the percentage closing rate, this was not an
efficient process for many reasons. There was
a low level of engagement, largely because the
sales representatives became tired as the day
wore on, while the tours themselves were built
around the hard sell and did very little by way
of giving potential customers a taste of our
brand experience. Let’s take a look at one of
our sales operations at our property in Malta...
Sales formula: efficiency
How do you create industry-busting efficiency?
We revised our marketing and sales process
completely. The changes we made, which have
been proven to increase our closing rates, are:
• Researching the inbound visitors to our
destination and targeting those source
markets in our sales operation
• Using sales training programmes and
matching our sales representatives to
specific customer categories – a case of
putting the right jockeys on the right horses
• Limiting sales tours to one a day – six
a week – to focus our representatives’
energies; there is no rush and each
session is cherished, and the tour guests’
In a resort comprising 240 units in total, we
employ three sales teams, each staffed by
representatives reporting to a team of two
managers. In each team, the two managers
are dedicated and specialise in either cold
line selling – fly-buy promotional tours, for
which we fund part of the cost of the resort
visits; or existing members where we upsell
our wide product range – including penthouse
suites, high-performance car and luxury yacht
charter clubs.
Care is taken to recruit sales staff who
demonstrate professionalism and who are very
good at what they do. Our cold line and fly-buy
sales lines generate an average of 1,500 new
members buying into our vacation club every
year. These sales lines have a cancellation rate
of only 22%.
In order to calculate our effectiveness
‘efficiency’, we use:
Net Volume of Sales
Efficiency =
Total Number of Clients,
Net of Cancellations
Currently our operation sees efficiencies by
market source per client of:
Off-Premises Canvasser (OPC) £1,200
Cold Line £800
Fly-Buys £1,500
Scandinavian £3,500
Existing Members £4,000

A RESILIENT PRODUCT 15
 On average, our closing rates are around
25% for new business.
We are constantly looking at other ways to
enrich our tours. Today, for example, before
the resort tour and well before any sales are
presented to the guests, we treat them to a
boat trip around the island of Malta, giving
them an engaging 5-D tour, with guides
educating them about the rich history of the
island and increasing its value to the potential
new member. Visits to attractions, such as The
Grand Harbour, have an immeasurable effect,
along with quenching the thirst and hunger
of our guests with catering laid on to give
them a taste of local delicacies and drinks. We
capitalise on the value of the location itself as a
special stay experience.
The five whys…
Our sales and marketing strategy is very much
shaped by the Shari Levitin sales training
principle of the ‘Five Whys’ when talking with
your guests. These are:
1. Why holiday? What is important to your
guests about taking holidays? If they don’t
have enough emotional reasons to holiday,
it’s going to be tough.
2. Why timeshare? If you value and love
holidays, what makes holidaying this way
far better for you and those you love?
What’s going to be your ‘why’ to change?
Explain the many benefits of the quality,
flexibility and value of timeshare ownership
Leisure Real Estate
16 Trends & Opportunities
with an exchange membership.
3. Why Malta? For example, highlight the
features of your destination that are
attractive and offer value: It’s a UNESCO
World Heritage site. There are many iconic
attractions nearby. What are your unique
features? Share what your guests tell you
about why they love the place? TripAdvisor
ranking? Flight links and ease of getting
there…
4. Why us? Describe what it is that makes you
proud of your brand and your company:
its strengths; any experiential features of
your offering; any spin-off products to
be enjoyed as part of your offering. Tell
them about your brand partners, such as
exchange companies like RCI; the diversity
of holiday experience when holidaying
with your brand and at your resorts. What
makes your company a cut above the rest?
Remember, you can always tell the strength
of a business by the company it keeps.
Buyers like to feel proud of you too, so
demonstrate your credibility.
5. Why today? Your call to action – why not
today? Why should they sign today? If it’s
an offer, then it better be a real one. Today’s
buyer is not only tech savvy, but is also
sales savvy and won’t fall for ‘this deal is
only available today’. You need good solid
reasons, or offers, so that your team can
gain commitment with something real and
of value.

PERRY NEWTON
Managing Director, Azure Malta
It’s a simple concept and our sales systems
are built around it. At its heart is the business
of building customer relationships. Other rules
we follow are to resist bolting everything the
industry has to offer onto your product –
keep it simple, no one wants, or has time, for
complicated.
Cold line licenses can be costly and without
the right team, damaging to reputations.
While your fly-buy promotional clients, on the
other hand, will often come from your online
marketing efforts, and if you have a hotel or
resort you have the accommodation and can
absorb some, or all of that cost.
A hotel is a rich source of leads if you
go about it in the right way and can enter
into alliances with other hotels. An Internal
Personal Contact (IPC) or a desk in a reception
area improves efficiency and effectiveness
significantly over most cold line operations, as
the whole experience is a warmer one.
Create your own tourist information centres
in your destination, liaising with other tourist
information centres to promote your own
branded, sexy, island excursions or other smart
tours and trips, using local people to give
insider tips on getting the best out of your
destination. Create a craft market with local
traders which can be good for them, your
clients, and a great capture point for you.
Costs can vary. For example, do you want to
provide gifts – high value or less expensive?
Will you use an agency or your own staff to
ABOUT PERRY NEWTON
Perry Newton has been a soldier, a sales
person in most markets, a sales manager,
a sales director, a life coach with countless
hours of mentoring and training, and has
led teams at all levels. He is one of few
Levitin-recognised trainers in Europe and is
a member of the Institute of Directors. He is
a champion of numerous charities, many for
the military, such as Help For Heroes and
Give Us Time, as well as Cancer Research.
In raising funds for charity, Newton has
diced with death in events such as the
Dakar Motorbike Rally and the Greek Hellas
Rally. Being totally committed to providing
a work environment where talented
individuals have the support, equipment
and the autonomy with which to flourish
and grow, Newton believes that people are
by far the greatest asset of Azure Malta.
operate your cold line sales and fly-buys? Do
you have to duplicate the operation set up,
having subsections for each different source
market and therefore languages, which will add
to the cost.
We play around the edges of the business to
test different strategic approaches and to look
for areas of possible growth. We will invest a
percentage of our yearly marketing budget in
a new test and, if it doesn’t drive ROI or some
other benefit to us as an organisation, we will
kill it. We do lots of surveys through providers
such as SurveyMonkey, to members and
non-members, and we get some interesting
feedback as to why some people are interested
in our offering, and why others are not; what
they would like and what not.
We find the majority of non-engagers
at times do not know, or have forgotten,
how to use the product or it’s been a while,
and they’ve missed a bit here and there as
developments and improvements to the
product they bought have passed them by
– even with the best product educational
methods you may have.
It is always worth taking time to revisit your
product educational communications on a
regular basis. Remember the three pillars
of your success strategy should always be,
ACQUISITION-ENGAGEMENT-RETENTION.
Happy selling!
A RESILIENT PRODUCT 17
 Case Study:
The Canary Islands
HARD ROCK HOTEL, TENERIFE
AS ONE OF THE LEADING MARKETS FOR
shared-holiday ownership in Europe, the Canary
Islands offer more accommodation of this type
than any other Spanish region. In total, 128 out
of 302 resorts in Spain are located in the lush
landscape of the Canary Islands, providing
more than 14,000 units and 59,000 beds for
European and global tourists.
Each year, the shared-holiday ownership
industry alone attracts 1.3 million visitors to
the Canaries, with guests staying at a hotel or
resort for an average of 11.6 nights. The Canary
Islands are, without a doubt, favoured holiday
destinations among sun-seeking tourists, which
is one of the reasons why residential leisure
real estate and shared-holiday ownership has
proven to be highly successful in this location.
As a result of its strong customer magnetism,
it is unsurprising that the travel and tourism
industry has identified the infinite potential
of shared-holiday ownership. In fact, the
hotel business recognises the industry as a
key economic driver for its capacity to retain
customers and improve the profitability of
hotels on a year-round basis. By bridging the
profits’ gap between high-and-low seasons, the
shared-holiday ownership model brings more
stability to the hotel business, as it is less prone
to fluctuation during economic downturns.
ASHOTEL, the Hotel and Apartment
Association of Tenerife, La Palma, La Gomera
and El Hierro, has highlighted the strength of
the industry and lends further credibility to the
benefits of adopting this model. During the
past few years, Jorge Marichal, President of
Sources: RDO Spain Seminar, Shared-Vacation Ownership Worldwide Report: 2016 Edition prepared by Oxford
Economics and Leger for ARDA International Foundation.
Leisure Real Estate
18 Trends & Opportunities
CLUB MELIÁ, TENERIFE
ASHOTEL, has joined forces with RDO Spain
to promote the reliability of the industry and
pave the way for future collaborations between
hoteliers and shared-holiday ownership.
Today, shared-holiday ownership is a
favoured model among many of the leading
hoteliers in the Canary Islands, including Hilton,
Marriott, Meliá, Hard Rock Hotel and Diamond
Resorts International.
One of the main differences between shared-
holiday ownership and the hotel business, in
the Canary Islands and on a global level, is the
experience that the customer receives while
on holiday. Shared-holiday ownership offers a
more personalised service, as customers are
able to build relationships and familiarity with
staff, and they are also offered more choice
of on-site amenities and services to take
advantage of during their stay.
Shared-holiday ownership is an extremely
successful customer engagement tool, which is
reflected in Diamond Resorts and Hotels’ guest
satisfaction rate of 90.8%. The average score
of timeshare users on a global scale stands
at 86.2 points, on a scale of one to 100. The
satisfaction rate of those located in the Canary
Islands is 4.4 points on a range from one to five
on TripAdvisor, and on a range of one to 10 on
Booking.com, the satisfaction level is 8.4.
Shared-holiday ownership is one of the
fastest-growing segments in the travel and
tourism industry. In the Canary Islands the
industry has generated 10,000 direct jobs and,
on a global scale, 500,000 direct jobs have
been established throughout the industry.
THE EXCHANGE COMPONENT OF

Shared-Holiday
Ownership
Holiday exchange is synonymous with shared-holiday ownership, with flexibility being the top
priority for consumers seeking value-for-money products. The exchange and shared-holiday
ownership concepts were established simultaneously to address the demand from shared-
holiday owners for an increase in the options and benefits available to them.

