We spoke with Rance Rogers, the president of the Portofino Destinations Club recently about his club’s renewed energy, after having merged with Signature Destinations. The club is now adding a new higher-end tier – the Continental Collection.

Here is the profile of this new offering:

• higher home values than typical for Portofino – in the $3.5 to $4 million range.
• full time concierge service
• affiliate deals with spas, golf courses and other luxury services. No announcements yet on these.
• a Range Rover in the garage at each home.

The new tier will require a $395,000 deposit, 80% refundable and $30,000 in annual dues.

Rogers says the new collection was based on member feedback – many wanting a higher level option. He expects about 10% of his current members to upgrade. So the new tier will likely start with 10+ existing members that trade up – now that Portofino has about 145 total members. Eventual plans are for 100 members and about 10 homes. Initial home locations will include Montecito, CA, Napa Valley, CA and Arrowhead at Vail, CO. They also hope to add a new home each quarter, including Hawaii, Lake Tahoe and Palm Desert.

The strategy of a three-teir club is similar to Private Escapes and makes sense: offering three price points associated with different real estate allows the club to appeal to a broader range of potential members. It speads the cost of operations across three tiers, and gives the club more price points for a single prospect.

Of course the challenge is still to build critical mass and scale – while competng with other clubs at each level. LUSSO Collection also offers a luxury car in each home, and the new Ultimate Resort also offers multiple membership tiers, but with over 750 members.

Portofino however, had made steady progress with a more persoal approach and a willingness to be patient until opportunities become open – such as the chance to acquire Signature Destinations.

And for the new Continental Collection, the financial incentive to join now is strong:

• the first 10 members to join will pay NO dues for first 3 years – about a $90,000 value.
• the next 50 members to join will pay no dues for 1st year.

If you are interested, call Rogers, or club co-founder, Ron Tapp directly. They build their club one relationship at a time, and one of them will probably get on a plane and come meet you. The charter membership offer is generous, and of course, not sustainable past the initial ten members – and probably reflects their preference to divert sales and marketing expense to these charter members.

All images courtesy of www.theportofinoclub.com