HGV CHARGING $25 a day resort Fee

[pedro47]

How much can a resort or the developer make in a year by charging a $25.00 per day resort fee?

 

[Talent312]

How much can a resort or the developer make in a year by charging a $25.00 per day resort fee?

A bushel and a peck.
.

 

[pedro47]

Let's do some simple math for 52 weeks in resort fees. Resort A is charging $25.00 per day for Resort Fees @ seven (7) nights. That is $175.00 Dollars in Resort Fees for one week.

This daily resort fee does not apply to HGVC Members.

Now multiply $175.00 X 52 weeks = $9,1000 in Resort Fees.
That is a very nice profit.

Again, this daily resort fee does not apply to HGVC Members!

This was only an example what this new resort fee can generate for HGVC.

 

[Talent312]

The reason I said, "A bushel and a peck," is that simple math won't get you there.
The fees do not apply to HGVC members who'll use the unit much of those 52 weeks.
You need to know the average use of a unit for RCI + hotel stays, and...
you need to know the # of units subject to that factor.


.

 

[tschwa2]

Not everywhere charges it, but lets say all of Orlando and Hawaii does. Judging by the bulk deposits in RCI, my guess would be at least 6000 unit/week per year through RCI in those 2 locations- multiple resorts. That would be $1, 050,000 per year.

 

[Iggyearl]

Where does the money go? One year ago, HGV stock was $29/share. Today it closed at $47.00. There is another thread on TUG regarding a major investor reaping a 88% gain on HGV stock. Seems like the shareholders are the real winners.

Additionally, Marriott Vacation Club (VAC) was spun off in 2010 at a price of $25/share. Today's closing price is $143.93. Not bad. I assume that the management of these companies will see what they can do to push the envelope. The "mutual benefit" theme of timeshare seems to be deserted by the major corporations. It's all about profits. Look at the action in WYN or ILG in the last year. Up big. Where does it end?

 

[Tamaradarann]

When it is a fee initiated by the developer/resort manager (vs the HAO) which I believe these are, it doesn't lower the MF's anymore so then when the developer raises the transaction fees or a guest fee. It isn't really so much a resort fee but a fee for the developer to manage the resort/amenities at the resort.

The issue that should be addressed to everyone satisfaction is:
Owners pay the maintenance on the units they own. If they go back to the unit they own they get the resort amenities free of charge. If their resort does NOT charge for resort amenities then exchangers who come to their resort get the resort amenities free of charge.

If that owner uses his week or points to stay at the resort that the exchanger that came to his resort owns which charges exchangers for resort amenities then he has to pay for the resort amenities. That is NOT appropriate or fair.

By the way an argument that you may get from RCI or certain resort management people is that some resorts have more or less amenities. However, if everyone who stays at that resort has the same amenities(owners and non-owners) then that is all that the resort has and RCI and the resort indicates the amenities and you decide if you want to buy there and stay there or not. You don't get a fee for exchanging when owners get a pass and don't have to pay the maintenance fee for that amenity.

 

[jestme]

The thing HGVC is missing with the fees is that the reason they have Gold status at RCI with their resorts is because of the quality of the resort, which includes the amenities. To ask people to exchange into the resort, as a gold resort, then add a resort fee on top of that is double dipping.

 

[CalGalTraveler]

Junk fees are a race to the bottom; HGVC was unique in that they were one of the few on RCI that did not charge but now they are compelled to play "catch up" while increasing profitability; should eliminate for all.

 

[littlestar]

The younger generation will think timeshare trading is dumb and just use Airbnb. Makes you wonder if the government needs to get involved or lawyers to find out why these fees? Especially since owners already cover the costs of maintenance and Internet. Smells stinky to me. Corporate greed will probably kill the timeshare trading concept - might as well rent or own where you want to go and the government may have to step in to keep corporate greed in check. Timeshares are different than hotels- at least they are supposed to be.

 

[klpca]

The younger generation will think timeshare trading is dumb and just use Airbnb. Makes you wonder if the government needs to get involved or lawyers to find out why these fees? Especially since owners already cover the costs of maintenance and Internet. Smells stinky to me. Corporate greed will probably kill the timeshare trading concept - might as well rent or own where you want to go and the government may have to step in to keep corporate greed in check. Timeshares are different than hotels- at least they are supposed to be.

I agree with you that the competition for timeshares is going to be AirBnB, and they don't have resort fees or (as Disney is now charging) parking fees. Now to be fair, AirBnB's don't usually have resort amenities either, but they do have kitchens and living spaces, so that makes them the competition.

I own at two resorts that have always had resort fees and although everyone complains about them, the resorts are still in high demand. And I suppose that is why they charge the fees - because they can. In my case they are managed by Grand Pacific and I think the fees are a line item on the HOA financials ( I could be wrong about that and I can't find my records at the moment) but to have the developer pocket the money is just wrong on so many levels.

I suspect that people will be angry about the fees, and will complain about the fees, but will pay the fees to stay at these properties. If not, then there should be more open season availability for owners?

 

[SmithOp]

AirBnB is not without fees either, the owners charge cleaning fees and ABB charges a service fee ranging from 6-12% of what the owner receives.

I think its just the way the whole travel industry is operating now, tacking on fees for everything.

