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

Q 1 /Q 2 2 0 1 9

TA K I N G B O L D S T E P S
IN SOUTH AFRICA

HARVESTING INSIGHT TURNING TABLES GOING GLOBAL


Using personalisation to Consumers in the driving Domina set to become
surprise and delight seat of travel trends international brand
THE NEW

Directory
IS HERE

AVA I L A B L E
I N M U LT I P L E
L A N G UAG E S
FOR MEMBERS

IT’S HERE – AND IT’S

BETTER THAN EVER BEFORE


An inspirational marketing piece, the new directory is designed to activate
and engage RCI members, with all the information they need to get the
most from their timeshare with RCI membership

Now available for RCI-affiliate sales offices,


and new and existing RCI members

Limited edition hard-back More than 500 European Inspirational articles on each
cover for affiliates and global resorts featured resort destination
CONTENTS
Welcome
RCI Affiliates
4 News
The latest news from Europe and around
the world

7 Dancing to the Same Beat The drive for achieving success and prosperity can often cloud our
Southern Sun Resorts re-affiliates to vision – and it is important to remember that originality only takes
RCI – reigniting industry opportunity in
a fresh pair of eyes. Shedding new light on our products is key to
South Africa
reigniting opportunity, therefore taking a fresh perspective is the
focus of this issue.
14 Team Effort: Racing for Success
In our cover feature on page 7, we are delighted to announce
An Anfi Group and RCI collaboration gains
positive results through sales workshops our reformed partnership with Southern Sun Resorts, an affiliation
which represents the coming together of two industry titans in
17 The Importance of Guest Intelligence South Africa and will undoubtedly bring new ideas and opportunity
and Personalisation to this diverse and exciting market.
Several industry experts share best Finding new ways to maximise opportunity is also prevalent in
practice for building online brand our case study with Anfi Group on page 14, which has leveraged
reputation RCI’s knowledge to deliver effective workshops to its sales teams,
enhancing their product understanding and sales strategy. Utilising
22 Can We Get Over Overtourism? the many marketing tools available to us is essential, and on page
A look at how tourism congestion and
17, we hope to enlighten you on some simple, easy-to-implement
its environmental and socio-economic
methods to gather guest intelligence and improve customer
problems can be tackled by the industry
satisfaction levels.
The wider travel and leisure market continues to evolve at a
26 Changing Trends: Turning the Tables
on Travel rapid pace, and we are well aware that right now, consumers are
Shrewd consumers are defining what in the driving seat in defining what they want. On page 26 several
they want – and the travel industry experts share how to meet these demands. Another common
must deliver theme in the wider market is the problem of overtourism and
how we can best tackle the issues it creates, turn to page 22 to
30 Domina: Building an Empire find out more.
Eugenio Preatoni shares his plans to take RCI affiliate Domina is one of the developers in the market
Domina into the global leisure market proactively taking its brand into the global arena, on page 30,
using its authentic Italian brand and resorts to engage new source
34 Final Thought: Thinking Central
markets, including UK and Scandinavian.
Vassilis Themelidis highlights several
We hope your RCI business magazine provides you with much
positive market indicators in the Nordics
food for thought and inspiration. Enjoy the read!
and Central-Southeast Europe

Visit rciventures.com for news of the


worldwide shared-vacation ownership industry
and insight from the experts. ROBIN MILLS
Vice President, Business Development
Europe, Middle East and Africa – RCI Exchanges

Front cover design inspired by the South


African Ndebele tribe’s wall art.

is published by RCI, a trading name of RCI Europe, Kettering Parkway, Kettering, Northants, NN15 6EY, United Kingdom. Tel: +44 (0)1536 314395. Email: rebecca.gormley@rci.com
EDITOR: Rebecca Gormley. ASSISTANT EDITOR: Lorraine Loveland. DESIGN: Charlotte Semark, Ginny Knight, Alex Hutchinson, Charlie Hayes. PRODUCTION: Helen Foster, Claire Williams, Natasha Hegarty,
Trevor Lewis. PRINTING: ProCo. PHOTO CREDITS: Shutterstock, Champneys.com, AutoXotica. COVER: Charlotte Semark. Original articles and contributions may be reproduced or transmitted only with written
permission from the publisher. All facts and figures stated in the articles contained in this publication are provided by the contributors and no responsibility is accepted by RCI Europe for content not created by
them, nor for any losses or other consequences resulting from advertisements or other material appearing in this publication. You are advised to make your own enquiries and conduct further research if necessary.
© RCI Europe 2019

R CI VEN T U RES 3
I N D U S T RY N E WS

Olivier Chavy appointed as


President, RCI Exchanges
of international hospitality depth of experience in
experience and executive hospitality operations and
leadership roles, from luxury international business.
hotel and timeshare resort “His highly regarded
operations to global interior capabilities will ignite our
design. growth strategy and enhance
At RCI Exchanges, he will the service provided to RCI
assume responsibility for the members, affiliates and
strategic direction, operation associates.
and growth of the network and “We are committed to
travel services for the company, leveraging the strengths of
including oversight of its RCI and to the development of
collection of leading brands, innovative new programmes to
including RCI, The Registry fortify the value of membership.
Olivier Chavy Collection, DAE and Love “Olivier invigorates our
Home Swap. outlook with his successful
An industry veteran with take up a position with Hilton Michael D Brown, President history of remaining relevant
more than three decades of Grand Vacations. and CEO of parent company and accommodating to
experience in the hospitality A French native, Chavy Wyndham Destinations, said: customers of the world’s
profession, Olivier Chavy, most recently served as “Olivier will strengthen RCI luxury hotels, timeshare
succeeds Gordon Gurnik, who CEO of Mövenpick Hotels & Exchanges with his dynamic resorts, hospitality brands
left the company last year to Resorts, and has 30 years leadership and his impressive and design firms.”

-year milestone for RCI Christel DeHaan retires as


RCI celebrates 45 years of concept and services to help CEO of Christel House
sending its members on our members and, crucially,
memorable holidays this Christel DeHaan has retired ensures that 100 per cent of
our affiliate community.”
year, having pioneered the from her role as CEO of donor contributions will go
In recent years RCI has
concept of exchange holidays Christel House International, directly to help the children,”
expanded its offering with the
in 1974, when the company and has been replaced by she said.
addition of Dial An Exchange
was co-founded by Jon and Bart Peterson, a former One of the charity’s key
and Love Home Swap, and
Christel DeHaan. mayor of Indianapolis. fundraising events is the
continues to grow its network
Today, the company has DeHaan will remain on Christel House Open, an
of affiliated resorts, adding
the world’s largest holiday the Board of the charity she international charity golf
172 new properties to its
exchange network, with more founded 20 years ago, which tournament that takes place
exchange portfolio in 2018 – has become the RCI and the on courses across the globe.
than 4,000 affiliated resorts in
a 22 per cent increase on the timeshare industry’s charity This year’s European event,
over 100 countries worldwide.
previous year. of choice. themed ‘Feed the Future’,
Robin Mills, Vice President
Business Development, “This 45-year milestone Christel House aims will take place on Monday 17
Europe, Middle East & Africa wouldn’t have been possible to transform the lives of June at Badgemore Park Golf
at RCI Exchanges, said: without the support and impoverished children and Club in Henley-on-Thames,
“RCI pioneered the concept partnership of our affiliates, DeHaan, the co-founder England.
of holiday exchange and and we’ll continue to go the of RCI, has pledged to For more details about
continues to lead the way extra mile to support them continue covering all of its entering and sponsorship
for the industry, developing and their operations in the general, administrative and opportunities, contact
innovative new products. coming years ahead,” fundraising expenses. Liz Taylor at
We also established the points added Mills. “My financial commitment etaylor@uk.christelhouse.org

4 Q 1 /Q 2 2 01 9
I N D U S T RY N E WS

New industry
association
launches Reception Area

A new organisation representing the


interests of timeshare owners in Europe has
been formally established and is actively
Major refurb for
Alto Lido
recruiting members.
EUROC – the European Resort Owners’
Coalition – will be an “owners’ association
run by owners, for owners”, according to
Paul Gardner-Bougaard, Chief Executive of
European trade body, Resort Development Alto Lido, an RCI-affiliated resort The work also included the addition
in Madeira, has undergone a major of new spa facilities, a business centre
Organisation (RDO).
refurbishment to give the property and a restaurant.
RDO, alongside American Resort Owners’
a whole new look. Marques said the resort enjoys a
Coalition (ARDA-ROC), has helped fund the
Grupo Cardoso, the owners and “high level of customer satisfaction
new association, and will oversee its day-to-
managers of the resort, invested - both repeat customers and new
day operations. €13 million in the work, which took customers”, and hoped it would attract
Gardner-Bougaard said the new body five months to complete and has “customers of a superior segment, due
was crucial, following the closure of TATOC been designed to put the resort into to the quality of the new product”.
in 2017, which had “left timeshare owners the luxury market segment, according
in the UK and mainland Europe without to Filipe Bazenga Marques, Chairman
any form of formal representation, nor with of the company’s Board of Directors.
any protection against the attention of The makeover, which involved a total
fraudsters”. remodelling of all accommodation and
After a working group to look at plans for guest areas at the seafront resort, has
a pan-European association was set up last given the property and its apartments
Deluxe Room
September, a follow-up meeting took place and suites a fresh, minimalist look.
on 27 February 2019, and the vote from the
56 HOAs in attendance was overwhelmingly
in favour of EUROC.
Gardner-Bougaard explained: “A budget
Apple Leisure Group targets
has been set for 2019 and those HOAs who
sat on the working group will form the
European growth
majority of EUROC’s first Board this year.
The Board will appoint a Member Relations Apple Leisure Group (ALG) is planning 4,000 rooms in Spain, as well as having
Manager, who will work with the HOAs and to grow its European portfolio to 35 the structure and capacity to manage
hotels and 10,000 rooms across the hotel properties throughout Europe.
recruit new EUROC members.”
continent by 2021. Javier Coll, ALG’s Executive Vice
EUROC
The leading North American travel, President and Chief Strategy Officer,
plans to hold
hospitality and leisure management said the expansion into Europe is a
a seminar
group initially aims to establish natural next step in its aggressive
to discuss its European presence in the growth strategy and allows it to
key areas of Mediterranean, with properties in capitalise on existing relationships with
concern in Spain and potentially Greece or hotel companies and tour operators
the summer Turkey, by the end of this year. with which it already partners in
and details In December 2018, ALG agreed to Mexico and the Caribbean.
for this will be purchase a majority share in Spanish “We are analysing several projects as
announced in hotel chain Alua Hotels & Resorts, we have received a lot of interest from
Paul Gardner-Bougaard
due course. meaning it will manage more than owners,” he said.

