Clark
TUG Member
- Joined
- Jun 6, 2005
- Messages
- 491
- Reaction score
- 54
- Location
- Upstate N.Y.
- Resorts Owned
-
Grande Ocean
Barony Beach Club
I have been trying to figure out even conceptually how Marriott could manage to support the resale of Destination Points, and am interested in opinions on how it could possibly work.
The Scenario: Mr. Jones walks in off the streets and buys into the DP program, buying enough points to go to Ocean Watch each year. Then suppose Jones can no longer travel and wants to sell his points, and that Marriott has a program to buy them back. This discussion is about how that could work (or not).
I'm going to make up numbers here just for the purpose of discussion (they may not be realistic -- just to demonstrate the point).
Let's suppose that weeks owner Mr. Smith paid Marriott $20,000 for the same Ocean Watch week that Jones uses each year, and that Jones bought 5000 points, also for $20,000. So, in a sense, Smith and Jones ownership are equivalent.
Smith is also selling and has discovered via Ebay or otherwise that the true value of his week on the resale market is only $5000 or 1/4 of that he paid. This would make Jones Destination Points also only worth $5000
So -- how can Marriott buy Jones points back? If they pay more than $5000 for the points they would be supporting the value of Smiths week in the resale market. Something Marriott, to my understanding, has never done.
If they offer $5000, then it's a direct acknowledgement of the loss one immediately takes when buying into the program. Another thing it is hard to imagine Marriott doing.
That seems to leave some kind of ROFR - like option where Marriott intercedes on sales between third parties. Does Marriott even have a ROFR type clause with their Destination Points program? Does anyone know?
Well, as you can see, I havent gotten very far figuring out how it could work --- ?
The Scenario: Mr. Jones walks in off the streets and buys into the DP program, buying enough points to go to Ocean Watch each year. Then suppose Jones can no longer travel and wants to sell his points, and that Marriott has a program to buy them back. This discussion is about how that could work (or not).
I'm going to make up numbers here just for the purpose of discussion (they may not be realistic -- just to demonstrate the point).
Let's suppose that weeks owner Mr. Smith paid Marriott $20,000 for the same Ocean Watch week that Jones uses each year, and that Jones bought 5000 points, also for $20,000. So, in a sense, Smith and Jones ownership are equivalent.
Smith is also selling and has discovered via Ebay or otherwise that the true value of his week on the resale market is only $5000 or 1/4 of that he paid. This would make Jones Destination Points also only worth $5000
So -- how can Marriott buy Jones points back? If they pay more than $5000 for the points they would be supporting the value of Smiths week in the resale market. Something Marriott, to my understanding, has never done.
If they offer $5000, then it's a direct acknowledgement of the loss one immediately takes when buying into the program. Another thing it is hard to imagine Marriott doing.
That seems to leave some kind of ROFR - like option where Marriott intercedes on sales between third parties. Does Marriott even have a ROFR type clause with their Destination Points program? Does anyone know?
Well, as you can see, I havent gotten very far figuring out how it could work --- ?