Dave,
I understand your interest in establishing this and consolidating the many comments into one thread.
My issues with the Skim are well understood (including by Marriott), and I will try to summarize The Skim as I see it.
For definition, I propose an example if a week needs 4,500 points to book via Marriott. But Marriott offers you 4,100 points if you redeem your week for points. You've been skimmed 400 points, or approximately 10%. We think the average skim is between 7-22%, across all properties.
My key points:
1. Unfortunately, you now have less points to work with to book a new reservation
2. In a points system, the points you have to work with are important, they are the currency to make reservations.
3. You may not have enough points to book a week at your own resort (or to book a "like for like" trade into another resort of comparable demand)
4. When you go to book the reservation you want, you will likely compensate for not having enough points by a) booking 6 nights versus 7 b) travel in a shoulder season c) get a lower valued view d) buy 1,000 points from Marriott for $9,200 e) borrowing points from next year
These are decisions that you make because your points were skimmed, and for each individual that may be acceptable.
Marriott views this trade-off as a "price" for the flexibility you have to book any week, any resort, any length of stay. Other point systems charge fees for reservations, housekeeping, etc. Marriott elected to roll the fees into the skim. They also state that units will sit partially empty and that the spread is to compensate for those nights. The hidden value of your skim can be significant, and dwarf the out of pocket costs we are accustomed to. I use as a bench-mark the $0.40 per point in MFs -- for the person skimmed 400 points above, that $160 annually in hidden cost. For some people it's much much higher.
Marriott's position about an empty room for a night(s) (ie, breakage) is a weak argument as the MF has been paid and Marriott elected not to implement a short-term rental program (like HGVC/Worldmark/Wyndham) to fill those empty rooms. Those systems have highly effective programs to fill empty units, whereas Marriott has permanently priced in these assumed vacancies via the skim.
Points systems are tremendous, and I am a huge fan (I own two of them). Marriott has the best timeshare properties around, in the best locations, and the combination of a point system with those properties promises to be powerful.
How will Marriott benefit from The Skim?
Marriott will profit from the skimmed points -- possibly by renting the remaining night(s), possibly by selling 1,000 point packages @ $9.20 each to the owner who has less points to work with that they should have, possibly by renting points directly to the skimmed owner. Many owners will borrow from next year's points to make up for lost points, which will degrade next year's vacation alternatives.
Many TUGgers feel that the skim is acceptable because Marriott is a for-profit organization, and has developed a points system that appears to be extremely appealing. Many TUGgers who bought their properties for trading object less to the skim because they have enough points to do what they want to do anyway. I am happy for my TUGging colleagues.
The Skim does not affect me personally. I love my fixed weeks and use them for personal use -- if I ever did redeem my weeks for points, Marriott would give me plenty of points to work with. But I had an immediately, visceral reaction to the skim, and it's not changed -- I view it the skim as a hidden, disguised (significant) cost, and not indicative of the fairness I had expected from Marriott.
I had long respected Marriott as a customer-oriented company that took care of their loyal customers. I continue to struggle with what I believe is a strong-arm tactic, required by Marriott if you want to use the new system. It has affected my loyalty to Marriott and I generally am an extremely loyal customer.
All this being said, I have enrolled. Marriott properties are among the best in the world, and I expect to one day be able to rent points inexpensively and use them for reservations. I don't expect to ever redeem my properties for points, and therefore will be just a non-active participant, using the system differently than as designed, but I think effectively for me. This is a personal decision for all, and I wish all the best in their evaluation.
I guess, 30+ days later, it is time for me to move on, and I will.
Best to all,
Greg