The Fractional Market: The Pros and Cons
January 1, 2004
More Factors To Factor In
Guaranteed weeks at hotel fractionals
and most travel clubs like Exclusive Resorts are based on Saturday-to-Saturday
or Sunday-to-Sunday travel with a 14-day maximum stay. Few business or vacation
travelers plan their time this way anymore. Statistics show that 85 percent of
travel is less than five days and centers around long weekends.
Most
fractionals and vacation clubs require reservations 90 days in advance for
guaranteed usage of properties. Last-minute reservations are usually on a
space-available basis.
Travel, food, beverages and spa treatments are not
included in any fractional or private club plan. Car service to and from the
properties is generally not included, either.
If, for any reason, a vacation
club is forced to liquidate or “wind down,” fair market value on all club
properties would be assessed. Members would then receive the assets from their
deposits on a pro-rata calculation until all are returned.
Connections Are Everything
To further compete with vacation clubs and
extend more services to its members, the Ritz-Carlton Club recently partnered
with Marquis Jet Partners and the African Collection to provide short-term
fractional jet leases (sold in 25-hour increments on a prepaid basis for a
single year) and individually tailored safari adventures, respectively. These
benefits are offered for an additional fee.
Meanwhile, Private Retreats by
Abercrombie & Kent has added Quintessentially, a London-based concierge
service, to its list of partners. Quintessentially offers complete concierge
services at the club’s apartments in London, Miami, New York, Paris, Rome, San
Diego and San Francisco, and promises tickets to top shows and access to
restaurants, nightclubs and sporting events that are typically impossible to get
into. It helps that Quintessentially cofounder Ben Elliot is the nephew of
Camilla Parker-Bowles.
Abercrombie & Kent’s new Distinctive Retreats,
which opens for membership in January, operates on the same basis as Private
Retreats but will cost twice the price to join and will offer homes in the
superluxury category. If Private Retreats is geared to the young millionaire,
referred to as the “New Economy Class” by The New York Times, Distinctive
Retreats is modeled to appeal to the more seasoned billionaire.
Return to Robb Report The Fractional Market
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