2016 fee Schedule out yet? - Thread to track increases

[Jason245]

Does anyone know/have the new fee schedule.

As of now, I think the only item that we are all aware of is that the club fee is going up from $140 - $150 (~7.1%).

240k members * $10 = ~$2.4 Million in extra revenue for them.

I really hope I get at least a 7.1% increase in service (like a web site that worked and let me see availability AND BOOK all resorts and affiliates).

It would be nice if there was a fee decrease for something given this type of a fee increase... but that is a dream..

 

[tsciii]

Quote for Reservation Fees

I attended a presentation at LV Strip a week ago. I was told that the reservation fee within system would be $59 -- which I understand is an increase from $52 in 2015.

 

[Jason245]

I attended a presentation at LV Strip a week ago. I was told that the reservation fee within system would be $59 -- which I understand is an increase from $52 in 2015.

13.5% increase for reservations.

Fantastic... maybe I should rename this thread "How else can HGVC screw us"

 

[Blues]

Fantastic... maybe I should rename this thread "How else can HGVC screw us"

Please don't -- they might take it as a challenge :hysterical:

 

[dsmrp]

I was going to say they're "nickel and dime-ing" us, but with inflation and all that, it should be they're "five and ten-ing" us

 

[Jason245]

I was going to say they're "nickel and dime-ing" us, but with inflation and all that, it should be they're "five and ten-ing" us

Inflation in usa is next to nothing. .inflation at hgvc. . In line with inflation in Zimbabwe

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[JSparling]

I really hope I get at least a 7.1% increase in service.

Don't you have to evaluate the 7.1% increase (and the overall MF increase for your ownership) against the entire travel/resort market rate increase/change? If the total cost of your ownership goes up 9% but the average 2-bedroom condo at a glorious resort goes up 10% then you win!

Last time I checked it would cost way more (like 3 times) than my $1,150 MF to stay at Valdoro in Breckenridge in a 2BR Plus during a prime ski week. So I'm still ahead even if they want to raise my annual fee $10. With the new minimum wage laws and Obamacare and such annual increases are inevitable as the cost per employee goes up. But it's also inevitable that owning is way cheaper than booking a room on Hilton.com for a week.

 

[JSparling]

Does anyone know/have the new fee schedule.

It's right here, Sherlock :

http://tugbbs.com/forums/showthread.php?t=233428

 

[Helios]

Inflation in usa is next to nothing. .inflation at hgvc. . In line with inflation in Zimbabwe

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:hysterical:

 

[Jason245]

It's right here, Sherlock :

http://tugbbs.com/forums/showthread.php?t=233428

I ment club fees (like reservation, rci, open season etc..)

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[Jason245]

Don't you have to evaluate the 7.1% increase (and the overall MF increase for your ownership) against the entire travel/resort market rate increase/change? If the total cost of your ownership goes up 9% but the average 2-bedroom condo at a glorious resort goes up 10% then you win!

Last time I checked it would cost way more (like 3 times) than my $1,150 MF to stay at Valdoro in Breckenridge in a 2BR Plus during a prime ski week. So I'm still ahead even if they want to raise my annual fee $10. With the new minimum wage laws and Obamacare and such annual increases are inevitable as the cost per employee goes up. But it's also inevitable that owning is way cheaper than booking a room on Hilton.com for a week.

So you are saying that all that equals over 2 million dollars?

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[JSparling]

I don't know. But I do run the accounting department/payroll for a $70M company and I know our overall payroll/compensation costs are going up as I mentioned.

And I know my nightly cost as an owner at HGVC is way lower than a non-owner staying at the same resort. So I'll get over the $10 pretty quickly.

 

[Jason245]

I don't know. But I do run the accounting department/payroll for a $70M company and I know our overall payroll/compensation costs are going up as I mentioned.

And I know my nightly cost as an owner at HGVC is way lower than a non-owner staying at the same resort. So I'll get over the $10 pretty quickly.

Lets do the math:

240k members at a minimum of $150 = $36 Million
240k members at an estimate of one reservation a year ($59 which is conservative since about 1/3 of the options are call in only) = $14.4M

So before we factor in any other fees or revenue sources their "revenue" is ~$50 Million.

Now what do members get for that $50 Million:

A website that only partially works and doesn't let you reserve at all locations.

A call Center

A half ass magazine

All that sales and marketing stuff for new units (which is covered by the actual sales of units)

Here is my rough math on the operation (Note that the resort management stuff is not part of this):

Web site and all the IT support related to it (maybe including development of a "new website") = $5 Million/Year
Call Center = $5 Million a Year
G&A/other = $5 Million a Year
Half Arsed Magazine = $1 Million/year
Bonuses to Executives = $9 Million/year
Profit = $25 Million/year

 

[Wexflyer]

I don't know. But I do run the accounting department/payroll for a $70M company and I know our overall payroll/compensation costs are going up as I mentioned.

And I know my nightly cost as an owner at HGVC is way lower than a non-owner staying at the same resort. So I'll get over the $10 pretty quickly.

