C Creativity and Innovation

C Outlook 2013

C The dawn of a new era Royal Resorts® and RCI®

Information about the Vacation Ownership Industry First Edition 2013.

by Eduardo Kastika

2 RCI VENTURES

The world is witness of our leadership.

More than

4 million Members

More than 4000 Affiliated Resorts

worldwide

More than 35 years working for the vacation

ownership industry

A portfolio of possibilities at your fingertips.Give your members instant credit.

Drive growth, profitability and positioning of your business.

Show all the benefits of your resort through a spectacular video.

Provide your members with the highest and most exclusive level of RCI membership.

Use the latest technology for your sales presentations.

3RCI VENTURES

WELCOME

Dear Affiliate,

We just concluded the first quarter of 2013, a year that promises as many opportunities as challenges, and will test our ability to generate new business.

If we review the es-timates from major international economic

organizations, the outlook for this year suggests that the global economy will experience moderate growth. The International Monetary Fund (IMF) projects that global growth will increase from 3.2% in 2012 to 3.5% this year, while the Economic Commission for Latin America and the Caribbean (ECLAC) estimates that our region will show growth of around to 3.8% in 2013, driven primarily by the recovery of the Argen-tine and Brazilian economies.

Tourism performance in 2012 demonstrated that it is a strong sector that has managed to stay the course despite adverse economic circumstances. The World Tourism Organization (UNWTO) forecasts that global tourism will maintain its growth rate this year, a figure between 3% and 4%.

Meanwhile, the timeshare industry showed stabil-ity in 2012, with conservative sales indexes in the sale of intervals in Latin American resorts, recording over 92,000 weeks sold to regional buyers and over 160,000 weeks sold to buyers from other regions, representing an increase of 8.5% compared to last year’s results.

In 2012, developer and investor confidence prevailed, benefiting the vacation exchange business, as 94 new affiliations to an exchange company were recorded in Latin America and the Caribbean.

This year we expect Mexico and Argentina to show conservative growth in timeshare sales, while Brazil is expected to continue growing at a faster rate. This growth will be supported by the upcoming events to be held in the South American nation: The World Cup in 2014 and the 2016 Olympic Games.

Ricardo Montaudon CorryPresident and Managing Director

RCI® Latin America

Overall, 2013 presents us with an encouraging outlook, but the success of the coming year will greatly depend on our ability to seize growth opportunities.

We must be creative and reconsider how we have done things in the past to better understand and meet the needs of our market, which has become increasingly demanding and has come to expect added value. I invite you to stay positive in 2013, which will help us achieve our goals and continue to strengthen our indus-try.

The world is witness of our leadership.

More than

4 million Members

More than 4000 Affiliated Resorts

worldwide

More than 35 years working for the vacation

ownership industry

A portfolio of possibilities at your fingertips.Give your members instant credit.

Drive growth, profitability and positioning of your business.

Show all the benefits of your resort through a spectacular video.

Provide your members with the highest and most exclusive level of RCI membership.

Use the latest technology for your sales presentations.

4 RCI VENTURES

Geoff Ballotti President and CEO

Gordon Gurnik President

Ricardo Montaudon President and Managing Director Latin America

Juan Ignacio Rodríguez Senior Vice President of Business Development Latin America

Eugenio Macouzet Senior Vice President and Managing Director Caribbean

Ana Acevedo Vice President of Special Programs and Director of The Registry Collection Latin America

Alfonso Heredia Vice President of Operations Latin America

Jorge Fernández Vice President of Finance Latin America

Gabriel Hernández Vice President of Legal Affairs Latin America

Carlos Pérez Vice President Revenue Management Latin America

Jesús Calahorra Director of Business Development Cancun – Mayan Riviera

Gustavo de la Serna Director of Business Development Mexico and Central America

David Fuentes Director of Tourism Oriented Real Estate Consulting and Advisory Latin America

Gonzalo Seemann Director of Strategic Accounts and Marketing Latin America

Angélica Hernández Senior Manager of Business Development Mexico – North Pacific

Miguel Ángel Loya Senior Manager of Business Development Cabos

Jannyn Solís Marketing Manager Latin America and the Caribbean

Mario Ocampo Editing

Mónica Reyes Graphic Design and Production

TraduService Translation

Latin America and the Caribbean RCI® Offices Directory

RCI® Latin America Regional HQ Horacio 1855 – PHCol. Los Morales Polanco11510 México D.F., México(52-55) 5283-1000latinoamerica@latam.rci.com

RCI® Mexico - Puerto VallartaBlvd. Francisco Medina AscencioPlaza Neptuno Locales C7 y C8, Marina VallartaPuerto Vallarta, Jalisco48354 México(52-322) 221 - 1365angelica.hernandez@latam.rci.com

RCI® Mexico - Los CabosCamino a la Plaza 180-B, Local 2Fraccionamiento El PedregalCabo San Lucas, BCS23453 México(52-624) 143-4720miguel.loya@latam.rci.com

RCI® CaribbeanAve. Bonampak Lote 4B-2 SM 4-APlaza Nayandei, Torre Sol,Oficinas 101-105, 77500 Cancún, Quintana Roo(52-998) 887-1822latinoamerica@latam.rci.com

RCI® ArgentinaParaguay 1178 Piso 10C1057AAR Buenos Aires,Argentina(54-11) 4819-2900resortarg@latam.rci.com

RCI® Brazil Alameda Lorena, 427 - Conjunto 56Jd Paulista - Sao Paulo - SPCEP: 01424 - 000(55-11)2177-0777

RCI® ColombiaCarrera 23 No. 124 - 87 Torre II Oficina 802 Bogotá, Colombia(571) 621-4939grouprcicolombia@latam.rci.com

RCI® VenezuelaAv. San Felipe, Edif. Centro Colinasa, Piso 8, Oficina 81, La Castellana, Caracas 1060, Venezuela. (58-212) 276 - 6522venezuela@latam.rci.com

RCI® UruguayZonamerica - Ruta 8 Km 17,500 - Local 12691600 Montevideo, Uruguay(598-2) 518-4100uruguay@latam.rci.com

5RCI VENTURES

CONTENT

Market OutlookWe don’t sell products - we offer experiencesBy Eduardo Kastika Outlook 2013 Industry NewsThe dawn of a new era: Royal Resorts® and RCI® Vantage Point The World Tourism Organization’s global Code of Ethics RCI® and Viajes El Corte Inglés Inside RCI®RCI® and The Academics Reliable and timely information AffiliationsNew Affiliates! InnovationsInnovations that enhance the sales experience OnlineMexico Passport TORE ¡New Section!At the forefront of Tourism Oriented Real Estate Consult-ing Emporium Vacation Club EventsUpcoming industry events

RCI VENTURES

P.6

P.8

P.10

P.12

P.14

P.16

P.18

P.19

P.28

P.30

P.32

P.36

P.38

In accordance with the provisions of your Affiliation Agreement and the Procedures Manual, you have recei-ved this publication because you are an RCI® Affiliate with a current Affiliation Agreement. Please contact your Account Manager with any concerns or comments using the telephone numbers indicated in your Affi-liation Agreement and Procedures Manual.

