Timeshare biggie rejigs brand; to expand to 50 plus locations in five years

Besides changing its logo, the city-based 100 per cent subsidiary of Thomas Cook (India) Ltd ($43 billion Fairfax Financial Holdings entity) has outlined plans to expand its footprints to 50-plus locations in the country and doubling up rooms over the next five years, to position itself as a leading holiday brand in India, said Ramesh Ramanathan, MD, Sterling Holiday Resorts. 

Giving an overview, he explained the reasons for the change. From 13 resorts and 1,100 rooms in 2011, the pureplay timeshare company, which posted a turnover of Rs 254 crore last year, has now 33 resorts and over 2,200 rooms with a membership base of 80,000. In the first quarter of next year, Sterling is set to launch a firstof-its-kind doorstep holiday insurance, using the services of Digit, a Fairfax company. 

Some noticeable trends in the travel industry, with a 12 per cent compounded annual growth rate, include the growing popularity of multiple short getaways, reunions, social and media groups and in-family holidays, he said, adding that India found itself fifth among the most vacation deprived countries. Such being the scenario, the changing consumer and market dynamics have taken holidays beyond “just accommodation and food.”

Immersive holidays, curated experiences, “brag” worthy ‘instagrammable’ holidays, ‘Raja Rex,’ Sterling’s discovery mascot and ‘themed’ holidays are the focus areas apart from adding flexibility to its vacation ownership concept.

Throwing it open to non-members has helped the company’s growth, Ramanathan said. It had invested Rs 250 crore for refurbishing its resorts. Besides this, the acquisition of Nature Trails and making Wayanad resort operational had taken up Rs 50 crore. From last year’s occupancy of 56 per cent, it is confident of ending the year with 70 plus levels. Sterling is looking to add another 5,000 members to its existing base.

Of the company’s 250 acres of vacant lands available across the country, Coorg and Bhimtal were being developed. It is also evaluating Orissa, Madhya Pradesh, Andhra Pradesh, Assam and Meghalaya to firm up its plans. Sterling is engaged in discussions with about 10 players to expand its management contract model of business, he said.