A Check List for Simplified Solutions What to Look for in a Shared-Ownership Administration Partner

Timeshare operations and administration have numerous moving parts and many resorts havedifferent needs. How do you find solutions? How do you simplify the process?

Over the years, formerly spent as managing directorfor all of RCI Latin America and chief executive officerfor Grupo Costamex and earlier as chief financialofficer for Grupo Real Turismo, which owned andmanaged Camino Real – Westin Hotels and Resorts,Calinda – Choice Hotels and Resorts and ClubMaeva/Casolar, I’ve had the opportunity to work onboth sides of the coin. Maintaining the pieces of thepuzzle in line, producing profits and keeping ownersand members happy is a daunting task. Often thesolution rests in reaching out to a partner who canmake the job not only easier, but produce betterresults than a company can garner by staying totallyin house.

Most recently at ResortCom International, we havebeen examining what a developer or HOA shouldlook for in such a partner. The right choice will offersimplified solutions to what at first glance is a verycomplex industry. The question remains: How do youweigh the options?

First you must do due diligence to ensure that thefinancial servicing company you choose has thespecific services that you require immediately and isfully scalable to grow with you. An integrated financialservices company should have:

• An efficient and flexible software platform that can be easily integrated into developers’, resorts’, HOAs’ and banks’ systems, eliminating manual processes and double entry mistakes, and that also has CRM capabilities to effectively manage information and reporting.
• Experience and a proven track record of successfully servicing customers of similar projects, markets and nationalities.
• Language and currency capabilities to meet the developer’s present and future needs.
• A team of motivated call center agents with clear goals and performance-based compensation that are consistent with the developer’s own.
• Level A-1 operational managers and directors that understand the clients´ business and strategy and are able to communicate with them on the same terms.
• A trained and efficient backroom servicing staff managing millions of dollars in transactions and reconciliations.
• A culture of innovation and customer service, where the clients become partners and not accounts.

Second, you need to be aware that an external servicing company should not take the place of internal staff completely. In addition to some servicing functions that the developers might prefer to keep in-house, such as sale-consolidation programs, there should be an internal manager responsible supervising the servicing company and coordinating with the developer’s functional areas, sales and marketing in particular. The servicing company needs to be flexible and accommodating to the different service structures the developers define.

Another component on the path to success is a partner who has the infrastructure and expertise to help make critical decisions right away with immediate access to top line data to help maximize revenue with efficient transactions. With the right information resorts can pursue the ultimate goal of increasing profits, streamlining operations and reducing costs.

When approached by both new and established developers to offer a check list in reaching the right decision, I’ve proffered some questions to ask to zero in on the complicated issues when it comes to resort management and the appropriate technology necessary to put it in good order. If you are an HOA or a developer, looking at these issues may help the process.

• In this changing economy what is the revenue per each member or owner? Do we have revenue of at least $100/year per existing customer in our service area?
• Can we separate our divisions to measure each contribution per discipline? Can we manage each business division separately?
• Are we able to make changes and adjustments quickly and intelligently? Can we track sales and marketing expenses on a real time basis?
• What if something goes awry? Do we have an on- call team to supporting our organization?

How long does it take to find the right company to steer your resort and/or group of resorts in the right direction? The process could take several months.

The first task that a board should complete is the development of a request for proposal (RFP). This document should include a detailed description of the resort, the services being requested by the developer and/or board, history of the property or properties and expectations from the resort board or developer. The RFP should include a long list of very specific questions of the servicing company regarding their organization, their services, their experience with similar resorts, their standard policies and procedures, systems and controls and their overall philosophy for dealing with employees and customers. The list of questions should include several specific “How would you handle” and “What would you do if” as it applies to certain issues of particular interest to the board. There should be several questions relating to the items listed above in what is important in a management company, such as: Are they involved in the industry and ARDA? What accounting services would they offer and the timeliness of their reporting? How up to date is their software? How flexible are they? And, as importantly, what do their existing clients say about them?

Finally, it is important to note that not every company providing financial services and technology is well versed in the international market place. No matter what the language, the currency or the size of your business, an international team is sensitive to different cultures and understands different business models. If you are a member of the global community – and who isn’t these days – these questions are as important to ask as any other.

Finding the right associates with the right technology platforms is a big step in gearing up for growth. Make sure you have a combination of technical excellence and business style to take you to the next step and the steps ahead.