RCI Ventures Magazine: March/April 2011 (US edition)

Products, services and technology add value and convenience

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ENTERPRISING IDEAS FOR THE VACATION INDUSTRY I APRIL 2011

INSIDE: THE ALL-NEW RCIAFFILIATES.COM P.18

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INSIDE:

Industry Roundtable

RCI® Affiliated Resort Profiles: Fairmont Heritage Place

AMResorts

The RCI® Christel House Open® International Charity

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ENHANCING the Experience

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RCIAFFILIATES.COM MARCH/APRIL 2011 I RCI VENTURES 1 n

P. 2 MESSAGE FROM RCI

P. 4 RCI®: ENHANCING THE EXPERIENCE Products, services and technology add value and convenience

P. 8 INDUSTRY ROUNDTABLE Industry leaders discuss staying ahead of changing trends, succeeding with technology and the fine art of keeping owners and guests happy

P. 16 AFFILIATED RESORT PROFILE AMResorts

P. 18 RCIAFFILIATES.COM Strategic online enhancements help you leverage RCI’s support for your business

P. 22 RCI® ELITE REWARDS® CREDIT CARDCardholders will discover even more ways to use their Rewards

P. 23 THE RCI® CHRISTEL HOUSE OPEN®

INTERNATIONAL CHARITY GOLF TOURNAMENT

P. 24 INDUSTRY NEWSNew RCI® affiliated resortsEvents calendar: through June 2011

This Issue:

No part of this magazine may be reproduced without written permission from RCI. RCI Ventures publishes opinions of many leaders. These opinions are not a substitute for legal, accounting or other professional advice.

The views and conclusions expressed in RCI Ventures are those of the authors and are not necessarily those of RCI nor of its parent or affiliates.

The information contained in this publication has been obtained from sources the proprietors believe to be correct. However, no legal liability can be accepted for any errors.

©2011 RCI, LLC. All Rights Reserved. 9998 North Michigan Road, Carmel, IN 46032

PublisherBrian Bruno

Associate PublisherEmily Sadlock

Contributing EditorsSteve AlessandriniRanjana BiswasHelen FosterJulie Tenney

Advisory BoardJeff ParkerMelinda EmmanoelidesKris JamtaasRobert StoltDanielle GaliotoAmy LipkaJeff NoonanDebbie WunderLucie GagneEsther Grisham

Editor in ChiefChuck Wentzel

Managing EditorGaetano Pollice

Associate EditorAndrea Fjeld

Assistant EditorKaren Nagy

Project ManagerNicole Vallecillo

Director, Marketing ServicesEric Martucci

Creative DirectorRoe Intrieri

DesignersLuAnn Graffeo, Ash Oat

Assistant Photo EditorPamela Pasco

Digital Imaging and Prepress Specialist Hiroki Tada

P. 14 AFFILIATED RESORT PROFILE Fairmont Heritage Place

MESSAGE FROM RCI

n 2 RCI VENTURES I MARCH/APRIL 2011

Dear RCI Affiliate:

ARDA is always a great opportunity for us to showcase the many exciting initiatives we are working on that will benefit you and your owners.

Last March, we introduced you to two of our biggest initiatives—RCI Points PlatinumSM and RCI® Weeks Enhancements. Since launching in June and November of 2010, respectively, we have seen very positive results.

With RCI Weeks Enhancements, your owners are telling us that they are thrilled with having a view of their trading power and the vacation possibilities that come with it, and your sales teams are excited about having a greater story to tell at the sales table. A former subscribing member contacted us after hearing about the enhancements and went on to renew, deposit and book an exchange. Also, a sales person at one of our affiliated resorts saved two contracts because of the great new benefits that RCI Weeks Enhancements provide. These are just a couple of the great stories coming in from the front lines, and there are so many more just like them.

Our RCI Points Platinum membership is also making a big impact. Thousands of RCI Members have signed up to receive the many upgrades and discounts offered through this premier-tier program, and dozens of RCI affiliates are now a part of the program or lined up to participate.

This is all great news, but we’re not content to rest on our laurels. We never stop trying to improve our products and services. For all of us at RCI, it’s always about providing more choice, more benefits, more value and increasing customer satisfaction—both yours and your owners.

At this year’s ARDA conference, we will be rolling out some more very exciting additions and enhancements to our social media campaigns, core product lines, training and sales tools. We invite you to stop by our booth in the exhibit hall to experience them for yourself. For those who are unable to join us at ARDA, you will be learning much more in the weeks to come.

As always, we thank you for your valued affiliation. We hope to see you at this year’s conference.

Sincerely,

Gordon GurnikPresident, RCI

Geoff Ballotti Chairman and Chief Executive Officer

Gordon Gurnik President

Ricardo Montaudon President, Mexico and Latin America

Charisse Cox Managing Director, Pacific

Adrian Lee Managing Director, Asia

Faye Tylee Executive Vice President, Global Human Resources

Sean Lowe Managing Director, Europe, Middle East, India and Africa

Gail Mandel Executive Vice President and Chief Financial Officer

Brad Dettmer Chief Information Officer

Paul Cash Senior Vice President and General Counsel

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RCI: ENHANCING THE EXPERIENCE


RCI—the company that established the vacation exchange industry—continues to reinvent the industry through its ground-breaking innovations in products and services. Last year, RCI announced exciting enhancements to the RCI® Weeks program and launched a new premium tier of subscribing membership: the RCI Points PlatinumSM member tier. After a successful and well-received introduction to RCI Points® subscribing members, RCI will make this premium tier of membership available to RCI Weeks members in the coming months.

