Destination Club Memberships On The Resale Market

By: Destination Club News
Date: April 15, 2010

Tax day has arrived and no matter if they filed months ago or if they are waiting until the last minute, multiple luxury travelers are taking a closer look at their finances, including their destination club memberships. Atop the luxury tier of the travel industry, the cost of capital and annual dues make destination club membership an expensive endeavor. Because of these costs, some members are looking to get out from under their membership.

During the past week alone, we have found memberships at leading clubs available on both eBay and Craigslist from existing members looking to sell their memberships. M Private Residences, Canada's largest destination club in terms of members, introduced a secondary sales channel that allows members the ability to accept offers for their membership. The Ritz-Carlton Destination Club gives members deeded ownership as part of their structure.

Following the bankruptcies of High Country Club and Solstice Collection last year, giving members additional security gained increased prominence over the past year, but are destination club resales the future of the industry?

The benefits are clear. Most destination clubs require between two to three new members to join before one member is redeemed and repaid. For members deep on the resignation list, it may take hundreds of new members over multiple years before they top the list. If members are allowed to resell their memberships, there is no wait required. They are able to sell their membership for the price and at the time they wish.

On the other hand, destination club resales would potentially slow new membership sales to a complete halt. With steep discounts available from existing members looking to leave the club, the clubs themselves would have a hard time selling new, higher priced memberships. While some may argue that this doesn't affect members, it does mean that the club would be unable to purchase new residences for the club's property portfolio.

Simply put, destination club resales are excellent for those both looking to either join or leave their club, but not for current members satisfied with membership.

Nonetheless, we predict that destination club resales won't be a mainstay for several years, if ever. Fortunately, that doesn't mean that there aren't excellent opportunities currently available. If you are interested in selling or buying a destination club membership, please feel free to contact us and we will be happy to help you align with other buyers and sellers.