Good sales offer to help increase ownership status

[DanCali]

They have realized they don't make much money on the selling of points. The real money is in maintenance fees and over charging for third party cruises and tours. For example Collette Tours cost 40% more if you use your MVC points than if you buy directly from Collette.

I don't even bother to look at those tour offers because I know you're right about that...

As for points, how could they not make money when they buy them at ROFR for $3 (as points or weeks) and then sell them for $15? And if they bump up junk fees or maintenance fees, resale prices go down and they get better ROFR prices. Not a lot of businesses have that kind of power... Yes, they do have a lot of marketing expenses and salespeople to pay, but look at the numbers in the past quarter:

Vacation products: the sold $444M and their inventory cost was 76M... add in the 207M in marketing and they still made $161M (36% margin overall)
Management and exchanges: $198M in revenue at a cost of $101M - so thy made $97M (49% margin)
Rental: Revenue was $165M at a cost of $126M - made them $39M at a margin of 24%
Financing made then $74M at a cost of $5M - apparently super profitable for them when people take out loans at 20%... $69M at 93% margin.

So the bulk of the income ($161M) still comes from sales of vacation products ($444M) for which they pay pennies on the dollar ($76M). A 36% profit margin on that segment after the sales and marketing expenses ($207M) is still extremely profitable.

 

[Dean]

I wouldn’t, I might more realistically expect an RTU extension.

Comparatively speaking, I'd agree. You know the location, resort and politics there FAR better than I but unless there's some incentive for the RTU to be extended, I wouldn't expect it. About the only RTU I'd expect to be extended for MVC would be the ones where the extension is built in and it would take action on others part to end it, such as Aruba. Is this the way the resorts in Spain are set up as well or would it take an active extension?

 

[goodbadugly]

I don't even bother to look at those tour offers because I know you're right about that...

As for points, how could they not make money when they buy them at ROFR for $3 (as points or weeks) and then sell them for $15? And if they bump up junk fees or maintenance fees, resale prices go down and they get better ROFR prices. Not a lot of business have that kind of power... Yes, they do have a lot of marketing expenses and salespeople to pay but look at the numbers in the past quarter:

Vacation products: the sold $444M and their inventory cost was 76M... add in the 207M in marketing and they still made $161M (36% margin overall)
Management and exchanges: $198M in revenue at a cost of $101M - so thy made $97M (49% margin)
Rental: Revenue was $165M at a cost of $126M - made them $39M at a margin of 24%
Financing made then $74M at a cost of $5M - apparently super profitable for them when people take out loans at 20%... $69M at 93% margin.

So the bulk of the income ($161M) still comes from sales of vacation products ($444M) for which they pay pennies on the dollar ($76M). A 36% profit margin on that segment after the sales and marketing expenses is still extremely profitable.


View attachment 69850

Geez...not a bad business model if it can holdup. I guess we just have to admit that have us "by the b...s" and live with it! But as a result of these types of deals the rental market for us is going go south for point owners because it will become difficult to rent at .69 (MF) a point. BTW I have spoken with MVC about the tours and cruises. They claim they are very good negotiated deals. I volunteered to do the negotiating for them. What apparently happens is owners are "stuck with end of year points and use them on tours and cruises. MVC counts on this scenario.

 

[bazzap]

Comparatively speaking, I'd agree. You know the location, resort and politics there FAR better than I but unless there's some incentive for the RTU to be extended, I wouldn't expect it. About the only RTU I'd expect to be extended for MVC would be the ones where the extension is built in and it would take action on others part to end it, such as Aruba. Is this the way the resorts in Spain are set up as well or would it take an active extension?

I believe that our Spanish resorts would require an active RTU extension, although to be honest I have not really looked into the detail.
I will try to do so.

 

[cwtkm3]

Maintenance fees 2023 just posted to my account

Our 2BR gold gardenview is Euro 1375.40
Our 3BR lock off gold gardenview is Euro 1547.44

 

[DanCali]

Maintenance fees 2023 just posted to my account

Our 2BR gold gardenview is Euro 1375.40
Our 3BR lock off gold gardenview is Euro 1547.44

I should have prepaid this when it was 1.05 Euros per 1 USD in late September... now it's the opposite

 

[RobTheBub]

Too late to the party for that particular one I assume but I am interested to get into the game with something similar. Will PM you for details is possible!