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MVC Destination Club Points System FAQ

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Dave M

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Summary of the New Marriott Points-Based Ownership Option

On June 20, 2010, Marriott introduced a new points program. New timeshare purchasers must either purchase a week in the resale market or purchase points in the new program because Marriott will no longer sell weeks. Existing owners of a week(s) may “enroll” in the points program in order to have the option to use points, possibly save on fees and/or to gain the benefit of being able to trade the use of a resale-purchased week for Marriott Rewards points.

Two important notes:
(1) “Points” in this summary always refer to the new points program, not to Marriott Rewards points, unless specifically stated as “Marriott Rewards points”.
(2) Many links herein are to pages at Marriott’s my-vacationclub.com. To access about half of those Marriott links, you will be taken to a log-in page instead of the indicated page. Owners must log in and will then be taken directly to the linked page.

Current Weeks Owners Who Do Not Enroll in the Points Program
Current owners of one or more weeks need not enroll in points to retain existing benefits. An owner can still reserve a week, exchange through II, rent through Marriott or on the open market or trade for Marriott Rewards points (if that option previously existed for that ownership) just as in the past.

Although there are no written guarantees that reserving a week and exchanging through II will be as easy to do as in the past, both Marriott and II have said that it should be. Here, for example, is a link to II’s statement that its “comparable exchange” methodology will apply to Marriott as well as current weeks owners. (See first post at the link.)

Current Weeks Owners Who Enroll in the Points Program
Enrolled Owners can elect to use points or use their week each year as they have in the past. Points can be used to reserve any number of days at most Marriott timeshare resorts on an availability basis or for cruises and other travel experiences in the new Explorer Collection. If an owner wants to use points for a year (e.g., 2013), the owner must make a formal election to do so by September 30 prior to the year of the intended points use.

It generally will not make sense to elect points for the purpose of staying at Marriott for a week. The number of points required to reserve a week that is comparable to the week owned by the owner will almost always be more than the points available to that owner from exchanging the use of the owned week for points. Instead, the owner should consider reserving a week and exchanging through II, just as in the past.

However, owners might consider points for multiple short stays, especially mid-week nights, which cost fewer points than weekend stays. An owner of one or more weeks might also be able to reduce various fees by joining the points program. Fees for lock-off, split-week, internal Marriott exchange, trade for Marriott Rewards points and II membership are included in the annual points fee. Fees for exchanges to non-Marriott timeshares are not included in the annual fee.

Points not used in the current use year can be carried over ("banked") to the following use year, if an election to do so is made by June 30 (six months before the start of the carryover year). They expire if not used in that following year. Also, points may be borrowed from the next use year to be used in the current year.

An enrolled owner may not elect points for a year and then trade some or all of those points for Marriott Rewards points. The owner must trade the use of the owned week rather than electing points for a year if the owner wants Marriott Rewards points.

Until June 14, 2012, an owner who enrolled would be given 800 special points (called “PlusPoints”), which could be used for short stays or for the new Explorer Collection (see above link) of activities or stays. These points could be used only one time and were valid for one year from the enrollment date. It appears that PlusPoints are no longer being offered as an enrollment incentive.

Owners of weeks purchased on the resale market (i.e., not through Marriott) can (1) enroll those weeks and (2) gain the privilege of trading the use of their week(s) for Marriott Rewards points if they enroll, but only if their purchase closed and the deed was recorded by June 20, 2010. Such owners receive the same Trade for Points privileges (some resorts do not offer the MR points option) as developer-purchase owners of the same resort and season.

An owner who enrolls in points and later decides to cancel enrollment, may do so without any future obligation for points fees. All of the rights and privileges of ownership revert to what the owner had prior to enrolling in the points program.

Fees to Enroll and Participate in Points
Owner of week(s) purchased from Marriott: $2,395 effective on June 14, 2012. There is also an annual fee of $165 for enrolled weeks with less than 6,500 total points allocated; $199 for allocated points of 6,500 or more. The annual fee is payable every year, whether or not you use points, until you drop your points membership.

An owner of both resale and Marriott-purchase weeks will not have to pay more than $1,995 to join.