RCI’s holiday exchange proposition strengthens shared-holiday ownership products across the
world, by satisfying the demand for flexibility, providing a wider range of holiday options, and
delivering a stronger sales incentive. The company has been recognised as the world leader in
holiday exchange since its inception, and continues to go from strength to strength, adding 155
properties to its portfolio in 2018.

Leverage RCI’s experience at any stage of your resort or development:

Benefits to your business Benefits to your customers

• RCI works with your business to create a
vacation club with bespoke services for
your consumers’ needs, including lifestyle
benefits and travel services
• Access warm leads by promoting your
resort to more than 3.9 million RCI members
• Leverage RCI’s B2B and B2C distribution
channels to utilise inventory and increase
occupancy levels, by offering seven-night
stays and short breaks to a new
customer base
• Create loyalty to your brand by
satisfying the needs of your consumers
and differentiating your product from
competition with a diverse range of
holiday options.
• Access to a vacation club through RCI with
travel options and lifestyle benefits
• A world-class exchange experience,
with resorts located in some of the most
sought-after destinations
• Flexibility for your owners to use the value
of their ownership towards one or more
holidays each year through the RCI Weeks
and Points systems
• Easy-to-use membership which is serviced
in up to 16 languages; an intuitive online
booking platform and experienced
RCI Guides to support owners every step
of the way.

A RESILIENT PRODUCT 19
 Shared-Holiday
Ownership Spectrum
H O L I DAY
F R AC T I O N A L
OW N E R S H I P

INTEREST SIZE 1 week per year interest 1/20 to 1/4 of a year interest

Q UA L I TAT I V E Mid to upscale apartments

Holiday resort
DESCRIPTION or villas

Annual holiday solution Benefits of second home

CONSUMER enabling consumer to return ownership, but at a fraction
BENEFIT to home resort or travel of the cost and without
worldwide via exchange maintenance responsibilities

OW N E R S H I P Deeded, equity based or Deeded, equity based or

STRUCTURE right-to-use right-to-use

Standard resort level service Standard and upscale resort

Q UA L I T Y O F S E R V I C E with mid-week clean and level service with mid-week
à la carte services clean and à la carte services

A N N UA L M A I N T E N A N C E *
€250 – €1,200 /week 1.5% to 2% of purchase price
FEES IN EUROS.

Leisure Real Estate

20 Trends & Opportunities
 P R I VAT E D E S T I N AT I O N CO N D O H OT E L
R E S I D E N C E C LU B C LU B ( B U Y-TO - U S E A N D L E T )

1/20 interest or greater 10 to 60 days’ usage Whole ownership

Membership offering global

Exclusively upscale luxury Hotel rooms and apartments
access to a portfolio of
apartments or villas managed by a hotel operator
luxury residences

The benefits of owning a

Benefits of second home
portfolio of signature homes Return on investment
ownership, but at a fraction
around the world without through rental plus personal
of the cost and without
the complexity of home usage and exchange options
maintenance responsibilities
ownership

Deeded, equity based or Typically right-to-use

Deeded or right-to-use
right-to-use membership

5-star service sometimes Ultra-luxury service

Varies by property but
complete with dedicated experience often complete
frequently aparthotel and
staff. Comprehensive with concierge, butler,
hotel type of services
amenities personal chef, etc

Varies, usually applies only to

€210 – €700 /day Varies
the personal usage periods

*Annual fee estimates are approximate, for illustrative purposes only.

A RESILIENT PRODUCT 21
 MIXED-USE DEVELOPMENT

Opportunities
& Benefits
More and more hotel brands are joining those already established – Hilton Grand Vacations, Club Meliá,
The Cela Group, SkiStar, Disney Holiday Club, Wyndham Vacation Ownership, MacDonald Hotels and
Resorts and Pestana Vacation Club – in the timeshare industry. The mixed-use development market is
rapidly expanding, as is the demand for a linked shared-ownership component.

It is no longer enough for hotels to have a great location and smart rooms; today’s guest is looking
for lifestyle options, flexibility, choice and more facilities than ever before. The hotel/timeshare
model mix has become one of the new norms in hotel developments. Coming into the mix are
residential leisure real estate developments, with second homes being sold with holiday exchange
options. The relationship and synergies between these different business models can create
significant economic benefits, such as:

• Reduced marketing, operational and • Financial stability delivered by timeshare

development costs owners’ annual maintenance fee payments,
• Higher occupancy levels driving increased providing a dependable and steady flow of
retail revenues management revenue

• Building a brand community and growing
brand loyalty
• Resistance to standard seasonal lodging
cycles, levelling out peaks and troughs,
bringing more certainty to staff planning
and operational management
• Shared marketing, sales and PR costs
across product lines
• Warm sales leads and no-cost marketing
opportunities for timeshare using hotel
customer database and promotional
channels ie: Reception/in-house TV
• Higher revenues from maintenance fees and
sales used to provide multi-dimensional
on-site guest amenities and lifestyle offerings.

NORMAL P E R I O D O F S A L E S W I T H S H A R E D - H O L I DAY
CATEGORY
O P E R AT I O N S OW N E R S H I P CO M P O N E N T

Rooms, Hotel Increased occupancy from sales preview packages. Varying

Normal
Occupancy & from hotel size and sales velocity, hotel occupancy could
occupancy
Revenue increase after any displacement.

Marketing incentives (ie: gift certificates from tours) can

Retail Outlets
Usual F&B from drive incremental business to on-property outlets. Post
– F&B, Spa,
operations sell-out, outlets may achieve additional revenue from captive
etc.
ownership and increased year-round occupancy levels.

A portion of the capital costs for developing key amenities can

Normal sales be borne by the shared-ownership component. Post sell-out,
Amenities
from operations a portion of maintenance/operation costs can be set against
ownership revenues and annual maintenance fees.

Concierge and other service areas that can generate

Overhead ownership leads can be offset by sales and marketing.
Fully paid
Operational Additionally, a portion of overhead costs – such as general
by resort
Support manager, property engineer, security, etc. – can be allocated
operations
Areas to the timeshare owners to further offset hotel operational
costs.

Leisure Real Estate

22 Trends & Opportunities
Preferred
Marketing
Approaches
The scale and location of an existing hotel or resort can have an impact on which marketing
techniques are most successful in promoting a shared-holiday ownership product at the property.

However, it is possible to explore different marketing approaches while still bringing footfall
through the door. Some of the industry’s tried and tested approaches are still viable today, as
customer experience of your brand offering has proven to be the most successful method of
showcasing the benefits of shared-holiday ownership at a hotel or resort.

Here are some of the most frequently used marketing approaches:

A great strategy to use in mixed-use developments with hotel

components. Hotel guests are invited to shared-ownership sales
IN-HOUSE GUEST
presentations. History shows that guests who have chosen to stay
PROGRAMMES
at a hotel with a shared-holiday ownership product are strong
candidates to purchase.

Prospects are selected through purchased, partnered or existing

DIRECT MARKETING databases and contacted either by direct marketing (electronic
AND OUTBOUND direct mail, online or social media) or telemarketing. Prospects
CALLING are typically offered a resort stay at a significantly discounted
rate, in exchange for attending a sales presentation, i.e. Fly Buys.

Owners/members of shared-holiday ownership schemes are

incentivised to refer friends and family. Referrals are then
OW N E R R E F E R R A L
invited to a sales presentation. Referrals of an existing shared-
PROGRAMMES
holiday ownership purchaser have a higher probability of
purchasing themselves.

When a sales presentation will not result in an immediate

purchase, a trial period of membership/ownership is sometimes
TRIAL PROGRAMMES
offered. Trial programmes are typically one year memberships
FOR NON-
that include a week of holiday. Efforts to upgrade trial
PURCHASERS
members/owners to full membership within that year are often
very successful.

ADD-ON OFFERS
Soliciting existing owners to upgrade their existing
FOR EXISTING
timeshare product.
OW N E R S

Require minimum financial expense and commitment for

potential purchasers to sample your resort experience. Used as
R E N TA L S a soft-sell exponential introduction, rentals can build customer
loyalty while covering lower occupancy periods and bring
footfall through the door.

