In December of 2003, Exclusive Resorts, the established leader in the destination club industry, and Marquis Jet, the leader in the private jet card sector, announced a partnership that would plant the seed of a new club to a young Vice President at Marquis Jets.
Jay Sapovits, Vice President of Sales at Marquis, dove into the model that Exclusive Resorts had so successfully implemented and identified a sub-section of the destination club industry that he believed he could cater to. Combining elements of the private jet card model with the luxury real estate and service elements of destination clubs, Sapovits looked to create a new model where the club would not own the properties available to members but instead offer thoroughly vetted resorts and properties all over the world. The model would require no large up front membership deposit to join but instead let members purchase pre-paid nights. Nights would be debited as a member traveled based on the length of the stay, size of the home, and season.
Sapovits left Marquis Jets in August of 2006 to start One Key World. "Quite simply, One Key gets you access to a variety of homes and destinations around the world," Sapovits said in an interview with Fox Business. "Essentially what One Key is doing is bringing to the travel and accomodations space what my former company, Marquis Jet, did for the private jet world, which is reducing it down to a pre-paid, quality assured, one time fee in exchange for services delivered, in this case beautiful, gorgeous luxury homes with all the amenities you get at a resort."
One Key World offered membership levels for 15, 25, and 45 nights of travel and soon grew to close to 100 members according to Sapovits. In December of 2008, the club announced their 100th booking, a trip to Palm Springs in January of 2009.
Just weeks after the announcement, One Key World quietly ceased operations. "One Key has ceased its operations and is conducting an orderly wind down of its business. Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched."
MEMBERSHIP PLANS
"The problem with other destination clubs is that you are forced to make a long term commitment for something that doesn't need a long term commitment. With One Key World, we ask you to take two to three trips with us. As a destination club member, you are locked and loaded. You are with that club and you rely on them to continue selling if you want your money back. If you want your money back, you are on a waiting list. With us, you just don't have to return our phone calls."
From the club's Founder and CEO, Jay Sapovits, the model used by One Key World was vastly different from the more traditional destination club design.
Rather than charging members large, up front membership deposits obligated to be repaid by the club upon resignation, One Key World members purchased pre-paid travel cards within the club. As the member traveled, nights were pulled from the card until it reached zero. Members could add more nights to their card if they wished or could simply travel until the card was depleted.
One Key World had three different membership plans, offering 15, 25, and 45 "One Key Nights" respectively. The reservations structure for the club functioned on a points based system, with the property selected and season of travel factored into the number of One Key Nights required to travel. "Now the annual family winter trip to a highly coveted destination like Cabo San Lucas for a week may cost ten One Key Nights, while a four-night getaway to New York City for a couple during the fall may only cost three One Key Nights," said Sapovits.
As such, each of the membership plans listed below could potentially provide for more or less actual nightly usage, but provided a general idea about how many nights a member could travel on their card.
15 Day Membership
The introductory level to One Key World, the last published price for the 15 Day Membership was $39,900, an increase from $34,900. Members did not have any annual dues payments, but as the member traveled, nights were debited from the card.
25 Day Membership
The middle tier in the One Key trio of membership plans, members were allowed 25 One Key Nights for $59,900, a $10,000 increase from the original launch price for the plan. Like the other memberships within the club, nights did not expire.
45 Day Membership
The highest level within the club, members had 45 One Key Nights available whenever they pleased. When the club launched, 45 Day Memberships were available for $84,900 but increased to $99,900 in 2008.
Unfortunately, just after the club announced their 100th reservation in December of 2008, the club ceased operations, citing the poor economic climate of 2008 that also claimed rivals High Country Club and The LUSSO Collection amongst others.
"One Key has ceased its operations and is conducting an orderly wind down of its business. Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched," the club released.
Conducting a thorough due diligence review of any clubs you are considering is a requisite step in making the best decision possible regarding destination club membership.
MEMBERSHIP PRICING
Unlike the other destination clubs in operation when One Key World launched, the young club did not charge either a membership deposit nor annual dues per se to be a part of their club. Rather, members purchased pre-paid travel cards used to access the club's amenities.
Offered in 15, 25, and 45 "One Key Night" packages, members could travel as they wished with no expiration dates on their nights, taking a page from their Founder's previous firm, Marquis Jet, who sold jet time.
