Wednesday, December 17, 2008

Before considering Club Mahindra Membership : My personal advice

Before your purchase decision, evaluate your decision on following points:

Profile your vacation needs:
· Do you spend most of your vacation days visiting your home town or religious place, can you spare 7 days for Club Mahindra Holidays?
· Do you like to go to historical places or places like Munnar, Poovar, Coorg, etc?
· Do you go for 7 days in a stretch? If you go two places 3days + 4days, you will soon exhaust all nearby Club Mahindra resorts. You will have to revisit those places in order to utilize your membership days.
· You take such trip to relax or like to see places around as much as possible and come to hotel only in evening for sleep?
· If you can only travel in your children' vacation days, You will have to take higher season membership (Red or Purple season), white season membership will not do.
· At Resorts everything comes at cost, full day buffet for 2 adult + 2 Children will cost you Rs2000+ , DVD rental ~Rs40 , children' activities ~Rs100- Rs300 per activity.
· Membership gives only accommodation + dry kitchen facility in some resorts. Anything else comes at a cost.
· Resorts are usually little far away from the main town, Munnar - 18km, Coorg - 5 km, Poovar - 45 km , Goa - 8km (distance from main Bus Stop), 40km from airport.
· Can you plan 2 to 6 months in advance? It is very unlikely to get accommodation in Club Mahindra on 15 days’ notice. Do not believe sales staff if they promise so. Ask for a written commitment on it.
· What is the cost of your money? How much you can earn on that money and utilize same for your vacation. Remember you will be paying ASF also which will increase year by year.
· Will hotel rental always increase in India? (look example of airlines: business class fares are mostly same but economy class fare has come down drastically)
· How much bank charge when you take unsecured loan? 18- 30%! What is the current floating and fixed rate for (secured) home loan? (10.5 - 13%)! 
· What will be the interest rate on unsecured loan to companies like Mahindra Holidays for 25 years?
· Do you know if you borrow 1Lakh Rs for 25 year EMI repayment option at 10.5% interest rate, your monthly outgo will be ~Rs.11433/- for 25 years.
· You are committing 25 years of business to CM.
· Mahindra Holidays spend >50% of memberships sales revenue on marketing and sales.
· Not all resorts are equally good or have commercial value, Average out resort quality.
· A season is wide spread to 16 - 24 weeks, not all weeks in a season are equally valued.
· You will be taking long holidays of 3 to 7 days, not one night stay.
· You may have to plan 2 to 6 months in advance to get your desired dates, location.
· In many respects it is comparable to low cost airlines vs. full service airlines so discount that.

Strip down marketing glare:
· Any promise apart from accommodation! (like free pickup- drop, vacation planning, etc.)
· Search on net for common problem with the Club Mahindra membership. Look
· Not all resorts are same.
· Some resorts has minuscule room capacity (10 - 20 rooms, for more than 1Lakh+ members), very difficult to get booking there. (see a table at end of this blog)
· Most of the people will not be able to realize RCI benefits even up to 10% of what they say.
· They run promotions year around, so if they say this offer is for just today/ this week, do not believe them.
· Usually you can avail free/complimentary holidays in low season only.
· Negotiate on complementary offers/validity days.
· There is no regulatory body in India to govern timeshare industry. Many timeshare companies have gone burst in past.
· Timeshare model Mahindra Holidays follows is not very transparent and complex too, you will not be able to know how company is performing.

Membership termination rules:
If you cancel your membership after ten days (not ten working days) of enrollment you will loose your 60% money straight (in case of full payment), in EMI scheme you will have to cancel your credit card :). Look another post:

Have you read all membership rules before signing it? you will get your membership kit only after a month. Mahindra Holidays has been changing membership/booking rules on their own wishes, can you you adjust with ever changing rules. 

