The concept was introduced in 1998, when Rob McGrath, a veteran of the luxury time share development business, launched Private Retreats.
[1] Since then, more than 30 companies have launched clubs targeting affluent families that want the benefits of second home ownership, but with more flexibility and choice in where they vacation each year.
The use of a portfolio of high-end homes in resort destinations is said to be preferred by its members over access to a single golf course alone as appears to be the case with country clubs.
In all models, club members provide an up-front sum and an annual fee though the exact amounts vary significantly by club-type.
Members purchase a share of the property company that entitles them to nights or points redeemable as weeks throughout the year.
[5] The economic changes between 2008-2011 resulted in innovation within the destination club marketplace and has provided more options for luxury travelers.
[6] The travel product and services available to members through a managed and controlled model are consistent with equity and non-equity clubs, but, because this model hinges on the club long-term leasing the properties in its portfolio as opposed to owning them, the cost of membership is significantly lower.
Mountain resort communities such as Vail, Aspen, Steamboat, Telluride and Sun Valley are hotbeds for club residences.
As traveler demand has increased clubs have added locations such as New York City, Chicago, Paris, London, Tuscany, Bordeaux, Patagonia, the Galapagos and Wine Country.
To date, the club offers more than 350 residences around the globe in addition to providing its 3500 members with access to trips and events across all seven continents.
[11] Emperum Club has since restructured into a boutique travel company specializing in preferential rates on long stays.
[13] Despite generally strong membership sales across the industry in the summer of 2006, Tanner & Haley Resorts entered Chapter 11 bankruptcy proceedings.
Halogen Guides and SherpaReport serve as media outlets focusing on destination club coverage.
[citation needed] In 2011 Brent and Brad Handler re-entered the destination club marketplace with the launch of Denver-based Inspirato.
[16] On May 16, 2012, 16 months after opening, Inspirato announced it had surpassed the 10,000 vacation-night milestone in addition to servicing nearly 2,000 club members, receiving capital investments from Kleiner Perkins Caufield & Byers and Institutional Venture Partners,[17] raising more than $1 million for charitable causes,[18] and being named one of "America's Most Promising Companies" by Forbes magazine and "Best of the Best 2012: Vacation Homes" by Robb Report.
Since the economic downturn in 2008 the volume of equity club members complaining [26] and requesting to exit destination clubs has increased dramatically prompting legal action in some instances: specific examples of this are a lawsuit against Ultimate Escapes LLC[27] and the Exclusive Resorts Member Lawsuit.