Something I don't understand...

[JimMIA]

we use our points mostly for WDW vacation stays but i certainly won't beat myself up if i decide to use points toward an alternate vacation offering in future, even if it isn't an even push vis a vis points versus cash.

Nor should you. They're your points, and as long as you are comfortable with what you got, that's all that matters.

However...in this forum, you will see a lot of "not great use of points" comments because the DVC timeshare salesmen present non-DVC options (like "500 Kingdoms") AS IF they were simple, easy, and equivalent exchanges.

They're not. And folks who know better (like Dean) are not going to let those bogus claims go unanswered.

Comments like "they can take this away from you with one swipe of the Mouse's pen" are equally accurate. They can. And HAVE.

The prudent prospective buyer should look at all these things with an open mind and critical eye before purchasing.

 

[crisi]

The prudent prospective buyer should look at all these things with an open mind and critical eye before purchasing.

There is a huge difference between a DVC owner deciding that "this year I'm going to use my points for a cruise" and someone making a decision to buy DVC who knows upfront that they will be using the system extensively for non-DVC options.

 

[nyjets53]

There is a huge difference between a DVC owner deciding that "this year I'm going to use my points for a cruise" and someone making a decision to buy DVC who knows upfront that they will be using the system extensively for non-DVC options.

Agree with you 100%...Used our points last year for a cruise and this year hopefully at disneyland...

 

[wishicouldgomoreofte]

They are your points to do with as you wish, however, I would point out several issues with your statements. $10 a point is low if you do it yourself, you can get that by letting someone else do it for you. $7 a point is high end for most cash type exchange options. The risks of renting done correctly are extremely low. And most importantly, there are risks and other costs using the points to exchange out as well, IMO, far greater than risks associated with renting. In addition, most of the time when this issue comes up it's in relationship to buying in, not those that own already unless they are asking for input. I would agree it's good to have options but feel that only reasonable option currently is RCI, and even then, it's a qualified endorsement because I've never come across a DVC member who actually uses DVC in an appropriate way to get a reasonable value from RCI or before, with II. Of course these are general statements, one would have to look at a specific situation to make judgements as it applies to that situation.

Well Dean, I have no idea of "the appropriate way to get a reasonable value from RCI". I would love for someone to post a tutorial and step-by step instructions. And I bet I am not alone in wanting that.

 

[abdmom]

Well Dean, I have no idea of "the appropriate way to get a reasonable value from RCI". I would love for someone to post a tutorial and step-by step instructions. And I bet I am not alone in wanting that.

There are no step by step instructions because there are thousands of variables. Check out tugbbs.com for a discussion group on how to get a reasonable value from timesharing.

 

[Dean]

Well Dean, I have no idea of "the appropriate way to get a reasonable value from RCI". I would love for someone to post a tutorial and step-by step instructions. And I bet I am not alone in wanting that.

There are many variables but there are also some principles that go a long way. I have posted this type of info before over the last few years in various thread's. It might be stretching this thread a bit but it's died down anyway so I don't think the moderator's will mind if I do it here. If they do, they are welcome to move or remove the post of course. I'll concentrate on the method that gives you the absolute best chance at getting the top options and the most chance of success. I'll also concentrate on a full week at a time.

• First one must have enough points to get together 160 or 270, the exchange costs for HIGH season for a 1 & 2 BR.
• Decide what/where you want in general terms then investigate the exchange options to see which one fits your needs. TUG, redweeks, RCI's site, the resorts own website are good starting places to investigate.
• Finalize the list.
• Plan ahead such that one can put in the exchange request exactly 2 years ahead of the first date desired. Pay the exchange fee up front.
• Keep adding additional options and dates as you get to within 2 years for those options.
• Sit back and wait until up to 2 months or less prior to the first date.

IMO, this method and only this method gives the best chance of a match to an acceptable option but there is more to the story. RCI points inventory doesn't open up until 10 months out or later. You won't lose a lot of options for most choices if you start just before 12 months out but you will for some resorts. You can usually find out when a given resort tends to deposit as part of your investigation. You can't request a 1 BR if the resort only has 2 BR units. Many resorts only start the weeks for exchange on certain days, make sure you know what those are and that they are acceptable. One must keep tabs on the exchange, esp if any of your personal choices/variables change. One must be realistic, getting a 2 BR on Maui for Xmas or New Years is very unlikely, period, even more so considering that DVC has relatively low trading power with RCI compared to many of those top choices. This means there are likely to be others ahead of you in the line. One needs to know that when a new person joins the wait list line, they may be placed ahead of you.

 

[disneynutz]

Disney wouldn't offer DCL, RCI, and other use of points unless they are making money out of the deal. I know that they use exchanges as a marketing tool but there has to be more to it than that.

Any ideas on how the are using the exchanges to generate income?

