Fractional Use Plans

Written by Diane Sievert
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Fractional use plans vary in expense and policy, but all guarantee luxury accommodations at a fraction of the price you would pay to own and maintain your own vacation home. The following list outlines the general types of fractional use plans. However, before you sign on the dotted line, you'll want to make sure you carefully peruse the use plan you ultimately choose since each management company will have its own fine print.

Types of Fractional Use Plans

The most basic kinds of fractional use plans mirror the most basic programs associated with time shares. The owner purchases a share of time (usually somewhere between a fourth and a thirteenth) from a management company. This purchase guarantees the consumer the right to use the vacation home for a specified amount of time during peak vacation season and off seasons.

Fractional resort clubs, on the other hand, tend to offer more options. A consumer can purchase a particular kind of home, but not specify the locale. This enables the consumer to vacation in said type of home (i.e., three bedroom luxury condo) at any of the resorts maintained by the fractional management company. This is becoming an increasingly popular kind of usage plan.

More complex usage plans involve point systems. In this type of system, the consumer will purchase a certain number of points that can then be used toward the use of various travel packages. These packages include everything from airfare to lift tickets.

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