DC4MS

Helium Report Destination Clubs Glossary

Helium Report | Objective Guide to Luxury Vacation Real Estate & Travel

Advanced Reservations: standard reservations that are booked 60 days to 2 years before the travel date.

Annual Dues: yearly fees that typically include travel planning, concierge, and housekeeping services. Fees range from $8,000 to $50,000.

Asset Value: destination clubs provide an average asset value for their homes. This figure is designed to give prospective members a comparison point against a second home they might purchase.

Days Included: the number of days that members have to the destination club’s homes. Typically, destination clubs offer 2 to 5-week programs.

Deposit Appreciation: some destination clubs offer a refund of the “future value” of the membership deposit, as opposed to a percentage (80% to 100%) of the membership deposit amount that the member paid initially.

Destination Club Association (DCA): an industry trade association that is working with state regulators to define the clubs’ programs as non-investment products and, thus, not subject to complex and restrictive timeshare regulations.

Equity: destination clubs define equity in two ways. Some clubs offer ownership interest to their members, while others have a model that provides appreciation on the membership deposit.

Holiday Reservations: popular destinations become impacted during the holidays.
Reservations are usually determined by a holiday rotation system, which differs at every club.

Holiday Rotation: destination clubs have different ways of rotating their holiday reservations to make it more equitable for members. Typically, members tend to travel on the same six or seven major holidays.

Independent Financial Audit: an independent, third-party audit of a destination club’s financials is recommended to ensure sufficient net assets are available to refund member deposits at any and all times.

Members Cap: some destination clubs state a maximum number of members they plan to sign up.

Member-to-home ratio: the ratio helps to compare availability between destination clubs. The more members per home, presumably the more competition between members for the home during peak seasons.

Membership Deposit: initial cost of joining a destination club. Fees range from $50,000 to $3 million.

Membership Resignation: members who want to resign their membership work directly with the club. Almost every club has a resignation ratio in place that requires two or three new members to join before a member can leave.

Nightly Charge: a fee paid per night of stay. Currently, Private Escapes is the only one that charges a nightly fee, ranging from $82 to $185 a night.

Planned Occupancy Rate: the percentage of the year that homes are occupied by members. A lower occupancy rate will allow members to more easily secure holiday reservations and other desired reservation times.

Refundable Deposit: the portion of the membership deposit that will be returned if you leave the club. The amount ranges from 80% to 100% of your initial fee.

Space Available Reservations: bookings for spontaneous vacations made within a two-month window prior to travel.