R CI VENT U RES 5
I N D U S T RY N E WS

New additions
for our guests with heart and studio, one-, two- and four-
soul, and beautiful locations in bedroom villas with private
picturesque, natural landscapes. decks and garden spaces set
In addition, the MONDI Group amid the lush coffee plantations

to The Registry
has been committed to sound of Malnad. Over the next three
business practices since 1983, years, the company is also set
which is why our guests have to invest more than $100 million
almost unlimited trust in us.” (INR 700 crore) in building

Collection
In a separate development, projects across Karnataka,
Rosetta by Ferns, one of India’s Tamil Nadu, and Kerala.
luxury vacation ownership Errol Fernandes, Rosetta by
groups, has affiliated its points- Ferns’ Chairman and Managing
The Registry Collection, RCI’s Managing Director, said: “We based membership programme Director, said: “Our motto has
luxury exchange programme, have a strong in-house business ‘Club Rosetta’ to The Registry always been to offer the best
Collection. in luxury to our members.
has extended its offering with with existing customers who
The company is currently With this partnership, we will
the affiliation of three exciting are upgrading to our luxury
developing its first resort in take a step forward in assuring
new resorts in the Austrian and products at these resorts.
Sakleshpur, Karnataka, a 100- uncompromised ultra-luxurious
German Alps, as well as a luxury “With its five-star service, The
acre luxury project comprised of experiences for our customers.”
vacation ownership group in Registry Collection perfectly
India. matches our high standards,
Chalet-style units at MONDI- which means we are able to
HOLIDAY resorts Alpin Chalet provide our VIP customers with
Oberstaufen, Chalet Village an exchange option that reflects
Grundlsee and Bellevue Suites, the top-notch value proposition
have joined The Registry we want to deliver.
Collection, following a major “All of these resorts offer
€8 million upgrade programme. luxurious accommodation, long-
Chalet Village Grundlsee
Mike Dörr, the company’s standing employees who care

SkiStar adds its newest Dubai reduces red tape to


resort to RCI network boost tourism
The latest property from SkiStar Resorts to join the Dubai is aiming to boost tourism in and supporting further investment.
RCI exchange system is SkiStar Vacation Club Åre the region by waiving some of the HE Helal Saeed Almarri, Director-
Village, located in the popular Swedish winter sports regulatory requirements for travel General of Dubai Tourism, said:
destination of Åre. and tourism businesses wishing to “Relaxing regulations in support
The modern mountain property is within walking set up in the Emirate. of the business community,
distance of Åre’s piste network and village square and Dubai Tourism hopes the move especially supporting start-ups
comprises one-, two- and three-bedroom apartments. will enable it to release AED and SMEs, is fundamental for
As well as being a world-class winter resort, Åre 250 million in bank guarantees sustained sector growth.
is developing year-round attractions, courtesy of previously given by tourism-related “Tourism is a strong contributor
activities ranging from high-adrenaline mountain service providers. to Dubai’s GDP and we intend
It hopes the new deregulatory to ensure that we sustainably
biking to relaxed fishing on its lake. The resort is
measure will see instant liquidity enhance our economic value and
the fourth SkiStar property to join RCI’s exchange
injected into Dubai’s economy, aid the diversification agenda for
portfolio. According to Hafez Tadayon, Area Business
lowering the cost of doing business the wider UAE.”
Manager for SkiStar Resorts, one of the reasons for
affiliating was to develop its year-round appeal.
He said: “RCI is the biggest holiday exchange R DO 10 CO N FER EN C E: SAV E T H E DATE
service provider, having the smartest exchange European timeshare trade body, Resort Development Association (RDO)
concept – the points system. Our goal is to make our has announced that its 2019 conference will take place at Don Carlos
destinations active all year round, and we hope RCI Leisure Resort & Spa, Marbella, on 11-12 September 2019. The RDO10
will help us do that. We also want our owners to be Conference, which is the only event of its type in Europe, will begin
flexible when they use their ownership, as we know with the organisation’s annual general meeting on 11 September. Visit
that if they are flexible they are happier and more www.rdoconference.org for details of its schedule and keynote speakers.
likely to stay with us for the long term.”

6 Q 1 /Q 2 2 01 9
Dancing
to the
Same Beat
After a 10-year hiatus, Southern Sun Resorts and
RCI have reformed their partnership – reigniting
the opportunity in South Africa, and laying the
foundations for an impressive future in this
diverse and prosperous market.
BY R E B E C C A G O R M L E Y

R CI VENT U RES 7
SHARED-HOLIDAY OWNERSHIP AND SOUTH
Africa have gone hand-in-hand since the 1970s and,
amidst challenging economic and political times, the
market has flourished – boasting a mature 3.5 billion
Rand in annual revenues today.
In a country which offers such diverse and dramatic
landscapes, holiday options for beach, bush and
mountain experiences are vast, while domestic tourism
is thriving – meaning holiday ownership products are
an incredibly popular choice for the local market.
South African industry titan, Southern Sun Resorts,
was one of the first hotel operators to enter the
timeshare market in 1982 and today it is as highly
regarded by its owners and the market itself, as it was
almost 50 years ago.
RCI first established its office in South Africa in
the 1980s – at a time when the company’s footprint
was rapidly increasing – and since then has offered
unrivalled infrastructure and member services in each
of the regions in which it holds a presence.
Today, these giants have aligned themselves
for prosperity and opportunity – cementing their
partnership in the form of a re-affiliation, which came
into force on 4 February, 2019.
“It’s been ten years, but we are delighted to once
again be working with our best business partner, RCI,”
said Adam Fuller, Operations Director at Southern Sun
Resorts.

RCI and Southern Sun Resorts


As part of the re-affiliation, RCI has been appointed as
Through its SunSwop exchange service, powered THE MAGNIFICENT
Southern Sun Resorts’ sole exchange partner, and all DRAKENSBERG
by RCI, owners will have access to unrivalled MOUNTAINS:
members at SunSwop – Southern Sun Resorts’ premium
exchange holiday opportunities for both domestic and Drakensberg Sun
holiday exchange service – will be serviced by RCI Resort offers guests
international holidays. With more than 4,000 affiliated breathtaking views
South Africa. in one of South
resorts across the world, RCI is uniquely positioned to Africa's most
Peter Pienaar, General Manager at SunSwop,
offer its members the most choice in exchange holidays picturesque settings.
believes that now is the right time to align with RCI.
and accommodation.
He said: “Our relationship with RCI goes right back
Robin Mills, Vice President Business Development,
to when we first started. We share a common vision
Europe, Middle East & Africa at RCI Exchanges, said
– focusing on delivering a wide variety of quality
that RCI is incredibly proud to be working with one of
products to members.
the leading developers in the market once again.
 “Over the years our owners have come to expect
He added: “The global team at RCI is extremely
high-quality products across all of our offerings
excited to bring Southern Sun Resorts back to where
and we need to ensure that this is what we deliver. PETER
it belongs, and it is a huge boost to the local team in PIENAAR
It is incredibly important to us to live up to these
South Africa. We’re looking forward to working closely General Manager,
expectations, whether it relates to our physical product SunSwop
with the Southern Sun Resorts’ team in the coming
– for example, the quality of resorts in our portfolio –
months to achieve great things together.
or the manner in which we offer exchange holidays to
“It is renowned for offering an outstanding service
our owners.” to its owners, and we are extremely excited to partner
with Southern Sun Resorts to power its exchange
holiday product.”
Our relationship with RCI Through the re-affiliation, RCI will service
goes right back to when we first SunSwop’s approximate 26,000 owners, retaining ADAM
FULLER
the high-quality service levels they are accustomed to
started. We share a common Operations
through their ownership. Director,
vision – focusing on delivering a Pienaar continued: “Our renewed partnership will Southern Sun
Resorts
wide variety of quality products increase the exchange footprint for our members, both
locally and internationally, and our online reservation
to members.
functionality will be greatly enhanced as we transition
– PETER PIENAAR, GENERAL MANAGER AT to RCI’s online reservation platform.
SUNSWOP “We are now able to deliver significant exchange

8 Q 1 /Q 2 2 01 9
fee pricing benefits to SunSwop members, as well as area is uMhlanga Sands Resort, a favourite for family
connecting them to the destinations they want to visit, holidays, thanks to the amenities and seafront location
which we know ranks highly on their list of priorities.” it offers.
Mills said: “RCI has an enormous diversity of Drakensberg Sun Resort, situated high in the Cathkin
locations – both domestic and international – which Peak area of the Drakensberg Mountains, provides
will appeal to SunSwop members and they will also visitors with breathtaking views and fresh mountain
experience higher quality standards and the highest air. Pine Lake Resort offers well-appointed chalets
level of service when it comes to transacting.” with exquisite views of the lake and, completing the
portfolio, is Sabi River Sun Resort, located close to the
About Southern Sun Resorts world-famous Kruger National Park, appealing to those
Southern Sun Resorts has a portfolio of six resorts in looking for sporting activities and nature walks.
differing locations, each offering high-grade apartments “Most of our resorts offer exceptional dining
and amenities for families and couples to enjoy. One of options, as well as extensive activity schedules
the company’s key achievements for 2018 was the renewal designed for the whole family to enjoy. All resorts have
of the management contracts at all six of its resorts. undergone, or are soon to undergo, refurbishment,
Fuller explained: “Our resorts are set in phenomenal maintaining our incredibly high standards – which set
locations, and each one offers a unique experience, us apart from our competitors,” said Fuller.
ranging from beach, to bush, to mountains. In each In addition to enjoying holidays at the resorts
location, owners and guests can enjoy the diverse in the Southern Sun Resorts' portfolio, owners also
landscapes South Africa has to offer, and our resorts have the ability to select from 50 other South African
are strategically located to cater to all of our owners’ resorts through SunSwop, and further domestic and
needs.”  international exchange options with RCI.
Located on the sandy beaches of Plettenberg Bay,
the landmark Beacon Island Resort offers owners and A market leader
guests luxury seafront accommodation with various The SunSwop Choices product offers owners even more
beach and wildlife activities. flexibility with their ownership – which is key in today’s
Cabana Beach Resort offers a contrasting beach market – giving them the opportunity to buy, rent or sell
experience, located in Umhlanga Rocks, Durban, it is their timeshare, or exchange into Tsogo Sun hotels or use
designed in the style of a Mediterranean village with its rewards programme.
sub-tropical gardens and cabana suites for owners and “This flexibility is completely unique in the South
guests to enjoy. Also located in the affluent Durban African timeshare market,” Pienaar explained. “Our
owners have access to restaurants and non-timeshare provides our RCI members with the ability to exchange
hotels, opening up attractive lifestyle benefits with into their resorts in sought-after locations in South
their ownership, which is completely in line with what Africa. It’s a fantastic opportunity for both parties, and
today’s consumer is seeking.” it will allow us to take advantage of the opportunities in
Southern Sun Resorts’ flexibility, coupled with its this market.”
high-calibre accommodation, has been instrumental to The timeshare industry in South Africa comprises
its success in the market. almost 430,000 weeks – of which 52 per cent are owned
“Our vision is to honour our owners, who trusted by holiday clubs and 48 per cent owned by timeshare
us with their purchase, with a lifetime of memorable members.
holidays at our resorts, and to do this we must future- Tony Ridl, Chairman of the Vacation Ownership
proof our legacy products for the next generation of Association of Southern Africa (VOASA), believes that
owners,” said Fuller. shared-holiday ownership offers the best value for
lifelong family holidays.
The right time to partner He said: “South Africa is widely known as one of the
Shared-holiday ownership remains a hugely popular most sought-after destinations in the world – thanks
choice for the domestic market, and the industry has a to its abundant natural beauty, pristine coastlines,
significant footprint in the South African tourism and exciting wildlife and mountain experiences, fantastic
hospitality sectors.
Alyson Benjamin, Vice President of Operations,
RCI South Africa, explained: “We have approximately
T H E I N D U ST RY AT A G L A N C E
170 affiliated-resorts in the RCI South Africa portfolio,
and exchange holidays are a key component of their • 27,000 employees
product offering. • More than 190 resorts
“A high proportion of our RCI members view • Over 400,000 owners
timeshare exchange as a mechanism to travel overseas,
• 90% of sales offices sell club memberships;
given the volatility of our currency, giving them an
8% sell a combination of club memberships
excellent opportunity to visit new destinations and stay
and weeks; 2% sell weeks exclusively
at RCI-affiliated resorts worldwide.
• Approximately 90% year-round occupancy
“Partnering with Southern Sun Resorts not only
for beach properties
gives their owners the opportunity to enjoy exchange
holidays at high-quality RCI-affiliated resorts, it also Source: VOASA
UMHLANGA weather and its unique rainbow nation of diverse message that many of our affiliate partners, including
SANDS RESORT:
Left: Ocean views cultures that are steeped in history. Southern Sun Resorts, offer an impeccable level of
and fantastic
amenities make this
“These unique experiences are sought out and service to their members, going above and beyond to
resort a popular promoted within the timeshare properties, making ensure they meet their needs as consumers.”
choice for families,
year after year. them the number one factor when picking a destination Unlike many of the shared-ownership markets,
for both international and local owners, as well as club including Europe, South Africa has retained its
BEACON ISLAND
RESORT: members. preference for weeks-based products, with less resorts
Right: Sun-kissed
beaches, natural “Due to the favourable climate, particularly on in the market offering points-based products.
forests and coral
the east coast, beach properties run at year-round Fuller added: “We are in the fortunate position that
reefs await guests
at this spectacular occupancies in the 90 per cent range, with bush/safari there was very little focus or impact on conventional
resort.
and mountain occupancies close behind.” timeshare products. The industry participants affected
by the report are all working to ensure that they
Uneasy waters     accommodate all of the recommended changes and I
While the timeshare industry in South Africa is certainly believe that, in the long term, this will be very positive
thriving, as with many of the markets in the shared- for the entire timeshare industry in South Africa.
holiday ownership industry, it has not been without its “We firmly believe that the future looks good for
challenges. conventional timeshare products. I suspect that there
ALYSON
BENJAMIN Before the close of 2018, the National Consumer will be a consolidation of the industry following the
Vice President of Commission (NCC) released a new report on South report, however, this consolidation will create great
Operations,
RCI South Africa
Africa’s timeshare industry, following an inquiry it opportunity, especially for reputable brand operators.”
conducted in 2017. Both RCI and Southern Sun Resorts, like many of
The report called for fair and transparent the companies operating in South Africa’s shared-
operation of timeshare organisations, to better holiday ownership space, ensure complete adherence
improve consumer protection in the industry. Several with VOASA’s Code of Conduct, which sets out the
recommendations were made to change the service highest standards of ethical behaviour in the industry,
delivered to consumers, ensuring that their rights were and promotes a reputable trading environment.
TONY RIDL protected on items such as exit programmes, sales Ridl said: “VOASA plays an integral role in ensuring
Chairman of
the Vacation
and marketing. the improvement and growth of a sustainable industry.
Ownership Mills explained: “While the report shed a negative The Association’s proactive government lobbying
Association of
Southern Africa
light on some of the resorts operating in the shared- will be instrumental in advocating the appropriate
(VOASA) holiday ownership space, it reinforced the positive regulation of the industry over the next two to three

