“Rational Richs” Trend For Flexible, Personal Travel Experiences Moves Them Out of Ownership and Into Membership

Date: August 21, 2007

Growth of the Vacation Club Concept Indicates The Search For a Memorable Vacation, Money Just Can’t Buy

While still a relatively new concept, the vacation club is catching on because it combines flexibility with five-star amenities, without the upkeep headache, and taxes of owning another vacation property.

The market attracted to the destination club concept was nicknamed the “rational rich” by the American Resort Development Association. While they can afford to own multiple vacation properties, the rational rich prefer to pay a one time membership fee and be more “footloose” in how they choose their travel, while protecting the very thing that is most important to them – time. And according to Adele Cygelman, Editor in Chief of Robb Report Vacation Homes, in a guest editorial for Developments Magazine (July 2007), the affluent homeowner sees membership in vacation clubs as a means of traveling in style to places they otherwise may not have experienced.

It was this concept and growing market that convinced Kevin and Shawna Walker to launch British Columbia’s very first destination club – The Discovery Club Luxury Destinations Ltd.

With the redevelopment of Victoria’s famed Oak Bay Beach Hotel as its anchor, The Discovery Club™ is a membership club that offers all the advantages of strata hotel ownership with the added flexibility of trade benefits at luxury destinations and unique travel experiences around the world. There are no property taxes, no strata fees, no maintenance fees, no hotel loss coverage, no strata meetings and a member can deed the membership to the next generation of family members so they can also enjoy world wide travel experiences.

A one time membership fee of CDN$225,000 and annual dues of CAD$2700.00 provides members with up to 45 nights or more depending on the season and destination in an ever expanding collection of the world’s finest hotels and resorts all over the world, including the brand new Oak Bay Beach Hotel when it is launched in 2009.

Along with accessing a wide range of hotel accommodations from around the world, members can also indulge in first class travel, and once in a lifetime experiences, such as private executive aircraft, luxury train travel and exclusive boat charters or even a journey to the Arctic Circle. They only have to cover the cost of getting there and back, incidentals and meals. All accommodation and taxes are covered through their membership and for those members who are time challenged, the Discovery Club let’s them take up to two years to redeem their travel benefits.

How the Discovery Club differs from many destination clubs is it offers hotel and resort destinations, as opposed to private homes. Through world-wide relationships, this also allows The Discovery Club extra flexibility to arrange an alternate resort or hotel at a member preferred destination, if the original affiliate is unavailable – something that is often difficult for other destination clubs to accommodate with more popular destinations. Featured hotel affiliates to choose from include Marriott Hotels world wide, Fairmont Hotels, including the Kea Lani in Maui and Orchid on the Big Island, Scottsdale Princess and St. Andrews in Scotland, the Rome Cavalieri Hilton, Pan Pacific Hotels in Vancouver and Whistler, Four Seasons Dublin and the Delano in Miami Florida, to name a few.

“We recently had a purchaser who wanted to know if their membership gave them access to all-inclusive resorts,” says Kevin Walker. “ We asked them where they were thinking of going next, they told us the Caribbean and within one hour, we had a five star all-inclusive option for them.”

Also appealing to the “rational” purchaser is the fact that if, after five years, members change their vacation habits, they are entitled to sell their membership against the membership fee current at that time or the Club will buy them out at 70 per cent of the original purchase cost.

The Walkers were determined to allow flexibility within their business model, so members can gift their room nights and experiences, as well as their membership. The Walkers felt that this will make the Discovery Club more appealing to families who want to share in the membership, and for the corporate market, where an owner may purchase a membership and gift travel benefits as incentives for employees. There are also quarter share opportunities available for those who want to share their membership with others.

As an added bonus for those enrolling during the first year of the club, the Walkers are guaranteeing the annual administration fee remains unchanged for 15 years. Throughout their membership, dedicated Member Service Representatives will provide one-on-one travel planning services, or members can book online 24/7, where they will access the latest catalogue of affiliate resorts and experiences, learn about special promotions, monitor their travel benefits and access itineraries.

People wanting to learn more about The Discovery Club may go to www.discoveryclub.ca. They may also call (250) 598.4556 or 1.800.668.7758 for more details.