Have you rented a timeshare week from RCI ?

[Walt]

Have you rented from RCI? ........ I have.

Have you gotten a Confirmation for the Rental?........ I didn’t.

Oh, I got a Confirmation all right. But it is for an Exchange! It is the same Exchange Confirmation Form as you get when you actually make an Exchange. There is nothing on the Confirmation Form that you give to the Resort that says Rental.

There should be 3 Confirmation Forms.

1 For an Exchange.
2 For an Extra Vacation Rental.
3 For a Last Call Rental.

That way there would be a paper trail for each transaction.

I talked to the management at the Beach Club and at the Maui (Embassy) Ka’anapali Resort. Both said that they really can not tell if the unit is being Exchanged into or is being Rented. Not unless the renter comes to them to complain that they didn’t get the best unit at the Resort after they paid all that rental money to come to the Resort.

The management of both resorts also said they get no money from RCI rentals of owner’s Exchange Weeks. In the case of the Beach Club, they are sold out. They have Cunningham Management Company for renting (the owners get about 2/3 of rental fee) and selling any extra weeks for the owners or the HOA. In the case of the Maui Embassy, Developers Weeks are used by the Developer for Developer Promotions.

Both Resorts realize that there is no benefit to them or the Owners, to have units rented out for less than or near the cost of the Maintenance Fee. This hurts sales, re-sales and value of ownership. Both Resorts were not aware of the extent of RCI’s Rental program. Why not talk to your home Resort management about it?

So where does the RCI rental weeks come from?

Maybe there is a reason for only 1 Confirmation Form. No paper trail.

Walt

 

[SBK]

How would this affect 1 in 4?

This concerns me also. When we use an RCI rental outlet for a 1 in 4 location, which we have, and we have been to the resort as an exchanger, how do they know that we have rented the unit and are entitled to to be there? (There's a run on sentence!)

Sounds like maybe we need to ask Madge about this one.

 

[jfbookers]

I rented a Reno week and it showed up as an exchange. I went through a VG when RCI's site was down and explained that this was a rental. After a couple of phone calls and a supervisor everything was corrected, they faxed me a rental confirmation, and my trade week was restored. Don,t know what would have happened if I wasn"t paying attention. Yours, Jim

 

[gmarine]

There is a benefit to the resort to have the units rented cheaply if they otherwise will go empty. The guests in the unit will spend money at the resorts restaurants,shops etc that the resort otherwise would not get if the unit is empty.

I dont agree with RCI renting deposits but from a resort point of view an empty unit doesnt benefit anyone.

 

[Walt]

There is a benefit to the resort to have the units rented cheaply if they otherwise will go empty. The guests in the unit will spend money at the resorts restaurants,shops etc that the resort otherwise would not get if the unit is empty.

In the case of a larger Resort this may or may not be True. In the case of a smaller Resort like the Beach Club there is no extra income from shops and Restaurants.

In both cases the extra wear and tear on the unit may not make it worth while to just give the unit away. And that is what you are doing when RCI rents your Spacebank Week.

Walt

 

[CaliDave]

There is a benefit to the resort to have the units rented cheaply if they otherwise will go empty. The guests in the unit will spend money at the resorts restaurants,shops etc that the resort otherwise would not get if the unit is empty.

I dont agree with RCI renting deposits but from a resort point of view an empty unit doesnt benefit anyone.

We've had this discussion before..
Of the 15 exchanges I've been on only 1 has an onsite restaurant and that is leased and no $$ goes to the HOA.

Most resorts are not like Orange Lake and the huge Orlando resorts

 

[gmarine]

We've had this discussion before..
Of the 15 exchanges I've been on only 1 has an onsite restaurant and that is leased and no $$ goes to the HOA.

Most resorts are not like Orange Lake and the huge Orlando resorts

You are right we did this before and we travel to different types of resorts. I frequent the caribbean, Florida and larger resorts in the west. I tend to visit Marriotts, Hyatts, Westin's and other full service resorts where there are onsite restaurants, shops etc.

Of my 50 plus exchanges I have only been to one resort that didnt have a restaurant and that one did have a grocery store/deli.

All three resorts where I own receive a large amount of revenue from restaurants, shops and activities.

