We spoke last week with Quintess, Catch the Dream co-founder Ben Addoms about the progress of their club, especially since the merger with Dream Catcher Retreats. Some highlights of his update:

• No official numbers, but Addoms said that August and September were their best months ever in new member growth for the combined club, when compared to each club individually in the same months last year.
• As of November 1st, all members will be using the rules, reservation system and properties of the combined club. Addoms feels that the merged club has successfully taken the best of each clubs’ plans. They now offer a member-friendly set of reservation rules such as a 12-month advance booking window and the ability to book multiple homes in the same location.
• Price increases are due to come into effect by December 1st. Addoms attributes the increases to high demand for the club and the financial realities of what it costs to deliver this level of service to its members. The new club will have 12 plans, including expanded group/family plans. The charter premium unlimited membership (30 nights, guaranteed holidays) is now a $375,000 deposit and $26,000 in annual dues.

  

• Additional nightly fees above the days provided in the membership plans are being increased to $850/night.

Addoms also talked about what prospective members are asking before they join. The top two questions are about the security of the membership deposit refund and the ability of the club to become cash-flow positive. Not surprising. Quintess is telling prospects that a ‘special proceedures letter’ from KPMG will provide an assessment of what percentage of the refund obligation is covered by cash and real estate, less debt. As of the end of September, 100% of the refund was covered.

In terms of getting to operational break-even, Addoms has always said that the milestone occurs around 350 members, with the club currently at 250 and sufficient cash to fund the growth to get to 350 or more.

Helium Report Perspective

We have believed for some time that some clubs are ‘underpricing’ their annual dues as a way to compete with Exclusive Resorts, so we are pleased to see Quintess raise their deposits and dues to levels that cover the real cost of running a club. Low dues in the short-term help the salespeople, but can catch up with the club’s finances down the road.

We also like some of the subtle but very member-friendly changes to the plans. For example, a family can add up to nine immediate family members to their membership with booking privileges, including their mother-in-law. Also, the membership deposit is 100% refundable in the first year, something we believe all clubs should consider offering.

Finally, we are under the impression that Quintess will be very open and transparent with members and prospects around the key questions of financial strength. We see this as the only option and continue to encourage our readers not to join a club that will not answer these important questions. Get the full list here.