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Destination clubs

Destination clubs have been increasing in visibility over the past few years. They provide a good alternative to luxury vacation homes - in fact, some destination club owners have sold their second homes when they join a club. If you're thinking of buying a vacation home or joining a destination club or one of the other vacation home alternatives, read through the factors below before making your choice.

What are destination clubs?

Destination clubs provide access to a whole portfolio of high-quality, fully serviced, spacious, luxury vacation homes in a variety of locations around the world. They afford the peace of mind that each home will be maintained to a consistent, very high standard. Many of the clubs also offer other member-only travel opportunities, in addition to the nice vacation homes; these can include exotic adventure travel, safaris, cruises, and luxury hotel partnerships. With their expanded offerings, the clubs may also refer to themselves as "luxury vacation clubs" or "members-only travel clubs".

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Structure

In destination clubs, members simply enjoy the travel experiences and luxury vacation homes and have the right to use all the club’s properties and services. The members do not own the real estate and therefore do not have shared ownership in the club or a potential loss or gain in the club’s property value. Most of the rental based destination clubs therefore have a low joining fee, but none of this fee is refundable on resignation. Members of these clubs regard their membership as buying access to an exclusive portfolio of luxury homes, residences and related services.

Locations

Destination club properties are usually in sought-after locations that provide a variety of high-level amenities and activities. Beachfront properties are always popular (e.g., Hawaii, the Caribbean, Florida, the Mediterranean) and so are mountain hideaways with access to great ski slopes (e.g., Vail, Aspen, Deer Valley, Swiss Alps). Destination clubs can also be found in major cities, such as New York, Chicago, London and Paris. Locations in leisure resorts offer superb golfing, spa, and other relaxation opportunities, while urban apartments provide luxurious city accommodation and access to all the cultural features that major cities can offer.

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Member services

Clubs typically provide a full range of services both before and during a stay, so that members can enjoy relaxing, stress-free vacations. Member services staff help members with all their pre-trip planning, making flight arrangements, and organizing ground transportation. Prior to the member's arrival, the kitchen can be stocked with both groceries and beverages that the member requests. A similar service will be available in the living areas, with books, games, entertainment, and even fresh flowers provided according to the member's wishes. Daily or weekly housekeeping is also part of the package. A local concierge will be on hand to arrange tickets and reservations for any activities that the members would like to participate in. This can include tee times at the local golf course, spa bookings and dinner reservations at exclusive restaurants, amongst many others. Clubs will also arrange for a personal chef to come in and cook either a special meal or every meal, if that's what a member would like. Anything that might be needed to accommodate small children (highchairs, playpens, safety gates) can also be installed, and nannies, babysitters or tutors can be organized for older kids.

Types of properties

As a guide to the standard of property available, the homes have a typical market value of US $1,000,000 to $5,000,000+ with different clubs offering various levels of homes. In metropolitan areas, the accommodation will have a floor space of around 1,500 sq. ft. Beachfront and more rural retreats have more land in general, so floor space can be anything up to 6,000+ sq. ft. The city locations tend to be made up of luxury condominiums and feature all the associated amenities. Beachfront and scenic retreats are usually freestanding houses with 3, 4, 5+ bedrooms, often surrounded by well-tended gardens and secluded enough to offer a real sense of privacy. The spacious nature of the homes is perfect for large families and groups of friends to all vacation together.

Availability

Destination clubs enable members to visit any club property for a certain number of days or weeks per year. Each club has its own reservation process which can vary with the level or type of membership. These define how far in advance a member can reserve time and how much time a member can book at once.

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Membership costs

The cost of joining a destination club can be split into three categories: the initial payment to join, annual membership dues, and nightly fees for staying in the accommodation. These amounts vary enormously depending on the club, its business model, the properties in its portfolio, and the level of membership.

Initial membership fees in a destination club vary from below US $20,000 to over $500,000 but are still typically lower than a 20% down payment for a comparable luxury vacation home - in some cases much lower. For examples of the initial fee, days of use, and the average home values, click on our “Compare destination clubs” link below.

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Destination Club and Residence Fund Guide

For an in-depth understanding of destination clubs and residence funds, download our free guide. This report offers details about the various types of clubs and membership plans, how reservations work, the financial aspects you'll need to know, how these two vacation home alternatives compare to luxury second home ownership and questions you should ask when looking to join a club. We do ask you to register to access the Guide.

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Destination Club and Residence Fund Guide

For an in-depth understanding of destination clubs and residence funds, download our free guide. This book offers details about the various types of clubs and membership plans, how reservations work, the financial aspects you'll need to know, how these two vacation home alternatives compare to luxury second home ownership in terms of cost and questions you should ask when looking to join a club. We do ask you to register to access the Guide.