Sundance Vacations

Sundance Vacations, perennially mired in controversy, is a enrollment center for Travel Advantage Network (TAN) headquartered in Wilkes Barre, Pennsylvania. Sundance Vacations maintains offices in six other locations including; Rockaway, NJ; Princeton, NJ; King of Prussia, PA; Harrisburg, PA; Downers Grove, IL, and Brookfield, WI. The company also maintains five marketing offices on the East Coast.

There are various packages but initially Sundance Vacations offers 30 vacations for $15,000, $12,000 if you purchase that day only. Financing is available through a third party associated with Sundance Vacations at approximately a 16.7% interest rate. Although financing is for 84 months (7 years) the Sundance contract is a 30-year commitment. Sundance Vacations spiel is that 30 weekly vacations, at $12,000, is equal to $400 per vacation, but let’s do the math:

Initial down payment of $2,400. = $2,400
$195 per month for 84 months.
(Financing the $9,600 balance) = $16,380
$339 annual membership fee x 30 years. = $10,170
$99.00 per week reservation fee x 30 weeks = $2,970
$30.00 per night peak travel time upgrade.
$30.00 per night x 7 nights = $210 per week.
(39 of the 52 yearly weeks are peak travel time.)
$210 per week peak travel time x 30 weeks = $6,300

That’s a total of $38,220 for 30 vacations or $1,274 per week and they are one bedroom accommodations because two bedrooms require another $210.00 per week upgrade. That would then equal $1,484 per week and that does not include meals, air fare, transfers to and from the airport, local taxes, on-site amenities, maid service, gratuities, etc.

All of the above ancillary fees are detailed in the Sundance Vacations contract. The minimum $1,274 per week is more than 3 times the $400.00 per week that Sundance suggests. In addition, with the exception of the initial purchase price, all the ancillary fees (yearly maintenance fees, weekly reservation fees, peak travel time upgrades, local taxes, etc.) are subject to increase as detailed in the Sundance Vacations contract. Also in the contract are very specific and burdensome requirements for booking vacations, quoting from that contract:

“You may assist our Vacation Fulfillment/Reservations department by being as flexible as possible with your desired vacation area and dates. Provide a total of 3 areas and/or 3 dates: The 3 vacation areas may have the same travel dates, or the 3 travel dates may all be for the same desired vacation area. Reservation Requests must be received at least 90 days in advance for peak season requests and 180 days in advance for holiday or special event times. Summer travel is defined as the dates between Memorial Day and Labor Day. Almost all dates qualify as peak travel so requests are typically 90 to 180 days in advance.”

$1,274 to $1,484 per vacation week (accommodations only) 90 to 180 days advanced written request with no guarantee that you’ll get the vacation time and place that you choose because all requests are based on “availability” as detailed in the Sundance Vacations contract.

The company reports to service approximately 75,000 clients through its vacation accommodations network.

Sundance Vacations received the 2005 Torch Award from the Better Business Bureau of Northeast and Central Pennsylvania. The Torch Award is bestowed on a company that demonstrates a commitment to customer satisfaction. Though a complaint may not always be satisfied, the winning business must have consistently responded to and attempted to resolve any complaint filed against them.

The "awards" that Sundance referes to was examined by the following well respected Vacation industry blog: http://streettalkblog.com/?p=1860#more-1860 The report speaks for itself and as the blog details, Sundance Vacations invited the in-depth report.

Sundance Vacations was named One of the Best 100 Places to Work in Pennsylvania for 2007. The company finished eighth in the statewide employee poll for large sized companies (251 or more employees), but ranked highest among companies in Northeastern PA. The announcement was made during the Best Places to Work in PA dinner held at the Hershey Lodge and Convention Center in Hershey PA, on November 27, 2007. Sundance Vacations will be participating in the 2008 Best Place to Work.

