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Definitive (I believe) answers to some important points program questions

Dave M

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Updated as of 10:00 a.m. EDT June 30, 2010

Earlier today (June 29) I had a conversation with a high-ranking and knowledgeable corporate officer regarding some questions that either have not had good answers here or that I missed or that are still being responded to incorrectly by posters on this forum.

I submitted some questions in writing last Thursday and added some more over the weekend. Customer Advocacy assigned a specific officer to discuss the questions with me, knowing of my involvement here on the Marriott forum and approving publication here of the responses. If I get any of what he said wrong, I'm sure he will correct me. However, I have a lot of confidence in his answers.

Further, I can have further dialogue with this individual as appropriate. I promised that I would not bother him with every question posed here on TUG, especially where it appears that there aren't perfect answers (e.g., Why are more points required to reserve a week at my resort than what I received?) or where the questions have already been adequately answered on this forum.

If I get more info, I will edit this initial post, either adding to the Q&A here or linking to other threads. This thread does not take the place of what eventually will be a guide to the new program in the FAQs for this forum.

With that intro, here goes (The response wording is mine.):

Who will pay for additional housekeeping and any other new expenses at my home resort that are necessitated by the new points program (e.g., for short stays)?

Marriott response: An amount (not disclosed to me) for such expenses has been built into the $.40 MF per point that new points owners will pay. It's not clear what the amount of such additional expense will be. It depends on how many short stays there are, whether the rest of those weeks go unused or are used for other short stays, etc. In some cases, expenses might actually go down because a resort might be able to get by with fewer housekeeping personnel, some of whom work all week instead of only on weekends. The resort will be responsible for calculating and presenting to the administrators of the points trust the amount that the resort is owed. If you attend an HOA board or annual meeting in early 2012 or later, feel free to ask how your resort is affected.

If I Enroll my week(s) in the new program, will I have direct online access to II, just as I now do?

Marriott's response: Yes, yes, yes. You will be able to search for available II inventory even though you have an ongoing exchange request in place. You will also be able to search for Flexchange opportunities, just as you do now. Marriott is committed to giving current owners the same opportunities they have now. However, if you are concerned about the accuracy of that promise, simply keep your current II account until you are sure.

Edited to add: Unfortunately, Marriott did not anticipate the demand that we have for seeing available inventory online when using one of the new II accounts. Thus, they are scurrying to fix their software so that they can fulfill the commitment to give us that online access. It will happen.

Will II's Comparable Exchange methodology apply to Marriott's requests to confirm exchanges through II for points owners, just as it does to us as existing weeks owners?

Marriott's response: Yes. II is a separate profit-making company and is not owned by Marriott. Marriott has no contract with II that would give Marriott the right to "raid" weeks in II inventory (Dave M note: as has been postulated by many here on TUG). Instead, Marriott will be requesting exchanges, just as we do. Marriott will have to offer "Comparable Exchange" weeks to get what it wants. If Marriott offers II too many top weeks to get so-so weeks in exchange, it will be impossible for Marriott to adequately serve its points owners.

Additionally, note that if Marriott wants a week from II, it will give II one in exchange. So if one week isn't there for us to exchange into, another “comparable” one will be.

There might actually be more II inventory eventually. With the non-resort stay options (e.g., cruises and Explorer program) offered in exchange for points, there may be more weeks in the trust that stay in Marriott’s hands and go unused. Certainly, Marriott can rent some of them. But as anyone who has been rejected by Marriott's rental program can infer, Marriott will have excess weeks that it will deposit into II. Those weeks are in addition to the weeks Marriott will deposit to get its exchanges for points owners.

There is conflicting wording in the various documents on the website regarding whether current owners will pay II fees if they enroll in the points program. Would you please clarify?

Marriott's response: There is some language in the II Buyers Guide (for Enrolled Owners) that erroneously states that Enrolled Owners will pay $109 for an internal Marriott-to-Marriott exchange. That wording will be corrected.

Bottom line? If you enroll, you will still pay fees for non-Marriott exchanges, but not for Marriott-to-Marriott exchanges where the only requested resorts are Marriotts.

Will Enrolled Owners still be entitled to Accommodation Certificates when depositing a week that II wants? Also, will exchangers still enjoy the Marriott 24-day internal exchange priority?

Marriott's response: Yes to both questions. II will still need those prime weeks. Thus, it's up to II as to which weeks it will offer an AC for or whether it will offer 2-for-1 or other specials. No change to the Marriott internal priority rules.

As a footnote, there are a ton of owners who don't want to have to deal with II, in part because they don't know how to use II effectively. We know this from the many posts here at TUG on that topic. Those people, as Enrolled Owners, can now use an Owner Services rep to handle everything and might not get an AC. We know to wait until II offers an AC before depositing, so we can still "work" the system.

As an Enrolled Owner, will I still have the same 13-month access to multiple week (concurrent or consecutive weeks) reservations that I do now?

Marriott's response: Yes. Further, the available inventory at 13 months for all who seek to reserve (including Marriott on behalf of points owners) will still be limited to 50% of the weeks available at a resort for any single week of the year. Thus, at least 50% of weeks will still be available at 12 months.

