# DRI Update



## RuralEngineer (May 22, 2014)

We will do the update at Williamsburg this weekend.

Stephen


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## tschwa2 (May 22, 2014)

Why?  
because you think you will learn something useful

because you enjoy listening to the sales folk stretch the truth

because you are hoping to buy more points at retail

because you think the gift will more than compensate you for any unpleasantness you may experience

because you have a difficult time saying no to the nice people at the concierge desk

because you have an empty day in your schedule and can't think of anything else you would want to do

???

I have been known to attend for the gifts every so often but then it takes a couple of years before I think it might be worth it again.


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## artringwald (May 22, 2014)

If you're DRI Club Silver, you should buy more points to get to Gold. At the presentation, they'll give you a really good deal on points, and you won't regret it.

UPDATE: An unknown sales rep from DRI hacked into my account and posted the message above. Please ignore it.


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## RuralEngineer (May 23, 2014)

*Updates*

I always learn something.


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## pedro47 (May 23, 2014)

Please share what you learn.


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## singlemalt_18 (May 23, 2014)

RuralEngineer said:


> I always learn something.



I was recently in Tahoe and had the opportunity to speak with someone whose years in the business far predate DRI and possessed a remarkable understanding of timeshare both historically, and in terms of where things are going.  She shared a great deal of insight into the vacation and recreation/hospitality industry at large, as well as the rationale behind the sizeable Guggenheim stake taken in DRI.  She also had a genuine respect for the fact that my wife and I were not going to make any purchases, and that was an incredible first… ever!

Guggenheim had apparently been sizing up potential investment opportunities in this space for more than a few years. In the end they chose DRI.  They are also taking an active role in shaping the direction in which the company is moving, as well as how they will get there, and there will be a continued drive for more property acquisitions.  The Guggenheim investment thesis comes down to one thing: the Boomer retirement wave and the demand for travel accommodations.

Although it has already started, boomers are retiring at a rate of 11,000 a day; it is to continue at this pace for the next 15 years.  Just like on _The Family Feud_, the number one response when asked what they will do (or do more of) when they retire is *“travel”*.  Unlike travelers either still working or still raising families, this group will no longer be subject to the usual “seasonal” restrictions responsible for the common peak and off-peak trends.  In fact, research shows that this demographic is actually more likely to travel off-peak for variety of reasons, such as avoiding crowds, avoiding other peoples grandkids, or avoiding time that CAN be spent with their own grandkids when they are not in school.

The number one reason however, that they will pursue travel during off-peak, _and the survey says…_ *“To Save Money”*!  Unfortunately, this will change the demand curve and compress any current price spreads; low demand periods will become medium demand, and medium will become high.  Eventually the entire price structure moves higher, and it is anticipated to rise significantly.  It is really no longer about timeshare but rather inflation protection through prepaid travel.  Not a new concept, but perhaps a bit easier to understand with this perspective.  The $100 hotel room of today will become the $200 room of tomorrow, but the 7500 point week of today will still be just 7500 points.

Guggenheim believes that pre-paid travel is the space to be in to take advantage of these trends, and determined that DRI was best positioned to make the most of all that is to come, not only for their investment dollars, but by providing the most compelling value and experience to travelers.  *Apparently this is not being lost on some wealthier boomers; we were told that within a 60 day period back in February and March, the Hawaii sales group closed 3 separate $400k purchases of 100k points*.

The minimum number of points required for any purchase is on the way toward 7,500, and the price per point will also continue to rise.  Be sure the cost to bring those dirty points in will go higher too.   We currently have an option for 4,500 at $3.03 ($2.73 with Sampler credit applied) that expires 4/2015 to take us to silver, and the anticipated added value for us on that option is not one I will casually dismiss.

More than where you have been, is where you are going.


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## csalter2 (May 23, 2014)

This all sounds so good, but the bottom line is this.  The $100 hotel room that will become the $200 room but the $3000 maintenance fee will be the $6000 maintenance fee. You are listening to salestalk.



singlemalt_18 said:


> I was recently in Tahoe and had the opportunity to speak with someone whose years in the business far predate DRI and possessed a remarkable understanding of timeshare both historically, and in terms of where things are going.  She shared a great deal of insight into the vacation and recreation/hospitality industry at large, as well as the rationale behind the sizeable Guggenheim stake taken in DRI.  She also had a genuine respect for the fact that my wife and I were not going to make any purchases, and that was an incredible first… ever!
> 
> Guggenheim had apparently been sizing up potential investment opportunities in this space for more than a few years. In the end they chose DRI.  They are also taking an active role in shaping the direction in which the company is moving, as well as how they will get there, and there will be a continued drive for more property acquisitions.  The Guggenheim investment thesis comes down to one thing: the Boomer retirement wave and the demand for travel accommodations.
> 
> ...