One Key World would operate on a points based system where the selected property and season would affect the number of nights required for a stay.
"Now the annual family winter trip to a highly coveted destination like Cabo San Lucas for a week may cost ten One Key Nights, while a four-night getaway to New York City for a couple during the fall may only cost three One Key Nights," said Founder Jay Sapovits.
15 Day Membership
The introductory membership package, members were given roughly 15 nights of access to the One Key World portfolio of properties. When the club launched, the 15 Day Membership was available for $34,900 but would increase to $39,900 towards the end of 2008.
25 Day Membership
For $59,900, members received roughly 25 nights of access to use at their leisure. When One Key launched, the 25 Day Plan was available for $49,900.
45 Day Membership
Following a similar progression, the 45 Day Membership increased their prices $15,000 in 2008, bringing the total price to $99,900.
All three memberships allowed members the opportunity to add additional nights to the card as they wished. If a member exhausted their card, they could simply leave the club.
Unfortunately, just as the club reached its 100th reservation, it was announced that One Key would close. In January of 2009, it was released that "One Key has ceased its operations and is conducting an orderly wind down of its business. Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched."
Several other destination clubs have adopted philosophies similar to One Key World regarding pricing, and for select clients, it can be a very interesting value proposition. For others, a more traditional model is likely the better answer.
ANNUAL DUES
On the fringe of the destination club model, One Key World strived to offer the same experience that other leading clubs offered but with a dramatically different club structure. Rather than owning the properties available to members, One Key would enter into strategic partnerships with luxury travel providers to allow members access to vacation homes, apartments, condos, and villas all over the world.
Created by Jay Sapovits, an early employee of fractional jet card provider Marquis Jets, One Key would combine the travel benefits of a destination club with the usage structure of a fractional jet card.
One Key World members did not have annual dues, but rather pre-purchased nights of access.
In late August of 2008, just a few short months prior to their closure, One Key World would adjust their pricing and provide "greater flexibility" for club usage.
Members had three different membership plans to choose from.
- 15 One Key World Nights - $39,900
- 25 One Key World Nights - $59,900
- 45 One Key World Nights - $99,900
During this price change in August of 2008, the club would also transition to a points based reservation system. Instead of debiting one night for every night in residence, the club would vary their cost based on the property and the season. "This change will allow One Key members to manage their nights more efficiently, and further customize their vacation experiences," said Sapovits. "Now the annual family winter trip to a highly coveted destination like Cabo San Lucas for a week may cost ten One Key Nights, while a four-night getaway to New York City for a couple during the fall may only cost three One Key Nights."
Members had access to "30 destinations and over 450 homes" with membership cards never expiring. These "debit cards" would have points pulled from them as a member traveled and members could replenish their cards as they wished or simply enjoy their membership until they no longer had any points available to them.
A structure like the one implemented by One Key World can be very advantageous for a select group of luxury travelers, including those that do not have a set travel schedule each year or those who traditinally rent properties for vacation purposes. For others who do travel during select weeks each year because of school schedules or other reasons, a more traditional destination club model may be of greater interest.
Unfortunately, One Key World was one of the multiple clubs that were claimed by the economy in early 2009, just after the announcement that they had made their 100th reservation.
A primary strength to this model is a new club can quickly establish a strong portfolio of properties without significant time or revenue. While One Key World may no longer be in operation, expect similar models and clubs to continue to emerge as the destination club industry matures.
PROPERTIES
The traditional destination club model revolves around members paying large membership deposits to join a club that are used to purchase resort real estate available to those members. One Key World would modify this design by not owning the properties available to members and subsequently reduce the cost to join their luxury travel club.
Created by Jay Sapovits, a former Marquis Jet executive, One Key World would blend the destination club model with fractional jet access, allowing members to purchase travel cards that would include nights of access to the club's portfolio of residences. The properties available to members would include resort properties procured by the club.
"Essentially what One Key is doing is bringing to the travel and accomodations space what my former company, Marquis Jet, did for the private jet world, which is reducing it down to a pre-paid, quality assured, one time fee in exchange for services delivered, in this case beautiful, gorgeous luxury homes with all the amenities you get at a resort," said Sapovits.