Buy it in seconds sales:
· If you find membership useful to you, buy it in second sale as you can get 30-50% discount after adjusting for promotional gifts items. Link to Buy/Sell entries

Do not forget to Read following post:
My observation on Club Mahindra Membership
What are you paying for your Timeshare Membership?
Club Mahindra at its best: from 50 to 70 consumer cases in 10 months

Tuesday, October 28, 2008

Club Mahindra at its best: from 50 to 70 consumer cases in 10 months

Recently (Dated 30th Sep 08) Mahindra Holidays has again filed its DRHP (Draft Red Herring Prospectus) with the SEBI. Earlier (Dated 14th Dec 2007) also it filed DRHP with the SEBI which it withdrawn because of unfavorable market conditions.

Comparing both these prospectus .. , the number of Consumer Cases against the company has increase from 50 to 70 in these 10 months.



Monday, October 13, 2008

Again!!! wrong information from ClubMahindra

If you have read above advertisement , this one question for you

What is a specious apartment?

a) a specious room with bathroom
b) a specious room with bathroom and balcony
c) a specious room with bathroom, balcony and kitchen
d) none of the above ..

If your answer is c) , then you are with me. Otherwise pardon my ignorance.


When Club Mahindra is advertising like this, same time they are reducing kitchen facilities in each of their properties also their recently acquired properties does not have any provision of small kitchenette in Studio or a full kitchenette in a one/two bedroom units. Many of their affiliated/leased resorts lack kitchenette facilities.

To list few ..

1) TUSKER TRAILS ( acquired from Taj Hotels , 32-rooms)

A mail from
Member Relations officer says

"We have only studio apartment available without kitchenette."

ClubMahindra brochure for the resort says ..

The resort offers a total of twenty five rooms, spread across five chalets. The architecture reflects the distinct style of construction deployed by the Travancore Raj. All rooms are air conditioned, with plush furnishing and attached western toilets. Amenities include a mini refrigerator, tea and coffee making facilities, a wall mounted LCD television and a DVD player.

(no kitchen!)

3) Hotel Villa Park - Ooty ( 90 rooms)
(News: PVP Ventures sells "Hotel Ooty Villa Park)

Wednesday, June 18, 2008

Club Mahindra - RCI Membership Terms and Conditions

These rules are from the application form I filled in 2004. Most of the rules should be same now also. You are advised to check these rules in your application form for your self before signing it.

These pics looks dull but in original size easily readable, you can click on these to view larger image.

Monday, June 9, 2008

Club Mahindra Cancellation rules

You are advised to check these rules in your application form before signing it. 

Old rules from the form  I filled in 2004.

Saturday, April 12, 2008

Want to Buy or Sell your Timeshare/ClubMahindra membership

Why old membership comes at that much discount? Simple, it does not have Sales and Marketing expenses built into it. Look at following post to see what it takes for ClubMahindra to sale a membership.

Is there any difference between old and new membership?
People who bought in resale are happily using it without any differentiation. There is no label on your membership that says it is first or second sale.  

Then why not buy from an existing member with great discount. 

You can make Sale entry in to this table using  link  .

Many things have changed on this page.  
  • Buy entries will be hosted separately to make it convenient to browse. 
  • New table allows you to short each column, you can sort `Added Time` column to see old or new entries at top. 
  • You can apply filter  on Type, Season, Timeshare Company columns
  • You can click on `view` in left most column to see details of that row. 
  • You can now open table in a new wider page  <<link>>

Old entries has been moved to a different table for easy maintenance. 

As this product is not easy to sell or buy,  most of the older entries are still active, people interested in buying or selling a membership are encouraged to look older entries also. 

Online Form powered by

Year 2015 Price List 

Now let' look at below calculation,
4.74 Lakh Rs. borrowed to buy a new membership on 25 year EMI option at 9% interest rate, borrower has to pay 48,256 Rs as his yearly installment. 

Your first year vacation cost comes to 48256 + 11600 (ASF) = 48015 Rs ~ 8550Rs/Day.

