Destination clubs provide members with access to fully furnished homes and apartment-style suites in exclusive locations around the world.
With an initial membership deposit and an annual fee, members don't need to worry about maintenance hassles or property expenses, and they have guaranteed access for a given number of days per year.
While destination clubs may not be for everyone, membership represents a potentially savvy lifestyle choice - and can even provide superior quality at a lower cost per night than a five-star hotel. When factoring in real estate appreciation, destination club membership is comparable to owning a vacation home.
Joining a destination club is a major financial decision that is worthy of the same consideration that you would apply to a significant purchase or investment. Membership deposits vary widely among different destination clubs and can be divided into four tiers:
| Ultra-Luxury: | $500,000 to $3 million |
| Luxury: | $250,000 to $500,000 |
| Premium: | $150,000 to $250,000 |
| Value: | Less than $150,000 |
Most destination clubs refund 80% of the initial membership fee when the member chooses to leave. Download our comprehensive guide to destination clubs to access our full financial analysis.
Reservation Risk - With club members vying for the same homes at peak-season, securing a reservation may be problematic. Some clubs include guaranteed access days with membership plans to alleviate uncertainties.
Business Risk - The destination club industry is still in its infancy and there have been several bankruptcies reported in the past few years. Careful due diligence of the financial viability of the destination club under consideration is key.
Resignation Risk - If a member wants to resign, the club should be able to cover the refundable portion of that member's deposit. While many clubs require two or three new members to sign on before refunding another member's deposit, a 12-18 month time-limit should guarantee the deposit's return.
Download our comprehensive guide to destination clubs for more information regarding the financial health of the industry's top companies.
Destination clubs are not right for everyone. The following questions can help you assess whether destination clubs are right for you:
- Do you and your family travel more than 14 days in a year?
- Do you prefer the service of 5-star resorts but also enjoy the privacy of a quality home or villa?
- Does your family vacation at different vacation destinations each year?
- Do you often book a suite or rent a villa when vacationing to accommodate larger groups?
- Do you employ a travel agent to plan custom travel experiences?
If you answered, "Yes" to any of these questions, destination clubs may be the optimal choice for you and your family. Our comprehensive guide can help you learn more.
