In its latest email to former Ultimate Escapes members, Demeure insists that the rates on the acquired and leased homes from the bankrupt club "compare favorably with typical market rates."
Isn't that why this will never work? There is no promised 40% to 50% discount!
I can see why a property owner may contribute a vacation home into the Demeure pool under its original model. It's a good way to drum up revenue or create a homeswap situation by discounting pockets of availability. They can afford to take a hit, because the home would probably be vacant regardless. I find it interesting that availability calendars aren't available, because I'm guessing most of these ownere are keeping the holidays and peak periods and submitting only the seasonal lulls.
However, Demeure has to take a different tact on the UE homes. It's not a hobby or vanity purchase. It needs to at least break even (so its real estate arm can have zero carrying costs as the value of the purchased property appreciates or to have the leases make fiscal sense). Therefore, you're not getting VRBO-esque prices from someone who is renting out a home for the sake of generating SOME revenue off their second home instead of running it as an actual profit center.
In theory, Demeure should be offering the Ultimate Escapes homes at 40% to 50% of the rates they are now proposing on its website. It is why anyone would join Demeure. Prepaying for what is essentially market prices doesn't make any sense to a potential member, sadly enough.
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2 comments:
Thanks for your comments and open letter. We all definitely appreciate your candour and direct comments. We’d like to take a chance to clarify a few points which may in fact make a significant difference in your perception of the Demeure offer to Ultimate Escapes members:
1. As members you definitely will receive 40%-50% off the listed prices for former UE properties. We have updated the website and availability calendar to more accurately reflect that simple fact.
2. Demeure is based on a service capacity model rather than an equity based model. It’s very clear to all of us that Equity based Destination Clubs are fundamentally flawed and lacking long term business viability.
3. Until we had carefully analyzed Ultimate Escapes member booking behaviour, capacity demand and market analysis we were unable to determine how much capacity could be provided at 40% and 50% off, which is what Demeure club members receive. We have adjusted our pricing on http://demeure.com and clearly indicating Demeure and Demeure Club pricing levels.
4. As a UE member transitioning to Demeure you also have the opportunity to reclaim your travel credits with Demeure thus recovering your lost investment within the bankruptcy of Ultimate Escapes. Your Escape Planner can begin the process of looking at your specific situation and addressing your actual go forward strategy.
5. As a UE member moving into the Demeure Club you also have the opportunity to participate in the purchase of UE properties. This is an exclusive offer to the transition members.
6. Moving forward with Demeure your Escape Planner will continue to provide you with the personalized service and travel planning which you’ve grown to appreciate over the years.
Thank you for taking the time to voice your concerns. I completely understand the frustration felt throughout a difficult bankruptcy process which has also limited our ability to gain insight into some very important data which would affect our pricing levels and pricing distribution across properties.
We’re building a travel community with a solid financial foundation and many years of growth ahead of us. If you’d like to contact us please feel free to reach out and we would be more than happy to address your specific situation with your Escape Planner.
Maybe the following links will help as well:
http://demeure.com/news/
http://demeure.com/news/ultimate-escapes/
http://demeure.com/properties/ (with club and standard pricing)
Dan
The Demeure Team
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