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Marriott/Vistana overlay

Discussion in 'Marriott Vacation Club' started by GregT, Feb 20, 2019.

  1. SteelerGal

    SteelerGal TUG Member

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    Buyback and Exit Programs.
     
  2. SteelerGal

    SteelerGal TUG Member

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    It’s part of Sheraton Flex. And they are going to “reposition “ Sheraton.
    Marriott has been quite successful w/ Points. They need to get more Point owners instead of weeks.
     
  3. VacationForever

    VacationForever Tug Review Crew: Rookie TUG Member

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    Sheraton Flex is also voluntary. I won't swap a SDO for Sheraton Flex, even for free.
     
    SteelerGal likes this.
  4. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    They do seem to be willing to. People have reported either retroing their voluntary weeks or turning them back in when buying Flex.
     
  5. dms11

    dms11 Guest

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    Has there been any recent news (or rumors) regarding ability of Vistana owners to book directly through MVC (and vice versa)? Currently, the only way to do that (supposedly) is through Interval International, but that is a joke. Finding anything good through II is next to impossible, so far as I can tell.
     
  6. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    No news yet.
     
  7. JIMinNC

    JIMinNC TUG Member

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    Not sure if you have read this entire thread or not, but this was posted earlier in the thread after Marriott Vacations Worldwide's investor earnings conference call. CEO Stephen Weisz made the first official comment on the possibility of Vistana/Marriott cross-program bookings. Since this was in an investor presentation, it is legally required to be factual, not sales spin. Here is the comment:

    "Looking ahead to 2020, we have begun focusing on product enhancements for the various brands. Specifically, we are working hard to develop an integrated product form that can be leveraged across the Marriott, Westin, and Sheraton brands enhancing the overall value proposition for our owners and customers. It will take time to finalize and roll out this new product form. However, we are very excited about the potential it will provide and we look forward to updating you in the future as this work evolves.”

    So, official confirmation they are working on something, but no detail on what or when - other than it will be 2020. Speculation has been they might choose to roll it out as a celebration of the 10-year anniversary of the MVC Destination Club points system in summer 2020.
     
  8. 2boysmom

    2boysmom TUG Member

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    Thank you Jim. You are so diligent about keeping very current on developments and I really appreciate your efforts. Looking forward to seeing how this plays out.
     
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  9. dms11

    dms11 Guest

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    Yes, thank you Jim. I too am looking forward to how this plays out. I am refraining from using most of my Vistana options for 2020 in hopes of being able to use them at MVC properties.
     
  10. JIMinNC

    JIMinNC TUG Member

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    Based on what they said in the investor call, probably can't count on any kind of cross-booking before 2020, so by then many MVC 2020 dates will already be booked. Planning on 2021 might be more realistic perhaps.
     
  11. TravelTime

    TravelTime TUG Member

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    I am guessing they are either working on an integrated system all owners can trade in or they are introducing a new integrated system that does not allow owners to trade in unless they buy in or they get grandfathered in. This is the critical missing info. What, if anything, we current owners get out of them?
     
  12. bobpark56

    bobpark56 TUG Review Crew: Expert TUG Member

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    The internal booking and exchange programs are so different, i can't imagine how this would work...either for points members or legacy owners: Vistana has no internal exchange costs and no skim, Marriott DP folks can book 5 months or so earlier than equivalent StarOptions owners. If you are exchanging through Interval, Marriott lets you get and deposit a week of your choice (for fee), Vistana chooses and releases units with no input from you.
     
  13. JIMinNC

    JIMinNC TUG Member

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    Most of the speculation has centered around Marriott allowing Vistana weeks to join the Destination Club, and assigning an election point value for each week for access to the MVC resorts and vice versa. Such an option would not replace StarOptions, but would be another usage option in addition to Home Week booking, StarOptions booking, Interval Deposit, etc. How they would handle the Flex programs would be a bit more complicated - maybe they would develop a conversion factor from FlexOptions to MVC Destination Points.

    It's all speculation at this point, but what would stop MVC from allowing a Vistana owner the additional option to join the Destination Club and elect their week for a certain number of Destination Points on the same schedule as an MVC owner? A Vistana owner could book their home week at 12 months, use StarOptions at 8 months, or elect for DC Points and book in the MVC system 12/13 months out. There are probably issues I haven't considered, but just thinking about it high level, it seems like it could work as an additional option. Once the Vistana owner elected for DC points, those weeks would then also become bookable with DC points by MVC owners.
     
    TravelTime, SteelerGal and Fasttr like this.
  14. Swice

    Swice TUG Review Crew: Rookie TUG Member

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    That has basically been my assumption all along. They'll sell it the same way they did before: "adding options" on top of what owners already have. "You can continue using your timeshare as you always have, trade it, or elect DC points." Sound familiar?

    I'm actually wondering more about the back office integration. I'm not sure-- in the long run-- why they would need to run different brands: Marriott, Sheraton, Westin, etc. Marriott hotels has different "brands," but each one is aimed at a different segment of the travel audience. While each timeshare started as a connection to a different brand for marketing and loyalty purposes, there really is no longer anything differential about each... they're all timeshares that offer the same things. Looks like to me they could all be wrapped under the same management, standardize practices, order the same laundry soap, towels, sheets and tv's. Just visited a Sheraton property and missed a real dish rag (we were given a disposable rag), had different shampoo and soap and different dishes. Seems to me bulk buying across the lines would save some money.
     