 

[CalGalTraveler]

+1

We rented an AirBnB that was listed at $149/night but when housekeeping and management fees were attached it was about $260/night for a 3 night weekend stay - effectively a $100 'resort fee' per night on top of the rental price. AirBnb seems to be best for longer term rentals where these costs can be spread across multiple days - I agree with the premise stated earlier that it is a competitor. Note that timeshare owners can also post their timeshares for rent on AirBnB too. So if you cannot beat 'em join them.

Hotels are better for short stays.

It is only a matter a time before AirBnB owners charge extra for "amenity fees" aka Internet, TV, Washer/Dryer, bbq, deck shoveling, plow, view...you get the idea.

 

[bogey21]

This is another reason to own where you want to stay. No fees if you don’t trade.

This is exactly what I did a number of years ago when I was traveling a lot. I bought 6 Weeks at 6 Resorts in 6 different cities and HOA Controlled Independent Resorts with low MFs. I think I paid between $6 and $8 thousand for the lot. Every now and then (really rarely) I didn't use one of them but overall my cost was very reasonable.

George

 

[Cyberc]

Sorry but I don’t understand what all the fuss is about?

In this group we are all owners and owners don’t pay the resort fee, well you do if you book hgvc through RCI.

I understand why non owners complain but that’s just another reason to become owners.

I honestly don’t care what hgvc charge or don’t charge through RCI I rarely use my hgvc points through RCI.

 

[bnoble]

Fees don't matter. They really don't.

The only thing that does matter is (a) what does it cost for me to stay there, all-in and (b) is that worth it? Just add this to the other things you pay--exchange fee, the cost of what you are exchanging, etc. and see what the total is. That gives you (a).

For Hawaii, the answer to (b) is quite likely yes, at least for me. In Orlando, it's a much harder sell IMO. There are too many lovely resorts, and frankly the one I've been to (Sea World) was perfectly fine, but nothing special for that market. I'm willing to pay DVCs nuisance fees, because the overall experience is qualitatively different. Orlando HGVC? Not so much.

 

[CalGalTraveler]

Based on this discussion, I am going to charge $25 extra per day at my AirBnB vacation rental for Internet access, two water bottles, and a telephone number for access to the free shuttle to the local ski resort. Plus another $25 per day to park two cars on the driveway because this causes wear and tear on the asphalt.

LoL, I am leaving money on the table!!!!

 

[Talent312]

The next time my DW asks me to order a pizza, I'm gonna charge her a fee.

.

 

[CalGalTraveler]

The next time my DW asks me to order a pizza, I'm gonna charge her a fee.

.

LOL, You could charge a phone fee too!

 

[jestme]

Sorry but I don’t understand what all the fuss is about?

In this group we are all owners and owners don’t pay the resort fee, well you do if you book hgvc through RCI.

I understand why non owners complain but that’s just another reason to become owners.

I honestly don’t care what hgvc charge or don’t charge through RCI I rarely use my hgvc points through RCI.

Because this could be just step one. Charge the fee to RCI exchanges first, then charge internal HGVC exchanges. It's a slippery slope.

 

[pedro47]

Is this new resort fee in place to collect fees from owners that do not pay their m/fees?

Is this new fee in place to reduce bad debts from owners?

 

[Blues]

Fees don't matter. They really don't.

The only thing that does matter is (a) what does it cost for me to stay there, all-in and (b) is that worth it? Just add this to the other things you pay--exchange fee, the cost of what you are exchanging, etc. and see what the total is. That gives you (a).

Thank you. You just explained why fees matter. A lot. If you're trying to rent your unit, there's a total cost that the market will bear. If HGVC is taking a $175/week cut out of that, that's $175 less that you'll be able to get from your rental.

 

[hurnik]

Sorry but I don’t understand what all the fuss is about?

In this group we are all owners and owners don’t pay the resort fee, well you do if you book hgvc through RCI.

I understand why non owners complain but that’s just another reason to become owners.

I honestly don’t care what hgvc charge or don’t charge through RCI I rarely use my hgvc points through RCI.

I look at it another way (which could be factually wrong):

HGVC has already collected my MF which is already being used to pay for Internet, phone lines, DVD NOW, etc.
HGVC is now collecting "extra" for these and is not (or maybe they are--don't know 100%) reducing my MF accordingly (which would probably be like $0.18--haha).

I wonder if HGVC guests (NOT exchangers) get the 2 free water bottles and coffee or whatever it was. I certainly didn't get any of that in October 2017 when staying at Tuscany Village/I-Drive in Orlando last year.

 

[CalGalTraveler]

Because this could be just step one. Charge the fee to RCI exchanges first, then charge internal HGVC exchanges. It's a slippery slope.

I certainly hope this is not being considered as this would have a devastating impact on HGVC program because low point/low season and less popular properties would go bankrupt as people who trade internally see no economic value in keeping and dump these holdings. This is a key reason why many weeks programs in other systems have transitioned to points portfolios.

One of the great differentiation points of HGVC from other systems is the ability to trade frictionlessly throughout the system. Remove that by adding internal fees and you ruin the economics of the program. It is a slippery slope.

 

[tschwa2]

Thank you. You just explained why fees matter. A lot. If you're trying to rent your unit, there's a total cost that the market will bear. If HGVC is taking a $175/week cut out of that, that's $175 less that you'll be able to get from your rental.

You can't rent an RCI exchange and if it is reserved with HGVC points the fee would not apply.