The Evolution of the PTC 10X1 Program

[Panzita]

Ok, I think I have a better grasp on the questions regarding the 10X1 program. I believe the issue comes down to certain wording which exists in some contracts that does not exist in others.

Annex 5 item # 21 has changed over the years.

From a Contract from May, 2012

21. “Ten for One”. For every Ten Weeks (Each week consisting on 7 nights) used at any Palladium by paying the corresponding Preferential Rates for the All Inclusive*, the Member will receive one Free All Inclusive Week (7 nights) for two adults valid from April 24th to December 20th , to be used at Riviera Maya or Vallarta Resort & Spa. Such weeks will have an expiration date of 2 years from the day of issue
*Any promotion where the member is exempt of paying the correspondingPreferential Rate for the All Inclusive (such as Benefit Nights) will not count for the 10X1 promotion0630

From a contract from October, 2012

21. Ten for One” Gift Certificates are granted for every Ten Weeks (Each week consisting of7 nights) used at any Palladium by paying the corresponding Preferential Rates for the All Inclusive Fee.[1]
According to the terms and conditions listed in the certificate granted to the Member.
1 Any promotion where THE MEMBER is exempt of paying the correspondingPreferential Rate for the All Inclusive (such as Benefit Nights) will not count for the 10X1 promotion. 18300

And finally the current wording from a recent contract:

21. “Ten for One Gift Certificate” are granted for every Ten Weeks (Each week consisting of 7 nights) “THE MEMBERS” or their contract assigned beneficiaries use at any Palladium Resort by paying the corresponding Preferential Rates for the All Inclusive Fee [Annex 1]. According to the terms and conditions listed in the certificate granted to “THE MEMBERS”.Any promotion where “THE MEMBERS” are exempt of paying the corresponding Preferential Rate for the All Inclusive (such as Benefit Nights) will not count for the 10X1 promotion.
I don’t know if there are any other versions of the 10X1 program, but these examples more than suffice for an analysis.

The first big difference comes between the first and second listed versions. From the contract of May, 2012, the terms of the 10X1 gift certificate are not subject to he terms and conditions listed on the gift certificate as that language is already included in the contract. In this case the dates and locations where the certificates can be used as well as the certificates having an expiration of 2 years are defined and not subject to the qualifications which have since been placed on the gift certificates.

The second major difference exists in the final version where it explicitly states ” “THE MEMBERS” or their contract assigned beneficiaries use at any Palladium Resort by paying the corresponding Preferential Rates for the All Inclusive Fee [Annex 1]. ” This is explicit in the contract and therefore is binding. Any member who has this wording in their active contract is subject to it.

The sticky point is with members who have the wording which is the same as contract from October, 2012. That provision states that 10X1 certificates are earned for every Ten Weeks (Each week consisting of 7 nights) used at any Palladium by paying the corresponding Preferential Rates. Those nights are nights used in accordance with the membership…and include transferred nights. If that were not true, the Travel Club would not have changed the wording to the current version.

The terms and conditions listed on the certificate list how the certificate may be used. For example, it shows where, when, and for how long the certificate is valid. The terms and conditions are defined after the certificate is granted, so the terms and conditions of the certificate do not define how they are earned. You can’t define how a certificate is earned after it has been granted. The cart can not be placed in front of the horse. How a certificate is earned is defined in the contract. Annex 5 # 21 and Annex 4 address these issues.

Finally, one last consideration is upgrading your membership. One standard part of an upgrade contract is a document which includes a statement such as “The rights over the Membership number CUN-XX-XX-XXXX have been changed to theMembership number: CUN-YY-YY-XXXX therefore starting as of today such membership will be deactivated.” As such, the terms of the upgraded contract’s Annex 5 would supercede the previous contract’s Annex 5 . Through upgrading your membership, you could be changing terms which previously existed but which no longer do.

Founding members who have the wording from our contract of 5-29-2012 which does not include the language regarding terms and conditions should have the wording in their contract honored. In the words of the General Manager of the Palladium Travel Club, “your contract always will prevail and it is your unbreakable warranty. We have to respect 100% every single clause.”

 

 

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