LEISURE REAL ESTATE - THE OPPORTUNITIES 23

 Shared-Holiday Ownership
VERSUS

Residential Product Cycle

Synergies and new requirements for developers and hospitality companies
considering shared-holiday ownership

STA
FEA GE
SIB 1:
ILIT
Y Whole-Ownership Residential
Development Cycle

Rental
and
Exchan
ge Off Design
er
Develo
pment
Feature
s and S
pecs Sales R
etentio
Toppin n and
g Out
Move-In

Pre-Sales Planning Events and Marketing Repairs and Maintenance

Budgets and Programmes
Preliminary Business and Marketing
Approvals
Planning
In
Move-
Post
ion
truct n
Cons inalisatio er
ct F m
ion Cont
ra sto
truct Cu
Cons ments
Docu
mati
c and
Sche plan ch
te r a un
Mas les
L ng
ti
ew -Sa arke
Revi P re M
Land

deri
ng 3: N
Ten E O
G TI
A A
a ST LIS
rm A
Fo ls
P ro
ls, ppro
va RE
ga
Le nd A
a
ing
nn
o Pla rch
ari esea
en
Sc nd R 2:
a
E
G N
T A IG
S E S
D

Leisure Real Estate

24 Trends & Opportunities
 N
A 4:
IO
IS E
T
IM AG
P ST

6
T
Shared-Holiday Ownership

O
ce t
Development Cycle t
du en
ro em s
In ag ce
n vi
Ma Ser

ew r
e N mbe
om e
elc /M
W ner
Ow
5 g
stin
Exi
ic ing es
to
ers
Pr Sal Own
3

s
: ale
ct st S on
o du s Ho ntati
r n se
l P tio s Pre
ica ifica nitie g
s
y c e nin
Ph pe Am lan g
IL 1:
Y

P
S d les ketin
IT

-Sa
IB E

an Pre d Ma
r
G
A

an 4
T

er
S
S

Off
A

n
E

ge Pla al
Referr es
F

ha
n Use m
c a m
Ex keting Pro g r
l& ng h Mar
nt
a nni Launc ammes
la Progr
Re sP ructio
n
si nes Const ts
u e n
ry B ts and Docu m
ina 1 Benefi es
lim
Pre Privile
g
d y
ility Stu
se/ Feasib
Best U

Consumer Research Define Legal

Tendering Create Sales and Management
Structure
Marketing Team Service Fees
Lega
ls , Pro
F 2
Appr orma and
ovals
STAG
E 2:
DESI
GN STAG
REAL E 3:
ISAT
ION

Custo
m er

1 Expanded to include holiday-ownership, fractional and private

residence club options

2 Incorporate shared-ownership business model assumptions

3 See page 38

4 Particularly in the case of holiday ownership where strategies differ

significantly from residential. See page 15

5 Holiday ownership, in particular, utilises a unique sales process,

but like residential ownership it benefits significantly from branded,
experiential sales centres

6 While very similar to those of a hotel, shared-ownership servicing

has some unique dimensions. See page 39

LEISURE REAL ESTATE - THE OPPORTUNITIES 25

 State of the Nation
EUROPE

You can add value to your resort by adding

WHEREVER YOU ARE LOOKING TO DEVELOP
and operate a resort, you should start with
the most important question, which is: What
constitutes a good location? Many European
destinations tick all the right boxes, and
here’s why.
Ease of access
You must consider access. The shared-
ownership business relies upon making it easy
for guests to use the product. If good air routes
or other forms of transport don’t exist or are
too expensive, this will be a limiting factor on
the attractiveness of your product.
Experience, experience, experience
Proximity to demand generators is vital too.
Europe is rich in iconic tourist attractions,
which makes it a popular holiday destination
with tourists worldwide. It is rare that the
accommodation is the only attraction to
convince a customer to make a long-term
commitment to shared-holiday ownership.
Demand generators in the form of tourist
attractions and activities can be internal as well.
things like a golf course, a spa or an equestrian
centre. Make sure that you fully understand
how they will add value to your business and
who is going to pay for them, either directly
or indirectly through premium pricing, as they
require significant investment.
If you are relying on external demand
generators, make sure that they are not too
far away and also consider whether you can
achieve some sort of privileged access to them
for your customers.
Seasonality
Most places have a clear seasonality and
a clear market to go with it. To bring year-
round attractions to your development will
require significant investment in promotion
and communication costs, so be committed to
creating real demand for your project, as well
as having the cooperation of local/regional
tourism authorities.
Opportunities in Europe today:
The Adriatic coast of the Balkans – Generally
hailed as being ‘the Mediterranean as it used
to be’.
The Black Sea coast of Bulgaria and Russia –
Accessible by a huge ‘drive-to’ population.
The south-east coast of Italy – Developing
rapidly as a new focus for tourism.

Leisure Real Estate

26 Trends & Opportunities

PHILIP BACON FCA MRICS
Director - Planning & Development/Valuation, Horwath HTL,
Global Leader in Hospitality Consulting
Sicily – One of the greatest tourism assets in
the Med.
Cyprus – Appealing to new, growing outbound
markets, as well as having a strong pull for the UK.
The UK – The ‘staycation’ is probably not a
passing fad.
The Atlantic coast of Portugal – A real
competitor for the Algarve.
South-west France – Relatively undiscovered but
with easy access and a long tourism tradition.
Many of these locations appeal to some
of the newer members of the EU, as well as
Russia. However, remember that undiscovered
and undeveloped locations will always attract
the pioneers of tourism, but shared-holiday
ownership is typically about repeat visitation
to places where people like to have something
more permanent than a rental opportunity. It is
also about ease of access and long-term service
delivery, and these things are more challenging
in undiscovered parts of the world.
The week-based timeshare or holiday-
ownership business, arguably the oldest of the
shared-ownership models, is still relatively new,
despite being nearly five decades old. This is
nothing compared to destinations like
Las Vegas, Miami Beach and the French Riviera;
and let’s not forget that the first Thomas Cook-
organised tour was in 1841. The places in Europe
where shared-holiday ownership has flourished
have been where people already enjoy going
on holiday, such as the Canary Islands, the
LEISURE REAL ESTATE - THE OPPORTUNITIES
ABOUT PHILIP BACON
Philip Bacon is a chartered accountant
and member of the Royal Institution of
Chartered Surveyors with over 30 years’
experience in professional business advisory
services and general management. He has
been a consultant to the hotel and mixed-
use sectors of the hospitality industry for
over 15 years. Philip has been involved in the
development of branded residences and
other leisure real estate concepts working
with brands such as Mandarin Oriental, Four
Seasons, Fairmont, Jumeirah and Armani.
Horwath HTL is a global leader in hotel
advisory services and is uniquely positioned
to provide the depth and breadth of advice
required by leading hotel owners, investors,
financiers, and operators.
Costa del Sol and the Alps.
The objective in today’s market is to carefully
match your product with your chosen target
market. Do not compromise, there is too much
choice out there and your customer is better
informed than you think.
Seek out sources of customers who meet
your profile – remember it is no coincidence that
some of the world’s shared-holiday ownership
leaders are hospitality-driven organisations with
access to large numbers of loyal customers.
What is needed is a well-planned approach to
the established model and in Europe, the quality
bar is high. The ‘must have’ components are:
• Excellent standards of accommodation,
designed with families in mind, which is
something traditional hotels often get wrong
• High service levels and on-resort activities
designed to meet your customers’ needs
• Added value using external and internal
holiday exchange, as well as tailor-made
and concierge-style services
• Greater flexibility using points-based
systems – but these may not be the answer
for everyone
• Shorter term ownerships and memberships.
All of these benefits can add up to a
compelling shared-ownership product. Know
why people are attracted to your location,
understand what your customer is looking for
on holiday, and design your holiday product
around those needs.
27
 State of the Nation
INDIA
THE SHARED-HOLIDAY OWNERSHIP
industry in India is a business of significant
scale and its potential is great.
There are approximately 80 holiday
ownership companies throughout India today,
and the total number of resorts in the country is
around 180. Taken as a cumulative number, the
shared-holiday ownership industry, including
units in hotel and mixed-use resorts, represents
an overall capacity of around 9,000 units.
Product preference
Indian consumers are demonstrating a
preference for weeks, points and short-term
membership products. Most companies in India
today offer a contemporary product modelled
on the international points system. There is little
demand for the older fixed-weeks system.
The current product offers great use flexibility
across the different seasons and apartment
types, as well as access to fully-serviced resorts.
Short-term memberships haven’t really been
launched in a big way in India as yet, however
we are likely to see some action in that space
going forward.
The opportunities
There are many opportunities for a resort
developer coming into the market in India
today. We need to look to the younger buyer,
so there is a real need to orientate your
Leisure Real Estate
28 Trends & Opportunities
product towards the younger consumer.
The younger or Millennial buyer is looking
for value in their purchase – whether that is
value for money or value in the experience and
the choice your product delivers. Any shared-
holiday ownership products going to market
today should offer flexibility of use. Being
aligned to a holiday exchange services provider
is of great value, as this brings operational
benefits, such as floating weeks and being
able to offer a choice of check-in times so that
guests can take advantage of the differing
flight times the low-cost airlines make available.
There is also a need to simplify the product
and buying process. The industry should
move to the online platform for both its
purchasing and reservations processes to
increase efficiencies for both the customer
and the resort. As many as 60% of our buyers
today are under 40 years of age. This is a
significant demographic shift, and has a huge
impact on our product offerings and the way
we market them.
Online presence and social media are
important influencers and most Indian players
are focusing on increasing their share of
voice in the online space, driving customer
engagement, both online and offline – and on a
regular basis to build loyalty.
For the Millennial audience, drive-to
destinations are important. The strategy would

