LETTER FROM CHAIRMAN

Thursday, June 24, 2010

Over the years, I have watched the timeshare operating model closely. I have seen it grow, evolve and redefine how people look at forward investments for sustained gains. Timeshare, as a concept is a clear win-win format, if the promoters run the business with ethics, transparency and customer commitment.

Over the years, I have also seen something very interesting evolve. I have seen the timeshare model extended to other service offerings where the customer gets the same rights, privileges and benefits. Today, you have train holidays, luxury car rental, yacht-share, and timeshare plans that even cover the use of personal jets.

What I like about these business offerings is thinking that has emerged from the customer’s point of view.

Trainshare eliminates bus or air travel and your holiday begins the moment you board the train. It aims to give the customer a whole new basket of experiences. Luxury car rental gives customers access to some of the best cars money can buy, without having to pay the entire price tag. Users don’t have to worry about maintenance and insurance, which is a benefit in itself. Yachtshare saves customers the prospect of high ownership costs and gives them an experience that’s clearly above the ordinary.

What is also interesting here is that all these timeshare models are working, and working well. They are making profits and enjoying a growing customer base. So, is there a lesson to learn from these examples, especially with our time-tested resort owner model?

I thought I would outline some pointers…

• There is a need to innovate on a continuous basis. After a while, competition gets everybody onto level ground, offering practically the same basket of services. While the location of the resort is a differential, it is extremely useful to innovate and give prospects more reasons to choose you.
  
  
• There is a need to constantly review the levels of service delivery. By and large all resorts these days are fairly fine-tuned on service delivery, but here again there is what I call a leveling point, above which lies a clear competitive advantage.
  
  
• The centre-point of service in the hospitality industry is  personalization and while things are encouraging in the timeshare industry, there is a need to explore new ways of getting closer to the customer.
  
• Coming back to what I started this note with, the timeshare formula is a very good platform to build and sustain relationships with customers. If other industries are using it to advantage, it makes sense for us to seek new facets of innovation and make it work harder.
  
  
• This is something that can benefit us in three clear ways. More customers. Increased business volumes. And customers that actually benefit from the engagement.