By Tim Barker
of the Sentinel Staff
Published in The Orlando Sentinel on July 12, 2000
Orlando-based Fairfield Communities has strengthened its relationship with Carnival Cruise Lines through a marketing
agreement that makes it easier for the two companies to share customers.
The deal is a direct result of earlier negotiations between the companies, which called off a planned merger earlier
this year after stock-market conditions made it unpalatable.
"You`re seeing exactly what would have happened if the two companies had joined together," said Jim Berk,
Fairfield`s chief executive officer. "When the formal merger was put on hold, we kept on developing as though
nothing had happened."
Included in the agreement is a new approach for selling time shares and cruises as a single package.
Carnival Discovery Vacations allow prospective owners to try out a time share for a year before buying. In the
program, customers buy points, which are redeemed for nights in a time-share resort and aboard a Carnival cruise
ship.
For Fairfield it marks a significant departure from the traditional time-share sales approach, in which customers
are encouraged to buy today.
"If they like the product, we don`t have to sell it to them on their first visit," Berk said.
Fairfield owns 28 resorts in 11 states and the Bahamas. Locally, the company owns three resorts, including Cypress
Palms in Kissimmee. Carnival owns a fleet of 47 ships.
The agreement also offers a variety of vacation packages for time-share customers. Those include two-night stays
at a time-share resort before or after a cruise and "Land & Sea" discount packages that combine the
companies` offerings.
For both companies, the deal offers access to another base of potential customers. Both firms say their customers
share many of the same characteristics and vacation needs.
"They`ve got millions of customers who match our customer profile," Berk said.
The companies also share a strong presence throughout the state, making it easy to offer the paired vacations.
"With eight Fairfield resorts in Florida and eight Carnival ships sailing from Florida ports, bringing these
two brands together is a natural strategic fit," said Bob Dickinson, president of the Miami-based cruise line.
The companies say the agreement is likely to be followed by additional promotions that give Carnival customers
incentives to stay at Fairfield`s resorts.
And for Fairfield, this is the first of five such moves aimed at raising the company`s profile in the eyes of consumers.
Berk said the company would like to form similar alliances with companies in the gaming, hotel, financial services
and tour/travel industries.
In Tuesday trading, Carnival shares closed up 37.5 cents at $20.625. Fairfield closed up 12.5 cents at $8.188.
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