While the turbulent financial markets coupled with the non-launch of Diamante Residences and Vita Luxury's cancellation may keep some more perceptive and risk-averse members from joining a start-up destination club, there are also some strong reasons to consider doing so right now, as well. Here are some of the points to consider on both sides of the coin:
Superior Founding Member Benefits
All of the leading destination clubs started small at one point, and founding member benefits can be staggeringly compelling. Currently, founding members of the Botiga Destination Club, operating in Europe, receive two years of waived membership dues. Abercrombie & Kent Residence Club founding member benefits include additional time for family usage and expanded use of the club’s tours and other adventure travel. Typically, initial membership deposits and fees are much less, and may, in the case of Lusso Collection’s founding membership offers, include upside when members exit from the firm.
Lower Capital Access and Greater Financial Risk
On the other hand, new firms represent greater financial risk, as their business models are unproven and access to equity capital may be lower as well. Just ask members of the Portofino Destination Club, which filed for bankruptcy in 2008. The membership deposits of both new and existing destination clubs are ultimately backed by the club’s real estate holdings.Portofino’s leasing strategy, as well as their inability to attract outside capital, led the firm’s executives to re-leverage the company’s owned assets. When Portofino filed for bankruptcy, the company had no assets remaining.
Greater Influence on Club Development
One of the attractive benefits to joining a newer destination club is that, as a founding member, your opinions will necessarily translate into action much more quickly than at larger, more established firms. Young clubs are always looking for member feedback to shape everything from destination selections to usage policies. Many clubs offer roles on their Board of Advisors where you can directly interact with club executives to help shape the club moving forwards.
Growing Pains
As a founding member, expect to find some of the membership policies to be a bit incomplete. With much, if not all, of the club’s staff and executives new to the destination club industry, some policies such as reservation windows and advanced bookings may not be complete until the club can accurately gauge availability and usage patterns. As a founding member, you may see rule and policy changes as the club begins to better understand their members’ needs and travel patterns.
Executive Access
At smaller firms, it’s much easier to reach the decision-makers. Expect to have ready access to the CEO, Financial Officers, and other executives. In fact, smaller destination clubs may be comprised of few employees beyond these key officials. Staffing costs are one of the highest expenditures for destination clubs, and as new clubs begin to establish themselves in the industry, most clubs will exist solely with these employees until they see faster growth.
Fewer Destinations
One of the downsides of joining a younger destination club is the relatively lower number of homes available for travel. While it is important to consider how many properties you will actually travel to in your first year of membership (most members would do well to get to 5-6 different locations each year), at least 3-4 of those locations should have keen appeal for you.
Superior Access
While you will have fewer destinations to choose from as a founding member, you will also have fewer members competing for those residences. Many clubs launch with a robust selection of luxury vacation homes, dramatically beyond their published member to property ratio. Depending on your club’s growth, you will probably see at least one year of near-limitless access to the club’s portfolio of homes as the club seeks new members.
Investment Opportunities
Members of new destination clubs often act as investors in both the club and/or the club’s real estate. If you believe in the club’s business model, real estate, and forecasted growth rate, investing in a destination club can be a wise decision. One of the most crucial components of a new destination club is their capitalization. As firms seek to acquire capital for new homes and to cover ongoing expenses during their introductory phase, some may reach out to members rather than higher interest and more difficult to find equity capital.
Industry giants like Exclusive Resorts and Ultimate Escapes were once at the same point that Botiga, Grand Resort Properties, or Moncasa Caribbean Experience are now. Through sound operating policies, savvy real estate purchases, and a satisfied referral-generating membership base, these clubs have established themselves as power players in the industry.
If you believe in the club and its business model, joining an emerging destination club can allow you to capitalize on founding membership benefits and enjoy unforgettable luxury vacations for the life of your membership. If you are concerned about the club’s sustainability and would rather trade potentially stronger benefits for security of your membership deposit, watching and waiting is probably the best decision.
Original Article
http://www.theverasgroup.com/index.php?pr=Destination_Club_News-Benefits_and_Risks_of_Joining_a_New_Destination_Club
Showing posts with label joining a destination club. Show all posts
Showing posts with label joining a destination club. Show all posts
Monday, October 13, 2008
Wednesday, October 8, 2008
Vita Luxury Destination Club Closes | The Veras Group
Vita Luxury, a self proclaimed “Destination Club 2.0,” is no longer in operation. E-mails were bounced back and phones at Vita Luxury were not operational. Their website design firm confirmed “They have moved their offices to the Bahamas and currently are not active with Vita Luxury. There are no contact numbers for Vita at this time as they are focused on other ventures.”