“Members are looking for increased value from their RCI membership and vacation ownership—more premium benefits, opportunities for priority access and special member discounts,” says Geoff Ballotti, chairman and CEO, RCI. “The RCI PlatinumSM membership tier seeks to meet those needs for members, and, equally important, gives our developers a more meaningful

differentiator at the sales table for new owners as well as existing owners.”

In addition to offering increased benefits to members, the RCI Platinum membership helps generate deeper engagement, and broadens the relevance of the program to members by giving them access to special member benefits when they are at home or traveling.

“The additional benefits that RCI Platinum members can enjoy every day—even when they are not on vacation—are a dynamic and exciting dimension of this program,” says Fiona Downing, senior vice president of business transformation at RCI. “RCI Platinum members, who already enjoy great vacation benefits with RCI, will come to rely on RCI to offer great lifestyle benefits that they can use and enjoy any day of the year.”

ENHANCING the ExperienceProducts, services and technology add value and convenience

Wrap your sales in Platinum

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ere are some of the exchange and lifestyle benefits offered as part of the RCI Platinum subscribing membership—for RCI Points members and soon

for RCI Weeks members:*

• Opportunities for free room upgrades• First look at specially acquired (non-member

deposited) vacation inventory, before it is made available to regular members

• Rebates for qualifying transactions, credited to a member’s RCI account and applied against future transactions

• Preferred member rates at premier ski and snowboard mountains

• Preferred pricing and “front-of-the-line” privileges for select city destination attractions

• Advance access to purchase theater tickets• Beyond-the-green fees in golf—complimentary

carts and pro shop discounts • Savings on day spa packages, gym memberships

and fitness equipment • More cash-back rewards from the RCI Shopping

PerksSM program• Savings on everyday purchases at restaurants,

groceries, automobile insurance, car rentals and limo services.

• . . . and more!

Many RCI Points members are currently able to enroll in the program. RCI Weeks members will be able to enroll in the coming months. For more details, contact your RCI account manager.

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* Certain products and services listed above are provided by third parties, some of which may be initially or only available in the United States. RCI does not warrant the suitability or security of such benefits or the providers of such benefits.

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RCI: ENHANCING THE EXPERIENCE


Endless Vacation® magazine and RCI®Ventures are independent publications and have not been authorized, sponsored, or otherwise approved by Apple Inc. iPhone, iPod touch, iTunes and iPad are registered trademarks of Apple Inc.

Facebook Facebook.com/RCITimeshare

The RCI Blog Blog.RCI.com

Twitter Twitter.com/ RCI_Timeshare

YouTube YouTube.com/ RCITimeshare

For RCI subscribing member news and updates, follow RCI at:

n addition to the RCI SnapBookTM and RCI® TV features, the RCI app for the iPhone® now offers users two new features: access to the Resort Directory for the iPhone® and

RCI Member Account Alerts.The Resort Directory for the iPhone® feature will allow users

to view descriptions of RCI affiliated resorts and search by name or locations. They will be able to view RCI affiliated resort photos, see amenities and review resort ratings.

In addition, by clicking the handy action button, they will also be able to:

• Save a resort to “my resorts” list• Email a resort link to family and friends• Compare resorts side-by-side• Share resorts on Facebook

These added features will make finding out about RCI affiliated resorts easier when members are on the go.

The RCI Member Account Alerts feature keeps members current with important RCI account information by indicating when new alerts are available. For example, members will be reminded if Points are about to expire, they have a week eligible for deposit or when their memberships need to be renewed, among other prompts to help them better manage their RCI accounts.

RCI® app for the iPhone®: two exciting new features

As an innovator in products and services for the vacation ownership industry, RCI has also been at the forefront of implementing technology to provide affiliated resorts and subscribing members with broader access to content—including RCI® TV and the RCI Directory of Affiliated Resorts—first via the iPhone® and now for the iPad®!

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The RCI app for the iPad® will offer the same features as the RCI app for the iPhone®, with the ability for users to access even more information—all developed to take advantage of the larger screen of the iPad®.

The Resort Directory for the iPad® offers users the ability to view all of RCI’s affiliated resorts and to narrow the number of resorts through simple navigation or by tapping on the interactive map. Members can see great affiliated resort photos, read the list of resort amenities or compare multiple resorts side-by-side.

The RCI SnapBookSM and RCI TV features will have larger photos and higher-resolution videos than before. The RCI app for the iPad® will also provide a gateway into the new Endless Vacation® magazine app.

ow users can enjoy the great articles and information subscribing members find in the print version of Endless Vacation magazine on the iPad® with the new

Endless Vacation magazine app. The experience will be enhanced by the app’s dynamic features which amplify the magazine’s award-winning content with additional information, photos and videos. And for RCI affiliated resorts featured in the magazine’s popular Stay sections, which accompany feature articles, the Endless Vacation app for iPad® will offer one-touch access to the Resort Directory for iPad® users!

Members can connect to the Endless Vacation magazine app through the RCI app for the iPad®, or download just the Endless Vacation magazine app for the iPad® directly.

RCI® app for the iPad®: five fabulous features for a bigger screen

Visit the iTunes® App Store to download these RCI apps for free!Download the RCI app for the iPhone®/iPod touch® and the iPad® at the iTunes® App Store.

The new Endless Vacation® magazine app for the iPad®


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INDUSTRY ROUNDTABLE


GreatExpectations

As vacationers expect more for their

money, our panel discusses staying

ahead of changing trends, succeeding

with technology and the fine art of

keeping owners and guests happy


How do guest expectations impact the way you conduct

business and plan for the future?

We want guests to be satisfied, and we try to anticipate what

they might expect. Using feedback from former guests, we target areas that the guests feel are important when planning future projects or adding amenities.

