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Inventory Control and Optimization Comparable Exchange for Weeks Ownership
Interval International continually monitors its exchange valuation processes, consumer demand
patterns, and members’ deposit and request behavior to ensure that exchange inventory is
optimized to match the right accommodations to the right member at the right time.
Our global exchange system operates on the basis of Comparable Exchange between the unit
being relinquished and the unit being confirmed. To accomplish this, Interval evaluates multiple
attributes of the inventory at the time of deposit to establish its initial value. We then
continually re-evaluate and recalibrate this value for as long as this inventory remains available.
The attributes considered in our valuation process include:
Supply and Demand
Unlike traditional hotels and resorts, Interval’s inventory supply is dynamic and highly
dependent upon member deposit activity. Deposit behavior is continually monitored and
current and historical supply curves are analyzed to identify possible shortages and
oversupplies. As changes in supply levels are projected, the value of the inventory within the
exchange system also changes. When an oversupply is projected, greater access to inventory
exists, and when potential shortages are identified, access naturally becomes more restricted.
These changes can occur at the resort, unit size, and occupancy date levels.
Quality, Facilities, and Overall Experience
Interval International takes great pride in being The Quality Vacation Exchange Network®, and
we strive to confirm exchanges into resorts that offer an overall guest experience similar to that
of our members’ respective home resorts. Interval uses a proprietary quality measuring tool
and ongoing guest feedback to establish an overall “quality” level that is then used to identify
potential similar exchange matches.
Unit Type and Private Sleeping Capacity
Interval also strives to match exchange requests to the unit-size/private sleeping capacity that
is similar to that of the unit being relinquished. A member’s access to specific unit types that
might be larger than the one they currently own varies based on Interval’s ongoing analysis of
supply and demand, as well as inventory valuation. For this reason, members who have
relinquished smaller unit types may be offered an opportunity to “upgrade” their exchange into
a larger unit type, such as a two-bedroom.
Recent research, including focus groups and surveys, revealed that many members accept unit-
size upgrades even in instances in which their actual travel party does not require it. This
finding, along with the fact that points-based members already relinquish more points when
receiving a larger unit, the trend toward shorter booking windows, and other factors,
influenced the introduction of the unit-size upgrade fee. This will assist with improved
inventory optimization and provide more opportunities for members with larger travel parties.
Lead Time to Initial Occupancy Date
Inventory that is made available to Interval’s exchange system further in advance is inherently
more valuable than inventory that is made available with shorter lead time. While additional
lead time provides greater opportunity for overall inventory utilization, inventory that is
deposited with minimal lead time represents less value to the system. For this reason, members
who deposit during the Flexchange window (currently 59 days or less prior to check-in date) are
limited to exchanging within Flexchange.
One significant advantage of Flexchange, however, is that exchange access is enhanced,
allowing members to confirm any available unit size and season. It is important to note that
comparability of quality matching is still maintained for members who are relinquishing high-
quality resort accommodations. During this period, the unit-size upgrade fee does not apply.
Interval is committed to providing comparable exchanges to members around the world. Our
inventory control and optimization processes are designed to create the greatest number of
exchange opportunities possible for members, while maintaining fairness across the system.
Final – 7/6/16
Link to document:
https://community.intervalworld.com...comparable-exchange-for-weeks-ownership/43229
