Target Market Determination

for Marriott Vacation Club Destinations, Australia (ARSN 610 612 676)

About this document

This Target Market Determination (TMD) applies to Fixed Club Points and Variable Club Points in the Marriott Vacation Club Destinations, Australia (collectively the product). It seeks to offer distributors, customers and employees an understanding of the class of customers for which this product has been designed, considering their needs, objectives and financial situation.

This document is not to be treated as a full summary of the product's terms and conditions and is not intended to provide financial advice. Customers must refer to the applicable Product Disclosure Statement (PDS) and any supplementary documents which outline the relevant terms and conditions under the product when making a decision about this product. Capitalised terms have the meaning given to them in the product's PDS, unless otherwise defined. This information is intended for recipients in Australia only.

1. Issuer
Club Holidays Australia Limited ACN 067 151 655 AFSL 479621

2. Date from which this Target Market Determination is effective
1 August 2023 (version 2)

3. Class of customers that fall within this target market
The Marriott Vacation Club Destinations, Australia product is designed for a class of customers whose likely needs, objectives and financial situation outlined below, are aligned with the product and its key attributes and eligibility criteria, specifically, consumers who:

consider travel for leisure purposes and holidays to be an important part of their lifestyles and wish to enjoy Marriott hotel or apartment style accommodations;
seek flexibility for their holidays;
are able to afford to purchase the product and earn sufficient income to pay the ongoing costs of the product; and
are of an age to maximise the benefit of the long-term nature of the product.

3.1 Product description and key attributes
The key product attributes of the Marriott Vacation Club Destinations, Australia product are:

Key eligibility criteria	This product is appropriate for
Time-sharing scheme	A points-based timeshare managed investment scheme established in March 2016. The Club gives Members the ability to book holidays in quality Marriott Vacation Club branded property which is owned by the Club.
Ownership types and term	Fixed membership - term for fixed club membership is until 31 December 2061 Variable membership - the initial term will expire on 19 June 2038, which may be renewed until December 2053 or 19 June 2058.
Holiday options	Members can access other holiday options in different locations around the world which are made available through an Exchange Program (while the Responsible Entity is affiliated with that exchange program). Members can: Occupy club resorts that are not Club Property at over 60 resorts throughout the world; Trade Club Points for Marriott Bonvoy points to access over 6,700 Marriott Hotels & Resorts Worldwide; Have access to local experiences such as golf, hiking and biking trips; cruises; guided tours; Marriott-branded hotels; adventure travel; specialty travel; and Exchange to timeshare resorts that are not Marriott Vacation Club branded properties through the Exchange Company's corporate membership with Interval International to holiday at more than 3,200 resorts in over 80 nations.
Holiday costs	After paying the initial purchase price and establishment fee, Club members are generally only required to pay annual Maintenance Fees and Exchange Company Dues to maintain their membership in the Club and ability to exchange Club Points for Exchange Program options.
Holiday options	Members can access other holiday options in different locations around the world which are made available through an Exchange Program (while the Responsible Entity is affiliated with that exchange program). Members can: Occupy club resorts that are not Club Property at over 60 resorts throughout the world; Trade Club Points for Marriott Bonvoy points to access over 6,700 Marriott Hotels & Resorts Worldwide; Have access to local experiences such as golf, hiking and biking trips; cruises; guided tours; Marriott-branded hotels; adventure travel; specialty travel; and Exchange to timeshare resorts that are not Marriott Vacation Club branded properties through the Exchange Company's corporate membership with Interval International to holiday at more than 3,200 resorts in over 80 nations.
Holiday costs	After paying the initial purchase price and establishment fee, Club members are generally only required to pay annual Maintenance Fees and Exchange Company Dues to maintain their membership in the Club and ability to exchange Club Points for Exchange Program options.
Use of Club Points	Club members have the right to use, rent, gift, sell or transfer their Club Points.

Key eligibility criteria	This product is appropriate for
Demographics	Those married or in a life partnership, where at least one partner is between the ages of 28 and 65 years; or a single person between the ages of 28 and 65 years; and Residing in Asia Pacific or who have close connections (family or business) within the Asia Pacific region.
Income and employment	Those who have an annual income of AUD $120,000 or more (either individually or combined if a couple) and are currently employed (either or both if a couple).
Travel & Holiday status	Those who consider travel for leisure purposes and holidays to be an important part of their lifestyles.