 

[Dani]

There is a benefit to the resort to have the units rented cheaply if they otherwise will go empty. The guests in the unit will spend money at the resorts restaurants,shops etc that the resort otherwise would not get if the unit is empty.

I dont agree with RCI renting deposits but from a resort point of view an empty unit doesnt benefit anyone.

More importantly, the resorts are able to get people into their resorts who might not have otherwise have been exposed to their resort. While RCI or II might pocket a couple of hundred dollars per rental, the resort stands to make thousands even if only a handful bite. It's a win-win situation.

It's simply not true to state that the resorts do not benefit from the rental of units that may have otherwise have gone empty. Many do.

As for the restaurant/amenities issue, I have never stayed at a single timeshare that did not have at least one of it's own restaurants/grocery stores on the premises although I know that some exist.

 

[Walt]

More importantly, the resorts are able to get people into their resorts who might not have otherwise have been exposed to their resort. While RCI or II might pocket a couple of hundred dollars per rental, the resort stands to make thousands even if only a handful bite. It's a win-win situation.

It's simply not true to state that the resorts do not benefit from the rental of units that may have otherwise have gone empty. Many do.

As for the restaurant/amenities issue, I have never stayed at a single timeshare that did not have at least one of it's own restaurants/grocery stores on the premises although I know that some exist.

HAWAII EXCHANGES FOR NOVEMBER 2006

Resort Name Resort ID Location Max Occ Check-in Date Range
Pono Kai Resort

See Reviews 2491 Kapaa, HI, USA 4/4 11/25/2006 - 11/25/2006
PAHIO at Kauai Beach Villas

See Reviews 3681 Lihue, HI, USA 4/4 11/16/2006 - 11/16/2006
Lawai Beach Resort

See Reviews 5080 Koloa, HI, USA 4/4 11/03/2006 - 11/25/2006

-------------------------------------------------------------------------

HAWAII RENTALS FOR NOVEMBER 2006


The Kuleana Club

0030 Lahaina, HI, USA 4/4 11/24/2006 - 11/24/2006 $1,538.99

Royal Aloha Vacation Club/Waikik

See Reviews 0082 Honolulu, HI, USA 4/4 11/13/2006 - 11/13/2006 $1,119.99

Maui Sunset

See Reviews 0192 Kihei, HI, USA 4/4 11/05/2006 - 12/03/2006 $1,006.99

Lifetime in Hawaii

See Reviews 1138 Honolulu, HI, USA 4/2 11/11/2006 - 12/02/2006 $1,009.99
PAHIO at Ka'Eo Kai

See Reviews 1376 Princeville, HI, USA 6/4 11/03/2006 - 12/07/2006 $1,159.99

The Makai Club Cottages

1580 Princeville, HI, USA 6/4 11/12/2006 - 12/03/2006 $1,159.99

Alii Kai Resort

See Reviews 2201 Princeville, HI, USA 6/6 11/18/2006 - 12/02/2006 $1,159.99

Pono Kai Resort

See Reviews 2491 Kapaa, HI, USA 6/4 11/04/2006 - 11/11/2006 $1,119.99

Imperial Hawaii Vacation Club

See Reviews 2605 Honolulu, HI, USA 4/2 11/10/2006 - 12/06/2006 $1,009.99
Kahana Falls

See Reviews 2788 Lahaina, HI, USA 2/2 11/17/2006 - 11/18/2006 $1,059.99
PAHIO at Bali Hai Villas

See Reviews 3031 Princeville, HI, USA 6/6 11/02/2006 - 11/30/2006 $1,159.99

PAHIO at Kauai Beach Villas

See Reviews 3681 Lihue, HI, USA 6/4 11/23/2006 - 12/07/2006 $1,119.99

Poipu Point Vacation Resort

See Reviews 3682 Koloa, HI, USA 6/6 11/02/2006 - 12/07/2006 $1,159.99

Paniolo Greens

See Reviews 3977 Waikoloa, HI, USA 6/6 11/04/2006 - 12/02/2006 $1,159.99

Mauna Loa Village by the Sea

See Reviews 4908 Kailua-Kona, HI, USA 6/4 11/03/2006 - 12/01/2006 $1,177.99

Ka'anapali Beach Vacation Resort

See Reviews 4985 Lahaina, HI, USA 4/4 11/01/2006 - 12/07/2006 $1,119.99
Fairfield Hawaii at Kona Hawaiia

