There is no doubt you are correct in MVC view on points value computation. But they should not be "selling" points to folks with the idea that the Explorer Destination program is a good use of points. It is quite the opposite. I wonder if owners/customers understand this. I know I did not until I retired and had the time to research it.
I agree. But isn't that ridiculous to have to do that?? I'm sure MVC isn't using that as a selling point!!!
You now understand it's not generally a good value. There may be a one off rarely. If you think about it, the only way they could get the value up would be to take all the best weeks for rental and even then, with commissions to the sales arm, it'd likely be a wash at best. This is true for every cash type exchange for every situation I am aware of (DVC, MVC, Bluegreen). When I've done the math in the past comparing to a cash reservation with Collette or for cruises, I've consistently gotten right around 34¢ PP for cruises and 43¢ PP for Collete. That's why I suspect Collette is giving MVC a discount. Keep in mind there are sometimes less add ons in this situation but it also ingores any sales or special collette or similar might offer. This is why I've consistently held that it would be foolish to buy MVC, DVC, etc to use for these type of exchanges even just a portion of the time. If you want to argue they shouldn't offer things that are routinely such a bad choice and esp, use them as a sales carrot, I would agree with you.
Dean I would gladly pay .43 PP for Collette. But here is my example...We were looking to book the Collette tour Israel and Jordan: Cultural Crossroads 2023. Using 20,000 points @ .62 (maintenance fee only) is $12,400. The Collette website has the EXACT same tour for $8,800. I confirmed that it was the EXACT same tour with the Collette MVC desk and the direct Collette desk. The MVC "cut" is $3600.00 for the EXACT same trip. Thanks.
My reference was to the value provided, not the price paid PP. For many of us the 43¢ PP is around our fees but I'd still say the points have a larger value than that. But one should always look at the specifics, you may find a one off where it makes sense. It's also more restrictive once booked if you need to change or cancel which may be the largest issue. And as I noted, the comparison often ignores specials one might get routinely dealing in cash if you pay attention. I'd say the MVC likely isn't getting a cut themselves even though there is that amount of drain. I tried to point out the inefficiencies of turning the points into cash and what's left to actually pay for the secured option.
Thanks Dean. My example is not a one off. I think one of my issues is that MVC does not even acknowledge the scenario.
When I said one off, it was referencing that rarely (very rarely if ever) one might find something that actually makes sense using unrestricted points for. Obviously if one has points that are going to be restricted and limited, the evaluation is different though the principles hold. Normally this would happen if the provider gives MVC a large discount not available otherwise or if the prices have gone up on the cash side but locked in on the points side. This likely won't happen and for MVC (unlike DVC) the rates seem to be directly related to the cash price. With DVC they are but it does not appear as fluid and may lag the cash prices by a year or 2. IMO anyone who looks at this with an open mind will decide that ignoring the issue, or at least assuming it'll never work out, is the best choice. It's certainly reasonable to keep one's eyes open just in case. I've followed this situation with 3 timeshares. With Bluegreen it did make sense early in my tenure to pay for cruises or pay fees with them but that has long since gone by the way side. I've only seen one time with DVC and none with MVC when it made sense and even then it was break even (DVC first year they offered AK cruises). It gave $10 PP which was about the going rental rate at the time. Still, there are significant negatives and limitations using points for anything in this arena and thus even if it's close to break even, better to rent and use the $$$ if it's not a true savings. That's true even with the income taxes on the rental side although it does shift the equation somewhat. To me, even better is to just use them myself in other and better ways but YMMV.
I agree with you Sandy. BUT should it be that way?? To be honest if I knew the Explorer Destinations program was not a "fair" deal I would never have purchased the points and just stuck with my deeded properties. My bad. I just want others to understand what they are buying.
