| Vacation clubs | Timeshares | Second homes | |
| Purchase price | May require you to buy membership points to join | Requires an initial purchase of a unit | Requires a down payment |
| Financing costs | Subscription-based service with no financing required | Private loans are available | Traditional financing and fractional ownership options available |
| Membership fees | Requires annual or monthly payments | No membership fees required | No membership fees required |
| Maintenance fees | Covered by your membership fees | Responsible to pay and subject to price increases | May require payment, with fully managed options available |
| Vacation costs | Potential discounts on lodging, dining and attractions | Subject to tourist prices for dining and attractions | Potential savings due to residential location |
What is a vacation club?
A vacation club is a membership-based travel service that offers members access to various vacation destinations, accommodations, and attractions within a network of affiliated resorts or properties.
| Pros | Cons |
| Access to a range of destinations | May be subject to blackout dates |
| Potential discounts on accommodations and excursions | Pay a membership fee |
Vacation club costs
While timeshares may have a higher initial purchase price, a vacation club membership can be expensive to maintain. Let’s take a look at the true costs of a vacation club membership.For example, a Holiday Inn Club membership can begin by purchasing credits worth around $16,000. Depending on peak season time slots, these amounts can result in a stay lasting a few days or up to an entire week. When you run out of credits, you’ll need to purchase more to continue being a member and access the club’s amenities. These fees cover the upkeep and operational costs of the club's properties. They are typically paid annually and vary depending on the membership type and usage. Along with the initial purchase, financing and maintenance fees, travelers will need to factor vacation fees into their budget. The average vacation cost in 2024 is around $1,986 per week for one person. However, vacation clubs also offer discounts for lodging, dining and attractions.What is a timeshare?
A timeshare is a property owned by multiple individuals or families that own a "share" of that specific property. That share allows them to visit the property for a set period of time each year.
| Pros | Cons |
| Dependable and guaranteed vacation spot | Potential exposure to high-pressure sales and may be difficult to resell |
| Shared maintenance costs | Less flexibility in setting your own vacation schedule |
| Limited time to take advantage of your vacation home |
Timeshare costs
When you initially purchase a timeshare, you acquire a specific share or right to use a property for a set period each year, which often involves a substantial upfront cost. Currently, the average timeshare transaction is around $24,000. Timeshare financing models are also known for high interest rates. Some travelers even consider taking out a personal loan to finance their vacation. The difficulty of finding affordable financing solutions has led to predatory companies taking advantage of vacationers in search of a good deal.Timeshare maintenance fees can be $1,000 and potentially increase yearly. Vacation fees may be most expensive where timeshares are located and, unlike vacation clubs, there are typically no discounts for dining or attractions.The third option: A second home
Best for those who want to own a home away from home
- Visit multiple times a year. When you own a second home, you have more control over enjoying the space when it’s convenient for you and your family.
- Potentially benefit from real estate ownership. Full and fractional ownership of a second home can result in an increase in equity and property appreciation.
- Enjoy a streamlined resale process. When it’s time to sell your second home, you can list your home to interested buyers on reputable house-buying websites.
- Relax in a real home. If hotels and resorts aren’t for you, enjoy the cozy comforts of staying in a one-of-a-kind second home.
Vacation club vs. timeshare FAQ
What is a timeshare vacation?
A timeshare is a shared vacation model that allows purchasers to enjoy a vacation property for a set period every year. A timeshare vacation offers consistency for those who want to enjoy the same destination once a year.
What is a better option than timeshare travel?
Owning a second home is a potentially better option than timeshare travel since you can visit your vacation home multiple times a year. Turnkey fractional ownership models are good for those who want deeded ownership.
Which offers the best value for money?
In general, a timeshare may be the cheaper option compared to a vacation club. Both vacation styles have luxury options that can make them more expensive. In terms of recurring costs. Timeshare maintenance fees and vacation club membership fees can increase yearly. Second homes, however, are real estate assets that have the potential to appreciate in value.
Are timeshares or vacation clubs worth it?
Although vacation clubs offer discounts to nearby attractions, their high membership fees and point systems may not make the savings worth it. Timeshares are notoriously difficult to sell, making them not worth it to some vacationers.