CONFIDENTIALITY NOTICE: The information contained in this publication is confidential and may contain privileged information. The information published herein is for the exclusive use of the person or entity for whom it is intended and is regulated in accordance with the Affiliation Agreement that you or the company that you represent has signed with RCI® and/or the Procedures Manual. All persons or entities other than the intended recipient are prohibited from in any way using, reviewing, disseminating, forwarding, distributing, copying or in any other way distributing this information. If you received this notice by mistake, we kindly request that you call the sender. All material published in this publication is the property of or has the ne-cessary permissions and authorizations of use required and/or applicable to RCI® 2013. All Rights Reserved.

P.15

6 RCI VENTURES

We don’t sell products we offer experiences

But what does that mean?

By: Eduardo Kastika

Eduardo Kastika is the foremost leader in creativity and innovation in the Latin American market. His conferences and mega-conferences, with a successful 20 year track record, have changed his audience members’ professional lives and the way they approach business. Currently, Eduardo Kastika is a consultant in innovation, generating high impact results in business. http://www.kastika.com/

MARKET OUTLOOK

7RCI VENTURES

1.Experiences rather than products and services

“We don’t sell products, we sell experiences.” Similar catch phrases are very common. The concept can be illustrated with the following examples: Starbucks doesn’t just sell coffee, it sells an experience. And coffee is just one of the compo-nents.

The ambiance, aromas, service, music, and public opinion, among others, all play a part. Cirque du Soleil is a typical example of experience in service, as is Zappos, for online business.And, of course, filling in Google’s search bar is also an experience.

2.The Anatomy of an Experience

So, what does “experience” really mean? I am going to explain this as simply as possible.

On a very basic level, having an experience is to feel something change.

(If you like, you may use the word “perceive.” It all depends on what you think makes the definition work best).

If something changes, but we do not feel it: there is no experience.Example: No matter how obvious the transforma-tion, many people do not see technological change as an experience.

If we sense that something has changed, even if the change is nothing extraordinary: there is an experi-ence.

Example: During the first four classes of our new French course, for example, our knowledge of the language doesn’t change that much. But we already begin to feel as though we’re a part of the “French speaking” world.

To feel something, without being aware of signifi-cant changes, does not exactly imply that we’ve had an “experience.”Example: We go to the dentist for a check-up, we

satisfy our appetite by eating a sandwich, we call the locksmith to fix a broken lock, etc.

These are not necessarily “experiences” if we only engage in them in terms of “I have to, because if not...”

3.Experience: To be aware that some-thing is changing

In order to have an experience, we must be aware of something changing. We must be involved and present while the change occurs.

In this respect, it is essential that we recognize change to fully appreciate an experience: in our bod-ies (a good SPA session), in our minds (a workshop that changes our way of thinking), in our spirits (a play that moves us), or in any other dimension where we might sense a change.

There are simple experiences and there are complex experiences. The most important thing to remember is that experiences are what help us make sense of our reality.

SummaryYou create an “experience-based” business when you do everything possible to ensure that your product or service sets in motion a process of change that your public recognizes, values, and perceives as significant.

8 RCI VENTURES

OUTLOOK 2013The International Monetary Fund (IMF) announced in its World Economic Outlook Up-date (WEO Report) that economic growth will strengthen gradually this year once the restrictions imposed on the global economy since 2012 begin to yield.

The IMF also reports that the risks of a crisis in the Eurozone and in the U.S. have de-creased and that the stimulus packages to Japan will aid the country in overcoming the temporary recession in which it is immersed. As for emerging market and developing economies, the IMF indicates that the implementation of effective policies has facili-tated a moderate upturn in performance.

Based on this outlook, the IMF estimates that global growth will increase from 3.2% in 2012 to 3.5% this year. Growth that, while moderate, at least does not project a negative outlook.

Specifically in Latin American and Caribbean countries, the Economic Commission for Latin America and the Caribbean (ECLAC) predicts an upturn in the economic growth of the region despite the uncertainty that persists worldwide.

According to ECLAC’s report, Preliminary Overview of the Economies of Latin America and the Caribbean 2012, the region will experience around 3.8% growth this year, primarily driven by the recovery of the Argentine and Brazilian economies, as well as buoyant domestic demand in several Latin American countries as a result of improved labor indicators, the increase in bank credit to the private sector, and commodity prices that, despite external uncertainty, will not suffer significant drops.

MARKET OUTLOOK

9RCI VENTURES

As for the Caribbean, ECLAC predicts that the countries in this region will continue to show fiscal fragility, requiring domestic reforms in this area as well as external support.

Alicia Barcena, Executive Secretary of ECLAC, expressed her opinion regarding the overall economy of the region, stating that “the chal-lenge remains in Latin America and the Caribbean to increase and stabilize the growth of invest-ment, and not to rely solely in consumption as a means to help spur structural change with equal-ity, incorporating technical progress and ensuring sustainable growth.”

In regards to tourism, according to the latest edition of the World Tourism Organization’s (UNWTO) World Tourism Barometer, international tourist arrivals registered a record growth of 4% in 2012, exceeding one billion tourist arrivals.

America reported an increase of 6 million arrivals, reaching a total of 162 million. The top destina-tions in the region were Central America (+6%) followed by South America (4%), while the Carib-bean (+4%) registered improved results over the last two years.

The General Secretary of the UNWTO, Taleb Rifai, declared that “2012 was a year of economic insta-bility around the world, especially in the Eurozone.

However, international tourism managed to stay the course.” Rifai added “Tourism is, therefore, a pillar which governments around the world should support as part of the solution to stimulate eco-nomic growth.”

