Probably late to the game, but here are my intitial thoughts
New Marriott system
The major component
• Your week is worth x points when you contribute it to the ‘trust.’
• Your week is worth y points when you want to purchase from the ‘trust.’
• Marriott gets to keep the difference between x and y and monetize it.
Example:
Marriott Grande Vista 3BR Platinum week.
When I contribute it to the trust, I receive 3,700 points.
When someone wants that week, it costs them 4,500 points.
The benefit to Marriott – the cash they can get when they sell the ‘bid-ask’ spread.
Marriott appears to have created a “points security” with a bid-ask spread . . . determined by Marriott. [Wonder why it can’t be marketed to NY residents? Securities laws?]
Another striking component
The “points security” the want you to trade your deeded week for has a one year life. After one year – worthless; you forfeit the points - no exchange for you.
Guess who benefits. Marriott.
Moreover, the one year ‘life’ of Marriott points effectively eliminates the ability to trade ‘up’ as you can never get enough points in one year to do so. I guess they will want cash on top of points.
Compare and contrast
Note this is very different from the II system that currently exists.
Relative value is determined by ‘trading power.”
One week goes in one week comes out. This is a zero sum game.
Not so the new Marriott system. Marriott has built a system with a bid ask spread, and aims to keep the spread for itself.
Am I a current owners damaged by this?
When I bought a Marriott timeshare, I purchased a bundle of rights. One of those was the deeded week.
To induce me to purchase that deeded week, there was an intangible asset associated with it - the ability to participate in a barter system created for the exchange of weeks. This intangible asset was decidedly attractive as few will want to stay exclusively in the resort they purchased.
Now, Marriott has negatively affected the ability to trade for other locations, notwithstanding that the program is voluntary and will run parallel to the existing II system. (That’s like saying the produce selection at the existing farmers market won’t be affected by establishing a competing farmers market across the street, assuming the farmers can’t be in two places at once.)
THE EXISTING BARTER SYSTEM AT II CAN ONLY BE NEGATIVELY AFFECTED BY THE NEW PROGRAM.
The intangible asset associated with the barter system of the bundle of rights I purchased has been changed.
Marriott appears to believe it has the right (and may have as a matter of law) to change the system to essentially ‘skim’ a ‘bid-ask’ spread having a size of its choosing from the exchange process.
One element of the direct damages to existing owners (as a group) can readily be measured by the number of points (and cash, if the collect cash in lieu of points to trade up) associated with their participation. Every point or dollar from existing owners deeded weeks that accrue to the benefit of Marriott comes out of the hide of the existing owners.
Its still a zero sum game; Marriott has decided to big foot its way into skimming some of the value of your interest.
The consequential damages are less easily measured.
An argument could be made that the value of all deeded weeks has been negatively affected.
There is now more uncertainty (and more risk) associated with owning a Marriott timeshare.
Marriott’s reputation for treating owners equitably has been shattered.
Who sets the bid-ask spread? Marriott. Who benefits from the bid ask spread? Marriott. Does that sound like a conflict?
And what’s the relationship between II and Marriott going to be? Will II inventory be sucked into the Marriott system.
Maybe its time for the 500,000+ existing Marriott owners to set up their own exchange system.
Go to the sales presentations. Take their money. And tell them how you feel.