R CI VENT U RES 1 1
THE I N D UST RY B OASTS A MAT U R E RCI and Southern Sun Resorts to deliver unrivalled
R3.5 BILLION exchange holiday and membership options to owners
and RCI members.
PER ANNUM IN REVENUE AND TOTALS “Following the NCC report, consumers will seek
conventional ownership opportunities with reputable,
renowned brands in the market, and together we can
158 5 430,000 ensure that we meet these demands and, in turn,
exchange weeks strengthen the shared-holiday ownership industry in
resorts
systems
South Africa.
“Points-based products are now almost non-existent
in South Africa, which is also a result of the changes
of which 52% are owned by holiday clubs and
48% are owned by timeshare owners. in member profiles. The newer products coming
onto the market are similar to those in the European
Source: VOASA market, including termed products and mixed-use
opportunities, but there is certainly a preference
years to create a better balance between regulation, among consumers for upmarket products which offer
consumer protection and holiday ownership a higher level of luxury – which Southern Sun Resorts ROBIN
development.” and many other affiliated resorts in the market deliver.”  MILLS
Vice President,
Mills continued: “Revenue-centric rental pools
Business
Creating advantage  which use OTAs and run in conjunction with timeshare Development
EMEA, RCI
While the NCC’s report may have caused a shift in the products are also common place, and many of the
Exchanges
industry, it has certainly been viewed by many as an developers in the market are using these to leverage
opportunity to lay the foundations for a strengthened their marketing, as well as optimising the breadth of PROSPERITY IN
shared-holiday ownership market – which is why this marketing channels available to them.” THE MARKET:
Opportunity in South
point in time is also incredibly exciting for the partnership The shared-holiday ownership industry is certainly Africa is unparalleled,
with many beach
of two world-class industry giants. integral to the tourism market in South Africa, properties operating
Mills explained: “We have a fantastic opportunity contributing more than 27,000 jobs in the tourism at 90 per cent
occupancies year
here to leverage the renewed partnership between sector. round.

1 2 Q1 /Q 2 2 01 9
“That model is still employed across all of our
We are very excited about resorts, but we have introduced options to bring
the future prospect of timeshare flexibility beyond that of traditional timeshare. Our
in South Africa, and with this in owners are also able to use their timeshare week to
exchange into more than 100 Tsogo Sun hotels across
mind, we are currently exploring the country – a unique benefit which many in the
further development market are unable to match.”
opportunities. Many industry stakeholders in South Africa and
across the European region are now looking at new
– ADAM FULLER, OPERATIONS DIRECTOR AT ways to engage the next generation of buyers. While
SOUTHERN SUN RESORTS flexibility and access to assets remain essential on
their list of priorities, millennials are also seeking
accommodations in locations offering experiential
A recent study conducted by VOASA highlighted holidays – something that Southern Sun Resorts is
the industry’s impression on shared-holiday ownership well placed to deliver.
in the wider leisure real estate market, comparing the Fuller said: “I foresee that the big brand operators
number of timeshare apartments to the number of will play an increasingly important role and that the
hotel rooms in three of the country’s most popular products brought to the market will be relevant for
tourism regions – namely beach, mountains and current and future buyers’ needs. We understand the
bush/safari. need for shorter term products – from both a buyer
Ridl explained: “It is interesting to note that the and developer point of view – but we have also seen
survey found that timeshare had the advantage of that conventional timeshare ownership, similar to
offering more availability and choice in accommodation that which we launched more than 30 years ago in this
than any other vacation offering operating in those country, still has a place.
regions.  “We achieve high owner satisfaction levels because
“Vacation ownership comprised 63 per cent of we consistently deliver on our promise to our owners,
the beach apartments, 60 per cent of the mountain which is the reason they purchase with us in the first
apartments and 70 per cent of the bush/safari place. We ensure that we provide fantastic locations,
apartments – which clearly indicates that timeshare quality accommodation and invariably high service
continues to represent a significant portion of the standards, while listening to owners, and in turn they
leisure real estate industry.” remain loyal, engaged and satisfied.
“It is this strategy that will ensure we inspire and
Plans for expansion engage future generations of owners.”
Southern Sun Resorts also believes that the country In closing, Mills said: “The opportunity in South
is ripe with opportunity for shared-holiday ownership Africa is unparalleled. It has everything that today’s
products. With many of its resorts sold out, the company consumer is looking for, which makes it extremely
has turned its attention to new opportunities. attractive for domestic and international markets.
“We are very excited about the future prospect “The future of the shared-holiday ownership
of timeshare in South Africa,” said Fuller. “And with industry is incredibly exciting, and with the right
this in mind, we are currently exploring further product, investment in this region is sure to pay
development opportunities within our resorts where dividends.
we still have unused development rights, as well as “We’re looking forward to seeing the prosperity that
additional management opportunities within the the future will bring through our new partnership with
South African timeshare space. Southern Sun Resorts and our existing partnerships in
“Going forward, whatever we decide to do from the South African market.”
a new product point of view will take into account
changing usage patterns to ensure that the product
which we develop and sell is current and relevant.
“We are very aware of the successful role a branded,
T I M E S H A R E R E P R E S E N TS A N
reputable timeshare product could play in this market
I N T E G R A L PA R T O F T H E
for many years to come.” L E I S U R E S E C TO R
The company’s diligent management and
transparency has ensured that its owner base remains
incredibly loyal and satisfied with their ownership – a
feat which is not always easy to achieve when consumer
preferences are changing at a significant rate.
63% 60% 70%
Pienaar added: “Our core product hasn’t changed,
but it has evolved. Let’s not forget that our resorts beach mountain bush/safari
were among the first timeshare properties launched in apartments apartments apartments
South Africa, where the global trend at that time was
fixed-week, fixed-unit timeshare. Source: VOASA
Team Effort:
R AC I N G F O R S U CC E S S

For more than 30 years, the Anfi Group has focused on its
vision to deliver a ‘home-from-home’ holiday experience.
In this case study, we explore how Gran Canaria-based Anfi
Group has gained positive results through collaboration with
owners and its partnership with RCI, to enhance its product
and sales strategy.
BY C L A I R E WA D D I N G TO N

A WINNING COMBINATION OF HIGH-QUALITY and the personal touch,” continued Mende. “Our customers tell
apartments, location and personalised service, sets us apart from us that even in this age of digitalisation, they still want to talk to a
our competitors,” explained Stefan Mende, Sales Director at Anfi human being. Each Anfi customer is a name and not a number, we
Group. “We are fortunate to be located on a fantastic island with want everyone to receive attention and feel important. Our owners
delight in this, and look forward to seeing a friendly face.”
a warm and balanced climate. It’s easy for our customers to travel
The Anfi customer first approach extends to its sales. Mende
here; only a few hours away and they can truly feel at home.”
said: “Many members of our sales team have been employed
Alongside its high-quality apartments, Anfi now offers a with Anfi for some time. Our existing owners know and trust the
concierge service to cater for guest needs, from booking activities, team, and this is part of the reason they buy. I put a big emphasis
such as private sailing boat trips, to organising a dream wedding on on spending time with our customers and being transparent and
its famed heart-shaped island. honest. We also appreciate fresh ideas, so it’s great to have a mix of
“We also try to maintain a healthy balance between technology new and experienced staff.”

