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Re: Marriott Going to Point Syst (by R Michael F.):

Alot has been made of Marriott's new Destinations plan. I have read with great interest the many comments on this forum and other sites for several weeks. I have also reviewed the Marriott Vacation Club Destinations public offering statement - and have discovered numerous issues that are disconcerting. Clearly several of these points are not being fairly (expressly) disclosed by Marriott to existing owners looking to "upgrade" or new buyers.

While the plan may appear to offer more flexibility on the surface - if one takes a closer look at the "Destinations differences (shortcomings)" compared to the "legacy" product - it is difficult to see how the Destinations program is a better product for an existing owner....or a new buyer.

1.No deeded interest or ownership in a specific resort property.

2. No proprietary usage in any particular season.

3. Loss of voting rights in property association. (Legacy owners agree to not exercise any vote in the Owners Resort Association that is MVCEC's reasonable discretion, detrimental to the Destinations program including voting to limit or terminate the owner's resort participation in the Destinations program.)

4. Inability to "trade up" lesser demand time weeks.

5. New point buyers (and existing owners using points) will have restricted use to all properties developed over the last 25 years as these properties are "legacy" properties. The vast majority of timeshare weeks associated with these properties/ owners will not contribute or participate in the Destinations program. This is especially true for high demand season weeks in high demand resort locations. There simply is no real incentive for owners with high demand weeks (i.e., Platinum and Gold season weeks) in high owner usage resorts to deposit/ assign their weeks for points into the Destinations program).

If there are no/ minimal legacy weeks at legacy resorts assigned for points then there are no/ minimal point usage possibilities at these legacy resorts.

6. Inability for current or new owners to sell their Marriott Destination points based on ambiguous and restrictive resale policy. Do you really want to own a product you can't sell? Do you really want to buy from any company that intentionally designs its product so that there is not a secondary market for it?

7. Current owners must purchase additional points to address the premium difference charged by Marriott to exchange like demand season for like demand season at same or similar resorts using the Destinations exchange program.

8. More expensive maintenance fees.

9. Marriott can arbitrarily adjust point values without adjusting owner's point values.

10. Marriott creates a discriminatory "class system" for owners based on the number of annual points an owner receives in their Destinations account. The more money you spend with Marriott, the better the chances you will receive your exchange request.

11. Legacy owners participating in the Destinations program will lose the money paid to join the plan should the owner association for a specific "legacy" resort elect to hire a different management company i.e., Hilton. Hyatt, etc. to manage the resort on its behalf.

12. For future buyers, Interval International fees are no longer optional. The cost of this feature is "layered" into the Destinations annual member fee.

While the new Destinations program may "on the surface" offer a certain level of increased flexibility, the program has several significant shortcomings and disadvantages that unfortunately give the" short end of the stick" to current owners and future buyers.

As for new owners I truly believe they are purchasing an inferior product compared to the "legacy" product. Certainly these unsuspecting buyers will be quite surprised (frustrated) when attempting to use their points at the high demand legacy properties.

In essence, because of these issues, it is truly disingenuous for Marriott to say the Destinations program will offer a better timeshare experience. The program may offer a more profitable way for Marriott to develop its timeshare plan going forward - but as far as providing families with a better vacation experience - I am very skeptical.

Each disadvantage noted above is an advantage for the legacy product.

That said, it is hard to imagine that there will not be a fairly robust resale market for legacy weeks "after the dust settles" and Marriott point owners experience some of the challenges brought about by Marriott splitting its timeshare program into two different segments. With 400,000 legacy owners and in excess of 500,000 legacy weeks in the marketplace, Marriott's ability to "shut down" the resale market is highly unlikely to occur. Certainly any comments that Marriott has shutdown the resale market is very premature.