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Former Wyndham employee whistleblower's statement:

rickandcindy23

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N THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF
DELAWARE, Plaintiffs STEVEN ERIC KIRCHNER, ELIZABETH LEE
KIRCHNER, and MARCIA RICHARDS, Individually and on behalf of all
persons similarly situated, Plaintiffs, vs. WYNDHAM VACATION RESORTS
INC., Defendant. No. 1:20-CV-00436-RGA-JLH Filed 7/15/2022
DECLARATION OF DANIELLE HENDERSON

Pursuant to 28 U.S.C. 1746, Danielle Henderson declares:
l . I was Vice President, Resort Operations with Travel + Leisure Co. (T L),
formerly Wyndham Destinations Inc., the parent company of Wyndham Vacation
Resorts Inc., until my departure from the company in April 2021. T + L is the
world's largest vacation ownership business. Club Wyndham is one of the brand
names of T + L.
2. I was with T + L for nearly 19 years and served on the Club Wyndham
Board of Directors before my position was abruptly eliminated, I believe my position
was eliminated because I brought an integrity concern to the CEO, Mike Brown,
regarding the Executive Vice President of Human Resources Kim Marshall and
General Counsel, Jim Savina. My concerns were validated by other colleagues prior
to my addressing it with CEO Mike Brown.
3. To provide background, I was a top performer and rcspcctcd leader within
the company. Some of my responsibilities included overseeing multimillion dollar
budgets, capital spending, quality controls, policies and procedures, systems, process
improvement, new technology for Resorts and insurance claim management for over
1 80 locations. During my tenure, I worked in many different divisions which
provided me with valuable experience and insight of how the business operates.
4. To date, I have not accepted a severance package and I revoked acceptance
of an offer made by T + L in August 2021. I am not receiving any compensation for
the information I am sharing with PlaintiffS in this case. Everything I am prepared to
testify about is common knowledge and documented within the organization. I
reviewed this lawsuit (which was public) and I believe that I can assist in explaining
a very complicated business model which will validate the PlaintiffS' claims. There
are also documents, databases, reports, emails, power point presentations, standard
operating procedures and training content that will validate my testimony.
5. I am prepared to testify that T + L improperly allocates and misappropriates
owner inventory for its own financial gain, which severely reduces the availability of
accommodations for owners. This is important because the Plaintiffs claim that they
are unable to find availability on the Club Wyndham owner website, but they can
find the exact same accommodations available when they searched on a third party
website like Expedia. T + L strategically decides which inventory (accommodations)
to make available for owners; it takes desirable inventory away from owners and
gives it to other "channels" that are profitable tör T + L and drive in new owners to
Club Wyndham.
6. I am prepared to testify that T L intentionally overbooks/oversells Resort
accommodations, which results in a reduction of what accommodations are available
for owners. Owners who have reservations for a specific unit type may not receive
what they booked because it will not be available due to overbooking of the property.
7. I am prepared to testify that T + L misuses fixed week invent01Y by
including it in its own inventory optimization strategy. It allows guests who are not
the owner of the fixed week unit to occupy the unit dining the owmer's fixed time.
Legally, fixed week units are to be held for the owner for the entirety of the stay. T+
L is not compensating the actual owner of the fixed week unit when they "borrow"
their inventory for another guest. This is important because it demonstrates how T +
L improperly manages the inventory and what is available for owners to use.
8. I am prepared to testiö/ that CEO Mike Brown is aware of seven Customer
Pain Points, onc of which is specific to inventory availability. Mike Brown created
this initiative and is responsible for its content. This is important because it
demonstrates T + L senior leadership is well aware of the availability issue and
continues to force owners to remain in their contracts even while knowing that its
business practices are the direct causes of the problems being experienced by owners.
9. To my knowledge, none of the foregoing is disclosed to owners before they
sign their timeshare purchase agreements.
Further Declarant Sayeth Not.
I. certify under penalty of perjury under the foregoing is true and correct.
Executed on this day of April, 2022.
Danielle Henderson
 

rickandcindy23

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I have a copy of the complaint. I need to insert a PDF of the statement. How would I do that?
 

rickandcindy23

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It's odd that there so many obvious misspellings.
I copied/pasted it. The e's show up as e's on the document, not as c's, but the line making it an e is very light, but it's a font that my copy/paste wouldn't paste. I have no idea why. I have the full PDF document.
 

Attachments

  • Complaint_against_Wyndham_Vacation_Resorts.pdf
    56.3 KB · Views: 49

bnoble

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Okay, I'll play devil's advocate.

5: If this is in the breakage window, it's explicitly allowed.
6: Maybe, but based on how many of us are here and how often it is reported, still seems unusual.
7: I will bet most resorts allow a fixed week to be used if (a) the owner doesn't show and (b) doesn't notify about a late arrival. I think one of my resorts gives me two days' grace into the week before I have to show up or call, or I lose it.
8: Where do we think the owner priority dates/vendetta against renters has come from? Of course they know owners are unhappy.
 