For 2013, the UNWTO estimates that global tour-ism growth will continue at a slightly slower pace than the rate achieved last year (between +3% and +4%).

Regarding to the vacation ownership industry, in 2012 the Latin American markets showed stability despite the unstable economic outlook. The esti-mated total sales of intervals to regional buyers registered upwards of 92,000 weeks, while sales of intervals to buyers from other regions exceed-ed 160,000.

In terms of the supply of resorts affiliated to an exchange company in the Latin American and the Caribbean regions in 2012, Mexico continued to lead with 35 new affiliations, followed by Brazil, a country that has experienced interesting growth during the last few years, adding 16 new resorts.Forecasts in timeshare sales for 2013 contemplate moderate growth for Mexico and Argentina, and further growth for Brazil.

10 RCI VENTURES

The dawn of a new era Royal Resorts® and RCI®

From now on, Royal Resorts® owners and RCI® mem-bers in Mexico will be able to improve their vacation experience thanks to this major chain’s affiliation to RCI®.

As a result of the recent Affiliation Agreement signed by two of the top players in Mexico’s tourism indus-try, RCI® members, who wish to have a unique vaca-tion experience in Cancun and the Riviera Maya, now have access to six fantastic resorts operated by Royal Resorts® in the region. Regarded as some of the most spectacular and comprehensive accommodation op-tions available, the resorts that have been affiliated to RCI® are: The Royal Cancun®, The Royal Mayan®, The Royal Islander®, The Royal Caribbean®, The Royal Sands®, and The Royal Haciendas®.

What’s more, this Affiliation Agreement will give Royal Resorts® owners access to the RCI’s vacation exchange network, considered the world’s largest, with over 4,000 affiliated resorts in about 100 countries world-wide. They will also enjoy more options when planning their vacations, as they’ll have access to all of RCI’s

travel advice and services, including the latest in on-line search, reservation, and browsing technology and tools, like RCI TV®, that will enable them to turn their vacation into unforgettable, fun-filled and relaxing experiences of a lifetime.

“Our members are our most valuable asset and will always be our greatest priority when planning for the future. Our alliance with the RCI® family links us with an exchange provider that meets our strategic needs for the future and enhances the vacation experiences that we can offer to our members,” commented Kemil Rizk, President and CEO of Royal Resorts®.

“It is a great honor to welcome Royal Resorts®, their beautiful properties, and their owners as new members of the RCI® family. Their corporate values of integrity, trust, responsibility, and respect will be the foundation of a long-lasting and beneficial relationship for both companies in these important and thriving tourism and vacation ownership industries,” stated Ricardo Mon-taudon, President and Managing Director of RCI® Latin America.

INDUSTRY NEWS

11RCI VENTURES

Founded in Cancún in 1975, Royal Resorts® is a pioneer in the Mexican tourism industry and is considered one of the leading companies in the international vaca-tion ownership industry. Since then, the company has built a reputation by offering exceptional service and superior quality at its family resorts. Royal Resorts® has more than 80,000 member families in 51 countries and independent surveys report that their member satisfac-tion rate is greater than 95% - one of the highest in the industry.

12 RCI VENTURES

Forty years after entering the Mexican tourism in-dustry and helping create the timeshare industry in Cancun, Dr. Kemil Rizk, president and CEO of Royal

Resorts®, is enjoying the view from the topBy Catharine Fleury

Photography by Gregory Allen

Shortly after he received his Ph.D., Kemil A. Rizk was of-fered a teaching position at Loyola University in Chicago. He had the right credentials: a civil engineering degree from the Instituto Tecnológico y de Estudios Superiores de Monterrey in Mexico, a master’s degree in science and now a doctorate from Northwestern University. But the then 24-year-old Rizk turned down the offer.“I wanted to return to Mexico,” he says. “The academic life was not for me.” It was a fortuitous decision. It was 1973, and as Rizk would soon find, the tourism industry in Mexico was on the brink of a new era. While interviewing for consult-ing jobs in Mexico City, Rizk learned that the federal government was planning a tourism destination called Cancun, and that the executive in charge of the project was hiring.“You rarely get the opportunity to be involved in the creation of a new city, with marketing, engineering, economic and social challenges, where a new population will live and prosper,” Rizk says. “I felt that my back-ground and knowledge would serve well there.”He was hired as a business development manager for the National Trust Fund for Tourism Development (FO-NATUR), the federal agency spearheading Cancun. “It was my job to find investors who would be interested in putting money in what was at that time a project in the making but that could yield much potential if done right.”

Right place at the right timeRizk’s experience with FONATUR coincided with a significant development in the evolution of Mexican tourism: the rise of the master-planned vacation desti-nation. “There was a lot of skepticism that a government organization could be really successful,” Rizk says. “But time would prove the skeptics wrong. What started as a dream of central bankers—new, master-planned tourist destinations— turned out to be an important contributor of jobs, foreign exchange earnings and regional develop-ment for Mexico.”

Those early years with FONATUR marked the start of a distinguished career in tourism that has spanned four decades of public- and private-sector work. Rizk’s most notable achievements include developing a National Tourism Plan for Mexico (1978–’79), a five-year stint as president and CEO of FONATUR in the 1980s (he over-saw the initial phase of the development of Bahías de Huatulco in Oaxaca, the agency’s fifth master-planned destination) and, most recently, taking the helm of Royal Resorts when he became president and CEO in May 2012.Rizk is no stranger to Royal Resorts. He cofounded the company in the mid-1970s and returned as a board director and member of the executive management team in the late 1980s. Today Royal Resorts is one of the largest developers of vacation-ownership projects in Mexico, having 3,000 employees and more than 80,000

13RCI VENTURES

members. It also recently affiliated to RCI for exchange services. Asked how it feels to take charge of the company he helped found more than 35 years ago, Rizk says it is extremely satisfying to lead an organization that works so hard to maintain—and exceed—the high standards for which it has come to be known. All six Royal Resorts won TripAdvisor Travelers’ Choice Family awards in 2012, and one of them, The Royal Haciendas®, recently made the 2013 Travelers’ Choice list of the “Top 25 Hotels in Mexi-co.” At the same time, Rizk says, “I feel a great sense of responsibility for keeping the company on the right track and perpetuating the success we have enjoyed all these years.”