We keep our service delivery process as feedback friendly as

possible; our formal feedback processes via email surveys and comment cards provide us the opportunity to measure our overall success in meeting guest expectations. Once a month, we host a service conference call for all our resort managers to dial in and share their service successes and best practices.

In all my years of business with various customer

experience and service areas, I have never encountered a company that places more emphasis on soliciting feedback from customers than RCI. Feedback is collected at a variety of key interaction points that begin the day they become RCI® subscribing members. Understanding customer needs provides the knowledge to better serve them now and anticipate their future needs.

Guest expectations have evolved through the years. Many of our

resorts are affiliated with the RCI Points® program, which allows those owners to use their vacation one day at a time or up to seven nights. It is clear to us that owners are now demanding shorter but more frequent mini-vacations.

What are some of the recent and current trends that you

have seen and responded to?

Our Going Green initiative, which we launched more than

a year ago was driven by economics, feedback from our owners and our corporate commitment to do the right thing. It has impacted our resort refurbishments, owner communications and corporate consciousness.

Guests have become very informed regarding their

vacation options. Social media allows for instantaneous sharing of vacation experiences with a wide audience. More than ever before, guests are seeking value and flexibility for every vacation dollar.

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RCI Ventures asked some leaders from across the industry to reflect on guest expectations. Our panel included: Scott

Merritt, general manager at Silver Lake Resort (Orlando, Florida); Loren V. Gallagher, president and general counsel, and Stacey Shilling, chief operating officer at Vacation

Resorts International (California); Nigel M. Lobo, vice president, operations, Grand Pacific Resorts (California); and Susie McConnell, director of RCI global customer experience and product management (Indianapolis, Indiana). Here are selected highlights from their responses.

our Going Green initiative was driven by our owners

—Nigel M. Lobo“ ”

INDUSTRY ROUNDTABLE

social media allows for instantaneous sharing

—Loren V. Gallagher“ ”People are expecting more “free” stuff, like Internet

access, especially as maintenance fees are increasing. Unfortunately, at our resort the fees are increasing to mitigate bad debt from nonpaying owners, not to add or replace amenities. We have provided wireless, but we need to cover the expense of having equipment installed. It is cheap, but not free.

Our RCI® subscribing members want greater autonomy and

control over the planning and booking process. New customers now receive improved comprehensive information and tips on how to best utilize their RCI subscribing membership benefits. Increased training for RCI guides has given members more consistent and thorough information when they contact us. Great new tools have been added to RCI.com.

What are your strategies for mitigating unreasonable

expectations and addressing unreasonable expectations?

It can be a challenge to deal with unrealistic or

unreasonable guest expectations. Fortunately, those are few. We have learned over many years of delivering our management services that issue resolution relates less to the expectation and more to how the guests are treated. We are proud of our service motto, “perfecting the art of hospitality,” and we treat each guest

with politeness and respect. We can’t make everyone happy all the time, but we can—and do—demonstrate professionalism and patience when educating our owners and guests regarding appropriate expectations.

Customers are not right or wrong. In many cases,

unreasonable expectations arise from a lack of understanding and/or inaccurate information. We have determined that most disconnects can be addressed through education, explanation, service and communication.

Last year we created a new position: Director of Owner

Loyalty. We now have a senior executive with oversight for driving owner loyalty with an eye on potential disconnects between customer expectations and reality. A key focus area is educating the customers about their ownership and how best to maximize it to drive satisfaction and loyalty.

Customers are not always right, but they are always

the customer. I empathize with the guest, listen to what they have to say, and find out what they are really looking for. The truly unrealistic or unreasonable expectations are easily dealt with by simply talking about the cost of their demands compared to the value of not meeting their expectations. Humor helps, in the right situation, to bring the guest back to reality.

How have economic challenges impacted what

guests expect?

Vacationing remains a priority, even in times of economic

downturn, though travelers are increasingly concerned about controlling expenses and getting value for their money. Customers want options. They may decide that a drive-to destination may be a better fit for them than longer-distance vacations, while others decide to make a greater sacrifice to get to that special destination.

Owners are understandably expecting more for less during

these difficult economic times. There must be a continuous effort to find equilibrium between the legitimate financial needs of associations and a sense of good value for the owners.

The increase in maintenance fees gives people the

impression that they should be getting more from us, and not less. Many people understand the situation we are all dealing with and tend to understand the economics of not including certain amenities or services (daily housekeeping, etc).

A key guest expectation is around value received. The

recent economic challenges put additional pressure on driving value for our customers. They expect top-notch service with minimal cost.


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RCIAFFILIATES.COMRCIAFFILIATES.COM MARCH/APRIL 2011 I RCI VENTURES 11 n

bigger flat screens, wireless access throughout the resort

—Scott Merritt“ ”

NIGEL LOBO As vice president, op-erations at Grand Pacific Resorts, Lobo has the overall leadership of resort operations, in-cluding inventory man-agement, owner ser-vices and HOA support, resort maintenance, design, purchasing and new business develop-ment. Lobo has held various senior executive positions in the hotel and resort management field, including franchise operations for various brands including the Intercontinental Hotels Group, Marriott and Hilton brands, in Asia, Europe and the United States. He received a master’s degree in ho-tel administration from the Rochester Institute of Technology, and an undergraduate degree in economics from the University of Bombay. He also completed eCornell’s Leadership and Strategic Manage-ment Program from Cornell University.

SCOTT MERRITTMerritt has been the general manager at Silver Lake Resort, located in Orlando, Florida, since October 2005. Merritt began his timeshare career in 1998 at the Christie Lodge, an RCI affiliated resort in Avon, Colo-rado, where he served as both resident man-ager and front office manager. He joined RCI in 2001 as an account executive based in Denver, Colorado, and in 2003, relocated to Florida and joined the Southeast team. Merritt is an active member of ARDA.

