The end of the year is always a time to look back and here at Helium Report we like to reflect upon all the news we scrambled to cover over the past 12 months. The destination club industry continued to grow and the year kept us busy tracking new clubs, dead clubs, mergers, new properties and, of course, the ever-changing mix of club pricing plans.

We have to admit that this year was a lot less dramatic than 2006. And don’t get us wrong, that’s a good thing. After all, 2006 was the year Tanner & Haley declared bankruptcy and literally turned the industry on its head. The flop prompted the formation of the Destination Club Association and a move towards greater disclosure of financial information among clubs to their members. As a result, the strongest players who have embraced this mantra, have not only helped improve any tarnished image but have seen their own membership numbers rise.

As 2008 is set to dawn, here’s a look back at some of the biggest trends of the year in the destination club industry.

Another Year, Another Merger

We coined 2006 as the year of the merger since several clubs scooped up members and homes the old fashion way, by acquisition. The past year has proved equally as eye-popping on the merger front. The year kicked off with Ultimate Resort closing on a deal to buy the assets of defunct club Tanner & Haley. It scooped up $100 million worth of property and 650 members opted to join the new club. Later in the summer, Ultimate Resort and Private Escapes announced that they were combining forces in a $200 million merger that is set to close by mid-January. The new club will be called Ultimate Escapes. Other club combinations: BelleHavens bought the Havens Club in March, a non-equity destination club.

New Clubs Launch, Some Quickly Fade

It’s never a good sign when phone calls and emails to a destination club go unanswered. We know the lure of glossy brochures and slick websites from new clubs, so here at Helium Report we always approach club launches with a raised eyebrow. And for good reason. There were several club closures that we reported on this year. Both Premier Destinations and My Global Playground were two startup clubs with big ambitions but apparently few members. Both ceased operations this year.

While Ciel did not end operations it did announce in November that it was shifting focus from a pure destination club play to a real estate investment vehicle with a focus on buying land for conservation. As a result it looked to sell off some properties that didn’t fit that model and also stopped signing up new members.

Been There, Done That: Clubs Look Beyond Florida and Hawaii

Don’t get us wrong. We love Maui and the Big Island. We also love Aspen. And New York. And all Florida beach towns. But Naples is hardly exotic. This year we saw destination clubs adopt a little more of a globe-trotting attitude when rolling out new homes. The award for the most exotic locale goes to Solstice. It announced a new home in Itacare, Brazil, a five-bedroom villa with a modernist design, complete with floor to ceiling windows that look out on to a rainforest. Notable runner ups: LUSSO Collection added a house on Abaco Island in the Bahamas proving that an island home can feel remote but still be close to the U.S., while High Country Club hit Costa Rica.

Membership Milestones Hit

There are membership levels that no doubt cause destination club founders to stand up and pat themselves on the back. While many boutique clubs tout the fact that they have membership caps in place, a key factor in that plan is making significant progress towards that goal. Two clubs, BelleHavens and LUSSO Collection, met the 100-member mark this year to which we say, bravo!

And Now For Another Plan

Clubs launched a host of tweaks to their plans, both increasing prices and adding new options. Among the more notable changes: Quintess, LRW launched four new plans and including one with 75 nights. Exclusive Resorts rolled out an introductory plan with ten nights. Solstice, in addition to announcing new properties, also raised plan prices securing its status as the high-end option. The top level of membership at Solstice now requires a $1,950,000 deposit. On the other end of the price spectrum is One Key. It launched a new pricing model that gives members a set number of nights on a card, rather than requiring a membership deposit. Entry starts at $34,900.

Worth noting are some of the other clubs launched this year including Dream Circle in South Africa as well as Distinctive Holiday Homes, which has a collection of properties around the globe.

It’s Not Just About Real Estate

Exclusive Resorts launched its Once in a Lifetime this year that has the dual benefit of sending members to locales that aren’t covered by the club’s portfolio of homes and also freeing up inventory since members exchange their nights for trips. In June BelleHavens partnered with Stein Hotels, so members could exchange one day of travel at the homes for one night at a hotel.

The Resort Within a Resort

Exclusive Resorts, the largest destination club has buying power and, apparently, the membership demand to strike big deals at real estate developments. The club doesn’t pick up a house or two in a location, it often scoops up 20, or more, and gets in at pre-construction prices. For instance this year, Exclusive Resorts bought 30 condos at Vdara in Las Vegas, a high-rise project at the MGM Mirage CityCenter that is one of the few developments bucking the real estate slowdown that has hit so many other condo projects in Sin City. The club is taking it a step further by creating private enclaves in developments that are just for its members. In February Exclusive Resorts opened its $75 million members-only resort in Costa Rica. Other clubs have followed. Quintess poured $50 million into a gated community within a gated community in Los Cabos. The development in the Palmilla Resort will include a collection of four-bedroom homes with swimming pools and a community wellness center. Pre-merger, Ultimate Resort rolled out ad private development on Nevis and the newly formed Ultimate Escapes will likely pursue this strategy at other communities.

Up next: Our 2008 Destination Club Outlook.