RAMESH RAMANATHAN
Chairman and Managing Director, Sterling Holidays, India
Executive Committee Member AIRDA (All India Resort
Development Association)
be to expand in this direction, as with multiple
resorts across the country this is a strong
marketing message for India’s Millennials.
India is a country of fabulous diversity in its
holiday destinations, from the famed beaches
of Goa to the hillside havens of Coorg and
the cultural riches of Puducherry. There is
every type of holiday experience within the
country to satisfy today’s experience-hungry
holidaymaker.
And it’s not just the domestic traveller.
TripAdvisor’s Adventure Travel Survey revealed
Goa, Rishikesh, Himachal Pradesh, Andaman
and Nicobar Islands, as well as Leh and Ladakh,
have become popular destinations.
Within the resorts themselves, it is important
to offer guests varied and unique holiday
experiences as they seek to distinguish their
holidays as an experience that is different from
the usual.
From a service perspective, there is intense
competition that can make our ‘wow’ factors
seem like the norm today. There is a need to
constantly evolve your product and service
standards to introduce new offerings to
surprise and delight your customer. You must
never stand still.
Right now, the industry revolves around
accommodation and services enjoyed while on
holiday. AIRDA recognises that today’s traveller
seeks a complete ecosystem for all their travel
LEISURE REAL ESTATE - THE OPPORTUNITIES
ABOUT RAMESH RAMANATHAN
Ramesh has over 38 years’ experience
over a range of industries, approximately
22 spent in the timeshare and hospitality
sectors. Ramesh is a pioneer in the Indian
industry, working with Sterling Holiday
Resorts in the early 1990s before helping
to set up Mahindra Holidays and Resorts in
1996. After being credited with establishing
the shared-holiday ownership concept
with the ‘Club Mahindra’ brand, making
Mahindra Holidays and Resorts one of the
largest holiday ownership companies in the
world, Ramesh rejoined Sterling Holidays in
2011 and succeeded in establishing it as a
leading player.
needs. Any resort – whether shared-holiday
ownership or not – needs to travel with its
customers, from holiday research and planning,
through to booking, travelling and while on
holiday. We can do this using digital and online
channels, social media and apps; and we all
need to evolve in that direction.
Travelling India
India is a rich source market. With a rapidly
growing affluent middle class, forecast by
Deloitte to exceed 600 million people in 2016.
The outbound travel sector is also growing.
According to the TripBarometer study by
TripAdvisor, 82% of Indian travellers planned
to try something new in 2016.
Tourism demonstrates consistent growth
in India. A number of recent studies set the
expectation that tourism’s contribution to the
country’s GDP will grow at an annual rate of
7.8% up to 2023, while domestic tourism is
expected to grow by up to 8% each year. The
average Indian family will spend between €700
and €2,800 on a holiday.
According to the new 2016 World Wealth
Report, India is ranked 7th in the world, in
front of Australia and Canada, with a reported
wealth of $5,600 billion – referring to the net
assets of the nation’s individuals.
With the right product, an investment in India
will definitely pay dividends.
29
 State of the Nation
USA

THE TIMESHARE INDUSTRY IN THE US

has experienced steady growth for the past
nine years. The AIF research study, State of
the Vacation Timeshare Industry: United States
Study 2019 edition, shows several positive
industry developments in 2018. Total sales
volume increased by nearly seven per cent
from $9.6 billion in 2017 to $10.2 billion in 2018.
The study also shows that developers sold
approximately 475,000 intervals in 2018 for
a total value of $10.2 billion.

Essential infrastructure
Innovation remains a key focus for the
industry and enhancing the owner experience
is at the forefront. Data analytics are being
utilised to further customise the product
offerings for consumers.
At the time of sale, information is gathered premium loyalty programmes to provide
about the owners’ vacation preferences, needs additional value through compelling benefits.
and wants. This data is then being shared with Customer engagement is key and providing
the owner services and resort management owners with rewards, including, cash back,
teams to provide a seamless experience alternative currencies such as paying for
during their vacation. The goal is to turn maintenance fees, or discounts for other
customers into brand loyalists. Timeshare products and services, are integral to
companies are also beginning to implement delivering the next level of service.

Leisure Real Estate

30 Trends & Opportunities
 ABOUT JASON GAMEL
Jason Gamel has served as President and
CEO of the American Resort Development
Association (ARDA) since 2019. His
current role at ARDA includes serving as
president of the ARDA Board of Directors,
the ARDA International Foundation (AIF)
Board of Trustees, and the ARDA-ROC
Board. Outside of ARDA, Jason serves on
the Board of Directors of the US Travel
Association. Prior to his current role, he
JASON GAMEL
President & CEO of the American Resort
served as Senior Vice President of Legal at
Development Association (ARDA) Wyndham Destinations.

U S K E Y I N D U S T RY M E T R I C S

SALES 2018 U S I N D U S T RY S I Z E
Numbers may not add up due to rounding up or down.

Average sales price $21,455 Resorts 1,580

Source: State of the Vacation Timeshare Industry:

Number of intervals or equivalents sold 475 ,0 2 0 Units 2 0 4 ,1 0 0

United States Study 2019 edition published by

Average resort size 129 UNITS

ARDA International Foundation, 2019.

2017 2018 CHANGE E CO N O M I C I M PAC T 2017

G R OW T H JOBS 540,410
S A L E S VO L U M E $9.6bn $10.2bn 7%
R E N TA L R E V E N U E $2.3bn $2.4bn 4% ECONOMIC OUTPUT $80.7bn
PERFORMANCE
CO N S U M E R S P E N D I N G $7.23bn
O C C U PA N C Y 81.4% 80.8% -0.7%
TA X E S
MAINTENANCE $10.8bn
$980 $1,035 2% (F EDERA L , STAT E & LOCA L)
F E E S (AVERAGE)
L A B O U R I N CO M E $29.9bn

What success looks like codes, business licensing and accessibility.

The timeshare industry is continuing to evolve
its product and strive to provide owners
and guests with unique and experiential
vacations at value prices. Timeshare offers
owners and guests the ability to vacation at
over 1,500 resorts in the US and over 5,300
resorts worldwide. In addition to offering more
space for the entire family, timeshare resorts
provide owners and guests with high brand
standards and a consistent vacation experience
that is regulated for safety, security, health
Today’s vacationers are looking beyond
resort amenities to unique experiences both
on and off the property. The combination
of timeshare’s on-site staff that are rooted
in the community, and our single focus on
hospitality, enables us to provide guests with
the knowledge to experience the local culture
and unique activities, whether that be through
an immersive cooking class on resort or a first-
hand recommendation of the area’s best kept
secrets.

LEISURE REAL ESTATE - THE OPPORTUNITIES 31

 State of the Nation
SOUTH AFRICA

ALMOST

400k
SHARED-
VACATION
OWNERS

AS ONE OF THE WORLD’S KEY MARKETS

in the shared-vacation ownership industry,

77%
South Africa reflects the sustained success of
the international timeshare industry, and offers
much opportunity for new developers.
Since its inception in the 1970s, when the rise RESORT
in inflation pushed the annual hotel vacation OCCUPANCY
out of reach for many families, shared-vacation
ownership has provided an alternative vacation
plan and redefined leisure travel for consumers
in South Africa.
Today, it has a significant footprint in the
tourism and hospitality sectors. According to
recent research by the Vacation Ownership
Association of Southern Africa (VOASA), the
industry boasts a mature 3.5 billion South
African Rand-per-annum in revenues, and
totals more than 190 resorts, and almost
400,000 shared-vacation owners.
Established in 1990, VOASA is a trade
association that represents the interests of
developers and consumers in the industry.
Its core objective is to raise the awareness of
the power of the industry by developing an
environment where the long-term viability
and growth of vacation ownership can be
optimally ensured.
Having the right mix of products to meet
individual lifestyles, coupled with a premium
portfolio of resorts in the country’s most
sought after locations, has laid a solid
foundation for our industry in South Africa.
Another key driving factor in the success of The industry today
the market is product innovation, developed in There are now more than 8,000 units in more
response to consumer vacation preferences. In than 190 resorts and an estimated 476,653
the past, as more and more customers opted weeks (or points equivalents) in use across all
for points-based products, it led to a much resorts. Holiday periods, notably December,
higher propensity for developers and resorts remain the most popular periods in which to
to offer a points-ownership product instead own shared-vacation ownership products in
of a weeks-ownership product. The industry South Africa. Today, the industry in the region
also responded to the need for flexibility by comprises of 17 clubs/timeshare companies,
introducing a more user-friendly format that eight marketers, 14 developers, 15 managing
has progressed to the popular vacation club agents and four exchange organisations.
product. A steady growth in resort occupancy, to

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32 Trends & Opportunities

TONY RIDL
Chairman of the Vacation Ownership Association of
Southern Africa (VOASA)
77%, demonstrates that shared-ownership
continues to be a popular vacation choice for
many consumers, and the upward trend of
club-timeshare company memberships is also
forecast to continue, growing by approximately
17% over the next two years.
Customers also benefit from a great deal
of flexibility from their ownership products
today as, on average, the percentage of resorts
affiliated to one or more vacation exchange
providers has increased from 94% to 99%
from 2010/11 to 2015.
The knock-on effect of its success has
also made a hugely positive impact on the
country’s economy, contributing an estimated
44.4 billion South African Rand to the Gross
Domestic Product (GDP). Furthermore,
the industry provides employment for
approximately 94,374 people, ranging from
highly skilled to informal positions within the
hospitality and construction sectors.
An area of opportunity
The vast and intriguing landscape of South
Africa, with its eclectic resort towns, powdery
beaches, and tantalising African culture, makes
it a holiday destination popular with global
visitors and South Africans alike.
In particular, the emerging South African
middle-class provides a significant opportunity
for the shared-vacation ownership market.
LEISURE REAL ESTATE - THE OPPORTUNITIES
ABOUT TONY RIDL
In 1981 Tony Ridl became one of the
pioneers of the vacation-ownership
industry in South Africa. Since then, he
has continued to be an innovator for the
industry and also developed Cape Town’s
Bantry Bay International Vacation Resort,
one of the most successful vacation
ownership resorts in the world. In 1994,
together with Stuart Lamont, Tony Ridl
formed Club Leisure Group, one of the
world’s largest vacation clubs which
services over 200,000 member families.
Now is an excellent time for the industry to
revitalise market demand and boost further
awareness of the benefits of purchasing a
shared-vacation ownership product.
Approximately 16 resorts have been
completed over the past five years, comprising
mostly of studios and two-bedroom units,
providing more choice of accommodation,
amenities and prices for the consumer. Looking
ahead, resort development will continue to
play a key role in shaping the future of shared-
vacation ownership in South Africa.
There is still vast untapped potential for new
developments, which is predominantly in the
preferred coastal and bush destinations. The
areas earmarked for future development are
the KwaZulu-Natal north coast, the Western
Cape and the inland surrounding regions of
Gauteng. The KwaZulu-Natal south coast
has also been identified as an area with
prospective opportunities for the conversions
of properties to resorts offering shared-
vacation ownership products.
With a notable property upgrade of more
than 500 million South African Rand over
the past five years; 60% of resorts under
refurbishment and two-thirds of developers
planning to develop new resorts in the next
five years, with 450 new units in the pipeline,
the future for the shared-vacation ownership
industry in South Africa is very promising.
33
 State of the Nation
ASIA & PACIFIC

THE LEISURE REAL ESTATE AND SHARED-

vacation ownership industry in Asia Pacific
has seen a considerable growth in the last five
years. To date, RCI is the vacation exchange
company for more than 222 resorts across Asia,
demonstrating the strength of the industry in
this region.
The number of resorts is expected to grow
exponentially in the next five to 10 years, as
developers now see a great opportunity with
shared-vacation ownerships to drive occupancy
levels, especially as the hotel business has been
affected by falling occupancy levels across the
board. Asia is one of the regions which offers
the most opportunity for developers, as the
real estate/shared-ownerships industry in Asia
represents only about 10 per cent of the shared-
vacation ownership industry across the world.

