Why Vacation Clubs Are Even Worse Than Timeshares – Technologist

Traveling for less is one of money expert Clark Howard’s favorite pastimes — and it can be done in many ways.

One way it cannot be done is via a vacation club, says Clark.

Thinking About Signing Up With a Vacation Club? Read This

Vacation clubs have risen in prominence over the past several years, and although there are some fans of the model, there are real concerns with not only the practices of the salespeople who entice you (with alcohol-fueled presentations), but also the extravagant perks promised.

In this article, we’ll explain what a vacation club is and why Clark says it’s not a good deal for travelers.

What Is a Vacation Club?

A vacation club is an arrangement that allows travelers to pay a yearly or monthly fee to stay at an assortment of destinations. Oftentimes, you’ll see fliers and videos that show pristine beaches and waterfront rooms, but many people never make it to those places.

“The idea of a vacation club is that you don’t own anything,” Clark says. “You’re just paying for the right to be able to take vacations whenever you wish for so many days a year for free or the rest of the year at greatly reduced prices.”

Adding to their legitimacy is the fact that many vacation clubs have names that feature major hotel or hospitality brands. For example, here are just a few:

• Marriott Vacation Club
• Disney Vacation Club
• Hilton Grand Vacations
• Hyatt Vacation Club

No matter which company you book with, Clark says vacation clubs are very similar to another awful travel product: timeshares.

“Timeshares stink. And I’ve said this for 40 years,” Clark says. “Timeshares are something that are defective by their very design because no matter how much you love your timeshare, when you buy it or for years to come, when you don’t want it anymore, it sticks to you like glue.”

Come to think of it, vacation clubs which typically lure customers due to being associated with major hotel brands, are worse than timeshares, says Clark.

Why Are Vacation Clubs Worse Than Timeshares?

Although both timeshares and vacation clubs typically feature high-pressure sales tactics to get customers to sign the dotted line quickly without thoroughly reading the contracts, the latter only promises “access” to a property — not the property.

According to a recent New York Times article on the subject, many vacation club subscribers ended up in 40-year contracts and were allegedly unable to use any of the benefits.

“Remember, at least with a timeshare, you have your designated week and you can use your week year after year — it may not be a good deal, but you have your week,” Clark says. “With these vacation clubs, it’s just an empty promise that you’ll be able to take a vacation.”

To get out of a vacation club, you often will lose the membership fee, which is typically tens of thousands of dollars, depending on the specific deal.

“To exit a timeshare, you have to pay somebody to take it over almost always,” Clark says. “And it’s almost impossible – even in the most perfect situation – to not lose tons of money when you sell a timeshare.”

Read our guide on how to sell, cancel or get rid of a timeshare.

Is It Possible To Get Out of a Vacation Club?

According to the New York Times article, one customer was only able to get out of her vacation club agreement by canceling it within the five-day grace period. But that has not been the case for many others.

In one case, customers found out that a vacation club with Hyatt branding “is in fact governed by the laws of Panama, according to the contract’s fine print,” according to the Times article.

Some options you might consider include:

• Filing a complaint with your credit card company.
• Make a “stop payment” with your bank.
• Litigation (this could potentially be costly and time-consuming)

Want more tips? Read our guide on how to fight fraudulent bank charges.

Bottom Line

Clark says the travel industry has simply replaced the word ‘“timeshare” with “vacation club,” which appeals to frequent travelers who want to get away for less. 

“Enough people have heard that the word ‘timeshare’ has become a damaged word,” he says. “And so the industry wants to come up with new ways — and they’ll use different terms like ‘interval ownership’ or whatever — but the latest is actually, believe it or not, worse than timeshares. Yes, the industry managed to come up with a way to make it worse: vacation clubs.”

So here’s Clark’s bottom-line advice on vacation clubs:

“Don’t fall for a timeshare that by any other name is still a rotten, terrible deal,” Clark says.

Instead of signing up for a vacation club and hoping the destination, price and availability work out, “What should you do? Buy the best deal on a vacation when you want to take one.”

Want more travel advice? Read Clark’s #1 Rule for cheap travel and check out the best travel deals available right now.

The post Why Vacation Clubs Are Even Worse Than Timeshares appeared first on Clark Howard.