Owners Speak Up At Fractional Summit USA

By: Destination Club News
Date: September 14, 2010

Even in a difficult economic climate, the shared ownership/use industry in the US, Canada, and Caribbean had sales exceeding $850 million last year. Earlier this month at the inaugural Fractional Summit USA in Miami, hosted by our friends at Fractional Life, an owners' panel was included, allowing for a candid discussion about what they liked and disliked about their purchase of a destination club, private residence club, fractional, or others.

The group spoke on a myriad of topics, including prepared questions covering:

• Their entry into the shared ownership/use world
• Membership experience
• What factors triggered their purchasing decision
• What services and amenities they liked best
• Their sentiment on annual dues

The insight provided by the panel was most illuminating. Most learned of the concept through an existing friend or associate who was already a member or owner, demonstrating the high referral percentage that many clubs build upon. In tandem with the high referrals comes a consensus of satisfaction across all types of shared ownership. Many destination clubs and private residence clubs have polled their members regarding the travel experience and have almost unanimously scored the experience as world class.

When asked about the triggers that led to purchase, price was mentioned but surprisingly was low on the list. Services such as daily housekeeping, fitness facilities, and 24/7 concierge support were actually mentioned as their most liked amenities.

Regarding the financial situation, particularly annual dues, the panel's sentiments weren't nearly as bad as the audience expected, mirroring the destination club industry. Last year, luxury club Quintess asked members to vote on a plan to increase annual dues. Nearly 90% voted to approve such a plan. As Ultimate Escapes verges on the edge of bankruptcy, we have spoken to several members who have voiced their stance that they would have been happy to increase their annual dues if it made the club more financially stable.

Up next was a "rapid round" of questions and answers from the audience. "It was a real benefit to those in the industry to have a panel of those who own at a PRC or DC and to hear their experiences of what made them choose the club they did, what concerns, if any, they had or have and what their experience of ownership has been like," said Peter Kempf, President and CEO of Peter Kempf International. "One particularly surprising revelation was the lack of concern about annual dues, which are usually the most heavily questioned issues prior to purchase. I look forward to having this again and even expanded at the next conference."