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rickandcindy23

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I was reminded that I had this document after a former Wyndham salesperson recently offered to answer questions.

The lawsuit is interesting to me because she obviously has a sense of responsibility to owners, and the CEO and other higher-ups do not. That is my take on the complaint. Just my opinion.

Honestly, I am just unhappy I haven't been able to log into my account for weeks now, so I am watching this Wyndham forum for any advice on how I can log in and do my searches for a driving trip we have in January. I absolutely loved our driving trip in September with stops at several Wyndham resorts for 2 nights each. It was fun and I would like to repeat it. But I cannot log in to look for Branson, Nashville, Panama City, New Orleans, etc.

I am getting frustrated with paying fees and losing information on the website that was always readily available to me, like fees on each of my contracts, which disappeared after they chose to use paymentus. That is all still ongoing as well. And who is Sarah L. Peters and why do my emails have her name on my payment us payments with my credit card #?
 

Cyrus24

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8: Where do we think the owner priority dates/vendetta against renters has come from? Of course they know owners are unhappy.
Wyndham has been using those that use Guest Certificates as the reason for limited availability. Deflecting from their own use of inventory. Interesting. It's not those that use GC's after all.
 

Sandi Bo

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I was reminded that I had this document after a former Wyndham salesperson recently offered to answer questions.

The lawsuit is interesting to me because she obviously has a sense of responsibility to owners, and the CEO and other higher-ups do not. That is my take on the complaint. Just my opinion.

Honestly, I am just unhappy I haven't been able to log into my account for weeks now, so I am watching this Wyndham forum for any advice on how I can log in and do my searches for a driving trip we have in January. I absolutely loved our driving trip in September with stops at several Wyndham resorts for 2 nights each. It was fun and I would like to repeat it. But I cannot log in to look for Branson, Nashville, Panama City, New Orleans, etc.

I am getting frustrated with paying fees and losing information on the website that was always readily available to me, like fees on each of my contracts, which disappeared after they chose to use paymentus. That is all still ongoing as well. And who is Sarah L. Peters and why do my emails have her name on my payment us payments with my credit card #?
I'm sorry, I had to laugh when you said 'And who is Sarah L. Peters'.

Very interesting lawsuit, thank you.

Bummer about your account. Can the VC's login if you call, can they help you?
 

DaveNV

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I didn't know this lawsuit was happening, but I'll be curious to hear how it resolves.

Dave
 

b2bailey

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I'm sorry, I had to laugh when you said 'And who is Sarah L. Peters'.

Very interesting lawsuit, thank you.

Bummer about your account. Can the VC's login if you call, can they help you?
Is the aforementioned contract Resale?
The first time I used the new payment system, I received an email thanking another person for the payment. I recognized it as the person who gifted me the unit. I called and it was straightened out easily.
 

HitchHiker71

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I copied/pasted it. The e's show up as e's on the document, not as c's, but the line making it an e is very light, but it's a font that my copy/paste wouldn't paste. I have no idea why. I have the full PDF document.

Here are screenshots of the documents for ease of reference:

1666898134932.png


1666898173299.png


Single page screenshots below:

1666898229572.png


1666898251646.png


1666898269528.png


1666898286377.png
 

goaliedave

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It's been decades like this, ever since the online hoteling companies started. They pay up front for blocks of rooms they resell; why wouldn't timeshare companies do it! This was all discussed with us decades ago as a member of a different chain (Shell). Did some people not know this?
 

Sandi Bo

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It's been decades like this, ever since the online hoteling companies started. They pay up front for blocks of rooms they resell; why wouldn't timeshare companies do it! This was all discussed with us decades ago as a member of a different chain (Shell). Did some people not know this?
I can see them doing it. I keep thinking more knowledge will surface as to where and how this is being done. With all the screaming about owners renting, Wyndham has been working really hard to paint mega-renters as the boogeymen, etc, pitting owner against owner -- it doesn't seem right that in the darkness of the unknown they are able to block the rooms and resell them? (Pay no attention to the man behind the curtain)?
 

VacationForever

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So this guy only whistle blows after he got terminated. I see this as a fired employee trying to stir up trouble for former employer.
 

goaliedave

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I can see them doing it. I keep thinking more knowledge will surface as to where and how this is being done. With all the screaming about owners renting, Wyndham has been working really hard to paint mega-renters as the boogeymen, etc, pitting owner against owner -- it doesn't seem right that in the darkness of the unknown they are able to block the rooms and resell them? (Pay no attention to the man behind the curtain)?
From Wyndham's point of view, why wouldn't they rent out as many as possible? Owners are never going to know why availability is low. If they rent some out on their own, and some to 3rd party resellers, that revenue goes into the timeshare books to cover expenses and reduce MF. A few owners can't find availability but for most owners increased revenue is good.
 

goaliedave

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I can see them doing it. I keep thinking more knowledge will surface as to where and how this is being done. With all the screaming about owners renting, Wyndham has been working really hard to paint mega-renters as the boogeymen, etc, pitting owner against owner -- it doesn't seem right that in the darkness of the unknown they are able to block the rooms and resell them? (Pay no attention to the man behind the curtain)?
I think the reason Wyndham dislikes megarenters is that their customers, unlike renters from hotel.com, are unlikely to attend sales presentations. Also Wyndham would lose the high $ rentals from holiday weeks like Christmas.
 

