Rci exchanges

[Cyberc1978]

Hi

Just noticed that if somebody wants to exchange into Dvc through Rci, the usage fee has just gone up from 95$ to 190$

Dang that's a huge increase might take off the top of people wanting to exchange into Dvc through Rci.

Guess the change happened 1st of August.

Regards.

 

[CMNJ]

Wow that's a pretty steep increase!

 

[Deb & Bill]

Is that what DVC is charging the user when they check into the DVC resort or is that what RCI is charging?

Found out the answer to that question from my HGVC site.

Urgent Information

• Mandatory fees

• Usage Fee is 190 U.S. dollars.

• Policy Restrictions

• Minimum age check-in: Minimum age check-in is 18.
• No smoking in units: could result in forfeiture of the unit and/or other penalties.

• Other Information

• CALL DVC MEMBER SERVICES AT XXX NO SOONER THAN 72 HOURS AFTER CONFIRMING AND NO LATER THAN 48 HOURS PRIOR TO ARRIVAL TO ADD ALL GUEST NAMES, ALL NAMES MUST BE ADDED IN ADVANCE. Addition of dining plans requires full payment upfront, reservation must occur no less than 48 hours in advance to add dining plan. Disney's Magical Express requires RSVP to XXX 48 hours prior to arrival and includes shuttle/bag service from/to airport.
• $190 mandatory resort fee charged at check-in. Fee includes but is not limited to services such as assistance with dining reservations, Disney’s Magical Express reservations and purchasing theme park tickets through DVC member services toll free number 800-800-9800.
• There is an area ownership restriction at this resort. If you made this reservation using points from an Orlando ownership or a resort within 30 miles of Disneyworld resorts in Orlando, it will be cancelled and you will be notified about rebooking a non-Disney property.

That may help with RCI trades being rented. $95 was bad enough, but $190 is a night in a moderate.

 

[Cyberc1978]

Is that what DVC is charging the user when they check into the DVC resort or is that what RCI is charging?

Found out the answer to that question from my HGVC site.


That may help with RCI trades being rented. $95 was bad enough, but $190 is a night in a moderate.

Yes but on top of that you need to pay the exchange fee of 219$

Regards

 

[Brian Noble]

might take off the top of people wanting to exchange into Dvc through Rci.

That may help with RCI trades being rented.

I bet neither of these will happen.

 

[disneynutz]

I expect that DVC to RCI fees will increase in short order.

Bill

 

[OrangeCountyCommuter]

And... there's an ongoing special if you want to go the other way. Fee is waived until the end of the year from Disney to RCI. Sounds like they may be trying to even out demand?

 

[Cyberc1978]

I can understand why.

If DVC members exchange their points for a vacations with RCI, then DVC will deposit more units in RCI which is a money cow for both DVC and RCI.

In general a RCI exchange is a downgrade for DVC members so its a bad idea.

 

[CarolMN]

I can understand why.

If DVC members exchange their points for a vacations with RCI, then DVC will deposit more units in RCI which is a money cow for both DVC and RCI.

In general a RCI exchange is a downgrade for DVC members so its a bad idea.

"DVC will deposit more units in RCI which is a money cow for both DVC and RCI". Please say more. Why is this a "money cow" for DVC?

 

[Cyberc1978]

"DVC will deposit more units in RCI which is a money cow for both DVC and RCI". Please say more. Why is this a "money cow" for DVC?

Its a cash cow for DVC because the exchangers now need to pay 190$ to DVC at checkin instead of 95$.

Maybe the reason why DVC waived the RCI fee until eoy is that DVC now makes a total of 95$(maybe even more) when a DVC member exchanges within RCI. Whenever members exchange within RCI, DVC then deposits a unit into RCI. Those deposits generate 190$ whenever a regular RCI member grabs that newly deposited units. DVC gets the 190$ at checkin and RCI gets 219$ or 169$ in exchange fees.

