Exclusive Resorts Reports On First Half Of 2010

By: Destination Club News
Date: August 2, 2010

Following a difficult 2009 that saw the drastic reshaping of the destination club sector, industry leader Exclusive Resorts is beginning to see the fruits of their labor through the first six months of 2010, posting their strongest sales month in nearly two years in June.

Early in 2010, Exclusive Resorts Chairman and AOL Co-Founder Steve Case appeared on CNBC to discuss the future of the club. "My guess is we will have a decent year in 2010 and probably accelerate from there," he said. Despite selling more memberships than any of their peers during the year, the recent bankruptcies of High Country Club, Solstice Collection, and LUSSO had significantly reduced buyer confidence, leading some to question the future of the destination club model. Since that interview, Exclusive Resorts has made a string of notable announcements and achievements that have led to the club's faster than expected sales flow. February saw the club surpass 100,000 vacations taken by members, a milestone that will not soon be eclipsed by any of their rivals. The first six months of 2010 also included another 15,000 reservations by current members, the most the club has seen in their seven year history for any six month window. Just days after the club's 100,000th stay, Case became Chairman and led a $20 million round of new equity financing. Exclusive Resorts has added 16 new residences to their portfolio over the course of the year, including popular destinations Steamboat Springs and Las Vegas, available exclusively to members. Not only has this all led to the club's new membership growth, but also internal growth as more than 55 members have elected to upgrade their membership during the first six months of the year.

"If vacations with family and friends are important to you, joining Exclusive Resorts makes more sense these days than ever," said Chief Executive Officer Jeff Potter. "You get vacation variety to last a lifetime through our portfolio of 400 luxury residences in the best destinations in the world. You get personalized service that exceeds the finest hotels, with dedicated vacation planners and expert onsite concierges to handle every detail both before and during every stay. And you enjoy privileged access to amenities like beach clubs, top-rated spas, and championship golf courses at many of the best-known resorts in the world. There really is no other alternative that lets you vacation in so many places with such luxury and ease."

Other destination clubs have begun to see similar trends as the economy begins to show signs of recovery. Ultimate Escapes CEO and President Jim Tousignant stated that their sales pipeline was "the highest it's been in the past 18 months" when the club reported to investors and members in April. The Abercrombie & Kent Residence Club has already sold more memberships in 2010 as they did in all of 2009 for their equity destination club and will soon be ending an attractive trial membership offer that should get even more new members in the door.

While some are seeing a surge of new interest, the destination club industry is far from the levels enjoyed prior to the economic downturn. Understanding a club's financial position has become just as important as learning about the properties and destinations available to you as a member. If you would like to learn more about the destination club concept, request a free copy of our Destination Club Guide, a free resource for those considering membership with contributions from industry insiders, executives, and members alike.