“OUR MODEL IS SOLID, BUT WE NEED TO GAIN IN EFFICIENCY”

Why opt for an integrated organisation 10 years after Center Parcs entered the Group?
Gérard Brémond: We are not really breaking with the past since we have proceeded in stages. When we bought Center Parcs, we above all focused on preserving the brand, culture and performances of this unique company in Europe. Then we began to unlock synergies, for example with the purchasing policy. Today, it is time to go further.
Sven Boinet: Indeed, we are not changing direction, we are simply providing ourselves the means to fully carry out the company strategy and our aim, which is to strengthen our position as the European leader in local tourism. And we are doing this by transforming our organisation, clarifying our product lines and our brand strategy.

What does “strengthening our position as the European leader in local tourism” actually mean in concrete terms?
Sven Boinet: We already lead the market in France, Belgium and the Netherlands and would like to do the same in Germany, Spain and hopefully Morocco. Being European means reaching a significant size in each country where we are present and we are working on this aim. Finally, we are a tourism group. We will therefore focus on marketing, developing customer relations management, working on the quality of our ser vices, increasing our presence on the Internet and capitalising on the outstanding potential harboured in the client bases of our two major brands, even more so than in the past. Although our clients are European, we see little movement between countries. Clients at Pierre & Vacances sites are mainly French whereas demand is high from Belgian, Dutch and German holidaymakers for destinations in France and Spain. We therefore need to develop cross selling.
Gérard Brémond: The recent success of the new Center Parcs Trois Forêts domain in Moselle is a good example of this aim. The new-generation cottages and leisure facilities are highly efficient in all segments of sustainable development and as soon as the village opened they prompted a frequency rate of 95% with a multitude of European clients: 40% French, 40% German and 20% from northern Europe (Belgium, Switzerland, etc.).

Given the difficult backdrop in the tourism market, will this transformation help you continue to develop?
Gérard Brémond: With the boom in social networks, price comparison tools and competition from low cost destinations, relations between consumers and travel or leisure “producers” have shifted in favour of consumers. However, a number of factors still play in our favour. Although in coming years, revenues of European citizens are set to remain stable at least, holidays should also remain a priority expense. Our position as a local tour operator offering rentals and à-la-carte services helps up meet demand given that consumers can create their holidays according to their spending capacity.
Sven Boinet: Our concepts meet current needs and we are already anticipating future requirements with our new Center Parcs in Moselle or the Villages Nature project. Innovation is in the Group’s genes and has helped us weather the crisis. With our transformation project, we should enhance marketing efficiency and replace client experience at the centre of the company’s functioning. This is essential in a highly competitive universe in order to guarantee future sales.

Transforming the Group also means changing its governance. How do you manage the Group together?
Gérard Brémond: Sven Boinet has been CEO since November 2009 and focuses especially on the tourism business integration project and increasing Group efficiency. I continue to chair the Board of Directors and also focus on property development and international expansion. We nevertheless discuss all of these subjects and strategic decisions are made together.

What is the situation in property development?
Gérard Brémond: With €614 million in property reservations in 2009/2010, the Group enjoyed its best year in property for 40 years. Development potential remains high in France as well as in Germany with Center Parcs, and in Spain and Morocco where the tourism residence concept is virtually absent.

What principles guide international development?
Gérard Brémond: We remain focused on our core business, namely tourism residences and resorts. In new countries we only make very cautious commitments. Finally, we choose local partners who are references in the sector. Outside France, we focus more on variable rents and management contracts (as in Morocco), which help us control development while limiting risks.

What are the main sources of leverage to earnings growth and the Group’s development?
Sven Boinet: The main sources of optimism are housed within the Group itself. We have strong brands and quality products. Our projects, like those of Villages Nature and the future Center Parcs domains, are extremely innovative and come under the framework of sustainable development, which is now a key factor. We are in the throes of a transformation that should help us gain in efficiency.
Gérard Brémond: We need to bolster our productivity and our earnings although the Group’s structural fundamentals have not lost any of their relevance, as shown by the extension underway at Avoriaz and the new Center Parcs Les Trois Forêts!