Exclusive Resorts - New membership plans vs Previous plans

DC4MS · 05-03-2008, 01:33 AM

Exclusive Resorts has dramatically changed the pricing for all their membership plans and it is difficult to accurately compare the previous membership plans with the new membership plans.

Therefore, we will “attempt” to compare them using an average cost-per-night metric as determined by the DestinationClubForums – Exclusive Resorts Comprehensive Membership Analysis Tool.

If you assume a 10-year membership duration, ignore the opportunity cost of the membership fees, average the non-refundable portion of the membership fee over 10 years, average the annual dues, and account for holiday weeks, then the following interpretations can be made.

Previous "Affiliate" Membership Plan (no holiday)
Nights --- Membership fee --- Dues --- Cost Per Night
15 nights --- $320 ---$927 --- $1,247 cost per night

New Membership Plan (no holiday)
Nights --- Membership fee --- Dues --- Cost Per Night
10 nights --- $350 ---$1,390 --- $1,740 cost per night
20 nights --- $250 ---$995 --- $1,245 cost per night

Averaging the 10 and 20 nights = $1,493 cost per night (20% increase vs previous price)

Previous "Executive" Membership Plan (one Select holiday)
Nights --- Membership fee --- Dues --- Cost Per Night
25 nights --- $280 ---$916 --- $1,196 cost per night

New Membership Plan (one Select holiday)
Nights --- Membership fee --- Dues --- Holiday --- Cost Per Night
20 nights --- $250 ---$995 --- $195 --- $1,440 cost per night
30 nights --- $225 ---$997 --- $130 --- $1,352 cost per night

Averaging the 20 and 30 nights = $1,396 cost per night (17% increase vs previous price)

Previous "Elite" Membership Plan (one Peak holiday)
Nights --- Membership fee --- Dues --- Cost Per Night
45 nights --- $204 ---$776 --- $980 cost per night

New Membership Plan (one Peak holiday)
Nights --- Membership fee --- Dues --- Holiday --- Cost Per Night
30 nights --- $225 ---$997 --- $197 --- $1,418 cost per night
40 nights --- $212 ---$998 --- $148 --- $1,357 cost per night

Averaging the 30 and 40 nights = $1,388 cost per night (40% increase vs previous price)

It should be noted that the best news about the new membership plans is the ability for members to add one or more Peak or Select holiday reservations to any of the plans. Under the previous plans, the 15 night option did not include any holiday access, the 25 night plan only included one Select holiday access, and the 45 night plan only allowed one Peak holiday access.

It should also be noted that the two largest factors contributing to an increase in price for the new membership plans are: the 25% membership transfer fee vs the previous 20%, and the non-refundable nature of the optional Holiday access fees.

While the new plans are definitely more expensive on a “cost per night basis”, the added flexibility of the optional holiday access greatly increases the variety of choices for prospective members that want both a holiday access and a lower number of membership nights than was previously offered.

DC4MS · 05-03-2008, 12:45 PM

Here are a few more observations after comparing the Exclusive Resorts previous membership plans with the new membership plans.

The previous plan offerings had only three choices that were fairly rigid:

Membership days – Membership Fee (80% refundable) – Annual Dues
Elite - 15 days - $239,000 - $13,900 - 2 advanced reservations - 0 holiday
Executive - 25 days - $349,000 - $22,900 - 3 advanced reservations - 1 select holiday
Affiliate - 45 days - $439,000 - $34,900 - 4 advanced reservations - 1 peak holiday

The new plan offerings have six choices with the ability to add two different optional holiday access that allows for far greater flexibility to create a plan that best match a prospective member needs.

Membership days – Membership Fee (75% refundable) – Annual Dues
10 days - $139,900 - $13,900 - 1 advanced reservation
20 days - $199,900 - $19,900 - 2 advanced reservations
30 days - $269,900 - $29,900 - 3 advanced reservations
40 days - $339,900 - $39,900 - 4 advanced reservations
50 days - $409,900 - $49,900 - 5 advanced reservations
60 days - $479,900 - $59,900 - 6 advanced reservations

New membership plan options (non-refundable)
Peak holiday access - $59,000
Select Holiday access - $39,000

Head to head comparison of a 15 day plan

Previous 15 day plan
15 days - $239,000 ($47,800 non-refundable), $13,900

New 15 day plan (created by averaging the 10 and 20 day plans)
15 days - $169,900 ($42,475 non-refundable), $16,900

