# Unforeseen Problems with Marriott New Rental Program



## nycjimster (Jan 27, 2008)

Marriott new rental program is causing a number problems for Aruba owners (I can only discuss my experience at Aruba):
1-If Marriott takes your week under the new rental program, it will pay you much less than under the rental program.  
2-Marriott are not taking many Platinum weeks in its new rental program(Marriott will not take my Aruba Surf week for Feb 2009.)
3-Owners are forced to rent their units on their own or bank with Interval.  
4-The flood of rentals from owners have caused a reduction in rental prices.   I have seen this first hand in my Aruba week.
5-Marriott Aruba trades are more available. 
6-The reduced rental prices and trade availability are negative impacting the value of Marriott timeshares.  Why buy a Marriott timeshare for $30k or more and pay $1,000 for maintenance while you can rent from desparate owners or trade for a Marriott unit?
7-This also negatively impact the nearby Marriott hotel in Aruba.  Why pay Marriott hotel prices while you can rent a 2 bed/2 bath for the same price and without the 18% hotel taxes.  

I hope somebody from Marriott read this thread.  I believe there are a lot of negative unforeseen programs with the new rental program.


----------



## timeos2 (Jan 27, 2008)

*Big Brother Marriott*

It sure pays to be a Marriott owner. They look after you to be sure they get a big cut from the purchase, to any rentals, to overpriced management, to the ROFR nonsense when you try to get out and more.  Nice folks.  Glad I'm not part of that "family" anymore.


----------



## Dean (Jan 28, 2008)

nycjimster said:


> Marriott new rental program is causing a number problems for Aruba owners (I can only discuss my experience at Aruba):
> 1-If Marriott takes your week under the new rental program, it will pay you much less than under the rental program.
> 2-Marriott are not taking many Platinum weeks in its new rental program(Marriott will not take my Aruba Surf week for Feb 2009.)
> 3-Owners are forced to rent their units on their own or bank with Interval.
> ...


Given it was always better to use or rent on your own, the Marriott rental program was only a fall back for many people.  I don't see many of the negatives you postulate actually happening.  It seems to me that Aruba has always had more availability for exchanges due to other factors such as Air fare costs.


----------



## iamnotshopgirl (Jan 28, 2008)

nycjimster said:


> Marriott new rental program is causing a number problems for Aruba owners (I can only discuss my experience at Aruba):
> 1-If Marriott takes your week under the new rental program, it will pay you much less than under the rental program.
> 2-Marriott are not taking many Platinum weeks in its new rental program(Marriott will not take my Aruba Surf week for Feb 2009.)
> 3-Owners are forced to rent their units on their own or bank with Interval.
> ...




I would disagree with you. See, I think Marriott knows EXACTLY what they are doing! In regard to #1 True, and that is if they even take your week.#2True, not only are they taking only a few platinum weeks (as you state) but they are not taking gold weeks as I have discovered!I have called and emailed Marriott to inquire which gold weeks from May 15-Dec 15 they take for their rental program and not one advisor could tell me nor would anyone answer me in an email.#3 True, I have started to rent my units on Ebay, Redweek & Tug. It is not that difficult and I have been successful and I continue to exchange with Interval. I refuse to exchange for points at .0125 per point since Marriott devalued I am not going to give them a a 2BR unit for under $1200 (90,000 pts). But with the new (rummored) internal Marriott exchange system how will that potentialy impact your exchange ability?#4 True, I too have seen the lowered prices with my Aruba gold weeks my 2 BR OS units w/lockout is renting out at $2500-2800, divided the 1 BR is going $1800 or less lockoff $1200 or less.#5 True, there are more units availble. Surf Club is nearing completion and with Ocean Club and the Hotel there is an abundance of availibility. This impacts rental rates (supply and demand) and when you check Interval you can see the availability and if it is not there "deposit first" and you will get confirmed in a short period of time.#6 True, although I do not consider myself a desperate owner I am accepting rents at what the market will bear. If a potential buyer can rent at these rates why would you pay 30k to own?#7 True, I can tell you that Marriott recieves more than the $25-2800 for the 2BR OS units than I rent at. Although, I do not have platinum weeks I reserve the 4th of July and the week before every year since I have owned. The 4th of July week does NOT make their rental program.   