ABOUT THE PANEL

SUSIE McCONNELL McConnell is director of RCI global cus-tomer experience and product management. She joined RCI in 2006, and her role is to ensure that RCI applies best-in-class methods to collect and utilize feedback on every key aspect of the RCI customer experience. In addition, McCon-nell has responsibility for Weeks and Points Product Management. Prior to her position at RCI, she spent 20 years in various positions within the telecommunications industry related to customer and quality management, includ-ing customer ser-vice, sales and client support, call center management, and as a contributor and trainer for a number of quality-improvement programs and methodologies. She is a member of the ARDA Research Committee.

LOREN V. GALLAGHER Following 15 years with Vacation Resorts Inter-national, Gallagher left in 1995 to pursue other industry adventures, including senior vice president/acquisitions in Asia for a publicly traded company, president of a management company for 65,000 members of a points-based time-share club, and chief operating officer/general counsel for a $100mm+ developer. Gallagher returned to VRI in July 2009 as president and general counsel, and is now responsible for corporate strategic planning, growth and alliance opportunities with 2,200 resorts and 300 corporate employ-ees. Gallagher holds a master’s degree in in-ternational government/Chinese language, and has been a member of the California State Bar since 1983.

STACEY SHILLING Shilling has held a variety of key positions at Vacation Resorts International for nearly 30 years. As chief operating officer, she holds senior supervi-sory responsibility for guest reservations and services, assessment billing and collection, resort administra-tion, rental marketing, information technology, employee education and training, corporate and resort insurance and human resources. She also served for an extended period on a timeshare association board of directors.

maintaining and increasing product and service value

—Susie McConnell“ ”


INDUSTRY ROUNDTABLE

Has technology impacted guest expectations and your

ability to anticipate and fulfill them?

One big impact is that things can be found faster and often

cheaper. Guests are more demanding and have little patience. They want bigger flat screens, wireless access throughout the resort and even a better business center. A 42-inch, flat-screen television was $2,500 when we first installed them, but thanks to better technology, larger televisions can now be purchased for less than half the price.

The Internet provides customers with a wealth of information

about travel products and services and helps them to develop their own expectations. This inspires us to rise to the occasion. Technology is always improving, and it is essential to do more than keep up with the industry. Social media outlets have provided an opportunity for us to “hear” customer dialogue, which in turn broadens our knowledge beyond what we learn via traditional feedback channels. RCI recognizes the benefits of having both solicited and unsolicited feedback from customers and uses the information to drive change, resulting in improved products, services and education.

SS Technology continues to evolve quickly, and it is a challenge for

any business to stay cutting-edge, with instant communication and easy access. We are fully committed to responding to

our guests’ technology expectations and are now transitioning to a fully Internet-based platform. We will never sacrifice our ability to deliver consistent, timely and accurate financial reporting to our managed resorts.

We are moving toward paperless communication with our owners

and guests. Our owners are opting in to receive their newsletters and other communications via email. This also supports our overall Going Green initiatives with considerable cost savings, as well. We have also leveraged social media at each resort, with individual Facebook and Twitter accounts, which allow for enhanced and timely communication as well as a sense of connection. We also use electronic surveys that generate immediate feedback for immediate responses by our resort team.

How do you think guest expectations are going to

change, and how will those changes affect your business and the vacation ownership industry as a whole?

There is no doubt that guest expectations will continue to

evolve at a significant pace. Today’s consumers seek a complete vacation experience, with all planning and coordination conducted in a seamless, efficient manner. As an industry, we must respond with a continually improving product mix and more proactive involvement with all aspects of our guest’s vacation planning and experience.

In current economic times, guests are being more discriminating in

how they spend their dollars. As a result, they are becoming more demanding and less flexible, and often less shy about asking for free upgrades or VIP treatment. This may result in the guest getting a better-perceived value for their dollars. When we can meet their demands, we have a more satisfied guest. The downside is that we are creating a guest who will continue to push the envelope more and more.

Timeshare ownership represents a value vacation on multiple

levels; not only is it affordable financially, it also offers an array of opportunities in an economic climate where many costs are rising. Our guests’ expectations will continue to focus on the value received on their investment in a lifetime of vacations. Happy and engaged owners and guests will have a positive impact on the timeshare industry as a whole.

Our subscribing members’ expectations will continue to

evolve. Our culture is moving fast, and lifestyles are becoming increasingly busy, necessitating more efficient use of our time and resources. We know that customers want to spend their time looking at all of the fantastic destinations they can visit, and less time on the tasks associated with completing transactions. As travel options increase and consumers have greater ability to view and compare them, the industry will need to focus on maintaining and increasing product and service value. V

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AFFILIATED RESORT PROFILE

A rich tradition of

hospitality


The Fairmont Hotels & Resorts portfolio includes more than 60 distinctive resorts and hotels throughout the world, from San Francisco to

Singapore. With more than a century of experience as hoteliers, Fairmont defines its quality brand experience with properties on secluded beaches, in high mountain retreats and in the heart of vibrant cosmopolitan cities. Their private residence club, Fairmont Heritage Place, offers even more luxuries and amenities. Recently becoming an RCI® affiliate with The Registry Collection® program, the affiliation affords owners the opportunity to visit other luxurious resorts and explore new destinations.

RCI ® Ventures had the opportunity to speak with Rick Hous-ton, general manager, operations, for Fairmont Heritage Place.

What industry-related trends are you seeing?

We are seeing that our private residence club product has weathered the financial crisis far better than other

hospitality segments. Owners are demanding more value for their money and want to ensure that they are getting something from each dollar or peso they pay to their association with the Fairmont brand, and we are able to meet their expectations.

