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Letter to Wyndham Management

Silverdollar

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Last Sunday, 4/19/20, I sent the following letter to Wyndham Vice President. Two days later, he replied with a personal response (not a form letter). Please take a moment to read it and feel free to give input, or share your own ideas. Wyndham may or may not use these ideas, but sometimes you have not because you ask not.

Dear __________,

I have been a Wyndham (formerly Fairfield) owner for 38 years and am currently a VIP Platinum member. Due to the coronavirus, many Wyndham owners will have an excessive amount of points due to required cancellations. When resorts open back up, due to the glut of points, demand will far exceed supply and there will not be sufficient inventory to satisfy the demand. This means that many owners will not be able to use their excessive amount of points to book vacations for at least the next 2-3 years, maybe longer.

I would like to offer a few suggestions to Wyndham that will help to alleviate this problem and provide other options for members to use their points:

  • Temporarily change the conversion rate for Club Wyndham Plus points to maintenance fees to make it more inviting for owners to use their points to pay maintenance fees. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
  • Temporarily change the conversion rate of Club Wyndham Plus points to Wyndham Rewards to make it more inviting for owners to use their points to stay at Wyndham hotels. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
  • Temporarily change the points system for Wyndham Rewards to where no hotel would exceed 15,000 points for “Go Free”. This improvement would apply to 2020-2022.
  • Temporarily change Plus Partners by improving rates for airline tickets, hotel accommodations, car rentals, and Disney tickets for 2020-2022.
  • Temporarily change the rate that Extra Holidays charges to rent a timeshare from 60/40 to 70/30 for 2020-2022.
  • Temporarily reduce the RCI exchange fee from $239 to $139 for 2020-2022.
  • Temporarily allow PIC Plus points to be used as Regular Use Points for 2020-2022. This would allow PIC Plus points to be used for something other than vacations. This should help to take pressure off inventory demand.
As you know, the economy is under great stress and many will experience financial difficultly. More than likely there will be a large number of defaults among Wyndham timeshare owners, and maintenance fees will be left unpaid.

Wyndham should consider the suggestions mentioned above as an expression of good faith, and to make it more inviting for owners to stay “until the storm passes”. Also, this would help to build some goodwill that has eroded in recent years due to overaggressive and dishonest sales practices at local Wyndham resorts, policy changes, and excessive frustration with the “revamped” website.

Please consider these suggestions to not only help Wyndham owners to be able to use their points, but to strengthen the Wyndham brand.

Respectfully,
 

Sandy VDH

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...and what was the response???
 

Silverdollar

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...and what was the response???
His response:

Good afternoon, _________

Great to hear from you again. You probably have seen a lot of things that the Club is doing to assist our members with point usage. As this is a fluid situation, there are many ideas like yours below that are being discussed each day. I will pass on your ideas to our team so that we can use these as part of our ongoing discussions. Our owners are always top of mind when we make such decisions. Hard to believe we are only about 5 weeks into this as it seems like a year at this point!

Thank you for your suggestions. This is certainly an unprecedented situation and we want our owners and the Wyndham Brand to come out of this as strongly as possible.

Have a great day and talk to you soon,
 

dgalati

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Last Sunday, 4/19/20, I sent the following letter to Wyndham Vice President. Two days later, he replied with a personal response (not a form letter). Please take a moment to read it and feel free to give input, or share your own ideas. Wyndham may or may not use these ideas, but sometimes you have not because you ask not.

Dear __________,

I have been a Wyndham (formerly Fairfield) owner for 38 years and am currently a VIP Platinum member. Due to the coronavirus, many Wyndham owners will have an excessive amount of points due to required cancellations. When resorts open back up, due to the glut of points, demand will far exceed supply and there will not be sufficient inventory to satisfy the demand. This means that many owners will not be able to use their excessive amount of points to book vacations for at least the next 2-3 years, maybe longer.

