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Can You Book It? Destination Club Occupancy

Written by Amy Gunderson 10/28/2008
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If you ask Graham Kos, the founder and CEO of Solstice, what really makes a happy destination club member, he’ll likely point to availability of reservations. No matter how grand the home or how enticing the prospect of private chef-prepared meals, if members can’t book the home they want, when they want it, satisfaction can crumble.

Of course access all comes down to the homes’ occupancy rates. Last week Solstice reigned in its occupancy by getting rid of its least expensive membership plan in order to help ensure that members would have access to homes, just about whenever they desired.

The truth is, there’s no magic number when it comes to occupancy, but as you evaluate a club, these tips will help you judge whether you’ll, in fact, land that beach house in Cabo or ski cabin in Aspen.

Deciphering occupancy rates

Distinctive Holiday Homes touts a 22% occupancy rate for homes over 12 months. The Lusso Collection says its homes have had an average occupancy of 52%, while Ultimate Escapes touts an average occupancy of 57%. New entrant Abercrombie & Kent Residence Club says homes were booked 65% of the time in 2008. Is one better than the other? Not necessarily. After all, Ultimate Escapes residences are guest-free for nearly half of the year by this measure.

Instead look at what that number means. Is it the average past occupancy rate or the rate that the club is touting for the next 12 months out? You might also look at whether the club breaks down its occupancy rate by property type. For instance, Exclusive Resorts, a club that aims for an overall annual occupancy rate of 70%, acknowledges that foot traffic at homes varies by location, with mountain and golf homes seeing the most availability (57% occupancy) and urban residences filled 88% of the year.

You should also consider whether a club’s occupancy numbers include any tours offered, which can actually serve to increase the amount of booking inventory offered by a club. Exclusive Resorts, for example, factors in its Once in a Lifetime trips when calculating occupancy.

All bets are off for the holidays

Like the hotel industry, destination clubs see the biggest demand for travel during the holidays. Remember that occupancy rates typically represent an average over a 12-month horizon, but that 57% overall rate could very well jump to 100% over Christmas. Destination clubs have instituted a series of hoops, like holiday reservation lotteries, for members to jump through in order to secure a home during these peak times. The result? You may not get a home over the same holiday every year. For more details, see our overview of club’s holiday reservation policies.

While holiday bookings present their own challenges, and many times your reservation simply comes down to the luck of the draw, bookings during the rest of the year are more straightforward. With many clubs allowing bookings up to 12 or even 24 months in advance, a destination club membership is most suited toward the advance planners. Clubs have made it easier to book online—Lusso, for example, shows reservation availability in real time—and clubs like Exclusive Resorts maintain an online waiting list for homes and allow members to use nights allotted for the next membership year to book a house up to two years in advance.

Decide whether a destination club membership is the right travel option for your family by downloading our Decision Guide.

Reader Feedback

  • From: DC CommentatorTuesday, October, 28, 2008 at 05:34 AM

    Neither too much availability nor too little availability is a good thing. While on its surface, a low occupancy rate would seem to be a great thing for a member, it is also very expensive for a club and ultimately the member. If you have a low occupancy rate, you have less members sharing the costs of those residences. If you combine that with artificially low dues, that can be a deadly combination for the DC and the member (either you're socked with higher dues later on or have a bankrupt DC). On the other hand, if you have a really high occupancy rate, then members can't get the houses they want when they want and become satisfied. The key is to find the middle ground. As to the part about DCs being suited for advanced planners, I think DCs tend to benefit advanced planners or people who are flexible as to the destination and schedule.

  • From: ERMemberTuesday, October, 28, 2008 at 09:24 AM

    I also think you need to make sure the clubs are calculating the occupancy rate right. If you can book 2 years in advance, you need to publish your occupancy rate based on 2 years. Or, if you only allow people to book one year in advance, you have to calculate occupancy for only 12 months out - not two years.

  • From: 100% OccupiedTuesday, October, 28, 2008 at 09:40 AM

    I am a member of Ultimate Escapes. Annual Occupancy means absolutely nothing. The ski houses are rarely used during the spring and fall and the beach houses are rarely used during the hurricane season. If they quoted it by "seasonal" occupancy - the ski houses would be close to 100% during ski season and the beach houses close to 100% during the prime season.

  • From: UE memberTuesday, November, 25, 2008 at 03:20 PM

    I agree with 100%. I find it very difficult to make reservations within 90 days for any property I'm interested in. Yes if you want to go to Florida in the summer or to a ski destination in the summer you probably can but if it's a peak destiantion good luck. I'm getting quite frustrated by the lack of availability. I understand it's a touch balance for the clubs but I do have alternatives.

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