Don’t get us wrong. We know the distinct differences that separate destination clubs from fractional residences, but at Halogen Guides, we can’t help but notice that these two alternatives to vacation home ownership are sharing more of the same features.

Case in point, a big move by fractional residences into programs that allow for swapping. Recently, Preferred Residences launched a new exchange program for fractional ownership properties that will also offer members discounts hotel properties in the network. We’ve also seen stand alone luxury properties, like the Orchard at the Carneros Inn linking up with a big name fractional developers, like Timbers Resort, which has six developments, including Esperanza, in Cabo San Lucas and a Tuscan retreat, Castello di Casole, in Italy. Throw in the growth of fractionals among hoteliers, notably Ritz-Carlton CLub which allows its fractional owners to use their weeks at other Ritz-Carlton Club properties and gives owners drastically reduced rates on stays at thier hotels, and it seems that buyers have more options than ever.

And it’s the same multiple vacation options that destination clubs are pitching to new members. A real estate portfolio filled with multi-million dollar homes in locations that are most likely on the top of your family’s must-visit list. Think Mexico, Hawaii, Costa Rica, Colorado ski destinations and Tuscany. Exclusive Resorts has homes in 35 destinations. When the merger between Ultimate Resort and Private Escapes is complete, the new entity, Ultimate Escapes will have homes in nearly 50. Some destination clubs are even owners at fractional developments. Exclusive Resorts recently signed on to buy 12 units at the new Fairmont Heritage Place Ghirardhelli Square in San Francisco.

Destination clubs and fractionals often have many of the same perks as well, like private chefs, car pickups from the airport, spa services and concierges, and also many of the same challenges, including holiday availability. After all, those owners of a ski fractional in Aspen that are unable to book a prime week in February are likely just as disappointed as the destination club member who can’t secure a reservation at a ski home in town.

Of course, there is that one no-small-matter of real estate ownership. Most destination clubs operate non-equity models and insist that a non-deeded membership model is the way to go for streamlined access to multiple vacation properties without the hassles of ownership. Fractionals, on the other hand, use this deeded real estate ownership as a prime part of the sales pitch. And while a developer is unlikely to tell a buyer that they will turn a profit when reselling a fractional, especially in a down real estate market, they might give a nod towards a string of rapid fire preconstruction price increases for shares. With fractional resale rates still unproven and one destination club powerhouse now refunding 75 percent of its deposit (down from 80 percent), for the buyer deciding between the two option, the decision likely isn’t just financial.

Readers, weigh in. Do you think that destination clubs and fractional developments are becoming more alike as they rollout more services? What would be your preference for a vacation home alternative?