I bet that the 95$ fee which is waived is somehow split between DVC and RCI, so by waiving the fee and increasing the other fee, DVC actually makes more money.

 

[CMNJ]

"DVC will deposit more units in RCI which is a money cow for both DVC and RCI". Please say more. Why is this a "money cow" for DVC?

I would hazard a guess that DIsney/DVC does like RCI trades somewhat as a way to possibly expand their member base. Obviously they don't want the same people constantly trading in (which I know from the board here is sometimes the case) but assuming they get new timeshare people trying DVC they may be able to sell them on the benefits of DVC vs staying offsite. Plus DVC members who go often may not be spending as much in the parks/restaurants as people who go every 5 years.

 

[CinderBelleDVC]

Does this mean that it will be easier to get reservations we want? Or not really connected?

 

[Cyberc1978]

I would hazard a guess that DIsney/DVC does like RCI trades somewhat as a way to possibly expand their member base. Obviously they don't want the same people constantly trading in (which I know from the board here is sometimes the case) but assuming they get new timeshare people trying DVC they may be able to sell them on the benefits of DVC vs staying offsite. Plus DVC members who go often may not be spending as much in the parks/restaurants as people who go every 5 years.

I partially agree with you. Disney would like fresh blood, but as long as they dont have the 1:4 rule for their resorts the same people could exchange in. Having the 1:4 rule would be a simple thing to implement and it would make sure that Disney got their new fresh blood more often than not. But for now Disney has increased the "because we can" fee which generates some nice income.

A 1:4 rule would limit the numbers of RCI'ers going to DVC which again would limit the income from the "because we can" fee.

 

[JimMIA]

Does this mean that it will be easier to get reservations we want? Or not really connected?

No connection. When a DVC member deposits points into RCI, the reservation corresponding to those points goes to RCI, so it's no longer a part of DVC's inventory. It's the same as if the member had already reserved that room for themselves -- the room is gone.

 

[Cyberc1978]

No connection. When a DVC member deposits points into RCI, the reservation corresponding to those points goes to RCI, so it's no longer a part of DVC's inventory. It's the same as if the member had already reserved that room for themselves -- the room is gone.

Thats only partially true. When a DVC member exchanges within RCI, then DVC gets to decide which unit(s) is deposited into RCI. Thats is also why we are seeing a lot of deposits for SSR and not (mostly) any other resorts.

 

[JimMIA]

Its a cash cow for DVC because the exchangers now need to pay 190$ to DVC at checkin instead of 95$.

DVC was getting $190 either way: $95 from the DVC member doing an exchange out; $95 from the RCI member exchanging in -- or just $190 inbound.

If they are trying to increase the volume of DVC inventory available for CRO to rent out, they should waive the $95 for other exchanges (Disney resorts, etc) as well. Although I don't think the $95 fee is really an obstacle to a DVC owner wanting to use their points for something else...so I'm not sure waiving it will have any effect.

 

[JimMIA]

Thats only partially true. When a DVC member exchanges within RCI, then DVC gets to decide which unit(s) is deposited into RCI. Thats is also why we are seeing a lot of deposits for SSR and not (mostly) any other resorts.

I'm not sure that any of us know how DVC determines what to deposit into RCI. I would expect more SSR deposits just because SSR has by far the largest number of owners, but for the last couple of years the overwhelming majority of exchanges in seem to be to SSR. I don't know if that's because DVC's sales center is there, or because SSR has low occupancy, or what -- probably a combination of factors.

Theoretically, DVC should deposit unit for unit -- so if a BWV owner exchanges out for points that would book a 2BR, a 2 BR at BWV would be deposited in RCI. That's obviously NOT happening, and I'm a little surprised RCI is letting them get away with it. RCI probably needs to increase the DVC points requirements for RCI exchanges to provide a better mix.

 

[Dean]

Its a cash cow for DVC because the exchangers now need to pay 190$ to DVC at checkin instead of 95$.