Some of what we are addressing here has appeared in other threads. I will try to sum it up. I (others) believe that Marriott broke their promises when we were purchasing concerning rental, exchanging for points. The otherside believes Marriott as a business can do whatever they like because the "shareholder" comes first and the owners come last. It's all about profit and returns!

With MF's/reserve fee for my two gold weeks at over 2k if I rent just one week I am bearly making expenses. If Marriott goes to an internal exchange system and places more restrictions/fees which will further impact the t/s then I will have to make a decision to sell.

bob


----------



## bogey21 (Jan 28, 2008)

timeos2 said:


> It sure pays to be a Marriott owner. They look after you to be sure they get a big cut from the purchase, to any rentals, to overpriced management, to the ROFR nonsense when you try to get out and more.  Nice folks.  Glad I'm not part of that "family" anymore.



I, too, managed to etracate myself from my 4 Marriott Weeks primarily due to escalating MFs, and the unilateral changes in their rental and sales programs.It took a while but I managed to come out whole

GEORGE


----------



## camachinist (Jan 28, 2008)

Yeah, I'm working on that (the extrication process) right now. Guess I must've missed the train the OP is PO'd about. I've always rented out our NCV units on my own and done real well. This year, right now, there are over 100 intervals at NCV up for rent and I'm still confident LOL..

Pat


----------



## bobcat (Jan 28, 2008)

camachinist said:


> Yeah, I'm working on that (the extrication process) right now. Guess I must've missed the train the OP is PO'd about. I've always rented out our NCV units on my own and done real well. This year, right now, there are over 100 intervals at NCV up for rent and I'm still confident LOL..
> 
> Pat



Remember, we are in a recession. People are holding onto their money. I have several people I know who cxled their plans or are not taking a big trip this year. We also put a hold on a big trip. Therefor more rentals because people are not using the week or they need the money.  I hope things get better quick.


----------



## camachinist (Jan 28, 2008)

Yup, agree. I provide maximum flexibility for renters with a number of payment plans as well as acceptance of credit cards. I also priced our intervals more agressively with "specials" which change periodically. I'm noting the last 2 years that they rent 3-5 months out typically. No worries, it's just a four hour drive if no joy. De-stress 

Pat


----------



## Art (Jan 28, 2008)

Sounds like the rental market is working the way it is supposed to.  

The supply has increased, prices have come done.

Demand has decreased, prices have come down.

If the opportunity to make a profit has decreased, why would any business (Marriott or otherwise) want to increase its inventory?

Don't forget, Marriott's primary rental business in Aruba is the rooms in the hotel adjacent to the resorts.  Taking resort weeks for rental makes business sense only if the hotel rooms are sold out.  Anyhow, Marriott does get an inventory of resort weeks from people who have exchanged them for points; whether knowledgeable people on TUG think that makes sense or not 

Art


----------



## BocaBum99 (Jan 28, 2008)

I don't see it the way the OP does.  I believe that Marriott determined that its previous rental program wasn't effective for them.  So, they changed it.

Owners didn't lose their right to rent their weeks on their own.  You don't get the advantage of the Marriott brand, but you don't pay the high commission fee either.

If there is a general reduction in the rental rates at Marriott's, it's probably due to the general economy vs. any devious plan by Marriott to screw over owners.

The bottom line is that owning a Marriott timeshare is a luxury item that should be enjoyed for the pride of ownership and great vacations you can take within the Marriott system or the high end trades you can get.  If you bought it for investment purposes, there are many other timeshare systems that are far better.  That was a flawed investment thesis from the outset.


----------



## Dave M (Jan 28, 2008)

I agree with Boca. Even under the old rental program, the majority of those posting here found that they could do better by renting on their own. 

Also, Marriott stated that they had numerous complaints from those who tried to rent under the old program. They focused particularly on the uncertainty as to whether someone renting through Marriott would get any amount at all, particularly when the renter canceled with no penalty shortly before check-in! 

So the change provides more certainty for owners and much less hassle and communication for Marriott, even though those owners whose weeks are accepted by Marriott usually get less than under the old program.


