RTU and Deed

Haven't all of the big companies switched to points?

shaunl25 wrote:

...from hearing from many people I can't really get a sense of which is better. That's why I was asking about the pros and cons of each rather than a definition.

You need to examine what might work better for you; one is not inherently "better" than the other. Points programs, deeded ownerships and / or RTU contracts all have annual fee obligations, for which you should (in general) anticipate a 4-6% annual increase.

Deeded fixed week "pros" include guaranteed access at known dates in pre-determined and known resort units. Some people like that guaranty, predictability and certainty (I include myself among those people). Deeded week "cons" include the "perpetual" nature of deeded ownership. Points and RTU contract "pros" include more flexibility in scheduling than deeded ownership provides --- and often more location options, but the "con" is that there are absolutely no guarantees regarding date, location, or unit size AVAILABILITY. I am not a fan of any such "roll of the dice" uncertainty, but everyone is different. The bottom line determinant of what is "better" is what works "better" for your particular schedule, date flexibility and geographic preferences.

Yes, most of the big chains (e.g., Hyatt, HGVC, Marriott, Wyndham) have adopted "points programs", but...all of them still also have older deeded ownerships (and rest assured that the owners of prime deeded weeks have NO interest in relinquishing their deeds and losing their guaranteed access for the reservation uncertainty of "pure points"). This last fact obviously relates very directly to the issue of "availability". For example, you are not likely to get into a prime unit / week with your "points" if / when such prime unit weeks are already owned and utilized by deeded owners with "perpetual" ownership and its' associated guaranteed access. School vacation weeks, President's week, Easter vacation, etc. are all usually very difficult to reserve under "points" programs, since there is simply more demand than available supply.

Assess these differences and figure them into your evaluation of which (...if either) option would work best for you personally. Good luck.

shaunl25 wrote:

Maybe I should clarify. I know what the two are, but from hearing from many people I can't really get a sense of which is better. That's why I was asking about the pros and cons of each rather than a definition.

They both have their pluses and minuses. An RTU contract has an end date. I like this because I know I will be guaranteed a way out of the contract. Also my RTU lets me accelerate weeks from the end of my contract - so I can use two units one year by paying an extra maintenance fee.

A deeded property contract could go on indefinitely. That could be a problem if your financial situation changes. A deeded week could be a fixed week or a floating week. I like having a fixed week every year - I don’t have to wake up early months before to reserve the week I want, with the chance of it not being available.