Ongoing Sales Incentive - Enrolling Post-6/20/10 Weeks [MERGED]

JIMinNC · Jun 27, 2016

Seaport104 said:
Completely agree, looks like an opportunity that will exist going forward except that each year, they might raise the required points by 500.

I bought 5,000 points last year and enrolled 7 of my weeks and glad that I did it.

Actually, looking back at the previous thread from last fall, the original promotion which was one week for 2500 points, 2 for 3500 points, and 3-7 for 5000 points ran through November 4, 2015. Then on November 5 through December 31, they added the 500 extra points requirement to make it 3000/4000/5500. So the current offer would appear to be the same as the Nov/Dec 2015 offer.

JIMinNC · Jun 27, 2016

Per this recent thread:

[Link deleted; threads merged. Thank you!]

It looks like this promotion to enroll post-2010 weeks may be back, but with a June 15, 2016 closing cutoff for eligible weeks this time.

Should the moderators combine the threads?

chrono88 · Jun 28, 2016

We seriously considered this offer last year. We'll think about it again now that it appears to be back. Just want to point out that it's probably more than $3.xxx per point if you factor in the costs to purchase the resale weeks (unless your resale weeks were all free).

Sent from my KFSAWI using Tapatalk

ccpinternational · Jun 28, 2016

I have a Custom House and another EOY Grand Chateau ineligible for enrolling. They worth 4000+ points after enrollment. If I could enroll them by purchasing 4000pts at $40,000+, I would do so. But after it is closed, I will sell the trust points at half price and take loss. At the end, the cost of enroll those two weeks would be $20,000.
:ponder:

this might be a stupid thought.

GregT · Jul 8, 2016

Post June 2010 weeks enrollment offer

All,

This may have already been posted, in which case I missed it. The offer to enroll post June 2010 weeks is back again, and the information that was emailed to me is below.

We may see this periodically, which makes sense to me as it stimulates Trust Point sales and allows the purchaser to cost-average the points in a way that is mutually beneficial to Marriott and to the purchaser. Any week that is being enrolled is probably a desirable week that Marriott doesn't mind having available to the Exchange Pool.

Interesting to see.

Best,

Greg

----------------------

3000 Destinations Trust Points enrolls any 1 week (or 2 bi-annual weeks)
4000 Destinations Trust Points enrolls any 2 weeks (or up to 4 bi-annual weeks)
5500 Destinations Trust Points enrolls any 3-7 weeks (or up to 14 bi-annual weeks)

Weeks enrolled during this promotion will be eligible for Marriott Rewards option, Marriott Vacation points exchange, and will count towards ownership status levels (Executive, Presidential, Chairmans Club).

3000 Destination Points
Current Price: $39,120 ($13.04/pt)
Mail-out Purchase Incentive
1) $5880 discount (11.08/pt) AND 3000 bonus Club PlusPoints or 250,000 REWARDS – brings price down to $33,240

4000 Destination Points
Current Price: $52,160 ($13.04/pt)
Mail-out Purchase Incentive:
1) $10,480 discount (10.43/pt) AND 4000 bonus Club PlusPoints or 350,000 REWARDS – brings price down to $41,680

5500 Destination Points
Current Price: $71,720 ($13.04/pt)
Mail-out Purchase Incentive:
1) $14,410 discount (10.43/pt) AND 5500 bonus Club PlusPoints or 450,000 REWARDS – brings price down to $57,310

This pricing is good through next Wednesday, July 14 - there is a price increase on July 15. Promotion lasts through September 7, 2016.

Weeks purchased between June 2010 and closed by June 2016.

Superchief · Jul 8, 2016

It will be interesting to see if the recent increase in II fees will motivate more people to enroll their weeks/buy points. This may increase inventories for VC points, and reduce inventories for II (especially lockoff resort high VC value weeks).

bazzap · Jul 8, 2016

Superchief said:
It will be interesting to see if the recent increase in II fees will motivate more people to enroll their weeks/buy points. This may increase inventories for VC points, and reduce inventories for II (especially lockoff resort high VC value weeks).

It will be interesting and I can see that some people might be more encouraged to enrol their weeks (especially lockoff resort high VC value weeks), dependent on the cost of doing so.
I still believe though that getting an extra week, even with the upgrade fee II is now charging, could quite possibly be a more attractive option.
This may also be true for those, like me, who are enrolled but may still decide not to elect.
I can either pay the fee and get two weeks in a larger unit or pay no fee and just use my Master unit for the exchange and my Guest unit for a separate stay.

mjm1 · Jul 8, 2016

Greg, thanks for sharing the details. I think I did see reference to this earlier, but not the details. Interesting that they brought it back, although they increased the point purchase requirement by 500 points.

We only have an EOY Ko Olina that isn't enrolled, so I don't think the value is as good in our case.

