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“We built a good presence in Mexico with off-premises marketing
programs,” Kistner confirms. “But they become expensive to operate
over time. With the call centers, we can target high-density areas that
have a corresponding propensity to visit Mexico.”
Targeting U.S. and Canada
Fully 90 to 92 percent of prospects are American or Canadian, and 30
percent decide to purchase as a result of “fly-and-buy” promotions, he
adds. “We know it’s important to give people an opportunity to touch and
feel the product,” Kistner says. “We also have a very high conversion rate
among hotel guests.”
But The Villa Group doesn’t target the domestic Mexican market,
Buchalter says. “We’d have to have call centers to serve that market,
which we don’t have, and that’s by design.”
Existing owners, however, have proved a rich and fruitful source of
both leads and sales, Kistner says. “We have a very strong elite loyalty
program, which we’ve just enhanced to properly recognize these mem-
bers.” Owners receive points for every prospective owner they identify,
and are rewarded again if that prospect makes a purchase. Points can be
used to pay maintenance fees, to upgrade to an all-inclusive stay, for spa
services, or for other perks, Buchalter says.
Life Balance and the Millennial
The Villa Group’s marketing expertise even extends to the most challeng-
ing of groups: the millennials. Notoriously commitment-phobic, these
young people have confounded entire segments of the traditional real
estate industry.
“This is a discussion we have with our sales guys every five or six
months,” Kistner says. “Fortunately, in our sales department, we have
been steadily hiring millennials, and I’d say 30 to 40 percent of our sales
staff is in that group. It’s a great advantage.”
It’s interesting, he observes, to watch sales people interact with these
younger prospective buyers. “They listen to and understand millennials,
who would rather get information on their phones or through a chat, than
from another person. And then you watch them walk through the process
with the more traditional clients. It’s definitely a learning curve.”
That’s where the Interval Sales Tool Kit fits in. About 60 percent of The
Villa Group’s sales agents carry an iPad with them and use various pieces
of the app, including high-definition videos on Interval HD and the Interval
Exchange Tracker. The agents appreciate that the tool kit is customizable,
so they can use the features they like most, he says.
“We’re very fortunate that our program is points-based and extremely
flexible, because that appeals to millennials,” Kistner says. “They can
decide at the last minute and come down for a long weekend,” rather than
the traditional weeklong stay. “That has allowed us to overcome many,
many objections. I would say 15 percent of our sales are to millennials.”
“Millennials’ belief structure revolves around quality-of-life issues,”
says Buchalter, noting that they are determined to use their available time
to the greatest advantage. “This fits right into our pitch. The decision to
purchase is an emotional one. Yes, there is logic involved, but 90 percent
of it is emotional. The flexibility to travel when they want to is very appeal-
ing to millennials.”
Never Brighter
Concurrent with getting the two new resorts in Cabo San Lucas up and
running, The Villa Group is eyeing a variety of opportunities, Buchalter
says.
“There is no question that we are going to continue expanding,” he
says. New ventures include a golf course and a master-planned commu-
nity in Loreto, and other possible projects include an eco-resort and park,
and a fractional development.
“We’ll continue to work on our product, which is a one-stop shop for
our members and guests,” Kistner says. “We want them to be able to
come for a visit or stay for a lifetime. Whatever happens, we’ll continue to
evolve, and so will the products we offer. One thing I will tell you: In my 35
years in this business, the future has never looked brighter.”
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The Villa Group
Developer: The Villa Group: Fernando Gonzalez, Owen Perry, and Luz Maria Torres, partners
Headquarters: Puerto Vallarta, Mexico
Product: Points-based vacation club membership, fractional, and full ownership
Price: US$13,500 for biennial points package (1,000 points) to US$250,000 for the
Residential Elite membership (15,000 points)
Resorts: Cabo San Lucas: Villa del Arco and Villa del Palmar-Cabo
Cancún: Villa del Palmar Cancún Beach Resort and Spa
Loreto: Villa del Palmar at the Islands of Loreto and Villa del Palmar Loreto
Nuevo Vallarta: Villa del Palmar-Flamingos
Puerto Vallarta: Villa del Mar and Villa del Palmar
Website: villagroupresorts.com
FAST FACTS
THE VILLA GROUP
VILLA DEL PALMAR, PUERTO VALLARTA VILLA DEL PALMAR-CABO, CABO SAN LUCAS