Vita Luxury claimed to have several very satisfied members that wrote glowing reviews and engaged in podcasts proclaiming their delight with Vita Luxury’s services and amenities, all despite the fact the club published that they would launch at the end of 2008. This “non-launch” joins Diamante Residences’ canceled launch as another new firm unable to make a start in the destination club industry. The Vita Luxury members providing these reviews posted only once each and have not been heard from since.
The club claimed to provide a wide spectrum of amenities, including guaranteed availability of residences, professionally trained butlers, maids, drivers, and chefs, an on-demand airfleet available 365 days per year at greatly reduced rates, and access to luxury watercraft and cars. Members could resign and rejoin the club whenever they wished by paying a registration fee of either $10,000 or $20,000 depending on their membership plan. Also based on their membership plan, members would pay a flat day rate to access the club’s properties.
Unfortunately, a staple throughout the Vita Luxury website is the company disclaimer: “Images and descriptions of Vita estates, Vita suites and resorts included within this website are examples of properties that may be used by Vita members or are comparable quality and style properties and accommodations. Vita retains the right to amend or alter any of the Vita locations at any time in its sole discretion.” Members paid $1,500 per hour for charter jet services, enough to pay for the fuel costs, landing and related fees. Pilots were complimentary. Similar fares for private jet travel are four times that what Vita Luxury charged. Watercraft would be stocked and ready to go at beach properties. Bentley Arnages and Flying Spurs would be at select Vita Luxury residences. Executive SUVs would be used for mountain residences. In resort locations, Vita kept a “fleet of limousines that will gracefully allow you to explore every destination or travel between destinations and ensure your schedules are always adhered to.” Your luxury driver remained on call 24 hours a day to whisk you off to wherever you wished.
From the Vita Luxury Frequently Asked Questions, “We have all heard the adage ‘Too good to be true,’ and typically we would agree. So what’s the catch with Vita? Well, we can’t find it and we challenge you to try us and see if you can find it yourself.”
The catch was Owner Thanos Papalexis left a trail of creditors in his wake between Vita Luxury, a former club called Grand Legacy Club, and other similar club ventures. Over $2 million in court judgments were awarded to parties suing Privee International, a previous venture, and Mr. Papalexis. Both Papalexis and business partner at Grand Legacy Club, Daniel Gorman, have past legal problems involving fraud. Gorman plead guilty to defrauding the Florida Citrus Commission out of $85,000 prior to his involvement with Grand Legacy. Scott Phillips, a vendor for Grand Legacy Club who supplied charter jet services said, “The guy is broke and can’t pay his bills,” speaking about Papalexis. “He was trying to use this airplane as part of his smoke and mirrors routine to lure investors.”
Vita Luxury employees don’t speak much better of the firm. “Vita Luxury and its owner Thanos Papalexis is/are complete frauds. Their website is a complete fraud. They own no homes, no cars, no boats, and no airplanes. Many of us had to leave because they ran out of money,” published a Vita Luxury employee, adding “What a scam.”
Industry insiders and consumers alike questioned the Vita Luxury business model since their public launch announcement. Thanks to organizations like the DestinationClubForums, there has been a continued vigilance by most destination clubs to be more forthcoming about services available to members and pricing structures. The Destination Club Association has also made headway in defining stable operating benefits, to which many of the leading firms adhere, including Exclusive Resorts, Ultimate Escapes, Quintess, Solstice Collection, High Country Club, Lusso Collection, and Abercrombie & Kent Residence Club.
Nonetheless, joining a destination club continues to be a time consuming and complicated process. If you would like to learn more about the destination club industry, please contact The Veras Group, your complimentary resource for destination club news and advising.
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your destination club purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders' advice from industry veterans, insightful due diligence support, thorough destination club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.
Please reach one of our destination club advisors at 877-VERAS-07 or 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website http://www.theverasgroup.com/.
Join us: we know the way.