Mike

kds4 · Jul 8, 2016

GregT said:
All,

This may have already been posted, in which case I missed it. The offer to enroll post June 2010 weeks is back again, and the information that was emailed to me is below.

We may see this periodically, which makes sense to me as it stimulates Trust Point sales and allows the purchaser to cost-average the points in a way that is mutually beneficial to Marriott and to the purchaser. Any week that is being enrolled is probably a desirable week that Marriott doesn't mind having available to the Exchange Pool.

Interesting to see.

Best,

Greg

----------------------

3000 Destinations Trust Points enrolls any 1 week (or 2 bi-annual weeks)
4000 Destinations Trust Points enrolls any 2 weeks (or up to 4 bi-annual weeks)
5500 Destinations Trust Points enrolls any 3-7 weeks (or up to 14 bi-annual weeks)

Weeks enrolled during this promotion will be eligible for Marriott Rewards option, Marriott Vacation points exchange, and will count towards ownership status levels (Executive, Presidential, Chairmans Club).

3000 Destination Points
Current Price: $39,120 ($13.04/pt)
Mail-out Purchase Incentive
1) $5880 discount (11.08/pt) AND 3000 bonus Club PlusPoints or 250,000 REWARDS – brings price down to $33,240

4000 Destination Points
Current Price: $52,160 ($13.04/pt)
Mail-out Purchase Incentive:
1) $10,480 discount (10.43/pt) AND 4000 bonus Club PlusPoints or 350,000 REWARDS – brings price down to $41,680

5500 Destination Points
Current Price: $71,720 ($13.04/pt)
Mail-out Purchase Incentive:
1) $14,410 discount (10.43/pt) AND 5500 bonus Club PlusPoints or 450,000 REWARDS – brings price down to $57,310

This pricing is good through next Wednesday, July 14 - there is a price increase on July 15. Promotion lasts through September 7, 2016.

Weeks purchased between June 2010 and closed by June 2016.

Did you have to finance through MVCI for 18 months to get the 250k MRPs or 3,000 DC Points?

We were offered this while here in Orlando this week, except it was with no MRPs and the 3,000 DC points are only if we maintained MVCI financing for 18 months.

kds4 · Jul 8, 2016

Disregard. After a quick trip back up to the Grande Vista Sales Center (and a quick meeting with a manager), we signed a document to have 250k MRPs added to DW's Marriott account.

We did an owner's update on Tuesday, 7/5 and told them we weren't interested in any more DC points unless we were able to enroll our remaining week (which is a post-6/10 resale) and they agreed to do it.

We were not going to post anything about our experience until after the enrollment showed in our owner's account (thinking we were getting a 'special' deal), but now know we were simply being offered a promotion 3 days ahead of the roll-out of this offer. Silly us.

If it weren't for GregT's post, we wouldn't have known about this MRP incentive (that we weren't offered on Tuesday) and our 3-day rescission period ends today.

So, the final numbers for us. We enrolled an MGV Gold 3BR/LO unit worth 2925 points, and purchased 3,000 more. For the 5925 in additional DC points value to our account we paid 34,340 (including closing costs).

Not counting any cash value for the 250k MRPs (now called the GregT Memorial MRPs), our cost per point for this transaction comes out to $5.80 (all in).

We also delayed having these new points 'activated' for usage until 2017 (so no MFs due until next fall). We also got a bump to Presidential and DW gets a Gold level Marriott upgrade for the next 3 years for our trouble.

For us, this made sense. Next step will be placing our MVCI holdings into a trust to preserve our benefits intact for our kids and their families (rather than break up the ownership among them and lose the benefits having them in a single account provides).

Seaport104 · Jul 8, 2016

GregT said:
----------------------

4000 Destination Points
Current Price: $52,160 ($13.04/pt)
Mail-out Purchase Incentive:
1) $10,480 discount (10.43/pt) AND 4000 bonus Club PlusPoints or 350,000 REWARDS – brings price down to $41,680

5500 Destination Points
Current Price: $71,720 ($13.04/pt)
Mail-out Purchase Incentive:
1) $14,410 discount (10.43/pt) AND 5500 bonus Club PlusPoints or 450,000 REWARDS – brings price down to $57,310

This pricing is good through next Wednesday, July 14 - there is a price increase on July 15. Promotion lasts through September 7, 2016.

Weeks purchased between June 2010 and closed by June 2016.

That's better than last year's offer (not factoring in the additional 500 points required). Last year, the bonus club points or Rewards was only given with 15% off. Current pricing is 20% off + bonus points or rewards.

I received 20% off last year but no bonus points or rewards.

eggmansr71 · Jul 9, 2016

What is the advantage to doing this over just buying the points resale?

JIMinNC · Jul 9, 2016

eggmansr71 said:
What is the advantage to doing this over just buying the points resale?

