Desties

posted by Desties on Dec 12

During a teleconference for Ultimate Escapes members last month, the final slides in the prepared statements before the Q&A broke out were on smart home technology. Ultimate Escapes is no stranger to high-tech gadgetry. Most of its homes have Wi-Fi routers, entertainment centers controlled by Logitech Harmony controllers, and Xbox 360 video game consoles. Many homes have actual computers, full-house audio systems, and loaded iPods. The club is even stocking some of its homes with Amazon Kindle e-book readers.

However, the real head-turner during the presentation was the likely introduction of smart card technology in 2009. Members would be given customized cards that can be scanned (either RFID-based or scanned bars) to completely personalize the home. The member’s favorite music would go on, the temperature would be pre-set at the desired thermostat reading, the lighting levels would be adjusted, and — the gee whiz part — is that snapshots that the members uploaded through the member website would then be popping up on the flat screen televisions. I imagine adding digital picture frames would be no-brainers too.

It may not seem like much to those who prefer to set everything up the old-fashioned way. However, it’s going to be a great selling point for clubs to deliver an experience that no ritzy hotel chain or luxury rental can match.

The club has its reasons too, of course. Smart home technology will allow the club to monitor the home remotely. When the property is vacant, the club can make sure that thermostats adjust properly and that automated window blinds close to keep out sunlight. It’s also beneficial for security purposes. It doesn’t hurt that the “green” thing to do is also the economically prudent thing.

Either way, the destination club concept may not just be forward-thinking in luxury travel but home technology too.

posted by Desties on Dec 6

The destination club industry took another hit yesterday, when boutique operator Lusso Collection filed for bankruptcy reorganization.

Lusso seemed to be on the fast track of growth — just like High Country Club — before falling victim to the triple-whammy of falling real estate prices, tightening credit markets, and the cascading financial markets that make disposable income so less disposable these days.

It is important to point out that this is Chapter 11 (reorganization) and not Chapter 7 (liquidation). Save for losing out on some real estate in Anguilla, apparently, the club will continue operating with business as usual as creditors dictate its fate.

The industry obviously did not need this. A pair of prolific buckling speedsters isn’t going to help sway any fence-straddling potential destination club industry members to dive in. Consolidation would have been much better. Surely Exclusive Resorts could have made room for Lusso under better circumstances.

As it stands, with HCC and now Lusso, it appears that the industry’s biggest players are either letting the shakeout take place or have enough to worry about internally to take on companies with deteriorating financials.

Lusso has always been one of my personal favorites on the scene. It gets high marks from me for its polished website, detailed floor plans, and virtual tours. I hope it is able to get everything cobbled back together and grow again, but before any of that happens real estate prices need to stabilize.  Now that even Hank Paulson is committed to that goal, we may be closer to the bottom than anyone may realize. Let’s hope so.