Shell Vacations Systems Launches Sales at Franchisee Resorts

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. October 14, 2008

NORTHBROOK, IL, October 31, 2005. Shell Vacations Systems (SVS) has announced the recent launch of sales of the Shell Vacations Club points-based product at its first two franchise resorts.

According to Tracy Sherles, President of the Shell Vacations Club (SVC) and architect of Shell's franchising initiative, "We are pleased to have successfully orchestrated this important step for our franchisees in just a few months. Both of our franchisees are so excited about how well things are going, they are looking forward to potential new properties and opportunities. They recognize now that becoming a franchisee has in no way hindered their entrepreneurial spirit. They are still selling their own product, but with guidance from us on the most effective way to do it."

Added Sheldon Ginsburg CEO of Shell Vacations, "Since we first became involved in timesharing nearly 30 years ago, we have always been at the forefront of innovation within our industry. We were one of the first to create a points-based product and the first to create a vacation club. Franchising our entire operation is just another extension of our continuing creativity."

The first SVS franchisee of Salado Creek Villas in San Antonio, Texas, was announced in March this year, followed in late June by Crotched Mountain Resort in New Hampshire.

Steps required to initiate Shell Vacations Club sales at the resorts involved obtaining state registrations, preparing association documents and contracts, coordination with lenders, Chicago Title, and Equiant, repositioning the resort within RCI, designing and outfitting the sales centers, installing SVC's information technology, training the sales and administration staff and implementing centralized contracting processing.

Reflected Sherles, "Accomplishing this daunting task was a total Shell Vacations company-wide initiate that involved every discipline to seamlessly transform two single-site, stand-alone resorts in opposite ends of the country into an invisible segment of the Shell Vacations Club system. Along the way, we provided to the franchisees all the tools the system affords, how to sell the product, how to service it and all facets of the entire operation. Nothing has ever encompassed our pioneering spirit and the essence of our company as much as this endeavor. It was massive and literally affected every department in our company. We are extremely proud of the results.

"Our SVS team of Franklin Khedouri and Joe Malone, Senior Vice Presidents, have done an excellent job in helping to make this happen. Other Shell team members making especially notable contributions to the launch included Bill Caswell - Sales Training, including the Interactive Sales Kiosk; Richard Stasica, legal registrations and documentation; Rodney Patao and the entire Information Technology Department; Mack Hendrick and Diane Novosel - contract processing, escrow, and financial management; Gabrielle Jacobson - Club operations and brand standards; and Steve Swanson of Strategic Alliance Marketing.

SVS opened three sales centers within one week. In New England, SVS simultaneously opened an offsite and on site sales center coordinated with a marketing facility in a third location. In San Antonio, SVS began sales at the Salado Creek Villas resort and coordinated that office with marketing and administration offices in Canada, where they are headquartered.

The first to open, Salado Creek developer Gary Buckley, stated "They really did a superb job for us, above and beyond the call of duty, ensuring that we were really ready to begin sales. They were with us before and during our opening, in essence holding our hands every step of the way, making certain that our Interactive Sales Presentation and all equipment was up and running. Shell Vacations specialists in many fields were with us, to include sales and marketing staff, sales trainers, plus people who helped with our computers, testing everything prior to our opening. Their presence was most reassuring."

Added Perry Williams, developer of Crotched Mountain Resort, "Since we were already in active sales at two separate sales centers, it was a challenging transition to switch to selling SVC points while remaining open during the entire process. On our days off, a kind of metamorphosis occurred as we received sales training, completely reworked our sales rooms, changed the look of the wall tour, installed Shell posters and the SVC Interactive Sales Presentation. With everyone pulling together, including the Shell people and our team, the transition took place without anyone missing a beat. It was great! We are all excited to be in SVC Northeast and believe this is the single most important upgrade for timeshare in New England."

In 1999, Shell Vacations introduced the Shell Vacations Club, which uses points as a form of "currency". Club members can use the SVC Resort system for as little or as long as they desire, at the time of their choosing, and in locations and accommodations of their choice.

Through franchising, introduced in 2004, Shell Vacations Systems franchisees can offer their customers this same flexible vacation delivery system. SVS was formed for the purpose of selling and supporting franchises. The franchise gives the right and ability to sell a developer's inventory as Shell Vacations Club points. The franchisee obtains one of the timeshare industry's most sophisticated and complete points clubs and a turn-key package for selling the Club along with complete after sale support without any investment in infrastructure or labor.

Concludes Sherles, "For many independent developers, creating their own club or points based system is too expensive. Buying into an established club system instantly makes them a part of something larger and helps them compete with the brands and public companies. It lets them tap into our preferred vendors and enables them to attract better sales and marketing talent. Becoming a franchisee gives them a more competitive product and highly cost effective because they are utilizing all SVS support systems. Shell Vacations Systems was created just for this purpose."