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Fusion Commercialization


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Fusion Commercialization

  1. 1. A complete Lifestyle Enhancement Solution 11/18/2010 All Rights Reserved. Confidential Materials not to be replicated in any way without written approval of Destination Rewards, Inc.
  2. 2. What is FUSION?
  3. 3. What generates the revenue? <ul><li>Sales </li></ul><ul><li>Market development </li></ul><ul><li>Product/service development </li></ul><ul><li>Operations </li></ul><ul><li>Administration </li></ul><ul><li>Customer relations </li></ul><ul><li>Financial structure </li></ul>All layered in such a way to pull every potential profit dollar out of every property and every prospect/client entering our “world”
  4. 4. Asset Appreciation <ul><li>Our programs cause hotel owner’ asset values to appreciate </li></ul><ul><li>We shift the focus from cost containment to an increase in revenue and value </li></ul><ul><li>This results in a realignment of the hotel owner’s attitude from value preservation to value enhancement. </li></ul>
  5. 5. Revenue Increases Created by the owners and founders of Real Club, which five years ago attached its program to a 5-hotel Cancun Mexico resort group, “commercializing” the 5-hotel, 1,600 room properties with the Club. In addition to hotel revenue, the new Club Revenue went from $ 3MM in Year One to a Year 5 revenue (in 2010) of $50MM , without adding any incremental costs to the hotel . In the process, The Club, has become the resorts’ top wholesaler. The program has since launched to other markets and properties with the same goal of creating found-revenue and asset appreciation within a short timeline. Let The Club become your top seller
  6. 6. Equity growth – capital gain A fractional and hotel vacation club can, in only a few years, add up to an extraordinary gain for shareholders without any commensurate capital input .
  7. 7. Return on investment No purpose-built club units are required - thus limited investment is required to establish this division. Earning significant profit without increasing investment has an obvious elevating affect on Return On Investment percentages. We use existing hotel units
  8. 8. Debt/Equity
  9. 9. No dedicated or locked-in inventory There is no transfer of room equity to the members. The membership consists entirely of wholesale rates. Thus there is no inventory obligation or liability attached to future corporate transactions. Contractually, the fractionals, club and the members are simply another form of tour operator or wholesaler.
  10. 10. Revenue per available room. Utilizing hotel inventory to cultivate fractional and vacation club sales is locking-in future revenue and consumer loyalty. The price of the membership becomes an addition to revenue per available room of 50% or more depending on circumstances.
  11. 11. Cash flow/receivables Clearly selling a product that generates a down payment can possibly contribute to cash available. In the same vein the receivables, as an asset, can also be leveraged into cash should financial strategy require it.
  12. 12. Occupancy In time and with the proper usage strategy, the fractional or club will become the primary consumer of hotel inventory. The hotel will no longer be held hostage by top internet and conventional wholesalers.
  13. 13. Pricing – By reducing dependency on wholesalers the chain will trend to more stable pricing strategies.
  14. 14. Competitive Additional revenues provided by a fractional and club in both membership sales and regular usage by members provides better leverage to survive competitive price pressures.
  15. 15. Predictability - Captured market Consistent hotel usage by members, guests of members and fractional or club marketing clientele, brings an element of certainty and stability to medium and long term occupancy planning.
  16. 16. Expansion All of the above considerations foster solid corporate expansion.
  17. 17. A Full Corporate Division We provide the know-how to structure, with limited risk to our clients, a full corporate division that will provide, in perpetuity to the company and shareholders, all of the key benefits indicated previously. In return, Fusion receives a percentage of the additional revenue created, which is phased down over a five year period, and earn equity or bonuses within the properties based on increasing hotel revenue, per the agreed upon benchmarks.
  18. 18. A primary philosophy: <ul><li>Protection of the brand. </li></ul><ul><li>Sensitivity to image. </li></ul><ul><li>The dignity and satisfaction of the hotel guest and subsequent members. </li></ul>We are masters at integrating the production culture of club operations into the service culture of the hotel operations.
  19. 19. A Professional Approach: We use systems, processes, procedures, and methods to sustain standards of selling and marketing at proven and professional levels. In addition, financial expectations, analytics, structure and operations are a critical part of the corporate template and strategies we provide our clients.
  20. 20. Revenue Enhancement Expertise In today’s economic climate many hospitality consultants/ asset managers focus on cost containment alone to protect and preserve asset value, it really is the creation and application of revenue enhancement strategies that will expeditiously create hospitality asset value.