Marriott Rumors on Street Talk

Bill4728 · Nov 14, 2008

Streettalkblog.com said:
IS THERE ANY TRUTH TO THE RUMOR…

-that Marriott is putting a hold on most new developments in its vacation ownership division, with Kauai on hold for at least a year?
- Is the Cancun property the only new one moving forward right now?
- I also hear they are suspending paying Marriott Reward Points to owners who keep financing. Yes? No?

No more reward points when you finance??

Ask_A_Rep · Nov 14, 2008

True, just announced. There is a "severance" amount of points that will still be deposited as a one time courtesy, but no more points for keeping financing.

Mila78 · Nov 14, 2008

Wow, that just answered my question about whether i should continue financing with Marriott or switch elsewhere!

Ask_A_Rep · Nov 14, 2008

That is the goal. They want you to get financing somewhere else. This way they dont have to find someone that will buy the loans.

Mila78 · Nov 14, 2008

I have to say, I am 100% DISAPPOINTED in the turn of events lately.

The 2 things that enticed me to buy and finance directly with Marriott are:

1. Value of points - all those free vacations they spoke about --> now the point system is being devalued

2. Points you get for financing - might be more expensive but look at all the point youll get over the years --> now thats going away too.

Seriously, I am so sad and upset right now at what is happening with Marriott Vacation Club. So many false promises... and this was just last year that I purchased!

JimIg23 · Nov 14, 2008

Is the cancun one being built? Any status?

bogey21 · Nov 14, 2008

Typical Marriott bait and switch. First they changed the rental program, then the resale program, now this. I'm glad I sold my 4 Marriotts. Nice resorts, crap company!

George

Zac495 · Nov 14, 2008

25K points will be posted to anyone enrolled by Dec. 31st. The rep. I called said there are many foreclosures which is why they're doing this.

lll1929 · Nov 14, 2008

I wonder if Marriott plans to inform current owners financing thru them of this change? I am one of those and this is the first I am hearing of this change.

Guess I will start looking for other opportunties of financing this amt.

BocaBum99 · Nov 14, 2008

This is a pretty smart move by Marriott. I am sure lots of owners will payoff or refinance their loans to keep those Marriott reward points. I've never been a fan of chasing those points.

The net result will be a freeing up of cash so that they can sell more timeshares. This is important for their viability.

GrayFal · Nov 14, 2008

Zac495 said:
25K points will be posted to anyone enrolled by Dec. 31st. The rep. I called said there are many foreclosures which is why they're doing this.

I was afraid of this.... many financial institutions are cutting WAY down on what they are lending - people who had 20K credit limits on their credit cards are getting notified their limit has been cut to 3 and 4K instead

rthib · Nov 14, 2008

Where did you see this?

Where did you see Marriott announce that?

As far as I remember, the part about paying points for keeping the financing is part of the contract, so they could not just decide not to honor it.

This may be for new financing - unless someone can point to something different I put this in the rumor category.

lovearuba · Nov 15, 2008

read your contract

Marriotts contract with owners of timeshares leaves everything open for them to change, you have no rights with the exception of changing the board and read the threads about the ocean club and you will see how well that works (not).

lll1929 · Nov 15, 2008

rthib said:
Where did you see Marriott announce that?

As far as I remember, the part about paying points for keeping the financing is part of the contract, so they could not just decide not to honor it.

This may be for new financing - unless someone can point to something different I put this in the rumor category.

I reviewed my contract qnd it does say that Marriott can change or discontinue the points. :annoyed:

dougp26364 · Nov 15, 2008

There was also an article on streettalk (may have been the same article) that said Marriott was asking it's reps to encourage cash sales rather than attempting to finance the purchase of a timeshare.

If they do that, they'll need a better way of finding prospects. Getting tourists off the street looking for freebie's sure isn't a good way to find someone that can pay $20,000 to $100,000 cash for a timeshare.

Steel5Rings · Nov 15, 2008

Another example of the bait and switch tactics of this company.....the resorts are first class...I love them, in general the value is very good...but the company has a bad habit of breaking promises and changing the deal....I have seen this with owners directly and with HOAs on management re-ups.

Zac495 · Nov 15, 2008

rthib said:
Where did you see Marriott announce that?

As far as I remember, the part about paying points for keeping the financing is part of the contract, so they could not just decide not to honor it.

This may be for new financing - unless someone can point to something different I put this in the rumor category.

I called and asked based on this thread.

sernow · Nov 15, 2008

At 13.9% or whatever they were charging, they're doing everyone a big favor.

mas · Nov 16, 2008

Pardon my ignorance, but I don't remember reading anything about new construction in Kauai. Could someone enlighten me about this?

dougp26364 · Nov 16, 2008

Steel5Rings said:
Another example of the bait and switch tactics of this company.....the resorts are first class...I love them, in general the value is very good...but the company has a bad habit of breaking promises and changing the deal....I have seen this with owners directly and with HOAs on management re-ups.

While I might agree it's a raw deal, it's not bait and switch. Marroitt made no promise other than the fact they can change the terms to fit Marriott's need at any time.