What significant challenges have you successfully addressed?

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Fairmont Heritage Place,At Nature’s Door,

Whistler, BC, Canada

Rick Houston

Fairmont Heritage Place

MARCH/APRIL 2011 I RCI VENTURES 15 n

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of the exclusive tier of the program as President’s Circle members. We moni-tor their contribution to the brand and have seen a steady increase in their use of Fairmont hotel and resort properties. This tells us that while our owners are interested in finding the best deals, they are willing to pay for the experience as long as they receive value in return.

Fairmont Hotels & Resorts is recognized as a leader in envi-

ronmental stewardship and community causes. Tell us about these commitments.

Fairmont Heritage Place takes this commitment to the next lev-

el by involving our owners in various ini-tiatives. Each property has a very active Green Team, which promotes causes that are important to their communities. All of our resorts have committed recy-cling and conservation programs.

Additionally, residents are given the opportunity to learn about the specific environment they are visiting through activities that are not only recreational, but also educational. As an example, our Fairmont Heritage Place, Ghirardelli Square, sponsored a Muir Woods res-toration effort to clean up and restore a fragile habitat in this beautiful redwood-adorned park. In Telluride, Colorado, our Green Team is focused on helping to establish a National Wild and Scenic designation for the San Miguel River. In Acapulco, our colleagues are com-mitted to preserving sea turtle nesting grounds that are located on the Pacific Ocean beach in front of the property.

RCIAFFILIATES.COM

The biggest challenge that we have successfully faced is how

to manage the financial sustainability of every one of our properties. During these difficult economic times, owners have demanded either flat budgets or decreases in assessments. We have had to become very creative in continu-ing to enhance our owner’s experiences with fewer resources available. In short, we have had to do more with less.

We focus on the delivery of a level of service that is not reliant on amenities, but rather on knowing customers as individuals. We are then able to pro-vide them with insight as to how they can get more out of their experience and further enjoy the destination. We focus on sharing local information, such as free art exhibits, special spots for picnics or restaurants that are of great value yet affordable.

What is your outlook for the vacation ownership industry?

We are very optimistic. We see many independent develop-

ers looking to fall under the Fairmont Heritage Place brand for the exceptional value that the brand brings. Our owners have the ability to experience Fairmont’s high standards at our Fairmont Heritage Place properties, and owners may also exchange their weeks to travel to any of our Fairmont hotels or resorts. We have seen increased travel in this area, along with owners using our loyalty program, Fairmont President’s Club. Owners are invited to become members

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How has technology impacted the way you do business?

It allows us to improve the service we offer to our owners

and guests. We have established databases to track our owners’ interests. If we have a special culinary event in any one of our destinations, we are able to communicate to those owners who have expressed an interest in food and drink.

Whether it is a customized grocery shopping service, spa treatments designed for their personal needs or activities like ice climbing, kayaking or paragliding, we ensure that our owners are provided with the best experience our destinations have to offer. This al-lows them to anticipate the experience, and allows us to arrange for the best guides or instructors to deliver a most memorable experience.

What’s next for Fairmont Hotels & Resorts?

2010 was an exciting year, with the reopening of two

iconic properties after extensive renova-tions—London’s the Savoy, a Fairmont-managed hotel, and the Fairmont Peace Hotel in Shanghai. In 2011 we will see the addition of new hotels in exciting destinations such as India and Azer-baijan. As well, a number of Fairmont Heritage Place and Fairmont residential developments are in the works. We an-ticipate making official announcements this year. V

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“Our properties are iconic and typically offer unrivaled presence in their respective

communities. We deliver a service experience that exceeds expectations because of the

extremely high level of engagement from our team of dedicated colleagues.”

— Rick Houston, general manager, operations, Fairmont Heritage Place

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AFFILIATED RESORT PROFILE

Premium All-inclusive


A portfolio of award-winning brands, AMResorts operates 22 resorts with more than 8,000 rooms in

Mexico, the Dominican Republic and Ja-maica. Brands include Zoëtry Wellness & Spa Resorts, Secrets Resorts & Spas, Dreams Resorts & Spas, and Now Resorts & Spas. These full-service and holistic facilities offer gourmet oceanfront restaurants and premium bars, cultural and educational activities, as well as 24-hour concierge services.

The Unlimited-Luxury® vacation experience concept offered at Secrets Resorts & Spas, Dreams Resorts & Spas

and Now Resorts & Spas appeals to travelers who seek a con-venient yet upscale vacation experience. The Zoëtry Wellness & Spa Resorts brand’s high standards for excellent quality and service combined with the Endless Privileges program deliver the ultimate in guest pleasure and exclusive wellness offerings with concentrated personalized services for every guest.

Alex Zozaya, president of AMResorts, spoke recently with RCI ® Ventures.

AMResorts recently affiliated with RCI. Why?

It is very well known that RCI offers a wide range of exchange services and products to its large member

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AMResorts’ Dreams Punta Cana Resort & Spa,

Dominican Republic

Alex Zozaya

AMResorts


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inclusive vacation programs, with premium liquor and food brands, full-service spas, ideal resort layouts for maximum ocean view rooms, elegantly finished decor and luxurious guest accommodations. This is the concept under which our member-ships are positioned. We do not charge maintenance fees and members can check in any day and stay as long as they want.

Of what accomplishments are you most proud?

Last year, we introduced a new re-sort brand, entered into new des-

tinations, opened five properties, received more than 75 industry and guest awards and announced the company’s largest development project to date. At the close of 2010, AMResorts employed 11,520 staff and generated more than $425 million in annual sales. The year also saw great recognition for AMResorts’ Zoëtry Paraiso de la Bonita Riviera Maya, which for the seventh consecutive year received the AAA Five Diamond award.