I have to strongly disagree. From your earlier post, you are comparing the yearly recurring cost of ownership to the rental cost of the same property. This neglects the very substantial up-front cost of ownership - the original ownership cost - plus the lost "time value of money" for that "investment." In our case, we bought direct from HGVC, meaning we paid about a factor of three more than what the property is actually worth on the open market. I calculate that after more than a decade of ownership, we are still overall negative cost-wise as compared with simply renting an equivalent property every year. Worst investment I ever made. And every year, HGVC increase their fees at substantially more than the rate of inflation, meaning we fall ever further behind.

 

[Jason245]

I have to strongly disagree. From your earlier post, you are comparing the yearly recurring cost of ownership to the rental cost of the same property. This neglects the very substantial up-front cost of ownership - the original ownership cost - plus the lost "time value of money" for that "investment." In our case, we bought direct from HGVC, meaning we paid about a factor of three more than what the property is actually worth on the open market. I calculate that after more than a decade of ownership, we are still overall negative cost-wise as compared with simply renting an equivalent property every year. Worst investment I ever made. And every year, HGVC increase their fees at substantially more than the rate of inflation, meaning we fall ever further behind.

Timeshares are not financial investments... they are non-financial investments.

 

[holdaer]

I have to strongly disagree. From your earlier post, you are comparing the yearly recurring cost of ownership to the rental cost of the same property. This neglects the very substantial up-front cost of ownership - the original ownership cost - plus the lost "time value of money" for that "investment." In our case, we bought direct from HGVC, meaning we paid about a factor of three more than what the property is actually worth on the open market. I calculate that after more than a decade of ownership, we are still overall negative cost-wise as compared with simply renting an equivalent property every year. Worst investment I ever made. And every year, HGVC increase their fees at substantially more than the rate of inflation, meaning we fall ever further behind.

Wexflyer,
We bought direct from HGVC as well in 2010. I agree it's not the best financial investment. However, it's the best investment I have ever made for my family. Even though I could have rented condos all over the US, I didn't. Thus, never took my family on really good vacations. I was cost adverse and deprived them of a really cool vacation.

Since joining HGVC, we are now traveling a lot more and creating memories for a life time. I just bought a 2nd timeshare resale because we needed more points.

Point is, financial investments don't always have an equal return on a family experience. Don't worry about buying direct. Use it like crazy and you'll soon realize HGVC is a really good program. Who knows, you may enjoy it so much that your next purchase will be resale and then you can pay it forward by telling your story down the road.

Enjoy the journey and time with family while you can.

 

[JSparling]

I have to strongly disagree. From your earlier post, you are comparing the yearly recurring cost of ownership to the rental cost of the same property. This neglects the very substantial up-front cost of ownership - the original ownership cost - plus the lost "time value of money" for that "investment." In our case, we bought direct from HGVC, meaning we paid about a factor of three more than what the property is actually worth on the open market. I calculate that after more than a decade of ownership, we are still overall negative cost-wise as compared with simply renting an equivalent property every year. Worst investment I ever made. And every year, HGVC increase their fees at substantially more than the rate of inflation, meaning we fall ever further behind.

I don't think so, WFly - it's a sunk cost. Whether I paid $1K or $50K for my unit doesn't matter when you're talking about how much the MF went up this year. That money is long gone and all I care about - and have to worry about - is paying my current year MF so I can go on an awesome vacation or two.

 

[Jason245]

I don't think so, WFly - it's a sunk cost. Whether I paid $1K or $50K for my unit doesn't matter when you're talking about how much the MF went up this year. That money is long gone and all I care about - and have to worry about - is paying my current year MF so I can go on an awesome vacation or two.

Just to be clear. . Club fees have nothing to do with mf..

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[JSparling]

Right. And the $10 increase in club dues is nothing when you're talking about a $5K vacation.

 

[Jason245]

Per a conversation I just had on the phone with HGVC, Fees for Phone changable reservation are going to be $107 (from $99) and web reservation $55 (from $52).


They also told me that the New site is supposed to be up in March (they said 2016... but given their history... I am guessing closer to 2026)

 

[bogey21]

I never owned HGVC but traded into one of their Las Vegas properties (whichever was available) 4 or 5 times using Weeks where I was paying MFs in the $400 - $500 range. I loved the HGVC Resorts but didn't want to pay their higher MFs and fees or lock myself into HGVC so never bought.

George

 

[SmithOp]

Just found out the 2016 Activation fee will be $535, its currently $315.


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[Jason245]

Just found out the 2016 Activation fee will be $535, its currently $315.


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The year before it was 150.. so we are talking about a 400 percent increase in 3 years. .. outrageous. ..

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[presley]

Just found out the 2016 Activation fee will be $535, its currently $315.

They've got to be kidding. As much as I like HGVC, and it is my favorite TS, I don't think I'll ever recommend new buyers to buy into it.

 

[Jason245]

They've got to be kidding. As much as I like HGVC, and it is my favorite TS, I don't think I'll ever recommend new buyers to buy into it.

At this rate it will be 900 next year and over 2k the year after. ...this will kill resale mkt ala those nasty mexican ts..

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