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Re: Marriott Going to Point System (by Gregory B.):

I think peterp151 has it right. Owners need to be aware of the many perils associated with points- based timeshare programs. In the timeshare industry, there are already many sad examples of manipulation and even fraud associated with points-based programs. That is why I have always avoided those programs in the past. Buyers beware.

After much research on this topic, I still don't consider myself an expert by any means. But I have come to the conclusion that this new points program is about three things:

1. Marriott wants to create new revenue opportunities under the banner of "flexibility". But that flexibility comes at a cost for sure. In addition to new fees, Marriott will give you fewer points than is required for you to trade back into your home resort during your season (called "points skimming"). The other points-based timeshare programs do not skim points.

2. Marriott wants to create a new mechanism to dump undesirable weeks in undesirable locations. Because they were hard to sell via the deeded week method, this new points method has been devised. But the net effect will be to create even more competition for the desirable weeks in the desirable locations that people really want to visit.

3. Marriott wants to gain greater control over the resorts and the processes. Part of the points enrollment contract states that you agree to limit your proxy voting rights. You are free to vote so long as you never vote against Marriott. If enough owners enroll in the points program, then Marriott will take complete control of the board of directors. How's that for control?

For owners who want to visit their home resorts and do relatively little trading, it is hard for me to see how enrollment in this new points program makes any sense. I am this type of owner. My greatest fear is that the deeded week owners will now find it more difficult to reserve their desired week at their home resort because of inventory being diverted away for points owners.

Some deeded week owners deliberately purchased at inexpensive locations that they had no intention of visiting. Their sole focus is on trading. Those owners are in a much more difficult spot now - Marriott has them over a barrel. In this situation, I think enrollment in this new points program might make more sense. It will be the only effective way for you to continue trading into Marriott resorts. But set your expectations properly, as this new points program will not allow you to get the same trades that you have received in the past. Any excess inventory will be allocated to points owners under valuation rules that Marriott controls. I think Marriott did that on purpose. Marriott wanted to eliminate the bargain traders who got a 2-bedroom at Ko Olina in exchange for a lock-off at Orlando. Those bargain trades represented lost revenue for Marriott. The days of bargain trading are gone.