Validating Validus: A Conversation with Jessica Zielinski, co-founder of Validus Destination Club

“First,” says Jessica Zielinski, “ Validus is not a destination club in the traditional sense. We are more hybrid than traditional, pulling dimensions from destination clubs, private travel clubs and lifestyle experience clubs. We have combined aspects of all, and created something different.”

Jessica and her business partner, James Blair, originally conceived Validus Club in 2005, based on the first generation non-equity based destination club model. However, the competition was substantial, and Jessica and James went back to the drawing table to rework the model. Neither thought that owning homes outright for members' use was a lucrative idea, as both have backgrounds in construction and engineering, and knew the fiscal and ongoing burdens of multiple home maintenance and management. So, they did something else: they pursued strategic alliance agreements with high end, privately owned property owners to reduce financial risk and still have more immediate luxury home access and availability. It took two years to refine the model, but in October of 2008, the new Validus Club was launched, where the cost burden of home ownership was avoided, while providing Validus members multiple high end residences.

“By eliminating financial risk and burden, the new, more hybridized business model allowed Validus members to waive initial deposits and annual dues, while still offering members the highest end selection of homes, villas and residences,” said Jessica. “ In addition, and as important as the waiving of initial deposits and dues, Validus maintains an exceptional degree of exclusivity. The membership is by invitation only, and the invitation must be from authorized club members, management or club directors. At present, Validus has open access to more than 3,000 properties in over 100 destinations”

If there is no deposit or dues, what does a member receive? According to Jessica, they receive a full array of travel and concierge services, as well as opportunities not usually available to the general public. “ As an example,” she said, “there are special events that Validus’ members can be part of - like the World Cup South Africa event in 2010. We have been given access for a whole month to a Villa near the venue. Usually, this reservation runs around $60,000. But we can get it for much less. On average, a villa, ground transportation, concierge, private chef and maid service run between $5,000 and $7,000 per week. However, the cost of a vacation for a Validus member depends on the destination, the type of services and the type of residence desired. The residences in our portfolio, on average, are in the $4.50M range.”

In addition to exclusive villa access and concierge services, Validus members are also given priority invitations to global property investment opportunities.

There are more substantial plans in the works for the Validus members also: Jessica is in process of making destination and residence videos, creating member newsletters, and their own print publication called Validus Aviation, that will be in the seat pockets of private jet companies, who are also their strategic partners.

“It took a long time to incorporate three interlocking elements needed for our club’s eventual success: what’s best for our members, best for our strategic partners and the owners of the residences. We constantly review members and strategic partner suggestions to locate homes that represent our club. The owners of the homes are NOT members. They are only interested in bringing our members to their properties.”