The new plan has a membership fee $69,100 lower than the previous plan (29% lower)
The new plan has a 75% refundable membership fee vs the previous 80% (5% lower)
The annual dues of the new plan is $3,000 more than the previous plan (22% increase)

Head to head comparison of a 25 day plan with Select holiday

Previous 25 day plan
25 days - $349,000 ($69,800 non-refundable), $22,900

New 15 day plan (created by averaging the 20 and 30 day plans) and adding a Select holiday
25 days - $273,900 ($97,500 non-refundable), $24,900

The new plan has a membership fee $75,100 lower than the previous plan (22% lower)
The new plan has a (net) 64% refundable membership fee vs the previous 80% (16% lower)
The annual dues of the new plan is $3,000 more than the previous plan (22% increase)

Head to head comparison of a 45 day plan with Peak holiday

Previous 45 day plan
45 days - $439,000 ($87,800 non-refundable), $34,900

New 45 day plan (created by averaging the 40 and 50 day plans) and adding a Peak holiday
45 days - $433,900 ($152,725 non-refundable), $44,900

The new plan has a membership fee $64,100 lower than the previous plan (15% lower)
The new plan has a (net) 65% refundable membership fee vs the previous 80% (15% lower)
The annual dues of the new plan is $10,000 more than the previous plan (29% increase)

Extrapolated Results

If you average the changes for the above three membership plans, it will provide an overall perspective on the new Exclusive Resorts Membership plans versus the previous membership plans across all price points.

Therefore, comparing the new Exclusive Resorts membership plans to the previous plans:

* The membership fees are 22% LOWER
* The refundable membership fee is 12% LOWER
* The annual dues are 24% HIGHER
* The cost-per-night is 25% HIGHER

Upgrade Girl · 05-03-2008, 02:28 PM

The true bottom line comparison could be drastically different depnding upon which plan emerges as the top choice. On the surface it appears ER will bring in more revenue but since the refundable membership deposit is used as per the business model to purchase new properties then does that mean ER will have 12% less funds to spend on real estate? Will the club then grow more slowly as a result to maintain some kind of tolerable availablilty or will they downgrade the average price paid per home?

05-03-2008, 01:33 AM	#1
DC4MS Administrator Join Date: Oct 2007 Location: USA Posts: 1,698 Club: DC4MS.com	Exclusive Resorts - New membership plans vs Previous plans Exclusive Resorts has dramatically changed the pricing for all their membership plans and it is difficult to accurately compare the previous membership plans with the new membership plans. Therefore, we will “attempt” to compare them using an average cost-per-night metric as determined by the DestinationClubForums – Exclusive Resorts Comprehensive Membership Analysis Tool. If you assume a 10-year membership duration, ignore the opportunity cost of the membership fees, average the non-refundable portion of the membership fee over 10 years, average the annual dues, and account for holiday weeks, then the following interpretations can be made. Previous "Affiliate" Membership Plan (no holiday) Nights --- Membership fee --- Dues --- Cost Per Night 15 nights --- $320 ---$927 --- $1,247 cost per night New Membership Plan (no holiday) Nights --- Membership fee --- Dues --- Cost Per Night 10 nights --- $350 ---$1,390 --- $1,740 cost per night 20 nights --- $250 ---$995 --- $1,245 cost per night Averaging the 10 and 20 nights = $1,493 cost per night (20% increase vs previous price) Previous "Executive" Membership Plan (one Select holiday) Nights --- Membership fee --- Dues --- Cost Per Night 25 nights --- $280 ---$916 --- $1,196 cost per night New Membership Plan (one Select holiday) Nights --- Membership fee --- Dues --- Holiday --- Cost Per Night 20 nights --- $250 ---$995 --- $195 --- $1,440 cost per night 30 nights --- $225 ---$997 --- $130 --- $1,352 cost per night Averaging the 20 and 30 nights = $1,396 cost per night (17% increase vs previous price) Previous "Elite" Membership Plan (one Peak holiday) Nights --- Membership fee --- Dues --- Cost Per Night 45 nights --- $204 ---$776 --- $980 cost per night New Membership Plan (one Peak holiday) Nights --- Membership fee --- Dues --- Holiday --- Cost Per Night 30 nights --- $225 ---$997 --- $197 --- $1,418 cost per night 40 nights --- $212 ---$998 --- $148 --- $1,357 cost per night Averaging the 30 and 40 nights = $1,388 cost per night (40% increase vs previous price) It should be noted that the best news about the new membership plans is the ability for members to add one or more Peak or Select holiday reservations to any of the plans. Under the previous plans, the 15 night option did not include any holiday access, the 25 night plan only included one Select holiday access, and the 45 night plan only allowed one Peak holiday access. It should also be noted that the two largest factors contributing to an increase in price for the new membership plans are: the 25% membership transfer fee vs the previous 20%, and the non-refundable nature of the optional Holiday access fees. While the new plans are definitely more expensive on a “cost per night basis”, the added flexibility of the optional holiday access greatly increases the variety of choices for prospective members that want both a holiday access and a lower number of membership nights than was previously offered.