Vita Luxury Destination Club Closes Destination Club News
Vita Luxury claimed to have several very satisfied members that wrote glowing reviews and engaged in podcasts proclaiming their delight with Vita Luxury’s services and amenities, all despite the fact the club published that they would launch at the end of 2008. This “non-launch” joins Diamante Residences’ canceled launch as another new firm unable to make a start in the destination club industry. The Vita Luxury members providing these reviews posted only once each and have not been heard from since.
The club claimed to provide a wide spectrum of amenities, including guaranteed availability of residences, professionally trained butlers, maids, drivers, and chefs, an on-demand airfleet available 365 days per year at greatly reduced rates, and access to luxury watercraft and cars. Members could resign and rejoin the club whenever they wished by paying a registration fee of either $10,000 or $20,000 depending on their membership plan. Also based on their membership plan, members would pay a flat day rate to access the club’s properties.
Unfortunately, a staple throughout the Vita Luxury website is the company disclaimer: “Images and descriptions of Vita estates, Vita suites and resorts included within this website are examples of properties that may be used by Vita members or are comparable quality and style properties and accommodations. Vita retains the right to amend or alter any of the Vita locations at any time in its sole discretion.” Members paid $1,500 per hour for charter jet services, enough to pay for the fuel costs, landing and related fees. Pilots were complimentary. Similar fares for private jet travel are four times that what Vita Luxury charged. Watercraft would be stocked and ready to go at beach properties. Bentley Arnages and Flying Spurs would be at select Vita Luxury residences. Executive SUVs would be used for mountain residences. In resort locations, Vita kept a “fleet of limousines that will gracefully allow you to explore every destination or travel between destinations and ensure your schedules are always adhered to.” Your luxury driver remained on call 24 hours a day to whisk you off to wherever you wished.
From the Vita Luxury Frequently Asked Questions, “We have all heard the adage ‘Too good to be true,’ and typically we would agree. So what’s the catch with Vita? Well, we can’t find it and we challenge you to try us and see if you can find it yourself.”
The catch was Owner Thanos Papalexis left a trail of creditors in his wake between Vita Luxury, a former club called Grand Legacy Club, and other similar club ventures. Over $2 million in court judgments were awarded to parties suing Privee International, a previous venture, and Mr. Papalexis. Both Papalexis and business partner at Grand Legacy Club, Daniel Gorman, have past legal problems involving fraud. Gorman plead guilty to defrauding the Florida Citrus Commission out of $85,000 prior to his involvement with Grand Legacy. Scott Phillips, a vendor for Grand Legacy Club who supplied charter jet services said, “The guy is broke and can’t pay his bills,” speaking about Papalexis. “He was trying to use this airplane as part of his smoke and mirrors routine to lure investors.”
Vita Luxury employees don’t speak much better of the firm. “Vita Luxury and its owner Thanos Papalexis is/are complete frauds. Their website is a complete fraud. They own no homes, no cars, no boats, and no airplanes. Many of us had to leave because they ran out of money,” published a Vita Luxury employee, adding “What a scam.”
Industry insiders and consumers alike questioned the Vita Luxury business model since their public launch announcement. Thanks to organizations like the DestinationClubForums, there has been a continued vigilance by most destination clubs to be more forthcoming about services available to members and pricing structures. The Destination Club Association has also made headway in defining stable operating benefits, to which many of the leading firms adhere, including Exclusive Resorts, Ultimate Escapes, Quintess, Solstice Collection, High Country Club, Lusso Collection, and Abercrombie & Kent Residence Club.
Nonetheless, joining a destination club continues to be a time consuming and complicated process. If you would like to learn more about the destination club industry, please contact The Veras Group, your complimentary resource for destination club news and advising.
The Veras Group is the only unbiased destination club news, consulting and brokerage firm. As our client, we accompany your destination club purchase from start to finish: customized reviews of your travel needs, unrestricted access to our expert advisors, insiders' advice from industry veterans, insightful due diligence support, thorough destination club comparisons and points of difference, and the best available terms & pricing on your membership, all at no cost to you.
Please reach one of our destination club advisors at 877-VERAS-07 or 970-449-4680 to learn more about the industry, specific clubs, and our service, or visit our website http://www.theverasgroup.com/.
Join us: we know the way.
Vita Luxury Destination Club Closes Destination Club News
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