Dream Catcher Retreats has announced that they will increase prices on three of their plans, effective Sept 15th:

• Unlimited plan will go to $345,000 from $325,000
• Sibling Plan will go from $350,000 to $370,000
• Partnership plan will go from $375,000 to $390,000.

Since it appears that the impending price increase seemed to work for Exclusive Resorts in terms of getting many of their prospects off the sidelines, Dream Catcher probably hopes that the same will happen for them. As we have said before, we don’t think that a price increase or monetary incentive should influence what club to join, but it can certainly encourage someone to sign now, if they have decided that the club is the right one.

Dream Catcher also announced that they will return 100% of the deposit in the first year, if the member is unhappy. The offer is something that we think has real value for prospects, as it gives them some time to determine if the club concept really works for their travel patterns. There are some risks for the club, as it might encourage less commitment on the part of the member to make their membership work in the first year – after which the refund commitment reverts to 80% of the deposit, like other clubs.

The non-refundable portion of the deposit (typically 20%) is revenue for the club – so Dream Catcher will forgo that in the first year but then recognize that as revenue in years 2, 3 and beyond. Some clubs offer 100% refund for the lifetime of the membership.

Destination clubs need revenue. In the startup and growth phases, clubs also need access to investor capital to finance overhead, marketing etc. Clubs that give back 100% of your deposit after the first year should be able to demonstrate to you, a prospective member, where their revenue is coming from since they have decided to forgo this one source of income.

Click here to read our past coverage on Dream Catcher.