Edited to note that reserving a week should be as easy for us as in the past. Just as in the past, Marriott (and now points purchasers) will have the ability to reserve weeks that Marriott owns and puts into the points trust and weeks given up by those who trade for Marriott Rewards points. In addition, those current weeks' owners who enroll and trade their weeks for points give Marriott / points owners another shot at reserving weeks. However the total number of weeks that points owners can reserve is limited to those categories, unless I have missed one. There will be enough weeks available in our seasons for all weeks owners to reserve a week.

Also, see posts #60 and #61 in this thread for a more detailed explanation of my view of why we should generally have the same success in trying to resereve weeks at our home resorts as we do now.

There are various scenarios under which there could be more inventory available at 13 months and 12 months than there is now. Some of these scenarios have been discussed in other threads, but they include the point that it takes a lot of points (did I say skimming?) to reserve a prime week.

Can a points purchaser rent weeks obtained with point?

Marriott's response: Casual rentals by a points owner will be allowed. The language in the documents that prohibits commercial activity is to prevent the type of activity that often happens currently with owners of multiple weeks whereby they call in at 13 months, reserve many of the best weeks and then put them up for rent as a commercial enterprise.

Note: Whether rentals constitute commercial activity will be decided on a case by case basis. But renting a week or two will definitely not be a problem.

* * * * *

As stated above, I will edit this post and add to the thread as appropriate.

See posts #45, 60 and 61 in this thread for my latest follow-up and for my responses to a few questions posed later in this thread.
 
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qlaval

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Thank you very much Dave for these "directly from the Marriott's mouth" answers... :)
 

BocaBum99

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Thanks Dave. Good job. It's good to get specific answers to questions where we can get them.

The only thing I would question is whether or not Marriott is treated just like another owner for exchange purposes. I seriously doubt that Marriott will just be given an account where they place requests based on deposits. At a minimum, they won't be receiving ACs for deposits. That in itself is a difference.

More likely, there will be exchange departments who contact each other to compare lists of exchange requests and make trades based on a table of pre-determined like kind exchanges.

In any such arrangement, they may do it once per day to fulfill requests. My guess is it happens prior to general release of inventory by II into the system for exchange to maximize internal exchanges prior to external exchanges.
 

hotcoffee

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Thanks Dave. Good job. It's good to get specific answers to questions where we can get them.

The only thing I would question is whether or not Marriott is treated just like another owner for exchange purposes. I seriously doubt that Marriott will just be given an account where they place requests based on deposits. At a minimum, they won't be receiving ACs for deposits. That in itself is a difference.

More likely, there will be exchange departments who contact each other to compare lists of exchange requests and make trades based on a table of pre-determined like kind exchanges.

In any such arrangement, they may do it once per day to fulfill requests. My guess is it happens prior to general release of inventory by II into the system for exchange to maximize internal exchanges prior to external exchanges.

I think it is possible that Marriott is saying what they have to say. They could not admit to any priority within II. However, not having any internal priority is still not a disadvantage in any way for points exchangers. That just puts them on an equal footing with everyone else. For the weeks exchangers, II is the only game in town. (I'm discounting other exchanging methods here because I assume a points exchangers could also take advantage of them.) But, for the points exchangers, they have the Trust inventory, the MRP exchange inventory, and the points-exchanged inventory from which to fulfill their request. That is why I am planning to capitulate to what I see as the inevitable advantage of points exchanging.
 

dualrated2

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:) Excellent. Now maybe some of the hysteria will subside. Thank you.
 

hipslo

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As an Enrolled Owner, will I still have the same 13-month access to multiple week (concurrent or consecutive weeks) reservations that I do now?

Marriott's response: Yes. Further, the available inventory at 13 months for all who seek to reserve (including Marriott on behalf of points owners) will still be limited to 50% of the weeks available at a resort for any single week of the year. Thus, at least 50% of weeks will still be available at 12 months.

Thanks so much Dave for posting, this is extremely helpful.

One question - the response as stated above suggests to me that, at 13 months, multiple weeks owners will be in direct, head to head competion with all premiere and premiere plus owners who seek to reserve prime weeks at 13 months, for the 50% of the inventory for each week that will be made available at 13 months, and that there will not be separate "pools" allocated to weeks and points owners at 13 months. Is that your understanding, or am I reading too much into the wording of the response?
 

JimIg23

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Thanks so much Dave for posting, this is extremely helpful.

One question - the response as stated above suggests to me that, at 13 months, multiple weeks owners will be in direct, head to head competion with all premiere and premiere plus owners who seek to reserve prime weeks at 13 months, for the 50% of the inventory for each week that will be made available at 13 months, and that there will not be separate "pools" allocated to weeks and points owners at 13 months. Is that your understanding, or am I reading too much into the wording of the response?

I could see you asking that to a Marriott Rep that just learned the program in three days, their head would be spinning! :D We probably know more about the program than 75% of the staff,,,,
 

billymach4

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Well Done.

Thanks to Dave, and Marriott Corp Exec for taking the time to iron out some of the details.

