As destination clubs began to show success and quickly emerged as viable options in the luxury travel segment, rumors began throughout the industry that many of the leaders in the travel and hospitality sector would make a foray into the destination club industry. It took longer than expected, but the Ritz-Carlton Destination Club officially launched late in April of 2009.
The club offers two distinct membership types, the Home Club Membership and the Portfolio Membership. The Home Club Membership mirrors the model of the Ritz-Carlton Club where members are fractional owners of a residence. The Portfolio Membership more closely resembles the standard destination club model used throughout the industry.
"Over the last decade of establishing a second home alternative for our current Ritz-Carlton Club Members, we developed intimate and rewarding, one-to-one relationships. With this commitment to deliver luxury vacation homes with a heightened, flexibility while also maintaining the exclusivity our Members have come to expect," said Peter Watzka, The Ritz-Carlton Development Company's Executive Vice President and CEO in the club's launch press release.
Utilizing a points based system where members reserve properties in the portfolio by using their annual allotment of points, each trip has a variable point cost based on the property, season, and day of the week. Also divergent from the standard destination club model is the club's unique redemption policy.
While most destination clubs function as a "right to use," the Ritz-Carlton membership is "the member's asset." Members can sell their membership on the open market for whatever price they see fit, with the Ritz-Carlton Destination Club having right of first refusal.
Members can also can exchange up to 25% of their points for usage at the global collection of Ritz-Carlton hotels.
Still in the Founding membership phase, the club is currently offering special pricing and incentives to the club's first 100 members.
Under Marriott Vacations Worldwide
In November 2011 Marriott International spun off its timeshare and fractional business, including the Ritz-Carlton Destination Club, as a separate public company, Marriott Vacations Worldwide.
Questions about Ritz-Carlton Destination Club
When did the Ritz-Carlton Destination Club launch?
The club officially launched its destination club program in late April 2009, after years of industry speculation that a major hotel brand would enter the market.
How did Ritz-Carlton Destination Club membership work?
There were two types. The Home Club Membership followed the Ritz-Carlton Club model, in which members are fractional owners of one residence. The Portfolio Membership worked like a standard destination club, using annual points whose cost varied by property, season and day of the week.
Can members sell a Ritz-Carlton Destination Club membership?
Yes. Unlike most clubs, which sell a right to use, the club described membership as the member's asset. Members could sell it on the open market at any price, with the club holding a right of first refusal.
Can points be used at Ritz-Carlton hotels?
Members could exchange up to 25 percent of their points for stays at Ritz-Carlton hotels worldwide.
Who owns the Ritz-Carlton Destination Club today?
In November 2011 Marriott International spun off its timeshare and fractional business as a separate public company, Marriott Vacations Worldwide, whose brands include The Ritz-Carlton Destination Club.