# Proof that DeX is affiliated with RCI



## youppi (Aug 2, 2021)

From the translation of the Marriott 2nd quarter conference call (https://www.fool.com/earnings/call-...tt-vacations-worldwide-corp-vac-q2-2021-earn/ or https://ir.marriottvacationsworldwide.com/static-files/b2ad5679-d348-488a-8a95-2528281856f6)

*Charles Patrick Scholes* -- _Truist Securities -- Analyst_

Okay. That's very helpful. I just want to make sure we're all modeling that correctly. And then related -- somewhat related for '22, how should we think about the ongoing earnings hit in the -- from -- you lost a corporate client in the RCI membership. How should we think about that earnings hit? And then also from member loss over the past 1.5 years, I guess, again, as compared to sort of what it was in 2019.

*Stephen P. Weisz* -- _Chief Executive Officer_

Yes. Patrick, this is Steve. I think you're referring to the Diamond transition from Interval to RCI, correct?

*Charles Patrick Scholes* -- _Truist Securities -- Analyst_

Yes, that -- yes, correct that. And if you and lost members over the past 1.5 years, what is sort of the run rate so we can sort of match it up [Indecipherable] expectations year 2019 again. Thank you.

*Stephen P. Weisz* -- _Chief Executive Officer_

Let me speak to the diamond things specifically, and then I'm sure John can chime in a little bit on the EBITDA side of things. So Diamond was 165,000 members, roughly 10% of the Interval membership at the time that they lost. We were able to retain 29,000 members from that 165,000 in Interval who continue to want to keep their membership with us. I should also point out that the 165,000, only 15% of those were actually active exchangers. Now 165,000 members, you do get the annual corporate membership fee, which has -- it's not the lion's share of what you get from membership, but it certainly is important money. But the real money made in the exchange business is on a transaction basis when people go to exchange.

So we believe that at the end of the day, by retaining the 29,000 members, which were obviously active users because they wanted to stay with Interval. It's really going to be relatively de minimis in terms of the financial impact from Diamond. Now with that said, there were others that because of you have normal attrition in the exchange business, that happens every year. Typically speaking, what happens is, as new developer sales happen, you have new memberships that are gained and under ideal circumstances, the new members outweigh the normal attrition. Obviously, in 2020, there were very few new member additions being made across the affiliate network, and you still have the continued attrition. So there will be some leakage at the EBITDA side. So I think John may be able to chime in a little bit with some additional numbers.


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## Ty1on (Aug 2, 2021)

Well it's proof that DRI's affiliated exchange system moved from II to RCI, but I don't see proof that DEX is affiliated with RCI here.


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## youppi (Aug 2, 2021)

Ty1on said:


> Well it's proof that DRI's affiliated exchange system moved from II to RCI, but I don't see proof that DEX is affiliated with RCI here.


DRI moved from II to DeX. I said in the past, when I look at the DeX resorts, they are all RCI resorts and the number of resorts advertised in DeX document matched the number of RCI resorts.
Now Marriott say DRI moved from II to RCI.
So, DeX is affiliated with RCI if 1+1=2.


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## Ty1on (Aug 2, 2021)

youppi said:


> DRI moved from II to DeX. I said in the past, when I look at the DeX resorts, they are all RCI resorts and the number of resorts advertised in DeX document matched the number of RCI resorts.
> Now Marriott say DRI moved from II to RCI.
> So, DeX is affiliated with RCI if 1+1=2.


Oh I see.  So DRI is naming it as if it is their own product, but it's not?  I always thought DEX was an internal exchange....

That sounds very DRI


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## youppi (Aug 2, 2021)

Ty1on said:


> Oh I see.  So DRI is naming it as if it is their own product, but it's not?  I always thought DEX was an internal exchange....
> 
> That sounds very DRI


Originally when they started DeX, it was an internal exchange for deeded DRI owners with only DRI resorts.
When they moved THE Club (points members) from II to DeX, they needed inventory outside of DRI resorts because THE Club is already an internal exchange for points members with DRI resorts and some affiliated resorts in it.
So, to get non DRI resorts inventory, they affiliated with RCI from what I see.


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