1 4 Q 1 /Q 2 2 01 9
Adapting for the next generation
Sales and marketing go hand-in-hand in any business,
and customer preferences have changed over time. Celia
Fonseca, Marketing Director at Anfi, explained: “Social
media is now more important than ever, which is why
STEFAN we have invested in our website and digital channels. We
MENDE understand the importance of personalisation, and have
Sales Director,
Anfi Group
built this into our guest experience.
“Working with high-profile celebrities, such as
Manchester City footballer David Silva, not only
endorses the Anfi brand, it also increases engagement
with our owners. Born and raised in Gran Canaria, David
grew up with Anfi, and his mother even worked here.
Members and guests identify with David: he is well-liked
and truly part of the Anfi family. Press events raise the
Anfi profile, and inspire new guests. The partnership
with David completes our marketing strategy.”
CELIA Today’s consumer is looking for a luxury product,
FONSECA
Marketing with maximum flexibility and ease of use. “Anfi ensures
Director, that it meets this demand by asking for customer
Anfi Group
feedback,” said Mende. “When we design new products,
we actively seek ideas from members and guests,
because it’s so important to listen to your customers.”
Maintaining product relevancy is critical in every
industry, and shared-holiday ownership is no different.
Fonseca added: “We have to balance meeting the
demands of prospective owners and changing travel
trends. The original timeshare products are not flexible more focused on accommodation and price. Now it is
CARLOS enough for younger generations, who often favour just as much about experience and flexibility, making
MORENO- last-minute travel and low commitment. We’ve had to exchange an important part of our product offering.
MARTIN
Affiliate Sales adapt, and it keeps us on our toes.” “Anfi offers a product that the customer can see,
Manager, Anfi is increasingly focusing on experiential travel, use and enjoy coming back to. RCI unlocks the world
RCI Exchanges
and is seeing particularly strong growth in sporting for our members and offers exchanges into quality
holidays. This has been so successful that Anfi now accommodation, together with an array of destinations
attracts professional cyclists from November to January and experiences. For example, skiing is a popular
for training on the island. Fonseca said: “It is noticeable activity for our customers, and RCI has resorts in ski
that many holidaymakers no longer want to lie by the destinations across the world.”
beach or the pool. They want activities and experiences,
and we need to keep expanding our offering. Knowledge is power
“We have four generations of customers with Product training is known to increase the effectiveness,
different needs, so we constantly need to evolve.” motivation and performance of a sales force,
which positively contributes towards profitability,
Flexibility is key sustainability and customer satisfaction.
Mende is enthusiastic about the benefits of an exchange A joint Anfi-RCI workshop initiative was launched
product. He said: “There is a clear generational in 2016, with the aim of educating sales staff as to the
difference in preferences – in the past, consumers were exchange benefits available through RCI, in a fun and

SPORT IS
THE NEW
SUNBATHING:
Top: Flyboarding
is one of the many
adrenaline-fuelled
activities Anfi offers.
Below: An Anfi-RCI
sales workshop.
THE EFFECTIVENESS OF PRODUCT TRAINING AND LEARNING

Increase in RCI Boost in productivity The estimated cost


membership enrolments and performance of ineffective training
+44% on Anfi sales decks from +24% in high-performing $13.5m per year, per 1,000
2015 to 2016* learning organisations** employees***

*RCI Reporting. **According to the Towards Maturity Driving Performance and Productivity Report – In Focus Report April 2018, produced in partnership with CIPD, which surveyed over 700
learning and development leaders.*** In a survey by Grovo: Training Gets a Trim: Microlearning for a New Workforce. 

informative format. The workshops include external The workshops have proven to be a success, and
speakers and team-building activities, and an RCI session demonstrate how a resort developer and exchange holiday
is led by RCI’s Carlos Moreno-Martin and Ovidio Zapico. provider can collaborate to benefit their customers and
Carlos Moreno-Martin, Affiliate Sales Manager at RCI achieve sales targets. Both companies are now keen to
Exchanges, said: “The idea for the sales workshops came ensure that the workshops continue, and that an RCI
from seeing the increasing relevance of holiday exchange product refresher remains a key part of the agenda.
and flexibility. 
“Stefan Mende had recently been appointed as Sales What is next?
Director at Anfi, and put great importance on his team Mende is eager for the workshops to keep evolving.
understanding RCI. A key component of the sessions is He said: “RCI product knowledge is a core part of
showing the team how, where and when Anfi owners our training and we expect all team members to go
travel with RCI. It brings to life a concept they talk through this with every customer – it is extremely
about every day.”  important. We have over 100 staff attending
Mende added: “The RCI team is very the workshops and there are always
flexible, tailoring the content to make it
Every new Anfi new people with less knowledge and
completely relevant. The majority of owner is enrolled with RCI experience. The workshops need to
our customers purchase to come back and it is very important that continue to be interactive, fun, and
to Anfi, year after year. However, also challenge people to get out of
exchange is key to our product
our representatives have the their comfort zones.”
offering because we know that our very best product knowledge. Anfi Group has exciting plans
members want to be flexible, so The workshops are fun and for 2019 and beyond. Fonseca said:
we must make sure our product “2019 is set to be a great year for us
caters for them for many years and
educational, and we also like
as we work to enhance our products
generations to come. to invite guest speakers to and grow our partnerships. We will
“Every new Anfi owner is enrolled break up the day. continue to invest in digital channels
with RCI and it is very important that and explore new technology, such as
our representatives have the very best – STEFAN MENDE virtual reality.”
product knowledge. The workshops are fun The Anfi sales and marketing strategy
and educational, and we also like to invite guest will include a focus on lead generation through
speakers to break up the day.” B2B partnerships, online and offline promotions, and
The results communicating with prospective customers through
Mende did not anticipate how successful the first multiple channels. “Everything needs to be available
workshop was going to be, but he instantly saw an impact. online and personalised, but we will never lose the human
“The workshops are very well-received,” he said. touch,” said Fonseca.
“We get some fantastic feedback and no matter the staff Moreno-Martin said: “Anfi’s sales approach is
tenure, they learn something new every time. We really successful, first and foremost due to a high level of
notice the positive impact of the workshops on staff trust with their customers. They focus on operating a
morale and motivation. transparent and ethical sales operation. 
“Ovidio and Carlos have become members of the Anfi “The Anfi holiday experience is exclusive, the
family and are excellent RCI ambassadors. We love that accommodation is high quality and all of this is offered
our staff have been able to get to know them. It puts a in fantastic locations. The clear success of the workshops
face to the RCI name and increases team engagement.” has highlighted the benefits that an innovative approach
Fonseca and her team also attend the workshops. can drive.”
She said: “It helps to build and grow a strong team, Mende concluded: “We keep adapting our strategy
while people increase their knowledge. If our owners are and RCI will continue to be part of every sale. We want
better informed, it helps them to maximise their use of to enhance our customer experience and we’re excited
RCI services and benefits. It’s great to take a different about what the future has to offer. We look forward to
approach – an interactive one – and of course it had a continuing our partnership with the RCI team into 2019
positive impact on sales as a result.” and beyond.

1 6 Q1 /Q 2 2 01 9
The Importance of
Guest Intelligence
& Personalisation
At a time when an online review paints more than a
beautiful picture, resorts are under pressure to make
a personal connection with guests, even before they
step foot in the door. Several experts share their
views on building brand reputation online.
BY N ATA S H A H E G A R T Y

R CI VEN T U RES 1 7
CURRENTLY ONE OF THE BIGGEST TRENDS comments from TripAdvisor, RCI’s comment cards,
in the hospitality industry, is using guest intelligence to Google+ and various OTA surveys, to form the basis of
personalise holiday experiences to deliver an exceptional our self-assessment and improvement programme.”
service to customers. This is to ensure great reviews are Pearly Grey Ocean Club also prides itself on its use
left on the likes of TripAdvisor, which will inevitably of social media to make a personal connection with
increase bookings, and consequently, revenues. guests online before, during and after their stay, which RJ
There are countless ways in which resorts and hotels helps to drive their high online review score rankings. FRIEDLANDER
can deliver a better service to their guests, by being Banister-Day believes there is a direct link between CEO, ReviewPro

more intuitive to their wants and needs and giving a strong social media presence and trust between the
them that ‘wow’ factor. Hotels and resorts need to resort and guests.
invest in guest intelligence to work smarter, to keep “We ventured into social media years before other
guests returning year after year, and also book their resorts in our industry did, with the support of John
trips directly with them online. Beckley, an expert in this field,” she explained. “We
encourage the in-house sales team to connect with
Real-time surveys their owners.
ALEX
One of the most immediate ways of improving guest “We have a Facebook page for the resort and a HUNTER
satisfaction is using in-resort surveys. Importantly, community of owners who keep in contact with Creator, Attaché
this will identify any issues which might be negatively each other after meeting here. It is a great way of
impacting a guest’s experience while they are on communicating with staff too.
resort, giving you the chance to head off a possible “Our social media platforms give families and
negative review and turn it into a positive by finding an couples coming to visit Pearly Grey for the first time a
immediate resolution. great opportunity to get a feel for our resort and engage
ReviewPro, the world leader in guest intelligence with us and our online community, meaning they arrive
solutions, has over 55,000 hotels relying on its with a positive outlook.”
JUSTINE
innovative cloud-based guest intelligence platform, BANISTER-
Customer service is key
Guest Experience Improvement Suite, to gather DAY
Banister-Day adds that this only works well if you are
intelligence. General Sales
posting truthful content: “Of course this would not be Manager at Pearly
ReviewPro stresses that in-resort information is key Grey Ocean Club
possible if the business you conduct is not transparent.
to improving guest satisfaction.
If your owners aren’t happy, it would be a totally
RJ Friedlander, CEO at ReviewPro, said: “We see
different scenario!”
more of our clients implementing in-stay surveys and
Investing time and money in gathering guest
this is great for both leisure and business travellers alike.
intelligence is redundant if the product is below par
“During their stay they can provide feedback on
and failing on basic things, unless, of course, you
what is and isn’t working for them, and that to me, is
have every intention of improving the service and/or
the most powerful real-time opportunity for hoteliers,”
product.
he said.
“Using social media and online communication for
Friedlander believes that bad reviews aren’t
patching over bad service is dangerous, and this just
necessarily a problem, it is how they are dealt with annoys guests even more,” Alex Hunter, creator of
by the hotel or resort which is critical in reputation award-winning online travel show Attaché, said: “You
management. need to get the fundamentals right and do what you say
“It’s not often that something unforgiveable you’ll do.”
happens,” he said. “However, if the guest wasn’t given Hunter suggests that staff need to be given the tools
the opportunity to provide feedback while they were at to solve issues themselves, as well as more autonomy
the resort, or if they did and the hotel didn’t respond, to take initiative, without going through management
it’s that lack of acting which manifests itself in a bad to get permission to make every decision. Time of
review.” response and resolution is of the essence.
Pearly Grey Ocean Club in Tenerife uses guest Giving your brand warmth and personality is also
intelligence to drive customer satisfaction, by making important, especially in issue resolution, as Hunter
sure they collect the right kind of data, to be used in clarified: “Give frontline staff the authority to go off-
the right way, at the right time. script now and again, especially when things go wrong.
“We have an in-house survey that requests feedback They are the people being approached to fix a problem,
from all guests staying at Pearly Grey and this is so let them do that. This could be as simple as giving
completed before they leave the resort,” said Justine the guest a free drink while they look into an issue.”
Banister-Day, General Sales Manager at Pearly Grey Hunter, who has a successful career, including
Ocean Club. heading up the digital strategy for Virgin, believes
“It uses a rating system which covers all aspects of there needs to be a balance between online and offline
a guest’s stay, from the food in the restaurants to the customer service.
service delivered by the sales team. A comments and “Businesses have made things much more
feedback section is also available so that guests may complicated than they need to be – they have been
leave us their individual comments. ruined by the internet. The human touch is so much
“We use this information, together with the more important than people realise.”

