Distinctive Holiday Homes' Nick Wood Discusses Club Changes

By: Destination Club News
Date: May 21, 2009

Fresh off a trip to Fiji, Nick Wood, CEO of Distinctive Holiday Homes, met with us to discuss some upcoming changes to his club.

For over two years, Distinctive Holiday Homes has operated much like every other destination club in the industry, marketing their luxury travel club to potential members through various media outlets. Having grown their club to 60 members since their April 2007 launch, the club will soon transition to a referral only model where new members will only be accepted if they are introduced by a current club member.

"We are concentrating on our hotel business, which provides an ongoing profit center for the company," Wood said. "We have decided the destination club part of our business can grow quietly and organically by invitation only. We aim to add one to two new destinations per year. As we have created something quite special, we have decided to make it exclusive."

The invitation only model will commence once the club sells 60 weeks of usage. "60 weeks allows the addition of several new US destinations and allows the destination club part of the company to cover its cost," Wood continued. "If we don't get 60 weeks, we would have to consider whether the hotel side would continue to cover the shortfall or whether we would reduce the number of destinations or shutdown the club part. We are getting very positive traction on the 60 weeks, so I don't think at this stage we will have to contemplate this."

This "positive traction" stems primarily from the significant discounts currently available to potential members. The club is offering each of their 60 weeks of travel for $40,000, nearly a 20% discount from the standard $49,000 price tag. Annual dues remain the same based on the membership plan selected by the member.

Sales and marketing costs are often some of the largest monthly costs incurred by clubs. By transitioning to a referral only model, Distinctive Holiday Homes will greatly reduce their costs and subsequently increase their ability to repay membership obligations.