HGV 2024 Q3 Investors Report

[WaikikiFirst]

amazed how much the TS companies want to set up the sales for disappointment down the road

Do you mean "amazed how much the TS companies want to set up NEW OWNERS for disappointment down the road"?
seems to me, all the confusion and bait-switching and well-buts is designed to help SALES.
and disappointed OWNERS are supposed to come back in to be upgraded by SALES.

 

[jp10558]

No ... OK, so there should be a hard limit to Max penetration as disgruntled new owners who were given Max begin to resell there weeks. Til then
EndOfQtr Max# = BeginOfQtr Max# + all those New Owners
Eventually, and maybe not far off,
EndOfQtr Max# = BeginOfQtr Max# + all those New Owners - Max Owners Who Resell or Deedback

You know, I guess I don't understand much about how Max actually works - but it also seems to me that HGV needs traded weeks (in Max) from each sub system for there to be availability at all right? Or are they able to take a week from HGVC that the owner didn't trade into Max at 6 months out? At least they can't double book the weeks obviously. IDK how it all works, but in HGVC there's an underlying week - but DRI doesn't have a week you could point to, though presumably there's some unit of time at some location that backs the points right?

If they actually are matching the Max stay to some real backing points, then it seems like availability will actually be even worse than implied by the 6 month window.

 

[jp10558]

Do you mean "amazed how much the TS companies want to set up NEW OWNERS for disappointment down the road"?
seems to me, all the confusion and bait-switching and well-buts is designed to help SALES.
and disappointed OWNERS are supposed to come back in to be upgraded by SALES.

Sorry, yes - I meant NEW OWNERS. I keep figuring it's easier to upgrade someone who actually likes the product, but all the sales folks keep proving me wrong.

 

[SmithOp]

OK, so if an owner stays for a wk, and doesn't even attend a presentation or spend much at the resort, they go in the denominator and tiny $ value goes in numerator?
If it is Everything divided by Everyone, I will try later to calc it just using revs vs total guests (stays

That's me at Kings Land next year staying 12 days. There isn't much of a restaurant there and we don't buy many pool bar drinks. I do like a Lava Flow in the souvenir plastic glass to start the stay.

We prefer picking up wine at Costco and putting the bottle in my wife's beach bag when we go to the pool and fill the souvenir glass.

 

[WaikikiFirst]

on the 9% higher $s/guest since 2019 vs inflation, I checked on FRED. Since mid-2019, US CPI has risen >20% from about 255 to 315

Consumer Price Index for All Urban Consumers: All Items in U.S. City Average

View data of the CPI, or an inflation measure derived from tracking the changes in the weighted-average price of a basket of common goods and services.

fred.stlouisfed.org

 

[buzglyd]

That's me at Kings Land next year staying 12 days. There isn't much of a restaurant there and we don't buy many pool bar drinks. I do like a Lava Flow in the souvenir plastic glass to start the stay.

We prefer picking up wine at Costco and putting the bottle in my wife's beach bag when we go to the pool and fill the souvenir glass.

I’m telling on you!

 

[dioxide45]

anybody know what BG sites deserve HGVC? Does add variety.

Maybe Branson?

 

[dioxide45]

How much each guest is spending on their stay. From what I understand, it includes everything. Contract sales, rental charges, store sales, bar/restaurant sales and any other fees or purchases a guest makes.

VPG is purely a sales metric. Contract sales divided by the number of tours. It has nothing to do with on site food and beverage or other guest charges.

This is from the attachment;
Volume per guest (“VPG”) represents the sales attributable to tours at HGV’s sales locations and is calculated by dividing contract sales, excluding telesales, by tour flow. HGV considers VPG to be an important operating measure because it measures the effectiveness of HGV’s sales process, combining the average transaction price with closing rate.

 

[dioxide45]

Marriott Vacations VPG was also down quarter over quarter and year over year. It seems that they are just pushing bodies through the sales floor. We did six tours with Marriott/Vistana over an 8 week period. We told them each time we had just done one, they didn't care. It seems marketing has been told that any warm bodies through sales is good enough.

 

[GT75]

You know, I guess I don't understand much about how Max actually works - but it also seems to me that HGV needs traded weeks (in Max) from each sub system for there to be availability at all right?

I think that it is an exchange system similar to DEX or RCI. I don’t think HGV cares if there isn’t any inventory in the exchange system. That isn’t their problem so to speak. They just want sell you the product.

 

[alexinorlando]

To me one of the most interesting (unanswered) questions is if there will be another points adjustment for Bluegreen? Or how will they value the points?

 

[alexinorlando]

I have always thought that many of the Bluegreen properties and units were on par with many of the HGVC units and resorts. So interesting (and in my opinion justified) to see that they will be mixing the designation of the names of the resorts.

I would expect the booking capabilities to fall in line with the other Max guidelines. So any Bluegreen resorts rebranded as Hilton grand locations will not be available to legacy Hilton owners unless they have max (just like embark).

