Compass Destination Clubs Announces Upcoming Launch

Date: December 5, 2008

Still over a year away from launching, Compass Group International has announced that they hope to be one of the first destination clubs to be introduced in 2009 with the creation of Compass Destination Club.

Scheduled to launch in January of 2010, Compass will have a focus on the Central America region, due largely to the experience that executives Will Roadhouse and Dean Studebaker have in the area. Although the final destination list has yet to be released, the club provided examples of Costa Rica, Panama, and Belize as likely destinations available to members.

Unlike the more traditional destination club model where the club owns a centralized portfolio of luxury vacation homes, Compass will procure partnerships with residential developments to provide members access. The collection of condos and single family homes will average between $400,000 and $1 million and between 900 and 1,200 square feet. Members will pay a one-time membership fee and "low monthly dues" and will receive discounts on the nightly rates offered at those developments.

"Participants can stay in any of our private residences at any time of the year—on a first-come-first-served basis," said Roadhouse, Compass Group International's CEO. "For $150 a night, our members can rent a luxury 1,200 square feet, two bedroom/two bath ocean front condo in Costa Rica. A hotel just a few minutes away charges $200-300 a night for a 400 square feet standard hotel room...it’s a no-brainer!"

While branded as a destination club, many inside and outside the sector debate whether this type of structure is truly a destination club, likening it to a villa rental organization with a membership component. No matter the classification, Roadhouse says, "Destination Cubs have only catered to High Net Worth individuals...why should the rich have all the fun!"

Compass Destination Clubs plans to launch with three different membership plans, differentiated by the property sizes and reservation windows. The tentative membership structures are:

Silver Membership
Membership Fee: $2,000
Properties: Studios and One Bedroom Condos
Reservation Window: 3 Months In Advance

Gold Membership
Membership Fee: $3,000
Properties: One and Two Bedroom Condos
Reservation Window: 6 Months In Advance

Platinum Membership
Membership Fee: $5,000
Properties: Three Bedroom Condos, Penthouses, and Single Family Homes
Reservation Window: 6 Months In Advance

Once this version of Compass Destination Club is up and running, Compass plans to expand their offering to Mexico, South America, Asia, and Europe with members able to pay a "small fee" to add privileges at these other clubs.

This type of membership structure can be advantageous for some travelers while the more traditional destination club model would be better for others. To better understand the differences, benefits, and risks of the various models used throughout the industry, request a free copy of our Destination Club Guide.