1 8 Q1 /Q 2 2 01 9
He explained: “Viewing online and offline as two
separate services is dangerous – they go hand in hand.
The Four Seasons Group do this well. If they have an
online conversation with a guest, they’ll leave a card in
the room acknowledging it. It is very powerful.” TO P T I P S
Friedlander adds that having the right staff F O R I M P R OV I N G O N L I N E
in customer-facing roles is key to continuous R E P U TAT I O N
improvement. He said: “There is no substitute
• Introduce an in-resort survey, to
for hiring the right people who love their job. As
immediately resolve any guest issues
customers, we value being treated well and there’s a or queries
long-standing emphasis on remembering people you’ve
• Respond to reviews quickly, and aim for
interacted with. The key is to hire people with good
a 90% response rate within 24 hours
customer service skills.”
• Resolve any common issues with your
Personalisation leads to profit product, instead of presenting it as
Hunter suggests that it’s not just about having the data, something else
you need to use it properly to impress guests outside of • Utilise the guest intelligence you already
their standard transaction. have – surprise your guests on their
“There needs to be a built-in culture to surprise and birthdays
delight,” he said. • Include your resort name when
“If you know it’s a guest’s birthday while they’re responding to reviews, to increase SEO
staying at the resort, jump on that and leave them visibility of positive reviews
a note in their room, or make a point of celebrating • Never underestimate the power of the
it in some way. There’s no point gathering the guest human touch – align your online and
intelligence data if you’re not going to act on it.” offline customer strategies
He points out that there are some brands which
are ahead of the game when it comes to offering a
personalised service. These brands are going back to
basics, but using technology to get there.
“I was a guest recently at the Shangri-La hotel in
If you know it’s a guest’s
Hong Kong where I had an amazing experience. I got birthday while they’re staying at
the elevator up to one of the top floors for breakfast the resort, jump on that and
SURPRISE AND and walked to the podium to be seated, and the server
DELIGHT YOUR
addressed me by name,” he said. “I have no idea how
leave them a note in their room,
GUESTS:
Recognising an
online interaction
she knew my name in such a large hotel, but it was or make a point of celebrating
by leaving a note
in their room;
most impressive.” it in some way. There’s no point
Using a customer’s name during an exchange is
surprising your
guest on their such a small thing, but very powerful.
gathering the guest intelligence
birthday or by
simply using their “Airlines are pretty good at implementing data if you’re not going to act
name during an
exchange can personalised service, especially the South East Asian on it.
vastly improve airlines, by addressing passengers by their name. It’s a
guest satisfaction
and online reviews. small gesture, but very significant,” Hunter continued. – ALEX HUNTER, CREATOR OF ATTACHÉ

R CI VEN T U RES 1 9
“Rather than just a transactional encounter, frontline COMMUNICATING

staff, from the check-in desk to onboard, are given The way we make choices WITH GUESTS:
Pearly Grey Ocean
access to data to acknowledge passengers and make now is largely based on Club engages with
its owners and
their experience a little more special.” recommendations and prospective guests
on its social media

reputation, so having a positive


channels to add
Reviews = rankings further credibility to
its brand.
Using guest intelligence to ensure customers are having online reputation is vital in
a fantastic stay is only the first step. Acting on this data,
replying to reviews in a timely manner and ensuring
today’s marketplace.
problems are solved, will result in a higher online – JUSTINE BANISTER-DAY, GENERAL SALES
ranking score. MANAGER AT PEARLY GREY OCEAN CLUB
Banister-Day said: “Everyone checks out online
reviews to see what the general consensus is about any
location or venue, whether it’s a restaurant, a hotel or “Google and Booking.com are on the up, whereas
a resort. TripAdvisor is evolving into more of an activity-based
“The way we make choices now is largely based on and restaurant review site. It is still a very important
recommendations and reputation, so having a positive brand and hotels should be aiming to get a high ranking
online reputation is vital in today’s marketplace. on that platform, but note that it isn’t the only one out
“When potential guests can see that we engage and there.”
respond in the online community, it portrays trust and An important aspect of guest satisfaction, is
respect. Once your brand is trusted, a potential guest is communicating with guests after they have left the
more likely to turn into a confirmed guest.” resort, by ensuring any reviews are answered – good,
Friedlander agrees that review sites are so important bad and neutral – as quickly as possible.
when it comes to ensuring potential guests book to Banister-Day shares that Pearly Grey Ocean Club
stay at your resort. A high review score means that has a process in place to deal with any negative reviews
guests will even pay a little bit more, if they have the that might arise, so any issues can be rectified for the
confirmation they will get an experience which matches complainant, and for future guests.
the price point. “Of course, dealing with positive comments is a
He said: “TripAdvisor is the brand that people far easier process and, in truth, those are the vast
always have in mind when it comes to hotel reviews, as majority of our reviews. On the rare occasion we
it has the biggest database, however, its market share receive negative feedback then inter-departmental
has been dropping for the last three years. communication is vital,” she explained.

2 0 Q 1 /Q 2 2 01 9
DRIVING being taken into consideration. Friedlander explained:
POSITIVE
RESULTS: By sending an in-stay survey in addition to “The feedback from the survey resulted in the room
The Library Hotel a post-stay survey, hotels and resorts can that wasn’t initially the developer’s preferred choice
Collection's Hotel
Aria in Budapest improve their overall score by an average being chosen by guests. This was also the room design
has seen its direct of 13.8%, according to ReviewPro. which was the least costly to redesign and refurbish.”
bookings increase
by five percent
Guests are willing to spend 240% more on ReviewPro has experienced phenomenal success,
after working with
ReviewPro to gather a great experience, rather than risk taking a working with brands to improve their guest satisfaction.
and utilise guest
intelligence. bad holiday, according to the Harvard Review. It has worked with The Library Collection’s Hotel
Aria in Budapest, giving it the tools needed for it to
deliver an amazing customer experience.
“Before we post a response to the guest, the “Using the data supplied by our Guest Experience
department manager responsible for the area of Improvement Suite and implementing the changes
criticism is consulted, giving all involved a resolution, based on the data, direct bookings for the hotel have
and a clear understanding of what happened so that our increased by five per cent,” Friedlander said.
reply is both accurate and respectful.” “Direct bookings result in higher profits and this
is the ultimate aim. Hotel Aria now receives 25,000
Using guest intelligence for continuous unique visitors to its website per month, and traffic
improvement is also up by five per cent. It has been extremely
Friedlander adds that using the data gained from guest successful.”
intelligence saved one of ReviewPro’s clients a lot of Collating guest intelligence is paramount in
money on renovations. All they did was to consult their ensuring guests are satisfied with their experience at
guests before making significant changes to their resort. hotels and resorts. The hospitality industry faces tough
“We had a client who owned a 700-room hotel and competition, so each hotel must ensure it has a high
was looking to make a multi-million euro upgrade to online ranking score. By using tools such as in-stay
the rooms,” he said. surveys and timely issue resolution, you can turn a
“They narrowed the room design down to two potentially bad review into a positive one.
options, and instead of going with what they initially And remember, a little often goes further than
liked the most, they built both rooms and asked guests you might think when it comes to personalisation.
for feedback on both over a certain period of time Making simple changes, such as addressing guests by
through surveys.” their name to personalise their stay, will give them a
This had a huge impact on guest satisfaction as it positive experience, increasing a customer’s propensity
showed guests that their opinions were important and to book.

R CI VEN T U RES 2 1
Can we get over
CO
anvw
eretogeutroisvm
er ?
Overtourism?
Congestion, increased
Congestion, increased costs, environmental and social
costs, environm
problems –– these
problems these are ental aassociated
are just a few of the issues
just a few of th
nd social
overtovertourism.
with ourism. SARA SARAH LEE e ishow
explores sues the
assotravel
ciated with
H LEE explores
c an best can
industry tackbest tackle
le the issuesthe issues h
itocreates.
w the travel ind
ustry
it creates.
2 2 Q 1 /Q 2 2 01 9
“TOURISTS GO HOME”, “YOUR LUXURY TRIP and Professor of Tourism and International Development
is my daily misery” and “Why call it tourist season if we at the UK’s Brighton University, takes a different view. She
can’t shoot them?”. These are just a few of the slogans said: “The claim that excessive, unplanned tourism and
that have been chanted by an increasing number of overtourism is harming the landscape, damaging beaches,
protesters, and daubed across walls in some of Europe’s putting infrastructure under enormous strain, and pricing
PROFESSOR
most popular tourist cities. In the past three years the residents out of the property market is a fact and one
DIMITRIOS
likes of Venice and Barcelona have seen protests against BUHALIS which has been studied by academics since the 1970s.
unbearable levels of tourist arrivals which have been as Head of Tourism The recent ‘overtourism' media bubble has simply made
and Hospitality,
predictable in timing as the holiday season itself. Bournemouth
these issues accessible to the masses.”
All this is far from the welcome people anticipate and University Academics’ opinions on the use of the term may differ,
signposts a transformation in the relationship between but they agree on one thing – there is intense pressure at
tourists and the people living in the places they want to certain times on some destinations and their resources,
visit. But the extent of the problem goes much further. all of which requires careful planning and management
Overtourism has become the buzzword for a number strategies to maintain their sustainability and future.
of environmental, economic and social challenges being Novelli believes that addressing overtourism requires
faced by destinations around the world. An October 2018 custom-made policies devised through the cooperation
report prepared for the European Parliament’s Transport of a destinations' various stakeholders and policymakers.
and Tourism Committee (TRAN Committee) defines the PROFESSOR “There needs to be measures to influence travellers to
MARINA think more responsibly about where and how they go
phenomenon as: “The situation in which the impact of NOVELLI
on holiday,” she stated.
tourism, at certain times and in certain locations, exceeds Professor of
Tourism and
physical, ecological, social, economic, psychological, and/ International Can overtouristed destinations recover?
or political capacity thresholds.” Development,
Managing the overtourism phenomenon is complex,
Brighton
The report provides 41 European and global case University requiring stakeholders to work jointly in a destination to
studies, including many examples where the cultural and solve existing and emerging issues, and it’s at this point
natural heritage of a place is at risk, or the cost of living that resort developers can play their part.
and property have increased so much it is causing There are already a number of success stories emerging.
a decline in quality of life. Boracay in the Philippines re-opened in October 2018 after
The impacts of overtourism, the report claims, could a six-month government-imposed closure to clean up its
cause the loss of authenticity and implies a significant beaches, reefs and seawater, improve infrastructure and
risk to the future attractiveness of a destination. implement limits on tourist activity, including a ban on
Meanwhile uncontrolled tourism development can result JANINE single use plastics.
in considerable damage to landscapes, seascapes, air and FLUYT Maya Bay, in Thailand, remains indefinitely closed to
water quality, as well as the living conditions of residents, Corporate
Communications
visitors while the Thai Government works to allow the
causing economic inequalities and social exclusion, to Spokesperson, environment to regenerate after decades of high daily
amsterdam&partners
name just a few issues. tourist numbers left the fragile ecosystem on the edge of
destruction.
Sensationalism versus reality After UNESCO warned Dubrovnik that its World
The situation for some destinations is grave. But where Heritage Status was at risk in 2016, due to the
does tourism end and overtourism begin? To what extent overwhelming daily influx of tourists it accepted from
is overtourism a scourge fuelled by the travel industry, or cruise ships, the city restricted visitor numbers to 8,000
merely the latest moral panic? per day and has plans to reduce that further to 4,000 a day
“There’s no such thing as overtourism – it’s a term that from this year to allow the old city to ‘reset’.
makes headlines,” argues Professor Dimitrios Buhalis,
Head of the Department of Tourism and Hospitality at
Bournemouth University in the UK.
We need to look at how
“What there is, however, is an exceeding of the capacity tourism can create change for
of destinations and facilities, which puts pressure on good in a destination and to
them. For example, if you were to visit St Mark’s Square, in
Venice, on a summer afternoon and it was thronged with
focus on the responsibilities of
people, you could say that it was exceeding the capacity of all stakeholders involved.
the destination. But if you were to visit it at 6am, it could
– PROF. NOVELLI, Professor of Tourism and
have 30-40 per cent fewer people and you would have an International Development, Brighton University
entirely different experience. So ‘overtourism’ is a made
up phrase to communicate this issue. Novelli, who is also co-author of an upcoming book
“The danger is that by demonising places as on the subject, said: “Overtourism is primarily rooted in
‘overtouristed’ you can destroy the only economic a lack of innovative planning strategies and sustainable
opportunity that they have. We need better management management approaches. Much of the success of tourism
and better planning. We need to examine supply and is measured according to the number of visitor arrivals,
demand at a granular level.” rather than the short-, medium- and long-term positive and
Professor Marina Novelli, one of the 14 authors of the negative impacts that it brings to a destination. The current
report for the European Parliament’s TRAN Committee tourism growth paradigm does not work anymore.

