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Press Release: RCI SA
March 20, 2006
JOHANNESBURG, South Africa -- Thanks to the achievements of its industry partners, RCI and its subsidiaries realised
outstanding results with a reported 23-percent EBITDA (earnings before interest, tax, depreciation and amortisation)
growth year-on-year in 2005 alone. These current successes were recognised and celebrated at the recent Oscas Awards,
held 22 February, at Gallagher Estate.
Companies and individuals acknowledged at the gala event for their outstanding achievements, with Sun International
taking the lion’s share of the awards, include:
However, RCI is not oblivious to its competition. As many industry leaders know, staying on top is often far
more of a challenge than getting ahead of the game. To remain in pole position, RCI has embarked on a course of
renewed strategic focus for the year ahead.
This is no mean feat, but changes had to, and have been put into play, in order to progress forward. At the helm
of RCI’s forward thrust into an increasingly saturated business environment is S’bu Mngadi, CEO, Cendant Vacation
Network Group, Africa.
Explains Mngadi, “RCI is part of Cendant Vacation Network Group (CVNG), which in itself, is a business unit of
Cendant Corporation’s Hospitality Group of companies.”
In the hospitality sector, Cendant is one of the world’s leading providers of travel and leisure real estate services
and products. With a turnover of US $19-billion, Cendant Corporation is ranked 107 among the Fortune 500 Companies.
In South Africa, Cendant Corporation’s business units and brands include RCI®, Vacation Rental Group®,
The Registry Collection®, Avis®, Budget®, Galileo International, Sotheby's Realty International and
ERA®. Some (like RCI®, Vacation Rental Group® and The Registry Collection®) are wholly-owned and
operated by CVNG in this country, and the balance is licensed to South African companies.
This strategic alliance has afforded RCI’s offices across Africa to currently serve some 240 000 member families
who holiday at more than 179 RCI-affiliated resorts and 296 RCI Frontiers, B & B’s and guesthouses.
It is within this market, which has seen growth of 13-percent during 2004 and sales nearing R1-billion that RCI
intends re-inventing itself through product innovation and new market strategies. Part of RCI’s re-invention tactic
is to tap into the lucrative and enormous potential of the emerging black market (EBM). And in so doing, carve
out the controlling share of the future hospitality industry.
To this end, RCI recently invested over R1-million into researching the EBM. Marketers report that this income
group is not only responsible for fuelling South Africa’s retail boom, but also for virtually everything else from
increased demand for housing to high-end automobile sales.
“Over two-thirds of domestic tourists in the first quarter of 2005 were black,” notes Mngadi. “For the black market
and at 64-percent, visiting friends and relatives is the most dominant reason for travel in SA. As a direct result,
this travel also generated the most revenue at R3.8-billion in the first quarter of 2005 vs. R0.23-billion for
business.”
The implication is that, although income levels in the majority of the black market are relatively low, this group
is responsible for generating the most revenue in the travel market.
But this is only part of RCI’s hospitality evolution. There are always other aspects of business that can be improved
on, both over the long-and short-term.
Through focused business strategies and structures, new revenue streams have not been restricted to the timeshare
industry alone. Fractional, Hotel and mixed-use developments have emerged into the market place.
In line with these new industry developments, RCI plans to cater to a much broader, emerging tourism market. “We
are slowly changing from good to great. This is further entrenched by our increased product mix, under the RCI
Holiday Choices banner,” concludes Mngadi.
Successes of 2005, the group is proud to boast that:
The above stats confirm RCI’s position as the world's leader in timeshare exchange, not to mention a company
committed to innovative product development, high quality standards, as well as superior service delivery.
About Cendant Vacation Network Group:
The Cendant Vacation Network Group (CVNG) is the global leader in leisure accommodation with exclusive access to
60 000 vacation properties around the world. Organisationally, CVNG comprises RCI, the global leader in vacation
exchange and travel membership products, and Cendant Vacation Rental Group, the leader in vacation accommodation
rentals.
Collectively, CVNG represents developers, owners, managers and marketers of outstanding vacation properties, sending
consumers on dream vacations to the world’s great tourism destinations through brands that are global market leaders
within their business segment. CVNG is a subsidiary of Cendant Corporation (NYSE:CD), a provider of travel and
real estate services.
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Compiled by SIMONSAYS communications: Louise Churches SIMONSAYS communications Tel (011) 465 9815 E-mail: louise@simonsayscom.co.za
Melanie Letcher SIMONSAYS communications Tel (011) 465 9815 E-mail: mel@simonsayscom.co.za