Speculation About Marriott's New Timeshare Structure [merged]

[Pro]

I hope RCI doesn't roll out their new program on the same day. I don't think there will be enough hours in the day for me to read all the responses.

Joe

 

[DanCali]

We met with our sales rep and a corporate sales rep yesterday. The new program becomes effective June 17, 2010. On that date all unsold property is rolled into a trust. Those weeks will then be the base of a points system. New customers will buy points. Each of the weeks or partial weeks available in the trust will require points to use. This program will work much like the points to use a Marriott Hotel. The weeks we own can be used as we currently use them, rolled over to hotel or time share points. The points for our weeks can them be used on a daily basis versus our current weekly basis.
There will also be some type of maintenance fee accessed to all new customers bases on the total maintenance required for all of the resort weeks in the trust.

Marriott is also dumping II. The theory is that must Marriott customers want to stay at Marriott timeshares. Those who belong to II will have the opportunity of depositing their weeks at II for exchange, but Marriott will not require one to go through II.

I guess your sales rep reads TUG...

 

[AceValenta]

Your kidding right ?
I have friends still and yes, they will close for a few days for training. They
are training now briefly also.

Not kidding at all Fletch.....There isn't anything in the news nor have there been financial disclosures to the investors. This is a large project and someone, somewhere, somehow would have produced some solid information about the project.

I am skeptical until there is proof of the facts....

1. There is training....Even if there has been some minor training, people need to know what to say and how to say it to make it an effective sale.
2. Brochures and multimedia items need to be written, designed, printed...
3. They have to get approval from states where they are doing business.
4. There hasn't been any type of release to news or financial disclosures.

All we have now is speculation and rumors....Nothing factual. I know you worked for Marriott and now work for another company selling the same product but who benefits from perpetuating the rumors?

I will not believe it until it is fact and see the proof. There are too many cracks in organizations to keep secrets this large this quiet. And if this was a great product Marriott would be leaking info to build the hype and make people want to buy this new and improved product, not sell weeks before they are gone.

In other words, they would squelch the rumors and make a media blitz to make selling this product easier.

Until there is proof positive that a shooter was in grassy knolls, this man acted alone.

Until there is factual proof that this program exists, it is pure rumor.

 

[PerryM]

Hey EOY owners - welcome to Misfit Island....

Of course Marriott will tell EOY owners to take a hike - that probably means there is no such thing as EOY memberships.

These are but the first Marriott owners to be discarded like one shoe that has lost its mate.

There will be other cold-blooded actions taken against other owners.

Let's not forget that the primary reason for this new scheme is to enrich the fortunes of the Marriott stockholder.

Sure Marriott gets a lot of business from owner referrals but that will probably be offset with a bounty set up for recruiting fellow owners to convert, and that will easily offset the "Misfit" owners who just don't belong in this new wonderful program with good folks like us.

So get a list of friends and family you can turn in for assimilation.

"Resistance is Futile" - I said that...

 

[RedDogSD]

Hey, honestly, if they do decide that EOY members cannot join the Points program, that may not be a bad thing for those of us who want to continue trading with II. There will be plenty of EOY owners depositing their weeks into II and those of us who do not go into their program can still have great trades.

I don't think they will do that, but I don't care if they do.

 

[PerryM]

Rip Eoy

Hey, honestly, if they do decide that EOY members cannot join the Points program, that may not be a bad thing for those of us who want to continue trading with II. There will be plenty of EOY owners depositing their weeks into II and those of us who do not go into their program can still have great trades.

I don't think they will do that, but I don't care if they do.

The day Marriott kicks EOY out of their new system is the day an EOY Marriott units becomes worthless on the resale market.

These weeks can't ever be used in the new great system.

All those salesreps who espoused the virtues of "one year here and one year somewhere else" will quickly purge those thoughts from their memory.

RIP EOY...

 

[RedDogSD]

The day Marriott kicks EOY out of their new system is the day an EOY Marriott units becomes worthless on the resale market.

These weeks can't ever be used in the new great system.

All those salesreps who espoused the virtues of "one year here and one year somewhere else" will quickly purge those thoughts from their memory.

RIP EOY...

