Marriott/Vistana overlay

[DannyTS]

I am curious about them combining the programs as well. Marriott is a points only based system where they say they don;t sell deeded property weeks. So what COULD happen to our deeded weeks if they decide to go to a points only based system? Any ideas? could they force us to sell into the pool, or are we safe with the deeded weeks we have? Just a curious thing since I like the fact that the owners usually get better room designations.

My best guess they may offer enrollment where you keep your week for your usage or deposit it for points and this is a decision you would make every year

 

[KACTravels]

We are going to an Owners Meeting at Kierland on Wednesday ($250 resort credit!). Let me know if you would like me to ask any specific questions and I’ll be happy to report back.

 

[r1lee]

We are going to an Owners Meeting at Kierland on Wednesday ($250 resort credit!). Let me know if you would like me to ask any specific questions and I’ll be happy to report back.

I just left from there. My wife took the 250. I wanted the 40k bonvoy points.
They offered me a decent deal, was surprised that it wasn’t to bad.

 

[magicjourney]

If I were MVC/Vistana executive, I would vote for NO for low fee enrollment based on one fact: what tugbbbs proposes always hurts the company financially. The notorious one: Don't buy direct!!!
If they need more inventory, they can always pick up from ROFR. Even hybrid package (MVC)/ Retro (Vistana) is better idea than low fee enrollment, IMHO.

 

[DannyTS]

If I were MVC/Vistana executive, I would vote for NO for low fee enrollment based on one fact: what tugbbbs proposes always hurts the company financially. The notorious one: Don't buy direct!!!
If they need more inventory, they can always pick up from ROFR. Even hybrid package (MVC)/ Retro (Vistana) is better idea than low fee enrollment, IMHO.

This is a novel business plan lol: do the opposite of what people say on TUG. The problem of course is, now that you commented on Tug, they should also do the opposite of what you proposed!

Joking aside though, can you substantiate why a hybrid retro is a better idea for the bottom line of the company?
My point is, if they offer enrollment to everyone , given the large ownership base, they can get IMO 200 million $ or more relatively quickly, with little effort and cost, most of this money will flow directly to the bottom line.

In your point of view they should offer retros (at 20k i assume). How many of those they have to sell one by one in order to get get the same amount of money they would make with a cheap enrollment? How many prospects do they have to see to achieve that? How much do they have to spend on sales incentives? How much commission do they have to pay to the sales people? How long it is going to take to achieve the same numbers?

 

[CalGalTraveler]

I think @DannyTS has a great point. The cost to sell which runs 30 - 50% plus the time it would take to convert might be more than the exec team wants to wait. CEO's want stock to jump so they can get their stock bonuses and move onto the next company (or retire) with a huge win under their belt.

I could envision several tiers i.e.

Tier 1: e.g. Westin flex
Tier 2: tier 1 Westin flex + e.g. Sheraton flex
Tier 3: tier 2 plus MVC

 

[pacman777]

If I were MVC/Vistana executive, I would vote for NO for low fee enrollment based on one fact: what tugbbbs proposes always hurts the company financially. The notorious one: Don't buy direct!!!
If they need more inventory, they can always pick up from ROFR. Even hybrid package (MVC)/ Retro (Vistana) is better idea than low fee enrollment, IMHO.

Most Vistana timeshares don’t have ROFR so may be difficult to acquire inventory quickly and cheaply.

 

[Ken555]

Most Vistana timeshares don’t have ROFR so may be difficult to acquire inventory quickly and cheaply.

If they really wanted to, they could task one buyer to grab eBay auctions, etc. It wouldn’t take much money for them to get the weeks, but this simply wouldn’t be sufficient quantity to make a difference for their bottom line.

I think it’s inevitable they will find ways to squeeze us for more money.

*still happy with my WKV 14 years in.