Sundance Vacations was investigated by the state of New Jersey for failure to comply with Federal and state minimum wage laws. The investigation resulted in 32 employees being paid a total of $19,762.62 in back wages. The company also paid administrative fees of $1,976.26 and penalties of $3,000. http://www.state.nj.us/labor/press/2005/0829WageHour.htm

The American Business Awards presented 2007 Stevie Awards for Best Overall Company up to 2,500 employees to Sundance Vacations and the Pittsburgh Pirates on June 11, 2007.

Business model
Sundance business is to sell vacations. These consist of selling the use of interchangeable time shares at locations owned or managed by Travel Advantage Network (TAN).
Many aspects of Sundance Vacations business are subcontracted out.

There is a separate marketing arm called Dowd Marketing, Inc., which is owned for the most part by the same people who own Sundance Vacations. This organization makes the calls to potential customers and schedules them to an appointment at Sundance Vacations offices.

The promotional items are separate subcontracts. The drawing to "win the car," "50,000" or "The Ultimate SportsGiveaway" occurs in early February. Sundance Vacations does not sell the drawing to win the car to other marketing companies, and previous winners can be viewed at their website, www.sundancevacations.com under "Giveaways." The odds of winning depend on the number of entry forms that are submitted each year. In 2006, the odds were roughly 1 in 675,000. That also means that a Sundance Vacations potential client has very low odds of winning. Sundance Vacations marketers avoid the use of the word free however, other than being told they are responsible for taxes and a refundable secruity deposit, the "Two day overnight hotel stay" is promoted as a no cost option as an inducement to see the presentation. This promotion is subcontracted through an incentives company that obtains unused and discounted hotel rooms in blocks. Many of the incentives are subcontracted through Spirit Incentives out of Florida. This provides major discounts to the purchaser. Unless the current promotion includes airfare, travel to the hotel is not included. It is up to the voucher holder to determine if there is value in the trips or it is an unneeded expense to make use of the voucher. There is also a $15 to $50 deposit paid in advance which is to be refunded after the trip is complete.

The "internet shopping spree" is purchased from another third party and is strictly limited to a single web site (that web site keeps changing). In many cases you need the log on code to view the items and their prices. The items are usually not of great value, and there is limited selection. It has been noted that the price listed on the shopping spree web page is higher than the manufacturers suggested list price. The surprise comes in shipping and handling fees, which must be paid by the recipient and are not included in the promotion. These fees can range up to $340 for a $1000 shopping spree. Unfortunately the actual cost of the goods (if purchased elsewhere) which can be obtained at this web site is about one fourth of amount selected or approximately $250 (if the maximum $1000 promotion amount is used. Factoring actual shipping if the same goods were purchased online anywhere else they would be the same or less cost than if obtained through the "Internet shopping spree" offered by Sundance Vacations. Any cost over the maximum must be paid by the purchaser.

Some clients are also offered a $15 dinner voucher coupon good at selected restaurants.

Many potential clients feel that the time spent in the Sundance Vacations office in relation to what was obtained was not worth it.

Finally the actual vacation is booked by TAN (Travel Advantage Network) a partner to Sundance Vacations which handles the actual time share destination. The destination can range from a resort to a condo type of residence. Travel and other costs associated with the vacation are not included. It is noted below there are some restrictions on using the vacation that was paid for. These include picking either three different times or three different locations (Locations are regions such as Northeast US, Mid-Atlantic US, Southeast US, Gulf Coast US & Florida, Western US, Hawaii, Mexico & the Caribbean or Other at least 60 to 90 days in advance (six months for a Holiday week). Each location ranges are desirable or less than desirable depending on the vacationer's needs and desires.

A destination such as Western US includes:

Destination: Western US;
This includes:
Arizona,
Arkansas,
California, Desert,
California, So. Coast,
Colorado,
Idaho,
Missouri,
Nevada, Las Vegas,
Nevada, Other,
New Mexico,
Utah,
Wisconsin.

Alternately the Gulf Coast region includes:

Destination: Gulf Coast US & Florida;
This includes:
Alabama,
Florida, East Coast,
Florida, Emerald Coast/Panhandle,
Florida, Orlando,
Florida, Southeast,
Florida, West Coast,
Louisiana, New Orleans,
Texas.