What industry-related trends are you seeing?

I see Mexico’s general market dropping rates because the book-

ing pace is not moving as fast as it is in places like Jamaica, Dominican Republic and Costa Rica. The oversupply in Mexico is the consequence of the boom in 2005, 2006 and part of 2007, which created a lot of new rooms. We didn’t have the same growth in the supply of airline seats, so to

RCIAFFILIATES.COM

base. This shows its quality and expertise as well as excellent customer satisfaction. RCI also has a lot of experience handling diverse resort types with multiple brands such as ours, which offer luxurious vaca-tions where everything is included for dif-ferent kinds of clients, ranging from adults only, to families, lifestyle and others.

How has technology impacted the way you do business?

In 2009, AMResorts launched a social media campaign to jump on

the growing popularity of social media plat-forms, including Facebook, Twitter, blogs and forums. Social media gives us a direct avenue to connect with loyal guests and travel agents. Each luxury resort brand has unique content on its social media site to deepen consumer awareness for its brand. These tools also allow us to communicate and to listen.

What other changes have you experienced in the industry?

Even though we are new in the vacation ownership industry, we

have observed the evolution of clubs from time-fixed unit memberships, to floating time and unit types, to points programs. In recent years, we watched the success of the promotion of all-inclusive member-ships throughout Mexico and the Carib-bean. Thanks to this evolution, companies such as ours are able to create their own vacation clubs. Unlimited Luxury positions our products in the upper tier of the all-

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fill up those rooms we need to discount deeper than the airlines.

What is your outlook for the vacation ownership industry?

It is definitely a steadily growing segment within the travel

industry, and it will continue to grow. As a business decision, vacation owner-ship makes sense to both developers and clients. All brands wish to retain loyal clients, and the vacation club model ac-complishes that. In the near future, we will see more resorts develop clubs to achieve this goal.

What’s next for AMResorts?

We are aggressively pushing to exceed the 10,000-room mark

in 2012. We will continue to expand by introducing the 339-suite Secrets Huatulco Resort & Spa in summer 2011. Secrets Vallarta Bay Puerto Vallarta and Now Amber Puerto Vallarta will debut in 2012. In the near future, Now Larimar Punta Cana and the Gems at Cap Cana, AMResorts’ most significant development project to date, will debut. Announced in April 2010, the four-resort, $400 million complex in Cap Cana, Dominican Republic, will be comprised of Zoëtry Gems at Cap Cana, Secrets Gems at Cap Cana, Now Emerald Cap Cana and Now Pearl Cap Cana. The new development will offer a combined 1,100 suites and create 6,000 new jobs. V

“AMResorts weathered the storm of 2010 with success due to its aggressive approach. Five new resorts, the launch of a new resort brand and the announcement of the company’s most ambitious project to date—the $400 million Gems at Cap Cana development—underscore this success.”

— Alex Zozaya, president,AMResorts

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RCI NEWS


ave you discovered the exciting new enhancements at RCIAffiliates.com yet? Launched two months ago, the redesigned website provides a global framework and offers region-specific features and content. As

part of RCI’s ongoing commitment to providing relevant, useful and timely information, the site is a centralized resource for RCI® affiliated resorts to find out about RCI® products, services and updates.

The site also highlights RCI’s distinct competitive advantage: the people, products, technology and steadfast dedication to quality. “While our people are at the heart of RCI and provide the promise we make to our affiliates and their owners, innovation has been what has set us apart over the years and is what will continue to differentiate us moving forward,” says Gordon Gurnik, president of RCI.

Strategic online enhancements help you leverage RCI’s support for your business

RCIAffiliates.com

Facts and Figures

Here, you’ll find industry metrics, stats about owners and insightful facts and figures about the timeshare industry.

Quality Network

How does RCI help to ensure that affiliated resorts maintain a high standard of quality? Members provide valuable feedback on RCI Subscribing Member Comment Cards, scoring resort maintenance, unit maintenance and housekeeping. Learn all about the rating system, and download brochures on RCI’s minimum standards, Quality Improvement Program and Resort Recognition Program.

A brand new

H

Consultation

You already know RCI as a full-service, single-source service provider. Its experienced employees make it their goal to understand your business and your specific needs so they can develop innovative ways to help add value to your projects and operations. The interactive graph demonstrates how RCI can be a

reliable resource throughout all phases of a resort’s business cycle—from planning to implementation to marketing and ongoing support.


RCIAffiliates.comRCI Ventures Flip-book

Now there’s a new way to read RCI Ventures! RCI now provides the magazine in a dynamic, online flip-book format for easy browsing. You can still download a PDF version by using the convenient tools in the online flip-book. Now you can search for content, download individual

pages or the entire PDF and print with the click of a button.

RCI Strategic Sourcing Overview

Strategic Sourcing gives RCI affiliated resorts volume purchasing power, so you save through prenegotiated discounts. Learn how you can tailor purchases based on your resort’s needs, location, external competition and, of course, budget. RCI Strategic Sourcing partners include UPS, OfficeMax, Sobel Linen and HD Supply. RCI constantly evaluates suppliers to help guarantee the highest value possible is always a priority.

Region-specific Home PageOnce you’ve selected your region, you’ll land on the dynamic home page—your gateway to all the robust content on the site—which provides you with easy navigational tools and convenient links to information about new RCI programs, industry events and other opportunities for you

to take advantage of. The site is updated regularly, so check back often for current RCI and industry news.

Documents Library

This library is a one-stop destination for all documents regarding RCI® Weeks and RCI Points® programs as well as general-information brochures. If you need a procedure manual, form or communication tool, you can download it directly to your computer.

