The vacation club experiment

April 28, 10:01 AMDC Specialty Travel ExaminerJoanne Poesch

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We're on our last day of a fabulous weekend getaway, courtesy of Hilton Grand Vacations Club. Yes, we did have to sit through a two-hour sales pitch for the club, but it was actually very enlightening and made us scrutinize the way we travel and just how much we spend.

On the surface, vacation clubs sound like a great alternative to time shares, but when you really get down to the nuts and bolts, here's what we discovered and how it compared to the way we currently travel.

The good:

• The selection of properties is outstanding - far better than what we could afford on our own
• Hilton's discounted room rate Club Members who forego using their points and opt for a cash payment can't be beat(shhh - it's supposed to be a secret)
• Club Members also receive discounts on adventure vacations, cruises, RVs and more!
• Once the initial cost of the club is paid off (anywhere from $13,000 to $130,000 depending upon the number of points you would like each year) the program more than pays for itself since you're just paying the annual maintenance fee

The bad:

• Until the initial cost is paid off, the cost just for accommodations for a year was over $3,000. This assumed an entry point to the club of $19,000 (5,000 points each year), a seven-year loan at 5% and annual maintenance fees of $880.
• With 5,000 points for a family of 5 traveling during Spring Break, this got us a seven-day stay at a Hilton property which was at least double what we would normally pay for a hotel during the same time period. 
• When you figure in the cost of eating out, you probably come closer to the $3,000 and could save some cash by utilizing the kitchens in the unit, but then where's the vacation for the cook?
• With a mortgage and three kids headed to college, adding a vacation club payment to our budget so that in seven years we can enjoy it practically cost-free doesn't quite add up

So while vacation clubs aren't for everyone, I'd still highly recommend taking advantage of a preview offer that comes your way. You might discover a program that's right for you and, at the very least, enjoy a well-deserved getaway!

Read more about timeshares and vacation clubs from Mark Silverman.