Sent from my iPad using Tapatalk

 

[mjm1]

I still think they will do whatever they think will help bring new sales to them (ie an overlay program.) That’s why MVC offered to let prior owners enroll their units for a reasonable fee. It helped build inventory in the DC program because most of the resorts were sold out. That got owners who enrolled to try the points system and they became more likely buyers of points. One of the primary benefits is more flexibility. I can see the same thing happening here, but time will tell.

Best regards.

Mike

 

[taterhed]

Agree with much of the above: CEO's are all about Sales, Sales, Sales.
This reflects the current bottom line and maybe the next 5 years.
I think the majority of the management must have the attention span of a Jack Russell Terrorist. "SQUIRREL!!!"

Look at the Hyatt points program: Does that seem like a 'long term' strategy or 'everybody else is doing it, do it now!' kind of move?

Marriott is points-crazy and isn't building (general statement). A 2010 enrollment-like scheme sounds very plausible to me. I'm sure they are drooling to grab all the ocean-front properties for the sales-literature that they can.... Why not enroll? Cash plus promises of Ka'annapali Ocean-Front-Center for the potential MVC points buyer.
Availability is not their concern....promises and cash.

 

[DannyTS]

it seems that big changes are coming to the "inefficient" Westin and Sheraton sales channels
Mar 05, 2019
Q4 2018 Presentation

http://ir.marriottvacationsworldwide.com/static-files/a35c2aa5-903e-4237-ab47-77fc7ff23f7a

 

[DannyTS]

"solid potential for new destinations from the Hyatt brand". Why would they mention them if they were not serious about integrating the brands?

 

[tschwa2]

Most Vistana timeshares don’t have ROFR so may be difficult to acquire inventory quickly and cheaply.

I think if they offered a general deed back for all paid in full and up to date on MF's and offered all owners a 6 month window, they would get a lot back and then after that they could take a look at what they still need and do a combination of additional take backs, buy backs and ebay purchases.

 

[bizaro86]

I think if they offered a general deed back for all paid in full and up to date on MF's and offered all owners a 6 month window, they would get a lot back and then after that they could take a look at what they still need and do a combination of additional take backs, buy backs and ebay purchases.

If they offered a general deed back for free ebay inventory would probably decrease fairly dramatically.

 

[JIMinNC]

I am curious about them combining the programs as well. Marriott is a points only based system where they say they don;t sell deeded property weeks. So what COULD happen to our deeded weeks if they decide to go to a points only based system? Any ideas? could they force us to sell into the pool, or are we safe with the deeded weeks we have? Just a curious thing since I like the fact that the owners usually get better room designations.

Marriott is not a points-only based system. They have their Destination Club Trust, which is a pool very similar to the Westin, Sheraton, and Aventuras Flex programs, but they also have many, many pre-existing deeded weeks that were sold prior to June 2010 when the Trust product was launched. While it is true Marriott no longer actively sells weeks (except in some international destinations that cannot be held by the Trust), there are many deeded weeks still in the system that still function as deeded weeks. Some of those weeks have been allowed to "enroll" in the points system, but even then, the owners do not give up their deeds or traditional weeks usage rights, enrollment simply adds the option to convert your deeded week to Destination Points in any given year. One year you may chose to convert to Points, but in other years you may use your week or elect to use it in Interval. Essentially Marriott is a points system overlaid onto a mature weeks-based system. The weeks-based system remains and still functions much as it always did. The "catch" is, resale weeks owners cannot generally enroll their resale weeks into the points system without a significant purchase of Marriot Destination Club Trust points (their version of Flex).

 

[Moparman42]

Marriott is not a points-only based system. They have their Destination Club Trust, which is a pool very similar to the Westin, Sheraton, and Aventuras Flex programs, but they also have many, many pre-existing deeded weeks that were sold prior to June 2010 when the Trust product was launched. While it is true Marriott no longer actively sells weeks (except in some international destinations that cannot be held by the Trust), there are many deeded weeks still in the system that still function as deeded weeks. Some of those weeks have been allowed to "enroll" in the points system, but even then, the owners do not give up their deeds or traditional weeks usage rights, enrollment simply adds the option to convert your deeded week to Destination Points in any given year. One year you may chose to convert to Points, but in other years you may use your week or elect to use it in Interval. Essentially Marriott is a points system overlaid onto a mature weeks-based system. The weeks-based system remains and still functions much as it always did. The "catch" is, resale weeks owners cannot generally enroll their resale weeks into the points system without a significant purchase of Marriot Destination Club Trust points (their version of Flex).

