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How Can You Tell If a ‘Travel Club’ Is a Scam?

A nationally recognized reporter, writer, and consumer advocate, Ed Perkins focuses on how travelers can find the best deals and avoid scams.

He is the author of "Online Travel" (2000) and "Business Travel: When It's Your Money" (2004), the first step-by-step guide specifically written for small business and self-employed professional travelers. He was also the co-author of the annual "Best Travel Deals" series from Consumers Union.

Perkins' advice for business travelers is featured on MyBusinessTravel.com , a website devoted to helping small business and self-employed professional travelers find the best value for their travel dollars.

Perkins was founding editor of Consumer Reports Travel Letter, one of the country's most influential travel publications, from which he retired in 1998. He has also written for Business Traveller magazine (London).

Perkins' travel expertise has led to frequent television appearances, including ABC's "Good Morning America" and "This Week with David Brinkley," "The CBS Evening News with Dan Rather," CNN, and numerous local TV and radio stations.

Before editing Consumer Reports Travel Letter, Perkins spent 25 years in travel research and consulting with assignments ranging from national tourism development strategies to the design of computer-based tourism models.

Born in Evanston, Illinois, Perkins lives in Ashland, Oregon with his wife.

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The idea of a “travel club” covers a wide range of organizations and activities, from scam-like timeshares to legitimate memberships that can save you money. All are certainly not equal.

Many are legitimate low-risk operations, such as AARP , AAA , and other independent travel promoters. The most reliable ones are those you’ll recognize the names of. Some resort chains call themselves “clubs,” like Club Med’s all-inclusive resorts . Membership to these is mostly harmless marketing hype, but can offer real discounts: The more exclusive organizations may be exempt from agreements that prohibit third-party agencies from slashing their rates.

Membership fees, if any, are usually nominal—often under $50 a year—and you can easily opt out if the club doesn’t deliver real value. All you have to lose is the minimal initial fee. The discounts they claim may be no better than you could get through other sources, but they’re usually not worse, either. For well-known travel brands like these ones, the scam risk is minimal.

How to Spot a Travel Club That’s a Scam

Others, however, pose a big financial risk. Some require stiff membership fees up front—usually several hundred up to thousands of dollars—and they may commit you to big annual fees indefinitely. They can certainly be honest in that they deliver what they promise; many travelers are happy with their memberships despite the risks and limitations. Others, however, ask you to pay big up front for some promised future benefit. These may or may not be honest; some are clearly outright scams, and others simply inflate the benefits and disguise the drawbacks.

According to law enforcement officials, oftentimes the promised “discount” and “savings” never materialize: The promoters provide prices that are no better than travelers can buy openly, through a wide range of discount sources, and the promised “dream” vacations never seem to become available. They’re selling pie in the sky, and Marie Callender is better at making pies.

The big-dollar travel clubs are the ones should be subject to your scam scrutiny. Although no approach is foolproof, you can usually find out what you need by asking and fact-checking a few specific questions. Here’s what you need to consider:

The Timeshare-Based Travel Club 

Many large travel “clubs” are nothing more than conventional timeshare operations, operating as clubs to avoid the unsavory reputation of timeshares. What they sell is guaranteed annual occupancy, in multiples of weeks, at a vacation area—typically a beach destination, maybe with rights to vacations in a string of different areas. And the questions you need to ask about them are the same as for a timeshare:

What Do I Actually Get?

Examine the offer in detail to find out exactly what it promises, in specific terms. Does it promise a guaranteed specific interval at a specific location? Does it promise enrollment in a recognized exchange system? Check the fine print on the exchange, especially for limitations on how you can use your exchange “points.”

Is There a Switch to the Bait?

Is the asking price the full price? Does the featured buy-in include everything you have to pay up front, or are you subject to additional fees and charges? Does the promotion say or hint that you’d be better off with a higher-level membership?  

What Is My Ongoing Obligation?

In most property-based clubs, your buy-in is only the start. You’re also on the hook for various monthly/yearly “maintenance” payments and assessments. And the operator typically reserves the right to increase these payments without your approval or right of refusal.

Is There Any Asset Value?