Well then, I am looking forward to getting another Ko'Olina EOY and an MOC EOY on the resale market when they become worthless. Since I will use them, and not trade them, I will be happy.

I don't see them becoming worthless any time soon. I don't think that their Market value is set because of their ability to trade within some new Marriott system.

 

[PerryM]

Well then, I am looking forward to getting another Ko'Olina EOY and an MOC EOY on the resale market when they become worthless. Since I will use them, and not trade them, I will be happy.

I don't see them becoming worthless any time soon. I don't think that their Market value is set because of their ability to trade within some new Marriott system.

Of course folks "helping out" EOY Marriott owners for $1 on eBay will do well.

There will be all kinds of opportunities from the misfortunes of others - that's why we are here isn't it?

But I do believe the average Marriott owner who is told he can't belong to the new club will just assume $1 is all their unit is worth; and I think they are right.

 

[rsackett]

Of course folks "helping out" EOY Marriott owners for $1 on eBay will do well.

There will be all kinds of opportunities from the misfortunes of others - that's why we are here isn't it?

But I do believe the average Marriott owner who is told he can't belong to the new club will just assume $1 is all their unit is worth; and I think they are right.

After the anouncement comes out, anybody that owns a Platinum season at a mainland USA beach front resort, I will pay you the expected $1 ebay price and you can save the ebay listing fee.

Ray

 

[GregT]

Well then, I am looking forward to getting another Ko'Olina EOY and an MOC EOY on the resale market when they become worthless. Since I will use them, and not trade them, I will be happy.

I don't see them becoming worthless any time soon. I don't think that their Market value is set because of their ability to trade within some new Marriott system.

We need to coordinate our efforts so that we're not bidding against each other for those resale MOC and Ko Olina EOY's for a buck.

Then I will put in a Sound of Music spoof.

Ace, Lee Harvey had to have help. Why didn't he take the shot when JFK was on Houston street?

Also, I don't think Kagan should be confirmed.

Finally, I think BP is a good buy right now, but they should've done more to prevent it.

That should get this thread to 2,750 in no time.

 

[m61376]

We met with our sales rep and a corporate sales rep yesterday. The new program becomes effective June 17, 2010. On that date all unsold property is rolled into a trust. Those weeks will then be the base of a points system. New customers will buy points. Each of the weeks or partial weeks available in the trust will require points to use. This program will work much like the points to use a Marriott Hotel. The weeks we own can be used as we currently use them, rolled over to hotel or time share points. The points for our weeks can them be used on a daily basis versus our current weekly basis.
There will also be some type of maintenance fee accessed to all new customers bases on the total maintenance required for all of the resort weeks in the trust.

Marriott is also dumping II. The theory is that must Marriott customers want to stay at Marriott timeshares. Those who belong to II will have the opportunity of depositing their weeks at II for exchange, but Marriott will not require one to go through II.

I could buy most of what you posted. But a month or two ago Marriott just signed a new, long term contract with II. So they are not severing their relationship.

That does cast a doubt on the rest of what you were told.

 

[m61376]

The day Marriott kicks EOY out of their new system is the day an EOY Marriott units becomes worthless on the resale market.

These weeks can't ever be used in the new great system.

All those salesreps who espoused the virtues of "one year here and one year somewhere else" will quickly purge those thoughts from their memory.

RIP EOY...

Or the flip side may be true- IF Marriott eliminates home resort priority, I can see an increased demand for certain EOY weeks.

 

[GregT]

I could buy most of what you posted. But a month or two ago Marriott just signed a new, long term contract with II. So they are not severing their relationship.

Unfortunately, I could see what our mysterious friend from Brighton is saying.

We don't know the terms of the renewal, and it is very possible that Marriott renewed the affiliation with Interval International, but eliminated/curtailed the contractual requirement that they deposit inventory into II (since they now have an alternative in an internal exchange system). It makes sense that Marriott needs affiliation with some trading company for those owners that are orphaned or choose not to join, and II is established (and probably paid something to Marriott for that privilege).

We know Marriott is still depositing inventory into II (at the moment) because of the recent slug of MFC weeks and likely will for the foreseeable future since they likely have more excess weeks than any new system can absorb. It will be interesting to see if the pace of bulk deposits continues after "the announcement", or gradually lessens over time.