By the way.

It is my sincere belief that Marriott should reach out directly to this community. This method of communication is free to Marriott and Priceless to us Tuggers!
 

GregT

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Dave, thank you for the information, it is greatly appreciated.

Was there any perspective on the Bid/Ask spread and if there was a different way to view it than as a points skim?

Thanks very much,

Greg
 

LAX Mom

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Thanks Dave. The information you posted is very helpful.

I do have an additional question which I've asked Marriott reps in several phone calls. They did not know an answer to this:

We all know that resale weeks sold after June 20, 2010 cannot enroll in the points system. But what about resale points? If an individual purchases points from another individual do those resale points participate in the Marriott points program? If not, what can you do with your points should you decide you don't want them anymore?
 

5infam

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Thank you so much Dave - this clears some things up for me that were definitely in question.

Assuming all is correct, I still have a concern about having to battle Marriott for booking my regular week. As it stands now, I am technically up against all owners at my resort who own my season and unit size and view, for prime weeks. This system opens it up to points people as well who do not own there (say at the 13 month window or 12 month window) that I now have to compete with. As I book today, I get up and log on at 6:00am Pacific time, and make my reservation as fast as I can - knowing others may sleep in or log on after me etc. - which I am basically saying it is up to individual people to reserve their weeks. How will Marriott gain access to the same reservation system? Is it automated based on requests they put into the system prior to the 13 or 12 month window? If it is, then I may have no shot at a prime week, sometime in the future when there are enough points owners. Dave, if you can find this out, that would be great.

If I am wrong with my assumptions and this is a non-issue, then by all means let me know that too.

Thanks!!:D
 

urple2

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Thanks Dave for posting that info.

For many of us,not belonging to points may be the way to go. Especially, single resort owners or those that their point values appear ridiculous.

At this point, the only benefit I'm seeing ( so far ) would be to join points to leave the door open to purchase points on the resale market that could be added to my points account.

Have you heard anything about the resale of points?
 

m61376

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I would actually appreciate a little more definitive answer to reserving priorities. I also have been told what you were about the 50% 13 month/50% 12 month. While alluded to perhaps no one has definitively stated that points owners would only have access to the proportion of points or weeks converted to points for that year in the trust and week owners to the percentage of week ownership being used that year divided evenly among every reservation period (week/arrival dates). I would like it confirmed that each group would only have access to their fair share percentage of each week/arrival date, so that week owners would not be competing with point owners for premium weeks and home resort priority would be kept intact for week owners.
 

mas

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Thanks Dave, this kind of info is invaluable in the decision making process.

I think someone alluded to this above, but could you inquire with your source as to the possibility of having some sort of Marriott Concierge, similar to what Andrew offers on flyertalk?
 

IngridN

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I would actually appreciate a little more definitive answer to reserving priorities. I also have been told what you were about the 50% 13 month/50% 12 month. While alluded to perhaps no one has definitively stated that points owners would only have access to the proportion of points or weeks converted to points for that year in the trust and week owners to the percentage of week ownership being used that year divided evenly among every reservation period (week/arrival dates). I would like it confirmed that each group would only have access to their fair share percentage of each week/arrival date, so that week owners would not be competing with point owners for premium weeks and home resort priority would be kept intact for week owners.

This also jumped out at me. I am in the process of finalizing a resale of Aruba Surf Club Oceanfront. While the Surf Club is not sold out with available Marriott inventory for the points program, the Oceanfront view is sold out in all seasons. If points can compete with me at the 13 or 12 month mark when no one has relinquished their week for points, I would have a huge problem with that because conceivably, I would never be able to reserve a week in my season.

Ingrid
 

hotcoffee

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Dave, thank you for the information, it is greatly appreciated.

Was there any perspective on the Bid/Ask spread and if there was a different way to view it than as a points skim?

Thanks very much,

Greg

The Marriott rep with whom I have been talking is claiming that the difference was implemented to protect owners' rights. The logic: since existing owners will not use points to reserve, there will be less exchangers able to compete for the prime weeks due to their not having enough points. (Apparently, they are assuming that most enrollees will not purchase additional points.)
 

billymach4

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Thanks Dave, this kind of info is invaluable in the decision making process.

I think someone alluded to this above, but could you inquire with your source as to the possibility of having some sort of Marriott Concierge, similar to what Andrew offers on flyertalk?


Yes I am the someone. I agree that we should have a direct Marriott Presence here just like the FT people have.
 

hotcoffee

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This also jumped out at me. I am in the process of finalizing a resale of Aruba Surf Club Oceanfront. While the Surf Club is not sold out with available Marriott inventory for the points program, the Oceanfront view is sold out in all seasons. If points can compete with me at the 13 or 12 month mark when no one has relinquished their week for points, I would have a huge problem with that because conceivably, I would never be able to reserve a week in my season.

Ingrid

I don't think you would have anything to worry about here, Ingrid, because the only way for points exchangers to get an OF week (since they are sold out) would be for one to be exchanged (either through points exchanges or II exchanges). They cannot have more people competing than there are weeks. That would deny a deeded owner his right to use his week.
 
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