DC4MS

September 2008 - Volume 1, Number 5 Published monthly for Ultimate Escapes ®

Greetings from Steve

Welcome to the Ultimate Traveler. The last year and a half has been very exciting for the club and our members. We are constantly adding exciting locations and additional new members. We are now over 1,300 members, and have established ourselves as the market leader in the luxury destination club industry. With 140 properties, 50 destinations, 130 boutique hotel partners, our members continue to "Experience the Vacation of a Lifetime, Every Time".

Read on for more about our exciting new additions, member vacation experiences, and new travel availability and excursions....

Ultimate Regards,
Steve Healy
Senior Vice President, Sales
407-483-1903
Steve.Healy@ultimateescapes.com


Jim Tousignant (left), President and CEO of Ultimate Escapes, with Member Doc Rivers (right), head coach of the NBA champion Boston Celtics at the Doc Rivers Golf Invitational

New Property Additions

Good news! We have 2 new Steamboat residences available for booking! Members can now book reservations for arrival beginning September 15.
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New Signature residence in Steamboat Springs

Ultimate Events

Catch up on a recent Ultimate Escapes member event in Toronto, and a celebrity-filled golf event featuring Ultimate Escapes Member and NBA champion coach Doc Rivers.
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Vacation Spotlight

Cruise south of the border as members Michael Ruma and Kari Kowalski-Ruma share how they brought four friends for a Caribbean vacation on Ultimate Escapes’ yacht, La Buscadora. Then join the Shaia family as the sites and activities on Nevis create an incredible setting for renewing their wedding vows...
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The Ruma's yachting vacation in the British Virgin Islands

September Sign-Ups

There's no better time to join Ultimate Escapes. Our membership prices are increasing up to $20,000 per plan on September 30th. Contact us now and enjoy our membership benefits today!

Destination Availability

September is a great time to take advantage of our popular properties without the crowds. If a more relaxing, quiet vacation is what you have in mind then this is the perfect month to contact your Escape Planner, pack your things and enjoy a large selection of destinations, all open for booking. Check out our easy-to-read availability chart for September...
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Scottsdale is one location with plenty of availability in the next few weeks
Contact Us

Steve Healy:
(407) 483-1903
Steve.Healy@ultimateescapes.com

Ultimate Escapes
3501 W. Vine Street, Suite 225
Kissimmee, FL 34741

Local: (407) 483-1900
Fax: (407) 483-1935
www.UltimateEscapes.com

Ultimate Escapes ®
3501 W. Vine St., Suite 225, Kissimmee, FL 34741
1-877-955-1900 www.ultimateescapes.com

Desties

Well, at least the club is subtly disclosing that several PE members aren't sticking around in its marketing materials to the outside world.

"We are now over 1,300 members," reads this week's email.

"When we ask our 1,350 members," begins the 8/22 email.

"Our 1400 members now enjoy access," goes the 8/15 email.

I'm hopeful that the tally will bottom out later this month, once those who don't turn in the paperwork are scratched from the rolls.

It is then when the numbers will start growing again. After all, the PE members who have chose to stick around can't leave for 18 months. The T&H members have nothing to gain by leaving within the next 3-4 years. That pretty much leaves the small organic UR base as potential churn.

The Wall Street Journal ad this week points to a $20,000 price hike at month's end, which may explain the strong advertising push this month. As bad as the past few months have been (for PE members), the club may now be days away from a smaller yet stronger position where the membership rolls should be stable, giving the real estate market and economy a shot to bounce back in two years.

The handoff process hasn't been pretty, but these past few rocky months may be the impetus for what may be one of the more stable clubs in the near-term.

Kagehitokiri

x

LTTravel

It's interesting that they call the old Steamboat Residence, which was originally Signature, and then moved up to Elite and now back to Signature, a "new residence"
They added only one new residence but claim they added two

Aladdin69

I'm curious as to how you see the membership process growing and stabilizing now that the merger mania is somewhat over? The strength of most clubs marketing process is the organic growth from their member base! UE /PE has apparently lost at least 100 members, and many of the rest of the PE leftovers signed their docs under protest, and without any real conviction! UE canceled at least 2 of their recent prospective member socials due to the fact they couldn't rally any local members to come and pitch the prospects?
Our national economy is in a "free fall", and the real estate markets are tumbling.... The #1 demographic for the DC's is the finance /money guys...#2 is the medical market! Most folks with $$$ , are showing their conscience and
not spending on the frills....

