The Cons of Timeshare Ownership

This will be brief. I have identified the 3 largest disadvantages to timeshare ownership:

1. Timeshare properties do not increase in value like traditional real estate.
2. There is a risk your annual maintenance fees will increase significantly over time.
3. If your resort is not part of a club, you may get locked into vacationing at same resort every year. However, if you join an independent exchange company (such as Interval International or RCI) you can solve this problem (but with an added expense).

If you are considering buying a timeshare, ask lots of questions and be prepared for surprises at the "closing".  It is never too late to back out. Even after the closing papers are signed, there is a time period you can cancel (rescind) your timeshare contract. Timeshare rescission laws vary from state to state. So if you are having second thoughts, or you have done research after the signing that has made you change your mind, you do have options.

Marriott Vacation Club Destinations Points - demystified

I have read many blog posts and comments and have noticed there are many Marriott timeshare owners dissatisfied with the new Destinations program.

Many feel that Marriott has taken away privileges they had, like access to new properties, and have made them feel that they need to get more points (and a higher tier) just to enjoy the same benefits that they always had available. For example, if you don't convert your deeded week into Destination points and buy additional trust points, and Marriott builds a new property, since they are only selling points now, and not deeded weeks, you would not have access to this new property. This gives a feeling of being forced to buy into the Destinations program.

 

Two Pools of Inventory
In the Marriott Destinations program, there are 2 pools of  inventory (trust and exchange). Exchange inventory is deeded weeks and trust inventory is weeks that Marriott owns.  Marriott no longer sells deeded weeks, and they are trying to get deeded weeks owners to change to points and trust points. The price to do this seems to vary, and the buyer should definitely beware.  If it sounds too good to be true, it probably is, as the saying goes. 

 

The Marriott owners with deeded weeks, can "elect" for Club Points in any given year. These points can be used to reserve Marriott Vacation Club stays for any number of days that they choose. These "enrolled" Club points can only access the available inventory of resorts and dates that are made available from owners turning their deeded weeks into Club Points. This is also known as the Exchange Inventory.  So, what happens with new properties that Marriott builds? All of this inventory will be in the Trust inventory and not in the Exchange Inventory.

 

At a sales presentation, they will try hard to get you to not only convert your deeded week into Club Points, but they will try to get you to buy more points (Trust Points). With these points you can access the Trust Inventory (unsold weeks, resale weeks and re-acquired weeks). This is the inventory that Marriott owns, not the owners. It will cost a lot more to own this inventory, and if you don't want to pay for this, they will try very very hard to dissuade you.

 

It is not what they are telling you, it is what they are not telling you

• The total amount of available vacation weeks is now split many different ways: Exchange Inventory, Trust Inventory, Interval International Inventory, Redweek inventory...

• Your annual fees will increase if you convert, and this is often not mentioned until you are signing the papers. For more fees, will you get more advantages? Probably not.  The biggest difference with the points program is the ability to stay less than 7 days, and if this greatly appeals to you, then  maybe you should look into converting.

• If you elect to use your week as points, and change your mind, and want to stay at your home resort, you can't. You won't have enough points.  The amount of points you are given, in exchange for your week, will not be enough.

Marriott can change the program again and again
Many timeshare owners bought their week or weeks under the assumption that the system in place would allow them to enjoy a certain type of vacation and have the flexibility to stay at new and exciting places (through exchange companies like Interval International). With the radical change to the points system, Marriott is potentially changing the inventory available to those that don't convert their weeks.  And for those that do convert and buy into the Destinations program, who is to say or promise them that the points needed for certain resorts won't change, or that the fees won't radically increase over the years?  This is a huge concern for many, because many don't trust Marriott anymore.

After putting a lot of research and thought into this situation, I believe staying within the Interval International exchange program is best.  Interval International is still better than Marriott Destinations.

What is Redweek?

Redweek is a website, and they proclaim they are the largest online marketplace for renting, buying and selling timeshares. They also have 2 million registered users.

This is yet another place that timeshare inventory can be found. You can view availability and resorts for free. Otherwise, membership is required (currently $14.99 per month). But there is no commission when a transaction takes place.

If you are unable to use your week at your home resort, and you have not deposited it with RCI or II, you can try to sell it on Redweek.  With Interval International, you could use the "Request First" method, and if you don't get confirmed where you want to go, you still have your week.

If you have been confirmed for a week through RCI or II (Interval International), you CANNOT sell this week on Redweek. If you read the terms for both of these, it states you cannot do this (I checked).

If you are looking to BUY, it is pretty easy to research resorts and contact owners with questions.  If you are looking to SELL your week, it is a good idea to research your resort and find out what the "going price" is so you can price your week to sell. 

For a list of Frequently Asked Questions, you can go to the Redweek page.