Purchasing trends
Historically, the majority of shared-vacation
ownerships in the Asia Pacific region were
weeks and ownership products but, more
recently, we have seen an increased interest in
the points product, with vacationers seeking
the flexibility of a nightly stay, as opposed to a
weekly stay.

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34 Trends & Opportunities

ISABELLA NG
Director, Business Development North Asia,
RCI Asia Pacific
In the last few years we have also seen the
emergence of the ‘condotel’ model, where
owners who purchase a condo unit are given two
weeks right-of-use, and the rest of the time is
leased back to the hotel for operations. This new
model benefits both the consumer and the hotel,
and as a result, it is proving to be extremely
popular in emerging markets such as Vietnam.
Challenges and opportunities
The shared-vacation ownership industry
is not without its challenges, given the
legacies surrounding timeshare and common
misconceptions. The industry responds to these
challenges by continuously reinventing itself
and developing innovative products which are
relevant to today’s consumer, and packaging
them in a way which will attract new consumers.
In years to come, the traditional weeks
programme with a right-of-use of 25 years
and above may not be as relevant to the
consumer, particularly with the emergence
of Online Travel Agencies (OTAs) and Airbnb
portals offering real–time accommodation.
Shorter term ownerships will help drive the
industry and enable it to remain competitive,
and it is essential that the industry is proactive
in developing new products. One innovative
way I believe the industry could challenge its
competitors, is to have a product in market
which enables hotels to sell points as a form
of loyalty programme, while utilising RCI
as an exchange provider when their loyalty
LEISURE REAL ESTATE - THE OPPORTUNITIES
ISABELLA NG
Isabella brings vast experience in
relationship management, leadership and
business development in the hospitality
and travel industry. Prior to joining RCI,
Isabella worked with Orbitz Worldwide,
where she was responsible for overseeing
the general business performance and
partner relationships across the North Asia
region. Isabella was also with Langham
Hospitality Group for 10 years in various
areas including revenue management, sales
and marketing and e-commerce.
members wish to stay in timeshare resorts.
Having such a product in place will enable
developers outside their own group to
position themselves as selling loyalty points
instead of a traditional timeshare product.
Selling to the Millennial consumer
Millennials today are driven by new experiences
and adventures. Traditional and mainstream
methods of selling timeshare or shared-vacation
ownership products to them will not work.
One-to-one, hard-sell sales decks should not be
used when trying to pitch this product to the
Millennial consumer and instead, social media
channels and casual functions, such as a cocktail
party, will be successful tools and situations to
leverage. In essence, Millennials are driven to
purchase when you sell them experiences.
The fundamentals of shared-vacation
ownership in the region
In order to streamline and create greater
checks and balances in the industry, it is
essential that regional and independent
trade bodies exist, such as the Malaysian
Holiday Timeshare Developers’ Federation
(MHTDF) and the Thai Vacation Ownership
Association (TVOA). These timeshare bodies
and associations develop a Code of Conduct
for new or existing shared-vacation ownership
players in the market, and can also align or
lobby against legislation that can have a
positive or negative impact on the industry.
35
 State of the Nation
LATIN AMERICA

WITHOUT A DOUBT, THE VACATION-

ownership industry in Mexico and Latin
America is an important sector of the tourism
market for the region, making a contribution
of more than 370,000 intervals, or week-stay
periods, sold in 2015.
The industry in this region has seen a
compound annual growth of 12% for the last
five years. Mexico ranks at the top of the
market, with a 56% share of the total regional
sales, having the advantage of a variety of
high-quality products located in stunning
beach destinations that offer amenities and
services for the most discerning of travellers.
In the LATAM* region, as many as 1,520
resorts are affiliated to a vacation exchange

370,000+
company. Mexico leads the way, having 46%
(549 resorts) in three top destinations:
Cancun/Riviera Maya, Puerto Vallarta/Riviera
Nayarit and Los Cabos. Brazil is the second INTERVALS SOLD
largest country in terms of resorts benefiting
IN 2015
from affiliation to a vacation exchange
services provider with 193 affiliated, and
enjoying a compound annual growth of 8% in
the last five years.

Leisure Real Estate

36 Trends & Opportunities

JUAN IGNACIO RODRIGUEZ
Executive Director, RCI Mexico
Chairman of the Board of Directors (2019 - 2020),
AMDETUR (Asociación Mexicana de
Desarrolladores Turisticos)
In terms of intervals or weeks sold by
product type during 2015, in LATAM, 45% were
points based, followed by a floating unit/week
at 43% of sales, and travel clubs with 12%.
However each country has its own
particularities and we find a predominance of
points products in Chile, Bolivia, Peru, Colombia,
Ecuador, and Venezuela; and a preference for
floating week products in Argentina. Moreover,
Brazil shows a 40/60 mix between floating
and points products, whereas Mexico presents
a balanced distribution of 34/37/30 between
floating, points and travel clubs.
A preference for flexible products with
short-term memberships is currently trending
in the region. Trends also highlight the need
for a variety of destination offers and a
combination of experiences based around
locations, such as beach, mountain, cities, and
vineyards, among others.
Consumer preferences are always evolving;
new generations with different behaviours
and characteristics want different experiences.
That’s why it’s important to invest in product
innovation and development opportunities,
introducing new offers in terms of
destinations, flexibility, pricing and ease
of use at regular intervals.
LEISURE REAL ESTATE - THE OPPORTUNITIES
ABOUT JUAN IGNACIO RODRIGUEZ
Juan Ignacio Rodriguez has more than 25
years of experience in executive operations,
sales and marketing positions. He joined
RCI in 2000 and, during this time, has led
the redesign and re-engineering of RCI’s
member services across the business,
as well as holding key positions in RCI
Mexico, Latin America and Europe. Under
his leadership, several new products and
services have been designed, developed
and launched in tourist destinations.
Developers in this region are starting to
implement social media and digital strategies,
and this is necessary to reach new markets.
The introduction of new technologies, such
as the Internet of Things and big data, will be
the next step to enable an interaction with the
younger consumer generation. Intelligence
harvested from such communications will be
applied to enhancing the guest experience to
generate more sales in a Millennial market.
Millennials are a huge consumer sector that
cannot be ignored. They think differently, and
the way they live and interact with one another
is different to previous generations.
Tourism bodies in this region are changing
the way they speak to this generation. The
use of virtual and digital marketing, the
importance of digital storytelling, the strategic
use of real-time data, interactive apps, and
beacon promotions, among others, are now all
going to be steps in a colloquial and marketing
interaction with this important audience in the
future.
*LATAM region includes Mexico, Belize, Guatemala, Honduras,
El Salvador, Nicaragua, Costa Rica, Panama, Colombia, Venezuela,
Ecuador, Peru, Bolivia, Brazil, Chile, Argentina, Paraguay and Uruguay.
37
 PHYSICAL AND NON-PHYSICAL

Product
Dimensions
Shared-ownership design includes many of the same physical product considerations as
residential development. New entrants will find, however, that there are a number of additional
non-physical product dimensions to consider in the shared-ownership model.

Physical Considerations Non-Physical Considerations

• Master Plan • Resort Networking • Use Plan:
• Architecture • Exchange Solution i. Fixed Week (holiday ownership)
• Interior Design • Deed vs. Right-to-Use ii. Floating Week (holiday ownership)
• Floor Plans • Legal Structure iii. Points (holiday ownership)
• Amenities • Service Levels iv. Annual Selection
• Facilities • Management Solution (fractional/private residence club)
• Owner Benefits v. Fixed Rotation
Programme (fractional/private residence club)

DESIGN OF PHYSICAL PRODUCT:

HOLIDAY OWNERSHIP VS. RESIDENTIAL
The design principles associated with holiday ownership differ in some important aspects from
traditional residential developments.

H O L I DAY OW N E R S H I P RESIDENTIAL

Designed around the needs

of transient holidaymakers,
assumes high level of use.
D E V E LO P M E N T Designed around the needs of
Layout may consciously factor
L AYO U T a single residential owner.
accommodating sales tour
flow and transient operational
considerations.

Large outdoor living space with Not often pre-designated.

OUTDOOR
amenities such as barbecue End user responsible for design
S PAC E
grills, dining area, etc. if desired.

Comprehensive resort style

COMMON Resort style amenities limited
amenities, expansive pools or
AMENITIES to very high-end products.
alternative leisure amenities.

Partial or fully equipped.

Full kitchen design to
Functionality not typically as
K I TC H E N S accommodate all major
comprehensive as residential
appliances.
product.

