Will Roadhouse of Compass Destination Clubs Interview

By: Destination Club News
Date: December 13, 2008

Earlier this month we profiled Compass Destination Club's planned launch, a new destination club to be introduced early in 2010. We had the opportunity to discuss the new club with CEO Will Roadhouse to learn more about their offering and the benefits available to members.

A former Wells Fargo and Countrywide Home Loans employee, Roadhouse followed a story book path for the creation of his company Compass Group International. "I went down to Costa Rica on vacation and turned in my resignation." Compass Destination Clubs will be attached to Compass Group International, a leading consulting firm in Central America where the club will focus most of their attention. According to Roadhouse, members will have access to units in Costa Rica, Panama, Nicaragua, and Belize when the club does launch.

Unlike the more traditional destination club model where members have access to a portfolio of properties owned by the club, Compass Destination Clubs will take a different approach. Members will pay a low entry fee ranging between $2,000 and $5,000 and receive discounts at condos and single family homes in the Central America region.

"A lot of developments are virtual ghost towns," said Roadhouse. "We want to provide our members with these two bedroom condos that are being unused."

Each property will have their own variable rate, but the club expects most to average approximately $100 per night, about one quarter of what comparable hotel rooms cost according to Roadhouse. Properties will be vetted by the club and only the "crème de la crème" residences will be included in the club's portfolio. "All the resorts are well known and we know them inside and out," added Roadhouse.

Regarding services, Compass Destination Clubs will take more of a bare bones approach, envisioning that their price sensitive clients won't need the services more commonly provided to destination club members. "We don't want to compete against Abercrombie & Kent. Most people don't need concierge services, first class airline trips, or personal chefs."

Based on their club structure and benefits, Compass Destination Clubs will likely market to travelers who frequent Central America with some regularity who don't need a great deal of assistance in their vacations. Destination club members typically enjoy pre-travel services such as the creation of travel itineraries, airline reservations, and grocery shopping. While in residences, members can access a local concierge to assist in arranging dinner reservations and getting an insider's perspective on local amenities and attractions, and following the vacation, most clubs diligently follow up to learn more about the trip to improve future journeys for the member.

"Destination Cubs have only catered to High Net Worth individuals...why should the rich have all the fun!" Roadhouse wrote in the club's introductory press release. While the structure does have merits for a select audience, many will debate the validity if the young Compass Destination Clubs is in fact a destination club or if it fits more closely resembles a vacation rental club akin to VRBO.

No matter its industry, Compass Destination Clubs remains a year away and with The LUSSO Collection filing for bankruptcy earlier this month and High Country Club, once one of the sector's fastest growing clubs, restructuring as a result of poor sales, the concept proposed by Roadhouse may look significantly different in the current market climate. Check back frequently to learn more about the club and the rest of the destination club industry.