Have you ever wondered how Marriott Vacation Club manages to offer luxurious vacation experiences to its members? In this article, we’ll explore how Marriott Vacation Club makes money and what makes it stand out in the crowded world of timeshare and vacation ownership.
The Basics of Marriott Vacation Club
Marriott Vacation Club is a timeshare company that operates on a points-based system. Members purchase points that they can use to book stays at any of the company’s resorts worldwide. Marriott Vacation Club has more than 60 resorts in destinations ranging from Hawaii to Europe, offering members access to a wide variety of vacation experiences.
Selling Points
One of the primary ways that Marriott Vacation Club makes money is by selling points to new members. The company offers various packages with different point allotments and prices, depending on the level of membership and the number of years a member signs up for.
For example, a new member might purchase 5,000 points for $20,000. These points can be used to book stays at any Marriott Vacation Club resort or exchange them for stays at other properties through third-party exchanges like RCI or Interval International.
Annual Maintenance Fees
In addition to purchasing points, members also pay annual maintenance fees. These fees cover the cost of operating and maintaining the resorts, including everything from landscaping and housekeeping to repairs and renovations.
Maintenance fees are calculated based on the number of points owned by each member, as well as the specific resort where they own their timeshare. For example, members who own at a higher-end resort will typically pay higher maintenance fees than those who own at a less expensive property.
Resale Market
Another way that Marriott Vacation Club makes money is through its resale market. Members who no longer wish to use their timeshares have the option to sell them back to Marriott or on the open market.
When reselling a timeshare, the price is typically lower than what the member paid originally. However, Marriott Vacation Club may still make a profit on the resale by charging a commission or other fees.
Exchange Fees
Finally, Marriott Vacation Club also makes money by charging exchange fees when members use their points to book stays at other resorts through third-party exchanges like RCI or Interval International. These fees are typically charged on top of the maintenance fees and can range from $100 to $200 per exchange.
Conclusion
In summary, Marriott Vacation Club makes money through a combination of selling points to new members, collecting annual maintenance fees, operating a resale market, and charging exchange fees. By offering access to luxurious vacation experiences around the world, Marriott Vacation Club has become one of the leading players in the timeshare industry.