Vacation Club Basics – What Exactly is the Vacation Club?

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In the next couple of blog posts, we are going to explore the Vacation Club a little more in-depth.  Exploring more of the hows and whys of the Vacation Club in the hopes that a more basic understanding of your ownership will help you make better use of your Vacation Club membership.

So, as with all things, it’s best to start at the very beginning.  What is the Vacation Club?

What is The Vacation Club?

You attended a Vacation Club Presentation where you purchased and chances are that you had the Club described as a Points program and a great way to vacation throughout the world (a very basic paraphrase, I’m sure).  It is all of that and then some however, does that really explain what it is?

Discussion

In order to fully understand the Vacation Club and how your Points work, we need to understand some basic concepts of traditional (weeks) timeshare.  With traditional timeshare, owners purchased a specific week and unit number at one specific resort.  That meant that every year, you and your family would go to your unit and enjoy your week of vacation.  If you didn’t want to go to the resort, you could rent the unit out and collect some rental revenue to use as you like.  Yet another option would be to deposit the week and make an exchange through your exchange company for another resort somewhere within the exchange system.  Pretty basic concept.  One unit, one week, three options to use.

Now, think of each resort with weeks that are owned by owners with those options.  52 weeks in a year, 100 rooms per resort – about 5200 owners at a resort if one person owned each and every week separately.

We all know that isn’t the case though.  There are some resorts where yes, each and every unit for each week of the year is owned by one person but here is where the Vacation Club comes into the picture and makes timeshare and vacation ownership a whole new game.

The Vacation Club is set up as a Deed in Trust.  That means that every member is a member of that deed.  When a member purchases into the Vacation Club, they purchase a set amount of Points.  Those Points are then matched up to a piece of inventory that correlates to the amount of Points purchased and the Vacation Club then purchases that piece of inventory from the developer and puts it into the Trust.

Once the piece of inventory is purchased and entered into the Trust, that inventory is then made available for everyone in the Club to use on a first come, first serve basis.  Unlike traditional timeshare, there is not just one piece of inventory at one resort, for one week attached to your Points.  Any piece of inventory owned by the trust (as long as it’s available for booking) is able to be reserved using your Points.

Another great thing about this method of Vacation Ownership is that the Vacation Club can go to other resorts and purchase more Vacation Club inventory as it is made available.  So, in our case, we have branded resorts that represent where the majority of the Vacation Club Inventory is owned.  Keep in mind that most of these resorts were previously sold as traditional timeshare, meaning that there are still traditional timeshare owners at these properties and the Vacation Club does not own every week and every unit at these properties.  As we speak to more traditional owners at the InnSeason Vacation Club Resorts and they convert to Vacation Club members, the amount of inventory in the Vacation Club Trust will grow in relation to those converted members.

The Vacation Club also seeks out high-quality resorts outside of the InnSeason Vacation Club brand.  These resorts where the Vacation Club owns inventory are known as DestINNation resorts.  Currently the Vacation Club has six official DestINNation resorts in some diverse locations – all of which were requested by current Vacation Club members!

So, knowing now that the Vacation Club owns selected weeks and units at selected properties, we know that the any given week at any resort in the Vacation Club will have a mix of inventory that looks similar to this:

Numbers are not exact - this is just an example

As you can see, during any week, there is a mix of owners.  Of the 76 units at InnSeason Resorts Falls at Ogunquit, 40% of those units are owned by traditional timeshare owners.  20% of those units have been deposited to the exchange company and owners of other timeshare resorts have exchanged into the unit.  30% of the units are owned by the Vacation Club and are booked by Vacation Club members using their Points.  The Developer may own 5% of the units and there may also be 5% of the units that are owned by delinquent owners who have not paid their annual fees which means they are not able to use their week but the homeowner’s association must re-coup some of the operating costs by renting the unit.

Understanding how the Vacation Club is set up through its inventory is key to understanding how to use your Points to get the vacations you wish to enjoy.

Our next post will go into the different types of membership within the Vacation Club and what that means when it’s time to book your yearly vacation.

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