DC4MS

Friday May 30th

7:30am – breakfast was not as elaborate as the first day and it seems much less crowded today.

8am – PRC and Fractional discussions. There was some overview of the differences between a PRC and a Fractional and then presentations by The Registry Collection (RCI) and Preferred Residences (II) trading systems. They classified Fractional properties as within driving range and have an open reservations system while PRCs are located within fly-to locations and are more fixed reservations. A few fractional are adopting point reservations systems (Bighorn Meadows Resort).

Interesting observation – for certain weeks (i.e. Christmas and New Years) there will be MORE unhappy owners than happy owners as the demand always is greater than the supply. However a point based system can be used to drive demand. For example, charge more for highly demanded weeks and charge less for less desirable times. The panel admitted that manipulating point charts can change the travel patterns of their customers and this is actually a good thing.

9am – Internet marketing.

Susan Kime, President of Kimedia LLC, stated that streaming video generates sales leads and that they needed to be designed to grab viewers attention. She mentioned a video she was involved with for Solstice that was well received and advised clubs to budget a minimum of $10-15k per video.

R.J. Gallagher, Managing Director, The Residences at The Little Nell, absolutely stole the show with his Bob Dylan inspired presentation via Subterranean Homesick Blues music. He held up giant flash cards about using the Internet to market fractional properties and I was so amazed that I forgot to take notes. I wish he would post his cards online as it was AWESOME. Here is the original.


Steven Greco, VP Focus 360, showed some absolutely amazing computer generated video of fractional properties that are not yet built. They charge between $50k and $250k for a complete video animation of a project complete with digital people, waterfalls, trees, interior and exterior views that were stunning. When viewed on a HD monitor, it actually looks real and is absolutely amazing.

Neil Rubin, SVP, Marketing, Ultimate Escapes, had a PowerPoint slide presentation of his clubs marketing plans. He stated that they used to do 50% print and 50% online advertising, but the online advertising outperformed the print ads and he plans to shift to 70% online marketing and eventually move to 90% online as it is much more cost effective. He has tried NYtimes.com and lifestyle.com and tests different markets such as the American Express tie-ins. He likes to include a “call to action” rather than simple branding. His most effective marketing is dedicated newsletters, personalized e-mail campaigns to a targeted group and opt-in consumers. He mentioned LuxuryLink.com and LuxuryFractionalGuide.com and his #1 goal is to drive people to the UE web site as this is their #1 sales tool. He recommended that campaigns should be personalized.

Greg Shove, CEO Halogen Guides, mentioned that they do not receive any sales commissions, but they do charge fees based upon website impressions , e-mail address, and generating qualified leads.

9:45am – DCA update.
The DCA now has 7 club members and represents over 90% of all Destination Club members. They want clubs to have total transparency, financial responsibility, and pass a Net Asset Test. The DCA stresses that joining a DC is a lifestyle purchase for an improved vacation experience, not an investment or real ownership. The future trends point towards – concierge services, butlers, children activities, spas, and resort tie-ins. They assume that the accommodations will be excellent and now DCs need to cater to a country club atmosphere lifestyle and experience where members can meet each other.

Kagehitokiri

just remembered i meant to ask - any thoughts on the last 2 panels?
- Product & Service Differentiation & Innovation/Extending The Value Proposition
- Mixed-Use Resort Opportunities

again, great info, thanks for posting all the details. :thumbsup:

DC4MS

Those were mainly PRC and fractional property presenters. I personally think mixing PRCs and fractonals are NOT a good mix with DCs. There was a palpable attitude between the two groups as the non-DC members could not understand why so many people would want to join a club vs buy a deeded property.

Answer = DCs offer better flexibility and better service.

Kagehitokiri

thats odd they would set up a confrontation like that.