Demeure Club Officially Launches

By: Destination Club News
Date: August 6, 2010

Described as "the solution to over-priced and under-serviced options that are currently available to travelers and property owners," Demeure Club has officially launched their new exchange based destination club after a soft roll out last year.

Members of the new destination club have the option of contributing time in their own vacation properties to the club, receiving discounts on stays while traveling with Demeure. Members select the number of nights per year they travel and the typical nightly fee for their accommodations and by multiplying these two numbers out, members can get a solid foundation for their annual travel commitment. Members who contribute a property to the club receive a discount of 50% against the non-member rate and members who don't contribute a property receive a 40% discount.

Members have access to a collection of villas, hotel properties, flats, farmhouses, and more. Using a $1,000 per night property as an example, a member who has not contributed a residence to the portfolio still receives their discount of 40% and would be charged $600 per night. A member who has contributed a property, whether it is in use or not, would be charged $500 per night.

At the beginning of each year, members are billed for their annual travel commitment. Members are required to spend their commitment amount or lose that time during the membership year. Members only receive their guaranteed discounts on their commitment nights and must pay non-member rates if they exceed their total, placing a high importance on selecting a number close to their planned number of travel dates.

In addition to the larger discounts received by members contributing properties, they are capable of having all of their annual contribution paid if their property is used enough by other members. When a new property is contributed to the portfolio, the club sets a "fair initial opening price" and then begin collecting market data. The following year, the property begins trading with the price set dynamically. The system and data are continually reviewed by the club's accounting firm, Deloitte.

Members sign a membership agreement for five years and can renew their contract for successive five year periods provided they are in good standing at the time of renewal. Members who don't contribute a property to the club pay an initiation fee of $2,500 and pay a $995 renewal fee if they wish to continue with the club after five years. Members who do contribute a property are not required to pay the initiation fee or any subsequent renewal fees.

Many debate whether this type of model should be considered a destination club. As similar clubs make their way into the sector, the debate will continue, but this new exchange based option may soon rival other options within the industry such as points based or days included models.

If you are new to the destination club idea and would like to learn more, request a free copy of our Destination Club Guide, a resource to help consumers evaluate membership with contributions from industry insiders, executives, and members. Check back soon as we will also be profiling more about Demeure and the rest of the destination club space.