Help Starwood Preferred Guest Question

[Queen]

I am on a RCI exchange at Starwood Vistana in Orlando. I did a tour which should have been 60 minutes but lasted 2 hours. We did not buy but instead was offered a SPG hotel package for $1749 which gave us 40,000 points which can be used in a Category 1 hotel for 2,000 SPG point, or 3,000 SPG points for Category 2 hotel, and 4 night 5 days in a 1 bedroom timeshare to be used in the next 12 month. After I have used the 4nights TS offer I will get the 40,000 SPG points hotel package that I purchased for the $1749. If I don't use the 4 nights timeshare within the year I will loose $600 of my purchase price. The offer price of $10,000 to purchase a 1 bedroom every other year is protected for the year. I have no intention of purchasing TS through them and when I told them that I can get resale for much less they said I coud not use the points options if purchased resale.

I did an online chat with SPG and found out that I can purchase 500 SGP points for hotel stays for $17.

Would you please let me know if I have been taken with this purchase and should I cancel, and if so what is the best way to cancel?

 

[C30NY]

You paid about $14.36 per 500 options and got a vacation for $600. I think they call this an explorers package, and I dont think it's a bad deal if you go back and stay at the TS and use the starpoints. I think there are a lot of people who have bought these. Since you already bought it, enjoy it!

 

[Queen]

Thanks for the reply, however, it just seems to me that $1749 is a high price when the maintenance fees for 7 nights is around $800. I could still cancel tomorrow if it is not a good deal. You seem to think it is not bad.

 

[jarta]

Queen, ... You paid 4.3 cents per Starpoint ($1,749/40,000). That's not a good deal. They usually sell for around 3-3.5 cents per Starpoint.

The usual Explorer Package is a free stay in return for a commitment to attend another sales pitch. In the past it has cost around $1,549 for 80,000 Starpoints (assuming you don't buy) and a credit for the amount of the purchase cost against the property bought (assuming you do buy).

I don't know the procedure for getting out of an Explorer Package. You say you still can. I'd sure try to get out of this one. ... eom

 

[Ken555]

Run away! Get your $$$ back! 'nuf said.

 

[Queen]

The explorer agreement state that I can cancel without any penalty or obligation except for the $99 processing/adm fee within 10 calendar days after the date of signing in writing. It is a little difficult to do so since I will be away from home for another 6 weeks (unless I do it the old fashion way by hand writing). It might be better to loose $100 instead of $1749. Thanks for your advice.

 

[sjuhawk_jd]

The explorer agreement state that I can cancel without any penalty or obligation except for the $99 processing/adm fee within 10 calendar days after the date of signing in writing. It is a little difficult to do so since I will be away from home for another 6 weeks (unless I do it the old fashion way by hand writing). It might be better to loose $100 instead of $1749. Thanks for your advice.

Get your refund. Give some SOB story (health reasons, loss of job, etc) and ask them to waive the $100 processing fee also (it is worth a try).

 

[C30NY]

I only stated it was a good deal because it seemed you were interested in the StarPoints. You can also break down the costs in various ways (Points = X and Vacation = X = Total cost, or Paid for points and vacation free, etc...) Jarta calculated it as if the Vacation was free...which it can be depending on how you want to twist the numbers.

They are selling the SPs for 3.4 cents per point direct (17 / 500 = .034), and if you figure it on your purchase, counting the vacation as part of the purchase (valued at $600), you paid 2.87 cents per SP (1749 - 600 = 1149 / 40,000 = .028)...you got a deal on the StarPoints.

In the end its obviously your decision. If you wanted the short vacation and StarPoints anyway, its not that bad of a deal, if you think $600 is a good price for the 4 nights. If you could give a crap about any of it, cancel and rent a week from someone for probably less that the $1749

 

[Ken555]

They are selling the SPs for 3.4 cents per point direct (17 / 500 = .034), and if you figure it on your purchase, counting the vacation as part of the purchase (valued at $600), you paid 2.87 cents per SP (1749 - 600 = 1149 / 40,000 = .028)...you got a deal on the StarPoints.

Its not hard to make this look like a good deal, depending on how much you rationalize the decision based on funny math. If the OP doesn't have a trip in mind where they'd use the StarPoints (and it doesn't appear as if that's the case) then in my opinion it's not a good use of money. At these rates, the OP is essentially prepaying for hotel stays, and I don't ever find that a good idea. There are many SPG properties where the effective value of the SPs could be much higher than 2.87c but it's not as common as we would all prefer. And, it doesn't mean the OP is comfortable spending that much on a room. Keep in mind most of the hotels where the best value for points come into play are the expensive hotels... typically those that charge greater than $500 per night or have Cash & Points option available at time of booking. Again, it depends on how you rationalize the decision.

