Several of the leading destination clubs have announced price increases to take effect in the near future. What does this mean for prospective purchasers?

First of all, it’s important to recognize that scarcity is one of the primary psychological tactics. As outlined in the excellent book ‘Influence’, when we perceive that something is scarce (for example, if it’s going to become more expensive in the near future, which surely must mean that demand is high and the supply may be running out) we want it even more than we did before - whether or not there really is a shortage of supply.

In reality, the vast majority of destination clubs do not have a cap on the number of members they will accept. This means that availability is not going to drop and that memberships really aren’t scarce. Don’t rush out to buy just because a price increase is coming along - that’s the intention of the marketing ploy, but not necessarily the best thing to do.

If you’re seriously considering joining a club and they’ve announced an impending price rise, let the membership director you’re dealing with know that you’re interested, but that you wouldn’t want to pay more than the current price. They’re almost certain to let you know that they’d be happy to honor the current price. If not, ask a little harder! This is a buyer’s market, as to a certain extent the costs of the destination clubs are independent of the number of members - at least sufficiently so that more members is definitely a good thing.

That brings us to another point - negotiation when buying a destination club membership. This is a major purchase, and if you were buying a house you’d expect to do some negotiating. Destination clubs are not so different. Some of the points you might like to consider are the proportion of your deposit that is refundable; the size of your initial deposit; your annual dues; and maybe even some of the additional services that are offered. There’s no harm in asking, if you do it in a delicate manner. Nobody really expects you to hand over a six or seven figure sum and not do a little bargaining.

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