Then and nowForty years after entering the Mexican tourism industry, Rizk is once again witnessing the dawn of an era. “When FONATUR began developing its master-planned tourism destinations, tourism of all kinds—business, family, indi-vidual travel—was taking off, with the introduction of the commercial-jet fleet,” he says. “Those first developments targeted the important beach and sun segment and con-tributed considerably to the infrastructure that is needed to sustain tourism in Mexico today.”

There is now a movement to target other segments in ad-dition to the beach-and-sun destinations, Rizk says. “The Ministry of Tourism has launched a diversification strategy to develop the vast potential of the country’s resources: the rich cultural heritage of our beautiful colonial cities, towns and festivals, and the natural areas that ecotourism can help preserve. I think they are right to do this.”Rizk also sees a change in the tourists. Whereas the indus-try once focused on international tourism, homegrown tourism is now taking the stage. “As Mexican per capita income has increased, so has the possibility for Mexicans

to enjoy the enormous natural and cultural resources our country has,” he says. “In recent years national tourism has taken a more important role, and specific strategies are being implemented to further develop it.”

Mexico’s timeshare industry has also changed. “In the be-ginning it was a small number of opportunistic resort de-velopers—many of whom did not actually build the resorts — coming in, selling the product and leaving quickly,” Rizk says. “They didn’t stay involved; they didn’t care about the customer.” Fast-forward to today, when “industry players design, develop, sell and manage some of the best resorts in the world” and Mexico has the second-largest vacation ownership market after the United States.

Royal Resorts is a shining star in that market. Construc-tion of its next resort, Grand Residences by Royal Re-sorts®, isn’t even complete, and the accolades are already rolling in: The property was named Best Fractional Resort in Latin America and Best Fractional Resort Worldwide by Perspective magazine at the 2013 GNEX Convention and will be the first fractional to affiliate with Leading Hotels of the World® when it opens in December. “I am most proud of the caliber and type of organization that Royal Resorts has become over all these years,” Rizk says. “The way we treat our members, the work ethic of our employ-ees and the respect we give the environment—these are the principles and values that guide our decision making.”

Word to the wiseAsked his advice for those just starting out in the tour-ism industry, Rizk offers this: “You need to define very clearly the segment and niche market you want to enter. All segments and business areas are very competitive. It is an industry that is both capital and labor intensive and, to make things even more complicated, has inventory that depletes every day—a room not used is a lost room for

revenue. You need to enter the industry with the quali-fied people who have had the experience. Do not go in undercapitalized just to find out later that your equity is gone.”And for those interested in shared ownership? “The same comments apply—and I would add a few more: Shared ownership is more complex than it seems at the outset. It requires high levels of cash flow, creative financing, specialized consumer servicing, strong op-erating skills and very specialized sales and marketing with very high costs.”Loyola was right: Rizk is an excellent teacher.

14 RCI VENTURES

THE WORLD TOURISM ORGANIZATION’S GLOBAL CODE OF ETHICS

The signing of the UNWTO’s Global Code of Ethics held in Campeche, Mexico, in October 2012.

INDUSTRY NEWS

Ricardo Montaudon, President and Managing Director of RCI® Latin America, along with key executives in Mexico’s private tourism sector, signed a commitment to the World Tourism Organization’s Global Code of Ethics, which acts as a guide for responsible and sustainable tourism devel-opment.

The Global Code of Ethics is based on ten fundamental principles that encompass the economic, social, cultural, and environmental aspects of the tourism industry. Its main objective is to maximize profits within the sector while minimizing any possible negative impact.

Joining RCI® as signatories of this commitment were: the Mexican Resort Development Association (Asociación Mexicana de Desarrolladores Turísticos, AMDETUR), Grupo Palace Resorts, Aeroméxico, AM Resorts, Expo Mayoristas (Asociación de Empresarios Mayoristas), the Executive Women’s Association of the Mexican Tourism Industry (Asociación Femenil de Ejecutivas de Empresas Turísticas), the Campeche Hotel and Motel Association (Asociación de Hoteles y Moteles de Campeche), the Mex-ican Hotel and Motel Association (Asociación Mexicana de

Hoteles y Moteles), the Mexican National Confederation of Chambers of Commerce, Services, and Tourism (Con-federación de Cámaras Nacionales de Comercio, Servicios y Turismo); Hoteles Misión, the Mexican National Con-federation of Tourism (Confederación Nacional Turística), the Campeche Council of Tourism (Consejo Empresarial Turístico de Campeche), and the Mexican Federation of Estates (Federación de Haciendas de México).

The event was witnessed by the former Federal Secre-tary of Tourism, Gloria Guevara Manzo; the Governor of Campeche, Fernando Ortega Bernés; and the General Secretary of the World Tourism Organization (UNWTO), Taleb Rifai, who affirmed the importance of the business sector’s involvement in promoting responsible tourism.Guevara Manzo emphasized that tourism only has mean-ing when it holds full respect for human rights and the environment.

The principles outlined in the UNWTO’s Global Code of Ethics can be found online at: http://ethics.unwto.org/en/content/global-code-ethics-tourism

15RCI VENTURES

Strategic Alliance to Improve the Vacation Experience

On a global level, RCI’s business strategy has always been distinguished by our constant efforts to improve our members’ vacation experience. RCI® members in Mexico now have guaranteed access to this incredible added value, thanks to a strategic alliance established between RCI® and Viajes El Corte Inglés.

This strategic alliance will provide RCI’s travel agency, RCI Travel® with special benefits such as expanding the num-ber of travel alternatives and options available to RCI® members in Mexico and helping them to create unforget-table vacation experiences.

Included among these new options are: a greater number of flight alternatives as well as special promotional prices, and added availability during peak seasons; reservations for packages and hotels anywhere in the world; improved rates for additional travel services such as rental cars, insurance, transfers and excursions; attractive pricing for theme parks worldwide; competitive rates for cruises; the

Viajes Assist Card for help with any travel needs; and, as if that weren’t enough, convenient, interest-free monthly payments.

RCI Travel’s new menu of options will provide RCI® mem-bers in Mexico with interesting alternatives and improve-ments and is made possible due to Viajes El Corte Inglés’ vast knowledge and experience in the market after years of successful and acclaimed activity in the global tourism industry.

With presence in 15 countries worldwide and 11 years in Mexico, Viajes El Corte Inglés is an established com-pany that operates under the principles of personalized service, quality, commitment, safety, and integrity. These guiding principles will seamlessly integrate with RCI’s world-renown business strategy and 35 years of experi-ence in the global vacation industry.

