If you’re a frequent traveler, chances are you’ve come across Marriott Vacation Club. It’s a timeshare program that offers its members access to luxurious vacation properties across the globe.
But have you ever wondered how Marriott Vacation Club makes money? In this article, we’ll delve into the various ways this program generates revenue.
The Basics of Marriott Vacation Club
Before we dive into the money-making aspect, let’s first understand how Marriott Vacation Club works. It’s essentially a points-based system where members purchase points that can be redeemed for stays at various properties. Members can choose to stay at one of their home resorts or exchange their points for stays at other resorts within the network.
Membership Fees
One of the primary ways Marriott Vacation Club generates revenue is through membership fees. When someone joins the program, they typically pay an upfront fee and an annual maintenance fee. The upfront fee varies depending on the number of points purchased and the resort location, but it can range from a few thousand dollars to tens of thousands of dollars.
The annual maintenance fee covers things like property upkeep, property taxes, and utilities for all the resorts within the network. This fee can also vary based on factors like resort location and size of the unit purchased.
Exchange Fees
Another way Marriott Vacation Club makes money is through exchange fees. As mentioned earlier, members can choose to exchange their points for stays at other resorts within the network. However, there’s usually a fee associated with this transaction.
The exchange fee varies depending on factors like resort location and time of year. For example, if someone wants to exchange their points for a stay at a popular resort during peak season, they may have to pay a higher exchange fee than if they were staying during off-peak season.
Rental Income
Marriott Vacation Club also generates revenue through rental income. If a member isn’t able to use their points for a particular year, they can choose to rent them out to non-members. Marriott Vacation Club takes a percentage of the rental income as a commission.
Resale Market
Finally, Marriott Vacation Club also makes money through the resale market. If a member decides to sell their ownership, they can do so on the secondary market. However, Marriott Vacation Club has the right of first refusal, which means they can choose to purchase the ownership back at a predetermined price before it’s sold on the open market.
If Marriott Vacation Club chooses not to exercise their right of first refusal, the ownership can be sold on the secondary market. However, there’s usually a fee associated with this transaction that goes towards administrative costs.
Conclusion
In conclusion, Marriott Vacation Club generates revenue through various means like membership fees, exchange fees, rental income, and resale markets. While it may seem like an expensive investment upfront, many people find that the perks and benefits of membership outweigh the costs. Plus, with access to luxurious vacation properties all over the world, it’s no wonder why Marriott Vacation Club continues to be a popular choice for frequent travelers.