We always like to check in with other analysts and writers that cover the affluent market, and this week we caught up with Deidre Woollard, who created and runs the very successful blog, luxist.com. We asked her about trends in the luxury and destination club markets and here are her thoughts:

What are people going to spend their money on over the next 12-24 months?

This is a fun one. I think while the previous couple of years brought
a 1980s style exuberance, things are in for a bit of a correction. For
the luxury market this doesn’t necessarily mean spending less but consolidation and simplicity. I think we are already seeing this with
a bit of a gadget blur, the phone, the mp3 player and the PDA are
merging. For real estate I think that simplicity plays out in a
different way. Most people are aware that the chance to flip houses
and get big gains are over for a while. Destination clubs play into
the simplicity factor because vacation becomes a much simpler
prospect. Some condo projects are evaporating while others are
thriving. I think that good design is much more on the minds of people
at large lately and so projects that are associated with major
architects or designers have a huge advantage. People want prove that
what they own has intrinsic value.

Any impressions of the luxury real estate market, especially destination clubs. What brands you know/recongnize, any sense of the level of interest from readers?

Exclusive Resorts and the Yellowstone Club are two that I’ve seen some
interest in. The Markers Club and The Portofino club are also ones
that seem to get people excited. The timeshare options from Hilton
and Marriott over an established names so there is less worry, the
same goes for Storied Places since it’s backed by Intrawest.

Any observations of the new, young affluent (30-45 yr old) – their expectations, their relationship to luxury brands.

I think that we are definitely experiencing brand fatigue in some areas. The masstige effect has made some brands lose their cachet. Also there seems to be an increasing in brand licensing for example, Ferrari has a wide range of Ferrari-branded items some of which have little relation to the original brand. I think that eventually this will lead some brands to be more protective of their names and what they get associated with.

In terms of destination real estate I think we are going to see a rise in eco-friendly retreats and in luxury resorts that have a better relationship with the environment they are in and with the people in said environment. The keywords here are community: people want to feel welcomed and embraced by the place they are visiting, and experience: the chance to see or do something that is new and unique. People are also getting more daring and willing to invest in more exotic locales. There are a variety of spots including Thailand, Croatia and parts of Africa that have the potential to be draws for tourists. I think that people like Oprah, Bono and Bill Gates are proving that it’s possible to live well and save the world and that people are drawn to luxury that also feels more altruistic.

Helium Report notes:

We did talk to Yellowstone World Club this week – their sales director assured us that at membership costs in the $2.5m + range, they would sell out real fast – and that he didn’t think that our readers were likely to qualify for Yellowstone membership…hmm, I guess I could make another joke here about Tony Soprano being better qualified for Yellowstone membership than Helium Report readers, since Robb Report seems to have an ad for Yellowstone in each issue.

We also do know of one new club trying to get launched with a conservation angle – Conservation Havens – looks like they are on the right track, in terms of Deidre’s prediction.