Depending on the points value of the week(s) enrolled, the cost per point acquired could be significantly less than resale points. In kds4's post above, a cost of $5.80/point was quoted. For an even higher point value week, the net cost could be much less. For example, it looks like a 6450 point 2BR Maui week could be enrolled and the net cost per point would be about $3.50/point. Unlikely to get these prices from a resale points transaction. People have reported Marriott exercising ROFR on points transactions below about $4.75 - $5.00 per point, so add in Marriott's $2/point activation fee and you're looking at somewhere around $7/point for resale points.

Also, since the entire transaction is through Marriott, it's likely all benefits of ownership will come with these deals. The program docs allow Marriott to restrict resale points from being used for things like Marriott Rewards exchanges or Explorer Collection bookings.

kds4 · Jul 9, 2016

JIMinNC said:
Depending on the points value of the week(s) enrolled, the cost per point acquired could be significantly less than resale points. In kds4's post above, a cost of $5.80/point was quoted. For an even higher point value week, the net cost could be much less. For example, it looks like a 6450 point 2BR Maui week could be enrolled and the net cost per point would be about $3.50/point. Unlikely to get these prices from a resale points transaction. People have reported Marriott exercising ROFR on points transactions below about $4.75 - $5.00 per point, so add in Marriott's $2/point activation fee and you're looking at somewhere around $7/point for resale points.

Also, since the entire transaction is through Marriott, it's likely all benefits of ownership will come with these deals. The program docs allow Marriott to restrict resale points from being used for things like Marriott Rewards exchanges or Explorer Collection bookings.

Exactly. Our last points purchase was 2,000 resale points at $4.75 per point. After fees and closing costs we were just under $7 per point.

GregT · Jul 9, 2016

I also would speculate that this reduces the desire to purchase resale trust points. Now that we have seen this promotion twice, we may see it again (annually?) at modestly increasing minimum point purchases. Similar to a planned price increase, the minimum number of points may go up each time.

Longer planning TUGgers that think they want Trust Points one day, may buy a good points generating property while they wait for the next promotion to come around. But next time, the minimum number of points may be 3,250 or 3,500 points, not 3,000.

I think this is a very smart move by Marriott that benefits both parties. Again, anyone buying points and enrolling a week is probably enrolling a week that is beneficial to the Exchange Inventory -- and that week is no longer available for II trading. Will be interesting to follow.

Best,

Greg

Fasttr · Jul 9, 2016

JIMinNC said:
Depending on the points value of the week(s) enrolled, the cost per point acquired could be significantly less than resale points. In kds4's post above, a cost of $5.80/point was quoted. For an even higher point value week, the net cost could be much less. For example, it looks like a 6450 point 2BR Maui week could be enrolled and the net cost per point would be about $3.50/point. Unlikely to get these prices from a resale points transaction. People have reported Marriott exercising ROFR on points transactions below about $4.75 - $5.00 per point, so add in Marriott's $2/point activation fee and you're looking at somewhere around $7/point for resale points.

This is not really comparing apples to apples though. In the $5.80/point example, the original cost of the MGV Gold 3BR is not being taken into consideration....so all in, those 5925 total points are really costing more than the $5.80/point, and in reality are likely much closer to the $7/point cost that you are citing above for all in resale point costs.

I say this because in order to use the points generated by the newly enrolled MGV Gold 3BR, you have to not use it in the fashion that you have been using it, so you are really giving up something in order to generate those 2925 enrolled points....so they do have a cost, even though you may have paid for it awhile back.

eggmansr71 · Jul 9, 2016

So when you pay MF on these you pay the original week and the additional DC points purchased? So if your week MF is less than the points MF you would come out better?

Sent from my iPad using Tapatalk

Fasttr · Jul 9, 2016

eggmansr71 said:
So when you pay MF on these you pay the original week and the additional DC points purchased? So if your week MF is less than the points MF you would come out better?

Sent from my iPad using Tapatalk

Correct. Some weeks are better points generators in reference to MF paid than others. Many/Most weeks are below the Trust points MF/point, but some are more.... You just have to do the comparison calc.

dioxide45 · Jul 9, 2016

eggmansr71 said:
So when you pay MF on these you pay the original week and the additional DC points purchased? So if your week MF is less than the points MF you would come out better?

Sent from my iPad using Tapatalk

Generally yes. Though also those weeks that have a low MF to DC point ratio tend to also cost a lot more to buy on the resale market. This is because they tend to be the high season in highly popular locations. Generally Hawaii and Platinum HHI have the best MF to DC point ratio, they will cost a bundle to buy on the resale market. This may cause your blended cost per point to be higher when all costs are taken in to consideration for the promotion.

JIMinNC · Jul 9, 2016

Fasttr said:
This is not really comparing apples to apples though. In the $5.80/point example, the original cost of the MGV Gold 3BR is not being taken into consideration....so all in, those 5925 total points are really costing more than the $5.80/point, and in reality are likely much closer to the $7/point cost that you are citing above for all in resale point costs.