----------



## thinze3 (Jan 28, 2008)

I also remember reading or hearing that Marriott had received some feedback from owners complaining about the lack of availability for prime weeks due to all the multiple week owners booking so many good weeks for the single purpose of renting - especially in places like Aruba.

The Marriott system was originally formed as a timeshare system where owners could use and/or trade their weeks, and rent them out on years that could not be used. The trading aspect should remain the core of the system for the system to work for majority of owners. Renting, IMO, should be secondary in the system.

I hope Marriott keeps it that way.

*IMO*


----------



## iamnotshopgirl (Jan 28, 2008)

Dave M said:


> I agree with Boca. Even under the old rental program, the majority of those posting here found that they could do better by renting on their own.
> 
> Also, Marriott stated that they had numerous complaints from those who tried to rent under the old program. They focused particularly on the uncertainty as to whether someone renting through Marriott would get any amount at all, particularly when the renter canceled with no penalty shortly before check-in!
> 
> So the change provides more certainty for owners and much less hassle and communication for Marriott, even though those owners whose weeks are accepted by Marriott usually get less than under the old program.



Dave

I agree with what your saying IF Marriott accepts your week. As stated in my prior post I have "adapted" to the rental change and I am renting my units on my own. I am sure many other tuggers have done the same. My frustration with the system is that after numerous inquiries to advisors and through email you can't get a straight answer out of them (Marriott) as to what weeks made the cut and how many. Dave this is not rocket science to me it is a simple question that somebody in the Marriott organization has an answer to and I as an OWNER should be able to get a straight answer. 

"So the change provides more certainty for owners and much less hassle and communication for Marriott, even though those owners whose weeks are accepted by Marriott usually get less than under the old program."

You made my point I want some of that "certainty" that I as an owner am entitled too.

bob


----------



## gmarine (Jan 28, 2008)

iamnotshopgirl said:


> Dave
> 
> I agree with what your saying IF Marriott accepts your week. As stated in my prior post I have "adapted" to the rental change and I am renting my units on my own. I am sure many other tuggers have done the same. My frustration with the system is that after numerous inquiries to advisors and through email you can't get a straight answer out of them (Marriott) as to what weeks made the cut and how many. Dave this is not rocket science to me it is a simple question that somebody in the Marriott organization has an answer to and I as an OWNER should be able to get a straight answer.
> 
> ...



As Marriott owners we are entitled to use our weeks, rent them on our own as we wish or exchange them. 

We are in no way entitled to have Marriott rent our weeks for us. And we are not entitled to know which weeks Marriott accepts or how many they accept.

I'm sure Marriotts rental program will change again at some point so your better off not relying on Marriott to rent your week.


----------



## iamnotshopgirl (Jan 28, 2008)

gmarine

Not going to debate you. I beg to differ...

bob


----------



## Dave M (Jan 28, 2008)

I think that advance certainty is logical for us to request but impossible for Marriott to give us. It's a yield management issue. Thus, Marriott isn't about to say, "We will accept into the rental program all weeks # 27 at XYZ resort" and risk getting so many as to have a glut on its hands. 

I don't agree that as owners we have the _right_ to know what weeks and how many of them made the cut. We have the rights guaranteed by our resorts' legal documents and that isn't one of them. Everything else is in Marriott's court to determine if it will share with us.

I don't blame Marriott for not revealing what weeks and how many are accepted into the program. It doesn't help Marriott in any way to do so. And it doesn't really help us because, as we have already seen, Marriott makes significant changes for which weeks it will accept from one year to the next under the new program. Even if we could successfully argue that the info would be helpful, it's still Marriott's private internal info to decide whether or not to disclose to us.

The fact is that there is more certainty now than under the old program. Now, we ask about a rental when we are ready to make a rental decision and Marriott says yes or no. If they say no or if we don't like the rental $ offer, we make other choices. If we like the offer, we take the money immediately and move on.

Under the old program, Marriott would accept the week into the rental program, but there was no way to determine for sure until it was too late whether some or all of the week would be rented or whether a scheduled rental would be canceled. Thus, we could get stuck with only a few nights' rental or no rent at all.

I'm not saying the current program is better.  It's different.


----------