I find earning SPs via the AMEX cards to be much better as it's better than the 2% cash rebate I could earn with a credit card, and I'm not out of pocket (other than the annual credit card fee, but I could argue that's worthwhile even without the points). Given the current price on simply buying StarPoints direct, Explorer Packages make no sense to me unless one intends to purchase a timeshare on the same, or next, day and already has the deed for a resale 148k SO unit ready to requalify and has the intent to become a 5* Elite member. The OP isn't there yet, so based on my opinion, this is a poor decision and should be rescinded as soon as possible.

 

[jarta]

Ken, ... AMEX: $1,250 at 2 points per dollar gets you 2,500 Starpoints. 1 year MF for a 2-br Platinum at Lagunamar is $1,250. It gives you 72,000 Starpoints if converted from StarOptions (79,200 if 4 or 5 Star Elite due to the 10% bonus).

I use my business AMEX for AMEX points for most business purchases and my Starwood AMEX for traveling. The Starpoints are nice, but for a large number of points quickly, nothing beats converting StarOptions to Starpoints, IMO. ... eom

 

[squeeze]

It's not bad deal, it's just not a great deal either.
You just pre paid a vacation.

Take this one or choose any other, makes no difference. If you like the vacation you just purchased, keep it and enjoy it.
If not, get your money back and make a decision at a later time.

 

[Ken555]

Ken, ... AMEX: $1,250 at 2 points per dollar gets you 2,500 Starpoints. 1 year MF for a 2-br Platinum at Lagunamar is $1,250. It gives you 72,000 Starpoints if converted from StarOptions (79,200 if 4 or 5 Star Elite due to the 10% bonus).

I use my business AMEX for AMEX points for most business purchases and my Starwood AMEX for traveling. The Starpoints are nice, but for a large number of points quickly, nothing beats converting StarOptions to Starpoints, IMO. ... eom

I think you forgot the expense of purchasing the deed for that Lagunamar conversion in your above scenario. If I could simply pay the MF and convert to SPs it's definitely not a bad deal, but the purchase of the deed is just a small factor you neglected to include here... But perhaps little facts like this shouldn't be considered? /end

 

[jarta]

"But perhaps little facts like this shouldn't be considered?"

The fact that I paid money to the developer should be considered. But, I sometimes stay and sometimes convert. When I convert and further convert to air miles, each time I cut further into the developer cost. Slowly the remainder of the initial investment be amortized. But, it should be considered.

And should it be considered that each time I purchased a Lagunamar from Starwood I also retroed in a 2-br (or larger) Platinum market resale that gave me even more StarOptions to convert? How should I figure that cost allocation? Can I treat it as a package to reduce the per week initial cost?

Should people consider the fact that you are in IT (own the firm) and have to travel and stay, sometimes for extended periods, at hotels near the client company. You can pay with your Starwood Amex and then bill back to your clients the cost of lodging on which you make Starpoints and upgrades? Most people on TUG do not travel like that and have the opportunity to obtain Starpoints and upgrades on their client's dime.

Nothing inherently wrong about it, but how do you handle the accounting? Does the client get a credit on your billing for the Starpoints you earn or the value of the upgrade? ... eom

 

[Ken555]

Jim,

Once again, you've taken over a thread with frivolous statements only intended to generate argument. I'm not rising to the bait any longer.

Read the first post of this thread again and stay on topic. If you wish to start another thread about other topics, such as the business use and allocation of credit card perks, be my guest. I might even contribute to such a thread. This thread, though, is about the OPs mistake and question of rescinding an Explorer Package and your twist of this thread into one regarding value of SPs from Lagunamar only confuses the issue.

Also, you have absolutely no idea how I travel nor who I bill, or even if I bill, others for that privilege. I can say with certainty that you are completely wrong with what you wrote here. It's unfortunate to think that you're a lawyer who makes such unsubstantiated statements. I would hesitate to be your client knowing this jump to judgment.

Ken

 

[jarta]

Ken, ... "Also, you have absolutely no idea how I travel nor who I bill, or even if I bill, others for that privilege. I can say with certainty that you are completely wrong with what you wrote here."

Sorry, but the guy with the wet suit on is you. [deleted]

[jarta - knock it off - your constant attack on other Tuggers is pathetic. There was zero reason to drag Ken555's business into this thread, except your own personal vendetta. Stay on topic, or don't post. Consider this a formal warning. - DeniseM]