So, let me get this straight, again, .... Who owns these units that are being used as upgrades? Starwood? NO!, Starwood does not own them. One of us owns them and has decided not to use it. Well then, what is Starwood doing here?
This is another misunderstood issue. Who owns these units? We don't know, but it
could very well be Starwood - they are the largest single owner of weeks in SVN. Unsold weeks belong to Starwood and they are responsible for maintenance and taxes until they are sold. Even a "sold out" resort doesn't mean that Starwood has sold 100% of the weeks - it means they have sold 100% of the weeks they intended to sell. They would be crazy not too keep a small percentage of inventory available for emergency room changes or mainenance issues.
Owners who trade for options or points ("
decided not to use it") surrender their untis to Starwood for them to use as they please. There are no documents that say these units will be made exclusively available to other SVN owners as trades or upgrades. Starwood, as the management company, can assign traded-in units or Starwood owned units to any "inventory pool" they want to - including the SVN-owned weeks pool (which can be rented hotel style, used as promos, whatever).
Starwood uses a fairly complicated system to manage all their inventory pools, and overall it is a pretty good system. This system (as it was once explained to me by an SVN executive) tries to project owner demand for each week at each resort. The projection is based on historical demand, the ratio of sold to unsold weeks in the resorts/seasons, historical % of owners who trade out via II, historical % of internal SVN exchange requests, projected new sales per resort in the next year, projected new SVN resort openings, etc. etc. etc.
The projections are made 12 months in advance to help divide inventory into the pools, and inventories can be shifted between pools if demand changes. A good example of how this system benefits SVN members is the II "bulk deposits" Starwood makes. The deposits are made more than 12 months in advance so owners do not have to worry about "short dated" depsoits in II - owners do not feel the time crunch that non-SVN owners face when deciding whether to deposit weeks into II or not. MOST of us are probably happy that Starwood does not give II many "Big 3" resort weeks to II for non-SVN members to trade into, leaving more internal SVN inventory available to members.
The bottom line is that unless a resort sells fixed weeks and fixed units, there will need to be some system in place that prioritizes how weeks are assigned and used. I think Starwood has a pretty good system overall that keeps most members happy most of the time.
I think Starwood made a mistake by offering so many "premiums" to create the Elite program. Even knowing just a little about their inventory system, I doubt this "villa upgrade" feature would have been sustainable. They are trying to nip it now to avoid biggeer messes in the future.