Or our friend from Brighton may simply be off the mark, which I hope because my Worldmark can see lots of Marriotts.

All the best,

Greg

 

[PerryM]

The cook from Hell's Kitchen...

Or the flip side may be true- IF Marriott eliminates home resort priority, I can see an increased demand for certain EOY weeks.

95% of Marriott owners have little desire to learn the minutiae we kick around here daily. All they will know is that their EOY can't participate in the new exchange system and they are left in the cold.

I doubt they will find eBay folks willing to tell them that they are nuts for listing their unit for $1 and anything more than that will have lots of buyers informing them that their EOY is worthless.

It will take a while for all of this to sink in and as more and more inventory moves to the new system it will be harder and harder to snag anything of value either EOY or EY for those of us who don't convert.

I see no surprise upside to any scenario I can cook up - just a big flop...

 

[PerryM]

Pole dancing 101

After the anouncement comes out, anybody that owns a Platinum season at a mainland USA beach front resort, I will pay you the expected $1 ebay price and you can save the ebay listing fee.

Ray

Sorry, Marriott will feel like its at a strip club and doesn't have enough $1 bills....

 

[RedDogSD]

I doubt they will find eBay folks willing to tell them that they are nuts for listing their unit for $1 and anything more than that will have lots of buyers informing them that their EOY is worthless.

One points.....TS owners, Marriott or otherwise, almost never put their units up for $1. They have high starting prices, reserves and other things. Their units rarely sell. The ones going for $1 are from the Resellers like VI (who I like). So, the question is, can those guys convince enough of the Marriott owners to let them list their units with them.....

I hope so. I will gladly pay $2 on Thursday for a Hamburger today.

 

[rovitm]

I have only been keeping up with this topic for a couple of weeks. Around a month ago I inquired about a EOY in Newport. I already have a EOY resale. My Marriott rep provided the pricing and I told him I would think about it.

I called my rep today and told him I was still thinking about it. I asked him should I buy now or wait two weeks until the points system comes out. Of course he said to buy now. By buying now I would enjoy the best of both worlds and I would be very happy. I asked him if I do buy now will there be a fee to convert and would it be the same for my resale. He told me he did not know how much it would cost. I said it would be crazy to buy now not knowing the costs it may be to convert and not really knowing how I would benefit from it. He did tell me that I will not be obligated to convert the resale week and had nothing else really to say.

This is my last post on this topic until the change occurs. My rep got back to me today and he said he spoke to his Director of Sales. He confirmed everything we knew about no more EOY being offered after the 16th. He said his Director told him that I would be much happier buying now rather than later. It could all be a ploy to get me to buy but I am not sure how they could get away with this if EOY were not to be included in the new program.

 

[indyhorizons]

Hey, honestly, if they do decide that EOY members cannot join the Points program, that may not be a bad thing for those of us who want to continue trading with II. There will be plenty of EOY owners depositing their weeks into II and those of us who do not go into their program can still have great trades.

I don't think they will do that, but I don't care if they do.

Ditto RedDog, Ditto.

 

[PerryM]

Odd + Even = Whole - timeshare math 101

One points.....TS owners, Marriott or otherwise, almost never put their units up for $1. They have high starting prices, reserves and other things. Their units rarely sell. The ones going for $1 are from the Resellers like VI (who I like). So, the question is, can those guys convince enough of the Marriott owners to let them list their units with them.....

I hope so. I will gladly pay $2 on Thursday for a Hamburger today.

Plenty of $1 timeshares on eBay and other places.

Just because an EOY is worthless to us doesn't mean it's worthless to Marriott.

Marriott created the EOY and it can simply put an even and odd together and magically have an EY to sell at full price/points. The ROFR allows Marriott to easily decide when to snatch up an odd or even to make a whole.

To me this is the main reason to bar EOY from their new system - they can make their own whole timeshares out of our discarded parts - timeshare recycling. Hey, everyone says Marriott is a smart company - right?

There are a lot of reasons for Marriott to disparage the resale market and they all come back to profits for their stockholders.

P.S.
EOY owners - expect a post card from Marriott making you an offer you can't refuse....