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  15. controller1

    controller1 TUG Member

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    Well, after regular visits to timeshares associated with both Sheraton and Westin, in my opinion those timeshare brands are aimed at a different segment of the timeshare audience.
     
    TravelTime likes this.
  16. Swice

    Swice TUG Review Crew: Rookie TUG Member

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    I would certainly agree there are still carryovers from their original missions. But going forward, Marriott is certainly not going to continue to build new Sheratons, new Westins, new Marriotts. They will all go into the trust. MVC will finish what was started and then going forward they'll all have a common name of something genius like Bonvoy ;-) And they'll want to sell that common name across all the properties, or wherever trust units are located.
     
  17. Sapper

    Sapper Tug Review Crew: Rookie TUG Member

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    At one point, months ago, (I think in the Hyatt sub forum) there was a little speculation that Marriott might start to intentionally create differentiation between the different brands. Brand A more high end, brand B more family oriented, brand C more resort, brand D more destination, etc. The reason to do this would be to attract different target markets, thus having a larger customer base across all brands than if they were to roll it all under one Marriott brand (economy of scope). Then create an overlay using II that you have to buy into, or buy into for priority booking if you already have access to II through your brand maintenance fees.

    As for the back end, this is already happening. They have moved some of the Hyatt folks (like the transfer department) under Vistana. I am guessing the customer support people will be consolidated at some point. I can easily see some economy of scale occurring with purchasing consumables. I think doing this with durable goods may be more difficult to pull off as you would either have to refurbish multiple properties at one time (meaning you may not get full use from items with life left, costing $$$) or warehouse the product which would cost $$$, destroying any gains made through purchasing in bulk.
     
  18. SteelerGal

    SteelerGal TUG Member

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    Buying bulk wouldn’t be an issue because Purchasing buys based on scheduled needs.(I work in IT Planning and Distribution). Having separate departments and separate systems is costly so I can see it’s all being run out of one department.
     
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  19. JIMinNC

    JIMinNC TUG Member

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    I would be surprised if any cross-brand overlay was built around II, since II is primarily a weeks-based model. Marriott has long ago moved past the weeks-based model and is now almost exclusively selling pure points in their brands. Their Vacation Ownership line of business accounted for $443 million in earnings in 2018 for Marriott Vacations Worldwide, whereas their entire Exchange and Third-Party Management line of business (of which II is just one part*) accounted for only $57 million in profits. They already have extensive Points-based systems and infrastructure in the Destination Club and the Vistana Flex programs. In my opinion, any overlay will be structured to maximize the sale of Points since that is the engine that drives the company now.

    Note:
    * The Exchange and Third-Party Management business line includes Interval International, Trading Places International, Vacation Resorts International, Aqua-Aston and Great Destinations.
     
  20. chemteach

    chemteach TUG Member

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    Marriott owns VRI? I didn't realize that...
     
  21. Sapper

    Sapper Tug Review Crew: Rookie TUG Member

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    It’s all speculation. No one here knows what they are going to do. Marriott owns II now, they could change how it functions to add a points component.
     
  22. TravelTime

    TravelTime TUG Member

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    If these were the 3 options for my Vistana week, I would probably elect to convert my SOs to DPs most of the time to book at 13 months out wherever I want. To me it is easier to track everything in DPs that to manage multiple systems. I currently convert my 2 enrolled weeks to points and I like that. I am not really a “weeks” type of person. I wish I could convert all my DVC home resorts into one system and forget about the home resort.
     
  23. TravelTime

    TravelTime TUG Member

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    They need a W timeshare that is hip and cool and targets the younger crowd. I was just at the W Barcelona and overwhelmed by the music, lights and crowds that I checked out and moved to Hotel Arts which is a Ritz Carlton brand. There are definitely differences between brand IMO. I am a Ritz gal and not a W target. I canceled our reservation for the W Costa Rica after that.
     
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  24. dioxide45

    dioxide45 TUG Review Crew: Veteran TUG Member

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    ILG owned VRI. VAC bought ILG and thus also acquired VRI. Though I think they sold the VRI Europe already.
     
  25. bazzap

    bazzap Tug Review Crew: Rookie TUG Member

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    Yes, there was a post here on TUG back on Jan 19 2019
    "On December 21, 2018, a subsidiary of Marriott Vacations Worldwide Corporation (“Marriott Vacations Worldwide”) completed the disposition of its 75.5% interest in VRI Europe Limited to an affiliate of the minority shareholder, CLC Resort Management Limited (“CLC”) for $63 million. In connection with the transaction, Interval International entered into a long-term extension of its global affiliation agreement with CLC Resort Developments Limited for mixed-use holiday products under its Club La Costa World (CLC World) brand."

    (UNITED STATES SECURITIES AND EXCHANGE COMMISSION FORM 8-K, December 21, 2018)
     

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