Wyndham Timeshare Owners Outraged!

PRLog (Press Release) – Dec 19, 2008 – Wyndham Corporation, one of the world's largest in the hospitality industry, considered to be a leader in timeshare sales, has outraged owners, as indicated in countless forums and blogs across the internet, with recent changes to their ownership.  To understand the changes and why owners are so upset one must understand how the Wyndham system works.

When someone buys their timeshare from Wyndham they receive a deed for the portion of the property they purchased.  The value of their ownership, however, is represented by points.  The more timeshare interest one buys the more points that are allocated to their account. The points allocated to ones account can be used to book a reservation at any Wyndham resort.  This seems to be a good concept as it creates flexibility that enables an owner to use his vacation at many locations and times without being locked into the traditional fixed week at one resort.

A sales tool that has long been used to entice owners to a higher level of ownership, thus creating ongoing sales to existing owners , is their VIP program.  The VIP program has three levels, VIP, VIP Gold, and VIP Platinum.  Each level offers significant benefits not available at the level below, enticing owners to purchase up to the next level of ownership.  It is with regard to the VIP benefits owners were sold that now leaves many feeling betrayed by the company enticing them to buy.

Over the past months, as many relate, Wyndham has "systematically eliminated" VIP benefits on which owners were sold.  For example, a benefit promised to VIP Platinum owners has been unlimited free guest certificates.  Rather than paying the customary fee of $25 to add a guest's name onto a reservation a VIP Platinum owner received an unlimited number of these certificates free.  However, it was recently announced that VIP Platinum owners would no longer receive an unlimited number of free certificates.  Instead they receive 15 per million points owned and following use of the allotted certificates will pay, what many consider an exorbitant, fee of $129.  If an owner logs into Wyndham's website they may enter their guests name and receive a guest certificate at the reduced rate of $99 per certificate.

In addition to the foregoing, what seems to be the proverbial "straw that broke the camel's back" is the elimination of what is referred to in each owner's Trust Agreement as a "right".  It has long been the "right" of every owner to sell or transfer his or her points to another owner if, for some reason, they were not going to be able to use them before they expired at year end, provided each owner's account is in good standing.  This provision has proven to be very much appreciated by owners as it allows an owner who would otherwise lose the value of their unused vacation ownership to at least receive some compensation from another owner who may be able to put the points to use.

The following comment is representative of numerous comments found across the internet: "I have often told people that although it was expensive to purchase, I really enjoyed my ownership, but no more. I will tell every guest I meet at my 6 weeks of Wyndham vacations a year, to run not walk away from the the purchase. How can they possibly expect to sell this crappy program anymore to anybody? There aren't that many
suckers left in the world to buy this program with all the benefits stripped away."  Frustration indeed!

Wyndham's problems, however, do not seem to be limited to their timeshare owners.  The following was reported just this week in the Orlando Sentinel:

"DAYTONA BEACH, Fla. - Wyndham Vacation Resorts faces a new lawsuit over allegations of financial mismanagement at the Ocean Walk Resort in Daytona Beach.

The Ocean Walk Resort Condominium Association filed on Tuesday a lengthy civil suit, listing 50 counts over how the beachfront condominium towers were managed during the past several years.

According to the suit, filed in circuit court in Volusia County, Wyndham manages time-share units in both towers of the Ocean Walk complex, but the condo association claims that Wyndham misused money, shortchanged the association and hasn't relinquished control of the accounts.

The companies are already in litigation over other contractual disputes."

Perhaps the best advice for anyone looking to buy a timeshare is do your due diligence.