Leisure Real Estate

38 Trends & Opportunities
MANAGEMENT SERVICE
CONSIDERATIONS
While there are many synergies with hotel operations, shared-holiday ownership servicing has some
unique dimensions. The following areas may need to be addressed once your project is operational:
Property & Facilities Owner Services Rental Management
Management • Check-In (if applicable)
• Resort Maintenance • Reservations, Owner • Central Reservation
and Repairs Inquiry, Product System
• Housekeeping Information • Inventory Management
• Front of House • Owner Communications/ • Marketing
• Capital Improvement and Annual Maintenance
Financial Management
Replacement Reserves Fee Statements
• Operating Budget
• Home Owner Association/
• Owner Dues, Assessment
Board Management
Fees, User Fees
• Accounts Payable.

Considerations when determining if management services should be outsourced or

managed in-house include:
Fee Structure: Either a flat fee model (with margin built in) or a ‘cost plus service charge’
(service charge typically built as a percentage of cost). Either fee structure can be very
attractive as scale builds.
Core Competency: Does your organisation’s unique strengths include management services and
an understanding of timeshare owner association issues?
Sales and Service Integration: Synergies can be found between sales and servicing, especially
related to add-on sales and referral programmes.

UNIT SIZE ALLOCATION

There are approximately 92,000 shared-holiday ownership units in EMEA.
Below is the breakdown of units by type and size:

NUMBER OF % O F TOTA L AV E R AG E U N I T
DESCRIPTION
UNITS UNITS S I Z E (FEET 2 )

Studio units 11,801 13% 330

1 Bedroom units 35,450 38% 552

2 Bedroom units 29,176 32% 1,197

3+ Bedroom units 4,947 5% 1,726

Hotel room units 10,864 12% 298

*Source: Shared-Vacation Ownership Worldwide Report: 2016 Edition prepared by Oxford Economics and Leger for ARDA International Foundation.

KEY SUCCESS FACTORS 39

 Strategic
Considerations
Once you have decided that shared-holiday ownership is the appropriate component for your
business development strategy, there are still several important decisions to be made.
Vision
Is your business strategy based around a single
project and single site, or are you creating a
shared-holiday ownership business which will
transcend individual developments? Will you
operate across multiple jurisdictions? If so,
will you create new products and brands in
each market you enter or aim for a product
that is flexible enough to meet the needs of
customers across the region and potentially
around the globe?
Marketing approaches
How should your product be marketed,
what is the appropriate design for your
sales centre(s), and where should they be
located? Should you build your own sales
and marketing capability or outsource to a
capable partner? All of these are important
questions, and answers will be based around
the individual needs of your business.
Leisure Real Estate
40 Trends & Opportunities
Management services
There is no question that owner satisfaction
is linked to future success. The right service
strategy will yield results for years to come.
Legal structure
Ownership rights are a defining feature of
shared-holiday ownership products. Deeded,
right-to-use, trusts and club structures are all
options to consider.
Exchange: A key to success
Holiday exchange is a solution which enables
your customer to leverage their shared-holiday
ownership interest as a key that opens the
door to holidays around the world. Multiple
platforms exist: weeks, points and luxury
segment solutions. The right platform for you
will depend on your product, target market
and business strategy.
Human Resource
Requirements
PROPOSED ORGANISATION CHART FOR
HOLIDAY-OWNERSHIP OPERATION OF A
MODERATE SCALE*

M D H O L I DAY C LU B

D I R E C TO R O F S A L E S D I R E C TO R O F M A R K E T I N G

SALES SALES SALES MARKETING MARKETING

M A N AG E R M A N AG E R M A N AG E R M A N AG E R M A N AG E R

SALES SALES SALES MARKETING MARKETING

REPS REPS REPS REPS REPS
(8) (8) (8) (8) (8)

Fractional resorts and private residential clubs featuring smaller interest sizes (e.g. 1/20) may
employ a similar organisational structure. It must be remembered that a different size of operation
will require a differing composition of sales and marketing teams. It is also worth remembering
that the shared-holiday ownership industry has a robust network of experienced sales and
marketing consultancies to support your operation.

*Excludes administrative roles.

KEY SUCCESS FACTORS 41

 Europe: Opportunity
for the Adventurous
EUROPE IS A REGION THAT HAS SO MUCH
to offer the tourist, and therefore represents a
business opportunity which no operator can
afford to ignore. At the same time Europe,
like other places, has its challenges with
‘curve-balls’ such as Brexit throwing up some
unexpected distractions from time to time.
Timeshare has operated in Europe since the
1980s and we have seen a steady evolution
from an unregulated environment to one
with some of the strictest consumer and
industry-specific legislation, anywhere in the
world. Those of us who have lived through
the changes have helped to build a structure
around the complexities of the legislation and
the positive is that today we are dealing with a
known quantity rather than with ‘what ifs’.
On hand to help
A new entrant to the timeshare business in
Europe will have the same concerns as in any
other industry, namely to make sure they can
work within the legislative environment and
have a product which is attractive to buyers.
As with many sectors, the timeshare operator
must also be confident that in delivering
their product, they can rely on a range of
experienced service providers to supplement
the essential services they must deliver to their
customers and which, for sound commercial
reasons, the operator may not want to
resource in-house.
Leisure Real Estate
42 Trends & Opportunities
Consideration:
1. Legislative environment: At the time of
print there are 28 member states within
the EU (soon to be one less following
Brexit). Fortunately, there is now a
predictable and harmonised range of
consumer and sector-specific laws in force
in each EU member country. As far as
timeshare is concerned, most countries
have regulated the sales practices, though
it is worth noting that some, such as Spain
and France, have gone further by imposing
specific rules on the structure of timeshare
products created within properties in
their country. Hire competent lawyers and
accountants who specialise in timeshare –
money spent upfront can reap benefits in
the future.
2. Products: Just as in every other walk of
life, we see rapid development and shifts
in consumer spending and leisure activity
patterns. Timeshare products have had to
evolve. The trend is now for the highest
quality of accommodation – and the bar
was already set high. Resorts are now
expected to offer a range of experiences
for guests to enjoy on holiday and there
is a seemingly unstoppable push towards
shorter term products. Skilfully crafted,
today’s timeshare product should combine
the quality offerings of the traditional

EUGENE MISKELLY
Chairman & Board Member, RDO Legislative Counsel
timeshare with more flexibility for the user
and, of course, an even more compelling
commercial commitment for the buyer.
One of the great strengths of timeshare
is that it has always managed to preserve
its adaptability to changing circumstances
– as well as proving resilient in times of
economic fluctuation.
An operator should offer a buyer a
finance option, and early consideration
must be given to which lender to
approach. Lending tends to be country
specific, so it is never too early to start
conversations.
The independent trustee/fiduciary plays
an important role in the business. Its job
is to hold and protect the real estate to
guarantee the timeshare-use rights being
sold to the purchaser.
The purchase can then be made with
confidence that there is a property and use
period behind it. The trustee has become
such an integral part of timeshare projects,
that almost certainly any lender will insist
on there being one in the equation.
3. Service providers: The operator should be
keen to ensure excellence in his business,
especially in customer interactions, and
it is fortunate in this industry to be able
to call on a raft of experienced providers
offering support in every area of operation,
ABOUT EUGENE MISKELLY
Based in the UK and Spain, Eugene has
been involved over the last 25 years in
various aspects of the industry, from
trust company and exchange through
to developer and resort management.
Qualified as a lawyer in the UK, he has
worked in private practice, private equity
investment and as General Counsel. Eugene
also chairs RDO’s Legislative Council and is
an RDO Board member.
from resort management, trustee services,
and holiday exchange to cruise options
and a range of membership benefits.
While many aspects of doing business in
Europe will come down to local country-
specific requirements, the degree of
harmonisation and familiarity of approach
is reassuring.
Even in the face of economic uncertainty,
operators in this industry sector have
the advantage of being able to surround
themselves with experienced commercial
partners who will instinctively guide a
new industry entrant to identify the best
opportunities for their property, and to do
the right thing with it, at the right time.
Europe’s many and varied fantastic
destinations are always going to attract
holiday makers from across the world. Having
experiences which are second to none and
a well-educated work force to deliver on the
promise, means that Europe will always be an
enduringly strong tourism market.
PROTECTING YOUR CONSUMER 43
 Protecting the
Consumer &
Strengthening
Credibility
IF YOU ARE OPERATING IN THE TIMESHARE
and shared-vacation ownership hospitality
sector, then you can be assured that your
customers buying timeshare today are protected
by the most stringent consumer protection to
be found in any of the retail sectors.
The industry has implemented two EU
Consumer Directives to date – the last one
being implemented in 2011 – and both have
been translated into domestic law across
the European member states. The 2011 EU
Timeshare Directive tightened up the first
Directive and clarified certain provisions.
The most important legal requirements of
the 2011 EU Timeshare Directive were a 14-day
cooling-off period for purchasers after contract
signing, and a total ban on the taking of any
deposit monies during that period.
The 2011 Directive extended this legislation
to so-called ‘long-term holiday products’ that
had previously escaped the reach of the first
Directive. The inclusion of all long-term holiday
products by the EU Commission was done
at the request of the timeshare industry, as
represented by RDO (Resort Development
Organisation), the industry’s governing trade
body in Europe.
Leisure Real Estate
44 Trends & Opportunities
Structure and credibility
EU legislation under-pins consumer
protection for timeshare in Europe, giving the
business a secure structure, as well as building
credibility and trust among its consumers and
industry suppliers.
However, RDO, believes that industry
operators need direction and support closer
to the ground – and closer to home than the
lawmakers in Brussels. To ensure best practice
in Europe with regard to the sale and provision
of timeshare products, RDO implemented
the RDO Code of Conduct, and any industry
entrant applying to become an RDO member
agrees to abide by these regulations. The
RDO Code of Conduct is all about treating
the consumer fairly, and accepting any RDO
decision during mediation procedures when
dealing with a consumer issue. It puts a fair and
reasonable structure around the business of
customer complaint resolution.
Product term
Much discussion and publicity has been given
to the issue of exit routes from ownership by
timeshare owners.