There is another way of calculating vacation cost,  follow below link .  True [Inflation Linked] cost of ClubMahindra Vacation

Other Related Posts:

My observation with Club Mahindra Membership
What are you paying for your Timeshare Membership?

Saturday, January 19, 2008

Fundays piggyback on ClubMahindra Members

Fundays is Mahindra Holiday’ timeshare offering to corporate, introduced in October 2006. This offering is based on a points system for the 10 year term. . A corporate member may offer family holidays to their employees. A Club Mahindra Fundays member has to purchase a minimum 10,000 points and additional points can be purchased in multiples of 1,000 points. 67% of the points purchased by a member are termed as “Premium points” and can be used in all four seasons - Purple, Red, White and Blue, in Club Mahindra Holidays resorts and all three seasons - Verve, Buzz and Pep, in Zest resorts. 33% of the points purchased by the member are termed as “Classic points” and can be used only in the White and Blue seasons in Club Mahindra Holidays resorts and only in the Pep season in Zest resorts.

As of October 31, 2007 Mahindra Holiday has sold 1,128,849 Club Mahindra Funday points. That is 112 times minimum point required to purchase corporate membership.

What does it mean to ClubMahindra customer :
  • Purple season which is not available to general customer is available to corporate customers.
  • One corporate membership is equal to how many Red Studio membership?

I do not know, but for sure each corporate customer membership must be equal to many (?) single normal customer membership. Otherwise why Mahindra holidays will create this brand. So how much load it is on ClubMahindra members : 1*112 or 5*112 (=600) or 10*112(=1200) Red Studio membership?

Other related articles

MahindraHolidays Spend ~30% of their Yearly Income on Generating Sales

Mahindra Holidays spends almost 30% of it’s yearly income (Including ASF) on it’s sales expenses ( commission , Advertisment, promotions etc ..)


Page # 5, 132

Some Other Related Post

Membership Growth Vs Room Capacity for MahindraHolidays

Membership Growth Vs Room Growth

  • Members (growth*)
    Rooms (growth*)
    Mar 2004
    Mar 2005
    28,491 (38.74%)
    500 (22.25%)
    Mar 2006
    38,691 (35.8%)
    606 (21.2%)
    Mar 2007
    53,101 (37.24%)
    675 (11.38%)
    Oct 2007
    63,375 (19.34%)
    736 (9.03%
*Growth from previous year’s number
Page # 61, 73, 171

Source : Mahindra Holidays Investor presentation Feb 2013

Some Other Related Post :

Some more facts about ClubMahindra membership- II

In my earlier post [Some more facts about ClubMahindra membership- I] I have highlighted that Club Mahindra has only a 707 Vs 1218 required rooms.

Here I want to highlight some more facts which show it is not only “ClubMahindra” brand of Mahindra Holidays but there are other categories of Mahindra Holidays customer who share these rooms.

1) One time resorts users (non-Members customers) share same rooms (within the count of 707) mostly available in RCI Gold Crowned resorts only.

a. MahindraHolidays earner 10.5 Cr yearly by renting accommodation to non-Members compared to 22.77 Cr Rs. by way of ASF charge from the customers.

2) “Fundays” , another brand of Mahindra Holidays, usually sold to corporates, Fundays members share same rooms as ClubMahindra members, and these members can avail 2/3 rd of their entitlement in Purple and Red seasons.

What does it mean to ClubMahindra Members:

1) Effective room availability is further less for ClubMahindra members compared to 707. As 112 of corporate customer and 10.5 Cr worth of non-member customer share your 707 rooms.

2) Mahindra Holiday staff does not tell about their rental of resorts room to non-members, while enrolling a new customers. They says (read Q3), it brings down ASF charges to the customer. Then what is the point in promising to keep ASF linked to some price index, any way they have devised a way to fill the short fall (inefficient operation) at customer' cost.