 

[JimIg23]

hey, hey, hey. slow down on the $1 EOYs....... I have two of them. I dont see them losing their value that quick since they still are good weeks to own and can trade in II. However, I've done the math and even if I sold them for $2, with all the lock offs, trades, ACs, etc, I would still come out paying less than most nice hotels for all the weeks I have used.....

 

[taffy19]

This is my last post on this topic until the change occurs. My rep got back to me today and he said he spoke to his Director of Sales. He confirmed everything we knew about no more EOY being offered after the 16th. He said his Director told him that I would be much happier buying now rather than later. It could all be a ploy to get me to buy but I am not sure how they could get away with this if EOY were not to be included in the new program.

To me no more EOY being offered after the 16th means something completely different than that EOY owners cannot convert their EOY deed in points. There would be a revolt and certainly by the direct customers. It would cost Marriott too much in court. JMHO.

I also believe that EOY contracts will not go to zero and certainly not at the popular places at the right season. People would snatch them up for their personal use. I would too if I were younger.

 

[taffy19]

Plenty of $1 timeshares on eBay and other places.

Just because an EOY is worthless to us doesn't mean it's worthless to Marriott.

Marriott created the EOY and it can simply put an even and odd together and magically have an EY to sell at full price/points. The ROFR allows Marriott to easily decide when to snatch up an odd or even to make a whole.

To me this is the main reason to bar EOY from their new system - they can make their own whole timeshares out of our discarded parts - timeshare recycling.

There are a lot of reasons for Marriott to disparage the resale market and they all come back to profits for their stockholders.

Perry, do you own Wastegate by any chance? From what I read here is that they are a bad company and almost going under but I don't believe that Marriott would stoop that low as they have a big loyal customer base following so why would they screw that up?

You just like to stir up the pot and you are doing a good job and make the thread interesting to read.

 

[PerryM]

Perry, do you own Wastegate by any chance? From what I read here is that they are a bad company and almost going under but I don't believe that Marriott would stoop that low as they have a big loyal customer base following so why would they screw that up?

You just like to stir up the pot and you are doing a good job and make the thread interesting to read.

We own a lot of timeshares and use or rent all of them.

I still think that MVCI is in trouble and the reason it seems to be chucking 20+ years of sales to try a new pony. I can't prove that but I just can't think of a worse time to approach 400,000+ owners and demand more money so they can continue vacationing at Marriotts.

A simple exchange system with no price gouging or massive retraining of 400,000 families I can see.

But to bet the farm on an unproven system I just don't understand right now.

Maybe things will become crystal clear on 6/15 - 6/17, 2010.

 

[DanCali]

Let's not forget that the primary reason for this new scheme is to enrich the fortunes of the Marriott stockholder.

But if we argue this is insignificant to Marriott, but significant to MVCI (hence no shareholder disclosure required) then how will this enrich the MAR shareholder?

 

[timeos2]

The hey days may ave been brutal if you bough into the hype

Perry, do you own Wastegate by any chance? From what I read here is that they are a bad company and almost going under but I don't believe that Marriott would stoop that low as they have a big loyal customer base following so why would they screw that up?

You just like to stir up the pot and you are doing a good job and make the thread interesting to read.

At one time Perry trumpeted the worst Wastegate - Planet Hollywood Tower of Terror - as THE best timeshare anywhere & an incredible value (actually talked of it like an investment). Needless to say that didn't work out so well as 90%+ of what was claimed turned out to be fiction and the "value" - especially for rental - at or below zero.

So forgive him if he feels a bit burned by the big boys and promises / claims that turned out to be far from reality. In some ways it may be a backlash that he now finds the Marriott points system a slap at owners. It really is a blip in the landscape compared to tens of thousands "invested" in a losing proposition. The whole timeshare picture has changed from the high flying days and some took it a lot harder than others. His current mantra of "don't buy any timeshare" is a huge change but far safer than the past proclamations had been. The days of touting Destination Clubs and condo hotels are long gone too. They all had their day here and people may have been seriously burned if they bought in.

This is a great place to share ideas and suggestions but remember what you pay and that the real money is gone if you decide to buy into the latest "best thing". Hard lessons learned when things change.