Some very high-end vacation clubs actually own a string of vacation properties; members share in the ownership of these properties, and the club operator agrees to repurchase for a reasonable price. But most mass-market vacation clubs offer no asset value to back up your initial “investment.” At best, you own your “membership” and can sell it or pass it along to your heirs. However, some deals are for the term of your life only and revert to the owner on your death.

Is There an Escape Clause or Resell Limitation?

Club promoters may not accept a return, even for a reduced price, and some timeshare-based clubs may limit your ability to resell. The travel literature is full of horror stories of people who just want to get rid of ongoing payments, even if it means giving the interest back to the promoter with no return.

The “Big-Discount” Travel Club

Other clubs promise they have access to large discounts on airfares, hotels, cruises, rental cars, tours, and just about any other travel service you can name. The ones that charge minimal fees are no more than a nuisance; if they don’t work out, you won’t have to refinance your house. But some ask for big membership fees, and those can be a big risk. As with timeshare clones, you have to ask some questions before you buy into one of them:

What’s My Exposure to Risk?

As with a timeshare, you have to check what you actually get, your future ongoing obligations, and, perhaps most importantly, your cancellation options. Check the fine print to make sure that the discounts are guaranteed. “Subject to availability” doesn’t cut it.  

Are the Claimed Discounts Real?

Challenge—and verify—all claimed “discount” deals. Don’t be gullible: Ask to see a list of currently-available deals, and check them through conventional search systems before you accept any broad claim that it will save you money.

Are the Posted Discount Prices Honest?

One hotel-discount membership organization I recently checked out posted some really attractive original prices. But when I went through to the final buy-it page, I found the initial prices did not include mandatory resort fees, taxes, and fees imposed by the travel club. The all-up total prices were about the same as I could get through Tripadvisor (SmarterTravel’s parent company) search links.

What Do Others Say?

The club’s promotional materials probably highlight gushing testimonials. Don’t take them at face value—promoters can easily satisfy enough travelers to elicit a few genuine rave reviews, which the company will then highlight. Instead, check with review and complaint sites like the Better Business Bureau , Yelp , Google reviews (which usually now appear simply by Googling a business), and any other online review source you like. Also, Google the club to see if it has generated any serious complaints—or, even worse, law enforcement actions.

Scam Rules to Know for Any Kind of Travel Club

Make sure any club you’re considering can pass an easy scam test. Often, you can answer the scam-or-not question before you even see the details of a club promotion. Initial claims often can offer some early scam clues:

Scam Clue 1: The promotion is claiming that you’re getting something “free.” No travel service of real value is ever free. The club promoter is making a profit somewhere along the process. Nothing is free. Repeat this to yourself as often as is necessary.

Scam Clue 2: A promotion claiming you’ve “won” something. If you didn’t knowingly sign up for a sweepstakes run by some outfit that had terms and conditions you agreed to, any out-of-the-blue “winner” notification is almost surely a scam.

Scam Clue 3 : A promotion claiming you’ve been “specially selected” for membership. A lot of robocalls are currently making this pitch. The only outcome you’ve been selected for is a fleecing.

Scam Clue 4 : A promotion demanding that you “act now” or lose the deal. If a deal is actually honest, it will still be there after you take a day or so to check it.

Scam Clue 5 : A promotion that poses as an investment. Some property-based clubs claim, or at least imply, that your membership is an investment. That’s just false for anything that’s not outright property ownership. Fractional ownership such as timeshare may be a good way to vacation to the same place every year—but it’s a lousy overall investment.

I can’t guarantee that following these guidelines can totally shield you from a scam (no one can). But they’re a good start to protecting yourself.

Editor’s note: This story was originally published in 2015. It had been updated to reflect the most current information. Prior reporting by Calvin Hennick contributed to this story.

More from SmarterTravel:

• How  to  Avoid  Counterfeit  Money  While  Traveling
• 6  Cruise  Scams  You  Should  Never  Fall  For
• Europe  Travel  Scams  to  Watch  Out  For

Consumer advocate Ed Perkins has been writing about travel for more than three decades. The founding editor of the Consumer Reports Travel Letter, he continues to inform travelers and fight consumer abuse every day at SmarterTravel.