05-03-2008, 12:45 PM	#2
DC4MS Administrator Join Date: Oct 2007 Location: USA Posts: 1,698 Club: DC4MS.com	Re: Exclusive Resorts - New membership plans vs Previous plans Here are a few more observations after comparing the Exclusive Resorts previous membership plans with the new membership plans. The previous plan offerings had only three choices that were fairly rigid: Membership days – Membership Fee (80% refundable) – Annual Dues Elite - 15 days - $239,000 - $13,900 - 2 advanced reservations - 0 holiday Executive - 25 days - $349,000 - $22,900 - 3 advanced reservations - 1 select holiday Affiliate - 45 days - $439,000 - $34,900 - 4 advanced reservations - 1 peak holiday The new plan offerings have six choices with the ability to add two different optional holiday access that allows for far greater flexibility to create a plan that best match a prospective member needs. Membership days – Membership Fee (75% refundable) – Annual Dues 10 days - $139,900 - $13,900 - 1 advanced reservation 20 days - $199,900 - $19,900 - 2 advanced reservations 30 days - $269,900 - $29,900 - 3 advanced reservations 40 days - $339,900 - $39,900 - 4 advanced reservations 50 days - $409,900 - $49,900 - 5 advanced reservations 60 days - $479,900 - $59,900 - 6 advanced reservations New membership plan options (non-refundable) Peak holiday access - $59,000 Select Holiday access - $39,000 Head to head comparison of a 15 day plan Previous 15 day plan 15 days - $239,000 ($47,800 non-refundable), $13,900 New 15 day plan (created by averaging the 10 and 20 day plans) 15 days - $169,900 ($42,475 non-refundable), $16,900 The new plan has a membership fee $69,100 lower than the previous plan (29% lower) The new plan has a 75% refundable membership fee vs the previous 80% (5% lower) The annual dues of the new plan is $3,000 more than the previous plan (22% increase) Head to head comparison of a 25 day plan with Select holiday Previous 25 day plan 25 days - $349,000 ($69,800 non-refundable), $22,900 New 15 day plan (created by averaging the 20 and 30 day plans) and adding a Select holiday 25 days - $273,900 ($97,500 non-refundable), $24,900 The new plan has a membership fee $75,100 lower than the previous plan (22% lower) The new plan has a (net) 64% refundable membership fee vs the previous 80% (16% lower) The annual dues of the new plan is $3,000 more than the previous plan (22% increase) Head to head comparison of a 45 day plan with Peak holiday Previous 45 day plan 45 days - $439,000 ($87,800 non-refundable), $34,900 New 45 day plan (created by averaging the 40 and 50 day plans) and adding a Peak holiday 45 days - $433,900 ($152,725 non-refundable), $44,900 The new plan has a membership fee $64,100 lower than the previous plan (15% lower) The new plan has a (net) 65% refundable membership fee vs the previous 80% (15% lower) The annual dues of the new plan is $10,000 more than the previous plan (29% increase) Extrapolated Results If you average the changes for the above three membership plans, it will provide an overall perspective on the new Exclusive Resorts Membership plans versus the previous membership plans across all price points. Therefore, comparing the new Exclusive Resorts membership plans to the previous plans: * The membership fees are 22% LOWER * The refundable membership fee is 12% LOWER * The annual dues are 24% HIGHER * The cost-per-night is 25% HIGHER

05-03-2008, 02:28 PM	#3
Upgrade Girl Junior Member Join Date: Nov 2007 Posts: 28	Re: Exclusive Resorts - New membership plans vs Previous plans The true bottom line comparison could be drastically different depnding upon which plan emerges as the top choice. On the surface it appears ER will bring in more revenue but since the refundable membership deposit is used as per the business model to purchase new properties then does that mean ER will have 12% less funds to spend on real estate? Will the club then grow more slowly as a result to maintain some kind of tolerable availablilty or will they downgrade the average price paid per home?

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