Destination Club: Right For You?
Good Deals Available for Wealthy, Trip-Savvy Retirees
Tips About Pros and Cons of Membership in Exclusive Resorts, Ultimate Resort Quintess, Portofino or a Similar Group.
Among affluent boomers and seniors, joining a destination club has taken hold. To some travelers, however, the system is confusing. It pays to make a careful study before buying a membership.
Basically, destination clubs let travelers who like luxurious surroundings -- especially retirees, almost-retirees, restless travelers and those with flexible schedules -- enjoy a variety of settings and homes during trips within the Americas and abroad.
Major clubs include: Exclusive Resorts, Ultimate Resort, the LUSSO Collection, BelleHavens, Quintess, Private Escapes, Portofino and Solstice.
PRO: Ultra-luxurious homes
Membership in clubs like Exclusive Resorts and Ultimate Resort gives you access to a portfolio of multi-million dollar single family residences, hotel-type suites and townhomes or condos in resort or vacation meccas that you and your family can visit year-round.
CON: Expensive
They typically operate along the lines of a country club; you pay a large amount up front to become a member – from $50,000 to $3-million -- plus dues that can range from $7,700 to $65,000 a year.
PRO: Hassle-free Vacations
The destination club has emerged as an alternative for those who love to travel and have the money to buy a second or third home, but don’t want the hassles of maintenance and upkeep, and want the chance to experience additional locales. Many clubs have bought residences in such mountain resorts as Aspen and Jackson Hole, Caribbean retreats such as St. Thomas and Nevis, cities such as New York, London and Paris and seaside areas such as Maui and Miami Beach.
CON: You Might Not Get First Choice in Peak Season
Destination clubs are based on shared use of homes. Says the Website Helium Club, it is ”imperative that prospective members understand they’re unlikely to reserve the same home, for the same week every year." You may have to reserve up to a year in advance or on the spur of the moment.
PRO: Good Deal for Frequent, Flexible Travelers
An analysis by Helium Report indicates that destination clubs cost a member less on average than staying at extremely pricey resort hotels, provided the member uses the club at least four weeks a year. Over a 10-year period, says Helium, membership comes out to less than the cost of a $3-million vacation home in a desirable location.
CON: Questionable Return on Investment
The structure of each destination club differs. Some offer actual equity, so you might benefit from real estate appreciation, while others do not. With most clubs you cannot resell your share on the open market as you can with an old-fashioned timeshare. The key, say clubs, is to regard this as a lifestyle choice, not an investment.