We hand-pick everything we recommend and select items through testing and reviews. Some products are sent to us free of charge with no incentive to offer a favorable review. We offer our unbiased opinions and do not accept compensation to review products. All items are in stock and prices are accurate at the time of publication. If you buy something through our links, we may earn a commission.

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USA TODAY 10Best

10 travel memberships that are worth the money

November 11, 2021 // By Leila Najafi

By Leila Najafi November 11, 2021

We live in a subscription-obsessed world and there’s a subscription for everything you can imagine, from razors to clothing and even hot sauces. Travel memberships are on the rise, providing new ways to ease some of the stress that comes with traveling these days and help make the journey more seamless.

Whether you’re willing to pay a premium for exclusive travel experiences that provide a little more privacy or you're more budget-conscious and want to find the best travel deals, there’s a membership for every type of traveler. Here are 10 travel memberships that are worth considering.

Wheels Up offers private jet charter memberships so travelers can access a fleet of aircrafts, including a King Air 350i, an 8-passenger Citation Excel/XLS, and one of the fastest aircrafts, the Citation X. Wheels Up uses a dynamic pricing model offering competitive rates, so members can book flights on-demand with the flexibility to pay as they go.

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Additional m embership benefits include invites to signature events, President’s Circle status with Hertz, a complimentary trial of Inspirato Club subscription for 12 months (Core members only), certain perks at select Waldorf Astoria hotels across North America, a partnership with Delta SkyMiles, dedicated partnership rates with Porsche and more.

Membership cost: Three membership options are available – Connect, Core and Business. The Connect membership requires a one-time initiation fee of $2,995 and annual dues of $2,495 which begin on year two. The Core membership has an initiation fee of $17,500 and annual dues of $8,500 which begin on year two. The Business membership requires an initiation fee of $29,500 and $14,500 for subsequent years and includes up to six lead passengers.

Getting through airport security lines can be a drag, especially during holiday weekends and a pandemic that has increased the demand for more seclusion when traveling. PS (formerly known as Private Suite) is designed for first and business class travelers who are seeking privacy and convenience, allowing them to bypass LAX altogether.

Travelers check into a private terminal where they can relax in a fully-stocked luxury private suite that includes complimentary in-suite meals catered by h.wood Group , as well as additional services upon request such as in-suite massages, manicures and detailing services for personal cars. PS also provides a designated on-site TSA and Customs agent for expedited screening.

Upon boarding, travelers are transported across the tarmac directly to their aircraft in a BMW 7 Series sedan. Earlier this year, the Salon at PS launched, which features a new full-service lounge at the terminal for travelers who want the same benefits of PS but seek a more social experience.

Membership cost: Annual membership costs $4,500, which gives members access to a preferred rate of $3,250 for a one-way Suite experience for up to four travelers. The Salon is available to members and non-members for $695 per use per person.

Inspirato is a subscription-based luxury travel service that gives members exclusive access to over 150,000 luxury vacation homes and resorts around the world that are staffed by Inspirato. There are two membership types: Inspirato Club and Inspirato Pass. The former gives you access to the luxury residences and hotels around the world, on-site concierge and daily housekeeping with additional benefits such as late check-in and check-out, room upgrades, spa credits and more. However, members also pay nightly room rates.

With the Inspirato Pass, you automatically get the benefits of Inspirato Club plus nightly rates are already factored into the price of membership, so you can book as many vacations as possible in one month with one active reservation at a time. There is also no long-term commitment, so you can cancel the membership at any time.

Membership cost: Inspirato Club membership is $600/month plus a $600 enrollment fee and you pay nightly rates as you go. Inspirato Pass is a flat rate of $2,500/month which includes all hotel stays.

Scott’s Cheap Flights

A membership to Scott’s Cheap Flights includes flight deals and “Mistake Fares” accidentally published by airlines sent straight to your inbox. The team scours the internet for the lowest published airfare rates to popular destinations and shares them with members.

Subscribers can also track deals from a specific airport close to home or destinations of interest. A membership to Scott’s Cheap Flights is best for travelers who have flexibility on the destination and dates and are willing to fly based on low airfare rates. Flight deals don’t last long so you’ll have to act fast.

