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Holidays For Life, Coventry

Evaluation of a lifetime holiday bond scheme

Project Description

Petersham Group were retained by Holidays For Life Ltd to independently review and evaluate their embryonic Lifetime Holiday Bond (LHB) scheme. In essence the scheme offered people the opportunity to buy a single premium holiday bond, or bonds, that would provide them with annual holidays throughout their lives, or until such time as they chose to cash in or transfer their bond(s). The potential appeal of the LHB lay in the concept of paying in advance for the recurring annual benefit of a holiday.

The LHB proposal was similar to a number of established schemes, but it’s promoters argued, was better than and different from those ‘competitor’ schemes (such as, for example, The Holiday Property Bond) because it incorporated a life assurance policy and had secured the provisional backing of both a major credit card company to endorse it and an international resort accommodation company to supply much of the required holiday accommodation stock.

Against this background Petersham Group undertook a major review of the scheme to independently verify the extensive work already undertaken by HFL to develop the LHB scheme and to interrogate the financial model and all the underlying assumptions.

A significant interview programme was also conducted to confirm HFL’s assumptions and the attitudes of those companies and organisations already involved with or committed to the venture.

The review raised a number of concerns about the projected speed of take-up of the LHBs and the ability to service that demand with the holiday accommodation stock available. This led to some significant changes being made to the proposals and a significant change of direction by the promoters.

Project Details

  • Client Holidays For Life Limited
  • Date August 27, 2015
  • Tags Business Planning & Financial Modeling, Other
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