From left to right: Sergi Martín (Commercial Director El Corte Inglés), Jordi Llorens (Manager Director Mexico, NLATAM & Caribbean El Corte Inglés), Ricardo Montaudon (President and Managing Director RCI Latin America), Jesús Nuño de Rosa (CEO of Viajes El Corte Inglés), and Alfonso Heredia (VP of Operations RCI Latin America).

16 RCI VENTURES

With a strong commitment to promoting tourism in Mexico and encouraging the new generations, RCI®, through its important social responsibility initiatives and in conjunction with Universidad Panamericana, implemented the project “One Heart, One Voice, One Mexico.” A project in which approximately 100 seventh semester undergraduate students of Management and Marketing, developed different social media strategies for a competition designed to promote Mexico as a tourist destination in the U.S. market social network.

Throughout the project, which began nearly a year ago, students received advice and counseling from RCI®, in order to bring them closer to the needs of the U.S. market. The students also received their profe-ssors’ instructions for the academic structure of the marketing plan. The project was divided into different phases, the last of which culminated with the selection of three teams that went to RCI’s facilities to present their projects to Ricardo Montaudon, President and Managing Director of RCI® Latin America; Juan Ignacio Rodriguez, Senior Vice President of Business Develop-ment RCI® Latin America; Ana Laura Acevedo, Vice President of Special Programs RCI® Latin America; as well as the company’s senior executives.

During this last phase, the winning team was selected: Ana Daniela Gutierrez Ayala, Melisa Suarez Llorente, Mariana Sánchez de Tagle Salinas, Jose Guillermo Hume Alarcon, and Alfredo Garza Lopez, who traveled in March to the corporate headquarters of Wyndham Worldwide, accompanied by their career director Dr. Luis Mario Cortes, and the RCI´s Latin America’s Cor-porate Communication team. This trip was planned in

order to present the project “Mexico Destination” to Steve Holmes, Chairman and CEO of Wyndham World-wide; Mary Falvey, Executive Vice President and Chief Human Resources Officer Wyndham Worldwide; Geoff Ballotti, President and CEO, Wyndham Exchange and Rentals; Gordon Gurnik, President RCI®; Phil Brojan, SVP RCI® Global Marketing; Ciara Sisk, SVP Human Re-sources; and Paul Cash, Legal Executive Vice President, General Counsel Secretary.

The mid-morning meeting with key players in the tourism-oriented real estate industry and the vacation exchange industry was highly productive and satisfy-ing. With a dynamic spurred by youth and experience, views were exchanged about the new trends in social networks, both the current and future state of tourism in Mexico, as well as the vision of the new generations.Undoubtedly for RCI®, creating closer ties with the academic field is critical in order to be able to involve new talent in learning about the benefits of the tou-rism business, the importance of vacation exchanges, and the world of employment opportunities that the industry has to offer, as it is fundamental for the proper education of promising new talent, who will be work-ing in our industry in the future.

RCI® supports the Tourism-Oriented Real Estate industry in Mexico with new

university talents

INSIDE RCI®

17RCI VENTURES

Today, more than ever, RCI® is committed to providing strategic and positive initiatives that help promote tour-ism in Mexico, not only to benefit new generations but the entire country.

Through new ideas from more than 100 young university students, we can see how passion, heart, and a unified voice come together when working for the country, proving that Mexico offers everything: Culture, Cuisine, His-tory, Entertainment, Fun, Service, Quality, and, perhaps most importantly, people who pour their hearts into their work.

RCI® and The Academics, united to promote tourism in our country.

From left to right: Ana Daniela Gutiérrez, Gonzalo Seemann, Alfredo Garza, Geoff Ballotti, Melisa Suárez, Mary Falvey, Phil Brojan, Mariana Sánchez, Steve Holmes, José Guillermo Hume, Mario Luis Cortés, José A. Villavicencio, Ciara Sisk, Gordon Gurnik and Paul Cash.

18 RCI VENTURES

These days, access to reliable, high quality information makes the differencebetween simply going on vacation and enjoying an unforgettable vacation experience. To make the best decision, RCI® members need in-depth information about all of the relevant aspects of the tourist destination ahead of time, not to mention the amenities, services, and ad-vantages that RCI® affiliated resorts have to offer, and the prices and rates of other travel services.

With that in mind, and in keeping with its mission to create unforgettable vacation experiences, RCI® set out to compile and update all of the information of affiliated resorts and destinations to ensure mem-bers are even more confident and certain of their decisions when choosing and confirming their vacations.

This significant and tremendous effort, which RCI® initiated some time ago, now makes it possible for members to find information about most of the affiliated resorts and tourist destinations online at www.rci.com. For the vacation guides, this information is now available on the “Guide Portal” website. What’s more, the updated information is also used to send notifications to RCI® members and fuel the platform for RCI’s Endless Vacation Rentals (EVR).

Updated content is available in English, Spanish, and Portuguese and includes: relevant details about the destination, notable aspects of the resort, descriptions of the units and amenities, instructions on how to get to the resort, informa-tion about rates for the “All Inclusive” program, check-in and check-out times, benefits of the pre-paid “All Inclusive” program, and much, much more.

Consistent with RCI’s commitment to generate more business for its partners and affiliates, this compilation of information confers significant benefits, as it permits an increase in the number of confirmations, pro-vides members with user-friendly access to clear and concise informa-tion to help them make the best decisions, and reduces check-in issues, as well as many other benefits. With all this, RCI® contributes to the creation and strengthening of bonds of loyalty between members and the affiliated resorts, which is a cornerstone of creating an unforgettable vacation experience.

RELIABLE AND TIMELYInformation MEXICO CENTRAL AMERICA SOUTH AMERICA

INSIDE RCI®

19RCI VENTURES

Hotel Boca Jr.

Hotel Farallon

We are pleased to welcome RCI’s newest Affiliated Resorts in Latin America.

