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Global Resorts Network has recently acquired the exclusive right to market a Luxury Travel Club membership, Gold Crown Resort, formerly offered to a few elite individuals in private presentations. The deal allows Global Resorts Network to aquire independent affiliates to handle the marketing duties, thereby relieving the travel club of virtually all marketing expense. As a result, the price of the membership has been reduced by over 70% relative to summer 2006.

How is it possible to cut 70% off the price and still maintain the same quality of benefits and service? It may come as a shock, but by far the single largest expense of some businesses is marketing. And that is true for a travel club. The club must offer customer support services, negotiate with resorts and hotels to obtain favorable pricing, and maintain one or more offices. The scale of those expenses, how many offices the company has or how many customer services representatives it employs, is dependent on the size of the membership. That expense is therefore controlled. The cost of acquiring new members requires advertising. This could be an open-ended expense, meaning that it is possible to spend any amount of money on advertising.

Effective advertising requires making people that may be interested in the offer aware of what the club has to offer, in a general sense, and encouraging them to find out more, usually by offering incentives such as free luggage, short trips, cruises, or other merchandise simply to take the time to listen to a presentation. In the past, travel club presentations were very similar to the timeshare presentations. Most people have been to one or more of these, sat through a 90-minute presentation, and received their free gift. If they haven’t attended a presentation, they have probably been invited.

Offering these incentives is all part of the marketing budget, and it’s expensive. The company knows that a certain percentage of people will enroll and the cost of marketing plus the requisite profits sets the price of the membership. This is the key to the recent price reduction.
The internet has completely changed this marketing approach. Although the private presentations may still be offered for timeshares, one particular travel club has teamed with Global Resorts Network to capitalize on the marketing power of the internet.

This is a global marketing tool that allows many, many more people to be reached by targeted online advertising. The cost of this type of marketing can be expensive as well, and that is why independent affiliates have been added. Now the time, effort, and marketing expense has been offloaded onto the sales representative, who in return are offered a lucrative commission for each sale and for sales made by their network of downline members. In this way, the travel club has been able to establish a much more favorable price for the membership, and establish a compensation system that rewards the independent affiliateswith no out of pocket expense from the travel club.

The travel club can attract more members and grow more rapidly, the independent affiliates can use their creativity to produce a diverse array of marketing for the club, and the end-user, the new travel club member, can reap the benefits of membership at a fraction of the previous cost. Using this synergistic approach to marketing, a win-win-win situation if you will, the future looks bright for Global Resorts Network, the affiliates, and their customers.