One Key World CEO Jay Sapovits Discusses The Future of Destination Clubs and Suggested Due Diligence

By: Destination Club News
Date: December 2, 2008

In an exclusive interview with The Veras Group, One Key World CEO Jay Sapovits discussed the differences between One Key World and other destination clubs, suggested due diligence, and the future of the destination club industry.

The Veras Group: What is your definition of a destination club?

Jay Sapovits: That is actually a question I have never had to answer before. I think at the heart of it is simply vacation home based travel.

The Veras Group: What are the benefits that One Key World has over other destination clubs?

The problem with other destination clubs is that you are forced to make a long term commitment for something that doesn't need a long term commitment. With One Key World, we ask you to take two to three trips with us. As a destination club member, you are locked and loaded. You are with that club and you rely on them to continue selling if you want your money back. If you want your money back, you are on a waiting list. With us, you just don't have to return our phone calls.

I can't imagine putting hundreds of thousands of dollars down when you can get the same experience and more flexibility with One Key World.

The Veras Group: Given your unique operating model and the differences between yours and other destination clubs, do you plan to continue aligning yourself with destination clubs?

Jay Sapovits: October and November have been terrible months for destination clubs. If I own homes, I have to pay the same for months that the homes are vacant as I do when the homes are full. We don't have any debts on the books.

We are a mix of vacation rentals and destination club quality assurance. From my perspective, it is the best of both worlds. Destination clubs provide consistent experiences across many vacation homes. The only reason that the destination club business model exists is vacation rental service models haven't gotten the experience aspect right. One Key World takes the vacation rental world without any of the pitfalls of doing everything yourself, combining in the destination club experience.

You call it a unique operating model, but for me we are just programming out what we don't want to happen. It's easier to say than it is to do.

The Veras Group: Given the current economy, where do you see the destination club industry going?

Jay Sapovits: A year from now, I can't imagine that there are as many destination clubs as there are today, and I think that is positive. The cream will really rise to the top.

Destination clubs will always have the same issue: availability. There is a huge difference between a $40 million hotel and a $4 million home. Availability will always constrain the destination club industry, and the only way to get around it is to raise prices and cater to the few instead of the masses.

Tanner & Haley is the perfect example. The truth of the matter with Tanner & Haley is they made promises they couldn't keep. They promised guaranteed Christmas availability. It was an unrealistic value proposition.

We've seen Exclusive Resorts make a move to start to do this when they added non-refundable costs to access holidays. I think this is where the industry will go.

The Veras Group: Given these hurdles, what do you think destination club prospects should do for due diligence prior to joining a club?

Jay Sapovits: I'm a believer that the buyers should due their due diligence and make smart purchasing decisions based on the information provided. If you deal with good, honest people, you probably won't get burnt.

The destination club world is for sophisticated buyers who have earned the right to put huge sums of money down to enjoy their family vacations. When you are going to put hundreds of thousands of dollars down, you should intimately understand the business model you are investing in.

The Veras Group: Why should a member join One Key World today rather than in six to twelve months?

Jay Sapovits: We pass our savings onto our clients. Prices are dropping down for us and we pass those savings onto you.

The advantage of joining now is that you could go to British Columbia in March and get to traverse the same mountain that the upcoming 2010 Olympic Games will be held on. I am a huge fan of experiencing things you usually only get to see. I have golfed Augusta National, and now have a totally new view of it.

For more information about One Key World, or any of the many options in the destination club and fractional ownership industries, please contact Destination Club News. We welcome the opportunity to speak with you and answer your destination club questions.