ILG merger- changes to cost of points & presidential level threshold?

[DEScottzz]

We just got back from an awful hard-sell owner update at Canyon Villas.

The salesperson and manager both told us that in September, after the ILG merger closes, the price of points will go way up, perhaps to $18, and the threshold required for presidential level will also go up, perhaps from 10k to 13k. Therefore it would be a crime for us not to buy 1500 points today to ensure that we're grandfathered into the presidential level. (About $20,000 or so.)

The 8475 points we have now are plenty for us at the moment, but if their assertions are true, maybe we would spend $10,000 on a batch of resale points.

Does anyone have the scoop?

BTW, my wife is such a soft touch. I finally said I was not feeling well, and they needed to finish up in 10 minutes. They kept hard at it unti I finally just said, "I'm not doing it, I don't feel well, and it doesn't feel right, and I need to leave." And I told her, "Don't ever move your head up and down. Only move your head from side to side."

All in all, not the quick and easy 30,000 MRP I was planning on.

 

[travelinmom]

That is very similar to what we were told from a "customer service" rep at Grande Vista in June. It was probably the hardest sell we've ever had with Marriott. He got very starky with us when we said we were not interested in purchasing at this point. We are doing an update tomorrow at a different location. I'm interested to see if we get the same story.

Were you told that if you buy 1500 more points, Marriott will also include a "buy back" plan if we or our heirs ever wanted out of our timeshare points?

 

[DEScottzz]

No, a buy-back plan wasn't mentioned. We were told, though, that we would be platinum for life in MRP, and that our kids would inherit that status.

 

[VacationForever]

That is very similar to what we were told from a "customer service" rep at Grande Vista in June. It was probably the hardest sell we've ever had with Marriott. He got very starky with us when we said we were not interested in purchasing at this point. We are doing an update tomorrow at a different location. I'm interested to see if we get the same story.

Were you told that if you buy 1500 more points, Marriott will also include a "buy back" plan if we or our heirs ever wanted out of our timeshare points?

They were probably spinning a twist on Right Of First Refusal, not so much a buy back plan.

 

[VacationForever]

No, a buy-back plan wasn't mentioned. We were told, though, that we would be platinum for life in MRP, and that our kids would inherit that status.

Only for as long as you own the portfolio, not true for life status. Granting of loyalty elite status through timeshare ownership can also be changed.

 

[DEScottzz]

It seems reasonable to be "as long as you own," but I would be upset if they took it away.

 

[JIMinNC]

The salesperson and manager both told us that in September, after the ILG merger closes, the price of points will go way up, perhaps to $18, and the threshold required for presidential level will also go up, perhaps from 10k to 13k. Therefore it would be a crime for us not to buy 1500 points today to ensure that we're grandfathered into the presidential level. (About $20,000 or so.)

The 8475 points we have now are plenty for us at the moment, but if their assertions are true, maybe we would spend $10,000 on a batch of resale points.

Does anyone have the scoop?

I don't think anyone outside of Marriott Vacations Worldwide executive management "has the scoop" right now. I wouldn't expect the sales staff at the resorts to be in the loop yet on any major changes that could take place after the merger closes in September.

All that will likely happen in September is that the ILG companies will become wholly-owned subsidiaries of Marriott Vacations Worldwide, Inc. and the ILG stock will cease trading on the exchange. It will likely take many months, or even a year or more before there are significant changes to the products being sold. If there is any kind of integration of the programs - and no one knows if they will integrate or run the programs separately - a lot of IT work will need to take place before those changes can be implemented.

Timeshare sales people know they have to create a sense of urgency in potential buyers, so I'm sure they are trained to use whatever things they can to create that sense of urgency. The merger is an event that could reasonably be expected to cause change at some point, so they want you to think if you don't buy NOW you're going to miss out on a great opportunity. They have been using the "price is going way up" and "the points required for XX tier is going way up" as ways to create that call to action for many years. Now they just have the merger event to use as their catalyst.

Having said all that, the price will be going up. It always does. But it won't go to $18 in one step. The "list" price was $12.12/point in July 2014 and it's $13.96/point today. That's a rate of increase of about 3.6% per year. I wouldn't be surprised to see the increases over the next four years be a bit greater than that rate, especially since Marriott is buying out one of their biggest competitors, but I'm pretty sure it's not going to $18/point any time soon. I also wouldn't be surprised to see the points required for the different tiers to rise as well, but that would not be unexpected even without the merger. If they ever do meld the ILG resorts into the Destination Club, I think it is likely those tiers will be adjusted. But I would be surprised if it happens as soon as this fall.

This is all just my speculation, of course, but I would be willing to bet the statements made by those sales people you met with were little more than their own speculation as well.

 

[DEScottzz]

Thanks, Jim

 

[WinniWoman]

What affect will this Marriott/ILG merger have on VRI managed resorts outside of Marriott, if any?

 

[Swice]

I wasn't sure whether to continue this threat or start a new one. My comments are connected to the above... but I'm thinking we need a new thread of "recent" sales experiences with only a few lines. I'm wondering if there is a new round of "less than pleasant experiences."

Just returned from Beachplace Towers and it was tied with our worst experience ever at a presentation. The sales guy (I'm not using his name on purpose because I don't want to be more of a jerk than I ended up being), started out very quickly skirting the fine line of trust points. I challenged him and he didn't take the hint that I'm an informed customer. He then started talking in circles and ended up contradicting himself by saying "to Marriott a point is a point." Once he cut off his own argument, I'm ashamed to say, I lost control. I told him, "you know what, I don't think I like you and I think you need to go and pull someone else in here." He slammed his folder shut and stormed out. The second guy came in and he was great. He admitted to me he knew my record, saw the number of presentations I had been to, and we had a very nice conversation. He offered a hybrid deal that was actually "somewhat reasonable." But at the moment in our lives, I'm not sure about our needs and wants.

I was told (I don't remember which guy) that Marriott's goal is the Disney price of $18 a point. The pitch is Presidential is not as enticing to us personally since we are already lifetime platinum (and will be grandfathered in on the hotel side next month). Yes, I would appreciate the 60-day discounts, but that's not enough of a factor to buy more points.

Again, I'm wondering that the sales trend is.