Vacation clubs provide a variety of ways in which to save on hotel fees, airline flights, restaurants and more. There are many different options to choose from, which can seem confusing if you are not sure exactly what you’re looking for. Here are some typical types of vacation clubs with a brief explanation to make the process easier.
Perhaps the Most Common Type of Vacation Club
Many people are familiar with how timeshares work. Owners usually pay a yearly fee in order to obtain the rights to a specific property within a predetermined time-frame. For example, an owner might have rights to a condo in Aspen for the second week of February or a log cabin in Tacoma for a specified week in October. Timeshares are transferable and can be leased to other vacationers at any time.
Clubs That Offer Exclusive Private Residences
Whenever a member purchases a destination club, they receive an exclusive private residence. An initiation fee is required that is often less than what the price of a timeshare would be. However, the price of nightly rental might be higher. Accor vacation club memberships is an example of a company that offers destination club packages. There might be different types of destination clubs, such as pay-as-you-go, non-equity and equity memberships. The benefit of this type of club is that it allows for more flexibility in that members can select from different locations, accommodations and even specify the date they wish to arrive. It is a great option if you want the benefit of going on vacation on your own terms.
Clubs in Which Members Own a Percentage of Property
Members of fractional clubs maintain a percentage of a specified property for a certain amount of time. The time-frame in which they can visit the property is solely based on how much of an initial investment they made. These types of clubs might be more expensive than other types because the investment is based upon the vacation property, rather than the amount of weeks the property will be visited. Members might also have to pay for yearly fees to maintain the property.
The New Generation of Vacation Clubs
With the birth of pay as you go vacation clubs, members can now put down a one-time initiation payment and then pay traditional nightly rental rates. Some types of clubs may require an annual fee to maintain membership. The main benefit of pay as you go clubs is that you can receive a significantly reduced initiation fee, without having the responsibility of maintaining the property because you will not have any equity in it.
Since there are many different types of vacation clubs that each offer different benefits, identifying what your budget will allow for, what your vacation preferences might be, what kind of upfront costs may be associated with the club, and which clubs offer discounts to your desired destination can help to make your purchase more attainable. If the time you want to go on vacation is the biggest factor, fractional clubs or timeshares might be your best option. If flexibility is your biggest concern, the pay as you go option might be better suited for your needs.