Buying exceptional travel: villas, private islands, residence clubs and expeditions

At a glance

• Who it is for: travellers buying high-value stays, memberships and expeditions, and those weighing access against ownership.
• The three things that matter most: who you are contracting with and how your money is protected; cancellation and force-majeure terms; and safety and security standards.

Understanding the market

• Segments: ultra-luxury hotels and resorts; private villas and estates; private islands; residence and destination clubs; superyacht and private-jet journeys; expedition cruising to polar and remote regions.
• Value drivers: exclusivity and privacy; service and staffing; location; safety; flexibility of terms.

Ways to own

• Direct bookings with hotels and villa owners.
• Luxury travel advisors and agencies.
• Destination and residence clubs: an upfront membership deposit and annual dues in return for access to a portfolio of homes.
• Fractional ownership of resort property (see our prime property guide).
• Charter of yachts and jets (see our superyacht and private jet guides).

Where and how to buy

• Use advisors who belong to recognised trade bodies and who disclose commission arrangements.
• For memberships, read the membership agreement in full: refundability of deposits, transfer rules, availability, dues increases, and what happens if the club is sold or fails.

Due diligence and authenticity

• Financial protection for deposits (e.g. bonding or trust accounts where applicable).
• Villa standards: staffing, security, insurance and licensing of the property.
• Expedition operators: safety record, vessel ice class and medical capability, and membership of relevant operator associations.
• Data protection and discretion, especially for high-profile guests.

Costs of acquisition and ownership

• Rates, deposits and payment schedules; service charges and gratuities; taxes; transfers; security; insurance.
• Memberships: initiation deposit (and whether it is refundable), annual dues, nightly fees.

Structure, tax and regulation — topics to raise with your advisers

• Corporate or personal booking, and benefit-in-kind implications where a business pays.
• Consumer protection rules that may or may not apply to high-value or business bookings.

Insurance, storage and security

• Travel insurance with high medical and evacuation limits, and cancellation cover suited to high-value bookings.
• Security assessments for remote locations; kidnap-and-ransom cover where relevant.

Selling and exit

• Membership deposits: understand refund timing, waiting lists for resale and any deductions.
• Unused prepaid credits or nights: check expiry and transfer rules.

Red flags

• Pressure to pay large deposits by bank transfer to individuals.
• Membership deposits described as "investments".
• Operators unable to evidence licensing, insurance or safety certification.

Questions to ask your advisers

1. Should bookings be made personally or through a business?
2. What protection do I have if the operator fails?

Glossary

Buyout

exclusive hire of an entire property

Destination club

membership giving access to a portfolio of residences

Ice class

a vessel's rating for navigating ice

Specialists you may need