2021 3rd Quarter HGVC Earnings Call

[dougp26364]

Also DRI DOES NOT pay Booking/Reservation Fees and we have a number of free GC's.

True, but HGVC has a flat membership fee whereas DRI has a fee plus cost per point, so the more you own, the more you pay.

The debate of all inclusive fee vs pay-for-what-you-use fees can be debated until the cows come home.

 

[escanoe]

Further down the line (I expect at least 2 or 3 years out) I am remain VERY interested in what they decide to do with Destination Exchange. Something else competing with RCI/II could be good for competition.

I get a little further out on my DEX (Diamond's Destination Exchange) limb every day. I am now at the point of replying to my own posts. I have been thinking about and writing about this more on TUG since DVC is leaving RCI and there has been speculation HGVC will.

Since people have started comparing Diamond fees to HGVC, I am doing to point out the DEX weekly exchange fee is only $149 (with RCI currently being the portal it connects to in the background). Seems with the leverage of HGVC and DRI now combined and RCI having their fingers stuck in a mouse trap .... at a minimum the newly merged company could drive HGVC users a better bargain on exchanges than newly inflated $259 per week RCI fee.

Here is the membership guide to Destination Exchange.

 

[dougp26364]

I get a little further out on my DEX (Diamond's Destination Exchange) limb every day. I am now at the point of replying to my own posts. I have been thinking about and writing about this more on TUG since DVC is leaving RCI and there has been speculation HGVC will.

Since people have started comparing Diamond fees to HGVC, I am doing to point out the DEX weekly exchange fee is only $149 (with RCI currently being the portal it connects to in the background). Seems with the leverage of HGVC and DRI now combined and RCI having their fingers stuck in a mouse trap .... at a minimum the newly merged company could drive HGVC users a better bargain on exchanges than newly inflated $259 per week RCI fee.

Here is the membership guide to Destination Exchange.

DEX, at least in this context, would be an interesting alternative for Hilton, but on,y of there are quality resorts. That’s the problem with RCI. There just isn’t enough quality resorts to make the exchange worth the cost. With DEX, we’re back to the quality or quantity. In order for me to exchange my HGVC unit, I’m either going to need near equal quality or quantity (more nights in lower quality). That’s what points were suppose to do in RCI, except RCI skewed the points requirements so badly that the quantity didn’t even equal things out. DEX is one thing when all quality is relatively equal, it’s another thing when there’s a notable difference in quality.

RCI is all but useless IMHO as a Hilton owner. We’ve never been interested in DVC and the resort quality with RCI is typically far enough below HGVC it’s just not worth it. Why pay for a filet and accept sirloin in exchange PLUS pay a premium to make the exchange.

And yes I am saying there is a big difference in quality. We were owners in the DRI system dating back to 1998 until approx 5 or 6 years ago. I have seen some of the best units DRI has to offer and, in general, they’re nowhere close to the quality of Hilton. This may be my opinion, but it’s an informed opinion that had been formed over several years of ownership in both systems.

 

[escanoe]

DEX, at least in this context, would be an interesting alternative for Hilton, but on,y of there are quality resorts. That’s the problem with RCI. There just isn’t enough quality resorts to make the exchange worth the cost. With DEX, we’re back to the quality or quantity. In order for me to exchange my HGVC unit, I’m either going to need near equal quality or quantity (more nights in lower quality). That’s what points were suppose to do in RCI, except RCI skewed the points requirements so badly that the quantity didn’t even equal things out. DEX is one thing when all quality is relatively equal, it’s another thing when there’s a notable difference in quality.

I somewhat disagree with you, but also find you make excellent points. I am going to acknowledge upfront my main desire is for HGVC to create a solid exchange that can be a major competitor to II and RCI and less to do with creating a better way to spend HGVC points.

I believe the highest and best use of HGVC points is to use the points in the HGVC system. It surprises me that HGVC or DVC owners would want to use their premium points to exchange out. I can see doing it once in a while, when you want to go to a certain place or unspent points are about to expire .... but otherwise, it is often best to avoid.

In my region (Mid-Atlantic) RCI gives me a lot of good options at local places I want to go and HGVC does not have properties. However, after using some HGVC points for such travel early in my timesharing experience, I decided I needed an RCI Points trader to use in the RCI system versus spending my premium HGVC points. Using HGVC points in RCI only makes sense in extraordinarily high demand areas at peak times where the HGVC grid is your friend .... in most other cases it works against you.

While I like the resorts in both II and RCI, I believe the exchange companies need more competition ... mostly to force them to utilize technology better but also to make them more price competitive. I also don't think it makes sense long-term for HGVC to be dependent upon RCI (Wyndham) or II (Marriott). Through the DRI acquisition the company is about halfway to having its own exchange.