I would like to offer a few suggestions to Wyndham that will help to alleviate this problem and provide other options for members to use their points:

  • Temporarily change the conversion rate for Club Wyndham Plus points to maintenance fees to make it more inviting for owners to use their points to pay maintenance fees. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
  • Temporarily change the conversion rate of Club Wyndham Plus points to Wyndham Rewards to make it more inviting for owners to use their points to stay at Wyndham hotels. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
  • Temporarily change the points system for Wyndham Rewards to where no hotel would exceed 15,000 points for “Go Free”. This improvement would apply to 2020-2022.
  • Temporarily change Plus Partners by improving rates for airline tickets, hotel accommodations, car rentals, and Disney tickets for 2020-2022.
  • Temporarily change the rate that Extra Holidays charges to rent a timeshare from 60/40 to 70/30 for 2020-2022.
  • Temporarily reduce the RCI exchange fee from $239 to $139 for 2020-2022.
  • Temporarily allow PIC Plus points to be used as Regular Use Points for 2020-2022. This would allow PIC Plus points to be used for something other than vacations. This should help to take pressure off inventory demand.
As you know, the economy is under great stress and many will experience financial difficultly. More than likely there will be a large number of defaults among Wyndham timeshare owners, and maintenance fees will be left unpaid.

Wyndham should consider the suggestions mentioned above as an expression of good faith, and to make it more inviting for owners to stay “until the storm passes”. Also, this would help to build some goodwill that has eroded in recent years due to overaggressive and dishonest sales practices at local Wyndham resorts, policy changes, and excessive frustration with the “revamped” website.

Please consider these suggestions to not only help Wyndham owners to be able to use their points, but to strengthen the Wyndham brand.

Respectfully,

I like the points conversion to maintenance fees with a better conversion rate to owners. This would help many that are not able to use what yearly points they have along with the additional points being pushed into next years use. It also is a great way to relieve owners of the burden of paying maintenance fees with reducing the number of points that will be chasing the limited number of rooms available. I would also suggest that Wyndham limit VIP benefit discounts when booking in the 60 day discount window to only developer purchased points. The elimination of VIP owners using resale purchased points within the VIP 60 day discount window would also help the limited room supply over the next 2 years.
 

cbyrne1174

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They should ask all HOA's to not charge a reserve fund for 2021/2022. That will save about $1/thousand. Updates can be pushed back 2 years without it being a big deal.
 

Richelle

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I like the points conversion to maintenance fees with a better conversion rate to owners. This would help many that are not able to use what yearly points they have along with the additional points being pushed into next years use. It also is a great way to relieve owners of the burden of paying maintenance fees with reducing the number of points that will be chasing the limited number of rooms available. I would also suggest that Wyndham limit VIP benefit discounts when booking in the 60 day discount window to only developer purchased points. The elimination of VIP owners using resale purchased points within the VIP 60 day discount window would also help the limited room supply over the next 2 years.

I wonder how many VIPs use resale points for their discounted reservations. I don’t think it enough to make a significant difference. I know it’s something they’ve been discussing over the years. If was a simple change I suspect they would have done it by now. My guess is, it’s either not simple or it benefits them to continue to allow it. I also wonder how many of the VIP Platinum owners you rent from, use resale points for those discounted reservations you rent. I would imagine the price of reservations would increase because they would have less points to make those discounted reservations.
 

Eric B

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IMHO, the 60-day, 45-day, and 30-day discount reservation windows area actually mutually beneficial to the VIP owner and the HOAs because they allow discounted booking of shorter term open units that might not actually be used without the discounts, similar to how bonus time works for WorldMark to fill unused inventory. It's likely revenue-neutral for Wyndham, but benefits both the VIP owners and the HOAs, so I would be surprised to see them limit VIP access to that to just developer-purchased points, which would likely amount to a drop in the bucket and annoy both knowledgeable VIP owners and the HOAs through the reduced benefits to both. Good way to annoy your best customers and suppliers, though.
 

JDHPE

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Deferring reserve funding for updates is an excellent suggestion and is actually consistent with reduced wear and tear on properties due to their extended closure.
 

dgalati

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IMHO, the 60-day, 45-day, and 30-day discount reservation windows area actually mutually beneficial to the VIP owner and the HOAs because they allow discounted booking of shorter term open units that might not actually be used without the discounts, similar to how bonus time works for WorldMark to fill unused inventory. It's likely revenue-neutral for Wyndham, but benefits both the VIP owners and the HOAs, so I would be surprised to see them limit VIP access to that to just developer-purchased points, which would likely amount to a drop in the bucket and annoy both knowledgeable VIP owners and the HOAs through the reduced benefits to both. Good way to annoy your best customers and suppliers, though.
Lets get back on topic What do you suggest to help eliminate some demand or the large amount of points that will be chasing limited number of rooms next year. Can you suggest some other ways to help those who can't travel or make use of their extended points? What are your thoughts on paying maintenance fees at a better conversion rate offered today?
 