 

[Reddart]

I would expect the booking capabilities to fall in line with the other Max guidelines. So any Bluegreen resorts rebranded as Hilton grand locations will not be available to legacy Hilton owners unless they have max (just like embark).

But the call seems to imply some differing designation:

Most BlueGreen properties will be put into HVC with a handful of “unique properties” will become HGVC properties

Kind of “sounds” like they might be available to HGVC owners? Or possibly some kind of standalone property like Sandestin that is not available to legacy HGVC?

 

[alexinorlando]

But the call seems to imply some differing designation:

Kind of “sounds” like they might be available to HGVC owners? Or possibly some kind of standalone property like Sandestin that is not available to legacy HGVC?

From my understanding (I don’t have Max) the embark properties, whether they rebranded as Hilton Grand vacation or not are available to Hilton Grand vacation club members through max (I could be wrong).

 

[jp10558]

I would expect the booking capabilities to fall in line with the other Max guidelines. So any Bluegreen resorts rebranded as Hilton grand locations will not be available to legacy Hilton owners unless they have max (just like embark).

Which is asinine. In just about any other industry confusing customers like this would be a big negative. Oh well lol, I'm sure we get good deals from bamboozling everyone else.

 

[dayooper]

From my understanding (I don’t have Max) the embark properties, whether they rebranded as Hilton Grand vacation or not are available to Hilton Grand vacation club members through max (I could be wrong).

That is true, but there were other reasons why they weren’t available. The charter that started the trust was very specific. Doesn’t stop exchanges, though. HGV could easily set up an exchange program like they had before Embarc (Intrawest at the time) was bought out by DRI.

 

[GT75]

To me one of the most interesting (unanswered) questions is if there will be another points adjustment for Bluegreen? Or how will they value the points?

Good question. I am wondering the same thing. I think that BG has higher pts than HGVC/HVC. Well, maybe not looking at our update TS Point Comparison chart.

Timeshare System Points Comparison Chart

side by side comparison chart of all the major Timeshare Point systems

tug2.net

 

[pedro47]

What are the major differences from the original HGV/DRI and HGV/Max other than costs.

 

[GT75]

What are the major differences from the original HGV/DRI and HGV/Max other than costs.

You need to ask that question in the HVC forum.

 

[GT75]

Most BlueGreen properties will be put into HVC with a handful of “unique properties” will become HGVC properties

Looking at the transcript, a handful of "unique properties" will become part of the "Hilton Grand Vacations" brand. HGV can not even get the terminology correct. I do suspect that they mean HGVC and not HGV.

 

[sponger76]

I guess Aspen & Vail would cause a blizzard of interest. Maybe even North Miami Bch, though it is very far north and most people seem to like being around the drunks in So Bch. keep fingers crossed

I used to own BG, but I got rid of it. My take is that Vail is new to the BG system so there is probably a lot of availability there due to sales just starting. Aspen is a small property, nice rooms but not the best location within Aspen itself (not right near the slopes). With that being said, it is still super popular just because of the fact that it is still in Apsen. It is practically impossible to get stays during peak winter or summer even for existing BG owners who don't own at that specific resort, availability is extremely rare outside of the shoulder seasons. Usually I would only see a night or two here or there.

As for your up-thread question about locations that are HGVC-worthy, the nicest location I've been to is in Big Bear, where they happen to be currently constructing additional buildings. The Fountains property in Orlando is pretty nice too, but HGVC already has resorts in Orlando. Some of the Branson area properties are cool. But there are also a lot properties that are decidedly underwhelming.

 

[mjm1]

When we stayed at the Marriott Streamside building in Vail we noticed that Bluegreen has a counter in the shared lobby for the Marriott buildings. I believe Bluegreen took over one building that is down by the frontage road that runs along the freeway. Unfortunately, I don’t recall the details. The resort is a couple miles west of Vail Village.

 

[dayooper]

I think that Vail and Big Bear would be candidates. I also think some of the City Collection are candidates, too. Maybe one of the Massachusetts resorts but I’m not sure about those. Personally, I would love the Tradewinds in St Pete’s Beach/Treasure Island, but I highly doubt that would happen.

 

[dayooper]

VPG is purely a sales metric. Contract sales divided by the number of tours. It has nothing to do with on site food and beverage or other guest charges.

This is from the attachment;
Volume per guest (“VPG”) represents the sales attributable to tours at HGV’s sales locations and is calculated by dividing contract sales, excluding telesales, by tour flow. HGV considers VPG to be an important operating measure because it measures the effectiveness of HGV’s sales process, combining the average transaction price with closing rate.

Learn something new everyday. Thanks for the correction.

 

[heitmullerj02]

I’m sorry but looking @ BG in Kauai, and FL, I am still unimpressed but these resorts. I own HGVC and cannot see why they would even include these resorts to us since we have not purchased MAX for 7K. It would have to be one outstanding property to equal the 2 HGVC I own.