If the traveler selects one destination such as Western US, his or her trip may range from the California desert to Las Vegas or Arkansas, though the client can request a specific area. With such a wide range it may be difficult for many to plan where they want to go and when they want to go, though no vacation is booked without the travelers consent. Each choice is made 3 to six months in advance. As an alternative, the traveler can pick one destination (which is still a wide range) but choose three different times. With these restrictions, it is easy to see why many do not choose Sundance Vacations and TAN when they go on vacation.

For a separate fee, Sundance Vacations does offer to make travel arrangements, but these would also be purchased from a third party. In many cases the cost of the whole package for one vacation including hotel, airfare, auto rental, dinner or other options that is to a similar destination can be purchased from Travel Agencies at a competitive if not lower rate.

TAN offers their own discounted space (excess inventory) to customers, and membership in Sundance Vacations is not required to make use of these specials.

This makes Sundance vacations a middleman in putting together the packages of others and selling them.

Marketing Practices
The company gains permission to telephone or email potential clients through a yearly sweepstakes, the winner of which can choose the car of their choice up to $70,000 MSRP, the Ultimate Sports Giveaway or $50,000. Completion of the entry form permits sales calls to bypass the national Do Not Call list. Sweepstakes participants who are over 21 years of age and have an annual household income of over $25,000 per year are invited to attend a brief 60 minute introduction about the company. Clients are offered a

Sales Practices

Sundance Vacation staff members conduct a presentation about vacationing with Sundance Vacations. The group presentation lasts 45 minutes and utilizes a slide presentation and a short film. The last 15 minutes are reserved for individual questions. You are taken into a room individually after the presentation for a sales pitch. Potential customers are told the offer is good for one night only.

Allegations of scamming

The "free" promotional offers which require the recipient to pay for predetermined shipping and handling fees presented by Sundance Vacation are considered to be worthless by some, and can be purchased elsewhere for less than the cost of the items (including shipping) than if obtained through the Sundance promotion.

There is also a hotel voucher offering a free stay for two nights. Transportation to the hotel is not included so if the hotel is distant, airfare is required. However the selection of which nights or the location of the stay may or may not be the Holder's first choice. Many people find that the expense and inconvenience is not worth the bother and feel this promotional item is useless.

The conditions on the offer include spending at least an hour in the offices of the company listening to travel packages they offer, which include spending around $10,000 to $30,000 for vacations over many years. There is interest charged on the remaining portion of the cost of the vacation package after the deposit at approximately 17%. Some people who have experienced the presentation claim satisfaction with the company, while others feel that the offer is a waste of time and to have been manipulated into spending large sums of money instead of just receiving a gift. Availability of destinations has limitations and peak charges may apply. Peak charges apply for most of the weeks in a year (see TAN web site). There is also a concern about how to exit a long term contract for vacations should the customer's personal, medical or financial situation change.

Legal Matters

In July, 2005 Sundance Vacations was investigated by the state of New Jersey for failure to comply with Federal and state minimum wage laws. The investigation resulted in 32 employees being paid a total of $19,762.62 in back wages. The company also paid administrative fees of $1,976.26 and penalties of $3,000. http://www.state.nj.us/labor/press/2005/0829WageHour.htm

On August 11, 2006, a Federal Civil Rights lawsuit was filed against Sundance Vacations in the Eastern District of Pennsylvania citing discrimination. The case was settled out of court. ED.PA. NO. 05-CV-04193

On November 6, 2006, a consumer fraud civil law suit was filed against Sundance Vacations, Inc. and Sundance Vacations Network, Inc. The fraudulent misrepresentation claim was filed in the Superior Court of New Jersey, Bergen County, docket number L-8256-06. The civil suit detailed numerous violations of N.J.S.A. 56:8 et seq. of the New Jersey Consumer Fraud Act, by utilizing “false pretenses through the use of unconscionable commercial practices.” Sundance Vacations settled the case out of court.

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