docRCI Global Vacation Network - Corporate
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RCI Global Vacation Network - Corporate
RCI Global Vacation Network Kenneth N. May President & CEO For every kind of traveler. For every kind of trip. 2 Who We Are… Vacation Exchange For every kind of traveler. For every kind of trip. Vacation Rentals 3 Who We Are… Fee-for-service business model Typically serves as an intermediary, not a principal Matches supply and demand for non-hotel accommodations Global leader in leisure accommodations with access to about 400,000 leisure accommodations in more than 100 countries. Serving more than four million leisure-bound families a year Network of 30 vacation accommodation brands and 50 worldwide offices Vacation ownership condominiums Villas and cottages City apartments and second homes Fractional interest and private residence clubs For every kind of traveler. For every kind of trip. 4 Global Industry Size $36.0 Billion Vacation Exchange and Rentals is estimated to be $36 Billion in Annual Revenue Worldwide $35.7 Billion Rest of World Rental Europe Supports the $13 Billion shared vacation ownership industry + $0.3 Billion = Americas Exchange Timeshare/Vacation Exchange Vacation Rentals Combined Given the market size and our unique industry position, the opportunity to continue building a global leisure real estate network is significant. Sources:Vacation Exchange Industry data: Florida Regulatory Agency; Vacation Rental Industry data: based on the number of rental weeks from various local industry publications, multiplied by our best estimate of $800 average global total revenue per week. For every kind of traveler. For every kind of trip. 5 Vacation Exchange and Rentals -- Where We Are Global presence with over 50 offices in 35 countries For every kind of traveler. For every kind of trip. 6 Exchange RCI introduced concept of timeshare exchange in 1974 Provides vacation interval owners flexibility to exchange beyond home resort and system Owner contributes intervals (primarily timeshare) to exchange network Exchange company rates contributed intervals Exchange company offers owner vacation with comparable ratings Revenues derived through annual membership dues and exchange fees 71 percent of timeshare owners are members of exchange companies and 66 percent participated in exchange In 2005, approximately 5.3 million members completed over 3.5 million transactions Source of total membership and transaction data: Florida state regulatory filings For every kind of traveler. For every kind of trip. 7 Exchange $460 - $480 Million For every kind of traveler. For every kind of trip. 8 Exchange Customers Exchange members 3.4 million RCI members as of 9/30/06 Approximately two-thirds of total exchange members Similar demographic to vacation ownership industry demographics Well-traveled Baby boomers The median income is $74,000 for recent buyers and $81,000 among all owners Average age of recent timeshare buyers: 52 High consumer satisfaction among timeshare owners: 80% 2006 RCI retention rate: 90% More than 40% of all timeshare owners own more than one week of timeshare Source: ARDA for vacation ownership industry demographics For every kind of traveler. For every kind of trip. 9 Exchange Customers RCI Developers More than 4,000 resorts in more than 100 countries – from the largest developer to small niche players Traditional timeshare resorts to fractional private residences Economy to luxury accommodations Term: affiliation agreements typically 5 – 10 years Retain 99% of affiliate developers RCI services provided include: Exchange services Rental programs Sales table programs Club servicing Global advisory services For every kind of traveler. For every kind of trip. 10 Exchange Products RCI Weeks Owner buys seven-day period for a specific home resort Owner buys a fixed week or floating week booked within certain season based on the resort Owner deposits time with RCI each year Week exchanged for comparable week at another resort The Registry Collection World’s largest luxury leisure asset exchange program High-end vacation ownership, fractional, condo-hotels For every kind of traveler. For every kind of trip. RCI Points World’s first global points-based exchange offering for the timeshare industry, launched in 2000 Owner buys a fixed week or floating week booked within certain season based on the resort, and cedes that inventory to RCI for the term of their membership for Points Points allocated annually based on various factors (size of condo, resort location, quality, season, duration) Flexibility to use points as desired (length of stay, season, resort) Use points for airline tickets, cruises, car rentals, hotel rooms 11 Exchange Competitive Environment RCI is the largest timeshare exchange network in the world. Resorts 66% 34% Exchanges RCI Exchange Network 77% Interval International RCI Exchange Network 23% Interval International Sources: Exchanges per Florida Regulatory Agency for the most recent year reported ending 12/31/2005, and from company financial filings and Web sites as of 11/21/06. Based on information regarding the two major competitors in the timeshare exchange industry. For every kind of traveler. For every kind of trip. 12 Exchange Competitive Environment More resorts of every variety, everywhere that matters most. Comparison of RCI “Gold Crown” resorts to II “5 Star” resorts in key locations: Sources: RCI and II 2006 directories For every kind of traveler. For every kind of trip. 13 Exchange Competitive Environment Sources: RCI Combined Statement of Key Operating