A-List: Edward Kinney, Vice President of Corporate Affairs for Marriott Vacation Club International
1:41 pm in A-List Interviews, Magazine Articles by Perspective Magazine | Timeshare & Fractional Reviews
An exclusive live interview with Edward Kinney, vice president of corporate affairs for Marriott Vacation Club International on Marriott’s entry into timesharing – as well as his own. Interviewed by Matt McDaniel in Orlando, Florida in January 2009.
Ed, thanks for taking the time to talk with us today. Why don’t we start with you telling us how MVC got started?
Dating back to 1984, it was an idea by the combination of Bob Miller and Ed McMullen, who had American Resorts, getting together with the Marriott company to see how we could leverage the lodging business and integrate it with the timeshare industry. It had never been done before, and it looked like it would have a lot of synergies. There was a bit of a leap of faith, but they felt it was a viable extension to what they currently offered.
At the general manager and hotel owner level,there was apprehension that the timeshare customer would displace hotel customers: “Why would we partner with those guys if they’re just going to take away our customers that come back here year after year?” That was a valid question; it actually took five or 10 years to prove that it wasn’t displacing the customer. From there the business continued to grow, we got more cooperation from the individual hotels, and it did prove itself to be a nice fit, that one element complemented the other.
Where’s MVC today and how has Marriott changed over the years?
Where we are today obviously is dramatically different from the beginning. From a customer standpoint, we now have over 390,000 families that own with us. We’ve diversified to have different brands catering to different segments. From a sales standpoint, the first year we were in business we did $5 million in sales. We do that in roughly 24 to 30 hours these days. From an operations standpoint, we have properties all over the world now. We have our urban product up in Boston. We have large properties in Orlando and California which have or are proposed to have over 900 villas; no one would have even fathomed to have a resort that size back in the early days.
Tell us about the different brands and the markets they serve.
Marriott Vacation Club is our core brand. The name used to be Marriott Ownership Resorts and we changed it back in ‘96 to be more consumer focused. Marriott Ownership Resorts seemed institutional. We wanted to have a brand identity that was much more leisure oriented.
Having vacation in it was important. We felt we had a club environment, although not a traditional club – but people felt like they belonged to something unique – so club worked. We have 49 properties underneath the MVC brand in Asia, Europe, through the Caribbean, and obviously, throughout the United States.
Next would be the fractional product, in which we have actually two brands operating. We have the Ritz-Carlton Club, which is our luxury fractional ownership product, where the ownership interest varies between 14 and 35 days, depending on the resort. It allows us to tap into the customer that was more traditionally buying a second home but maybe not using it the whole time, and gave them an option to buy something that had all the services of Ritz-Carlton associated with it – in exclusive destinations. The brand has grown tremendously. and it’s going to have its 10th anniversary in ’09, just as MVC is going to have its 25th anniversary.
Where Ritz-Carlton is an exclusive, private residence club where you can’t access it unless you’re a member or owner, Grand Residences by Marriott offers kind of a blend between timesharing and where you can own larger slices of the pie. There are also flexible usage options. You can exchange or rent your time, and you have benefits like the Marriott Rewards program add more choices for you. We have Grand Residences in London and Tahoe, and in full-ownership form in Panama City Beach, Florida. We’ll also have it in Hawaii at the Kauai Lagoons property.
The fourth that we have is Horizons, which was created for the moderate-tier customer. Conceptually, it was developed to offer a vacation experience at a lower price point. Market conditions and land and product costs have made it challenging to grow this brand. We’ll continue to keep it underneath the umbrella of Marriott Vacation Club.
What lessons would you say you learned from that experience?
That although things look good in strategy form, sometimes market conventions change, and you can’t always change the product for the market. We were able to do two test sites and realize that it was not as viable as we originally anticipated. Ultimately, we have to consider whether we are providing a great experience for the customers and shareholder value. That ultimately drives the ability to grow.
What are the company’s latest projects?
We’re going to continue to focus on taking advantage of any opportunities to grow the Asia-Pacific market because it has tremendous potential. It’s already proved itself to be very fast growing. It did require us to step away from our traditional deeded ownership and go to a points-based product, because that’s what the customer wanted. But certain markets are going to be more successful if we adapt our way of thinking to their needs rather than trying to force what we have onto somebody.
We also have three new properties in Florida alone. Everyone says that Florida is the timeshare capital of the world, and we’re continuing to reinforce that.
How many projects are in the pipeline right now?
The three in Florida are yet to be opened. We will have another property in Hawaii in Kauai Lagoons that will actually have all three of our brands. We’ll probably add more inventory in Asia, but markets are yet to be determined. We have not formally announced, but it is public knowledge, that we have acquired a property in Surfers Paradise, Australia. We purchased the property, which is actually a Courtyard hotel, and we’ll continue to run it as a Courtyard as we evaluate what our options are and how we can adapt it for timesharing. We did acquire a property in Dubai but we don’t have a schedule on it yet because of the hyper-inflation of construction. So we’re holding back on that until we see the construction costs in that market stabilize.
So tell me how did you personally get started in the business? When was it, and what was your background before coming to the company?
I got started on Hilton Head about 26 years ago. I was really a graphic designer, but I was working for the Chart House chain of restaurants, training bartenders and also was in food and beverage management. On Hilton Head you either did resort real estate, which included timeshare, food and beverage, or you were probably doing something on the beach with suntan lotion. It was just by being so exposed to the growth of timesharing at the early stages that I got involved. My entry point was in sales, and then went to runningan agency that specialized in timeshare and fractional ownership. From there I was responsible for the marketing at MVCI’s first international property in Paradise Island, Bahamas. This was followed by various corporate marketing positions and now Corporate Affairs, which includes public relations, crisis management and brand awareness..
Did you expect career you ended up having?
I never expect anything to the next day! I’ve said time and again, I’m embarrassed by my good fortune – it seems like I’ve been in the right place at the right time and to be involved in an industry and a company that has continued to grow over such a long period of time has been just amazing. So to watch it evolve and grow, see new milestones – you can’t imagine how good of a feeling it is to have people look at you and equate you with being a part of the best in what you do. It’s flattering in one sense, and challenging in that
you have to maintain that level all the time.
But no, I never expected to be where I am today.
Tell me about your involvement with the trade association.
I was chairman of the PR and communications committee for five or six years. I succeeded [Starwood’s] David Matheson after he served on it. That is kind of a funny thing: Many people look at our industry as highly competitive; it’s actually so much more collaborative amongst the different key stakeholders than people realize. Like our relationship with the Starwood, Disney and Hilton folks. Because our corporate offices are in the same market, we talk all the time. We learn from one another.
What do you like best about your position?
Getting to interact with every facet of the business and to meet and talk with owners. I also actually thrive on chaos. Being responsible for crisis-management communications,and how you need to immediately react to complicated situations, is an amazing challenge. It means though that you never know what’s going to happen moment to moment. For me that’s the time that I feel I’m at my best.
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“As an exhibitor, we wanted full transparency on our stand, and as such all passersby can clearly see that we cover timeshare, fractional products, property and travel so we could gauge the general public’s reaction to this type of publication – and they like it!” Commented Paul Mattimoe, CEO, Perspective International Ltd who publish the magazine.
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