Those that bought a timeshare based upon rewards points and not the merrits of the timeshare alone are getting what they purchased and, some would say probably what they deserve. Imagine how the Marriott sales reps feel that bought into this hook, line and sinker and financed their own purchases at Marriott's high interest rates, just for those rewards points. I know a couple of salesmen that attempted to convince me that the promise of future rewards points offset my firm commitment to pay a double digit interest rate. My stance was, if I couldn't change the interest rate to fit my needs, then take out the part where Marriott can change the rewards points given for cont. financing, where Marriott can devalue the points program and where Marriott can increase my MF's. I didn't have any takers.

If you're going to buy a timeshare, DON'T buy for anything other than the firm promises made. Anything else is quicksand.

JimC · Nov 16, 2008

Marriott has to respond to the extreme challenges that exist in the global credit markets and the world economy. There are likely more changes to come if conditions deteriorate further.

jerseyfinn · Nov 16, 2008

. . . Imagine how the Marriott sales reps feel that bought into this hook, line and sinker and financed their own purchases at Marriott's high interest rates, just for those rewards points . . .

You do not make a MVC purchase just to garner MR points. You purchase timeshare for destination travel. Whatever MR points you are able to garner & add to the deal are simply a bonus. As to the higher financing rates with Marriott . . . it's a choice tossed out there for each potential purchaser to accept or reject ( just like when you go to buy a car ). Individuals make their decisions and they must subsequently live with them. No sleight of hand by Marriott however.

Timeshare is timeshare whether we're in a boom or in a recession. It's always been buyer beware with TS or any other consumer purchase. Likewise MVC is gonna make decisions which look after their interest. I guess it is not a surprise to learn that some folks are defaulting upon their MVC loans. But that's a consequence of the credit crunch as some households are pretty constrained at the moment.

It's just my own opinion, but both Marriott and MVC are pretty transparent in terms of how they treat their customers. The T&C are clear from the get go, and just like Life, they are subject to change.

Best advice is to enjoy your weeks, assuming you purchased them with good goals in mind.

Barry

gmss0205 · Nov 18, 2008

For those asking, Marriott sent out a letter that arrived in our mailbox yesterday informing us about the suspension of the points rewards if you finance through them. I was not happy about it (50,000 points a year going away), but I understand that they would rather have their customers get their own financing, have the TS paid off in full and not have to worry about defaults and foreclosures. From a business standpoint, it makes perfect sense for Marriott to do this. I can't blame them. I can get other financing that is cheaper and in the long run, I will probably come out ahead.

pwrshift · Nov 18, 2008

jerseyfinn said:
You do not make a MVC purchase just to garner MR points. Barry

An excellent point, Barry. I have never been in favour of borrowing to buy a timeshare any more than I would borrow to take a vacation. And, at 13.9% it was even worse. I have enjoyed the points program, but there are other and better ways to earn points than borrowing money to get them.

The economy stinks and Marriott's stock prices have been hit big time just like 99% of other big firms, but they'll come through this as they always have before. Best of all, you own your timeshare - not like those dumping huge sums of money into private Destination Clubs that can go under at any time.

Interesting reading:
http://www.blogs.marriott.com/default.asp?item=2280534

Brian

dougp26364 · Nov 18, 2008

jerseyfinn said:
You do not make a MVC purchase just to garner MR points. You purchase timeshare for destination travel. Whatever MR points you are able to garner & add to the deal are simply a bonus. As to the higher financing rates with Marriott . . . it's a choice tossed out there for each potential purchaser to accept or reject ( just like when you go to buy a car ). Individuals make their decisions and they must subsequently live with them. No sleight of hand by Marriott however.

Timeshare is timeshare whether we're in a boom or in a recession. It's always been buyer beware with TS or any other consumer purchase. Likewise MVC is gonna make decisions which look after their interest. I guess it is not a surprise to learn that some folks are defaulting upon their MVC loans. But that's a consequence of the credit crunch as some households are pretty constrained at the moment.

It's just my own opinion, but both Marriott and MVC are pretty transparent in terms of how they treat their customers. The T&C are clear from the get go, and just like Life, they are subject to change.

Best advice is to enjoy your weeks, assuming you purchased them with good goals in mind.

Barry

While you and I might agree on this, I'd be willing to bet there's been a lot of people who did just that, finance with Marriott for the points. There's enough responces on this thread that indicate people had choosen that praticular way to go. Personally, I couldn't see paying double digit interest rates based upon a promise that had built in wording that Marriott could change the rules at any time.

I've also spent enough time with salesmen who were attempting to sell this added benefit as one more reason to buy a $20,000 timeshare. They used it as a way to validate that double digit interest by assigning a dollar value to those points, thus bringing down the cost of that double digit interest. If you tell a story long enough, I'm certain there were enough salesman that bought their own story and now find themselves stuck with a high interest rate loan and no benefit to show for it. I believe that would essentially sour ones relationship with ones employeer. Especially in the area of obtaining referals from those who now feel, either right or wrong, you had lied to them.

Marriott Rumors on Street Talk

Bill4728

Ask_A_Rep

Mila78

Ask_A_Rep

Mila78

JimIg23

bogey21

Zac495

lll1929

BocaBum99

GrayFal

TUG Review Crew: Expert

rthib

lovearuba

lll1929

dougp26364

TUG Review Crew: Expert

Steel5Rings

Zac495

sernow

mas

dougp26364

TUG Review Crew: Expert

JimC

jerseyfinn

gmss0205

pwrshift

Tug Review Crew: Rookie

dougp26364

TUG Review Crew: Expert