Joining a destination club is a high priced decision, but there is another way to evaluate the cost beyond comparing the initial membership deposit price tags and annual dues. Cost-per-night allows potential destination club members to take a look at the annual cost of a destination club and easily compare it to other options like a stay at a five-star luxury resort. Our 2008 cost per night survey revealed that the price of a night at a destination club varies widely, ranging from $248 to $2,867 a night.

Since we built our first cost-per-night analysis back in 2006 much in the industry has changed. New clubs have sprung up and existing clubs have expanded their offerings with both entry level plans and new high-end offerings that include a greater number of nights coupled with high annual fees. Membership costs and annual dues have risen have also risen; the average cost-per-night across the clubs is now $1,114 as compared with $918 in 2006.

Our cost per night model takes into account a club’s membership deposit refund promise and assumes a ten-year membership span. It also equalizes usage among the club plans by assuming members use a given plan 30 nights a year even though the club may offer more nights. For an explanation of how the cost-per-night analysis tool works, see our series of articles, which details its assumptions and methodology. You can also request the 2008 cost per night calculator. One of the strengths of our cost-per-night model is the ability to change the assumptions in our formula. Plan on staying more than 30 nights under a particular plan? Go ahead and enter how many nights you think you’ll be vacationing to automatically recalculate the cost-per-night based on that number of vacation nights.

We looked at the cost-per-night at 15 leading destination clubs, where membership deposits range from non-existent to as high as $1,950,000, and annual dues range from $2,100 to $86,000. High Country Club’s “Affiliate” plan has the lowest cost-per-night at $248, while Solstice’s “Sky” plan has the highest nightly price tag at $2,867. Our calculations show that costs-per-night can vary widely between the tiers of a particular club’s membership plans. Ultimate Resort’s Gold membership level comes in at $754 per night, while its Elite:Bronze level costs $1,357 per night.

Since our 2006 survey, the wide-open field of destination club players has winnowed to six or seven well-established clubs, including one 800-pound gorilla, Exclusive Resorts. Clubs have refined their practices and business models, much reducing the risk of member’s initial deposits, while also introducing a myriad of membership plans, as they look to attract members with a wide variety of tiers. At the same time, the increased volatility of the real estate market has no doubt reduced the potential earnings of vacation home real estate, at least over the short term. Many once high-flying second home real estate markets, like Las Vegas, Phoenix and south Florida, are now seeing stagnant or declining home prices. One of the assumptions in our model was that a ten year membership in a destination club meant that money could have been alternatively invested in a second home, and that such an investment would appreciate at five percent a year. Given the uncertainty of the market these days, that assumption may no longer hold true. Does this make destination clubs a better option? Well it certainly relieves some of the reluctance potential members may have had regarding their deposits and costs of capital.