Am I analyzing the value of destination club points correctly? (new owner)

[MrbeanOnVacation]

We recently purchased a week in Aruba at Ocean Club with annual fees <$1,500. We were advised we could convert the 1 br gold week for 2050 points. That basically equates to 1.36 points per annual fee $s.

While we will usually be using this week in Aruba every year, I have been thinking through how we will handle years where we can't use the property - or - want to travel elsewhere:
a) Convert to destination club points
b) Convert to interval international points
c) Rent on Redweek/TUG/elsewhere

To assess 'a' I took a look at the 2023 club point charts and the member $$ cost for some properties on Marriot.com.
4 nights in February @ Orlando Grand Vista: 1,125 club points or $1,125 (w/ taxes)
4 nights in June @ Williamsburg Manor Club: 800 club points or $908 (w/ taxes)
4 nights in June @ Palm Desert Shadow Ridge: 540 club points or $872 (w/ taxes)

This adds up to 2,465 club points or $2,905 (w/ taxes).

To assess the value I added 415 club points to my current amount (2,050) for a total of 2,465 club points. Assuming my annual fees were at the current 1.36X rate I would see my annual fees go up from $1,500 to $1,812.

This would lead to an annual savings of ~$1k by using the club points - vs - paying cash. [Yes, I know I made an initial purchase in the timeshare week - but ignoring for this analysis for now]

On Redweek it looks like the average range is ~$2,500-$2,800 depending on the week (I saw one July 4th for $3k, but unclear if it'll rent). This would give me $1k, or a little more, than my annual fees, and I can keep the cash.

If this all makes sense, is there any reason I would want to convert my week to club points - vs - renting and getting the cash and then having the flexibility to just go to Marriott and pay cash? Seems like less of a headache then worrying about using every single club point over the course of 2 years.

Thoughts?

[I don't have access to Interval yet - so unclear if their math is more advantageous - would appreciate any thoughts on this option too]

 

[StevenTing]

Your numbers are not wrong. It's just what makes sense to you. With your $1.36 rate, it seems your best options are what you listed. Normally i would rent out my points and take cash and not have to worry about either. It's much easier to rent out points than weeks but for you, that's a losing proposition.

I think the unknown variable to me is how easy is it to rent your week. Gold week provides a limited window. What happens if you don't get it rented? I find I get the most value by using my weeks and/or points wherever possible. In your situation, I'd probably exchange for points and then rent additional points and then visit where I want. Not as flexible as cash but that is what works for me.

 

[DanCali]

I am not a fan of comparing to cash values on marriott.com since those are not necessarily prices I would be willing to pay myself and they don't account for possible discounts like MVC owner discount, AAA discount etc.

A better comparison is to compare to the rental value of points (vacationpointexchange.com) which is currently around $0.70/point. In this case, your 2050 points are worth about $1400. Renting a week is somewhat less convenient than renting points, but if you can get $1800+ for your week you'd probably be leaving too much money on the table to just elect points. In other words, take the rental value of the week and divide by the number of points you can elect. If that is substantially higher than $0.70 (point rental value) then electing points makes less sense.

I go through a similar analysis with my weeks. I would rather rent NCV Platinum weeks if I can secure a summer reservation, but I'm more inclined to elect points for other weeks that have a lower rent/point value)

 

[Pamplemousse]

We recently purchased a week in Aruba at Ocean Club with annual fees <$1,500. We were advised we could convert the 1 br gold week for 2050 points. That basically equates to 1.36 points per annual fee $s.

While we will usually be using this week in Aruba every year, I have been thinking through how we will handle years where we can't use the property - or - want to travel elsewhere:
a) Convert to destination club points
b) Convert to interval international points
c) Rent on Redweek/TUG/elsewhere

To assess 'a' I took a look at the 2023 club point charts and the member $$ cost for some properties on Marriot.com.
4 nights in February @ Orlando Grand Vista: 1,125 club points or $1,125 (w/ taxes)
4 nights in June @ Williamsburg Manor Club: 800 club points or $908 (w/ taxes)
4 nights in June @ Palm Desert Shadow Ridge: 540 club points or $872 (w/ taxes)

This adds up to 2,465 club points or $2,905 (w/ taxes).

