Original Message:
Re: Marriott Vacation Club "Destinations" - What I Like and What I've Done (by Den):
From a Legacy Owner's perspective:
In a simple case under Destinations, Vacation Club (VC) offers an existing Newport Plat week owner 3,475 pts for use of his week. The owner takes the offer and Vacation Club rents the week for 4,725 Dest Pts. Lost in all this is the fact that the renter had to buy 4,725 points (a $52,000 purchase at $11 per pt) to acquire the rental. VC acquired my 3,475 pts week (an equivalent $38,000 purchase) to provide the week to the user.
This is a great deal for Marriott Vacation Club, the seller of Dest Pts, as they make a 37% trading profit by using inventory acquired from legacy owners - not a bad commission for initiating the trade. And, this is the "gift that keeps on giving" as they can do this every year. Marriott Vacation Club does not need to develop new properties so long as legacy owners will provide the inventory.
What if the free market caused another entity to offer trades at more favorable exchange rates for legacy owners? I do not think this entity is Interval due to the cozy relationship with Vacation Club. Also, it seems that the introduction of Destinations has lessened inventory available for trade thru Interval. How can we free Interval to act in the interests of Legacy owners?
Any thoughts?