PAUL GARDNER-BOUGAARD
Chief Executive, RDO
This is very much a legacy issue in that it
relates back to timeshare products bought
in the 80’s and 90’s. It is considered a legacy
problem because those early buyers were
signed up to either 30-year or in-perpetuity
contracts, and found it difficult to get out of
them when they reached a stage in life where
travel was not possible any longer. Back during
the time of purchase, they did want to seek out
long-term ownerships, as it was fashionable to
‘own’ assets then.
That has changed. Today’s Millennial buyers
are looking for more flexibility, reduced financial
exposure and are much less likely to find a long-
term commitment an attractive proposition than
their Baby Boomer forebears did.
Most, if not all timeshare products, sold
today are offered on a much shorter term of
ownership. Typically sold as three-, five- or
ten-year ownerships or memberships, they
are now sold with a definitive end date to the
ownership contract.
‘Try before you buy’ or offering mini-breaks
and, say, three-year memberships are ideal ways
of allowing potential buyers to sample your
brand experience, giving you the opportunity to
upsell to those strong sales leads.
To deal with the legacy issues for early
owners, RDO has introduced a solution by
setting out ownership exit criteria for owners
at RDO member resorts.
ABOUT PAUL GARDNER-BOUGAARD
Paul has been Chief Executive of RDO
since 2007 and was formerly a practicing
barrister at the English Bar, specialising
in EU law. He has worked with the EU
Commission in Brussels, before moving into
financial services with the Abbey National,
where he headed up European expansion,
becoming MD of its estate agency network.
He then joined the IFG Group where he
ran the trustee business and overseas
operations, before joining RDO.
Owners can walk away where:
• One spouse/partner dies and the other
no longer wishes to continue with the
timeshare and the next of kin and/or
siblings do not want to take it on.
• A sole owner dies, and the above
provisions apply.
• An owner, or either of the joint owners, is
suffering ill-health and is no longer able to
travel to their home resort.
• Personal bankruptcy has occurred and, in
addition, RDO recognises that any owner
can at any time apply to exit, subject to
the permission of the developer and/or the
membership club.
• The RDO member resort imposes a charge
to allow the owner to exit, that cannot
be more than three times the annual
maintenance fee.
A large number of RDO member resorts will
automatically grant exit to their long-standing
owners, as long as they are up to date with
their maintenance payments.
As a developer of any shared-holiday
ownership business, you must look upon your
exit strategy as an entry strategy, because
without a properly structured process for
owners to hand back their timeshares when
circumstances dictate, potential buyers will be
reluctant to commit to that contract.
PROTECTING YOUR CONSUMER 45
 Considering
the Contract
THE EU TIMESHARE DIRECTIVE IS
transposed into the national laws of the EU
member countries, so it is necessary to look at
the individual laws of each country to assess
the legal requirements in your target market.
As the national timeshare laws follow the EU
legislation closely, the basic requirements
should be fairly consistent across the EU.
The most crucial elements are that standard
information must be provided to potential
owners upfront; the taking of pre-sale deposits
is illegal; and any contract signing is subject to
a 14-day cooling-off period.
Nuts & bolts
Think carefully about your target markets,
because the Directive stipulates that all sales
contracts and standard pre-sale information
must be laid out in the native language of your
purchaser or in the language of their country of
residence – whichever they prefer, provided it is
an official language of the EEA. There is a cost
associated with the translation of the materials.
Other considerations to note are:
• The timeshare product must never be
marketed as an investment product that
can be expected to increase in value.
• There should be complete transparency
of purpose and product detail throughout
the sales process – from presentations and
information distributed at sales events to
the contract itself.
• Your contract should contain all key product
information that had been given in advance.
• Include a standard Withdrawal Form making
the withdrawal or cooling-off period clear.
Leisure Real Estate
46 Trends & Opportunities
• Always get a clear purchaser signature to
prove purchaser awareness of all aspects of
the sale.
• If an exchange contract is also entered into,
this should also satisfy the requirements of
the legislation (and if there is a cancellation
during the cooling-off period, the exchange
contract will automatically fall away).
Shaping your product
The Directive does not regulate the structure of
your business model or scheme. That is for the
resort developer to decide, with guidance and
support from the industry experts. A primary
consideration is to choose a model that works
in the country where your resort is located.
It is crucial to take local advice, not only in
respect of the timeshare legislation, but also
any relevant consumer protection legislation
which may affect your plans. Some examples
of potential structures include:
Club trustee system
The most common timeshare structure used
in the UK, it requires the purchasers to join an
owners’ club. The club committee works with
the resort developer and/or its management
company. The units are held in trust by a
Trustee company for the benefit of the club
members. This model offers your owners
protection against developer bankruptcy,
which is a strong selling point and will give
your purchasers confidence in your product.
Corporate structure
Popular for certain fractional products in
recent years, your owners become members
of a company which is limited by guarantee.

S U S A N M CF A D Y E N
Director Business Services - Corporate and Commercial,
Blackadders LLP, Solicitors
The company owns the assets or units behind
the sold weeks’ intervals and the company
directors are often elected by the owners.
It is possible to include restrictions on sale,
borrowing and creating mortgages against the
property, which means that there should be
very little risk of the company running up debts
and becoming insolvent.
Operating in different countries may require
different legal structures. Whatever the
contractual arrangement, it is important to
use a lawyer who is knowledgeable about EU
legislation, national requirements, and can draft
a contract that is fair to the consumer, thereby
instilling confidence.
It is worth considering that the Timeshare
Directive, and relevant national laws, can
also apply to fractional sales, as ‘timeshare
contracts’ are broadly defined in the law.
Fractional or mixed-use resorts could fall within
the definition of ‘timeshare contracts’, even
if they are not thought of as timeshare, or
marketed and sold as such.
Top tips
If you choose to operate a mixed-use model,
think carefully how your hotel guests interact
with your owners and what facilities each
guest category can access. It is important to
give your owners some standout benefits to
reward their financial commitment to your
brand with real value adds. You might consider
an exclusive members’ club floor and bar, or
complimentary refreshments and services.
ABOUT SUSAN MCFADYEN
Susan is a director at Blackadders
Solicitors, specialising in corporate and
commercial law. She assists a wide range
of clients, with a particular interest in
holiday ownership, having advised
RCI Europe for over 15 years. She has also
acted for developers in establishing shared-
ownership schemes, and in managing legal
issues arising from existing schemes.
The market today is moving towards shorter
breaks and greater flexibility in ways to holiday.
The majority of developers are now selling
short-term ownership and memberships of
five and ten years. Short-term products give
you an opportunity to upsell to those who
have bought into your brand experience, and
exchange arrangements allow you to offer the
flexibility which today’s owners desire.
Maintenance fees are essential to maintain
your resort quality. However, it may be
a better purchase experience, reducing
resistance to sale closure, if you incorporate
the maintenance fees into the purchase price,
instead of setting them as an additional annual
levy. Clearly, this will only be possible with a
short-term product.
Always set an end date to the contract, at
which point the property usually reverts back
to the developer company for resale. In some
fractional schemes, the property will be sold
when the contracted period of ownership
expires, and a portion of any equity accruing
during the ownership period may be shared
out between the owners.
It is important to remember that the legal
structure of the scheme is not specified by
the Timeshare Directive or, in general, by local
legislation. Your lawyer can guide you to the
best model and contract for your situation and
purpose. There is much scope to customise your
model with a view to, ideally, ensuring the best
ROI whilst delivering a great owner experience.
PROTECTING YOUR CONSUMER 47
 PARTNERING WITH

RCI Exchanges
RCI is part of Wyndham Destinations, which is the world’s largest holiday ownership, exchange
and rental company, with a team of 25,000 associates across the world.

As the world’s leading holiday exchange provider, RCI helps more than 3.8 million families to enjoy
amazing exchange holiday experiences. Through its RCI Exchanges family of brands, which includes
RCI, The Registry Collection, Love Home Swap and DAE, RCI Exchanges delivers products and
services to support the growth of the leisure real estate industry across the world.
RCI pioneered the concept of shared-holiday ownership exchange in 1974 and since then has
continued to lead the innovation of the shared-holiday ownership industry.
Affiliating your resort and/or hotel accommodation to the RCI exchange network enhances the
benefits of your shared-ownership product, giving your customers access to holidays worldwide
through a holiday exchange platform – connecting you to more than 4,300 affiliated resorts in
over 110 countries.
Your owners, who will then become RCI members, receive access to exclusive benefits and
enhanced services, including member reward programmes and special offers, in addition to being
part of a global member community. With twice the number of affiliated resorts than our closest
competitor, RCI gives your owners more variety of exchange holiday options than any other
exchange holiday provider.
RCI Weeks was the pioneering exchange programme, and today it is a fully transparent
exchange system based on trading power, while adding additional flexibility and value to our
affiliates’ product and member experience. RCI Points is a global points-based exchange system,
the first of its kind in the industry.

What can RCI do for you?

RCI has partnered with developers and hospitality companies across the globe to create a
shared-ownership holiday club, with additional fractional and private residence club offerings.
As a global leader and innovator, RCI is renowned for being a trusted partner, delivering first-to-
market products and services to its affiliates. With more than four decades of experience in the
industry, RCI is well-equipped to support you, from strategy development and product design,
through to launch and operation.
Our Business Development and Resort Operations teams have the expertise to support all
sizes and scale of resort development, at any stage of planning and implementation. RCI’s 360°
approach delivers full circle support to your business, providing the resource, experience and
flexibility to work with you on a partnership basis to suit the requirements of your developments
and support you in creating a successful and resilient product.