Fredflintstone

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His response:

Good afternoon, _________

Great to hear from you again. You probably have seen a lot of things that the Club is doing to assist our members with point usage. As this is a fluid situation, there are many ideas like yours below that are being discussed each day. I will pass on your ideas to our team so that we can use these as part of our ongoing discussions. Our owners are always top of mind when we make such decisions. Hard to believe we are only about 5 weeks into this as it seems like a year at this point!

Thank you for your suggestions. This is certainly an unprecedented situation and we want our owners and the Wyndham Brand to come out of this as strongly as possible.

Have a great day and talk to you soon,

To me, this seems like a cookie cutter, no commitment response.

Personally, your suggestions are excellent but I don’t see Wyndham changing anything because locked in owners will pay it. Defaults? No problem, add bad debt expense to the rest of the owners. Reduce RCI fees? Naw, it’s a cash cow and folks in RCI with deposits are over the barrel because the deposits cannot be exchanged into anything other than RCI exchanges. If one doesn’t pay, they lose their TPU in time or pay, yet again, to rescue the points. Either way, win, win for WYND and RCI.

The MF will be life blood especially this year. Those fees are going nothing but up. Points are designed to make money, not give deals on MF.

Brand? They have 875,000 owners/payers and know natural growth occurs without doing much. They already have a bad rap so it really doesn’t matter what people think at this point. If it did, their sales tactics would have changed long ago and 1000’s of settled law suits ago.

Nice letter and good ideas. I see none of them will be implemented as it’s WYND in the drivers seat, not the owners. Your contract makes that loud and clear when your purchased.

Just sayin.


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dgalati

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I wonder how many VIPs use resale points for their discounted reservations. I don’t think it enough to make a significant difference. I know it’s something they’ve been discussing over the years. If was a simple change I suspect they would have done it by now. My guess is, it’s either not simple or it benefits them to continue to allow it. I also wonder how many of the VIP Platinum owners you rent from, use resale points for those discounted reservations you rent. I would imagine the price of reservations would increase because they would have less points to make those discounted reservations.
I agree my rental prices are going up under my suggestions. Its not about what benefits me but what could help eliminate a large supply of points that will be chasing a limited number of rooms over the next year.
 

Fredflintstone

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I agree my rental prices are going up under my suggestions. Its not about what benefits me but what could help eliminate a large supply of points that will be chasing a limited number of rooms over the next year.

I agree.

I too see owners scrambling to use points resulting in unit shortage. Some will need to decide on whether the points expire or pay premium to rescue them temporarily.

As for renting, I do see TSs getting harder to book because of the points backlog but then revert to VBRO, Expedia, Hotwire, Airbnb to get what I need.

What might happen are desperate owners hungry for cash use their points to get a place for a renter at a smokin deal due to the competition. I really see Cash as King more than ever because of Covid. So many unemployed are going to do anything including fire sale pricing to scrape up some cash.


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cbyrne1174

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I know this has nothing to do with Wyndham, but DVC resale contract listings are at 300% of their normal amount. That's saying something about the future of defaults. DVC owners are usually VERY attached to their membership. If people are trying to dump their beloved Disney memberships, I worry how many people are just going to say f it and default on their Wyndham loans. I know I would!
 

dgalati

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I agree.

I too see owners scrambling to use points resulting in unit shortage. Some will need to decide on whether the points expire or pay premium to rescue them temporarily.

As for renting, I do see TSs getting harder to book because of the points backlog but then revert to VBRO, Expedia, Hotwire, Airbnb to get what I need.

What might happen are desperate owners hungry for cash use their points to get a place for a renter at a smokin deal due to the competition. I really see Cash as King more than ever because of Covid. So many unemployed are going to do anything including fire sale pricing to scrape up some cash.


Sent from my iPad using Tapatalk
I have a feeling you maybe right on the fire sale pricing. The travel habits of people will change compared to what we have seen in the last several years. With unemployment high very few of the unemployed workers will vacation or pay any maintenance fees. I have to say the negative points balance that Wyndham squeezed me out with was actually a blessing for me. Usually at this time of year I would have been sitting on 600,000 to 1,000,000 points that I would of not been able to use while still paying maintenance fees.
 