3.2 Objectives, financial situation, and needs
This product has been designed for individuals who:

Objectives and needs

Seek to enjoy Marriott hotel or apartment style accommodations,
Want flexibility in terms of the length of their holiday stay(s),
Seek to holiday at different times of the year,
Seek to vary the size of their accommodation as to the duration, size, timing, and location of their holidays,
Seek to enjoy many ancillary benefits like,
1. Access to Marriott Vacation Club and Marriott-branded hotels and resorts around the world;
2. Access to opportunities, such as: local experiences such as golf, hiking and biking trips; cruises; guided tours; adventure travel; and specialty travel; and

Exchange to other holiday accommodation properties that are not Marriott Vacation Club branded properties.

Financial situation

Are able to pay for the outright purchase of this product; or pay in interest free monthly instalments from 1, 3 or 5 years; or are able to service the principal balance (including any interest charges) of a loan, and are also able to pay annual fees and charges associated with ownership of the product.

3.4 Consistency between target market and the product
This product has not been designed for individuals who:

Are below the age of 28 or over the age of 65 at the time of acquiring the product;
Do not wish or have no ability to holiday whether locally, nationally or internationally;
Do not have the financial ability to pay the purchase price (including access to any finance without financial hardship) and the annual levies and other ongoing costs;
Prefer camping or caravanning holidays rather than holiday resorts;
Do not want to obtain a long-term holiday product; or
Are seeking to generate a financial return from acquiring the product including if they decide to sell the product as this is a lifestyle product.

3.5 Consistency between target market and the product
The Marriott Vacation Club Destinations, Australia product including its key attributes is likely to be consistent with the likely objectives, financial situation and needs of the class of customers in the target market, as we consider that it provides the required type of holiday lifestyle plan for that class of customers. This has been determined based on an assessment of the key terms, attributes, features and eligibility criteria of the product and that they are consistent with the identified class of customers. Individual customers will need to consider whether this product meets their specific objectives, financial situation and needs.

4. How this product can be distributed

Distribution channels

This product is designed to be distributed by us (including our authorised representatives) to:

Existing customers who have previously acquired the product,
New customers who have been referred to the Licensee by existing customers,
Existing customers who have acquired a related non-financial product offered by the Licensee or its affiliates,
Existing and new customers of the Licensee’s related Hotels brands (i.e. previous hotel guests as well as current in-house guests), through:
Online and social media activities to prospects who identify as being in the defined target market,
Target market activities via events and promotions,
Prospect databases whose demographic profile fit the Licensee’s target market.

Distribution conditions

This product should only be distributed to a customer who attends a presentation on the Club (either in person or online) and is given personal advice by an authorised representative of the Licensee.

Adequacy of distribution conditions and restrictions

We consider the condition for the product to be distributed to customers who attend a presentation on the Club and receive personal advice from our authorised representatives is likely to ensure such customers are in the target market. This is because our authorised representatives are required to act in the best interests of the customer in providing personal advice and, in doing so, identify and analyse the objectives, financial situation and needs of the customer.

5. Reviewing this target market determination

Initial review

Within twelve (12) months of the effective date

Periodic reviews

At least every two (2) years from the previous review

Review triggers or events

A review trigger or any other event or circumstances that arises that would suggest the TMD is no longer appropriate. Review triggers may include (but not limited to):

a material change, to the design or distribution of the product, including related documentation,
complaints from customers which indicate the product is not meeting their needs or expectations, is not affordable or does not operate how the customers believed it would,
distribution conditions that are found to be inadequate,
systemic issues across the product lifecycle,
occurrence of a significant dealing, or
external events such as adverse environmental or regulatory impediments.

Where a review trigger, or other event or circumstance that reasonably suggests that the TMD is no longer appropriate, has occurred, this target market determination will be reviewed within 10 business days.

6. Reporting and monitoring this target market determination

We will collect the following information in relation to this target market determination:

Reporting requirement		Reporting period
Complaints	Distributors must report all complaints in relation to this product. This will include written details of the complaints.	Within 1 business day following the end of each day in which a complaint occurs
Sales Data	Distributors must report relevant sales and customer data (such as feedback from customers why they did not purchase the product, why they did not proceed with a recommendation to purchase, and why they exercised cooling-off rights) in relation to this product on a monthly basis.	Within 10 business days following the end of each month
Significant dealings	Distributors must report if they become aware of a significant dealing in relation to the product that is inconsistent with the target market determination.	As soon as practicable but no later than 10 business days after distributor becomes aware of the significant dealing

The above requirements apply to all distributors. Distributors who are not authorised representatives of the Responsible Entity (if any) should report the required information to the Responsible Entity by email to
Australia-Compliance@MVCIonline.onmicrosoft.com.

Questions?

Target Market Determination

for Marriott Vacation Club Destinations, Australia (ARSN 610 612 676)