Members could purchase 15, 25, and 45 night travel cards and use as many or as few nights per year as they wished.
Based on this unique structure, One Key World is often referred to as a rental organization in addition to falling under the broad destination club title.
At it's peak, One Key World would include more than 500 properties available to members, all vetted by the club.
Included in the club's property list were a list of popular destination club locales, including:
- Cabo San Lucas, Mexico
- Tuscany, Italy
- St. Barths, French West Indies
- Telluride, Colorado
- Las Vegas, Nevada
- Punta Mita, Mexico
- Stowe, Vermont
- Maui, Hawaii
- Hilton Head, South Carolina
- Deer Valley, Utah
- Whistler, British Columbia
Without purchasing properties, clubs like One Key World can quickly establish a sizeable property portfolio and have lower monthly costs than more traditional destination club offerings. On the other hand, member traditionally do not receive any money back in these types of structures if they wish to leave the club.
Just after One Key announced their 100th reservation, the upstart club would cease operations, citing the economic climate of 2008.
USAGE
Providing the same experience as their competitors in the destination club sector, One Key World used a vastly different operational model. Rather than owning the resort real estate available to members, the club would enter into short term leases to meet the travel needs of their members.
The majority of other destination clubs require a large, up front membership deposit from members, which is used for the purchase of properties. As One Key World did not plan to own any of the club's real estate, these costs were drastically reduced.
Members of the club purchased pre-paid travel cards in 15, 25, or 45 night increments. Founder and Chief Executive Officer Jay Sapovits was a former Vice President of Marquis Jets. One of the leading jet card companies in the world, Sapovits took the fractional card idea and applied it to the destination club concept.
When a member joined, they would receive a card with their allotment of nights. As they traveled, nights were pulled from the club card. At any point they could replenish their card with additional nights of access.
While each of the club's three cards were identified by the number of nights provided, One Key World actually worked on a points based system towards the end of their time in the destination club industry. The amount of points required for a reservation were based on the property that a member selected and the season they wished to travel.
"Now the annual family winter trip to a highly coveted destination like Cabo San Lucas for a week may cost ten One Key Nights, while a four-night getaway to New York City for a couple during the fall may only cost three One Key Nights," said Sapovits.
Prior to this change, the membership did work on a one to one ration where each night of usage equated to one day being debited from the card. During peak holiday seasons, two nights were debited for every one night of usage.
Unlike other clubs who have a set number of nights that are used each year, One Key World members had no limit on the number of days that could be accessed annually. Members could travel as many days as they wished, subject to having nights still available on their club card.
A model built like One Key World benefits members who do not travel the same amount of time each year and do not like having large sums of money tied up with a club during their membership.
One Key World grew organically and saw some success, announcing their 100th reservation in December fo 2008. The trip was scheduled for January of 2009 to Palm Springs. Near the same time of the trip, the club announced that they would be closing.
"One Key has ceased its operations and is conducting an orderly wind down of its business," wrote the club. "Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched."
HOLIDAY ACCESS
Created by a former Marquis Jet Vice President, One Key World combined the benefits of destination club membership with the financial elements of a private jet card.
This spin on the more traditional destination club model did not require the club to purchase any properties, but rather would procure properties through an extensive partnership network. "We're not restricted to a pre-selected portfolio of homes and are focused solely on accommodating our membership," said Founder and Chief Executive Officer Jay Sapovits. "Because there are no long-term commitments, we know we have only one opportunity to deliver an unforgettable vacation experience."
One Key World members purchased pre-paid travel cards, granting them a number of nights of access to the collection of properties available through the club. Nights could be used at any time with no expiration date.
The nights purchased by club members came in several different increments, each with their own number of "One Key Nights." Based on the property and the season, different properties within the One Key collection would cost a different number of One Key Nights to help members "manage their nights more efficiently and further customize their vacation experiences."
This model does have some strong benefits, allowing members the ability to prioritize their vacation experiences, weighing the costs of peak period travel against their allotment of travel benefits. A growing number of destination clubs are now adopting similar structures, including the Ritz-Carlton Destination Club and The Discovery Club.
