Extra holidays come from both Wyndham owned inventory and reservations made by owners and given to EH to rent out. Its a way for owners to offset their maintenance fees and for Wyndham to get new sales leads. They are a for-profit company after all. EH has a terrible return in my opinion and is still risky because they might only rent a portion of their reservation, but it's there. It means owners don't have to go through the trouble of finding a renter themselves, processing payment, using a guest certificate, handling any questions or complaints, and running the risk that someone does a chargeback. Wyndham does all that. Marketing, reservation management, payment processing, chargeback disputes, etc. For their efforts, Wyndham takes a 40% cut. Whether it's worth 40% is debatable, but I personally don't think it's worth it. Then again, I already have a few people I rent to if I know I'll have extra points that I cannot rollover. Not everyone can figure out that process, or have renters they can trust.
As far as renting from VIPs, what you forget is while renting from VIPs is great, there are some drawbacks. First, many renters don't offer refunds. So if your plans change and you cannot go, you lose that money. Renting is not a good option for people who's plans and work schedules can change. With ownership, you can at least get your points back if you cancel more then 15 days out or get the insurance. Someone who has an unpredictable schedule will more likely get insurance. Second, the 50% discount happens at the 60-day mark. Beach locations during summer break are hard to get at the 60-day mark unless you're ok with a one-bedroom. People that need three or four bedrooms have to book far out, so they don't get that 50% discount. They pay full price. Your options are limited if you want a discount. Third, It's hard to find someone who can book for $7 or less since CWA mf went over $6. Maintenance fees can be as low at $4.27 per 1,000 points. Buying on the resale market will not get you VIP, but it will give you more flexibility to reschedule, and gives you more control over your reservations. If you need that 3 or 4 bedrooms, you can book it farther out, cheaper then renting from a VIP if your maintenance fees are less then $7 per 1,000. You do have the financial commitment of maintenance fees, but with Ovations, it's easier than ever to dump your timeshare. Especially for prime contracts that have low maintenance fees. If you'd prefer not to let Wyndham have free inventory to sell, or Ovation goes away, you won't have a problem finding a taker for that low mf contract. I know you like to repeat over and over how you like renting from a VIP, you should also provide the disclaimer that the discount is for reservations of 60 days or less. The salespeople like to leave out that important tidbit of information to make people think they are getting a better deal then they are. You're not a salesperson, so don't forget to add the disclaimer. "I can rent from a VIP at a 50% discount on my reservations made less than 60 days from check-in".