To assess the value I added 415 club points to my current amount (2,050) for a total of 2,465 club points. Assuming my annual fees were at the current 1.36X rate I would see my annual fees go up from $1,500 to $1,812.

This would lead to an annual savings of ~$1k by using the club points - vs - paying cash. [Yes, I know I made an initial purchase in the timeshare week - but ignoring for this analysis for now]

On Redweek it looks like the average range is ~$2,500-$2,800 depending on the week (I saw one July 4th for $3k, but unclear if it'll rent). This would give me $1k, or a little more, than my annual fees, and I can keep the cash.

If this all makes sense, is there any reason I would want to convert my week to club points - vs - renting and getting the cash and then having the flexibility to just go to Marriott and pay cash? Seems like less of a headache then worrying about using every single club point over the course of 2 years.

Thoughts?

[I don't have access to Interval yet - so unclear if their math is more advantageous - would appreciate any thoughts on this option too]

Choice B should actually be deposit your week into II for exchange. You can’t convert it to ‘interval points’.
You can potentially exchange the week to any resort in II’s catalog on any date available and you can also potentially upsize for $99 per step if a larger unit is available. The deposit is good for 2 years. Of course exchanges aren’t guaranteed but the potential to trade up exists.

If you converted your week to destination points and use the points to directly exchange on II you are tied to a set number of points for unit size and week TDI and can’t exchange to abound properties.
The other option is to have MVC convert the points to a week to deposit into II to trade to non abound properties.
I cant think of a reason why anyone would take this route unless they elected points and then couldn’t use them.

 

[TheTimeTraveler]

We recently purchased a week in Aruba at Ocean Club with annual fees <$1,500. We were advised we could convert the 1 br gold week for 2050 points. That basically equates to 1.36 points per annual fee $s.

While we will usually be using this week in Aruba every year, I have been thinking through how we will handle years where we can't use the property - or - want to travel elsewhere:
a) Convert to destination club points
b) Convert to interval international points
c) Rent on Redweek/TUG/elsewhere

To assess 'a' I took a look at the 2023 club point charts and the member $$ cost for some properties on Marriot.com.
4 nights in February @ Orlando Grand Vista: 1,125 club points or $1,125 (w/ taxes)
4 nights in June @ Williamsburg Manor Club: 800 club points or $908 (w/ taxes)
4 nights in June @ Palm Desert Shadow Ridge: 540 club points or $872 (w/ taxes)

This adds up to 2,465 club points or $2,905 (w/ taxes).

To assess the value I added 415 club points to my current amount (2,050) for a total of 2,465 club points. Assuming my annual fees were at the current 1.36X rate I would see my annual fees go up from $1,500 to $1,812.

This would lead to an annual savings of ~$1k by using the club points - vs - paying cash. [Yes, I know I made an initial purchase in the timeshare week - but ignoring for this analysis for now]

On Redweek it looks like the average range is ~$2,500-$2,800 depending on the week (I saw one July 4th for $3k, but unclear if it'll rent). This would give me $1k, or a little more, than my annual fees, and I can keep the cash.

If this all makes sense, is there any reason I would want to convert my week to club points - vs - renting and getting the cash and then having the flexibility to just go to Marriott and pay cash? Seems like less of a headache then worrying about using every single club point over the course of 2 years.

Thoughts?

[I don't have access to Interval yet - so unclear if their math is more advantageous - would appreciate any thoughts on this option too]

I'm curious if you were provided with the correct information. Who advised you that you are able to covert to Destination Points? Do you know this as a fact?



.

 

[DanCali]

I'm curious if you were provided with the correct information. Who advised you that you are able to covert to Destination Points? Do you know this as a fact?



.

Sounds like it was a developer purchase. Those get enrolled in Abound.

 

[TheTimeTraveler]

I know many private sellers assume the points go with the sale of the week and some folks get stuck with those purchases (i.e. no points at all when the sale is done).



