Few points that one must consider before taking holiday club membership -

" Learning from others mistake is smartness "

As per the data... 44% members aren’t utilizing their club membership holidays after buying. And many want to cancel but cancellation policies are very hectic.

Once you enter can't withdraw...... you have to continue and if not possible then can sell to somebody else.

If we check the sites like OLX and Quicker...... we will find, lot of sellers who want to sell their membership card but there are no buyers.

Each day generally we take 4 to 5 financial decisions or sometimes even more. But there are fair chances that few of them would prove wrong.

Decisions taken emotionally on small money matters like movie & dinner may not create much leakages to our finances.

But decisions where large amount is involved with future maintenance like club membership for holidays without understanding our own requirements & without doing money calculations are not fair to our hard earned money.

1)      Let’s assume.... one has to pay upfront Rs.5 lakh for 25 years club membership..... But instead of that if he put that Rs.5 lakh in 8 % FD then he will get Rs. 40,000/- interest per year  which is lifelong and Rs.5lakh amount will also be get back whenever he  wants. It means he would loss Rs. 40,000/- interest per year, if he pays Rs.5 lakhs for Club Membership.

·        Loss of that Rs. 40,000/- interest plus one has to pay Yearly maintenance in club membership which is minimum Rs. 10,000/-.

·         It Means.....

Rs.40000/- + Rs 10000/- = Rs. 50000/- per year (for 7 days accomdation)

·         And if we divide that...

50000 ÷ 7= 7100 per day.....

in that amount one can get a best accommodation  anywhere.

·         So point is.... why to restrict it just for few locations and few areas & that too on the mercies of clubs & resorts?

2)      Also understand.... is it suit to our family nature?

·         Generally  ask yourself why are we going for travelling?

·         If we want to go to other places mainly to learn & explore  other country / states culture, economy and want to see heritage  structures than this type of luxurious membership can't work for you. It's mainly for leisure.

·    So if we are passionate  about travelling & want to explore the places in and around the city.....don’t restrict yourself to sit & enjoy at one place only.

3)      When it  comes to food and other cost......  they charge us heavily.

·    They run their business smartly. Annual charges are in their hand and it is almost above inflation._

·         And the food and other facilities cost are also very very high.

4)  Many holiday membership's are missold by showing different attractions and by using smart tricks-

·         There is mostly a gap between number of members & inventory  available  in the resorts -

·         Holiday Club houses proudly say that there  membership is increased  but when we look into their inventory  data  there is huge gap  between members and resorts they have.

·         All resorts given on rental to non members.... also even in the peak seasons.

·       And members can get good resort or booking only if booked almost before 6 months....which is very difficult to plan for many.

·         So members have to compete  with  non members ...

5)     There is a big difference between what club membership promise and what they deliver. Many times they fail to fulfill peoples expectations.....

·      There are lots of other loopholes within and if that club can't do profit there is always risk of shut down. Ultimately there is also risk of our paid up amount.

·    So kindly suggest to review own requirement, priorities.... and do not to take decisions emotionally.

·    If you are confused in few points...  consult your financial adviser before taking any such membership.