R CI VEN T U RES 2 3
C AS E ST U DY: DA M M I N G TO U R I S M regulations. As the city dealt with issues created by Airbnb,
P R E SS U R E S I N A M ST E R DA M shop lets, hotels, tourism tax, bicycle rentals, and cruise
terminals, amsterdam&partners undertook other measures to
“Tourism is part of our DNA and our international character,” manage the city’s overtourism issue by presenting, for example:
explained Janine Fluyt, Corporate Communications • Amsterdam area as a whole, rather than focusing on the
Spokesperson for amsterdam&partners, formerly Amsterdam
city’s icons. Guiding visitors to other regions. Promoting a
Marketing. “For centuries, people all over the world have come
neighbourhood campaign presenting unknown places in
to our city due to its strategic position, our harbour, culture and
well-known areas and little-known neighbourhoods to
entrepreneurial spirit, and our open and tolerant character.”
broaden visitor experience.
Last year the city, with a population of around 800,000,
• A different image of Amsterdam, revealing that it is so much
received 18 million visitors, while research from 2015 revealed
more than its famed Red Light District. It promotes a city
that 50 per cent of Amsterdam’s guests come from abroad.
full of museums, theatres, parks, nature, architecture, music,
Fluyt continued: “Of course we benefit from tourism
fashion, restaurants, festivals, sports and more.
economically, and it brings with it energy, creativity and
new ideas. • The city itself under the slogan ‘Visit Amsterdam, see
Holland’ (an area including Haarlem, Zaandam, Edam,
“But we see the positive sides of tourism being overshadowed
Lelystad, and the beaches), encouraging repeat visitors
by the negative - the increased crowds, and a growth in
to see other cities, such as Leiden, The Hague and
nuisance factors such as drunkenness, soft drugs, noise,
Rotterdam, thereby spreading tourist numbers while
pollution, litter and bad behaviour, such as people urinating
supporting other destinations.
in public.”
• The launch of campaigns to influence bad behaviour
The city also suffered from an imbalance between short-stay
stemming from specific groups of visitors, with the threat of
inhabitants and people who worked and lived in Amsterdam.
fines for those caught flouting its rules.
Another negative impact was the drive to feed the tourist
economy leading to a ‘monoculture’ in the city’s shops, many The outcomes are difficult to measure at this stage as hard
of which started selling identical lines in tourist tat and drugs- numbers are not yet available, but we are already seeing:
related paraphernalia, doing little to reflect the city’s varied
culture or improve the offerings available. • One out of every four visitors travelling to other places in
the area as a whole.
“We needed a new equilibrium, in which residents were put at
the centre, while visitors and companies remained welcome,” • A growth in the awareness of what we view as unacceptable
explained Fluyt. behaviour in the target groups.

amsterdam&partners is a semi-public independent organisation • Campaigns driving visits to other cultural institutions leading
focused on the city’s reputation management, while the to an increase in sales and visitor numbers in participating
city council of Amsterdam is responsible for legislation and institutions, such as Haarlem, The Hague and Leiden.

24 Q 1 /Q 2 2 01 9
“Overtourism is the shared responsibility of different OV E R TO U R I S M - C AU S E S & E F F E C TS
stakeholders, such as city administrators and destination
managers. The tourism value chain involves a complex
An important consideration is that increasing
governance system based on transport and mobility, numbers of people are moving to our cities to
housing, public space, direct and indirect employment live and work. Research estimates that by 2050
and other daily social practices, so it requires the input more than 70 per cent of the world’s population
of all parties.” will live in cities. Current causes and effects of
There is no one-size-fits-all approach to managing overtourism include:
overtouristed products and destinations, instead it •• Proliferation of low-cost airlines encouraging
requires strategic and difficult decisions. multiple short-haul flights each year, making
“For example,” explained Novelli, “it may be too travel more affordable.
optimistic to think that strategies based only on tourism
•• Traditional tourism policies focused on
de-growth measures could cope with the underlying
promoting volume.
complexity of global tourism flows.”
For Buhalis, the timeshare and fractional traveller •• Increases in international arrivals.
already unwittingly contributes to the sustainability of •• Strong seasonality bringing numbers to
tourism in certain destinations. “Many timeshare owners unsustainable levels.
will be regular travellers to a destination, semi-locals if
•• Gentrification and increasing prices in city
you will. They know when a place will be at its busiest
centres and neighbourhoods.
and will avoid it at those times, choosing, for example,
to eat their main meal in the square at lunch rather than •• Sharing economy platforms and unregulated
at dinner,” he explained. “And these types of travellers tourist accommodations, such as Airbnb,
forcing up rents/property prices and changing
should be encouraged. What is really required to tackle
the residential mix.
overtourism is for stakeholders to take a granular
approach to the problem – delving into tourist flows •• Temporary low-paid tourism jobs that are
of each particular place metre by metre and second by casual or insecure.
second to develop a strategy that fits that destination.” •• Emerging markets with additional tourist
There is a temptation to point the finger at one source numbers travelling internationally and
of the problem. In certain cities it might be Airbnb, in domestically.
other locations, the cruise industry, but one of the key
issues is the quantity of tourists versus the benefits that
tourism brings to destinations.
Novelli said: “Local and national governments and
tourist boards have long believed that ‘more is better’. Overtourism may be the latest hot-button issue,
A ‘successful’ year in tourism is generally considered to be but it is impossible to ignore when the travel industry’s
one in which numbers have increased substantially. fundamental commodity is at stake – pleasant
“We need to look at how tourism can create change for destinations that attract visitors. As sustainable strategies
good in a destination and to focus on the responsibilities have proven not just cost-effective, but profitable to
of all stakeholders involved. For instance, how travellers, the travel industry, working to prevent the impacts of
local authorities, residents and businesses behave and overtourism and maintain a sustainable future for a
whether they are truly benefiting from a fast-growing destination is the next challenge the planners, developers
sector such as tourism.” and others must face.

R CI VEN T U RES 2 5
Changing Trends:
TUR NI N G THE TA B LE S ON T R AV E L

In today’s world, service providers are no longer able to


present consumers with what they think they want. Shrewd
travellers are now defining exactly what they want, but will
the industry be able to deliver?
BY LO R R A I N E LOV E L A N D

IT WASN’T SO LONG AGO THAT TOUR Euromonitor International’s latest Megatrends


operators and travel agents could lure customers in with Report* presents a number of shifts in consumer
the promise of golden beaches and sunshine. behaviour which travel players should get onboard with
Fast forward to today, and it’s a completely different if they are to remain relevant and profitable. These
picture. The product should now comprise the include the shift towards ethical lifestyle products and
experience your customer envisages, which the travel an increase in the number of customer touch points to
provider must craft. enhance positive brand experiences.

2 6 Q 1 /Q 2 2 01 9
Three leading stakeholders in travel agreed to share
their insight into the ways they are shaping experiences
for their customers, and what it all means for the future.

