The Phoenix Club Outlines Major Obstacles

By: Destination Club News
Date: July 1, 2010

Half the way through 2010, a final hour decline on the stock market led to the second quarter ending with their biggest losses since the 2008 crash. Growth in the private-sector in June were labeled as "disappointingly weak" by Joel Prakken of Macroeconomic Advisers, adding just 13,000 new jobs, a far cry from the 65,000 that economists had expected. With uncertainty the name of the game, established firms and new companies alike continue to combat the macroeconomic conditions facing them, including the destination club industry.

Earlier in the year, Ultimate Escapes' CEO and President stated that "much of the buying appetite is driven obviously by the overall economic sentiment." The Phoenix Club, a new destination club arising out of the ashes of High Country Club, echoes those sentiments. We spoke with the club last month and asked what they believe were the major obstacles in front of their new club as they prepare to launch. While the economy is one of their major concerns, the reputation of the club is paramount.

"The poor reputation that High Country Club left behind and our constant association with them is one of our chief concerns," said the club. "We must reiterate that we are a completely separate entity."

New sales all but halted for High Country Club in 2008, leading the value priced destination club to attempt a restructuring of their failing venture. President and CEO Christian Kirschner would refer to the "severe decline in the economy" as the primary downfall of the club, but irresponsible spending and high executive compensation would also play a major role. When High Country Club filed for bankruptcy early in 2009 after none of their restructuring efforts bore fruit, Kirschner and the club were labeled as everything from frauds to crooks by members who stood to lose tens of thousands of dollars. With High Country Club in disarray, both The Phoenix Club and Paragon Destinations were created. The low confidence of High Country Club members, negative press of the bankruptcy filing, and continued market trends made it impossible for either to gain the immediate traction they sought.

Now a year and a half after the High Country Club bankruptcy announcement, The Phoenix Club is poised to launch as the value leader within the destination club sector. While they know they have an uphill climb based on their lineage and the current economic climate, they will have a stranglehold as the low cost alternative in the industry.

As we approach their formal launch date, check back for more information on The Phoenix Club and the rest of the destination club space. If you are considering destination club membership or would simply like to learn more about the concept, request a free copy of our Destination Club Guide for more information about the industry's leading clubs, history, and benefits and risks of membership.