Statistics for the RCI Weeks Exchange Program, as of and for the year ended December 31, 2005; RCI Combined Statement of Key Operating Statistics for the RCI Points Exchange Program, as of and for the year ended December 31, 2005; Interval International Report of Key Operating Exchange Statistics as of and for the year ended December 31, 2005; Includes member-initiated cancellations. For every kind of traveler. For every kind of trip. 14 RCI Brand Value An RCI partnership adds value to megamega-brand developers and niche players alike Key findings of study include: Brands with higher awareness tend to have higher preference share RCI had 22% aided awareness vs. 8% for Interval International Eight in 10 timeshare owners aware of RCI RCI partnership added value to all developers included in the survey Preference share increased between 2 - 8 points RCI is the brand for timeshare - the industry’s preferred partner. Source: Chadwick Martin Bailey 2006 RCI Brand Assessment For every kind of traveler. For every kind of trip. 15 Vacation Rentals Market leader in European vacation rental homes and global vacation condo hotels Enables vacation property owners opportunity to rent when unoccupied Owner provides exclusive access for property utilization Rental company markets the product under various brands and channels, as needed, to drive occupancy for owner Rental company often provides key-holding and property management services on the owner’s behalf Revenues derived through commission on rental revenue and ancillary services provided In 2005, Wyndham Worldwide’s rental businesses generated over one million weeks of occupancy for owners For every kind of traveler. For every kind of trip. 16 European Rentals Market Leisure Travel – Major Source Markets % Total Trips Accommodations % Total Trips Lodging 66% U.K. 29% Germany/ Austria 32% Vacation Ownership Scandinavia 8% Netherlands 8% Italy 12% 1% Parks and Camping 10% France 11% Self Catering/Renter 23% 410 Million Trips Source: 2005 RCI estimates For every kind of traveler. For every kind of trip. 17 Rentals $490 - $510 Million For every kind of traveler. For every kind of trip. 18 Rentals Vacation Rentals Through more than 30 brands and 63,000 units, vacationers can choose to rent from among the following types of properties: Apartments Bungalows Campsites Castles Condos Cottages For every kind of traveler. For every kind of trip. Restored farmhouses Ski lodges Villas 19 Rentals Competitors Properties* RCI Global Vacation Network Global 63,000 Pierre et Vacances Europe 45,000 Interchalet Europe 20,000 Interhome Europe 19,000 ResortQuest North America 17,000 Hoseasons Europe 12,000 * Excludes posting services, bulletin boards, etc. Source: Company financial filings and Web sites as of 11/21/06. For every kind of traveler. For every kind of trip. 20 Rentals Customers Vacation renters Diverse in geography, demand, price points and destination Generally look for independent travel and non-hotel accommodations Consumer profile: Similar to timeshare owner profile Europe: Concentration in U.K., Germany, Netherlands, France, Italy U.S.: Key rental destinations – Florida; Branson, Missouri; Las Vegas; Williamsburg, Virginia Repeat customer rate: Approximately 45% Property retention: 80% For every kind of traveler. For every kind of trip. 21 Market Trends and Opportunities Market Trends Opportunities Developer Clubs Increased product benefits and flexibility for members Online travel agencies and bulletin boards Leverage inventory and network into e-space Shifting value proposition in leisure real estate market New developer models Resales / Reloads / Tri & Bi Intervals New exchange concepts Regional shifts in destination demand Leverage scale to balance inventory pool Response = Constant Priorities ENHANCE the Network’s Value Proposition EXTEND the Network’s Business Model EXPAND the Network’s Geography For every kind of traveler. For every kind of trip. 22 Differentiators and Summary Innovator for the timeshare industry/30+ year operating history RCI is the market leader and the premium brand in the timeshare exchange industry Segment leaders in vacation rental brands, generating a high number of repeat customers Long-term business partnering and relationships International portfolio, profits not dependent on one region High margins with annuity-like revenue streams — fee for service model Through established infrastructure and ongoing strategic investments, well prepared to sustain future growth Strong long-term growth prospects Enhance the network’s value proposition Extend the network’s business model Expand the network’s geography For every kind of traveler. For every kind of trip. 23 Attitash Mountain Village Bartlett, New Hampshire For every kind of traveler. For every kind of trip. 24 Cypress Pointe Orlando, Florida For every kind of traveler. For every kind of trip. 25 Mayan Palace Nuevo Vallarta Nuevo Vallarta, Mexico For every kind of traveler. For every kind of trip. 26 Crystal Mountain Thompsonville, Michigan For every kind of traveler. For every kind of trip. 27 Quinta Real Aguascalientes, Mexico For every kind of traveler. For every kind of trip. 28 The Whiteface Lodge Lake Placid, New York For every kind of traveler. For every kind of trip. 29 Landal Esonstad Anjum, Netherlands For every kind of traveler. For every kind of trip. 30 Novasol Lorgues, France For every kind of traveler. For every kind of trip. 31 Novasol Flugonfjell, Norway For every kind of traveler. For every kind of trip. 32 Novasol Andratx, Spain For every kind of traveler. For every kind of trip.