.

 

[Dean]

We recently purchased a week in Aruba at Ocean Club with annual fees <$1,500. We were advised we could convert the 1 br gold week for 2050 points. That basically equates to 1.36 points per annual fee $s.

While we will usually be using this week in Aruba every year, I have been thinking through how we will handle years where we can't use the property - or - want to travel elsewhere:
a) Convert to destination club points
b) Convert to interval international points
c) Rent on Redweek/TUG/elsewhere

To assess 'a' I took a look at the 2023 club point charts and the member $$ cost for some properties on Marriot.com.
4 nights in February @ Orlando Grand Vista: 1,125 club points or $1,125 (w/ taxes)
4 nights in June @ Williamsburg Manor Club: 800 club points or $908 (w/ taxes)
4 nights in June @ Palm Desert Shadow Ridge: 540 club points or $872 (w/ taxes)

This adds up to 2,465 club points or $2,905 (w/ taxes).

To assess the value I added 415 club points to my current amount (2,050) for a total of 2,465 club points. Assuming my annual fees were at the current 1.36X rate I would see my annual fees go up from $1,500 to $1,812.

This would lead to an annual savings of ~$1k by using the club points - vs - paying cash. [Yes, I know I made an initial purchase in the timeshare week - but ignoring for this analysis for now]

On Redweek it looks like the average range is ~$2,500-$2,800 depending on the week (I saw one July 4th for $3k, but unclear if it'll rent). This would give me $1k, or a little more, than my annual fees, and I can keep the cash.

If this all makes sense, is there any reason I would want to convert my week to club points - vs - renting and getting the cash and then having the flexibility to just go to Marriott and pay cash? Seems like less of a headache then worrying about using every single club point over the course of 2 years.

Thoughts?

[I don't have access to Interval yet - so unclear if their math is more advantageous - would appreciate any thoughts on this option too]

I'm not sure I agree with your information. IMO none of those options you listed are reasonable assuming they are for studios. IMO your best options are to use your week and if not, join II and exchange as 2 weeks using the lock off feature. Doing so should get you much better options. All the 4 night options are easy exchanges for 7 nights. Ignoring your up front and yearly fees which are already built in for you now, you could get 2 weeks in a 1 BR at those times and location for around $550 (II membership, 2 exchange fees and 1 upgrade studio to 1 BR). Add another $100 per unit to potentially get 2BR exchanges. I would agree that you are over valuing the above options. I would not take points in your situation. Learning to use II well will be your friend.

 

[MrbeanOnVacation]

Your numbers are not wrong. It's just what makes sense to you. With your $1.36 rate, it seems your best options are what you listed. Normally i would rent out my points and take cash and not have to worry about either. It's much easier to rent out points than weeks but for you, that's a losing proposition.

I think the unknown variable to me is how easy is it to rent your week. Gold week provides a limited window. What happens if you don't get it rented? I find I get the most value by using my weeks and/or points wherever possible. In your situation, I'd probably exchange for points and then rent additional points and then visit where I want. Not as flexible as cash but that is what works for me.

Thanks @StevenTing - yea, I am unclear how quickly I could rent out the Gold week (I guess it depends on if I can secure a "hot week" - e.g. July 4th weekend). I have a feeling it may take me several years to learn how to optimize this process and get a better feel for managing.

I'm curious: Where do you typically rent out your destination club points? What is your typical avg amount per point?

 

[MrbeanOnVacation]

I am not a fan of comparing to cash values on marriott.com since those are not necessarily prices I would be willing to pay myself and they don't account for possible discounts like MVC owner discount, AAA discount etc.

A better comparison is to compare to the rental value of points (vacationpointexchange.com) which is currently around $0.70/point. In this case, your 2050 points are worth about $1400. Renting a week is somewhat less convenient than renting points, but if you can get $1800+ for your week you'd probably be leaving too much money on the table to just elect points. In other words, take the rental value of the week and divide by the number of points you can elect. If that is substantially higher than $0.70 (point rental value) then electing points makes less sense.

