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An Innovative Growth Plan
The company is on track for continued aggressive growth. Rather than
build new product, VI adds inventory by taking over aging or distressed
timeshare properties and inviting existing members — sometimes thou-
sands at a time — to come on board. On average, 70 percent of owners
at such timeshare projects have chosen to convert their units or weeks
into VI points.
“If the HOA is beyond saving, we charge a minimal transaction fee
as approved by the acquired entity’s board,” Allen explains. “VI wants
both the owners and their resort. It gives owners a way to stay in time-
sharing, and us a way to pick up new members.”
This growth-by-assimilation strategy has proven to be a win-win.
“Typically, new owners appreciate that we’re owner-controlled, rather
than developer- or shareholder-controlled like some other companies,”
says Mike Vasey, chief operating officer of VOS. “Sometimes their
maintenance fees go down. We’ve held our operating maintenance fee
level for six years in a row, through the recession and since.”
In three or four instances, thousands of owners were at risk of losing
their investment in vacation ownership. Britton remembers all too well.
“My husband, Alan, and I were welcomed into Vacation
Internationale as part of the extremely successful merger of the
Aviawest Resort Club (ARC) in 2012,” she says. “It was a wonderful
opportunity for all the ARC owners who, without the option to join VI,
would have lost their investment in their vacation ownership.”
Choose Your Experience
Two-thirds of VI’s resorts are scattered across nine western states
(Washington, Oregon, California, Arizona, New Mexico, Nevada,
Colorado, Idaho, and Montana) and four Hawaiian islands (Maui, Kauai,
Oahu, and the Big Island). Another eight resorts dot British Columbia,
Canada, and two are tucked into the iconic beaches of Mazatlán and
Puerto Vallarta on Mexico’s Pacific coast.
The VI portfolio includes the full spectrum
of vacation experiences — alpine skiing,
world-class golf, fly-fishing, whitewater rafting,
beach volleyball, snorkeling, deep-sea fishing,
whale-watching, and clam-digging — to
appeal to its diverse base, ranging in age from
25 to 72. By cultivating such a broad appeal, VI
is uniquely positioned to take advantage of
today’s diverse market.
“My wife and I have owned at Vacation
Internationale for about 14 years and we have
had so many great memorable vacations with
our kids, and now our grandkids, it’s hard to
pick a favorite resort,” says Rex Kellso, presi-
dent of the homeowners’ association board.
“We’ve had family weddings and reunions at VI
locations, because we know we can count on the quality of the resort to
make these events successful.”
“We’ve organized it around the concept that you’re going to get a
very, very friendly face when you come to a VI resort,” Allen says. “The
rooms aren’t going to look all the same no matter where you go, but the
quality of the hospitality is going to be very high each time.”
Serving an Untapped Niche
Owners not folded in from acquisitions came on board because VI
offers an affordable entry into vacation ownership, with points pack-
ages starting at US$5,000.
“We fit a certain niche, where the average income is in the $70,000
range,” says Vasey. “We think that the market space we’re in has a lot of
room for growth. It’s that $60,000-to-$70,000 income that most of the
other big timeshare players have left alone, because it doesn’t fit their
qualifications.”
Most first-generation buyers visit one of three large off-site sales
centers in Las Vegas and the Pacific Northwest. There are also on-site
sales centers at VI’s two Mexican resorts and another in Southern
California, where satisfied owners can be the best salespeople.
Still Ahead of Its Time
“Our club product is enormously flexible,” Allen says. “VI's mostly West
Coast–based members are able to book overnight stays at several
resorts on driving trips down the coast or cross-country and cancel
without penalty up to 30 days before arrival. With a modest fee for the
points protection, they can even cancel all the way up to their date of
arrival without losing their points.”
Vacation exchange through Interval International gives VI owners
access to a quality worldwide network of resorts, validating the VI
product further.
“Our mission is to make VI economically
sustainable over the long-term, and one of
the things required to do that is growth,”
Allen says. “Affiliating with Interval brings
resources to our club that are needed to help
us in growing VI. It’s a natural fit.”
Partnering with Interval will bring sub-
stantial behind-the-scenes benefits, as well.
“We’re excited about Interval’s new sales
tools,” Vasey adds. “We’re going to start uti-
lizing that technology in the sales process.
Every salesperson is getting an iPad as part
of this rollout. It’s a commitment on our part
and a commitment on Interval’s part in how
we can work together.”
See page 2 for currency conversions.
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Manager:
Owner-controlled through
Vacation Ownership Sales, Inc.
Headquarters:
Bellevue, Washington
Product:
Points-based club
Price:
Points packages beginning at
US$5,000
Website:
viresorts.com
Social Media:
facebook.com/pages/VacationInternationale/
326332898442
Vacation Internationale
fast
facts
Owner-run Vacation Internationale
has an active board, representing
40,500 voting owners.
VALLARTA TORRE, PUERTO VALLARTA, MEXICO