Hapimag CEO Marco Hartmann Describes Seven Keys To Company's Growth At Global Timeshare Marketplace

Press Release
June 12, 2002
WASHINGTON, DC -- Hapimag CEO, Marco Hartmann, was a featured speaker at the Global Marketplace program at the recent American Resort Development Association (ARDA) convention in Las Vegas. He described Hapimag's formation nearly 40 years ago and the evolution of seven key principles that have formed a solid foundation for its growth and service to its vacation club owners since then.

Over 500 delegates from throughout the world attended this full-morning session. They responded favorably to the remarks of Mr. Hartmann and executives of other industry leaders as they described important aspects of the timeshare industry in major markets outside the U.S.

In 1963, Co-Founders Dr. Guido Renggli, a business lawyer and executive, and Alexander Nette, a Berlin developer, joined to form the company near Zurich, in Baar, Switzerland. Its name is an acronym for the German words for "Hotel and Apartment Real Estate Company." Since then, Hapimag has grown from a few locations and several hundred members to 135,000 member families from numerous nations and 5,500 units at nearly 60 resorts in 18 countries. It is one of the largest companies worldwide in what is now a $7 billion (US) timeshare industry that it created.

Mr. Hartmann told delegates at the Global Marketplace that there are "hundreds of reasons, big and small," for Hapimag's success, but he focused on seven of the most important.

The first is vacation values. He said that Hapimag has evolved from being "a system-oriented real estate corporation to a customer-oriented vacation company. It has developed into a club system where members identify themselves as part of a very special Hapimag community - feeling like a member of the whole group on one hand, and on the other feeling secure as an individual."

The second key Mr. Hartmann singled out was the points system for timeshare. He said, "Since the beginning, the name Hapimag has been synonymous with the point system world. Flexible use of all destinations within the system is possible, governed by factors such as off-season, peak season, and the size of the apartment and its standard."

The points systems originated by Hapimag has become the standard for many leading timeshare companies around the globe. They have increasingly adopted it in recent years.

Recognition of the importance of the points system came at another part of the convention. It was one of the major reasons why Dr. Renggli won ARDA's most prestigious award, for Lifetime Achievement, at a gala dinner.

The third factor is locations of top quality in Europe and the United States. He added, "Hapimag owns resorts on beach locations, in big cities, in the mountains and in special natural and recreational areas. Most of the resorts can be accessed by car and one-third by air."

Yet, acquiring projects in top locations is not enough. Hapimag, said Mr. Hartmann, has "a sophisticated maintenance and renovation program to ensure the long-term preservation of its resorts." In the past four years, Hapimag has invested more than 100 Million US$ in resort renovations and has made this an ongoing program.

Fourth, Hapimag has enhanced customer service. This has many elements designed to meet the needs of today's ever more demanding consumers. At the core is what Mr. Hartmann described as "a sophisticated Customer Care concept - starting from vacation planning, complete reservation and travel services through our own partner (owner) service center, to arrival and transfer services, as well as after-vacation services."

He said it also includes reservations in any of five languages and with multi-channel communications "over the telephone, by letter, fax, and also over the Internet." This approach is designed to build strong relationships between the company and its consumer members.

One example of this consumer-friendly, forward-looking approach is that more than 20% of Hapimag's 300,000 reservations in the past year occurred over the Internet.

Fifth, Mr. Hartman said that Hapimag is "a learning organization." He explained, "The strong connection between customer, shareholder, partners and the enterprise with its sales representatives and staff at the headquarters and resorts allows us to be very close to our customers and their needs, to feel and to learn what they want."

To improve customer service, he said that the company provides continuous training and retraining for its staff. He quoted the Swiss perspective on service quality, "Those who stop trying to be better have given up being good."

The sixth element he cited is "sound finances." He noted that "rigorous cost controls" and the use of the company's own capital to finance 85% of development are integral to this factor.

"Customer satisfaction through experienced management and motivated staff are the seventh factor he discussed. He explained, "Hapimag not only attaches great importance to transparent, open and active communication between the enterprise and the partners, but also within the enterprise, between management and staff and within the ranks of the staff. Committed employees and co-workers are the backbone of a thriving Hapimag."

ARDA is the industry's largest trade group globally. It has nearly 1,000 corporate members located in the United States, from privately owned firms to large, public companies, and actively participates with trade groups in other regions in the Global Alliance for Timeshare Excellence (GATE). Hapimag is one of ARDA's Trustee Members, the highest membership category.

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CONTACT: 
Alan N. Schlaifer
Hapimag
Neuhofstrasse 8/12
6349 Baar, Switzerland 
Tel.: 0041 848 802 803
Fax: 0041 848 802 805
E-Mail: info@hapimag.com 
Internet: www.hapimag.com