The Claims of Destination Clubs

By: Destination Club News
Date: December 19, 2009

Now over a decade in operation, the destination club industry has grown increasingly competitive as clubs of all size strive to differentiate themselves to a small subset of luxury travelers for which the destination club model is designed. Dating back to 2003, Exclusive Resorts drafted a press release publishing the acquisition of their 100th member. The next day, Exclusive Resorts' leading competitor and the world's first destination club, Private Retreats, disseminated their own press release about the acquisition of their far less notable 320th member.

In recent years, the major players in the destination club industry have begun to work in closer connection, including the advent of the Destination Club Association and participating in conferences and symposiums to greater discuss tools to not only grow their own respective clubs, but the overall destination club sector. While positive steps have been made, like all industries, the destination club space has its fair share of "marketing spin."

One of the discussion points that has been nearly eliminated from the destination club industry are total member counts for each respective club. According to club literature, Tanner & Haley Destination Clubs, the master brand of Private Retreats and two companion clubs, Distinctive Retreats and Legendary Retreats, had over 1,800 members at their peak. When Tanner & Haley filed for bankruptcy in 2006, documents revealed that they had 874 total members between the three clubs, a near 1,000 member delta from club reports.

More recently, two clubs have made claims at the title of "world's second largest club." The small Capricorne Villas, with membership options as low as $100 to join and who are currently waiving entry fees to newly weds, published that they were the second largest club in the industry. Ultimate Escapes, with well over 1,000 members, is the more widely recognized second largest destination club with over 500 members more than Quintess, The Leading Residences of the World, the third largest club.

In a video for the Global Learning Series, the small destination club Abundant Life stated that they offer members "the most beautiful locations and homes, at a price more affordable, with a higher level of amenities and services than any other luxury vacation club." A claim that every other destination club in operation would highly debate.

High Country Club and The LUSSO Collection stated that there were no members on their club's resignation lists, information that proved to be inaccurate when both filed for bankruptcy.

Like High Country Club and The LUSSO Collection, many other destination clubs have been claimed by the market and those still in operation have elected to reveal more behind their proverbial curtains, a positive change for both current members and those currently evaluating membership.

If you are considering joining a destination club, there are several due diligence questions that should be asked to get at the heart of any concerns you may have. Asking to speak to current and/or former club members or executives from the financial side of the club for example will help provide you with multiple perspectives of the club and help you make the most informed decision possible. If you would like to receive a free list of due diligence questions and suggestions, request a copy of our Destination Club Guide.