See Reviews 5971 Kailua-Kona, HI, USA 6/4 11/03/2006 - 12/01/2006 $1,994.99

SVC @ Waikiki Marina Resort @ Il

6449 Honolulu, HI, USA 4/2 11/12/2006 - 12/03/2006 $369.99
SVC @ Kona Coast Resort II 5 Nig

6456 Kailua-Kona, HI, USA 4/4 11/05/2006 - 11/19/2006 $1,049.99

Aston Pacific Monarch - Holiday

8483 Honolulu, HI, USA 5/2 11/04/2006 - 12/02/2006 $863.99
Aston Waikiki Beach Hotel - Holi

8496 Honolulu, HI, USA 4/2 11/04/2006 - 12/02/2006 $1,430.99
Aston Kaanapali Shores - Holiday

8497 Lahaina, HI, USA 7/2 11/04/2006 - 12/02/2006 $1,097.99
Aston Waikiki Sunset - Holiday N

8499 Honolulu, HI, USA 5/4 11/04/2006 - 12/02/2006 $1,124.99

Maui Kaanapali Villas - Holiday

8503 Lahaina, HI, USA 4/2 11/04/2006 - 12/02/2006 $1,016.99

------------------------------------------------------------------------
Dani,

According to RCI, a Hawaii exchange is a hard trade. Why? Because maybe they are renting?

According to you, RCI is making a few hundred dollars per rental. How is this true with these rental rates, when they are using owner's spacebank weeks?

I hope you don't believe that most timeshare users are eating 3 meals a day at the Resort's restaurant.

I hope you don't really believe that non-owner renters are willing to pay for timeshare ownership.

Walt

 

[BocaBum99]

I encourage all who agree with Walt to join in the class action lawsuit against RCI. You now have your venue to get compensated for any wrongs that have been done to you.

I really hope that it goes to trial because I would like to know the truth of what is really going on. For me, I have not been wronged and I feel badly that I have taken out more than my fair share of exchanges.

I have no idea if RCI really is inapproriately renting spacebank weeks. It does seem fishy, but that doesn't prove guilt. If they are inappropriately renting deposits, then they should be severely punished with the greatest punitive and compensatory damages possible.

That said, I strongly believe that if rentals are done properly and inventory is managed ethically that rentals are good for timesharing. All timesharing resorts should incorporate a strong rental program into their mix. It is a far bigger problem, in my mind, to have an empty resort that it is to have renters filling up the rooms. If the HOA cannot capture value from that activity, then there is more that they can do.

 

[Walt]

I encourage all who agree with Walt to join in the class action lawsuit against RCI. You now have your venue to get compensated for any wrongs that have been done to you.

I really hope that it goes to trial because I would like to know the truth of what is really going on. For me, I have not been wronged and I feel badly that I have taken out more than my fair share of exchanges.

I have no idea if RCI really is inapproriately renting spacebank weeks. It does seem fishy, but that doesn't prove guilt. If they are inappropriately renting deposits, then they should be severely punished with the greatest punitive and compensatory damages possible.

That said, I strongly believe that if rentals are done properly and inventory is managed ethically that rentals are good for timesharing. All timesharing resorts should incorporate a strong rental program into their mix. It is a far bigger problem, in my mind, to have an empty resort that it is to have renters filling up the rooms. If the HOA cannot capture value from that activity, then there is more that they can do.

Hi BocaBum99,

I said "Both Resorts realize that there is no benefit to them or the Owners, to have units rented out for less than or near the cost of the Maintenance Fee. This hurts sales, re-sales and value of ownership. Both Resorts were not aware of the extent of RCI’s Rental program. Why not talk to your home Resort management about it?

Please do not put my name and class action lawsuit in the same sentence. Your conclusion that I have joined the class action lawsuit against RCI just because I am against RCI renting Prime Resorts in Prime Time to anyone off the street is false.