Unfortunately, One Key World was one of the clubs that were claimed as a result of the 2008 economic downturn, joining The LUSSO Collection, High Country Club, and Solstice amongst others.
Just a month after announcing their 100th reservation, One Key quietly ceased operations in January of 2009, but the mark that they made in the industry remains. Several destination clubs have adopted similar philosophies to the former club in their ability to combine various travel options into one cohesive model.
MEMBERS
When One Key World launched, Founder Jay Sapovits felt that a specific audience had yet to be captured by the rapidly growing destination club sector.
"One Key is the next generation destination club," said Jay Sapovits, the club's Founder and CEO. "We wanted to offer a simple and flexible solution that allowed travelers to make the most use of their membership, without the considerable upfront capital or long-term commitment."
Rather than charging a large, up front membership deposit as many of their competitors did, and instead evolve the model with a series of benefits for the weary destination club prospect, including:
- No large up front fees to join the club
- No annual dues to remain a club member
- No waiting to resign their membership
- No expiration dates on unsued nights
Bringing his experience as a former Vice President at Marquis Jets to the destination club industry, Sapovits designed the club to operate much like the jet card leader. Members would purchase pre-paid travel cards with no expiration date. To keep the costs to join the club low, rather than purchasing resort real estate, One Key would enter into strategic alliances with luxury residences and not own any of the club's properties.
"Quite simply, One Key gets you access to a variety of homes and destinations around the world," Sapovits said during an interview with Fox Business. "Essentially what One Key is doing is bringing to the travel and accomodations space what my former company, Marquis Jet, did for the private jet world, which is reducing it down to a pre-paid, quality assured, one time fee in exchange for services delivered, in this case beautiful, gorgeous luxury homes with all the amenities you get at a resort."
A solid alternative for those who did not want to put down a large deposit and be tied to a club for an extended period, One Key World approached 100 members over their tenure.
As 2008 came to an end, the club announced its 100th reservation, a trip scheduled for January of 2009 to Palm Springs. Unfortunately, at nearly the exact same time the trip was scheduled, One Key World announced that they would cease operations.
"One Key has ceased its operations and is conducting an orderly wind down of its business," the club released. "Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched."
The same "economic crisis" that led to the closure of One Key World also played an important part in the demise of other leading clubs in 2008 and 2009, including The LUSSO Collection, High Country Club, Yellowstone Club World, Solstice Collection, and several other clubs, new and established alike.
Based on the structure of the club, where large sums of money were not owed to members nor substantial real estate holdings involved in the wind down, One Key World managed to execute one of the most seamless closures in the history of the space.
RESIGNATION
One of the primary draws of joining One Key World was that there was no resignation or redemption for a member to go through.
"The problem with other destination clubs is that you are forced to make a long term commitment for something that doesn't need a long term commitment," said Founder and Chief Executive Officer Jay Sapovits. "With One Key World, we ask you to take two to three trips with us. As a destination club member, you are locked and loaded. You are with that club and you rely on them to continue selling if you want your money back. If you want your money back, you are on a waiting list. With us, you just don't have to return our phone calls."
To understand how One Key World operated, you must understand how their competitors functioned. In the traditional destination club model, members pay a refundable membership deposit when they join the club. These funds are used to purchase real estate for club members to access. Members are also obligated to pay annual dues that are used to maintain the club properties and for the other costs the club incurs. If a member elected to leave the club, they would be typically be placed on a "resignation list." For every three new members that joined the club, one member would be redeemed from the resignation list and repaid their refundable membership deposit.
In this structure, the club must continue to sell new memberships to purge the resignation list of exiting members.
One Key World did not have a refundable membership deposit nor annual dues, instead selling pre-paid travel cards that members used to access club properties. Instead of owning the properties available to members, One Key would lease residences as members needed them.
Selling 15, 25, and 45 night membership plans, members of One Key could travel until their cards were depleted. At any point during their time with the club, they could add more nights to their card to enjoy and these "One Key Nights" never expired.
If a member did wish to "resign" their membership, they would simply continue traveling with the club until they reached zero and not replenish their travel card. Members did not need to wait for more members to join the club or pay annual dues.
In January of 2009, One Key announced that they would close, citing the economic climate of 2008 and 2009. "One Key has ceased its operations and is conducting an orderly wind down of its business. Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched."
