Exclusive Resorts Closes 2009 On A High Note

By: Destination Club News
Date: January 22, 2010

Christmas spending may have been down for 2009, but don't tell that to Exclusive Resorts who finished with their strongest sales numbers of the year last month.

The world's largest destination club is also closing in on their 100,000th vacation and earlier this month was voted Destination Club of the Decade by our readers. While our little recognition doesn't amount to much, the strong sales figures and continued high satisfaction scores of members do and has helped Exclusive Resorts start 2010 strong.

Despite the positive indicators, Chairman Steve Case is remaining grounded with the economy still uncertain. In an interview earlier this month with CNBC, Case stated that the club was predicting a "decent year in 2010" with plans to "accelerate" thereafter.

"A year ago people would say 'The sky is falling. I shouldn't spend my money on anything. Maybe I should put my money in a mattress,'" said Case during the interview. "Now they are saying 'Maybe I should be a little more confident about the future, but I don't really want to go buy a home for $3 million and spend hundreds of thousands of dollars using it and only use it a few times a year. This Exclusive Resorts idea is a better idea.'"

Case is right regarding the state of both the macro economy and the micro destination club sector just a year removed. We are just days shy of the one year anniversary of the High Country Club bankruptcy announcement. A month prior to that, The LUSSO Collection had filed for bankruptcy. Solstice Collection would be just a few months from their own bankruptcy filing and several new clubs would cease operations just as they began.

Despite the growing pains the industry suffered through early in the year, many clubs posted similar success stories to Exclusive Resorts as the year concluded. The Abercrombie & Kent Residence Club counted over 50 trial members during the course of 2009 and are confident many will take advantage of the reduced pricing the club is currently offering. Ultimate Escapes concluded a successful referral campaign near the tail end of the year and Quintess had nearly 100 member transactions over the course of 2009.

Even with the Dow Jones dropping over 200 points yesterday, the markets are up over 2,000 points from where they were at this point last year. With many destination clubs posting relatively strong sales figures, is the sector primed for a better than expected 2010?

We spoke to a former destination club membership director today who agreed with much of what Case had to say. "I still believe in the value proposition," he said. "But there isn't a call to action right now in the industry to incent people to join and I believe many will continue to sit on their money and evaluate how the industry responds."

Check back frequently for more news on the destination club industry and if you are currently considering destination club membership or would like to learn more about the benefits and risks of joining a club, request a free copy of our Destination Club Guide.