I say this because in order to use the points generated by the newly enrolled MGV Gold 3BR, you have to not use it in the fashion that you have been using it, so you are really giving up something in order to generate those 2925 enrolled points....so they do have a cost, even though you may have paid for it awhile back.

Agreed, from a pure fully-costed perspective.

But...the MGV 3BR Gold used in the example is still available to use as you always have. You're not giving up that usage. Even if you don't elect points, the points value of that newly-enrolled week still counts toward Executive, Presidential, Chairman, etc.

So for someone who wants the cheapest way to go to a higher level, in my opinion, the important thing to look at it is not a fully-costed approach that factors in the sunk cost you may have incurred years ago, but how much out-of-pocket am I going to pay NOW to get the points needed for the higher level. Which is the cheapest approach? In that situation, these new offers are the best deal going.

Now in the example GregT used, where someone buys a point-generating week now to hopefully take advantage of a similar future offer, then they absolutely should factor in the cost of buying that third party resale week into their total costs of points. But for someone who already owns such a week, I think it is more meaningful to only look at the incremental cost.

JIMinNC · Jul 9, 2016

GregT said:
I also would speculate that this reduces the desire to purchase resale trust points. Now that we have seen this promotion twice, we may see it again (annually?) at modestly increasing minimum point purchases. Similar to a planned price increase, the minimum number of points may go up each time.

Longer planning TUGgers that think they want Trust Points one day, may buy a good points generating property while they wait for the next promotion to come around. But next time, the minimum number of points may be 3,250 or 3,500 points, not 3,000.

I think this is a very smart move by Marriott that benefits both parties. Again, anyone buying points and enrolling a week is probably enrolling a week that is beneficial to the Exchange Inventory -- and that week is no longer available for II trading. Will be interesting to follow.

Best,

Greg

Greg,

The original promotion that was offered last fall was at a lower point level as I recall - 2500, 3500, and 5000 I think? But then immediately after that promotion wrapped up in early November 2015 as I recall, they extended the promotion, and the extension was at these higher 3000, 4000, and 5500 levels. So this new promotion is the same as the late 2015 extension. So maybe an annual increase is not automatically in the cards. We'll see.

kds4 · Jul 9, 2016

Fasttr said:
This is not really comparing apples to apples though. In the $5.80/point example, the original cost of the MGV Gold 3BR is not being taken into consideration....so all in, those 5925 total points are really costing more than the $5.80/point, and in reality are likely much closer to the $7/point cost that you are citing above for all in resale point costs.

I say this because in order to use the points generated by the newly enrolled MGV Gold 3BR, you have to not use it in the fashion that you have been using it, so you are really giving up something in order to generate those 2925 enrolled points....so they do have a cost, even though you may have paid for it awhile back.

True. I did not factor in the cost of the underlying week, which was $3,500 (including closing costs) via eBay (and it somehow passed ROFR). The additional .59 per point brings us to $6.39 (all in).

For us, whether we did the math using the incremental cost (without the underlying week), or factoring in the cost with the week (all in), this offer was what we felt was right for us and our objectives (after having passed on it in 2015).

Fasttr · Jul 9, 2016

kds4 said:
True. I did not factor in the cost of the underlying week, which was $3,500 (including closing costs) via eBay (and it somehow passed ROFR). The additional .59 per point brings us to $6.39 (all in).

Even all in, that's a damn good cost per point!! Well done.

kds4 · Jul 9, 2016

Fasttr said:
Even all in, that's a damn good cost per point!! Well done.

Thanks. We learned from the best ... here on TUG.

Quadmaniac · Jul 14, 2016

I'm still having trouble wrapping my head around this to justify the cost of enrolling. $50K just seems outrageous to pay for "flexibility". I don't know, maybe I'm missing something ??? I would be at Chairman level if I did but I am having trouble quantifying what I really gain ??

Ongoing Sales Incentive - Enrolling Post-6/20/10 Weeks [MERGED]

JIMinNC

TUG Review Crew: Expert

JIMinNC

TUG Review Crew: Expert

chrono88

ccpinternational

GregT

TUG Member

Superchief

bazzap

TUG Review Crew: Veteran

mjm1

TUG Review Crew: Expert

kds4

kds4

Seaport104

TUG Review Crew

eggmansr71

JIMinNC

TUG Review Crew: Expert

kds4

GregT

TUG Member

Fasttr

TUG Review Crew

eggmansr71

Fasttr

TUG Review Crew

dioxide45

TUG Review Crew: Expert

JIMinNC

TUG Review Crew: Expert

JIMinNC

TUG Review Crew: Expert

kds4

Fasttr

TUG Review Crew

kds4

Quadmaniac