Two new Denver-based travel startups are looking to capitalize on a hot trend: travelers willing to pay top dollar for unique vacations.
Effortless Vacations is a luxury-travel-management company that will plan an entire trip – from choosing the destination to providing a ride to the airport to lining up a 24-hour on-site vacation concierge.
The second company, Cortez Cruises, offers week-long trips along Mexico’s Baja coast on a private 62-foot yacht.
Both companies are targeting upper-middle-class households with incomes of $200,000 or more.
A growing number of companies are catering to travelers seeking lavish vacations with high levels of service, said Orlando, Fla.-based tourism expert Peter Yesawich.
“It’s certainly a highly marketable concept right now,” he said. “Increasingly, we know that affluent travelers are willing to pay for full concierge services.”
Spending on premium and luxury brands, including travel, is growing about 12 percent a year – as much as triple the spending growth in the overall retail market, the Luxury Marketing Council in New York told TravelAge West magazine.
That growth is evident in the explosion of the destination-club industry, with a majority of the clubs based in Colorado. Membership sales grew from $130 million in 2003 to roughly $750 million last year, according to travel consultant Ragatz Associates.
“New form of travel insurance”
To join a destination club, which offers access to multimillion-dollar homes, people pay a one-time fee ranging from $60,000 to $3 million, plus annual dues of $6,000 to $75,000.
Amber Raleigh was vice president of marketing at Denver-based club Exclusive Resorts before leaving to start Effortless Vacations.
“I call it a new form of travel insurance,” said Raleigh, who also worked for Starwood Hotels & Resorts and Destination Hotels & Resorts. “We’re professional vacation worriers. People are hungry for great customer service.”
Effortless Vacations coordinates vacations in Colorado, Hawaii and Mexico. The company differs from a traditional travel agency because of the full range of services it offers, from finding private villas to scheduling beachside massages to stocking the fridge.
“The kind of things our clients want – like a private fireworks show – you can’t find online,” said Raleigh, who is personally funding the company.
Tracie Meier, an executive at Cisco Systems and the mother of 4-year-old twins, recently hired Effortless Vacations to plan a spring vacation.
“My husband and I both work, so we’re very busy. But we can afford to say, ‘This is what we want; please do this,”‘ said Meier, who lives in Lone Tree. “For me, this is ideal. I’m not thinking about the money; it’s about peace of mind.”
Raleigh charges an hourly fee of $200, with an average family spending about $2,000 per trip.
A seven-night Cortez Cruise costs $2,125 to $2,875 per person and includes everything except airfare to and from La Paz, Mexico, and alcohol. The boat can accommodate eight people and features amenities like an on-board chef and wireless Internet.
It is also fully stocked with ocean kayaks, deep-sea fishing equipment and other water toys.
“Our thought was, ‘Wouldn’t it be cool if the middle and upper middle class could take a luxury yacht vacation?”‘ said David Fox, general manager of the company. “It’s all about bringing the rich-and-famous experience to people who never thought they would be able to attain it.”
The company is owned by a group of Colorado investors who previously were involved in AmeriVest Properties Inc., a Denver-based real-estate investment trust.
Their goal is to expand into other destinations such as the Carib bean and the Mediterranean.
Highlands Ranch Travel is one local travel agency that is selling the cruises. The yacht is booked through Christmas.
“It’s becoming more prevalent for people to want these kinds of things,” owner Marcie Lauritsen-Mann said. “Our clients are definitely willing to spend more for great experiences.”
Staff writer Julie Dunn can be reached at 303-954-1592 or jdunn@denverpost.com.