I agree with you that things seem fishy. but that doesn't prove guilt. If RCI would just make all rentals available as both exchanges and discounted rentals to it's membership, the law firms might have a hard time proving guilt. Oh, by the way that is what they have said they are doing.

"I can assure you that ALL of the weeks deposited by RCI Weeks members for exchange are available exclusively for exchange unless and until they fall within the "marketable inventory" category (at which point they are still available for exchange), which refers to weeks that members historically simply do not want or use.

And, all of the weeks in RCI's rental inventory are offered to members at a significant discount off the price charged to the general public."

Generally-Comments from a Vice President, RCI

http://www.tug2.net/advice/FAQ-AskRCI.htm#_Toc32570621

Walt

 

[Dani]

HAWAII EXCHANGES FOR NOVEMBER 2006

Resort Name Resort ID Location Max Occ Check-in Date Range
Pono Kai Resort

See Reviews 2491 Kapaa, HI, USA 4/4 11/25/2006 - 11/25/2006
PAHIO at Kauai Beach Villas

See Reviews 3681 Lihue, HI, USA 4/4 11/16/2006 - 11/16/2006
Lawai Beach Resort

See Reviews 5080 Koloa, HI, USA 4/4 11/03/2006 - 11/25/2006

-------------------------------------------------------------------------

HAWAII RENTALS FOR NOVEMBER 2006


The Kuleana Club

0030 Lahaina, HI, USA 4/4 11/24/2006 - 11/24/2006 $1,538.99

Royal Aloha Vacation Club/Waikik

See Reviews 0082 Honolulu, HI, USA 4/4 11/13/2006 - 11/13/2006 $1,119.99

Maui Sunset

See Reviews 0192 Kihei, HI, USA 4/4 11/05/2006 - 12/03/2006 $1,006.99

Lifetime in Hawaii

See Reviews 1138 Honolulu, HI, USA 4/2 11/11/2006 - 12/02/2006 $1,009.99
PAHIO at Ka'Eo Kai

See Reviews 1376 Princeville, HI, USA 6/4 11/03/2006 - 12/07/2006 $1,159.99

The Makai Club Cottages

1580 Princeville, HI, USA 6/4 11/12/2006 - 12/03/2006 $1,159.99

Alii Kai Resort

See Reviews 2201 Princeville, HI, USA 6/6 11/18/2006 - 12/02/2006 $1,159.99

Pono Kai Resort

See Reviews 2491 Kapaa, HI, USA 6/4 11/04/2006 - 11/11/2006 $1,119.99

Imperial Hawaii Vacation Club

See Reviews 2605 Honolulu, HI, USA 4/2 11/10/2006 - 12/06/2006 $1,009.99
Kahana Falls

See Reviews 2788 Lahaina, HI, USA 2/2 11/17/2006 - 11/18/2006 $1,059.99
PAHIO at Bali Hai Villas

See Reviews 3031 Princeville, HI, USA 6/6 11/02/2006 - 11/30/2006 $1,159.99

PAHIO at Kauai Beach Villas

See Reviews 3681 Lihue, HI, USA 6/4 11/23/2006 - 12/07/2006 $1,119.99

Poipu Point Vacation Resort

See Reviews 3682 Koloa, HI, USA 6/6 11/02/2006 - 12/07/2006 $1,159.99

Paniolo Greens

See Reviews 3977 Waikoloa, HI, USA 6/6 11/04/2006 - 12/02/2006 $1,159.99

Mauna Loa Village by the Sea

See Reviews 4908 Kailua-Kona, HI, USA 6/4 11/03/2006 - 12/01/2006 $1,177.99

Ka'anapali Beach Vacation Resort

See Reviews 4985 Lahaina, HI, USA 4/4 11/01/2006 - 12/07/2006 $1,119.99
Fairfield Hawaii at Kona Hawaiia

