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Discounted Maintenance Fees for Larger Point Volumes

wyatt-wyatt

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I've noticed that some points-based timeshare Companies provide substantial maintenance fee discounts for memberships with larger volumes of points. For example, at Club Melia a 40,000 option membership ("options" mean "points" in Melia language) often has total annual fees of around $850. Amazingly, a membership at the same home resort with double the options (80,000) often only charges total annual fees of around $950 (i.e. ~$100 more). Some of the "discount" in cost per point can likely be accounted for by the fact that part of the total annual costs is a network fee, which stays at the same level $100 to $200 level regardless of how many options are associated with the membership. That said, this still doesn't account for the entire difference.

Perhaps Melia structures its memberships this way to convince people to buy memberships with larger options (notably, the upfront purchase price of larger memberships is quite high, so perhaps they make their money on the initial purchase, rather than higher maintenance after that). Whatever the reason, the resulting effect is that when buying resale (where the purchase price is often low), there is a substantial advantage (in a bang for the buck sense) to buying larger memberships, rather than smaller.

In contrast, Wyndham doesn't seem to offer a substantial discount for larger memberships. The annual maintenance fee for a membership with 300,000 annual options is only marginally less than twice the membership of one at the same home resort with 150,000 options. The effect of this is that (assuming one doesn't need to travel every year) it appears to make just as much, if not more, sense to buy a smaller membership, and then (if necessary) bank points over a few years to pay for any big trip one wants to take.

Perhaps I am mistaken in noticing this difference between Wyndham and Melia, but it got me thinking, are most other major points-based timeshares (Marriott, Hilton, Hyatt, Sheraton/Westin, etc.) in the Wyndham camp (charging the same maintenance fees per point no matter how many points are owned) or the Melia camp (charging a lower maintenance fee per point for higher point memberships, so that the annual maintenance for the larger memberships is only slightly higher than for the smaller memberships)?

My gratitude for anyone who can shed light on this subject.
 

MichaelColey

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Perhaps it's a scheme so that the developer (which probably owns a bunch of unsold inventory) doesn't have to pay as much?
 

PamMo

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Many systems have different point values for a unit, depending on season or view, but the MF's are exactly the same. For example, a 2BR unit at a Hilton resort can be worth 2,500, 3,500, 5,000 or 7,000 points, depending on what week you own. Starwood, Hyatt, Marriott, and others also have seasonal differences. Usually, buying a larger unit in a prime season will give you a better ratio of MF's to points.
 

alexadeparis

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Shell is similar to the Melia scenario, the more points you have in the same club, the cheaper they get. But as others have pointed out - some units require more points. The way I keep track of it is by calculating unit cost per week by multiplying the amount of points used for a week times the MF per point, to get my true cost. As long as I am less than $850 a week, I am usually happy.
 

ronparise

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If you buy your points from the developer. Wyndham does offer discounts to the large purchases...reservations made at the last minute get a 25%, 35% or 50% points discount when making reservations

What you describe sounds similar to the fixed weeks resorts where the owners of prime red season weeks pay the same mf as the owners of the blue weeks. Its been said that the blue week owners subsidize the red week owners. and its why some of these resorts have so many defaults

In both cases (your example and the red week vs blue week example) its much like George Orwell put it in "Animal Farm" All animals are equal, but some are more equal than others"

These discounts are just not right, and will backfire on the resort, unless they are used to encourage owners to take over weeks in the ownership of the hoa (foreclosures)
 

ampaholic

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This variation in the cost of points from smaller accounts to larger accounts is pandemic in the TS universe.

As an example: In RCI Points you can own a two bedroom at VV@P and pay $734. for 55,500 points, $734 for 74,000 points or $734 for 92,000 points.

Just do the math to see the different costs per point.

These tiers at a supposedly "all red" (non seasonal) timeshare are silly.

Awaywego recently got rid of a 55,500 one to get a 74,000 one and then got a 92,000 one and gave away the 74,000 one --- very smart on Alan's part.

But eventually this can come back to bite the resort in the behind as the 55,500 ones and even to a degree the 74,000 ownerships become less and less in demand.
 

geekette

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Bluegreen has lower per point maint the more you own. It's an incentive to upgrade, IMO.
 

wyatt-wyatt

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The thing I find striking about Melia was that the discount in maintenance fees for large point volumes is so high that if one could acquire a large point membership without paying a lot up front (its of course a big if, even re-sale), it would actually prove an amazing value over the years. It sounds like some of the other smaller programs have a similar arrangement. However, am I correct that Wyndham (and the other hotel chain clubs, Marriott, Hilton, Hyatt, Sheraton/Westin) offer only marginal discounts for larger point volumes so that these larger memberships are less of a "screaming" deal.

