As the destination club industry continues to see club launches and the roll out of additional levels of membership, it is also seeing the entrants of new consultants targeting potential club members. This week, a group of former destination club executives started The Veras Group, the self-proclaimed “first independent consulting and brokerage firm” for the destination club industry.

Three of The Veras Group’s founders, Jim Pippin, David Gustafson, and Levi Moe formed the company after working at Private Escapes, a destination club that recently merged with Ultimate Resort to form Ultimate Escapes, the second largest destination club in the industry.

Offering itself as a free service to consumers, The Veras Group invites potential club members to its website to fill out a questionnaire detailing their lifestyle with a particular interest towards travel habits. Using that information, The Veras Group’s analysts create a profile of destination club options to fit the client’s budget and lifestyle. From there The Veras Group can advise the client and answer any questions concerning the clubs and membership. Pippin said there is no time frame for a member to join a club. “We’ll work with a client as long as he likes,” he said.

Service is free, but is it objective?

The service will be free to consumers, “at least for the foreseeable future” said Pippin. The Veras Group makes money through commissions paid by destination clubs, if a Veras-advised member ends up joining the club. Pippin said that The Veras Group currently has such commission agreements in place with a handful of destination clubs, but not every club option currently available.

Given that The Veras Group just launched its business, it’s difficult to fully evaluate its product. The company declined to share which destination clubs they currently have set up commission agreements. According to a company representative, however, almost all destination clubs already have established referral programs, so they’ll be able to direct members to clubs with which The Veras Group does not have a formal relationship. Of course, there are other questions for consumers to consider as well. Is it in The Veras Group’s interest to steer clients to clubs they have a commission agreement with, rather than one that they don’t? If the company stands to make a higher commission off a more expensive plan, given the fact the commission is based on a percentage, would The Veras Group be inclined to look towards higher-priced plans rather than the numerous entry-level options now offered? We addressed these questions to Pippin and he said that the company will “always work to find the best fit for the customer, even if that means that a destination club isn’t the best option for their lifestyle.” He insisted that they would even recommend a club that it isn’t getting any commission from.

Consumers, however, should approach this model just as they would a relationship with a financial advisor or insurance broker who is paid on sales commissions. After all, it is critical to ask questions to ensure that a financial broker isn’t steering you towards investment options that only carry larger commissions. Potential members should carry out the same due diligence with any destination club or advisor.

For more information on how to conduct proper due diligence on a destination club, download our Decision Guide to Destination Clubs.

Reader’s weight in. Would you use The Veras Group’s service and would you be comfortable with their claim to objectivity? Sound off and leave us a comment.