MEXICO CENTRAL AMERICA SOUTH AMERICA

NEW AFFILIATES

•Located just 30 minutes from the Ezeiza Airport •85 rooms with spectacular views •Personalized butler service•Spa, fitness center and heated indoor swimming pool•Guided tours of the Boca Juniors Museum•Two restaurants offering both international and authentic Argentinian cuisine

Buenos Aires, Argentina

• Offers a range of rooms and apartments for 2, 4 and 6 people•Located just 150 meters from “ski in” and “ski out” trails •Heated swimming pool and sauna•Ski equipment available for rent•Superbly situated in one of Argentina’s most iconic alpine ski destinations

Caviahue, Argentina

AFFILIATIONS

20 RCI VENTURES

Aldeia Das Aguas – Imperium

Aldeia Das Aguas – Quartier

Dorandia, Barra do Piraí

Barra do Pirai, Rio de Janeiro

•Rated the top water park in Rio de Janeiro•Boasts the world’s largest water slide (almost 50 meters high) •192 apartments featuring the highest quality hotel architectural standards•Luxury restaurant offering incredible local and international cuisine •First-rate athletic facilities, massage rooms, fitness center and game room

AFFILIATIONS

•Pre-sale resort located 120 kilometers from Rio de Janeiro•An integral part of the Aldeia Das Aguas Park Resort•Three thousand square meters are dedicated exclusively to a swimming pool complex within the water park •A sauna, restaurant and convention center are all available on site

BRAZIL

21RCI VENTURES

•Rated the top water park in Rio de Janeiro•Boasts the world’s largest water slide (almost 50 meters high) •192 apartments featuring the highest quality hotel architectural standards•Luxury restaurant offering incredible local and international cuisine •First-rate athletic facilities, massage rooms, fitness center and game room

Hotel Fazenda Boa Luz

Iracema Residence Service

• Located in one of the best natural sanctuaries for sea turtles •53 air-conditioned rooms •Breakfast buffet offering Brazilian specialties and international cuisine •Ideal locale for activities such as horseback-riding, paddle boating, bird watching and slides •Located just 9 kilometers from Santa Maria International Airport

•Its central location makes it the perfect choice for travelers on business or pleasure •Offering 132 fully furnished apartments•Complete with sauna and steam room, fitness center and swimming pool •Conference Center with 100 person capacity

Aracaju, Sergipe

Fortaleza, Ceara

22 RCI VENTURES

Jardim Atlantico Beach resort

Malui Manso Late Golfe & Resort

• Perfect for family vacations •Sauna, swimming pool, restaurants, lounge bar, swimming pool with slide and Kids Club•Wi-Fi in common areas•Guided tours of nearby attractions, scuba diving and tours through cocoa plantations and other historic sites •Located 4 kilometers from Ilheus airport

• Located near Lago de Manso, one of Brazil’s lushest tropical landscapes •Perfect for fishing and water sport enthusiasts •Nearly 3,000 square meters dedicated to outdoor activities: swimming pool, tennis courts, soccer field, kids club and golf course • 244 units available

Ilheus, Bahia

Chapada Dos Guimaraes, Mato Grosso

AFFILIATIONS

23RCI VENTURES

Hotel Arena Blanca

Arenas del Mar Resort

• Isla de San Andres boasts one of the Western Hemisphere’s largest coral reefs •A park and pool for children make it the perfect destination for family vacations•Nightly shows will delight both young and old•La Terraza Restaurant offers regional and international specialties

•Located on Playa Miramar, one of the most beautiful beaches on the coast of Tamaulipas •The perfect place in the Gulf of Mexico for a wonderful vacation or for corporate events •Fully furnished suites and rooms•Beach Club situated amidst the lush flora native to Tamaulipas •The restaurant offers a variety of seafood fresh from the Tamaulipan waters

Isla de San Andres

Ciudad Madero, Tamaulipas

COLOMBIA

24 RCI VENTURES

Azul Ixtapa Grand

Almar Resort Luxury All Suites & Spa

• Located in Ixtapa’s Hotel Zone II•Operated under an “All-Inclusive” model•3 outdoor swimming pools, 5 Jacuzzis, 4 bars and 5 restaurants •Offering spinning, yoga, pilates, zumba, aqua bike, cardio and swimming •Located just 20 minutes from Ixtapa Zihuatanejo International Airport

• Pre-sale resort located just 25 minutes from the airport and 5 minutes from the city center •All units have a private balcony with ocean views •High-speed Internet access •Restaurant, two bars, beach club and fitness center •Activities such as snorkeling, boogie boarding and kayaking are available

Ixtapa Zihuatanejo, Guerrero

Puerto Vallarta, Jalisco

AFFILIATIONS

25RCI VENTURES

• Pre-sale resort located just 25 minutes from the airport and 5 minutes from the city center •All units have a private balcony with ocean views •High-speed Internet access •Restaurant, two bars, beach club and fitness center •Activities such as snorkeling, boogie boarding and kayaking are available

Explorean Kohunlich

Grand Park Royal Cancún Caribe

• Located near one of the most important Mayan archaeological sites in the region•38 bungalows and 2 cabins offer complete privacy and serenity •The harmony between the hotel and the environment provides an excellent opportunity to explore the jungle’s flora and fauna•KI´OL SPA, designed to honor its namesake in Mayan: Enjoyment•Temazcal-style sauna for two and other secrets for improving health and body care

• Operated under as an “All-Inclusive” resort•Situated along 400 meters of Cancun’s breathtaking beaches•Tours of Nichupte Lagoon•Rooms and suites furnished to suit all tastes •The Cocay Restaurant offers a buffet with contemporary, international and Mexican cuisine

Chetumal, Quintana Roo

Cancun, Quintana Roo

26 RCI VENTURES

The Royal Mayan

Hard Rock Hotel Panama Megapolis

• Gorgeous suites feature a flat screen TV and a spacious balcony •Golfing at local courses available at reasonable rates•Gourmet Restaurants and access to similar restaurants nearby•Babysitting service available with prior reservation •Located 25 kilometers from Cancun International Airport

• Operated as an “All-Inclusive” resort•Infinity pool and 5 restaurants, a Hard Rock Cafe, and more•1,499 rooms, including 796 suites•Five star hotel services•Located a short distance from the Multicentro Shopping Center, one of the most comprehensive centers of its kind in the capital city

Cancun, Quintana Roo

PANAMA

AFFILIATIONS

27RCI VENTURES

Hard Rock Hotel Panama Megapolis

Sol y Luna Home & Spa

Hotel Boutique Maloka

Hotel Bahía de Coche

• Suites designed for serene and private relaxation•Massage room with views of Punta del Este •Heated swimming pool and solarium•Beach-side service•Wi-Fi Internet Service throughout the tower

• Pre-sale resort •Just minutes from the beautiful beaches of Margarita, where guests will find the best of Caribbean cuisine •Two-tiered swimming pool surrounded by beautiful tropical gardens

• Perfect for those who love water sports like windsurfing and kite boarding •Fully furnished cabins •Beach-side pool and restaurant service •Units are available for people with special needs

Punta del Este

Nueva Esparta, Isla de Margarita

Isla de Coche

URUGUAY

VENEZUELA

28 RCI VENTURES

Innovations that enhance

the sales experience

RCI Presenter© for iPad

In keeping with RCI’s primary strategy to help its partners in growing their businesses, RCI® has revamped the design and content of the marketing materials used during the sales process.

