WYNDHAM WORLDWIDE CORPORATION
WYNDHAM WORLDWIDE CORPORATION
WYNDHAM WORLDWIDE CORPORATION
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In exchange for management fees, WorldMark by Wyndham, itself or through a WorldMark by Wyndham<br />
affiliate, serves as the exclusive property manager and servicing agent of the Clubs and all resort units owned or<br />
operated by the Clubs. On behalf of the Clubs, WorldMark by Wyndham or its affiliate provides day-to-day<br />
management for vacation ownership resorts, including oversight of housekeeping services, maintenance and<br />
refurbishment of the units, and provides certain accounting and administrative services. WorldMark by Wyndham or<br />
its affiliate also manages the reservation system for the Clubs and provides owner services and billing and<br />
collections services.<br />
Sales and Marketing Channels and Programs<br />
Wyndham Vacation Ownership employs a variety of marketing channels as part of Wyndham Vacation Resorts<br />
and WorldMark by Wyndham marketing programs to encourage prospective owners of vacation ownership interests<br />
to tour Wyndham Vacation Ownership properties and attend sales presentations at off-site sales offices. Our resortbased<br />
sales centers also enable us to actively solicit upgrade sales to existing owners of vacation ownership interests<br />
while such owners vacation at our resort properties. Sales of vacation ownership interests relating to upgrades<br />
represented approximately 68%, 64% and 51% of our net sales of vacation ownership interests during 2010, 2009<br />
and 2008, respectively.<br />
Wyndham Vacation Ownership uses a variety of marketing programs to attract prospective owners, including<br />
sponsored contests that offer vacation packages or gifts, targeted mailings, outbound and inbound telemarketing<br />
efforts, and in association with Wyndham Worldwide hotel brands, associated loyalty and other co-branded<br />
marketing programs and events. Wyndham Vacation Ownership also co-sponsors sweepstakes, giveaways and<br />
promotional programs with professional teams at major sporting events and with other third parties at other hightraffic<br />
consumer events. Where permissible under state law, Wyndham Vacation Ownership offers existing owners<br />
cash awards or other incentives for referrals of new owners. New owner acquisition is an important strategy for<br />
Wyndham Vacation Ownership in order to continue to build our pool of “lifetime” buyers of vacation ownership.<br />
New owners will enable Wyndham Vacation Ownership to solicit upgrade sales in the future. During 2010, we added<br />
approximately 22,000 new owners to our pool of “lifetime” buyers which may ultimately become repeat buyers of<br />
vacation ownership interests as they upgrade.<br />
Wyndham Vacation Ownership’s marketing and sales activities are often facilitated through marketing alliances<br />
with other travel, hospitality, entertainment, gaming and retail companies that provide access to such companies’<br />
present and past customers through a variety of co-branded marketing offers. Wyndham Vacation Ownership’s resortbased<br />
sales centers, which are located in popular travel destinations throughout the U.S., generate substantial tour<br />
flow through providing local offers. The sales centers enable Wyndham Vacation Ownership to market to tourists<br />
already visiting destination areas. Wyndham Vacation Ownership’s marketing agents, which often operate on the<br />
premises of the hospitality, entertainment, gaming and retail companies with which Wyndham Vacation Ownership<br />
has alliances within these markets, solicit local tourists with offers relating to activities and entertainment in<br />
exchange for the tourists visiting the local resorts and attending sales presentations.<br />
An example of a marketing alliance through which Wyndham Vacation Ownership markets to tourists already<br />
visiting destination areas is Wyndham Vacation Ownership’s current arrangement with Harrah’s Entertainment in Las<br />
Vegas, Nevada, which enables Wyndham Vacation Ownership to operate concierge-style marketing kiosks throughout<br />
Harrah’s Casino that permit Wyndham Vacation Ownership to solicit patrons to attend tours and sales presentations<br />
with Harrah’s-related rewards and entertainment offers, such as gaming chips, show tickets and dining certificates.<br />
Wyndham Vacation Ownership also operates its primary Las Vegas sales center within Harrah’s Casino and regularly<br />
shuttles prospective owners targeted by such sales centers to and from Wyndham Vacation Ownership’s nearby resort<br />
property.<br />
Wyndham Vacation Ownership offers a variety of entry-level programs and products as part of its sales<br />
strategies. One such program allows prospective owners to acquire one-year’s worth of points or credits with no<br />
further obligations; another such product is a biennial interest that provides for vacations every other year. As part<br />
of its sales strategies, Wyndham Vacation Ownership relies on its points/credits-based programs, which provide<br />
prospective owners with the flexibility to buy relatively small packages of points or credits, which can be upgraded<br />
at a later date. To facilitate upgrades among existing owners, Wyndham Vacation Ownership markets opportunities<br />
for owners to purchase additional points or credits through periodic marketing campaigns and promotions to owners<br />
while those owners vacation at Wyndham Vacation Ownership resort properties.<br />
Wyndham Vacation Ownership’s resort-based sales centers also enable Wyndham Vacation Ownership to<br />
actively market upgrade sales to existing owners of vacation ownership interests while such owners vacation at<br />
Wyndham Vacation Ownership resort properties. In addition, we also operate a telesales program designed to market<br />
upgrade sales to existing owners of our products.<br />
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