See Reviews 5971 Kailua-Kona, HI, USA 6/4 11/03/2006 - 12/01/2006 $1,994.99

SVC @ Waikiki Marina Resort @ Il

6449 Honolulu, HI, USA 4/2 11/12/2006 - 12/03/2006 $369.99
SVC @ Kona Coast Resort II 5 Nig

6456 Kailua-Kona, HI, USA 4/4 11/05/2006 - 11/19/2006 $1,049.99

Aston Pacific Monarch - Holiday

8483 Honolulu, HI, USA 5/2 11/04/2006 - 12/02/2006 $863.99
Aston Waikiki Beach Hotel - Holi

8496 Honolulu, HI, USA 4/2 11/04/2006 - 12/02/2006 $1,430.99
Aston Kaanapali Shores - Holiday

8497 Lahaina, HI, USA 7/2 11/04/2006 - 12/02/2006 $1,097.99
Aston Waikiki Sunset - Holiday N

8499 Honolulu, HI, USA 5/4 11/04/2006 - 12/02/2006 $1,124.99

Maui Kaanapali Villas - Holiday

8503 Lahaina, HI, USA 4/2 11/04/2006 - 12/02/2006 $1,016.99

------------------------------------------------------------------------
Dani,

According to RCI, a Hawaii exchange is a hard trade. Why? Because maybe they are renting?

According to you, RCI is making a few hundred dollars per rental. How is this true with these rental rates, when they are using owner's spacebank weeks?

I hope you don't believe that most timeshare users are eating 3 meals a day at the Resort's restaurant.

I hope you don't really believe that non-owner renters are willing to pay for timeshare ownership.

Walt

Walt,

I have no idea what your point is relative to my statement. While there are rentals where RCI makes $1,000 per rental, there are also many, many rentals where they make only a few hundred dollars. For arguments sake, let's say they are making $1,000 per rental. The point remains the same. Both RCI and resorts benefit from this arrangement. Nothing you have said changes this simple fact.

As for your comment about renters not being willing to pay for timeshare ownership...you are dead wrong.

As for the rest, I am not interested in getting back on this merry-go round. It has all literally been said before...over and over again.

 

[CaliDave]

The point remains the same. Both RCI and resorts benefit from this arrangement. Nothing you have said changes this simple fact.

I don't understand how you can say this is fact.
I do agree that if a resort has a restaurant and possibly a decent sized store. They could make enough to justify the occupancy costs.

I also agree that if a resort is in developer sales, its a huge benefit to the developer. However it is not necessarily a benefit to the HOA who might be paying for the extra housekeeping, and wear and tear on the furnishings.

Also you are assuming most resorts are this way.
Look thorugh the RCI book, many if not most resorts are sold out and do not have these amenties.

Of the 3500 resorts, how many would you say benefit? I'd guess 15%
Which are probably the top 15% which most tuggers visit.

I'd be curious to see if the HOA's actually get revenue from most of the onsite restuarants or if they developer held onto that part of the business.

 

[Carolinian]

I don't know a single resort on the OBX that would come out ahead with an RCI rental instead of a unit being vacant. A vacant unit incurs no costs for cleaning, utilities, etc. A rented unit does, and with either no or insufficient offsetting revenue. From other posters familiar with resort economics elsewhere, this situation is not unique to the OBX.

Many, probably the majority of, resorts do not have restaurants or shops, and for those that do, I strongly suspect that the average profit from the occupants of a unit would still come out substnatially less than the costs incurred by the unit being occupied.

There is a benefit to the resort to have the units rented cheaply if they otherwise will go empty. The guests in the unit will spend money at the resorts restaurants,shops etc that the resort otherwise would not get if the unit is empty.

I dont agree with RCI renting deposits but from a resort point of view an empty unit doesnt benefit anyone.

 

[Carolinian]

You are only considering resorts still in developer sales.

Resorts that are sold out are hosed by the RCI rentals. No or very little income, more expense, and an incentive for existing off season owners to bail out for cheap rentals. It is the worst of all worlds for sold out resorts.

More importantly, the resorts are able to get people into their resorts who might not have otherwise have been exposed to their resort. While RCI or II might pocket a couple of hundred dollars per rental, the resort stands to make thousands even if only a handful bite. It's a win-win situation.

It's simply not true to state that the resorts do not benefit from the rental of units that may have otherwise have gone empty. Many do.

As for the restaurant/amenities issue, I have never stayed at a single timeshare that did not have at least one of it's own restaurants/grocery stores on the premises although I know that some exist.