I go through a similar analysis with my weeks. I would rather rent NCV Platinum weeks if I can secure a summer reservation, but I'm more inclined to elect points for other weeks that have a lower rent/point value)

Thanks @DanCali - that makes a lot of sense and simplifies the analysis. However, I do hope I'll be able to also keep a running log of what the "retail" cash price likely would've been if I didn't have this timeshare so I can compare over the next several years and prove/disprove this makes financial sense.

We were encouraged when we were in Aruba last week and all the decent hotels around us were asking $550-$850/night, and weren't as nice as what we had for our family. That tipped the scales for us to help ensure we can have quality family time there for a week (when we want to go) and the annual price delta would pay off the timeshare investment in ~7 years.

 

[MrbeanOnVacation]

Choice B should actually be deposit your week into II for exchange. You can’t convert it to ‘interval points’.
You can potentially exchange the week to any resort in II’s catalog on any date available and you can also potentially upsize for $99 per step if a larger unit is available. The deposit is good for 2 years. Of course exchanges aren’t guaranteed but the potential to trade up exists.

If you converted your week to destination points and use the points to directly exchange on II you are tied to a set number of points for unit size and week TDI and can’t exchange to abound properties.
The other option is to have MVC convert the points to a week to deposit into II to trade to non abound properties.
I cant think of a reason why anyone would take this route unless they elected points and then couldn’t use them.

@Pamplemousse - thanks for clarifying II's process. I was under the impression the way the flow worked:
1. I secure my week with MVC (hopefully a hot week, like July 4th)
2. I deposit my week and get II points based on the value of my week (I saw in TUG a table that showed the value assuming I deposit ~1 year out based on demand value index)
3. I either exchange or put in a request, which is hopefully matched within 2 years (before I lose the II points). Through this exchange/request process I have opportunity to "step up" as you mention for $99, which is an amazing value add (if successful).

It sounds like this isn't right and I need to read more/watch more II videos.

 

[MrbeanOnVacation]

Sounds like it was a developer purchase. Those get enrolled in Abound.

@TheTimeTraveler - @DanCali is correct

 

[Fasttr]

I'm curious: Where do you typically rent out your destination club points? What is your typical avg amount per point?

www.vacationpointexchange.com

 

[jwalk03]

I'm not sure I agree with your information. IMO none of those options you listed are reasonable assuming they are for studios. IMO your best options are to use your week and if not, join II and exchange as 2 weeks using the lock off feature. Doing so should get you much better options. All the 4 night options are easy exchanges for 7 nights. Ignoring your up front and yearly fees which are already built in for you now, you could get 2 weeks in a 1 BR at those times and location for around $550 (II membership, 2 exchange fees and 1 upgrade studio to 1 BR). Add another $100 per unit to potentially get 2BR exchanges. I would agree that you are over valuing the above options. I would not take points in your situation. Learning to use II well will be your friend.

I think from the orginal post he bought a 1BR at Ocean Club- so no lock-off option.

 

[Pamplemousse]

.

@Pamplemousse - thanks for clarifying II's process. I was under the impression the way the flow worked:
1. I secure my week with MVC (hopefully a hot week, like July 4th)
2. I deposit my week and get II points based on the value of my week (I saw in TUG a table that showed the value assuming I deposit ~1 year out based on demand value index)
3. I either exchange or put in a request, which is hopefully matched within 2 years (before I lose the II points). Through this exchange/request process I have opportunity to "step up" as you mention for $99, which is an amazing value add (if successful).

It sounds like this isn't right and I need to read more/watch more II videos.

There is no way to get “II points”.

You reserve your home week and either stay in it, deposit it into II and exchange for another week within 2 years, or rent it yourself (once deposited into II you can no longer rent). You can exchange your week into abound resorts and may be able to upsize for a fee if a larger unit is available.

Or you elect your enrolled week to vacation club points and use them on abound, use them to exchange directly on II to a non about resort according to the points chart based on size/TDI.
Or you could have MVC convert the points (per the chart on MVC under use points, interval international) to a week deposited into II and do a week exchange to a non abound resort within 2 years.