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## tschwa2 (May 23, 2014)

Wow, your update did seem to be full of absolute salesman drivel .  

I can't find a list of DRI benefits that come with silver.  What kind of benefits can't you pass up for only $12,000 more than what you already paid.


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## winger (May 23, 2014)

tschwa2 said:


> Wow, your update did seem to be full of absolute salesman drivel .
> 
> I can't find a list of DRI benefits that come with silver.  What kind of benefits can't you pass up for only $12,000 more than what you already paid.


Remember, any benefit you get at Silver, Gold, or Platinum are subject to change at the discretion (100%) of DRI.  So, loyalty level benefits should NOT be a deciding factor when deciding whether or not to put any significant money on (to upgrade an existing membership level).


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## artringwald (May 23, 2014)

tschwa2 said:


> Wow, your update did seem to be full of absolute salesman drivel .
> 
> I can't find a list of DRI benefits that come with silver.  What kind of benefits can't you pass up for only $12,000 more than what you already paid.



Here's a link to the list of benefits, but you'll have to login to the DRI site to see them:

https://member.diamondresorts.com/Diamondloyalty

As mentioned, they're subject to change.


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## RuralEngineer (May 24, 2014)

*Trends*

you are right that demographics is one of the biggest trends driving changes in the market.  DRI today is much more valuable to me today then when I bought my first deeded week in 1998 or converted to points in 2005.

I don't personally buy-in to the pre-paid travel argument but I understand that some may find that a compelling argument.  As DRI expands my existing investment becomes more useful to me.  Yes some benefits do change over time just as many other things do in life.  I personally believe that homeownership will continue to decline but there will be increased spending on experiences to include vacations.

Stephen


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## RuralEngineer (May 25, 2014)

*a few insights*

Update was professional and short.  DRI is trying to match the price per point of it's competitors.  They are committed to the travel currency vision.  Apparently, they are now better deals on some of their travel options.  I will take another look.  They are going to raise the number of points required to meet loyalty levels.  They are trying to increase the incentives for reaching different loyalty levels. 

Stephen


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## pedro47 (May 25, 2014)

RuralEngineer said:


> Update was professional and short.  DRI is trying to match the price per point of it's competitors.  They are committed to the travel currency vision.  Apparently, they are now better deals on some of their travel options.  I will take another look.  They are going to raise the number of points required to meet loyalty levels.  They are trying to increase the incentives for reaching different loyalty levels.
> 
> Stephen



In other words you need to purchase more points at an inflate level to reach a higher loyalty level.,


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## dougp26364 (May 25, 2014)

singlemalt_18 said:


> I was recently in Tahoe and had the opportunity to speak with someone whose years in the business far predate DRI and possessed a remarkable understanding of timeshare both historically, and in terms of where things are going.  She shared a great deal of insight into the vacation and recreation/hospitality industry at large, as well as the rationale behind the sizeable Guggenheim stake taken in DRI.  She also had a genuine respect for the fact that my wife and I were not going to make any purchases, and that was an incredible first… ever!
> 
> Guggenheim had apparently been sizing up potential investment opportunities in this space for more than a few years. In the end they chose DRI.  They are also taking an active role in shaping the direction in which the company is moving, as well as how they will get there, and there will be a continued drive for more property acquisitions.  The Guggenheim investment thesis comes down to one thing: the Boomer retirement wave and the demand for travel accommodations.
> 
> ...



Nearly identicle story told to us by a DRI salesman in 1998. 

There is nothing new under the sun........or in timeshare land.


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## dougp26364 (May 25, 2014)

RuralEngineer said:


> Update was professional and short.  DRI is trying to match the price per point of it's competitors.  They are committed to the travel currency vision.  Apparently, they are now better deals on some of their travel options.  I will take another look.  They are going to raise the number of points required to meet loyalty levels.  They are trying to increase the incentives for reaching different loyalty levels.
> 
> Stephen



When loyalty levels become arbitrary (change at the whim of someone else), they lose all meaning and value. Personally, I'll take the benefits given but refuse to cintinue to purchase the ever increasing number of points to maintain them.