Strategic Sourcing:

Lower your Total Cost of OwnershipThe Real Measure of Operational Success: TCO

In today’s economic climate, resort proper-ties have little choice but to look for additional strategies to cut costs. RCI Strategic Sourcing, understanding this critical need, has negotiated programs that deliver higher quality products and services at lower price points. While these programs allow for immediate cost savings, they also have been structured to deliver a lower Total Cost of Ownership (TCO) over time, which is an important measure of overall operational success.

Rather than just taking into account the purchase price of products or services, TCO calculates the complete costs associated with your purchases from initial investment to disposal—giving you a more realistic view of your costs.

ADVERTORIAL

Inside the Selection Process

The Strategic Sourcing vendor selection process ensures all associated product and services costs are thoroughly evaluated with TCO in mind. Getting a lower price on a lower quality product won’t save you money if it needs to be replaced or repaired often. The rigorous product testing and assessment that’s built into our selection process ensures you have access to the highest quality products at the lowest possible prices.

“The Strategic Sourcing testing process is grueling and extremely thorough,” says Steve Tipton, vice president, Simmons Bedding Company. “This results in contracts that deliver upgraded products at prices typically associated with lower quality options. Strategic Sourcing drives ‘value’ into the proposition.”

Strategic Sourcing will help you save

money, enhance your guest experience and run a better, more efficient

business.

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Preserving Choice & Standards

While leveraging economies of scale to negotiate the most competitive pricing from sole-source suppliers, Strategic Sourcing also understands the importance of choice. The “GOOD, BETTER, BEST” initiatives deliver highly leveraged deals while allowing you to tailor purchases to meet specific business needs, resort location, market competition and, most importantly, your budget.

Selected suppliers also are required to meet minimum quality standards and have hospitality designed testing programs of their own.

“All of our products are tested for durability by an independent lab,” says Judy Dannan, vice president, corporate sales at Sobel Westex. “We deliver affordable, well-constructed, high perform-ing terry and linen products that we stand behind completely. Discount retail stores won’t take products back if they don’t hold up to repeated washing and wear or provide the level of service a resort property demands. But as a Strategic Sourcing supplier, we will.”

Tipton echoed the importance of this qualification, noting that hospitality-grade products are far different from those purchased for in-home use. Simmons employs a rigorous testing program designed to age products 10 years and simulate maximum wear.

“If you buy only on price, you risk driving down your customer satisfaction scores and increasing replacement, labor and disposal costs,” said Tipton. “All of which will have a negative impact on TCO.”

Simmons also offers properties options to minimize mattress replacement costs with its EverNU® product line. Simmons developed the EverNU mattress top to help resorts get the most use out of their mattresses. The average resort property replaces its mattresses every seven years, and most of these replacements occur because the comfort layers have compressed over time, causing the beds to lose their original feel. The EverNU top enables a resort to replace the comfort layers of its mattresses without replacing the beds’ Beautyrest® Pocketed Coil® springs, which last far longer than the fabrics and foams used in comfort layers.

ADVERTORIAL

Smarter Sourcing

The bottom line? TCO matters. And the suppliers you choose can greatly impact your ability to achieve a lower TCO and prosper even in the most challenging economic times. Leveraging the industry-leading programs negotiated by Strategic Sourcing will help you save money, enhance your guest experience and run a better, more efficient business. It’s that simple.

To get up-to-date information on the latest deals, visit us at RCIAffiliates.com/north-america/developer-services/business-support.

All products and services are manufactured and/or provided by each respective supplier and not Wyndham Worldwide.

* Use of the RCI Resort Dollars card is subject to certain rules and restrictions of RCI, the preloaded card provider and the participating affiliated resort or merchant accepting the preloaded card, as applicable. RCI Resort Dollars cards have no implied warranties and are not credit cards. RCI affiliated resorts are not sponsors or co-sponsors of this program.

†For information about the rates, fees, other costs and benefits associated with this credit card, visit RCIEliteRewards.RCI.com. This credit card program is issued and administered by FIA Card Services, N.A.

MasterCard is a registered trademark of MasterCard International Incorporated and is used pursuant to license.

Rewards + Dollars was introduced to deepen cardholder loyalty. Using the card for everyday purchases helps cardholders accumulate Rewards, which they can choose to use to offset the cost of their timeshare ownership, RCI membership and transaction fees. To help drive cardholders to use the card, the program offers double Rewards in select categories throughout the year. For the first quarter of 2011, the program targeted utilities such as gas, electric and cable.

For affiliated resort developers, the RCI Elite Rewards credit card can be a valuable asset at the sales table. In most cases,

an instant credit decision is available. Upon approval, cardholders can finance down payments.

And the card is valuable in many other ways. Cardholders can redeem Rewards for an RCI Resort Dollars® card*, preloaded so they can pay for maintenance fees or on-site activities—such as golfing fees, equipment rental and other expenses at RCI affiliated resorts where MasterCard® is accepted. Every purchase helps cardholders earn Rewards, which can be redeemed toward car rental, travel and other goods and services, up to a maximum of 7,500 Rewards per month.

The card still carries its low introductory APR offer and competitive APR thereafter.† At certain vacation destinations, select merchants may offer opportunities for point-of-sale discounts. Throughout the year, cardholders may also receive double Rewards by using the card with select merchants.

While the RCI Elite Rewards credit card offers cardholders great benefits, it also enhances the value of their vacation ownership—which is a benefit both to the cardholder and to RCI affiliated resorts. V

Ready for almost anything! RCI® Elite Rewards® credit card holders will discover even more ways to use their Rewards

Rewards + Dollars This offers cardholders the ability to combine their Rewards with dollars to redeem for the majority of Reward items offered.