RCI can support your business through:

• Assistance with initial setup, business • Sharing RCI member feedback on resort
models and legal framework, as well as experience and partnering with you in
brand/marketing programme design ongoing resort quality and maintenance

• Putting you in touch with the best
professionals in the business to build an
experienced support network, such as
financiers, trustee companies, legal firms,
marketing and sales teams
• Giving you access to its multi-million euro
global technology platform
• Providing expert inventory and club
management capability
• Assisting with product training
• Working with you to create a ‘white label’
own-brand customised club membership
product
• Featuring your resort in direct mail and
email campaigns to drive resort occupancy
levels and leads
• Providing customised point of sale
marketing materials, RCI Video Brochures,
RCI LiveStream and RCI Presenter products,
plus RCI TV and RCI.com for members with
full online account management access.

For more information visit www.RCI.com or www.RCIAffiliates.com

Leisure Real Estate

48 Trends & Opportunities
WHO IS RCI?
EXCHANGE
HOLIDAYS IN

110+
COUNTRIES
3.8m
MEMBER
FAMILIES

MORE THAN

50m
RESERVATIONS
MORE THAN

4,300
SINCE FOUNDING AFFILIATED
RESORTS

WHAT CAN RCI DO

FOR YOU?
• Offer 360° support

• Business advantage through the

RCI Exchanges family of brands

• Identify opportunities and

competitive advantage

• Feasibility studies

• Product definition process

• Financial planning exercises

• Sales and marketing support

• Insight on industry best practices

• Worldwide credibility

WHO DO WE
WORK WITH?
• Intimate and independent resorts

• Large-scale international operations

• Hotels with mixed-use benefits

• Residential leisure properties

• Luxury, timeless villas

WHAT IS EXCHANGE? 49
 ABOUT

The Registry
Collection®
As part of the RCI Exchanges family of brands, The Registry Collection® is the global leader in
the luxury shared-ownership exchange industry, offering a full-service, single-source growth
alliance for our affiliates.

The Registry Collection® programme offers a unique suite of services, providing luxury
real estate developers with an added benefit to offer their prospective owners. Buyers
gain access to a variety of travel-related services through the programme, and its Travel
Concierge and Collection Partners, with their real estate purchase.
From condo-hotels and high-end fractional resorts to private residence clubs and fractional
yachts, The Registry Collection® programme facilitates exchanges around the world to some of
the most unique properties, redefining the luxury holiday and second home experience for owners
and developers.
Developers affiliated to the programme can offer their purchasers the largest choice of luxury
exchange options currently available, as well as benefitting from exclusive developer services
such as the Early Privileges Programme. This gives developers the opportunity to offer off-plan
purchasers the chance to take holidays in The Registry Collection® properties that are available
while waiting for the keys to their own properties.

Global coverage:

• Luxury exchange portfolio with more • Account management and member

than 240 affiliated properties in over servicing offices in the UK, US, India,
40 countries, either accessible for South Africa and Mexico.
exchange or under development.

A wide range of products and ownership types in our exchange network:

• Private residence clubs • Fractional yachts

• Fractional resorts • Select whole ownership vacation homes

• Condo-hotels • Luxury resort real estate developments

• Luxury timeshares

To find out more, visit www.TheRegistryCollection.com or www.TRCAffiliates.com

Leisure Real Estate

50 Trends & Opportunities
ABOUT

Love Home Swap

Love Home Swap joined the RCI Exchanges family of brands in 2017. A key player in the
sharing economy space, London-based Love Home Swap was launched in 2011 and is one
of the world’s leading home exchange programmes.

Championing the idea of home swapping, Love Home Swap was inspired by the concept of
helping people travel the world through the power of sharing, and enables homeowners to
unlock the financial power of their properties to create unique travel opportunities.

With more than 10,000 member properties in over 100 countries, Love Home Swap’s simple swap
system allows homeowners to exchange with other like-minded owners around the world, and
enhance their leisure time by seeking more authentic lodging experiences versus standard travel
accommodation.
Love Home Swap offers a flexible vacation exchange programme for the whole ownership
category, offering homeowners and developers:

• A flexible exchange system with Direct and
Points swap options to suit customer needs
• Dedicated customer service team, with
online and call centre servicing in English,
French and Spanish
• Choice of three membership tiers as part
of the suite of products – perfect for
onboarding and upselling to your clients,
with specially packaged offers and benefits
• Commercial benefits with an exclusive B2B
membership pricing model as an added
sales incentive
• A wide pool of property types, from
cottages to chateaux, offering your
customers a unique selection of
extraordinary properties
• Opportunities for developers to increase
utilisation and expand revenue streams

For more information, visit www.LoveHomeSwap.com or contact info@lovehomeswap.com

quoting ‘Leisure Real Estate’.

WHAT IS EXCHANGE? 51
 ABOUT

Dial An Exchange
Dial An Exchange (DAE) was established more than 20 years ago to enable holiday owners to
find their dream exchange, both simply and affordably.

DAE was acquired by RCI Exchanges to enhance its portfolio of brands, leveraging its position as
the world’s leading exchange holiday provider, and strengthening its position in the shared-holiday
ownership market.

DAE operates from more than ten offices across the globe and primarily supports Home Owner
Associations (HOAs) and sold-out resorts with their resort operations.

The DAE brand prides itself on its strong partnerships with legacy resorts and their valued,
long-standing members.

For more information, visit www.DialAnExchange.com

Leisure Real Estate

52 Trends & Opportunities
Key Global Trade
Associations
ARDA
www.arda.org
The American Resort Development Association
(ARDA) is the Washington DC-based trade
association representing the vacation
ownership and resort development industries
(timeshares). ARDA has almost 1,000
corporate members ranging from privately
held firms to publicly traded corporations
with extensive experience in shared-vacation
ownership interests in leisure real estate.
The membership also includes timeshare
home owner associations (HOAs), resort
management companies, industry vendors,
suppliers and consultants; as well as owners
through the ARDA Resort Owners’ Coalition
(ARDA-ROC).
AMDETUR
www.amdetur.org.mx
AMDETUR – The Mexican Association of Tourist
Developers encourages the development
and integral growth of the tourism real estate
property sector in Mexico with a sustainable
and competitive approach. AMDETUR has
driven growth and sustainable development
of shared-vacation ownership, through
best practices and management processes,
transforming it into a highly competitive
industry and one of the pillars of tourism and
economic activity in Mexico, positioning itself
as a reference point worldwide.
VOASA
www.voasa.co.za
VOASA, or Vacation Ownership Association of
Southern Africa was previously known as the
Timeshare Institute of Southern Africa (TISA).
Established in 1990 as an organisation
representing the interests of the South African
vacation ownership industry, as well as
supporting new buyers and owners of vacation
ownership products, including; conventional
timeshare, points clubs, fractional ownership,
destination and private residence clubs.
A key contributor to VOASA’s existence is
the protection of consumer rights and the
stimulation of the on-going growth within the
industry in a positive and organised manner.
AIRDA
www.airda.org
AIRDA – The All India
Resort Development
Association, is an
independent, non-
profit advisory body
dedicated to the Indian
timeshare and holiday-
ownership industry. In
1998, a visionary group
of resort developers
and RCI inked a blueprint for an independent
body – an association with a purpose and an
agenda – keeping in mind the nascent profile of
timeshare in the country and the constructive
role that could be played by developers to
grow the industry. Importantly, it works hand-
in-hand with both promoters and consumers.
WHAT IS EXCHANGE? 53
 AIPO AIPP
www.aipo.org.uk www.aipp.org.uk
The Alliance of The Association of
International Property International Property
Owners (AIPO) is an Professionals (AIPP) is
organisation supporting a global organisation
British-resident owners dedicated to building
and buyers of a foreign confidence in
property and timeshare. international property
The Alliance was set markets, representing
up by the same team industry professionals
behind the AIPP (Association of International and promoting the
Property Professionals). AIPP is a not-for-profit highest standards of
trade membership organisation founded to professionalism in the
improve consumer education and protection property development
and standards of professionalism in the largely markets across the world.
unregulated international property industry.

RDO
www.rdo.org
RDO (Resort Development Organisation) is the
trade association for vacation ownership across
Europe, encompassing a number of usage types
including timeshare, fractional interests, private
residence clubs, condo hotels, destination clubs
etc, aimed at providing holidaymakers with
quality holiday accommodation through various
concepts of use.
RDO members represent the best in
European vacation ownership and are
committed to high service standards and
integrity. They are bound by a Code of
Conduct and an independent arbitration
scheme, providing levels of protection beyond
those required by law. The RDO logo is the
kitemark for quality and trust in the industry.

Leisure Real Estate

54 Trends & Opportunities
 RDO: The Voice of the European
Vacation-Ownership Industry

RDO represents the very best of the industry in Europe, delivering a range of
benefits to its resort-developer members.
RDO is there to:
• Raise industry standards • Support resort developers, offering expert
guidance and industry reporting
• Promote ethical practices and professional
integrity through its Code of Conduct • Provide annual KPIs for its members’ resorts
As an RDO member, signed up to the Code, you are giving your buyers the assurance
that they are dealing with a responsible and professional company.
The RDO logo is recognised as the kitemark for quality and excellence.

Give your customers more reason to trust and buy your product through
your membership of RDO

For further information or to request an

RDO membership pack, visit www.rdo.org
or email info@rdo.org
REGISTERED OFFICE:
KETTERING PARKWAY,
KETTERING,
NORTHAMPTONSHIRE,
NN15 6EY

REGISTERED IN ENGLAND
AND WALES, COMPANY
REGISTRATION NUMBER:
01148410

VAT REGISTRATION
NUMBER: GB217704768

www.RCIAffiliates.com

www.RCIVentures.com

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