Maybe the reason why DVC waived the RCI fee until eoy is that DVC now makes a total of 95$(maybe even more) when a DVC member exchanges within RCI. Whenever members exchange within RCI, DVC then deposits a unit into RCI. Those deposits generate 190$ whenever a regular RCI member grabs that newly deposited units. DVC gets the 190$ at checkin and RCI gets 219$ or 169$ in exchange fees.

I bet that the 95$ fee which is waived is somehow split between DVC and RCI, so by waiving the fee and increasing the other fee, DVC actually makes more money.

DVC doesn't make any money on the inbound, $190 per isn't enough for them to fool with. It's used to pay for the system to do it but not as a profit mechanism.

I partially agree with you. Disney would like fresh blood, but as long as they dont have the 1:4 rule for their resorts the same people could exchange in. Having the 1:4 rule would be a simple thing to implement and it would make sure that Disney got their new fresh blood more often than not. But for now Disney has increased the "because we can" fee which generates some nice income.

A 1:4 rule would limit the numbers of RCI'ers going to DVC which again would limit the income from the "because we can" fee.

IF Disney sought those out that exchanged in I'd agree but they don't. IMO they should be far more aggressive in this area but they've been very passive. It's cost them major $$$ over the course of DVC's 24 yrs existing.

I'm not sure that any of us know how DVC determines what to deposit into RCI. I would expect more SSR deposits just because SSR has by far the largest number of owners, but for the last couple of years the overwhelming majority of exchanges in seem to be to SSR. I don't know if that's because DVC's sales center is there, or because SSR has low occupancy, or what -- probably a combination of factors.

Theoretically, DVC should deposit unit for unit -- so if a BWV owner exchanges out for points that would book a 2BR, a 2 BR at BWV would be deposited in RCI. That's obviously NOT happening, and I'm a little surprised RCI is letting them get away with it. RCI probably needs to increase the DVC points requirements for RCI exchanges to provide a better mix.

And it'll change. The balance is satisfying the internal demand and RCI's expectations/contractual obligation. The choice of weeks to rent is a far larger risk to the members than the exchange weeks. In conversations with DVC upper management and looking at the deposits that show up, it appears they're holding back trying to be fair to members. Mostly SSR and 1 BR is about the best scenario possible for the membership and the worse for RCI members.

 

[KornBred]

Thank you guys for the heads up. I have two resorts through my RCI membership and was able to get a week at OKW (booked in April or May) which usually doesn't come up on the search and at the lower exchange rate of $169 as opposed to the $219 of most other resorts. I knew about the resort fee of $95 upon check-in but had no idea it had been jacked up to $190. Thankfully I have my email from June that clearly says my fee is $95 and I will be printing it out to show in case we have a problem. Thanks again everyone.

 

[Brian Noble]

I'm not sure that any of us know how DVC determines what to deposit into RCI. I would expect more SSR deposits just because SSR has by far the largest number of owners, but for the last couple of years the overwhelming majority of exchanges in seem to be to SSR. I don't know if that's because DVC's sales center is there, or because SSR has low occupancy, or what -- probably a combination of factors.

It seems to me that the biggest factor is that DVC deposits tend to be much closer to check-in date than they used to be---4-5 months prior is not uncommon. That gives Members more time to make internal reservations, and so exchangers are more likely to get what Members consider "the leftovers," because there is nothing else to deposit.

Despite being a relatively frequent DVC inbound, I think this is a very reasonable strategy for DVCMC to take. Wyndham does something similar, giving owners 2-3 months to make internal reservations before depositing to RCI. That way, the most in-demand resorts/times/unit sizes are taken by owners. In contrast, Hilton deposits units several months before owners can make Club reservations. I exchanged into a 3BR Penthouse in HGVC's Lagoon Tower this summer, a unit that is very hard to book internally and probably should have never been deposited.