joining me now is James Henderson Ceo of exclusive resorts.
James glad to have you on the show this morning,
can you talk to us about the demand picture you're seeing for kind of the membership
space that you're in this year so far and what bookings look like right now.
Sure, great to meet you lisa thanks so much for having me on.
Yeah, we're having a fantastic period,
We've had a really strong 23 years um you know I think we've
been writing a little bit sort of the wave of the pandemic,
we did a bit of a sort of reorganization retooling of the company about
two or three years ago and we made a lot of changes internally,
I think we were just going in the right place at the right time.
We're seeing tremendous demand in the market,
you know for us in terms of demand for new memberships,
we typically bring in about 100 and families a
year um and last year we brought almost 200,
so we're seeing some of the highest level demands we've seen in about 10 years,
we're very careful about who we're bringing
because we are an invitation-based model.
Um and then in terms of travel I think and
as everyone is seeing at the moment there is significant,
pent up demand in the industry, people who really do want to get out and travel,
we're seeing a lot of travel into into europe at the moment,
we're also seeing a lot of travel into um
into mountain destinations is is a particular that we're seeing
and I think a lot of this is re restrictions, reasoning, um you know,
our entire portfolio and you outlined,
we have 400 homes experience in 75 different destinations.
Our entire portfolio is now open.
The last standout actually was grand Cayman where we have almost 20 homes.
Um, and they just lifted restrictions yesterday. So we are off the races.
I mean we've been,
we've been busy for the last two years really and it's just continuing.
So we're, we're, we're very happy seeing the growth of the business.
It's so interesting.
I'm fascinated to understand how travel um, you know,
habits maybe for your members have changed, especially in context of 2020, right?
We saw people staying in locations longer, but more domestic travel.
I think you're signaling saying there a moment ago that international travel has
been a big pickup for you guys in terms of potential change.
But what else, what other changes or habits are shifting now that you know,
the world essentially is reopening and there
are loosening restrictions in so many countries.
I think there's a number of things and I think one of the biggest things is,
I think the pandemic has just changed people's priorities.
I think, I think people in many respects they're less materialistic,
they're more focused on experiences.
They want unique experiences.
They want to have these transformative experiences,
There is definitely increased desire for private homes and buildings,
which we are, we are seeing tremendously.
Um,
and I think some of the things that really made us think over
the last 23 years is people are looking for this renewed connection,
you know, with, with friends and with families.
We talk a lot about safe sanctuaries.
We believe that people want to travel within their circle of trust in the community,
which is why they like traveling and homes.
Um you know, as you outlined,
there's there's also a real blurring of of this work location home
and we're seeing that because people are definitely taking extended stays with us
and I think a lot of people are looking to see this more of
a sort of a sense of belonging
community which really transcends probably traditional hotels.
Um, and you know, and the other thing with the pandemic,
I think a lot of people have realized that, you know,
you want to travel with a trusted partner,
so you want people that are by your side when you're traveling,
um you want people have deep expertise, expertise experience
as a company.
We delivered 16,000 vacations in 2021 with the satisfaction score well over 95%.
And as I mentioned earlier, we've, we've retooled the business slightly,
but we haven't fundamentally changed the product or service that we offer.
Um
I think it's just really become a very timely and desirable thing that we're seeing,
We're seeing demand for right now, to some extent,
the market has probably come to us.
One of these that I quite like to say is is that
the new normal travel has kind of always been a normal,
we haven't done any different whether the same things we've always done,
um but it's just, it's very timely right now,
we've definitely seen that in terms of demand,
both in new memberships and also for members that are traveling more.
Um
and then I think the other thing in terms of
some of the trends that we're seeing, there's definitely traveling into europe,
for sure, we, we've been seeing that over the summer,
we have quite a significant footprint in europe, certainly in Italy in uh in France,
in London, um and then we have a whole series of european buildings that we do.
