| As a travel enthusiast and bargain hunter, when I | | | | assume four weeks vacations in a two year period |
| heard about a luxury travel club membership, I set | | | | for the analysis. Every week in a decent hotel where |
| out to do an investigation. I've always loved working | | | | we like to go, places like Hawaii, Mexico, the |
| with numbers and performing a cost - benefit analysis | | | | Caribbean, and Europe costs $200-$300 per night. I'm |
| on a travel related product is one of my favorite | | | | going to use the $200 per night figure for this |
| things to do, at least besides actually taking | | | | analysis to be conservative. That means my four |
| vacations. | | | | weeks of vacation will be 28 nights at $200 per night |
| In case you haven't heard about the latest version of | | | | for a total cost of $5600. Now let's consider the |
| the luxury travel club membership, let me quickly give | | | | membership. I'm not even going to consider the fact |
| you the details. For a one-time purchase price, | | | | that I can book in advance and get into the nice |
| members obtain a lifetime membership (100 years | | | | places during peak season. I'll just carry that as an |
| and transferable through your will) that offers | | | | intangible. It has huge value to me, but it's hard to |
| phenomenal savings at over 5000 worldwide luxury 4 | | | | quantify for everyone. With the membership, my |
| & 5 star resorts. These are largely timeshare | | | | four weeks of vacation will cost $298-$699 per |
| properties that are looking to resell the | | | | week. I'm going to assume two weeks at $298 and |
| accommodations on behalf of people that won't be | | | | two weeks at $699 for a total cost of $1994. Add |
| using their time. There are some other benefits of | | | | to that my membership cost of $2995 and my total |
| membership, but I'll cover that in my analysis. | | | | is $4989. So after a two year period, my |
| I decided to assess the value of the travel club | | | | membership, including the one-time purchase price, |
| membership to a person like myself, a baby boomer | | | | has already paid for itself and saved me about $600 |
| nearing retirement age with kids. By the way, you | | | | in the process. Now is where it gets exciting. Let me |
| could possibly relate purchase of the membership to | | | | consider the next two years. That would be another |
| the purchase of a timeshare, with several significant | | | | $5600 without the membership. With the membership |
| distinctions. You don't actually purchase any real | | | | it's only $1994. At this point my membership is saving |
| estate, which is a good thing because it means there | | | | me over $3600 per year! And it keeps on saving |
| are no maintenance fees, no escrow fees at | | | | year after year. |
| purchase, no property taxes. And since the | | | | Now let me tell you my plan for this membership. |
| membership is not assigned to a specific property or | | | | The initial purchase price was money that I had |
| specific week of the year, there are no upgrade | | | | earmarked for my kids. But they don't need it right |
| fees associated with using the membership. That | | | | now, so I bought the membership and will pass it |
| makes my analysis a lot easier. | | | | along to them in my will. That way they get the |
| Let me start with the cost. The travel club lifetime | | | | benefit of membership for their lifetime as well. In |
| Platinum membership I purchased and am analyzing | | | | the meantime, whenever I want to go on vacation, |
| cost me $2995. There is also a Gold membership | | | | or my kids want to go, we always book using the |
| available for $1495 with some restricted benefits. | | | | membership. My kids can take their vacations |
| When I go on vacation, sometimes it is as a couple, | | | | separately and utilize the guest week feature. I don't |
| but other times we have a larger group, up to 8 | | | | think I mentioned that. Guest weeks are a way for |
| persons. That works out great because the | | | | me to offer the benefits of my membership to my |
| membership can accommodate groups of that size. | | | | friends, neighbors, or family members. |
| Whether going as a single, couple, or larger family | | | | The bottom line is that even with the up-front |
| group, the price for an 8 day, 7 night vacation at 4 | | | | expense of $2995, the benefits of the travel club |
| & 5 star resorts in beautiful locations is | | | | membership more than offset the cost after only |
| $298-$699. | | | | two years of usage. After that, I'm saving thousands |
| I like to take two weeks vacations a year. So let me | | | | of dollars every year. |