RCI Presenter©, one of the most popular and useful sales tools launched by RCI® last year, now introduces its innovative new ap-plication for the iPad. RCI Presenter© is an interactive presentation designed to vividly portray all of the advantages offered by vacation properties, an essential element of the sales process.

Now, on their iPads, sales representatives can have this indispensable tool at the tip of their fingers to help them close more sales. The App for iPad is designed to be integrated

into the sales process and support the large screen presentation of RCI Presenter©. Together, both tools create a strong and firm sales experience that will help prospec-tive clients make a decision and agree to the purchase.

With RCI Presenter© now on iPad, sales representatives will have access to high level business advice and the most advanced tech-nology to support their sales process.

RCI Presenter© is included in the purchase of the RCI TV© Platinum package.

Hardware is not included and may imply an additional expense.

INNOVATIONS

29RCI VENTURES

“Membership Benefits” Brochure and “Pitch Book”.

As part of its strategy to support the work of sales representatives in the sales rooms of their affiliated resorts, RCI® updated the design, content, and general presentation of two of its most important promotional materials: the “Membership Benefits” Brochure and the “Pitch Book.”

To strengthen sales pitches and create an expe-rience that successfully communicates and sells the benefits of purchasing a vacation property, the “Membership Benefits” brochure is the Member’s first contact with RCI® that details how to make the most of their membership and maximize its use in the future. With a new de-sign, more attractive presentation, and updated content, the “Membership Benefits” brochure is a vital aid in the sales process.

The “Pitch Book” on the other hand, is one of the permitted marketing pieces in the sales room, as it offers sales representatives all of the RCI® related information needed to complete the sales experience with prospective clients in a concise and attractive manner. As a strategic business partner, this component is designed, first and foremost, to generate sales for the resort and highlight the added value offered by RCI®.

As part of its commitment to the affiliated re-sorts throughout Latin America, both marketing pieces were “personalized” in English and Span-ish for sales representatives in Mexico, South America, and Brazil.With these materials, RCI® reaffirms its convic-tion that the best vacation experience starts with a strong, honest, and reliable sales experi-ence.

“Membership Benefits” Brochure

“Pitch Book”

30 RCI VENTURES

AN INITIATIVE FOR PROMOTING MEXICO

The best kept secrets of Mexico’s most exciting destinations; all the features, amenities, and surprises that Mexican resorts have to offer their guests; popular attractions for adults and children alike, both at and nearby the hotel; and travel-related information such as taxi rates and flight connections, is now available in the new Mexico Passport website.

ONLINE

31RCI VENTURES

Originally, Mexico Passport includ-ed a binder with some of the most relevant information of Mexican resorts to be used by RCI’s vaca-tion guides at Call Centers in the United States. The binder was so successful and useful that the same material was requested by other call centers in a global scale. Con-sequently, this information, with an even greater degree of detail and clarity, is available online for all of RCI’s vacation guides in Mexico, United States, Uruguay, United Kingdom, Singapore, India, South Africa, and Australia, who are now even better equipped to answer any and all questions posed by RCI® members about Mexico’s sunny beach destinations and resorts, the most distinguishing features of each locale, and any of the must-do activities and attractions available at each destination. This up-to-date information also provides vacation guides with the tools they need to reassure and guide members

through the process of creating un-forgettable vacation experiences.

Vacation guides can easily access information using various simple, user-friendly search tools. Searches can be made, for example, by “destination,” by resort ID, or by the name of a particular resort. Cur-rently, the resorts participating in Mexico Passport are: AM Resorts, Hard Rock, Mayan Resorts, Origi-nal Resorts, Pueblo Bonito, Palace Resorts, Palladium, Unlimited Vacation Club, Velas Resorts, El Cid, Hacienda del Mar, Marival, Royal HC, Sunset, Sirenis, Solaris, and Pa-cifica Resorts. In the future, the site will also offer the option of sending requested information via email, which will add incredible value to our vacation guides work.

Illustrated with extraordinary photographs of the participating destinations and resorts, with origi-nal descriptive content and unique

design elements, Mexico Passport has all the information about the most popular and most searched destinations in Mexico, such as Aca-pulco, Cancun, Huatulco, Ixtapa, Los Cabos, Mazatlan, Nuevo Vallarta, Puerto Vallarta, and Riviera Maya.

Everything RCI® members always wanted to know about Mexico... just a question away from one of RCI’s vacation guides around the world.

32 RCI VENTURES

TORE

We dedicate this new section of Ventures to share information related to Tourism Oriented Real Estate in the Latin American region.Topics will range from industry news to success stories, not to men-tion all of the incredibly valuable knowledge that experienced indus-try experts have to share with the readers of Ventures. As the first topic to be covered in this section, we present a note on the services that RCI offers the industry through its Tourism Oriented Real Estate Advisory and Consulting Division (TORE) and an article about the consultant services TORE has provided to Emporio.

New Section

33RCI VENTURES

At the forefront of tourism oriented real estate consulting

For those in the know, the success of any property dedicated to vacation and tour-ism lies in three all-important characteris-tics: “Location, location, location.” While this still holds true, the vacation real estate industry has changed and has become more sophisticated (in response to user tastes and preferences), to the extent that nowadays it takes more than just a good location to satisfy customers’ ever-growing expectations and desires. As a result, business models developed for tourism oriented real estate have also evolved.Aside from traditional approaches to the hotel industry, some noteworthy busi-ness models in the industry include:

Full Ownership: Residential units within a master plan, offering a range of hotel and maintenance services.

Condo Hotel: Sale of individual hotel rooms to individual investors looking for a combination of use and profitability.

by Leonel MatizManager of TORE

34 RCI VENTURES

Fractional Ownership: Residential units offering a wide variety of services and amenities, marketed as frac-tional segments, where a single residence is purchased by several co-owners.

