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Destination Clubs Push Late Summer Incentives, Look Towards Price Increases
| Written by Amy Gunderson 08/20/2008 |
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Earlier this year, destination clubs rolled out a slew of incentives to attract new members, including free leased BMWs and a week-long cruise aboard a yacht. As the fall approaches, destination clubs are taking a more low-key approach to their third quarter membership push, instead emphasizing getting in ahead of looming membership price increases and an incentive that has a broad appeal for all travelers: Free frequent flier miles.
The Lusso Collection announced that members who join by the end of September will receive one frequent flier mile for every dollar spent on a membership deposit. Miles can be used on any of seven airlines, including Delta Air Lines, U.S. Airways and American Airlines. Members who join Lusso’s $325,000, 21-day plan will receive 325,000 miles, while the unlimited plan members will earn 425,000 miles.
In recent months, several airlines have announced changes to their frequent flier redemption programs, including adding fuel charges to award tickets or charging fees to book award travel, but these mileage awards are still a potentially attractive draw for new members, even if booking the tickets may now involve nominal fees. For instance, the mile perk for the Lusso 21 plan could cover two round-trip, first-class tickets to Europe on American Airlines for 250,000 miles (the kids could fly in coach for as low as 40,000 miles a pop), while the unlimited plan mileage jump could be redeemed for four first-class tickets to Hawaii worth 380,000 miles on American.
Other clubs are looking to price increases at the end of the month to act as an incentive for destination club fence-sitters to join. Exclusive Resorts is set to increase the prices on its six plans at the end of the month by $20,000 each, and is promoting the price jump as, well, a reason to join now. One Key will increase prices for its three travel cards on August 31. Prices will jump by $5,000 for the 15-night card, $10,000 for the 25-night offering and $15,000 for the 45-night plan.
Destination club Distinctive Holiday Homes is also preparing to raise prices and will be adding a new 63-day plan and additional entry level offerings that we will detail in the upcoming week. Expect price jumps and new member perks at other clubs as well this fall, as these incentive pushes often peak towards the end of the year.