RCI Member Dollars® Cardholders can redeem Rewards for credits to be added to their RCI account, which can then be used toward RCI fees.

NEW

RCI® ELITE REWARDS® CREDIT CARD

The RCI® Elite Rewards MasterCard® credit card—already the credit card of choice for many timeshare owners—has many exciting features that make the

card and its Rewards even more valuable for cardholders while on vacation and all year long. Among the unique features are:


2011 RCI® CHRISTEL HOUSE OPEN®PH

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Teeing off around the globe

Golfers are eagerly preparing for the annual RCI® Christel House Open®, one of the

pre-eminent international charity events in the industry. Now in its ninth year, RCI has participated in the Open since its inception, and in 2011, it is proud to mark its fifth year as the event’s title sponsor.

Approximately 1,600 golfers are expected to tee off on Monday, June 13, at 15 locations. In addition to the tournaments scheduled across the United States, RCI will host events at sites in Mexico, South Africa and the United Kingdom.

All proceeds from the tournament benefit Christel House International, a 501(c) (3) public charity that helps take children out of the cycle of poverty and allow them to become independent, contributing members of society. RCI co-founder Christel DeHaan established

the organization in late 1998, opening its first learning center in Mexico City, Mexico. Today, just over 12 years later, it serves more than 3,200 students, their families and communities on five continents. The Christel House Open is a welcomed event for the industry to support the important work of Christel House and its impact worldwide.

For further information regarding the RCI Christel House Open, contact Becky Arnett at [email protected] or 317-464-2009. To find out more about Christel House, visit christelhouse.org. V

Students at Christel House Venezuela discuss a class project with their teacher.

Golfers gear up to raise money for charity


INDUSTRY NEWS

Events calendar: through June 2011 DATES EVENT WEBSITE

April 10–12 Caribbean Hotel and Resort Investment Summit (CHRIS) Miami, FL, USA chrisconference.com

April 17–20 Cityscape Abu Dhabi Abu Dhabi, UAE cityscapeabudhabi.com

April 27–29 Canadian Resort Development Association (CRDA) Resort Development Summit Vancouver, BC, Canada crdaconference.com

April 27–29 Dominican Annual Tourism Exchange (DATE)Punta Cana, Dominican Republic drdate.net

April 30–May 2 The Arabian Hotel Investment Conference (AHIC) Dubai, UAE arabianconference.com

May 2–4 Crittenden National Real Estate Conference Punta Cana, Dominican Republic crittendennational.com

May 2–4 JMBM’s Meet the Money Conference Los Angeles, CA, USA meetthemoney.com

May 7–10 INDABA Durban, South Africa indaba-southafrica.co.za

May 10–12 Caribbean Hotel & Tourism Investment Conference (CHTIC) Location to be announced caribbeanhotelandtourism.com

May 11–12 Global Networking Expo (GNEX) Paradise Island, Bahamas perspectivemagazine.com/gnex

June 5–7 NYU International Hospitality Industry Investment Conference New York, NY, USA

scps.nyu.edu/areas-of-study/tisch/hospitality-conference

RCI® WeeksAguativa Golf Resort Cornélio Procópio, Brazil

AMResorts—Dreams Cancún Resort & Spa Cancún, Mexico

AMResorts—Dreams Palm Beach Punta Cana Higuey, Punta Cana, Dominican Republic

AMResorts—Dreams Puerto Vallarta Resort Puerto Vallarta, Mexico

AMResorts—Dreams Punta Cana Resort & Spa Playas Uvero Alto, Punta Cana, Dominican Republic

AMResorts—Secrets Capri Riviera Cancún Playa del Carmen, Mexico

AMResorts—Secrets Maroma Beach Riviera Cancún Playa del Carmen, Mexico

Bahia Principe Vacation Club Various locations in Dominican Republic and Mexico

Buda Hill Residences Budapest, Hungary

Condominio Vertical Residencial Jade Guanacaste, Costa Rica

Condominio Vertical y Horizontal Residencial Green Turtle Guanacaste, Costa Rica

Condominio Vertical y Horizontal Miramar Guanacaste, Costa Rica

CVHR Casa del Mar del CocoGuanacaste, Costa Rica

Decameron Baru Cartagena, Colombia

Howard Johnson La Cañada Suites Córdoba, Argentina

Mykonos Star Mykonos, Greece

Park & Suites Prestige Val D’Europe Montévrain, France

Royal Decameron Salinitas Sonsonate, El Salvador

Skistar Vacation Club Hemsedal Hemsedal, Norway

Tramonto Condos & Hotel Mazatlán, Sinaloa, Mexico

Vacation Internationale at Homestead Lynden, WA, USA

Verdegreen João Pessoa, Paraiba, Brazil

RCI Points® Old House Village Hotel & Spa Courtenay, British Columbia, Canada

The Ridge Resort at Harrison Highlands Agassiz, British Columbia, Canada

The Suites at Crystal Mountain Resort & Spa Thompsonville, Michigan

The Registry Collection®

Fairmont Heritage Place, Acapulco Diamante Acapulco, Mexico

Fairmont Heritage Place, At Nature’s Door Whistler, BC, Canada

Fairmont Heritage Place, Franz Klammer Lodge Telluride, CO, USA

Fairmont Heritage Place, Ghirardelli Square San Francisco, CA, USA

Fairmont Heritage Place, Inspiration Miramar Beach, FL, USA

Fairmont Heritage Place, Zimbali Zimbali, South Africa

Palazzo Park Hotel & Residence Quepos, Costa Rica

The Residence Club at Cascadia Nashville, TN, USA V

New RCI®

affiliated resorts*

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