Destination Club: Membership grants access to a portfolio of luxury properties in a number of destinations for a certain number of years.

Timeshare: The right to use or enjoy an accommodation unit at a tourism complex or within a property group, for a period time each year (usually a week), for a certain number of years. Discount Club: The marketing of a membership granting discounts on public rates for a chain of hotels located in different destinations.

In order to meet the needs of this industry, RCI’s Tourism Oriented Real Estate division (TORE) offers pro-fessional consulting and advisory services to aid in the development of tourism-related projects, becoming a true strategic ally in business.

TORE provides comprehensive consulting and advisory services covering all stages of a tourism develop-ment project, from product conceptualization to modeling usage guidelines that aid in optimizing the utilization of inventory and generating high levels of customer satisfaction.

As a pioneer and leader in the Latin American market for comprehensive professional consulting and advi-sory services for the development of the tourism oriented real estate industry, TORE offers a methodology

35RCI VENTURES

guaranteeing a unique product proposal that will appeal to a wide range of audiences, including entrepreneurs interested in the tourism sector; con-struction companies with plans in tourism destinations; hotel chains seeking to increase customer loyalty; and tourism developers at various stages of expansion, conception of new projects, or modification of current operating schemes, among others.

Throughout its career, the TORE team has participated in the production of market studies, feasibility studies, and high and best use studies, as well as the conceptualization and design of products in a number of Mexican destinations such as Cancun, Riviera Maya, Los Cabos, Puerto Vallarta, Nuevo Vallarta, Acapulco, Veracruz, Zacatecas, Mazatlan, Chapala, Oaxaca, Ixtapa, Avandaro, Cuernavaca, Valle de Bravo, Puerto Peñasco, and Ensenada; and, on an international level, in countries like Guatemala, Belize, Costa Rica, Bra-zil, and Honduras.

With the latest in advisory technology and extensive knowledge of the mar-ket, TORE works day in and day out to strengthen the real estate industry dedicated to tourism in Mexico and throughout Latin America.

36 RCI VENTURES

EMPORIUM VACATION CLUB

TORE, RCI’s Tourism Oriented Real Estate Advisory and Consulting division, has designed and developed a new product for Emporio Hotels - Emporium Vaca-tion Club - as a way to expand the group’s business opportunities, offer its customers more vacation options, and achieve greater brand loyalty.

The consultants of TORE focused on developing a Multi-Destination Vacation Club product to lever-age the supply capabilities of various hotels and the diversity of their presence in highly attractive tourist destinations.

The features and locations of the Emporio Hotels resort chain, part of Grupo Diestra, allowed TORE to devise the Emporium Vacation Club, a product tailored to the conditions, features, and needs of the group’s market. Membership to the Empo-

rium Vacation Club developed by TORE provides its members with great flexibility, offering attractive alternative accommodations for the domestic mar-ket and leveraging the presence of Emporio Hotels in both beach and city destinations.

Moreover, the business model proposed by TORE for the Emporium Vacation Club seeks to create an ad-ditional channel to increase hotel occupancy for the group, as well as provide tangible benefits such as increased average guest stay and additional revenue from food and drink consumption in all its proper-ties.

In addition to these advantages, the development of this Multi-Destination Vacation Club for Grupo Diestra represents a diversification in the group’s sales mix. And, as all RCI® Affiliated Resorts, buyers

37RCI VENTURES

that choose the Emporium Vacation Club will enjoy the benefit of vacation exchanges at destinations and hotels which are not listed in the Club catalog.

Drawing on RCI’s resources, infrastructure, and broad and innovative portfolio of products and services, TORE offers Grupo Diestra other added values such as training about the operation of a vacation club and the specialized services provided by Contact Center Solutions (the RCI® Member Management Service), which range from reservations and annual service fee collection services to the supply and development of cutting-edge technology and technology platforms, not to mention member services and inventory management.

With the Emporium Vacation Club, TORE encourages and strengthens the generation of new business while supporting the growth of the tourism industry in Mexico.

Emporio Ixtapa

Emporio Acapulco

C

C

38 RCI VENTURES

Upcoming industry events

C.A.R.E´S 56th Semi-Annual Conference

IV Medical Travel Summit

During the conference, essential tools and informa-tion needed to stay at the forefront of the vacation industry will be shared, with the aim of raising the level of professionalism and service value. Likewise, the conference aims to increase business opportu-nities by establishing important connections and relationships.

Without a doubt, medical tourism represents one of the best opportunities for growth in the Latin American tourism industry and Costa Rica is one of the countries with the greatest potential for growth in tourism. Organized by the Council for the Inter-national Promotion of Costa Rica Medicine (Consejo para la Promoción Internacional de la Medicina de Costa Rica, ProMed), international and regional experts will explore the tremendous growth oppor-tunities for this important niche of tourism develop-ment with event participants.

Date: April 20 to 23Venue: Springmaid Beach Resort, Myrtle Beach, South Carolinahttp://www.care-online.org

Dates: April 24 to 26Venue: Los Sueños Marriott Ocean & Golf Resort Hotel, Playa Hermosa, Costa Ricahttp://turismomedico.org/iv-congreso-latinoamericano-de-turismo-medico-costa-rica-2013/

39RCI VENTURES

The Real Estate Show 2013

HOLA Investment Conference(Hotel Opportunities Latin America)

Promoted by the Real Estate Developers Associa-tion (Asociación de Desarrolladores Inmobiliarios, ADI), this is one of the most important and distin-guished forums in the real estate industry in Mexico. This event, which already enjoys broad recogni-tion, welcomes the most important professionals, experts, and companies in the real estate industry nationwide. It is an excellent opportunity to learn about new business opportunities and strengthen contact networks.

The HOLA Investment Conference is considered as one of the events that best puts into perspective the opportunities for growth in Latin America and the region’s potential, as one of the most promis-ing real estate markets in the world, for generating new businesses. True to its tradition, this year’s HOLA conference program includes one of the most complete and robust agendas, which contemplates opportunities in Mexico, Brazil, and Central and South America. Other topics include new trends in the field of real estate development and addressing regulations within the countries with the highest real estate growth potential in the region.

Dates: May 7 and 8Venue: Centro Banamex, Mexico City http://www.expodesarrolloinmobiliario.com/2013/

Dates: May 7 to 9, 2013Venue: JW Marriott Marquis, Miami, Floridahttp://www.holaconference.com/