Give the best of both worlds


G Adventures is the world’s largest independently-owned
BRIAN
company for small group adventures, sending more than YOUNG
200,000 travellers on holiday every year. EMEA Managing
Director,
Centred on authentic experiences, G Adventures G Adventures
provides the opportunity to see new places in a
sustainable fashion, something which its EMEA
Managing Director, Brian Young, believes is the shift
change that should become the industry standard.
He explained: “Three decades ago, the travel market
was saturated with fly and flop packages, before the boom
in cruise and the entrance of low-cost breaks, which all
worked very well at the time.
“Holidaymakers may still like relaxing on the beach,
but that is just a small part of their experience. They want G ADVENTURES: creating new pathways for youth and empowering women,
The group
cultural immersion through culinary experiences and adventures
to make travel more sustainable for everyone involved.
interactions with locals for something more original, and company works The Lost City Trek in Colombia was recently
with Planeterra
with meaning. to support social redesigned by G Adventures and Planeterra to work
enterprises in
“Even the adventure travel concept has been blown retaining their
with the indigenous communities in the Sierra Nevada
out of the water. It’s no longer just backpackers wanting cultural identity, region, to ensure locals were benefitting from the tourists
and ensuring they
to bungee jump in Australia. It’s going offbeat and benefit from tourism. visiting their sacred site and allowing them to share their
Above: The Lost City
doing something different, regardless of your age or Trek in Columbia
customs and history.
inclination.” works with local “This tour is completely unique, travellers even
people.
G Adventures’ tour options are extremely diverse, Below: Local people partake in cleansing ceremonies before entering the
in the Sierra Nevada
catering to demographics from 18-year-old gap-year region share their
indigenous village, as part of the five-day experience to
adventurers to active 80-year-olds with spare time for a sacred sites. give them that rare, inside look at tribal life. It’s a life-
golden age expedition. altering experience which allows customers to develop
“The holidaymaker mindset is ever-changing and stronger emotional connections with the world and
focused on life-altering experiences to achieve more the people around them,” said Young. “Working with
fulfilment,” Young added. “We still have a large cross local enterprises and guides is important to keep as
section of millennials; those who love to post and boast much money in the local community as possible. This
about their latest travels on Instagram, as well as the symbiosis is vital for the future.”
older segment, all looking to unplug and enjoy immersive Young reports that, as part of an ongoing project,
experiences to achieve the best of both worlds, thus tours are measured according to a Ripple Score so
eliminating the fear of missing out.” purchasers can see how much money is spent in
Subsequently, G Adventures recently launched its destination with locally-owned companies.
new ‘Wellness’ travel styles, to combine adventure and “Of course, we pride ourselves on our innovations,
wellbeing in one trip. Categorising by travel style, such as but this isn’t something we want to guard for ourselves.
active, marine and family, allows purchasers to pick and We want sustainability to be the norm, not the exception.
choose their activities according to their motivations, The tourism industry has a prosperous future if we all
rather than destination. play a responsible role in it,” he added.
“It’s not so much about price point for travellers
anymore, but whether the holiday fits with what they
want. It must be flexible, allowing them to do their own
thing, unlike off-the-shelf tour arrangements which are
hectic and cookie-cutter-style experiences.
“We listen to our customers to curate and innovate
their experiences accordingly. But we also have a duty of
care to the destination too - being socially responsible to
ensure that these unique discoveries can be enjoyed for
decades to come.
“Overtourism is a huge issue. To preserve the industry
we must adjust to being as environmentally and socially
responsible as we can be - otherwise there will be
nothing left.” HAFEZ
The tour company works closely with its non-profit TADAYON
Area Business
partner, Planeterra, to support social enterprises and Manager, SkiStar
help retain the cultural identity of local communities by Resorts
Put customers at the heart of your operation “It’s because we are committed to being transparent
Hafez Tadayon is Area Business Manager for SkiStar - not only during the sales process but throughout the
Resorts, which has lodgings in seven notable ski customer lifecycle. We even provide ‘Safe Ownership’
destinations across Sweden, Norway and Austria. to ensure that selling their timeshare in the future is an
“Technology has made destinations even more easy-in, easy-out process, so that the exit process is just
accessible, and with the ability to custom build as simple as buying it in the first place.”
holidays, it requires us to be more transparent with our As is often seen in other industries, new customers
are attracted by appealing offers, while the loyalty of
fractional ownership and rental operations,” he said.
long-term customers goes unrecognised. The Megatrends
“As consumers, we are all very adept at planning our
Report also reveals that increasing your customer
own breaks, spending hours researching the best options.
interaction beyond the traditional touch points is
“When we receive information requests for SkiStar
important, given the choices customers have and the
ownership, invariably these enquirers have already done
consequent fragility of brand loyalty.
their research, to the point that we only need to show
SkiStar nurtures its whole customer journey. Owners
them a resort, not sell it to them. are given previews of new apartments on a first refusal
“Prospects now want individual conversations with basis and, subsequently, they enjoy being involved in the
the SkiStar team on their exacting needs, rather than product development process.
us having to present them the reasons why they should Tadayon explained: “We invite our owners to provide
choose holiday ownership. They are already sold on the their feedback on the resort experience so we can deliver
concept, it’s now just down to the finer details, and that exactly what they want, but also to give them their say in
wouldn’t have been the case a decade ago. the ways that maintenance fees are allocated.”
During SkiStar’s last annual meeting, owners
SKISTAR
requested a number of items, such as premium cutlery,
RESORTS: and the provision of welcome baskets with the essentials,
By putting
customers at the as well as an extra cleaning day on resort.
heart of their
operation, SkiStar
“These are very straightforward requests, but it
has witnessed a illustrates that today’s travellers want flexibility and
shift in the sales
approach, with convenience. You just have to listen to them and let them
more personalised
conversations with
be part of your brand - they should be your advocates,”
prospects and he said. “We have also upgraded units with Swedish
customers creating
advocates for their YouBeds for a comfortable night’s sleep which is crucial
brand.
after a day on the slopes.”
Visitors also have access to the MySkiStar App for the
ultimate convenience so they can see what’s going on in the
area, check the weather and locate their friends on resort.
The majority of the SkiStar owner base are Swedish
millennials. However, with the opening of Scandinavian
Mountains Airport this December, it will open up the
brand to a wider audience across Europe.
“We’re planning to open a full-service hotel and ski
lodge. There’s also another ski lift being constructed, so
we’re expecting big things over the next few years and it’s
because we put the customer at the heart of what we do.”

Blur industry lines to evolve the customer


experience
If one thing is clear, it’s that you must never stand still in
business. You must search regularly for ways to provide
new and improved experiences for your customers, built
on quality, value and flexibility.
Perry Newton is Managing Director of Azure Malta,
one of Europe’s most successful memberships, with a
portfolio that includes five-star resorts, supercars, yachts,
villas, lodges and, most recently, cruises. Its members
access this range of high-end assets through the Azure X
programme.
“Consumers want no-holds-barred freedom to enjoy
their holiday purchase, without restrictions of season or
geography, while being safe in the knowledge that they
are getting value for money,” said Newton.
“On the open market, a family could easily spend
£15,000 on a holiday, but resorts will provide standard

2 8 Q 1 /Q 2 2 01 9
hotel rooms which makes you question whether it’s truly the Golden Sands Resort in Malta allow staff to show
good value. members the range of benefits and experiences, and the
“That’s why we believe in drawing on the unique ingenious ways they can enjoy them to maximise their
features of shared-holiday ownership assets, without ownership.
forgetting about the basic product fundamentals. Rather Yachts, supercars, spas, motorhomes, cruises…
than hotel rooms, we sell suites with a range of board PERRY it seems the range of Azure experiences is vast and
options to make it work for our owners.” NEWTON value for money is vital.
Managing
Newton believes that the timeshare model is as viable Director,
today as it has ever been – but it needs to evolve to meet Azure Malta
Customer first
the demands of customers who want an experience as Despite travel industry sub sectors having their own
much as a holiday. They also want to travel when they unique business models, one trend remains the same.
want, for how long they want, and with whom they want. The customer and their needs come first, so the
Azure offers five different levels of membership, destination and experiences must fit their lifestyle
depending on people’s taste and budget, with a variety of aspirations. It should not be the other way round.
flexible contract terms which give owners ample time to For business operations to survive and thrive,
experience all the benefits of holiday ownership – a far whether you’re a tour operator or a resort developer,
cry from the days of in-perpetuity contracts. you cannot afford to have the mismatch of a square peg
Members are also offered ways to accelerate their in a round hole. It’s time to get a clear profile of your
usage of XP, a unique e-currency based on the latest ‘pegs’ (customers) and shape your brand and products
blockchain technology. to fit them perfectly.
“We offer a variety of ways for owners to burn their
XP (value assigned to their leisure assets), whether it’s an * Euromonitor International: Shaping the Future of Travel
afternoon on a yacht, in a supercar or on a spa experience Report presented by Wouter Geerts November 2018
back in the UK, or a hotel stay with one of our partners
AZURE MALTA:
- it becomes more than just a week’s holiday in Malta,” Working with other
Newton explained. industry partners,
this company has
“Essentially it’s a luxury-branded leisure asset elevated the whole
experience for
membership with way more to enjoy, and it’s why we Azure members
have blurred the lines by forming partnerships with other using the Wildcard
programme.
brands and experiences such as Champneys Health Spas. Below: AutoXotica
and Champneys
“There are a lot of synergies to be found through Forest Mere
Shepherd's Huts in
collaborating with different industries and we offer these the South Downs,
experiences as part of our Wildcard programme which UK, are examples
of the diverse
comes free with ownership. experiences offered.
“The Wildcard is a member rewards programme,
which offers a range of experiences and benefits,
including giveaways for VIP events, exclusive concert
tickets and romantic getaways.
“Unlike traditional loyalty models, Wildcard is not
reliant on customers spending on products. It’s a ‘money-
can’t-buy’ experience programme which provides a range
of experiences and benefits which are tailored to their
tier of membership.
“These experiences are complimentary and include
travel expenses, as we didn’t want to be a loyalty
programme with a catch. There’s so much of that out
there such as ‘win a week in a luxury resort but pay for
your own flights’. It’s disingenuous and makes it more of
an assault course for your customers – that’s not what we
are about.”
Wildcard is also an outlet for members to share their
experiences and build excitement. Interestingly, it is
features such as these – which transform the premise
of annual membership fees into more of a subscription-
based model – which allows membership to give your
customers access to a community with exclusive benefits.
“This fits much better with today’s market and
changes the mentality and positioning of membership
renewal fees,” Newton added.
Naturally, with so much going on at Azure, education
is key and the Experts' Sessions held twice-weekly at
Domina:
Building an Empire
The Domina brand
reflects its distinctive
Italian values, which have
secured its popularity
in the local market for
decades. Now, taking
inspiration from Italy’s
fashion powerhouses,
EUGENIO PREATONI
plans to take the brand
to the global leisure
market, making the
EUGENIO PREATONI
Italian dream a reality CEO, Domina
for all.
BY R E B E C C A G O R M L E Y

ARMANI, VERSACE, VALENTINO, PRADA, know what we offer,” explained Eugenio Preatoni, CEO of
Dolce & Gabana, Gucci, Moschino – these are some of the Domina and President of tour operator, Domina Travel.
names which come to mind when one thinks of authentic Delicious cuisine, glistening coastlines and dramatic
Italian brands with a dominating global presence. history make Italy a destination popular with tourists
These brands need no introduction, and this level across the world.
of global recognition is the aim for Italian leisure However, the Italian leisure market comprises smaller,
brand, Domina. domestic brands and international hotel chains. As yet,
“What we want to do is to become the next Armani. Italy has no clear brand for the international tourist to go
Our brand is made in Italy, and we want people from to for an authentic Italian travel experience.
all over the world to recognise Domina as the next With all the right ingredients in place to scale up the
Italian powerhouse. brand from domestic to international, Preatoni plans to
“The Domina hotels and resorts are extremely open new sales lines to new markets, as well as opening
well known to the Italians. They love what we do and they additional resorts outside Italy.

30 Q 1 /Q 2 2 01 9
Domina’s inception
Domina has been established in the Italian leisure
industry for more than 30 years.
Preatoni said: “I was only five years old when my
father launched Domina’s timeshare offering. There were
many real estate projects which preceded this under the
Preatoni name, and this continues to be an important arm
of the business – we recently built a 200-metre skyscraper,
now named the Preatoni Tower, in the heart of Dubai.”
After successfully building a career in the banking
industry, Ernesto Preatoni, Eugenio’s father, turned to the
real estate market – firstly by acquiring vast plots of land
in the USA for development, at the same time as operating
in the Italian stock market, which included a number of
takeovers of established Italian banks.
In 1988, Ernesto Preatoni established Domina Vacanze,
and in time revolutionised the concept of timeshare in
the Italian market by offering co-ownership of luxury
four- or five-star hotels. Today, Domina offers 27 business
and leisure destinations in iconic locations around Italy
and worldwide, and has serviced more than 30 million
consumers to date.
Eugenio Preatoni explained: “Domina Vacanze
launched during the golden age of the timeshare product,
when there was a huge opportunity in the Italian market.
“Around 99 per cent of Domina’s timeshare owners
were Italian, and we knew exactly what they wanted. You
see, the secret to happiness for the typical Italian was the
ability to purchase a tangible product, in the destinations
they loved to visit, such as Sicily and Sardinia – all of those
idyllic vacation spots.
“Italians were extremely happy with the timeshare
product, as they had the right to access a holiday property,
year after year,” added Preatoni.
Today, Domina is the largest Italian company to offer
shared-holiday ownership products. However, 30 years on,
much has changed in the industry.
Preatoni continued: “Of course, once we reached the
millennium, things began to slow down in the market. We
saw some of the larger companies go bankrupt, and the
same happened with others across the European region.
“As the market slowed, companies did little to react.
There were some deep misconceptions in the industry –
and within Domina – and the existing management teams
did little to adapt the product. AUTHENTIC ways to take advantage of the shift in consumer desires to
“Then of course we hit the financial crisis in 2008 – ITALIAN
LUXURY: engage prospective buyers with the Domina product.
consumer priorities had radically changed and buyers Top: Domina
In order to facilitate change in the Domina brand,
were spending less money – yet there was still a market Residence Borgo
degli Ulivi, the Preatoni took the decision to replace the resort
out there with untapped potential, we just didn’t have the latest resort to
affiliate to RCI. management teams with new staff with a fresh outlook,
right tools to engage with it.” Below: Interior of
the new Luxury so that they could help to drive the brand forward.
The Eugenio effect Suite Collection at “We need to feed the market, and to do this we had to
Domina Coral Bay.
It was at this time that Preatoni took the decision to move away from ‘the old Domina’. The service we provide
drastically change Domina, and take the brand in a today is of paramount importance. Yes, buyers are still
new direction. looking for the basics – sun, sea, and a comfortable bed –
He said: “I call it Domina 2.0. Today, consumers have but it’s no longer a luxury to have a piano bar, or singer, or
a completely different attitude to life. Every business now dancing show, or even a range of restaurant options.
provides a service. For example, we all have iPhones – they “These are all part of the service, and as we know,
are no longer a luxury item, and soon, people won’t even we are in the age of the entertainment industry – we are
own their own cars anymore – these will become a service.” entertainers, not hoteliers,” said Preatoni.
With his entrepreneurial spirit, Preatoni sought new Domina's D Club was launched as part of Domina 2.0.

