Exclusive Resorts Honored As 2010 Non-Equity Destination Club of the Year

By: Destination Club News
Date: February 4, 2011

When 2010 began, Exclusive Resorts Chairman Steve Case appeared on CNBC to discuss the future of the world's largest destination club. With the economy in flux, Case would predict a "decent" year for the club regarding new membership sales in 2010, followed by a sharp incline in 2011 as the economy began to recover. His optimistic estimate appears to have come in a year early, as Exclusive Resorts has reported new membership sales and upgrades totaling $66 million during the year – a 50% increase over 2009 – on their way to capturing our 2010 Non-Equity Club of the Year award.

"Our 2010 sales demonstrate what our 3,300 members have long known: Exclusive Resorts is the best, most convenient way to enjoy luxury vacations with family and friends, in 50 destinations across all seven continents," said Case. "Our 2010 results also suggest a rebound for luxury travel as we move into 2011. People are willing to spend on the things that are most important to them, like memorable vacation experiences, and increasingly understand the value of a club like Exclusive Resorts."

The club had over 330 new membership sales and existing member upgrades during the year, and surpassed $100 million in annual revenue. Its successful sales and revenue figures go hand in hand with Exclusive Resorts' continued cost cutting measures that have been implemented over the past several years. For example, the club reduced their property insurance costs by 10% and also introduced energy efficiency programs in multiple "test" destinations to lower utility costs. In all, Exclusive Resorts has managed to reduce operating expenses by approximately 45% on a per-member basis from 2007 levels.

Even with their focus on reaching breakeven by the end of 2011, Exclusive Resorts’ maintained their extremely high service standards offered to members. Overall satisfaction with club travel increased from 93% in 2009 to 95% in 2010, the eighth straight year the club exceeded the 90% threshold. Exclusive also introduced family sharing privileges as a standard benefit for all memberships, allowing members the ability to give nights to family members at no cost. In all, the club has now executed more than 120,000 vacations, a plateau that none of their peers will equal for years to come.

"What we offer is one-of-a-kind in the marketplace," said Chief Executive Officer Jeff Potter. "Vacations are precious time, so we leave nothing to chance. We design, own, and maintain the vast majority of our residences. We equip and furnish them ourselves with high-end amenity packages custom-selected for our members’ tastes. We have honed our distinctive service approach over more than eight years. Our dedicated travel advisors and onsite concierges know our members’ preferences and the details that make each trip special. This deep expertise enables us to provide exactly what every luxury traveler is looking for on every vacation: complete peace of mind, with time that is all their own."

The strong growth gives Exclusive Resorts high hopes for 2011. "The results we achieved in 2010 are one reason we are so optimistic as we look ahead," wrote Potter. "They tell us that our members are enjoying their club travels as much as ever, which is always our first priority. In addition, they are keeping us on track on our two-year path to reaching breakeven by the end of the year."

We will profile Exclusive Resorts plans for 2011 in our upcoming yearly outlook series, so please check back soon for more information about their breakeven goals in the near future.