Other related posts:

Thursday, January 3, 2008

No more entry load from 4 Jan 2008

SEBI has removed the entry load for all investments made directly to the fund house. If you apply directly by way of the Internet or directly sending/submit application to the AMC office no brokerage will be charged.

Directly applying for Mutual Fund can save 2000/- to 2500/- for each 1 Lack Rs of investment. Moreover this saved money will grow over the time to enhance your return.

Investment Amount

Fund Value On first Day



Your Portfolio Value

Actual Return

Investment done through Broker






Direct Investment



40 %



Please note,
Buying on internet merely will not save you entry load. Like if you buy mutual fund on ICICIDirect or HDFC Bank or even in that matter if you buy ICICIPru mutual fund from ICICIDirect it will not save you entry load.

A list of Mutual Fund House :

ABN AMRO Mutual Fund
Benchmark Mutual Fund
Birla Sun Life Mutual Fund
BOB Mutual Fund
Canbank Mutual Fund
Chola Mutual Fund
Deutsche Mutual Fund
DSP Merrill Lynch Mutual Fund
Escorts Mutual Fund
Fidelity Mutual Fund
Franklin Templeton Mutual Fund
GIC Mutual Fund
HDFC Mutual Fund
HSBC Mutual Fund
ING Vysya Mutual Fund
J M Financial Mutual Fund
Kotak Mahindra Mutual Fund
LIC Mutual Fund
Morgan Stanley Mutual Fund
Principal Mutual Fund
Prudential ICICI Mutual Fund
Reliance Mutual Fund
Sahara Mutual Fund
SBI Mutual Fund
Standard Chartered Mutual Fund
Sundaram Mutual Fund
Tata Mutual Fund
Taurus Mutual Fund
UTI Mutual Fund

Tuesday, January 1, 2008

Some more facts about Club Mahindra Membership - I

All the numbers here I have taken from Mahindra Holidays' draft prospectus with the SEBI for their upcoming IPO.


"Currently, we have a total of 21 resorts across India and Thailand, of which we own seven properties. Our Resorts (resorts owned by us or on long term lease with us) contribute an aggregate of 639 apartments and cottages of a total of 736 apartments and cottages owned or leased by us."

"Club Mahindra Holiday membership c
urrently entitles members the choice of holidaying at any of our 19 resorts, for seven days each year, in a season and apartment type of their choice, for 25 years. ... ... As of October 31, 2007, we have 63,375 Club Mahindra Holiday vacation ownership members."


  • Out of these 21 resorts 2 resorts are for Zest members so ClubMahindra Members has total 19 resorts (707 apartments) for their use.

  • ClubMahindra does not maintain apartment inventory matching their growing member base.

63,375 ( Members)
_______________ = 1218 apartments
52 ( weeks in a year)

  • Club Mahindra has 707 apartment compared to required 1218 apartment. - Bad


Mahindra Holidays Owned Resorts

Cumulative Capacity
Goa, Goa
Coorg, Karnataka
Munnar, Kerala
Binsar, Uttaranchal
Manali, HP
Ashtamudi, Kerala
Manipur Villa, Binsar

Long term leased

Cumulative Capacity
Bangkok, Thailand
Corbett, Uttaranchal
Dharamshala, Himachal
Kodaikanal, TamilNadu
Mussoorie, Uttaranchal
Pattaya, Thailand
Poovar, Kerala
Ooty, Tamil Nadu

Short term leased

Cumulative Capacity
Jaipur, Rajasthan
Yercaud, Tamil Nadu
Panchgini, Maharashtra
Mahabaleshwar, Maharashtra
Kodai Hill Country, Tamil Nadu


62.1% capacity is 5 star certified -
3 resorts has 62.1% of total capacity

3 resorts are 5 star certified
5 resorts are RCI Gold Crowned
All other resorts (18) are 3 star quality only

75% capacity is in self owned resorts
24.9% capacity is distributed among 15 resorts

Other related articles