 

[MrbeanOnVacation]

.


There is no way to get “II points”.

You reserve your home week and either stay in it, deposit it into II and exchange for another week within 2 years, or rent it yourself (once deposited into II you can no longer rent). You can exchange your week into abound resorts and may be able to upsize for a fee if a larger unit is available.

Or you elect your enrolled week to vacation club points and use them on abound, use them to exchange directly on II to a non about resort according to the points chart based on size/TDI.
Or you could have MVC convert the points (per the chart on MVC under use points, interval international) to a week deposited into II and do a week exchange to a non abound resort within 2 years.

@Pamplemousse

Maybe the points are behind the scenes? I see them referenced in II's user guide: link to guide.

I assumed if I secured a high value week I would get 2,750 "points" for my 1 bedroom, and then would leverage this to know if I could get another unit as an exchange (e.g. I could exchange but only if the other unit was <2,750 points).

Maybe you're just trying to stress it's not like typical point systems where you can use the points in chunks (e.g. I split the 2,750 points to get multiple cheap units), but rather it's just a way to assess the value of the unit for an exchange?

 

[jwalk03]

@Pamplemousse

Maybe the points are behind the scenes? I see them referenced in II's user guide: link to guide.

I assumed if I secured a high value week I would get 2,750 "points" for my 1 bedroom, and then would leverage this to know if I could get another unit as an exchange (e.g. I could exchange but only if the other unit was <2,750 points).

Maybe you're just trying to stress it's not like typical point systems where you can use the points in chunks (e.g. I split the 2,750 points to get multiple cheap units), but rather it's just a way to assess the value of the unit for an exchange?

View attachment 68713

This chart is the number of points you are required to deposit in order to book particular intervals. Not the other way around. If you deposit Marriott points to Interval you can only use them to exchange into NON Marriott resorts.

 

[sponger76]

@Pamplemousse

Maybe the points are behind the scenes? I see them referenced in II's user guide: link to guide.

I assumed if I secured a high value week I would get 2,750 "points" for my 1 bedroom, and then would leverage this to know if I could get another unit as an exchange (e.g. I could exchange but only if the other unit was <2,750 points).

Maybe you're just trying to stress it's not like typical point systems where you can use the points in chunks (e.g. I split the 2,750 points to get multiple cheap units), but rather it's just a way to assess the value of the unit for an exchange?

View attachment 68713

The chart you're looking at is only for those who have MVC (DC/Abound) points that they want to use in II. Depositing weeks is completely different and has nothing to do with points. The only thing that is somewhat relevant to using weeks that you see on the chart is the TDI, and TDI isn't the only factor that comes into play when it comes to exchanging weeks.

 

[Dean]

I think from the orginal post he bought a 1BR at Ocean Club- so no lock-off option.

Thanks, I misread it.

 

[Pamplemousse]

This chart is the number of points you are required to deposit in order to book particular intervals. Not the other way around. If you deposit Marriott points to Interval you can only use them to exchange into NON Marriott resorts.

Almost.
But here’s the thing- you do not deposit vacation club points into II.
You can use them directly to make an exchange and that is what the chart Mr. Bean is showing is for- how many VC points it costs to book a unit in that season/unit size on II.
When you search on II you have to specify how many VC points you want to use.
MVC and II computers are not linked and II is not holding your VC points (not deposited)- II needs to actually confirm with MVC that you have the points when you make an exchange.
You could think of this like doing a “request first“ with a week- it’s still yours until the exchange is confirmed, nothing is deposited. And you can do a request first with the VC points on II too.
@MrbeanOnVacation the chart is not an indication how many VC points you get if you elect points and you never get “interval points”.

If a points owner chooses to deposit into II then MVC converts the VC points to a week and deposits into II and it is exchanged like any other week. They are not depositing points into II or doing a points exchange. The chart is the same as the one you show, only now you are converting your VC points to a deposited week. It will show up in your II account as Marriott Destination club low season studio or whatever you chose.
This is a good thing because a points exchange is a straight up transaction- you spend 1000 points and get a low season studio. With a week you can exchange for anything that you can see- for example you could exchange a low season studio into a 2bedroom mid season unit by just paying the upsize fee (waved at less than 60 days).