Good information. Thank you!

 

[Sapper]

"solid potential for new destinations from the Hyatt brand". Why would they mention them if they were not serious about integrating the brands?

View attachment 10943

This screams integrating the Hyatt brand. Not sure how they will do it though.

 

[DannyTS]

This screams integrating the Hyatt brand. Not sure how they will do it though.

One idea is to use Interval to integrate all systems without the need the merge the trusts. I am thinking they can create an Interval MVC points system that only Marriott Vacation Worlwide resorts (including Marriott, Hyatt, Sheraton and Westin) can join.

 

[kozykritter]

Went to owner update at WDW today. Salesperson said that MVC will not be combining the three programs and that they will each be managed separately. MVC DC and VSE Flex owners will be given access to each other's inventory at 8 months out, initially using a system through Interval International and then eventually a direct system once the software catches up. VSE week owners will not be included in this access to MVC except for the same exchanges they've always been able to do through Interval. Hyatt timeshare properties will continue to be a closed system with no cross access to or from other programs.

I am a Sheraton Flex owner of two contracts and he suggested I trade my smaller contract for a Westin Flex contract in order to have priority access to more properties as things moved forward with MVC. I declined at this time.

 

[VacationForever]

Went to owner update at WDW today. Salesperson said that MVC will not be combining the three programs and that they will each be managed separately. MVC DC and VSE Flex owners will be given access to each other's inventory at 8 months out, initially using a system through Interval International and then eventually a direct system once the software catches up. VSE week owners will not be included in this access to MVC except for the same exchanges they've always been able to do through Interval. Hyatt timeshare properties will continue to be a closed system with no cross access to or from other programs.

I am a Sheraton Flex owner of two contracts and he suggested I trade my smaller contract for a Westin Flex contract in order to have priority access to more properties as things moved forward with MVC. I declined at this time.

Although this is a salesperson lips moving, it is along the line what I expect will happen.

 

[DannyTS]

I am not sure how they would justify including the Flex owners in the exchange (relatively new programs) and no owners before those programs. It does not make any sense.

 

[VacationForever]

I am not sure how they would justify including the Flex owners in the exchange (relatively new programs) and no owners before those programs. It does not make any sense.

It makes sense because Flex points are what Vistana now sells. The new shiny thing that is generating sales.

 

[DannyTS]

It makes sense because Flex points are what Vistana now sells. The new shiny thing that is generating sales.

It still does not make any sense to me. They would discriminate for example againstathe owners that bought 3 years ago from the developer (when these programs did not exist) and favor those that bought 2 years ago because they just happened to buy what the company is currently selling.

 

[mjm1]

I am not sure how they would justify including the Flex owners in the exchange (relatively new programs) and no owners before those programs. It does not make any sense.

I agree. Whatever they do they will want to maximize their market. That’s why MVC allowed prior weeks owners to enroll their weeks in the DC program. It got those owners exposed to DC and many of them have since bought points to supplement their weeks. It also provided instant inventory for all DC owners to access. I would think they will want to accomplish the same thing here.

Best regards.

Mike

 

[VacationForever]

It still does not make any sense to me. They would discriminate for example againstathe owners that bought 3 years ago from the developer (when these programs did not exist) and favor those that bought 2 years ago because they just happened to buy what the company is currently selling.

People who bought directly from Vistana (and mandatory weeks) will still have Star Options to internally book within the system. They may offer an olive branch out to those who bought from Vistana to convert to Flex system for a small fee to play in the sandbox.