An Introduction to Vacation Home Alternatives

For many people owning a luxury vacation home in an exclusive location has long been an aspiration. However, the costs, maintenance and reality of limited usage have driven many individuals to explore alternative models. These models have proliferated, to the extent that there are multiple options, each with their own advantages and detriments. There's no one size fits all and it's a very personal decision to find the ones that best fit you and your family.

This section runs through the different options and explains the rather confusing terminology. Many of the organizations use the same terms to describe different offerings. We wil help you explore the pros and cons of four prominent luxury vacation home alternatives.

Destination clubs provide access to a broad collection of vacation properties, often spread throughout the world, and may also provide access to specialized travel and tours. Some clubs refer to themselves as 'luxury vacation clubs' or 'membership-only travel clubs'.

A wide selection of exceptional homes is the core part of the membership offering. The residences are usually large standalone homes with two to five+ bedrooms, providing plenty of room for friends and family. Other member services may include unique tours and experiences, personalized trips and high end hotel partnerships.

Prior to the member's arrival, the house can be stocked with the food, beverages and flowers that the member requests, and a local concierge is usually on hand to help arrange local activities.

Members do not own any interest in the club and are therefore purely renting their vacation experiences albiet at a very elevated level. They are a direct alternative to Residence Funds and Equity Clubs.

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Residence funds and equity clubs also provide access to a portfolio of exquisite vacation homes but with a key difference: members are also investors and owners of the homes. The home typically provide two to five+ bedrooms, are in sought after vacation destinations, and members may have access to homes in multiple resorts or locations around the world.

As with destination clubs, prior to the member's arrival, the house can be stocked with the food, beverages and flowers that the member requests, and a local concierge is usually on hand to help arrange local activities and provide local guidance.

These organizations sometimes refer to themselves as offering 'fractional ownership' or 'co-ownership' but this is shared ownership of a group of homes. They are a direct alternative to Destination Clubs.

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Owners of luxury fractional property buy a share of a single luxury residence that provides them with two to 13 weeks of usage a year. The homes are usually standalone, spacious single-family homes, with three to five+ bedrooms. The co-owners share usage of the property throughout the year.

In this model, owners are buying into one particular home, although there may sometimes be opportunities to exchange time in other homes. This ownership may be referred to as 'fractional ownership' or 'co-ownership'.

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Owners of private residence clubs buy a share of a luxury residence that is part of a larger development. These homes are typically two to three bedroom units, and provide effortless ownership of resort real estate.

Owners benefit from five-star services and amenities such as daily housekeeping, room service, concierge, on-site restaurants, full-service spas, fitness centers and sports facilities.

In this model, owners usually have opportunities to exchange time in other homes through trade and reciprocity programs. This ownership may also be referred to as 'fractional ownership' or 'co-ownership'.

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