An increasingly popular luxury vacation alternative, destination clubs mix components of second home ownership with the country club model, tying in world class services and amenities traditionally attached to world-class resorts and five-star hotels. For a fraction of the cost of a downpayment on a single second home, members have access to a global collection of vacation properties, all without having to deal with the costs of paying HOA fees, insurance, and property taxes or the hassles of mowing the lawn or fixing leaky faucets while on vacation.
Members traditionally pay a refundable membership deposit and annual dues, similar to a country club, but as the industry continues to expand, a growing number of other structures have begun to take form.
Members not only receive near limitless access to the club's portfolio of luxury vacation properties, but also have access to personal travel planners who take care of every pre-travel arrangement, including booking airfare and creating travel iteneraries, and on-site concierges who stock the pantry and refrigerator with your favorite foods and offer insight into the destination's best locales and tourist stops.
Over a decade old, thousands of individuals around the world have now bought into the destination club concept. In the ten plus years since inception, nearly 100 different destination clubs have existed, each with their own unique benefits and business model. To learn more about each club, please visit our Destination Club Directory.
Included you will find a list of suggested due diligence questions to ask any club you are speaking with, as well as a background of the industry and the benefits and risks of membership.
Common questions
What is a destination club?
A destination club is a membership that gives access to a portfolio of luxury vacation homes shared with other members. Members traditionally paid a refundable membership deposit plus annual dues, much like a country club, and in return could book the club's homes and use its travel planners and on-site concierges instead of buying and maintaining a second home.
How much did a destination club membership cost?
Prices varied widely. In the archive, the Abercrombie & Kent Residence Club asked a refundable deposit of $225,000 and annual dues of $17,000 for 15 nights a year, rising to $495,000 and $42,000 for 45 nights. Banyan Tree Private Collection plans started at $120,000 with dues of $3,000, while Boundless Journeys Club charged no deposit and $5,000 a year.
What is the difference between an equity and a non-equity club?
In a non-equity club, the more common model, members can use all the homes but have no ownership interest in the club or its properties. In an equity club, members own a share of the club or its properties and can benefit from any appreciation in property values. Some equity clubs could only sell to accredited investors.
What should you ask before joining a destination club?
The archive repeatedly pointed readers to the club's financial position: its debt compared with its equity, how membership deposits are used, whether it publishes audited financial statements, how many new members must join before a resigning member is repaid, the background of its executives, and what would happen to deposits if the club went bankrupt.
How many destination clubs were there?
According to the original site, nearly 100 different destination clubs had existed in the first ten years or so of the industry, each with its own benefits and business model. The directory on this site holds files on the clubs it tracked.