That same economic climate would claim other destination clubs, including The LUSSO Collection, High Country Club, and Solstice Collection.
Understanding your rights as a member during the resignation process and how a member exits the club is one of the most important portions of the evaluation process.
EXECUTIVES
Working with Marquis Jets, Jay Sapovits helped his company and Exclusive Resorts, the world's largest destination club, form a strategic alliance. Diving into the destination club model more thoroughly, Sapovits identified an audience that he believed had yet to be catered to.
"Essentially what One Key is doing is bringing to the travel and accomodations space what my former company, Marquis Jet, did for the private jet world, which is reducing it down to a pre-paid, quality assured, one time fee in exchange for services delivered, in this case beautiful, gorgeous luxury homes with all the amenities you get at a resort," said Sapovits in an interview with Fox Business.
Outspoken proponents of the benefits of their club model, several executives from One Key World emphasized their advantages in blogs and articles, including:
- More properties with new destinations continuously added
- Less up front fees than other destination clubs
- Less hassles than luxury rentals
One Key World would feature offices in several targeted areas around the U.S., with Vice Presidents at each to help grow the young club. The primary team responsible for One Key World included:
Jay Sapovits
Founder and Chief Executive Officer
Steven Kent
Co-Founder
Joel Schoen
Senior Vice President
Norm Katz
Vice President of Sales - California
Joe Concha
Vice President of Sales - New York
Andrew Ellwood
Vice President of Sales - Dallas
David Burg
Vice President of Sales - New England
Jessica Bickoff
Member Services
Tracey Scott
Office Manager
Josh Kudisch
Director of Hospitality
Despite the experience sales and hospitality teams, One Key World was unable to weather the economic storm of 2008 that claimed so many of their colleagues, including High Country Club, LUSSO Collection, and Solstice.
Just a month after the club announced their 100th reservation, One Key quietly released that they would cease operations.
NOTES FROM THE CLUB
One of the most optimistic and vocal supporters of both their club and the destination club concept, One Key World had many executives that were willing to discuss the benefits and risks of membership.
What they called "the next generation destination club," One Key combined several different elements in the design of their club. Founder and CEO Jay Sapovits, a former Vice President at Marquis Jets, took the jet card model overlaid onto the destination club formula. Instead of charging members a refundable membership deposit to join and annual dues for every year the member stayed with the club like nearly all other destination clubs, One Key World sold pre-paid travel cards to members. Members could purchase 15, 25, and 45 night membership cards and use the nights on the card as they wished with no expiration dates.
"We are a mix of vacation rentals and destination club quality assurance," said Sapovits. "From my perspective, it is the best of both worlds. Destination clubs provide consistent experiences across many vacation homes. The only reason that the destination club business model exists is vacation rental service models haven't gotten the experience aspect right. One Key World takes the vacation rental world without any of the pitfalls of doing everything yourself, combining in the destination club experience."
Once a member exhausted their card, they could simply leave the club and not have to deal with a lengthy resignation process like members at other clubs. At any point, they could replenish their card with additional nights of access. "The problem with other destination clubs is that you are forced to make a long term commitment for something that doesn't need a long term commitment," Sapovits said. "With One Key World, we ask you to take two to three trips with us. As a destination club member, you are locked and loaded. You are with that club and you rely on them to continue selling if you want your money back. If you want your money back, you are on a waiting list. With us, you just don't have to return our phone calls."
While One Key World is most commonly grouped under the rather broad destination club label, due to its structure, it also was commonly considered a rental company. To keep operational costs low, One Key did not own any of the real estate available to members, but would enter into strategic alliances with developers and other rental providers to create their portfolio of properties.
The club grew organically and announced their 100th reservation late in 2008, a January 2009 trip to Palm Springs. Virtually at the exact same time that the trip was scheduled, One Key World announced that they would cease operations, citing the economic storm that hit the destination club industry hard through 2008 and most of 2009.
Unfortunately, no notes from the One Key World executive team are available, but please read through our One Key World News pages to learn more about the former club and their forward thinking perspectives on the destination club sector.
PARTNERSHIPS
Utilizing a new model in the destination club sector, One Key World combined elements of luxury vacation rentals, private jet cards, and five-star services into the creation of their club.