Interval International Account
Those who enroll in points will get a new II account, with the annual membership fee included in the annual points fee (see above). The owner’s existing II account must be maintained as long as it contains deposits or pending exchanges or if the individual owns any non Marriott timeshares that are handled in the account. If an owner decides to enroll in points, ask about options for credit if there are unused future membership years in an II account that will be canceled. While talking to Owner Services about enrolling, the rep can get an II rep on the phone who will likely offer one or more Accommodation Certificates ("AC"), depending on how many years of membership have been paid. Note also, however, that II’s T&C provide for a pro-rated refund of membership fees paid for future years, which might be available to the insistent Enrollee in lieu of ACs.

Purchase of Points
Purchased points can be used in most of the same ways that a weeks owner can use a week under the old system – reserving a week, exchanging through II (or in Marriott’s internal system) or trading for Marriott Rewards points. A points owner may rent to others an occasional week reserved with points, but may not rent regularly to the extent Marriott might deem the individual as being engaged in “commercial activity”.

The cost for points in the new program has recently (February 2012) been reported as ranging from $9.10 to $10.94 per point, depending on the particular presentation, with a minimum purchase of 2,000 (plus increments of 250 points) points for new owners and 1,500 points (plus increments of 250 points) for existing weeks owners who enroll. A portion of the enrollment fee (applicable only to existing weeks owners) may be waived (typically up to $595) if an existing owner enrolls and buys points.

For a new owner, buying a useful package for stays at peak times or top resorts probably means buying at least 4,000 points. Annual maintenance fees are currently $.41 per point ($1,640 for 4,000 points). The points owner does not pay the annual fees required of Enrolled Owners (See "Fees to Enroll...." above.)

Advantages and Disadvantages of Enrolling Weeks Ownership in Points Program
As stated above, some owners will save on fees - particularly multiple-week lock-off owners who, lock off and exchange. And some owners will love the opportunity to give up their week to use points for several short stays, especially mid-week, or for off-season stays. Others can gain the right to trade the use of their resale week(s) for Marriott Rewards points.

However, the cost to join is very high and the payback period for that initial $2,395 fee is long, if at all. For example, a resale week owner who wants to be able to trade for Marriott Rewards points can instead purchase 100,000 Marriott Rewards points each year (50,000 for each spouse) for $1,250, about the same as the annual maintenance fee at many Marriott resorts, without giving up the use of the week. Also, anticipated saving on fees might be illusory if the owner doesn’t normally incur significant Marriott and II fees each year. Further, electing points for the purpose of reserving a week at another resort will usually not be practical because the points given to an owner for giving up the use of a week are less than to reserve the majority of comparable weeks at a Marriott resort, even at the owner’s home resort! (It should be more practical to use the existing weeks reservation method or exchange method instead.)

There is a lot that is currently unknown (i.e., not spelled out in any document that Marriott has released) about the points system. Although TUG participants are working hard to get answers to the unknowns and Marriott wants to resolve many of those issues, there are enough open issues to suggest caution this early.

For more information on potential advantages of the points system, see this thread and this one.

For more information on possible reasons not to enroll in points, see this thread and this one, which is a survey on enrolling, but the majority of responses are negative, often with reasons for not enrolling.

Destination Club Points Charts
Use to determine how many DC Points are required to reserve an interval according to resort, dates/days/length of stay, unit size and view. (*Note this is NOT to be used to determine the amount of DC Points which will be allotted to enrolled Weeks.)

2012-2013 Points Chart (No longer available at my-vacationclub.com.)
2013-2014 Points Chart (from my-vacationclub.com)

Other links
All of the legal documents associated with enrolling

Marriott’s description of usage options for current weeks owners, current weeks owners who enroll (“Enrolled Owners”) and new purchasers (“Vacation Club Points Owners”)

Marriott's FAQs on enrolling existing weeks in the points program

Definitions for common points terms used on TUG and a more detailed Marriott glossary of terms (Schedule “1” at end of the document)

Cost in points to exchange for a non-Marriott week through II

Suggestions on how to stretch the value of points

The first TUG poll related to the Destination Club: http://tugbbs.com/forums/showthread.php?t=135300

Conclusion
Although some current weeks owners will find the new program appealing, many here suggest caution or advise against joining, at least for now. There is much yet to be learned about how the new system will actually operate. Some Marriott reps have stated that Marriott has projected that only 20%-25% of weeks owners will enroll in points. That statement by itself should make current weeks owners cautious about joining the points program – for now - compared to using their weeks as they always have. However, to lock in current pricing, a decision now to not enroll should be reviewed again before June 14, 2012, the date through which current pricing (and the offer of 800 PlusPoints) appears as though it won’t change.
 
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