DC4MS

CEO Discusses Past Achievements, Future Plans Including Change to Pricing and Membership Offering effective March 1.

As we enter 2008 we reflect on our achievements to date and tighten the focus on our plans for the current year.

Since the start of 2007 the Club has more than doubled in size to 120 Members. We have executed more than 1,500 Member trips with extremely high satisfaction levels. Testament to this is the particularly gratifying statistic that 50 percent of our Members were referred to the Club by other Members. What's more, no Member has ever left the club and none are currently on a wait list to leave.

Currently the Club has 25 spectacular properties available for reservation across 14 world-class destinations. We also have under development eight further properties in three new destinations. We will be adding property regularly throughout this year and by year end we expect to have close to doubled our number of residences and to have expanded to 20 destinations, including exciting expansion into Europe.

We're not given to over-zealous statements, but quite simply we offer the best access, availability and range of amenities in the category—on truly compelling economic terms.

In an industry that has seen something of a "race to scale" over the last two years, and a consequent blurring of the distinctions between the largest clubs, we have never subscribed to the theory that size is all that matters. To us, big is not better, it is just different. We are proud to claim LUSSO as the best boutique destination club—growing at a sensible, measured pace to a scale that will permit the perfect blend of sustainable business economics, property availability, breadth of destinations, property quality and consistency, personal service and exclusivity.

Our membership offering has consistently been positioned to reflect the stage of the Club's development at any point in time. This will of course continue to be the case and, in this regard, we will be increasing the individual membership deposit on March 1, 2008 from $395,000 to $425,000 to reflect the continued growth of the Club.

Also on March 1, we will discontinue the Membership Reward feature. This feature was always intended to reward those Members joining the Club in its earliest phases of development—notionally the first 150 members. These Members would receive not only a full refund of their deposit should they leave the Club but also 50 percent of the increase in the membership deposit during the period of their membership. As we are rapidly approaching that development milestone, from March 1 we will move to simply a 100 percent refundable deposit, still an exceptional offering in a landscape where 80 percent has become the norm.

Current Members will of course continue to enjoy the benefit of the Membership Reward, and those joining the Club prior to March 1 will enjoy both this benefit and the current pricing.

There has never been a better time to join LUSSO than the current juncture—a burgeoning club exceeding its Members' expectations each and every trip, and a limited time opportunity to be one of the last Members to benefit from the current membership offering. Please contact us to explore further if LUSSO is the right vacation choice for you.

Warm Regards,

Steve Greer
Founder and CEO

LTTravel

Theoretical evaluation of Lusso's offering:

If you were to join Lusso by the end of the month for $395,000 and then resign in 18 months (I don't think that you would after you used their properties)
You would have paid $42,000 in dues for 18 months theoretical unlimited use, and if the price does not increase any further be able to resign your membership for $395,000 + 50% of $30,000 or $410,000 or a 2.5% non compounded annual rate of return. It would be even a better return if prices continue to rise. Compelling reasons to join Lusso by the end of the month. Some of their recent homes are worth over $4 million (Aspen, Naples, Jackson Hole)

3DH

Typo, LT? Surely you meant to say I don't think that you would...

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

LTTravel

Sorry for the typo, corrected

Kagehitokiri

do you have to wait a certain period before being able to resign?

how many payments are the annual dues broken into?

can you pay deposit/dues with credit card?

3DH

Don't have paperwork in front of me, as I am in Copper Mtn. right now, but I think it is either 18 or 24 mos.

Billed annually

Not at this time, sadly... I have asked for this, as I need my "points"!

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

Kagehitokiri

thanks, i figured LT had taken it into account.

so the dues are a lump sum at the beginning of the year? if you resign at 6 months, they refund half?

pwrshift

Is there any 'standard' with the various DC's on your responsibility on paying dues? I've heard some bill monthly, some allow CC, some force you to pay your dues for the whole year if you don't resign by your membership renewal date, etc.

LTTravel

They are all different:
HCC, monthly, credit card OK
ER, yearly in advance, credit card OK
Lusso, I thought it was quarterly but 3dh should know, Yearly in advance, no credit cards. I thought the resignation period was 18 months.
DHH, Yearly in advance, no credit cards
Others I don't know off hand.

3DH

Just FWIW, the dues were originally billed quarterly, but new memberships (2008 forward, from my understanding) will be billed annually. Existing members have the option to continue quarterly billing or convert to annual cycle.

With regard to the resignation period, 18 mos. for deposit refund, 24 mos. for member "reward" -- refund plus appreciation. (see FAQs for more info)

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

TarheelTraveler

Crescendo - semi-annually; credit cards OK

NeilGoBlue

Bellehavens annually... for a 5% premium, it can be quarterly..