Do point systems allow developers to over-sell resorts?

[jdb0822]

I am curious about this. Say a resort is a fixed week system. There are 100 units and 52 weeks. So, the developer can sell 5,200 units/weeks.

But what about if that same resort was points instead. Lets say for the sake of arguement that all the units are 1 bedrooms and they all use 1,000 points per week to stay there. So, does the developer just sell 100,000 pts to that resort or do they just sell as many as they wish? Where would the limit be?

It seems to me that the developer could sell so many points to a particular resort that if all of the owners decided to book a week at that resort all in the same year, it would be impossible to accomodate them all. (assuming that they just wanted any week available, also I know this is a far-fetched scenario as many use points at othe places)

Am I wrong on this thinking?

 

[AwayWeGo]

Points, Shmoynts.

I am curious about this. Say a resort is a fixed week system. There are 100 units and 52 weeks. So, the developer can sell 5,200 units/weeks.

But what about if that same resort was points instead. Lets say for the sake of arguement that all the units are 1 bedrooms and they all use 1,000 points per week to stay there. So, does the developer just sell 100,000 pts to that resort or do they just sell as many as they wish? Where would the limit be?

It seems to me that the developer could sell so many points to a particular resort that if all of the owners decided to book a week at that resort all in the same year, it would be impossible to accomodate them all. (assuming that they just wanted any week available, also I know this is a far-fetched scenario as many use points at othe places)

Am I wrong on this thinking?

The total points values sold (or available for sale) & the total of the points-values of all the timeshare unit-weeks at the resort are spozed to match up & equal out.

In your illustration, the prime-season weeks might be sold for higher prices than the offseason weeks & those prime-season weeks would carry correspondingly larger points values. The offseason weeks are the flip side of that -- lower prices, smaller points-values.

The idea behind timeshare points is a way of balancing trade values more or less equitably, by contrast with the crapshoot of straight-weeks timeshare exchanges, figuring in unit size & amenities, location demand, high- or low- or mid-season, etc., as variables both for the points assigned to a particular unit-week and for the points value it takes to get an exchange reservation for that unit & week.

The overall shady reputation of the timeshare industry, however, makes it only natural to wonder whether underhanded dealings are involved in the business of selling timeshare points. For that, the timeshare companies have only themselves to blame.

It is high time for an all-new timeshare biz model based on Wal*Mart for developer sales & on CarMax for timeshare resales.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[timeos2]

The States monitor this

The State requires the disclosure statement spell out what they have to sell and how it will be sold. They do not get a blank check to sell as many points (or weeks) as they feel like. No difference between the two types of systems. Now when you start talking vacation clubs things change as they are not as regulated. Personally I also take a dim view of non-deeded trust type ownerships. But those are also limited as to what they can sell its the lack of protection for the buyer (no deed - no foreclosure required to terminate your ownership).

 

[e.bram]

in point systems are the MFs per point or per week?

 

[Bill4728]

in point systems are the MFs per point or per week?

It has to do with how you define a point system.

Some systems are pure points. You own only points and have no underlining week. ( like Worldmark or Club Intrawest) Then you pay by point or by point range.

Some systems are points but they have an underlining week which generates the points (like HGVC) Those systems you pay MFs based on the week you own.

 

[timeos2]

in point systems are the MFs per point or per week?

In "pure" points systems its by point. But many are hybrids where you own a week but assign it to the system annually for an allotment of points. In those cases the fees are based on the week plus the system overhead fee - not the number of points assigned.

 

[dcmoony]

My Maint Fees are the same as the weeks So I would say they charge by the week. As for the O.P. I have points but on my deed it shows week 22. So the resorts do track what has been sold.

 

[jlee2070]

In the Hilton (HGVC) point system, the owner is actually deeded a particular unit on a particular week but usage is by points... So while it's a Point System, it's controlled by a deed as is done with a Week System. I would hope this is how it's controlled.

I wonder if others do the same?

 

[Werner]

I believe that Hawaii has a rule that developers can only sell 51 weeks for each unit. In a pure points system they would presumably have the same restrictions with weeks translated to points. Hopefully, the bad old days of selling 60 or more weeks per unit are dead. Our deed lists a specific week and unit even though it is a float/float system. That makes it easy to keep track. The units and weeks have to add up to 51 X #units.

 

[Talent312]

The overall shady reputation of the timeshare industry, however, makes it only natural to wonder whether underhanded dealings are involved in the business of selling timeshare points. For that, the timeshare companies have only themselves to blame....

I'm reminded here of "The Producers" (Mel Brooks) -- remember "Springtime for Hitler," -- where a producer and his accountant oversell a B-way show that is so certain to fail, that none of the shareholders will expect to see a return on their investment. Unfortunately, the show's a hit...

In short, it pays to buy from the more reputable point-sytem purveyors, like major lodging companies.

 

[Kona Lovers]

In 2005 we were at a Shell Vacations Club presentation in Hawaii where we were told that they couldn't sell anymore West Coast Club points for new purchases until they opened the Vino Bello resort in the Napa Valley. If, however, you were already an owner in West Coast, you could buy more points.

Marty

 

[mishugana]

I believe that Hawaii has a rule that developers can only sell 51 weeks for each unit. In a pure points system they would presumably have the same restrictions with weeks translated to points. Hopefully, the bad old days of selling 60 or more weeks per unit are dead. Our deed lists a specific week and unit even though it is a float/float system. That makes it easy to keep track. The units and weeks have to add up to 51 X #units.

what happens to the other week?

 

[AwayWeGo]

Major Serious Cleaning & Sanitizing.

what happens to the other week?

The unsold week is when the unit is completely off-line for total shampooing & grooming & rubbing & scrubbing & polishing & spit-shining, etc., in ways that can't be done by the regular unit cleaning staff between occupants in the few hours between check-out & check-in all through the year.

-- Alan Cole, McLean (Fairfax County), Virgnia, USA.​

 

[Werner]

Yes, it's a maintenance week, upgrade week, etc. How they actually get used is not obvious but the intent is first to ensure that resorts are not oversubscribed and second to allow for some downtime.