R CI VEN T U RES 3 1
Membership is granted to owners at Domina and their forced to reinvent the wheel, and did so by offering
families, giving them access to services including special chartered flights from several Italian cities direct
reserved areas at pools and beaches, a personal travel to Sharm, to connect the Italians directly with
agent at their service, and membership of RCI Platinum – the destination.
the highest tier of RCI membership, which includes travel “Sales at Sharm increased by an infinite amount
and lifestyle benefits and exchange holiday options at – approximately 15,000 per cent in two years. It was
more than 4,000 resorts across the world. incredible. After starting flights for our D Club members
Domina’s product is also unique in the shared-holiday only, in 2018 we flew approximately 50,000 passengers
ownership market – owners only pay resort maintenance from Italy to Sharm. D Club members get benefits, such
fees when using their ownership, or exchanging it for a as upgrades.
holiday with RCI. “The image of Egypt improved, but what has really
Preatoni added: “We’re confident our members will driven our sales is the services we can connect our
use us, and only then will we charge them the fee. members to.
Our first priority is for our members to be satisfied and “We introduced a Beach Club and our owners
keep coming back, and if they choose not to, then rental is absolutely loved it. We created new areas which are
always an option.” exclusively Domina D Club members only, we gave them
access to the big music events and we changed the way we
The invention of Sharm El Sheikh presented our services.
It is impossible to refer to the Preatoni Empire without “At a time when no one thought it was possible,
discussing its legendary success of Sharm El Sheikh. we reintroduced the spark to Sharm El Sheikh, and
Hailed as the inventor of the iconic Egyptian destination, our occupancy levels are extremely high. Even in low
Ernesto Preatoni seized an opportunity when he season, we are at 65 per cent occupancy, which is why
‘stumbled upon a bay of dreams’ in 1991, which later we’re exploring new areas for development to grow our
became home to Domina Coral Bay in 1994, Egypt’s footprint in Egypt,” added Preatoni.
largest resort development.
To date, 16,000 units, 2,500 whole-ownership Domina 3.0
properties — including 200 villas and penthouses — Preatoni’s vision for Sharm is unparalleled. The Domina
have been sold at Domina Coral Bay, with European Coral Bay Resort even has its own bespoke time zone,
buyers flocking to Egypt for its coral reefs, blue waters, created by Domina, so that guests can begin their
and year-round sunshine. The resort also houses a casino, day at sunrise and get maximum enjoyment from the
a spa, and the only diving centre with a private pier in the sunlight hours.
park area. Domina’s footprint at Sharm El Sheikh is vast. With
However, harsh and challenging times plagued the 1.8km of private beach, eight hotels and 11 restaurants,
destination when difficult political situations heightened one wonders what else could be done to take it to the
in Egypt. next level.
Preatoni explained: “It was an incredibly challenging Cue the new Luxury Suite Collection. Preatoni said:
time, the resort was empty. The media gave Sharm and “To say that the Luxury Suite Collection is an enhanced
Egypt a very bad image.” version of the apartments we already offer, would be an
Today however, it is a different story. Domina was incredible understatement.

32 Q 1 /Q 2 2 01 9
“Each single new suite cost approximately $150,000. 1.8 KM OF to successfully engage other European source markets.
PRIVATE BEACH:
We sold 50 per cent of ownerships off-plan. Domina's Coral Bay “On the surface, humans want the same things –
Resort boasts coral
“Everything in the suite, from the television to the air reefs, blue waters
sunshine and a great experience – but the purchasing
conditioning, is operated by voice control and artificial and year-round methods in each market are quite different.
sunshine.
intelligence. No one else has imported this level of “The UK and Scandinavian markets are more advanced
technology into Egypt – it’s completely advanced. – they are adept with finance options to leverage their
“Another first for us was importing bottles of Dom lifestyle choices, whereas the Italians would usually make
Pérignon to the resort. The import taxes were incredibly purchases with savings, taking less financial risks.”
high – no one ever risked it before – but we sold out and Preatoni intends to leverage Domina’s D Club to
had to order more within weeks. The demand for luxury is engage the UK and Scandinavian clientele, marketing a
clearly there from those who are willing to pay for it.” membership lifestyle product which offers the bespoke
Domina brand experience in sought-after locations.
Achieving Armani status
Preatoni continued: “Once we have successfully
With resorts in four continents, the Domina brand is
engaged these other markets, we can look to opening up
certainly heading in the right direction for global presence.
more of our resorts to these clients. This will be the later
“The next step for Domina is expansion abroad. We are
phase in our plans, but we are fortunate to have existing
currently evaluating another plot in Egypt, and looking
properties that aren’t necessarily as popular with Italians
at opportunities in Thailand and Ibiza. Each of these
– such as two of our hotels in Venice – which will prove
destinations are ideal for family holidays and offer year-
hugely popular with international markets.”
round sunshine and beautiful beaches – which makes them
Sales at Domina’s active resorts, including the recently
the perfect setting for the Domina brand,” said Preatoni.
RCI-affiliated Domina Borgo degli Ulivi at Lake Garda, are
In line with increasing the number of Domina resorts
steadily increasing year on year, and Preatoni believes this
across the world, Preatoni also plans to open new sales
is a result of Domina’s product offering through its D Club.
lines in the UK and Scandinavian markets.
“Shared-holiday ownership has certainly changed in
“We know that people adore the Italian way of life. We
recent years, which is why we made so many changes
want to export our Italian attitude to these resorts first,
and then widen the net. There is only so much scalability to Domina. Today we connect our members with
in the Italian market, and we know we have the products leisure and lifestyle services which go beyond their
holiday expectations.
“It would be impossible to enter the industry today
The next step for Domina and be successful without packaging ownership products
is expansion abroad. We are with the experiential services that consumers are seeking,
and this is how we will continue to engage the next
currently evaluating another
generation of buyers.”
plot in Egypt, and looking at With such exciting projects in place, the eyes of the
opportunities in Thailand shared-holiday ownership industry will surely be fixed
and Ibiza. on Domina as it strives to establish a global brand
presence, in order to become the ‘Armani of the leisure
– EUGENIO PREATONI, CEO, Domina real estate market’.

R CI VEN T U RES 3 3
A FINAL THOUGHT

Thinking Central
The Nordics and Central-Southeast Europe represent a
strong sales and development opportunity for shared-
ownership, and yet it remains largely untapped by most
European players. VASSILIS THEMELIDIS, Regional Director,
Business Development - RCI Exchanges, highlights several
trends he has identified as being positive market indicators.

I BELIEVE THERE IS OPPORTUNITY home-swap platform, will definitely have a part


in Central Europe, in Germany, Austria, to play in the Hungarian market, as developers
Switzerland, Hungary and Croatia, as both look for alternative services to enhance their
source and resort development markets. The product offerings.
trend for mini-vacations in these markets The Nordic customers are very engaged
makes them attractive drive-to destinations. with the concept of the sharing economy,
In Germany and Austria it is clear from the from sharing bicycles to holiday homes.
product development of several RCI affiliates At the same time they are extremely
that there is a consumer appetite to spend on demanding when it comes to service
quality products. RCI affiliate, MONDI, has fulfilment. Holiday Club Resorts and SkiStar
invested significantly in resort development, are two RCI affiliates that have successfully
having affiliated three luxury projects to offered the right mix to become trusted
VASSILIS THEMELIDIS
The Registry Collection, the luxury leisure brands in these demanding markets. Regional Director, Business Development
property exchange programme. It is interesting In Southeast Europe, RCI affiliate, Balkan - RCI Exchanges

that MONDI is expanding into the luxury Jewel in Bansko, is putting Bulgaria on the
segment of the shared-ownership market, RCI map, having launched sales of an RCI
with two projects in the Austrian Alps, in Bad Weeks-based product to both domestic and
A B O U T VA S S I L I S
Gastein and Grundlsee, plus a third resort in international markets. Bansko is a popular ski THEMELIDIS
Oberstaufen, Germany. MONDI is marketing resort, with the benefit of year-round visitor
attractions. Greece and Cyprus have also been Vassilis wrote his postgraduate
primarily to German-speaking markets and is
thesis on timeshare development
looking to further expand its sales operation. in the touristic spotlight with a recent record
in Greece, a concept then in
Despite its success in the open market rental increase in tourist arrivals and receipts. As
its infancy in Greece. With a
sector, MONDI sees shared ownership as these markets see a more balanced growth, degree in Tourism Management
a very resilient product in uncertain times the opportunities for mixed-use developments from the UK's University of
and indispensable within its mixed-use will surface. There is already a strong Surrey, he joined RCI in 1995
portfolio. Falkensteiner Residences is another investment interest in these destinations from for a six-month training period
RCI Exchanges' affiliate with upscale resort international shared-ownership developers. in Member Services and, after
properties in Croatia, Austria, and one under Turkey is an especially exciting market as completing two years' service
development at Jesolo Beach, very close to its tourism bounces back aggressively. As a in the Greek Navy, he returned
Venice. It is also selling whole ownerships with result, the local developers are moving from to RCI to manage RCI business
relationships across its accounts
membership of The Registry Collection. a focus on thermal resorts, catering largely
in Greece and Cyprus. Based
Hungary is one of the region's most to the domestic market, to developing the
in Athens, today he has an
prominent opportunities, having seen a boom internationally popular coastal areas. We find expanded role overseeing an RCI
in its real estate sector over the last few years, that hotel operators in Turkey understand the Business Development team for
with Budapest being the main attraction for benefits of the shared-ownership models and a region that spans the Nordics,
international investment in Central Europe. are looking to expand their sales operations to Central-Southeast Europe, the CIS
Love Home Swap, an RCI Exchanges' international source markets. and the Middle East.

34 Q 1 /Q 2 2 01 9
14 ٣
DAYS OF VACATION
Per Year? %

$300
AVERAGE COST
Per Night?

20 3
HOW MANY YEARS ADD INFLATION
Will you vacation for? %

TOTAL SPEND TOTAL SPEND


with inflation added

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