Sandi Bo

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From Wyndham's point of view, why wouldn't they rent out as many as possible? Owners are never going to know why availability is low. If they rent some out on their own, and some to 3rd party resellers, that revenue goes into the timeshare books to cover expenses and reduce MF. A few owners can't find availability but for most owners increased revenue is good.
Agree. It's the transparency, or lack therefore, I take issue with. I still contend Wyndham uses the megarenters to divert the blame. They've done a masterful job of directing the blame at megarenters, meanwhile 'back at the ranch'...

Another great idea, let's scare the bajeebies out of everyone, so they give back their contracts via the Certified Exit program. What is happening to those points, while Wyndham is working to resell them at full price? Are they working for good of the revenue stream (via their rentals and 3rd party resellers)? Surely these strategies are talked about in board rooms?
 

Jan M.

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From Wyndham's point of view, why wouldn't they rent out as many as possible? Owners are never going to know why availability is low. If they rent some out on their own, and some to 3rd party resellers, that revenue goes into the timeshare books to cover expenses and reduce MF. A few owners can't find availability but for most owners increased revenue is good.

This seems to be a common fallacy. Increased occupancy from rentals, Wyndham's or owners rentals, doesn't reduce maintenance fees or help cover the resort expenses. It increases the utility expenses, staffing expenses and other expenses such as laundry which costs more than most of us would guess, etc. The higher occupancy necessitates the units being updated and deep cleaned more frequently which increases maintenance fees.

I'll use Bonnet Creek as an example because it's something many of us have encountered there. When a tower at Bonnet Creek is down for several months for updates and refurbishment which happens more frequently due to the high occupancy, there's that many less units available to the owners. Owners have had their reservations cancelled or downgraded when the work took longer than expected.

Some owners have been told by resorts staff that they've been instructed that Wyndham's rentals get preference over owners when it comes to unit assignment. As in the units with the best views or the nicest units. :mad:
 
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Sandi Bo

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Whistle blowers are good for the system. It proves that there is someone who will stand up for what is right.
Agree, it's like this person Danielle gave up her severance, etc, for the good of all. You have to respect her for that. You often have to sign away your rights to be heard in order to be eligible for your severance. I lived through the break up of the bell system, started with them the year of divestiture. At one point, we were offered stock options, nice - but part of accepting them was signing that we'd agree to arbitration from that point forward (no law suits for us).

And... many of our friends no longer here on TUG (or no longer speaking on TUG (Hello if you are listening)) had to sign nondisclosures in order to receive what they did (and walk away).
 

Sandi Bo

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This seems to be a common fallacy. Increased occupancy from rentals, Wyndham's or owners rentals, doesn't reduce maintenance fees or help cover the resort expenses. It increases the utility expenses, staffing expenses and other expenses such as laundry which costs more than most of us would guess, etc. The higher occupancy necessitates the units being updated and deep cleaned more frequently which increases maintenance fees.

I'll use Bonnet Creek as an example because it's something many of us have encountered there. When a tower at Bonnet Creek is down for several months for updates and refurbishment which happens more frequently due to the high occupancy, there's that many less units available to the owners. Owners have had their reservations cancelled or downgraded when the work took longer than expected.

Some owners have been told by resorts staff that they've been instructed that Wyndham's rentals get preference over owners when it comes to unit assignment. As in the units with the best views or the nicest units. :mad:
Good points, Jan. Bonnet Creek is their flagship resort. Always in tip top shape. Which so many of us appreciate, for sure. It bodes well for sales, too. I always figured on top reason it is kept up so well. My guess is more sales there than anywhere, but I really don't know the statistics on that, just a guess. Regardless, it is in Wyndham's best interest that Bonnet Creek is the amazingly beautiful, routinely renovated, resort that it is (renovated about every 5 years due to how they rotate the renovation schedule, above the industry standard)).
 

HitchHiker71

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And... many of our friends no longer here on TUG (or no longer speaking on TUG (Hello if you are listening)) had to sign nondisclosures in order to receive what they did (and walk away).

IME any NDA attached to an internal employee severance agreement is an altogether different legal document with different constraints vs any NDA attached to a legal settlement agreement for an outside customer given they are two very different use cases - so any/all comments provided by megarenters here that may have signed an NDA in the past aren't directly relevant as it relates to the the topic at hand for the whistleblower.
 

Sandi Bo

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IME any NDA attached to an internal employee severance agreement is an altogether different legal document with different constraints vs any NDA attached to a legal settlement agreement for an outside customer given they are two very different use cases - so any/all comments provided by megarenters here that may have signed an NDA in the past aren't directly relevant as it relates to the the topic at hand for the whistleblower.
Isn't the end result, in either situation, they have been silenced?
 
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