 

[geekette]

Have you rented from RCI? ........ I have.

Have you gotten a Confirmation for the Rental?........ I didn’t.

Oh, I got a Confirmation all right. But it is for an Exchange! It is the same Exchange Confirmation Form as you get when you actually make an Exchange. There is nothing on the Confirmation Form that you give to the Resort that says Rental.

So what? Did you get to use the week? If so, what's the big deal? You got a piece of paper that says you have a reservation. Why would the resort even care where you came from?

 

[Walt]

So what? Did you get to use the week? If so, what's the big deal? You got a piece of paper that says you have a reservation. Why would the resort even care where you came from?

Let us say that the Maui Embassy gives RCI 200 units per month to be placed in the Exchanged Pool. They are placed in the Exchange Pool so that all Embassy Owners can trade into the Maui Embassy from 6 months to 1 year out. Exchanges should not be available to non Embassy owners until 6 months or less. This is in the Owners contract with the Embassy.

But RCI takes 180 of these FREE (no charge to RCI) and rents them out for $1100 to $1200 per week, 6 months to 1 year out. Only 20 units get into the Spacebank Pool at the normal exchange fee of $147. Let say 200 Embassy Owners try to get into the Maui Embassy each month. But only 20 untis are available. 180 Embassy owners wonder why they can not trade into the Maui Embassy. They talk to the Embassy Management and they find out that all of the 200 units were Exchanges (not Rentals) into the Embassy Maui. The Maui Embassy tells them this because as far as they can tell all Paper Trails forms (Exchange Confirmation Forms) said they were Exchanges. There is nothing given to the Maui Embasssy that tells the Maui Embassy that 180 of these so called Exchanges are really Rentals.

Give me one good reason that RCI would not have the ablity to print out Rental Confirmations to renters. How long would it take for any good software programer to change "Exchange Confirmation" to "Extra Vacation Exchange"?

It appears to be in RCI best interests not to inform the Resorts that Spacebank Weeks are being used for rentals. It surely in not in the best interest of the Resorts to receive no income from the Rentals. Don't you think that the Resort has a right to know how many units are being used for Rentals.

$147 or $1200, which amount do you think RCI would rather collect?

Walt

 

[Dani]

You are only considering resorts still in developer sales.

Resorts that are sold out are hosed by the RCI rentals. No or very little income, more expense, and an incentive for existing off season owners to bail out for cheap rentals. It is the worst of all worlds for sold out resorts.

You are absolutely right. There is very little to gain for resorts that are sold out if in fact the resort does not receive a fee or some other incentive.

 

[Dani]

I don't understand how you can say this is fact.
I do agree that if a resort has a restaurant and possibly a decent sized store. They could make enough to justify the occupancy costs.

I also agree that if a resort is in developer sales, its a huge benefit to the developer. However it is not necessarily a benefit to the HOA who might be paying for the extra housekeeping, and wear and tear on the furnishings.

Also you are assuming most resorts are this way.
Look thorugh the RCI book, many if not most resorts are sold out and do not have these amenties.

Of the 3500 resorts, how many would you say benefit? I'd guess 15%
Which are probably the top 15% which most tuggers visit.

I'd be curious to see if the HOA's actually get revenue from most of the onsite restuarants or if they developer held onto that part of the business.

As I said above, I do agree that resorts that are sold out do not stand to gain much. However, I would also say that the vast majority of rentals percentage wise are at resorts that are not sold out.

 

[gmarine]

I agree that rentals at sold out resorts that dont have restaurants or shops doesnt help anyone.

However resorts that are actively selling get potential new buyers by these rentals. And in general, resorts with restaurants gain more revenue than the cost of having the units go empty.

 

[Dave M]

So far, you haven't made a case that it's really any of Embassy's business or that there has been any contract violation.

Unless, I'm missing something, those 200 spacebanked weeks are made on behalf of owners (they don't belong to Embassy), so that if you decide to do an exchange with RCI instead of using your week, RCI has a week from Embassy for which RCI can assign a particular value for your planned exchange.