Membership cost: There are three membership tiers including Limited which is free, Premium costs $49/year and Elite $199/year.

PRIOR was started by a former travel editor who saw a gap in the market for travelers wanting a more immersive experience during their vacation. A team of experienced travel editors and local tastemakers on the ground design itineraries for curious travelers.

A PRIOR WORLD membership includes access to curated destination guides, unique local experiences in cities around the world, pre-planned group trips led by experts and for an additional fee, the team can create a custom itinerary based on your interests.

If you're a frequent traveler, PRIOR BESPOKE might be the membership better suited for you. For a flat fee per year, members get unlimited trip planning by their expert team of travel editors and membership managers.

Membership cost: PRIOR WORLD membership costs $249 per annum. PRIOR BESPOKE is $5,000 per annum.

Priority Pass

Airport terminals may have come a long way in the last decade, but killing time for a three-hour layover in a crowded airport isn’t exactly on anyone’s list of things to do, especially on vacation. Trade the busy terminals for private lounge access with Priority Pass and enjoy guaranteed Wi-Fi and snacks.

Members of Priority Pass receive access to over 1,300 airport lounges globally, including several airline lounges such as Virgin Atlantic, Air France and Turkish Airlines. Several credit cards like the Chase Sapphire Reserve, American Express Platinum and Marriott Bonvoy Brilliant American Express offer free Priority Pass memberships as part of their member benefits.

Membership cost: Choose from three membership tiers which start at $99/year for the Standard membership plus $32 per visit and go up to $429/year for the Prestige membership which includes unlimited lounge visits.

TSA Pre-Check and Global Entry are services that allow travelers to expedite the security screening process upon departure and arrival. With CLEAR Plus, enrolled members get escorted to the front of the security line once they’ve been verified using facial recognition or fingerprint scans, so they no longer have to verify identification at security. However, for expedited clearance through security screenings, TSA Pre-Check or Global Entry are still required.

CLEAR uses biometric identifiers to create a unique ID assigned to each member that is used for verification at stations across airports, stadiums and other major venues nationwide.

Membership cost: A CLEAR Plus membership is $179 per year. American Express Platinum Card Members receive a $179 statement credit and United MileagePlus members receive a discounted membership rate.

Well Traveled

Well Traveled is a members-only social and booking platform that allows members to connect with friends to find and share travel recommendations. The community-driven platform is intended to make travel planning easier by allowing you to follow people in your network that you trust, in addition to other like-minded travelers who share similar budgets and travel preferences.

Members can also take advantage of the personalized booking service that includes perks like exclusive rates, room upgrades, food & beverage credits, complimentary breakfast and more. Currently, membership is invite-only but you can also apply to be considered.

Membership cost: $150 per year.

Travel + Leisure Club

Travel + Leisure Club is a new travel subscription service offered by Travel + Leisure Group. Members can pay a monthly fee for access to preferred pricing on curated itineraries and an average of 25% savings on hotels, resorts, car rentals and activities that are listed on Travel + Leisure GO, the online travel booking site. Plus, members get a subscription to the glossy print magazine.

Members also get access to a personal concierge that can assist with travel planning, scoring tickets to sold-out events, making dinner reservations and more.

Membership cost: Travel + Leisure Club is currently offering an introductory rate of $9.95/month.

Exclusive Resorts

Designed for families who value privacy, Exclusive Resorts is a small community of members (only 150 new members accepted each year) that get access to over 350 luxury residences around the world including the Amalfi Coast, Barcelona, Deer Valley, Kaua’i, Los Cabos, St. Barts and more.

Guests enjoy a more personalized experience with a dedicated on-site team who can assist with pre-trip planning details such as stocking the fridge with your favorite snacks, booking a massage or private chef, and housekeeping services.

Membership cost: There is a one-time, non-refundable initiation fee of $150,000 for a 10-year membership. Annual dues are $1,395/night and members travel 15-30 nights per year.

About Leila Najafi

Leila Najafi is a luxury travel writer based in LA who is a member of more subscription services than she'd like to admit.

Read more about Leila Najafi here.

Connect with Leila via: Website | Facebook | Instagram | Twitter | TikTok

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