But the other thing that's really interesting is
is people are staying longer in locations there,
um you know,
we're seeing mountain destinations where typically you see
the season trail off a little bit,
you know, into september, we're seeing robust demand there.
Um so we're seeing extensions of that and the
other big one that we've seen this summer is,
is drive to destinations,
people looking to get in the car and just travel and drive somewhere that is easy,
where they can be a little bit spontaneous.
I'm fascinated by the membership service that you offer really unique in this
kind of travel space and as we talk about the summer of events,
travel, what makes that,
that proposition of a membership kind of style of business for the customer
attractive and what do visitors expect when
they're visiting some of your properties.
That's a great question. First and foremost we're a private club or community.
So you know we have, we have 4500 member families in the community. And
you know, one of the things that I think is very unique is people when they,
when they join us, it's like joining a country club.
So you sign up pretend your membership or a 30 year
membership and these are people that come into the club.
They are looking to travel. They're looking to be like mine individuals.
Um, you know, one of the most fun part of my job is I get to meet the most amazing,
amazing people who are are members average net worth
of most of our members is $22 million.
Um
and the thing that really brings them to exclusive is really the
quality and and that that level of service that we offer.
So when you come in um were very focused on relationship based service,
we give you what we call a vacation ambassador,
that person becomes your ambassador for life.
When you're, when you're exclusive the plan,
all of your vacation's over the the tenure of your trip.
And we're looking, we're looking two years out.
So well the big bucket list on the trip trips on on the calendar
and then the destination.
We have conservation destination who really curate the experience for you.
So we fill the home groceries for you.
We do all your planning, we do all the organization for you.
So it's a very high level of touch when you're actually in the, in the house.
I'm interested.
You know,
I look at the broader travel picture and it's
very different to some extent from the luxury travel picture
and I pulled back a little bit and think about
the macro economic environment that we're in right now.
We talk about this all the time.
There's this bifurcation between those on the lower income spectrum
and those on the higher income spectrum in terms of,
you know, how they're feeling the pinch with them
and how they're spending right now
to that end,
I'm curious because you do skew on the luxury
kind of travel sector how robust or how more,
how much more robust is travel there
in context with the broader kind of travel demand that we're seeing
right now that is elevated by imagine that luxury travel sector,
is it even more elevated?
I think I think whenever you go through something like this,
you see whenever there's sort of an issue the economy, people think about, you know,
whether there is an impact of a change in the economy,
there's always an element of insulation.
You know, if I look across across our member base.
I mean these are people that, you know,
they've done very well if they've accumulated wealth,
I think they have a level of insulation from,
from any shifts and changes in the economy,
but at the same time we, we serve really a couple of ends of the spectrum, right?
So we have these wealthy individuals that travel with us and for them, you know,
I wouldn't say money is no object, but they're,
they're able and willing to do a lot of these bucket
list trips and they have the time to do it.
But we also, we serve a value component the market as well.
Um, you are memberships that we offer, you join, you sign up like country clubs,
I mentioned, you pay an initiation fee and then you pay an annual fee.
But when you look at their annual fee and what that breaks down to on a nightly basis,
it's a really strong value proposition.
So if you think that a lot of people, when they're traveling, families and friends,
they're going to take, you know, brothers, sisters, kids, grandparents, nannies,
whatever and take three or four homes in somewhere like a premium hotel.
When you're looking at dropping 8 to $10,000 a night
for something like that for four or five rooms,
right?
If you break down what we offer in exclusive resorts,
you're going to get a 3 to 4 bedrooms, spectacular home
For about $1500 a night.
When you break those notes all the way down and you and you can still let down.
So we offer a lot of value there as well. In terms of the service proposition, media,
looking at some of those homes there,
you do get an idea of the value proposition
that you offer with the incentive of the views,
the quality of homes and the experience.
You can you can get there with multigenerational,
potentially James really appreciate your time and your
insight James Henderson ceo of exclusive resorts.