Feature: The Fractional Market
January 1, 2004
The working model for
Private Retreats, and an even more expensive connoisseurs’ version called
Distinctive Retreats by Abercrombie & Kent that launched last month, is also
different than other private clubs. “Our business relies on the
probabilistic-use model used by the fractional jet industry,” says McGrath. “It
means that if we have overbookings, we rent to accommodate our members. Because
we have a low six-to-one ratio of members to property, most of the time our
homes are always available. But a very small percent of the time they won’t be.
In that instance, we have a group of preapproved homes that we will rent. The
premise is that the probabilities will work in our favor over the long run. Of
course, the system is not absolutely perfect, and there are occasions when we
get overwhelmed—the Telluride Film Festival on Labor Day weekend, for instance,
when you get 20 requests and can only put up nine. But we’ve made the odds work
in our members’ favor. I can put up 40 percent of my member base on any given
weekend. The most any fractional project can put up is 10 percent. In the end,
that’s the reality of this business.”
Exclusive Resorts
800.447.8988
www.exclusiveresortsclub.com
Four
Seasons Residence Club
800.365.8611
www.fourseasons.com/residenceclubs
Marriott Grand Residence Club
866.894.7263,
www.grandresidenceclub.com
Private
Retreats by Abercrombie & Kent
800.925.7577
www.privateretreats.com
The
Ritz-Carlton Club
800.278.0121
www.ritzcarltonclub.com
The Owners
Club
800.789.0932
www.theownersclub.com
Also see Robb Report The Pros and Cons
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