Press Release
May 18, 2001
PARSIPPANY, NJ -- A new study of timeshare owners by Ragatz Associates, a unit of Resort Condominiums International,
LLC (RCI), showed that members of RCI Points are using their points to exchange more frequently and believe RCI
Points provides greater value than traditional week-for-week exchange.
The new program is also drawing rave reviews from resorts, which are experiencing improved closing rates with fewer
rescissions.
"We're very proud of this early response to our new exchange program," said Ken May, president and CEO,
RCI. "But we will continue to look for ways to change and improve RCI Points so that it continues to meet
the needs and exceed the expectations of both our consumer members and our affiliate customers."
The Ragatz study, "RCI Points: A Case Study of Two Affiliated Resorts," examined consumer experiences
with the new program with RCI members from two resorts, Silver Lake Resort in Orlando, Florida and Meadow Lake
Resort in Columbia Falls, Montana. The study found that:
Jim Peters, President and CEO of Silver Lake, reports that Silver Lake is showing another positive trend on
its bottom line since the switch to RCI Points - a downward trend in rescissions. In Florida, buyers have 10 days
after they purchase timeshare to change their minds and rescind. "For a single site here in Orlando, a 22
to 24 percent rescission rate would be considered good," said Peters. "We're down in the mid-teens as
of April, and it seems to be consistently improving. So we're having less of a problem with people buying and
then canceling."
"This great news further demonstrates the popularity of RCI Points with consumers," said May. "It
is no secret that flexibility in exchange is one of the most important purchase considerations for timeshare buyers,
and RCI Points offers greatly increased flexibility."
In addition to high consumer satisfaction and reduced rescission rates, data compiled by RCI shows that many resorts
that have switched to RCI Points are experiencing higher closing rates since adopting the new program. RCI tracked
sales at five different resorts to further guage consumer acceptance, and found that closing rates were higher
at all five resorts both two weeks after offering the new system and one month after, with some resorts showing
results as much as five percent higher.
"RCI Points is successful because it offers something that our members have never had before," said May.
"RCI Points provides members with ability to exchange their timeshare for not only resort accommodations,
but also other travel products such as airfare, cruises, rental cars… products that RCI members previously could
only obtain through RCI as a cash purchase. This allows members to maximize the full value of their timeshare
purchase year in and year out depending upon their changing needs and preferences."
RCI (RCI.com) is the world's leading global provider of products and services to the timeshare industry, with more
than 3,700 affiliated resorts in 100 countries. In pursuit of its mission to be the market maker in global travel
and leisure, RCI offers the world's leading timeshare exchange services through RCI Points, the first worldwide
points-based exchange system, and RCI Weeks, RCI's traditional week-for-week exchange system. In 2000, more than
2 million exchanges were booked through RCI, sending an estimated 7.5 million people on vacation. RCI provides
integrated timeshare solutions in addition to exchange through RCI Market Links including consulting, travel agency,
technological support and lead-generation strategies along with club development and operations. RCI is a subsidiary
of Cendant Corporation (NYSE: CD).
---------------------------------------
Contact:
John R. Barrows (973) 496-8687 john.barrows@cendant.com