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## RuralEngineer (May 25, 2014)

*Levels*



dougp26364 said:


> Personally, I'll take the benefits given but refuse to cintinue to purchase the ever increasing number of points to maintain them.



I did not mean to imply you will need to purchase additional points to maintain your loyalty level.  Once Silver always Silver.  The specific benefits every year may change but your level will not.  I'm really happy with some of the new 2014 benefits for Silver.

The # of pts required to obtain Silver may increase in the future.


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## winger (May 27, 2014)

I am unclear on something.  


RuralEngineer said:


> .. Once Silver always Silver.  The specific benefits every year may change but your level will not. ...
> ...





RuralEngineer said:


> ..
> The # of pts required to obtain Silver may increase in the future.



What is this?  Do you mean if one is currently Silver, and at a later date the pts required to reach Silver level say triples (for example only), he loses his Silver level status?   OR  are you saying he remains Silver based on the original point requirements when he first reached Silver ?


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## gjw007 (May 27, 2014)

Wyndham did this last year with its level.  If you were already a certain level, you were grandfathered into that level but they pushed to sell you points to get to the next level before the change took place.  Nothing new in the sun if dri went this route


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## dougp26364 (May 28, 2014)

RuralEngineer said:


> I did not mean to imply you will need to purchase additional points to maintain your loyalty level.  Once Silver always Silver.  The specific benefits every year may change but your level will not.  I'm really happy with some of the new 2014 benefits for Silver.
> 
> The # of pts required to obtain Silver may increase in the future.



I understood that I'd remain Silver Elite. DRI has reduced the value and now apparently removed all together the benefit of selling back unused points unless you're Gold elite or higher. While I might remain Silver Elite, DRI can adjust what benefits Silver Elite receives. If I'm reading things correctly on the web site, you now must be Gold Elite or higher to use the express check in line. I'm NOT buying more points to maintain benefits taken away from my elite tier. The next thing you know, you'll have to be Platinum Elite to keep the same benefits. Then they'll start creating new levels like Diamond Elite and so on. I'm just not getting on that hamster wheel and spinning it trying to stay even.


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## hvsteve1 (May 28, 2014)

Did the update when we were at PP last month.  They just opened a new building for owners only so you're not in with the usual crowd. I think we were the only ones there. They use private offices, not the big room with tables.

The guy didn't pound too hard trying to get us to buy more points, then cut it short and gave us our gift card.  Selling additional points to existing owners seems to be the way Wyndham is also going, probably because fewer people are getting into time shares on the ground floor.

The one thing I took away from the session was, that because we're only Silver, we're going to be treated like crap every time we exchange within Diamond.  I would think that might only be a sales pitch except we have booked PP, our home resort, the last two years and been given some really rotten locations both times.


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## dougp26364 (May 28, 2014)

hvsteve1 said:


> Did the update when we were at PP last month.  They just opened a new building for owners only so you're not in with the usual crowd. I think we were the only ones there. They use private offices, not the big room with tables.
> 
> The guy didn't pound too hard trying to get us to buy more points, then cut it short and gave us our gift card.  Selling additional points to existing owners seems to be the way Wyndham is also going, probably because fewer people are getting into time shares on the ground floor.
> 
> The one thing I took away from the session was, that because we're only Silver, we're going to be treated like crap every time we exchange within Diamond.  I would think that might only be a sales pitch except we have booked PP, our home resort, the last two years and been given some really rotten locations both times.



If it gets to that point, the logical rebuttal is why continue to purchase from a company that continues to devalue the ownership as more owners attain a certain level? Ie: why buy from someone who will turn around and bite the hand that feeds it. 

Either Silver Elite has value or it doesn't. If the value of being Silver Elite is diminished today, what's to say the value of Gold Elite won't be devalued tomorrow? This doesn't give owners an incentive to buy. It gives owners the right to complain and is a disincentive to own with DRI.

Timeshare sales staff make their living off of creating fear. Anything they say should be met with suspicion.


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## johnrsrq (May 29, 2014)

artringwald said:


> If you're DRI Club Silver, you should buy more points to get to Gold. At the presentation, they'll give you a really good deal on points, and you won't regret it.
> 
> UPDATE: An unknown sales rep from DRI hacked into my account and posted the message above. Please ignore it.



I am a silver but learning it might just be best to stay this level.


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