Tanner & Haley
The innovator of the destination club concept, Tanner & Haley managed to grow to nearly 900 members before filing for bankruptcy in 2006.
The club's usage rules were outlined by the "Proprietary Capacity Model" that the club developed. From the club's literature:
"Tanner & Haley strives to achieve a perfect balance between Members and residences through its Proprietary Capacity Model designed to make one residence available for every 5.5 Members."
"Currently, we have 150 homes divided among 35 destinations, an average of 4.5 homes per destination. Under normal demand conditions, this should assure Members have access to a desired destination within the timeframes they request."
"On those few occasions that Member bookings exceed the supply of residences in a given location, the Club's affiliate, Tanner & Haley Villas, provides the Club pre-approved residences for Member use. In most Tanner & Haley destinations, the Company operates its owned and managed assets, giving it a critical mass of residences that allow it to accommodate its Members' requests more efficiently."
"When Tanner & Haley reaches a Member-to-home ratio that exceeds its target of 6:1, the Company purchases additional residences in existing destinations or adds new destinations. In certain destinations, the Club currently owns more residences than are needed for just the existing membership base. Typically, where such a situation exists, new residences are in the construction stage."
Each of the three club's within the Tanner & Haley brand, Private Retreats, Distinctive Retreats, and Legendary Retreats, provided members with unlimited annual travel.
Each of the three club's had their own respective property portfolios, letting members choose their club by the home values they wished to occupy.
As part of this usage structure, members were guaranteed access to properties even if the club residences were in use by other club members. To meet their availability needs, the collected clubs were forced to enter into numerous short-term leases. The funds spent on procuring these properties crippled the club, leading to the first major black eye in the destination club sector.
Tanner & Haley would eventually be acquired by Ultimate Resort for $100 million. At the time of the acquisition, Ultimate Resort had less than 100 members and would move to approximately 750, making them the second largest destination club in the world.
Just months after the finalized acquisition of Tanner & Haley, Ultimate Resort and Private Escapes would announce a merger that would create Ultimate Escapes.
If you would like to comment on your experience as a former Tanner & Haley member, please feel free to contact us at firstname.lastname@example.org.