Last edited:

55plus

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I'd like to see owners be allowed to carryover 2020 points for 3 years. RCI, exchanging points for MF, travel, etc., are all optional. I along with many others, I don't use them. I use my point for what they are intended to be used for. It won't cost Wyndham anything to extend the carryover and will give owners time to use them. It's not the owner's fault their timeshares are temporarily closed.
 

raygo123

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All of what you wanted in your letter has to be accomplished on 65 cents per thousand. I first suggest another letter to your HOA to see if they are willing to reduce the sinking fund not Wyndham. As for reward points Barclays. Also the reservation system is still up and running, no savings there so the cost of that will reduce the amount of the 65 cents Wyndham collects. If Wyndham increases the cost to benefit ratio of any of the dash in for things like airline tickets or car rental etc. Again has to come out of the 65 cents. Say the average owners have 200,000 points, that's $130/ owner. Can everything you wrote be done on $130? And still run the system? I think not. I'm quite happy with what Wyndham and RCI has done. I would suggest everyone sit down and calculate your needs for the next two years and deposit forward points as best fit your needs. It is not just this year you can deposit forward but in all future years. Make a three to five year plan. I don't expect Wyndham to cover my ass just because I can't plan. I don't consider Wyndham the bad guy. I believe we have as much responsibility to navigate this as Wyndham. I feel bad for those who can only travel summer months,. As they will be affected most. Even those can deposit over two years. And then next year still can deposit forward that years points, etc.

Thank you Wyndham for what you have done for me. I can do the rest myself.

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raygo123

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I'd like to see owners be allowed to carryover 2020 points for 3 years. RCI, exchanging points for MF, travel, etc., are all optional. I along with many others, I don't use them. I use my point for what they are intended to be used for. It won't cost Wyndham anything to extend the carryover and will give owners time to use them. It's not the owner's fault their timeshares are temporarily closed.
So your saying it's Wyndham's fault?

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dioxide45

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All good idea, but there are challenges with the ones that they have to convert inventory to cash in order to support. Many of these require them to be able to rent out the owners inventory in order for them to give them the benefit in return.

Temporarily change the conversion rate for Club Wyndham Plus points to maintenance fees to make it more inviting for owners to use their points to pay maintenance fees. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
Points for MFs are possible because the developer can monetize that inventory. They need a lot of slack there because while they give the owner a guaranteed amount to pay down maintenance fees, they have no guaranty that they can monetize the inventory. This is why the ratio is always so poor for the owner. With expected huge drop in demand for leisure travel over the next year at least, it will be harder to monetize the inventory they take in to convert it to cash to pay the MFs for the owners.

Temporarily change the conversion rate of Club Wyndham Plus points to Wyndham Rewards to make it more inviting for owners to use their points to stay at Wyndham hotels. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
They pay hard costs to buy Wyndham Reward points. They can only pay those hard costs with cash by being able to rent out owner inventory for cash.

Temporarily change the points system for Wyndham Rewards to where no hotel would exceed 15,000 points for “Go Free”. This improvement would apply to 2020-2022.
Isn't Wyndham Rewards managed by the hotel company? Would they have to get them to buyin?


Temporarily change Plus Partners by improving rates for airline tickets, hotel accommodations, car rentals, and Disney tickets for 2020-2022.
Same as first item. If they can't more easily monetize the inventory and garner more profit from it, they can't make the ratios better.
 

chapjim

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Last Sunday, 4/19/20, I sent the following letter to Wyndham Vice President. Two days later, he replied with a personal response (not a form letter). Please take a moment to read it and feel free to give input, or share your own ideas. Wyndham may or may not use these ideas, but sometimes you have not because you ask not.

Dear __________,

I have been a Wyndham (formerly Fairfield) owner for 38 years and am currently a VIP Platinum member. Due to the coronavirus, many Wyndham owners will have an excessive amount of points due to required cancellations. When resorts open back up, due to the glut of points, demand will far exceed supply and there will not be sufficient inventory to satisfy the demand. This means that many owners will not be able to use their excessive amount of points to book vacations for at least the next 2-3 years, maybe longer.