The contract related to the deposit with RCI is between you and RCI, not between Embassy and RCI. Thus, Embassy is not entitled to any rent, no matter what RCI does with that week. And you're not entitled to any compensation because RCI's contract with you allows it to do what it wants with that week, no matter what some executive might have said several years ago.

Thus, I agree with geekette. What's the big deal? You got what you needed - a confirmation so that you can occupy the week you paid for.

 

[BocaBum99]

So far, you haven't made a case that it's really any of Embassy's business or that there has been any contract violation.

Unless, I'm missing something, those 200 spacebanked weeks are made on behalf of owners (they don't belong to Embassy), so that if you decide to do an exchange with RCI instead of using your week, RCI has a week from Embassy for which RCI can assign a particular value for your planned exchange.

The contract related to the deposit with RCI is between you and RCI, not between Embassy and RCI. Thus, Embassy is not entitled to any rent, no matter what RCI does with that week. And you're not entitled to any compensation because RCI's contract with you allows it to do what it wants with that week, no matter what some executive might have said several years ago.

Thus, I agree with geekette. What's the big deal? You got what you needed - a confirmation so that you can occupy the week you paid for.

I agree with geekette and Dave M. As usual, they are right. In this case, I happened to agree with them.

 

[CaliDave]

I would also say that the vast majority of rentals percentage wise are at resorts that are not sold out.

You might be right.. RCI probably has the easiest time renting out those types of resorts & possibly the developers gives RCI more inventory than a typical sold out resort would.

 

[BocaBum99]

I don't know a single resort on the OBX that would come out ahead with an RCI rental instead of a unit being vacant. A vacant unit incurs no costs for cleaning, utilities, etc. A rented unit does, and with either no or insufficient offsetting revenue. From other posters familiar with resort economics elsewhere, this situation is not unique to the OBX.

Many, probably the majority of, resorts do not have restaurants or shops, and for those that do, I strongly suspect that the average profit from the occupants of a unit would still come out substnatially less than the costs incurred by the unit being occupied.

Sure, it is always true that getting something for nothing is better than getting something for something. The value is something - 0 = something.

If a week goes vacant that would have otherwise been filled by an RCI rental, that's because a depositer at that resort deposited it and nobody wanted it. The resort got something in the maintenance fee that covers the costs for that unit and the owner got something as well in an exchange deposit from RCI.

So, if RCI puts a renter or an exchanger into that unit, I'd say it was a fair exchange from the resorts point of view.

In fact, I will go further and say that owners at that resort will benefit if RCI gives the resort higher trading power by counting the rentals as exchanges.

Moreover, it is extremely easy for a smart resort to capitalize on RCI rentals if they are indeed below market rate. All the resort needs to do is to acquire back the units from RCI by renting them at that below market rate and then re-rent them to the general public for profit.

If I were going to inform my resort about anything, it would be do create its own rental program to acquire back from RCI any inventory that is below market and can be rented for a signficant profit and use those proceeds to reduce maintenance fees. Anyone familiar with making money would come up with that before I did.

Ever consider that?

Business is different than Personal life. In personal life, do unto others as you would have them do unto you. In business, it's do unto others before they do unto you.

 

[Carolinian]

I agree that rentals at sold out resorts that dont have restaurants or shops doesnt help anyone.

However resorts that are actively selling get potential new buyers by these rentals. And in general, resorts with restaurants gain more revenue than the cost of having the units go empty.

I can't imagine that the cheapo rentals would produce many sales.

I had offered a friend of mine use of a week to do an exchange after her county commision election was over. However, before we got that set up, her boyfriend found the SkyAuction rentals and rented a week for a bit over $200, with an RCI confirmation. Before that experience she had been wanting to learn more about owning and exchanging. Now she thinks that is foolish because she has found the cheap RCI rentals. And while they were in Acapulco, they did a couple of t/s tours. They laughed at the salesmen, told them what they had rented a nice 2BR with a nice ocean view for, and said why in the world would they ever want to buy!!

As to restaurants, many resorts are lucky if they break even with a restaurant. The restaurant business is not an easy one to make money in. Many banks will not touch a loan to a restaurant with a 10 foot pole becuase so many fail. And besides, if you have a full kitchen, doesn't that discourage eating in the restaurant?