On a slightly different tangent: Who ever ends up with HGV, would it not be true that a trust fund based points system will be introduced?
Really appreciate these perspectives on Diamond.
To answer your question on HGV trust: It's quite possible. HGV is different (see below), however they may be forced by Wall St. in order to have inventory available to sell and avoid a revenue hiccup similar to this past quarter.
HGV has a large Asian (especially Japanese) customer base. According to the HGV CEO, Asians don't trust and won't buy trust points portfolios. (IMO for good reason - I don't either)
Historically, MVC didn't have a points program for trading prior to introducing their DC trust in 2010. So the value prop of using points to book shorter/longer stays instantly online instead weekly OGS via II was strong. Although DC has a higher MF, the system allows owners to rent or rent out their points, so owning a basic level of points and renting could make sense since their trust is now more robust.
With this value proposition it has been 9 years and only 60% of the deeded weeks owners have enrolled in the system because they charge a fee. MVC has not resorted to reported strong-arm Diamond-like tactics because they are viewing this long-term and know that customer satisfaction and repeat business is important in the timeshare world. HGV gets this too.
Vistana points are tied to deeds automatically similar to HGVC. Because Vistana owners already has a points system, the Vistana Flex Trust hasn't been popular. Key difference is you can book at 12 months for the trust inventory for a collection of properties instead of just your home resort (i.e. Westin, Sheraton, Mexico) instead of 8 for their "club reservations." The problem is you are limited to the weeks that are in the trust which are mainly low value mud weeks from defaults, ROFR and none of the OF/OV units for Kaanapali.
Vistana was luring people with Hawaii (IV only), or a limited number of ski weeks and were asking owners to pay $10 - $30k to turn in their unit for a similar points with a higher MF and limited inventory! In addition Flex points have zero resale value because resale buyers only can book in their limited home resort trust and don't have access to StarOptions (system-wide Club) inventory. Certain Vistana mandatory deeded legacy weeks i.e. WKORV north and south, WSJ (specific building), SVV (Bella, Key West), and WKV give resale buyers full access to their Staroption points program in their CC&Rs. Why would any rational person give up that value (and pay money for) a flex week with uncertain inventory and zero resale value that would be difficult to sell?