I would like to offer a few suggestions to Wyndham that will help to alleviate this problem and provide other options for members to use their points:

  • Temporarily change the conversion rate for Club Wyndham Plus points to maintenance fees to make it more inviting for owners to use their points to pay maintenance fees. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
  • Temporarily change the conversion rate of Club Wyndham Plus points to Wyndham Rewards to make it more inviting for owners to use their points to stay at Wyndham hotels. Currently, the conversion rate is not good for owners. This improvement in conversion rate could be applied for 2020-2022.
  • Temporarily change the points system for Wyndham Rewards to where no hotel would exceed 15,000 points for “Go Free”. This improvement would apply to 2020-2022.
  • Temporarily change Plus Partners by improving rates for airline tickets, hotel accommodations, car rentals, and Disney tickets for 2020-2022.
  • Temporarily change the rate that Extra Holidays charges to rent a timeshare from 60/40 to 70/30 for 2020-2022.
  • Temporarily reduce the RCI exchange fee from $239 to $139 for 2020-2022.
  • Temporarily allow PIC Plus points to be used as Regular Use Points for 2020-2022. This would allow PIC Plus points to be used for something other than vacations. This should help to take pressure off inventory demand.
As you know, the economy is under great stress and many will experience financial difficultly. More than likely there will be a large number of defaults among Wyndham timeshare owners, and maintenance fees will be left unpaid.

Wyndham should consider the suggestions mentioned above as an expression of good faith, and to make it more inviting for owners to stay “until the storm passes”. Also, this would help to build some goodwill that has eroded in recent years due to overaggressive and dishonest sales practices at local Wyndham resorts, policy changes, and excessive frustration with the “revamped” website.

Please consider these suggestions to not only help Wyndham owners to be able to use their points, but to strengthen the Wyndham brand.

Respectfully,

The only personalization of Wyndham's response I see is that someone looked to see if you had previous correspondence. Other than that, it looks like pure canned response.
 

dgalati

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So your saying it's Wyndham's fault?

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Stop the nonsense no one said its Wyndhams fault. Read the question again the OP was suggesting ways for Wyndham to help alleviate the over supply of points compared to the limited number of rooms available for next year. Would it be safe to say you feel its the HOA's fault if you are asking them to help out.
 

raygo123

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Stop the nonsense no one said its Wyndhams fault. Read the question again the OP was suggesting ways for Wyndham to help alleviate the over supply of points compared to the limited number of rooms available for next year. Would it be safe to say you feel its the HOA's fault if you are asking them to help out.
I suggest you read my post before you ramble

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dgalati

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I'd like to see owners be allowed to carryover 2020 points for 3 years. RCI, exchanging points for MF, travel, etc., are all optional. I along with many others, I don't use them. I use my point for what they are intended to be used for. It won't cost Wyndham anything to extend the carryover and will give owners time to use them. It's not the owner's fault their timeshares are temporarily closed.
Great suggestion that may help alleviate some of the over supply of points. Wyndham should help in other ways in this rare circumstance. Many owners may not be able to travel because of being laid off or they only have enough vacation time for one years allotment. While others were just sold more then they could possibly use in one year and we all know renting may not work well next year.
 
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comicbookman

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Great suggestion that may help alleviate some of the over supply of points. Wyndham should help in other ways in this rear circumstance. Many owners may not be able to travel because of being laid off or they only have enough vacation time for one years allotment. While others were just sold more then they could possibly use in one year and we all know renting may not work well next year.
While i would love to extend my points, not sure that "Wyndham should help" is applicable. creating an oversupply of points would in fact cost Wyndham plenty. as the largest owner they would be most likely to have points go unused. Any increase in Wyndhams cost would eventually be passed on through the program fee, so owners would be the ones to actually pay. That said, Yes i would love to be able to extend my points by for 3 years.
 

dgalati

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While i would love to extend my points, not sure that "Wyndham should help" is applicable. creating an oversupply of points would in fact cost Wyndham plenty. as the largest owner they would be most likely to have points go unused. Any increase in Wyndhams cost would eventually be passed on through the program fee, so owners would be the ones to actually pay. That said, Yes i would love to be able to extend my points by for 3 years.
Owners are going pay either way. Wyndham can help if not you going to have a lot of people stop paying maintenance fees and walk away.
 

comicbookman

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Owners are going pay either way. Wyndham can help if not you going to have a lot of people stop paying maintenance fees and walk away.
wyndham allowing people to extend their points 3 years is not going to help with defaults. Payment plans are the only thing that would help prevent that.
 
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