Believe me I know this is confusing- if I hadn’t done it myself I doubt I would understand it- but I have so I do.

 

[drlee]

I own a gold week in Aruba, 2br. We lock it off and deposit both units into Interval and over the years we have had many fabulous vacations. We have traded into Maui, Kuai, Myrtle Beach, several Orlando properties, Hilton Head, and Newport Beach. We have been lucky to get some fantastic upgrades (ie the studio in Aruba for a two bedroom ocean view in Myrtle Beach), one bedroom units back to back in Maui, and many others. We would never exchange these weeks for points, as they would not get us the availability we get with an interval trade. I think my unit in Aruba is worth 2575 points, which wouldn't get me a week anywhere I mentioned. So, the process to lock off and deposit is easy, you can do both on the website (reserve, lock off and then deposit) or you can have an agent do it. There is no cost to do this as long as you have a destinations account.

 

[HudsHut]

Gold weeks at Aruba Ocean Club are 18 - 49.
II's TDI chart shows that weeks 26 - 31 have the highest Travel Demand Index (TDI) of 120. I would definitely aim for the 4th of July holiday week, but if it weren't available, then try for any of the others in this range.

Typically, you would want to reserve the 4th of July week exactly 1 year in advance.

 

[MrbeanOnVacation]

Believe me I know this is confusing- if I hadn’t done it myself I doubt I would understand it- but I have so I do.

Thanks @Pamplemousse - yea, it's very confusing

I think after I start using II it'll start to make more sense to me. The language in the documentation is part of the problem (IMHO). On page 4 I see this link:

]
Fixed-week owners can relinquish their week directly to Interval for an allotment of Club Interval Points. Generally, floating-week owners must first contact their home resort to secure a reservation and then relinquish that week to Interval for their allotment of points.

The on page 5 a graphic showing how you can convert your week directly or put into their points.

So yea - very confusing. And I apologize to the other forum members, because I think the title of my post suggested I had points. I have a week that "can" be converted to MVC Destination Points... but that is just an option. That's why I thought 'b' (convert to II points) was a legit option.

 

[MrbeanOnVacation]

I own a gold week in Aruba, 2br. We lock it off and deposit both units into Interval and over the years we have had many fabulous vacations. We have traded into Maui, Kuai, Myrtle Beach, several Orlando properties, Hilton Head, and Newport Beach. We have been lucky to get some fantastic upgrades (ie the studio in Aruba for a two bedroom ocean view in Myrtle Beach), one bedroom units back to back in Maui, and many others. We would never exchange these weeks for points, as they would not get us the availability we get with an interval trade. I think my unit in Aruba is worth 2575 points, which wouldn't get me a week anywhere I mentioned. So, the process to lock off and deposit is easy, you can do both on the website (reserve, lock off and then deposit) or you can have an agent do it. There is no cost to do this as long as you have a destinations account.

@drlee that is great news and very encouraging (and making me wish we had gotten a 2BR - we opted for the 1BR at Ocean Club). I'm curious: Do you have other properties that enable you to reserve weeks 13 months out? Or also just one so limited to 12 months out? Have you ever had problems reserving for the week you wanted? I'm reading about people waiting until midnight to jump on reservations... wouldn't be ideal, so curious what your real-world experience is?

 

[MrbeanOnVacation]

Gold weeks at Aruba Ocean Club are 18 - 49.
II's TDI chart shows that weeks 26 - 31 have the highest Travel Demand Index (TDI) of 120. I would definitely aim for the 4th of July holiday week, but if it weren't available, then try for any of the others in this range.

Typically, you would want to reserve the 4th of July week exactly 1 year in advance.

Thanks so much for posting this. This was what I was also checking out. Looks like I have a little wiggle room for the ideal timing, but based on my redweek analysis July 4th is the most desirable (if I can get it )