Bill

 

[Dean]

Disney wouldn't offer DCL, RCI, and other use of points unless they are making money out of the deal. I know that they use exchanges as a marketing tool but there has to be more to it than that.

Any ideas on how the are using the exchanges to generate income?

Bill

Reportedly the exchanges are a zero sum game and they are not making money on the exchange but on the upfront sale of points. Obviously CRO is making commissions on the rentals. In addition, the RCI access gives them another good rental option.

 

[DebbieB]

Reportedly the exchanges are a zero sum game and they are not making money on the exchange but on the upfront sale of points. Obviously CRO is making commissions on the rentals. In addition, the RCI access gives them another good rental option.

I think the big problem is the heavy discounts needed to fill rooms sent to CRO. 30%-40% off is typical, especially for OKW and SSR. The points needed to stay Disney Collection has really skyrocked to reflect that. Plus typically in the late summer, people are upgraded for free from values or moderates to OKW and SSR to fill rooms. DVC has to be losing on that if the rooms were from exchanges.

I think the move to restrict resales was not only to encourage direct sales but also to cut down on exchanges they have to deal with.

 

[Dean]

I think the big problem is the heavy discounts needed to fill rooms sent to CRO. 30%-40% off is typical, especially for OKW and SSR. The points needed to stay Disney Collection has really skyrocked to reflect that. Plus typically in the late summer, people are upgraded for free from values or moderates to OKW and SSR to fill rooms. DVC has to be losing on that if the rooms were from exchanges.

I think the move to restrict resales was not only to encourage direct sales but also to cut down on exchanges they have to deal with.

Plus the 50% CRO commission is likely a much larger component.

 

[rkdahl]

I've always struggled with this concept for some reason. But I get confused with the how DVC balances the books when people exchange points for transfers out such as Concierge, ABD, cruises, etc.

So lets say someone uses all of their 500 points (assuming they have 500 of course) and does an exchange to a cruise or ABD trip or something. So back at their home resort, what happens to that 'vacuum' of 500 points? Is that sold as a rental then? Or what?

If you take that to an extreme, lets say all the people that own at Old Key West, in one year exchanged all their points for cruises, ABD trips and stays at non DVC properties. So what happens at Old key West, are all the rooms rented to non DVC members that year? Or who pays who for what relative to the resort books?

Now obviously that extreme would never happen, but what I am trying to get at, when a whole bunch of home resort points are exchanged out, what happens as far as the resort book keeping?

Thanks!

 

[Dean]

I've always struggled with this concept for some reason. But I get confused with the how DVC balances the books when people exchange points for transfers out such as Concierge, ABD, cruises, etc.

So lets say someone uses all of their 500 points (assuming they have 500 of course) and does an exchange to a cruise or ABD trip or something. So back at their home resort, what happens to that 'vacuum' of 500 points? Is that sold as a rental then? Or what?

If you take that to an extreme, lets say all the people that own at Old Key West, in one year exchanged all their points for cruises, ABD trips and stays at non DVC properties. So what happens at Old key West, are all the rooms rented to non DVC members that year? Or who pays who for what relative to the resort books?

Now obviously that extreme would never happen, but what I am trying to get at, when a whole bunch of home resort points are exchanged out, what happens as far as the resort book keeping?

Thanks!

The process is fairly simple. The goal on DVD's part is simply to get enough money to pay for the exchange option. They do that by using the points exchanged to reserve time to rent. They are bound by the home resort priority to reserve rooms but can reserve any room at any resort to rent at 7 months or after. Obviously they guess up front what the costs and proceeds will be which is why we've seen negative changes over the years, esp with the economic changes. Theoretically if all owners of a given resort exchanged in a given year it'd be possible for the entire resort to be booked for a year for rentals only. Fortunately for members, DVD is also bound by the same booking rules as you and I.

 

[chunkygal]

I was thrilled with all the options before we purchased. We rarely used them, once for a cruise, once for hotel stay...and we are satisfied with the choices we make. We mainly stay at HHI and as our life path changes we may try other thins...who knows It has been a great ride...
We always say it is sime of the best money we have ever spent and we have the greates fun
Memories. For what it is worth.

 

[luckyman_apd]

I was thrilled with all the options before we purchased. We rarely used them, once for a cruise, once for hotel stay...and we are satisfied with the choices we make. We mainly stay at HHI and as our life path changes we may try other thins...who knows It has been a great ride...
We always say it is sime of the best money we have ever spent and we have the greates fun
Memories. For what it is worth.

Tell me about HHI. I am a frequent outer banks vacationer. I am trying to get DVC owner friends to go with us to the outer banks, but they want to use their points and take us to HHI instead. Have you ever been to OBX? On OBX, we are usually 1 or 2 lots to the beach. It's our usual summer vacation spot.