Exclusive Resorts' CEO Jeff Potter Discusses The Future Of Destination Clubs

By: Destination Club News
Date: November 24, 2008

In an exclusive interview with The Veras Group, Exclusive Resorts' CEO Jeff Potter spoke candidly about the club's business model, continued growth, and the future of the destination club industry.

Exclusive Resorts' Business Model

During economic times that have caused High Country Club's restructuring, the cancelled launch of Diamante Residences, closed Vita Luxury, and caused nearly every destination club to make cuts to their labor force, Exclusive Resorts has surpassed the 3,500 member mark and now has over $1.1 billion in residential resort real estate available to members.

"We've been so fortunate that management had the foresight to put into place such a strong business model, knowing that the economy comes in cycles," said Potter, discussing Exclusive Resort's business model. "Our focus has obviously been organic growth. It allows you to enhance the service you provide and we've been fortunate to see this growth. Right now we are focused on our current member base and I think that is what we take the most pride in. During these financial times, you have to step back and make sure you do what you promised to do."

Despite its status as the largest destination club in the industry, Exclusive Resorts has grown solely through organic new member growth. In fact, of the largest destination clubs, it is one of very few that has never had any merger and acquisition activity. Earlier this year, Exclusive Resorts introduced new membership levels and programs, allowing members to customize their membership to include anywhere from 10 to 60 days of access annually and the ability to travel during the club's peak holiday periods, receiving praise from fellow destination club executives.

Destination Club Awareness

The benefits of a solid operating model, over $1 billion in real estate holdings, and market share dominance allows Exclusive Resorts to focus on other initiatives as the end of the year fast approaches.

"Our biggest concern is awareness," said Potter. "We are in a travel sector where the awareness level is in the single digits. And, there is no better way to get away with family or friends. It truly is the tip of the iceberg. I think in the next eighteen to twenty four months, the focus will be not on just real estate or destination, but about the experience, bringing people together. When you bring people together, it almost doesn't matter where you are, although we want it to be a special place."

In an industry where the referral business is the most coveted source of new clients, the experience of a club’s members is paramount. And Exclusive Resorts’ interest in focusing on fundamentals is always a good idea, but perhaps no more so than now.

Programs & Partnerships

When asked about the Exclusive Resorts' Sponsored Guest Program and other programs and partnerships in the works, Potter noted, "We aren't to the point where we are ready to announce anything, but I can tell you that part of enhancing the membership is expanding. There are a couple of partnerships out there that are very interesting to us and other parties, and I think it would go a great deal to enhancing our members' experience. I also think it is fair to say that we truly want to be a benefit to the member. There are a couple of things still out there that we can hopefully come to agreement over the next several months."

Exclusive Resorts recently introduced their new Sponsored Guest Program, allowing those interested in destination club travel to experience the homes, destinations, and services prior to joining the club. Guests can choose between four and seven nights stays at select Exclusive Resorts' properties for $5,900 or $8,900 respectively. If a Sponsored Guest elects to join following their trip, the amount they paid will be applied to towards the cost of joining the destination club.

Joining Exclusive Resorts

As the Dow dipped below 8,000 and real estate prices remained low, we asked Mr. Potter why people should join Exclusive Resorts now rather than wait.

"I think it is counter intuitive, but I think there is no better time to really get away and spend time with your extended family. The economy is tough on the mind, tough on the soul, but those are the times that you need to break away. We all have these external pressures, and I don’t think there is anyone in this country that to some degree is not feeling it. There is no better time to go on a vacation, and there is no better way to vacation than Exclusive Resorts."

To learn more about Exclusive Resorts, please feel free to contact Destination Club News for complimentary destination club advice or visit our destination club directory to learn more about Exclusive Resorts and every destination club in the industry.