I'd be interested to put together a list of the vacation clubs that are like Melia, since it might make sense to stay on the lookout for a deal that is too good to pass up.
 

wyatt-wyatt

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List of Programs with substantial MF discounts for larger memberships

So to start the list (which I am glad to keep updated):

(1) Programs where total MF’s are not higher (or very little higher) for memberships with large volumes of points (if # of points is doubled, marginal increase in total MF is less than 25%):

Melia
Shell
VV@P (what do these initials stand for?)

(2) Programs that offer a substantial (but not massive) MF discount to memberships with higher #’s of points (if # of points is doubled, marginal increase in total MF is more than 25% but less than 75%):

Blue Green (?)

(3) Programs where total MF’s are significantly higher for larger point volumes (if # of points is doubled, marginal increase in total MF is 75% or more):

Wyndham
Disney?
Others? (Marriott, Hilton, Hyatt, Starwood?)
 
Last edited:

wyatt-wyatt

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Can anybody add to this list?

So to start the list (which I am glad to keep updated):

(1) Programs where total MF’s are not higher (or very little higher) for memberships with large volumes of points (if # of points is doubled, marginal increase in total MF is less than 25%):

Melia
Shell
VV@P (what do these initials stand for?)

(2) Programs that offer a substantial (but not massive) MF discount to memberships with higher #’s of points (if # of points is doubled, marginal increase in total MF is more than 25% but less than 75%):

Blue Green (?)

(3) Programs where total MF’s are significantly higher for larger point volumes (if # of points is doubled, marginal increase in total MF is 75% or more):

Wyndham
Disney?
Others? (Marriott, Hilton, Hyatt, Starwood?)
 

wyatt-wyatt

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Larger Timeshares a Bargain

UPDATE: I posted a question on the Marriott bulletin board and was told that Marriott charges maintenance fees of $0.41 per point no matter how many annual points a membership has. Thus, I have updated the master list (below) to reflect this.
In a side note, this list seems quite relevant to me for a number of reasons. For example, the large units that benefit from company policies that offer substantial maintenance fee discounts for larger units may represent significant value in a “bang for the buck” (or # of vacation days per $) sense, and accordingly these units could represent bargains on the re-sale market if available at the right price. Thus, for anyone who is interested in acquiring a timeshare or even anyone just interested in learning more about the overall timeshare “universe,” this list could be a valuable resource.

Here’s the updated list:

(1) Programs where total MF’s are not higher (or very little higher) for memberships with large volumes of points (if # of points is doubled, marginal increase in total MF is less than 25%):

Melia
Shell
VV@P (what do these initials stand for?)

(2) Programs that offer a substantial (but not massive) MF discount to memberships with higher #’s of points (if # of points is doubled, marginal increase in total MF is more than 25% but less than 75%):

Blue Green (?)

(3) Programs where total MF’s are significantly higher for larger point volumes (if # of points is doubled, marginal increase in total MF is 75% or more):

Marriott
Wyndham
Disney?
Others? (Hilton, Hyatt,
 

gnorth16

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HGVC MF's are based on the unit size. The MF's for a 2BR (at the same resort) are the same for all seasons, Platinum, Gold and Silver. However the better the season, the higher the associated points. So in turn, a platinum 2BR would get you 7000 points (higher for OV and OF) for the same MF's as a Gold 2 BR or 5000 points.

A platinum is higher upfront cost, but a better point to MF ratio.
 

wyatt-wyatt

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HGVC MF's are based on the unit size. The MF's for a 2BR (at the same resort) are the same for all seasons, Platinum, Gold and Silver. However the better the season, the higher the associated points. So in turn, a platinum 2BR would get you 7000 points (higher for OV and OF) for the same MF's as a Gold 2 BR or 5000 points.

A platinum is higher upfront cost, but a better point to MF ratio.


I am not familiar with the details of the HGVC points system. To make sure I am clear, if someone has a platinum 2BR (7000 points), they would be able to use these points to book a larger unit (or multiple units) during a gold season correct?

Thus, disregarding up front costs, if one was looking for the greatest "bang for buck" HGVC unit on the resale market, what should one look for? (This gets to the respective importance of season vs. home resort vs. # of points).
 

gnorth16

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I am not familiar with the details of the HGVC points system. To make sure I am clear, if someone has a platinum 2BR (7000 points), they would be able to use these points to book a larger unit (or multiple units) during a gold season correct?

Thus, disregarding up front costs, if one was looking for the greatest "bang for buck" HGVC unit on the resale market, what should one look for? (This gets to the respective importance of season vs. home resort vs. # of points).

You are correct with the first part. Points are points, except when it comes to high demand times. I only wish I could get a spring break week at HHV in Honolulu with my Vegas points. Not gonna happen! the flexibility of HGVC is great but if you want to go to HHV every year, buy your points there. If you may never go there or may only go once (me) buy your points where there is the lowest MF's - currently Las Vegas Strip and be flexible when it comes to Hawaii or ski weeks in Colorado.
 
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