Exclusive Resorts Crafts New Less Expensive Non-Refundable Memberships

By: Destination Club News
Date: March 7, 2011

Exclusive Resorts has introduced new non-refundable membership plans, a departure from the destination club norm that typically includes a non-refundable and a refundable component for every membership. In addition, the club is offering a flexible payment option that allows members to pay their membership fee over up to three years. As a result, new members can start enjoying club travel for as little as $30,000 plus annual dues.

For several years, Exclusive Resorts has followed the formula that nearly every other destination club follows. In fact, it is the formula that they created when they launched over eight years ago. Members pay a one-time membership fee that is 75% refundable if they leave the club and dues each year. While Exclusive Resorts will continue offering these refundable memberships, members can now also choose to join at a significantly reduced rate by opting for a non-refundable membership fee.

For example, new members choosing this option can join the club for a membership fee ranging from $100,000 and $360,000, entitling them to between 10 and 60 days of annual club access. By contrast, membership fees for the 75% refundable option run from $160,000 to $500,000. Members can also take advantage of a flexible payment option that allows for the ability to defer their full membership cost, making four equal payments over three years – meaning new members can begin traveling for as little as $30,000 plus first year dues. Members that pay all of their membership up-front save between $20,000 and $40,000 compared to those that take advantage of the deferred payment option.

During 2010, Exclusive Resorts recorded $66 million in new membership sales and upgrades and surpassed $100 million in annual revenue, leading to their recognition as our 2010 Non-Equity Destination Club of the Year. Our contacts at Exclusive Resorts have informed us that new membership sales in January and February have continued to be strong, comparable to 2008 levels – prior to the sharp decline in the economy.

With more than 3,300 dues-paying members, Exclusive Resorts has led the destination club industry virtually since inception. If their new non-refundable membership plan takes off, will other clubs adopt a similar design, just as they adopted various other destination club pillars created by Exclusive Resorts?