Destination: Luxury

 Luxury destination clubs differ from timeshares in that members do not own an interest in a specific property in a set location; rather, the destination club applies the joiner’s fee toward investing in and purchasing more real estate from which members can choose. Additionally, timeshare owners might have fewer travel days included in the cost of the timeshare, be restricted to a designated timeframe for travel, or experience limited access to other properties offered by the parent company. Most destination clubs also offer at least an 80 percent refund of the initiation fee should a member leave the club.

Destination clubs have also been confused with private residence clubs. In the private residence club model, a five-star resort such as The Ritz-Carlton or Four Seasons Hotels and Resorts offers fractional ownerships to members at a private home in one location. The members therefore have a deeded interest in a home offered by the hotel, with the option of traveling to additional locations, sometimes for a fee.

Though each destination club has its own policies, most clubs offer a reservation system that requires members to reserve a property 60 to 90 days out from the desired travel days. When reservations are requested within that timeframe, many clubs will offer homes on a first come, first served basis. Destination clubs also have established rules for holiday travel to ensure that members have a fair chance to travel where they want for the holidays.

The Draw

People like Mark Lacek are turning to luxury destination clubs as an alternative to hotel stays, timeshares and fractional ownerships, or second-home ownership for convenience and financial reasons. Lacek, a Minneapolis entrepreneur, and his wife Susan joined the Lusso Collection after getting a refund on their down payment on a fractional ownership property in the Caribbean.

“After a lot of consideration, we thought that it wasn’t the right move because it was a single property, and we felt obligated to go to the same place every time,” says Lacek, who also owns a lake home in Wisconsin. “We’re adventure people and love to travel. We wanted the flexibility of being able to experience a lot of different geographic areas.”

In addition, the Laceks wanted enough space to accommodate their two young children, friends, and other family members. “We feel very fortunate getting into a program like this,” Lacek says. “[It’s] a great way to spend quality time with the people who really matter in your life, and to do it in a place where you have enough room.”