I'm curious how you see the membership stabilizing? The "meat", of UE's marketing is their Signature and Premiere level clubs.... This is their niche' in the DC world.... but, these are the folks that are going to be most affected by the unsettled financial markets and falling real estate markets!! UE cannot compete in the premium level with Lusso , Quintess, and the others that offer better value and amenities ... and most definitely, better quality residences , at higher price points!! Look at their portfolios, compare their true annual costs on an ,"apples to apples", comparison.... and most importantly .... check their availability compared to UE's Elite Program? They all allow a tour of their calendars and the opportunity to preview their products! Has anyone seen a disappearance of availability lately in the UE calendars??

The real question IS.... Would anyone in the market for a destination club membership, really choose Ultimate Escapes over the other clubs? My guess is, if they do their "due diligence", and read ALL the available information....
they will either sit on their hands, or go elsewhere!! If they are looking for a premium level club....they will definitely GO with one of the other more stable clubs?

There is NO foundation for any growth at UE..... certainly not in the near future! No growth in membership....no new offerings in the portfolio etc...
I think DC's in general are in for a rough ride!! What was it that Scarlet said in Gone with the Wind?? "I'll think about it tomorrow" !!

3DH

"After all... tomorrow is another day".

__________________
"Boutique" is better! Another extremely satisfied LUSSO member!

LTTravel

Things are rough for the economy as a whole. If you had purchased a $3 million home two years ago you would may have lost more in the value of that vacation home than your entire membership fee in a DC. In the long term, DC's are still the best vacation option for me and much better than buying a vacation home, going to a hotel or renting a home. I have several vacations planned in the future and am looking forward to all of them. Compared to my friend who is still looking on VRBO trying to find a home or my other friend who needs two rooms at a resort at exhorbatant rates or my three other friends begging me to give them week in my Corporate membership DC. The last home my friend got through VRBO, though he says was nice, looked like a dump to me, and he paid much more than the net cost of a DC. My other friend paid more for one room with three kids piled in at the Ritz Grand Cayman than I paid for a 4 bedroom villa. I just hope that all the DC's make it through these rough times because in the long run, I think that they will be the best bet. Even UE offers better vacation options that are available outside of the DC realm. UE may not be as good as PE was, but still offers some features that are not offered in others. It may be healthier to have a more positive attitude. My suggestion would be to assume that you lost everything (just imagine you had purchased a vacation home that lost 20% of its value rather than joining a DC) then what is left looks alot better.

Desties

Suggesting that Lusso or Quintess offers better "value" is a pretty subjective term. Lusso and Quintess are awesome clubs, but the reason why there isn't just one club is because everyone has different expectations for what they want in a club. Lusso now has the unlimited market cornered. A&K is stepping in with a marquee high-end travel brand. ER is the leader.

If you are suggesting that other clubs are offering more for less -- I would certainly not agree -- yet at the heart of that statement is the likelihood that the new UE model would be the most profitable. I also don't agree with that either, by the way.

I think you're approaching UE the same way that I initially viewed ER. The gall to charge extra for holiday weeks. The nerver to go to a 75% redemption model. Still, it's obviously doing plenty of things right if it's the top dog. The homes are great. The members are happy.

We don't know the exact number of PE Legacy members who bolted. The "at least 100" may be stretching the difference between 1400 and "more than 1300." Either way, I'm with you in that this is not a positive (and one that I imagine would get worse once the rest of the shellshocked non-signers are counted). It will obviously take time to go through the hundreds of new members to pay off the members on the resignation list.

How can UE fix this? How can it grow? Marketing is a big part. How else did ER get so big with a pricier model? Those of us who have been disenchanted with the process have either moved on or are back on board. I know I have gotten over my distaste for how things were handled. I've moved on, embraced the UE Signature membership (as PE Legacy), and am glad to see the club marketing itself at a time when most clubs appear to be dramatically cutting back.

Why is there NO foundation for growth? The UR -- now UE -- product remains largely unchanged. It was just the 450 PE Legacy members who were bellyaching, and that product doesn't exist anymore. UE is marketing itself as the club with the most destinations and THAT is a selling point to a lot of people who approach the DC concept as an alternative to vacation homes because of the variety.