When Exclusive Resorts, the largest destination club in the world in terms of members and properties, began discussions with Marquis Jet about a partnership, Jay Sapovits, a Marquis Jet Vice President, took a closer look at the destination club model. After researching the model in greater detail, Sapovits believed that there was a segment of the market that had yet to be realized and focused his efforts on creating a new club structure.
The club that resulted would be One Key World. Rather than owning the properties that would be available to members, the young club would enter into short term leases to meet availability. To keep costs low, members didn't have to put up a large, refundable membership deposits, as was the model used throughout the destination club industry, but rather purchased a pre-paid travel card to access the club's properties.
Describing themselves as "the next generation destination club," One Key World would focus on the experience of club members rather than property appreciation. "We're not restricted to a pre-selected portfolio of homes and are focused solely on accommodating our membership," said Sapovits. "Because there are no long-term commitments, we know we have only one opportunity to deliver an unforgettable vacation experience."
With the club largely built out of a partnership between Exclusive Resorts and Marquis Jet, it is only right for One Key to have a substantial partnership network. One Key would enter into agreements with luxury residence providers so that members would have an established base of properties available to them.
Late in 2008, the hybrid club would announce that they had just made their 100th reservation, a trip scheduled in January to Palm Springs.
Unfortunately, in January of 2009, One Key annoucned that they would close their doors. "One Key has ceased its operations and is conducting an orderly wind down of its business. Like many other businesses and individuals, One Key was subject to a once-in-a-lifetime economic crisis that has left few untouched."
Despite their departure from the sector, One Key World still left a mark on the model. During their time in the industry, several other destination clubs have adopted similar structures, such as The Emperum Club and Validus, A Destination Club.
PRESS RELEASES
Bringing a new model to the destination club sector, One Key World combined the destination club experience to the financial model of private jet cards. Instead of paying a refundable membership deposit to join, members would purchase pre-paid travel cards that allowed them access to a collection of affiliate properties. The club would lease properties as members needed them, drastically reducing club costs as no properties were actually owned.
Members could purchase cards for 15, 25, or 45 nights of access. As the member traveled, nights would get pulled from the card until it reached zero. Members could replenish their card whenever they wished, with no expiration dates on any of their nights.
Unfortunately, One Key World was one of the victims of the 2008 financial downturn and announced that they would cease operations in January of 2009.
Strong advocates of both the destination club experience and their unique model, One Key World were vocal leaders in the sector. Please feel free to access the club's press release archive below to learn more about the former club.
One Key Announces Booking of 100th Luxury Vacation
Date: December 15, 2008
The Boston based One Key World will soon surpass the 100 booking threshold with an upcoming trip to Palm Springs next month. Founder Jay Sapovits is proud of both the accomplishment and the satisfaction scores returned by members.
One Key Donates Luxury Travel Vacation to Children of Chernobyl Auction
Date: November 25, 2008
One Key World will be donating a three night stay at any of their over 500 multi-million dollar residences to a lucky raffle winner making a pledge to The Children at Heart Celebrity/Fantasy Auction supporting the organization Chabad's Children of Chernobyl.
One Key Sponsors Charity Hole-In-One Contest
Date: September 18, 2008
One Key is proud to continue its ongoing support of Big Brothers Big Sisters of Massachusetts Bay through their first annual golf tournament at the Wianno Club in Osterville, Massachusetts. The organization has raised nearly $1 million since 2003.
One Key Announces New Pricing Structure August 1, 2008
Play a Round With Jim Furyk June 25, 2008
One Key Executive To Speak At Industry Conference May 28, 2008
One Key Open House February 21, 2008
One Key Appoints New England Vice President of Sales January 28, 2008
One Key Expands St. Barth’s Home Portfolio January 16, 2008
One Key Adds Luxury Ranch January 16, 2008
One Key Announces New Dallas Vice President of Sales December 18, 2007
Ski Season Brings One Key Expansion in Vail Valley December 5, 2007
One Key Expands in Europe November 20, 2007
One Key Announces Norm Katz As Newest Vice President of Sales November 6, 2007
One Key Delivers Fresh Approach To Destination Club Model April 24, 2007