Marriott Vacation Club Destinations Review

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My husband and I attended a Marriott Vacation Club Destinations sales presentation in 2013 while on vacation at Marriott’s Barony Beach Club on Hilton Head Island (obtained through and Interval International exchange). We were shocked to discover the significant changes Marriott had made to timeshare ownership and the creation of a new exchange system. We are deeded week owners (of a Marriott Vacation Club timeshare property in Orlando), and we learned about the Marriott Vacation Club points system Marriott rolled out in 2010.    
 

The MVC Destinations program is pretty complicated.  There are deadlines to be concerned about that have a big impact.  Basically, you have to decide by September 30^th what you want to do with your week for the next year.  Once you decide to either use as points, or stay at your home resort, or use Interval International, you are locked into that choice.  Personally, it is difficult to assess that early, without knowing availability, school vacations (calendars for the following year aren’t available usually), airfare options etc.

 

We were VERY close to buying into this new program, and at the closing found out a few BIG things they hadn’t told us yet (for example: the annual membership fee/dues to use the Destination points program).

 

I have listed some Pros and Cons:

Pros

•Potentially eliminate Interval International annual dues and exchange fees (if you decide not to use II)

 

•Potentially more successful trading to Marriott properties (this is not quantifiable and will decrease as inventory goes down, if more people buy into the Destinations program)

•You can book less than 7 nights to stay at a Marriott timeshare resort.

Cons

•Your ownership week may be worth less than 1 week at another property when booking with points. It may require 2+ weeks of your ownership to book 1 week at a different property.

•No advantage to enrolling if you plan to stay at your home property

•As more and more owners join the Destinations Club program, inventory will become harder to obtain.

 

•The cost of converting to points (and possibly trust points)

 

In Summary

The biggest “Con” would be the amount of money you have to pay, just to trade “internally”.  You can only trade your week for points to use at other Marriott Vacation Club resorts.  There are so many more resorts and locations available through Interval International. 
 

The biggest "Pro", in my opinion, would be that you can stay fewer than 7 days.  But this is not a very big “Pro”, because many resorts are far enough away, you would want to stay a week, and not less (not economically or logistically sensible to stay a few days, when either spending a lot of time or money on transportation to the resort).  A way around this would be to stay at hotels and not timeshare resorts for shorter stays (you can use Marriott Rewards points to stay for free).

Maybe Interval International is not so bad after all!

 

 

Increasing your Odds

When you make an exchange request, there can be a lot of waiting. Waiting for a confirmation so you can take the next step in planning your vacation can be frustrating. 

By being willing to accept smaller accommodations than the villa you requested, you increase your chances of getting what you want. 

For example, if you own a 2-Bedroom villa, you can request a 1-Bedroom villa, which may have better inventory and odds of getting into.

When our family recently vacationed in Boston, we stayed a week at the Marriott Custom House, using this strategy. While there, I overheard a staff person talk about how difficult it is to stay at the Custom House using Interval International. They were talking about the advantages of going to the Marriott Vacation Club Destinations program. I disagree with this.  I had no problem getting into Custom House during their peak season (summer) using Interval International.  I think some of the sales tactics are misleading and statements are made to persuade Marriott owners to switch from Interval International to the Destinations program. In theory, the more Marriott owners buy into the Destinations program, the less inventory there will be deposited at Interval International.  This should be a large concern for those that rely on this method of trading/exchanging.  But I digress...

By requesting a smaller accommodation size, this will also allow you to get into a property that doesn't offer anything larger than a 1-Bedroom or a Studio.  Of course if your travel party it too large, this would not be smart to do.  But some 1-Bedroom villas can accommodate more people, especially children, and should be considered.

Do some research as well, by calling the resort and asking if they have roll away beds available. And there are websites that show floor plans, for example, Marriott Vacation Club resorts show floor plans (with square footage).

Deposit First vs. Request First

Once you deposit your week with Interval International, it is gone.  So if you choose Deposit First, you cannot stay at your home resort that year. Unless you choose Request First.  If you choose this option, Request First, you can still stay at your home resort if you don't receive the exchange confirmation you are looking for. 

That being said, when using Request First, the requested exchange must be prior to or the same as the dates of the week you are relinquishing (your home week). Because of this, you have a narrower window of time in which to take your vacation.  The Deposit First method offers the largest window for exchange.

While staying at Marriott Custom House this past summer, I went to an owner's only "seminar".  In my opinion, it was a Marriott Vacation Club Destinations sales presentation with "tips" throughout. The presenter recommends "Request First", suggesting that you will have more "trading power". However, when I called Interval International, they said this is not the case.  But you do retain the ability to stay at your home resort if you are unable to get confirmed in a place (or a date) that is acceptable to you.

In summary, Deposit First offers the most flexibility, and Request First offers the most security.

Note: If you choose Request First, and your exchange request is not confirmed, and you do not wish to stay at your home resort, you must DEPOSIT your week at least 60 days prior to the check-in date  to avoid a late-deposit restriction.

Deposit First:

Request First:

 

I realize this post is specific to Interval International members.  That will not always be the case on this blog.