I've said it earlier this month, but the UE club going forward may be the best positioned club. All of the PE Legacy members who signed on are locked in for at least 18 months. The Tanner & Haley members who make up the bulk of the UR members, have financial incentives to stick around for another 3-5 years. Is there any other club that has that kind of built-in anti-churn dynamic? Beyond the PE members who aren't sticking around this summer -- and no disrespect there, as I was close to being one of them -- UE is in pretty good shape to ride out the market doldrums which should be better in 18 months, and definitely far better in 3-5 years.

willmyclubmakeit

There is also a pretty good value difference between UE Signature and ER or others to consider....top flight destinations, 100+ homes, lots of happy members, a pretty decent occupancy percentage (for both the club and members)--are all good signs.

Obviously the best deals went to the early adopters--who took the most risk--but UE's price and terms as well as service and destinations are still at or near the top for the $2 million homes, probably #2 at the $1 million homes, and in the game as #2, 3 or 4 at the $3 million homes---but it has options that allow people to move between all of these which is unbeatable and it does not charge $75,000 non-refundable to get a holiday reservation.

Aladdin69

Yesterday is a History....and tomorrow is ...a Mystery !!!

willmyclubmakeit

as always...I wish you were on the ship with us but given the tone of your messages I presume you are in a life boat.

Aladdin69

Certainly ..there is a lot to think about here! UR grew through the acquisition of T& H, and now thru the acquisition of PE!! How many members did they actually sell on their own? I'm no marketing genius , but looking at their collateral material and their website.... I'm amazed!! You ask how ER is doing it... or Quintess and Lusso? They all have very well thought out and well designed marketing efforts!
They also sell SERVICE and STYLE! They all have gorgeous homes in great locations , most of which they actually OWN!! Much like top tier brands in the hotel industry... they do charge a lot of $$$, but most offer the customer great service and style! People with money want all that and more! They don't beat up their clients , and make them clean their own rooms , or charge extra for concierge services? Jim T's mind is on the middle market! He knows that's his strength, and I think he WAS correct, until that market got BEAT UP.... and will continue to suffer for at least 18 months , and most likely much longer!

Again....I'm NOT advertising for the other clubs here, just pointing out that in real terms....UE will not compete at the top tier levels, and will continue to suffer at the hands of all the recent Wall Street destruction!
Take the new $450,000 Elite plan with 60 days of usage and a $46,000.00 annual fee! Compare the offerings and amenities of the other clubs, and tell me that UE is competing ? Relative to the Signature Level, I hear you ....
Probably the best they have to offer! I know this is where they feel their growth is.... but, a DC is NOT a necessity of life, and many potential members will be sitting on the sidelines for a while licking their wounds! Premiere is in a similar and possible worse position, and will NOT grow for some time! Just my humble analysis ?

We all want UE to grow and continue to offer us great vacations and great value.... In order to do that there has to be a great foundation of happy members, great properties and wonderful service! I'm sorry...I do NOT see that here?

Do you think there is any coincidence that Jimmy T looks like Truman Capote?
"In Cold Blood", seems like an appropriate corporate mantra for UE:-)

I guess time will tell....

Desties

Again, you're viewing this as a disgruntled PE member and not from the UR or UE side of the equation.

You, me, and about 448 other PE members have mixed feelings about how this merger played itself out but we're yesterday's news. The vast majority of the UE members came from the UR side, and that's a mix that has no doubt grown as dozens of PE members have decided to bow out.

How many UR members have you seen complain here? Some did, initially, fearing that us PE Legacy people would be using our "unlimited" days to bury the calendar. They finally realized that it's clearly a very limited "unlimited" given the 28 day allocations. UR members are seeing many of the perks they know maintained in the new club. They are seeing a nearly doubling of properties. They are being introduced to the reciprocity concept, which other clubs can't offer since they typically have just one category of homes.

If you don't think that reciprocity is an attractive marketing angle -- where someone can pay for Premiere and still have access to a week in a colossal Delray Beach beachfront estate -- you may be missing the point on why UE has enough positive points to differentiate itself in recruiting new members.

The unhappy members (i.e. - PE Legacy who chose not to sign) are on the way out. UE's current plans and pricing are very competitive with ER as the country's second largest club. Again, you're seeing this from a very specific viewpoint. Now, if someone in a club with very lax booking requirements and a ton of amenities like a Lusso were to ask me if UE would offer to buy them out if it would be a good idea, I'd shake my head. However, UE is positioned as a sustainable model, in part because it made the hard call on many of these amenities.

In short, I would rather my club stay solvent and only offer midweek housekeeping or start charging me for bottles of wine than go under. I have yet to see the books on the new company, but this was a club that managed deal financing in a historic financing slump.