Ritz –Carlton Hotel Co. has added a destination club option that allows buyers to accumulate vacation points instead of time in a fixed property.

The new product will cost $100,000-$800,000. It will allow buyers to earn interest on several vacation properties. Instead of earning time on a fixed property, the new Ritz-Carlton Destination Club will grant buyers access to the company’s worldwide properties.

Ritz is employing a strategy that is often used by mid-range timeshare companies, where investors get points that can be used as currency to purchase vacation time.

“Points give you much more flexibility,” commented David Short, VP of sales for the Ritz-Carlton Destination Club. “They allow people to customize each trip to their own needs.”

According to Howard Nusbaum (president of the American Resort Developers Association), the model fits the current economic environment. The approach will give consumers more flexibility and value.

“Points allow people to spend exactly the amount of money they want on vacations,” said Nusbaum. 
 
In a traditional fractional ownership model, vacationers can earn vacation time at a fixed location. With the points system, buyers can apply credits to hotels and other timeshare in anytime configuration.

The Ritz-Carlton will sell its interests in increments. The minimum purchase is $130,000, which will buy 5,000 points plus additional 2,500-point increments. The company will also charge annual fees ranging from $7,500 to $18,000.
  
“We’re spending a lot of time working on programs for our existing customers,” said Short. “It’s good for them, and it should allow us to grow a little more quickly in the future.”