HGVC Properties in DEX

[escanoe]

Would that discourage owners from enrolling in HGV Max? While it would be great for us, would it lose money for them?

Depends on what HGV Max is. HGV trading in DEX would likely be only weeks (at least at the start).

It might hinder sales of HGV Max … which we don’t know how much it costs or how it will operate.

While it may cost them money on HGV Max sales, to the extent informed customers buy HGV Max. It will also bring in more revenue. They can pocket the full exchange fee versus it going to RCI. It also would be a gradual move away from steering revenue to their competitor Wyndham … which owns RCI.

Why would HGV be investing in an Exchange that one side of the business uses where the other side is 100% reliant on RCI.

If it takes off as a good workable, functional exchange (even just for HGV properties) it would incentivize me to own more HGV and less of my RCI trader inventory. It would certainly give them more revenue from me.

Does DRI operating DEX cost them developer sales for their trusts that where one would otherwise have to make a developer purchase to trade between trusts? They appear to have overcome that issue/challenge.

 

[dayooper]

Depends on what HGV Max is. HGV trading in DEX would likely be only weeks (at least at the start).

It might hinder sales of HGV Max … which we don’t know how much it costs or how it will operate.

While it may cost them money on HGV Max sales, to the extent informed customers buy HGV Max. It will also bring in more revenue. They can pocket the full exchange fee versus it going to RCI. It also would be a gradual move away from steering revenue to their competitor Wyndham … which owns RCI.

Why would HGV be investing in an Exchange that one side of the business uses where the other side is 100% reliant on RCI.

If it takes off as a good workable, functional exchange (even just for HGV properties) it would incentivize me to own more HGV and less of my RCI trader inventory. It would certainly give them more revenue from me.

Does DRI operating DEX cost them developer sales for their trusts that where one would otherwise have to make a developer purchase to trade between trusts? They appear to have overcome that issue/challenge.

Here’s the issue, if HGV were to pull out of RCI (I would be very happy if they did) and fully go over to DEX, how would RCI deal with that? Would they still allow DEX to keep their deal with them? If it were just HGVC exchanging with HVC/DRI, why would I join HGV Max? I see your point about collecting both ends of the fees, but Wyndham/RCI has skin in this game too.

Selling new owners on the great possibilities of the thousands of locations is a big talking point. Eliminating that from consideration might cost them sales. If HGV no longer has access to RCI, that’s a loss to sales. They are in the game of selling timeshares and new victims. . . Er, customers can be found with RCI exchangers. Take that away and you are losing potential sales.

I love the plan you have, I just worry that what’s great for us is the exact opposite of whatis best for them.

 

[escanoe]

Here’s the issue, if HGV were to pull out of RCI (I would be very happy if they did) and fully go over to DEX, how would RCI deal with that? Would they still allow DEX to keep their deal with them? If it were just HGVC exchanging with HVC/DRI, why would I join HGV Max? I see your point about collecting both ends of the fees, but Wyndham/RCI has skin in this game too.

Alas, it is possible for HGVC to go to DEX and not pull out of RCI totally. That is what DRI did. They cut RCI out of gettin exchange fees on their internal DRI exchanges on DEX, but still use RCI on the back end for outside exchanges. They have also negotiated or bargained down the online exchange fee DRI members pay for weekly exchanges to $149 (versus the $259 us HGVC chumps are paying if we use the option). Seems to me if they negotiate with the larger combined system and threaten to pull HGVC out of RCI …. they should be able to drive a deal at least that good for all exchangers in the newly merged company. That would be a huge benefit of discounted exchanges AND keep all the thousands of RCI properties for sales floor drivel.

I want them to completely pull out of RCI, but don’t think they will right away. However, it makes no sense for them to keep DEX and not leverage it for the whole corporate entity. I suspect sales of HGV Max will be the priority. But I hope and expect further developments with DEX will be in the works a bit further down the road.

 

[NiteMaire]

Here is the thing, it is possible for HGVC to go to DEX and not pull out of RCI totally. That is what DRI did. They cut RCI out of gettin exchange fees on their internal DRI exchanges on DEX, but still use RCI on the back end. They have also negotiated or bargained down the exchange fee DRI members pay for weekly exchanges to something like $140. <snip>
It makes no sense for them to keep DEX and not leverage it for the whole entity.

IIRC, someone posted something similar when the acquisition was announced. MVC owns II, Wyndham owns RCI, and now HGVC owns DeX. It would make sense for HGVC to use it for internal trades while maintaining the backend. I would really like them to keep DestinationXchange Affiliates/Partners (I presume this is the RCI backend referenced). I recently traded into a Wyndham through DeX. I've had 2 conversations with 2 separate DRI CSRs. They both said access to DRI resorts won't change; we'll see if that holds true. I asked the 2nd CSR if access to DeX partners/affiliates would change. They said some may go away, and others may be added...but they didn't really know. My take is that as long as DeX access doesn't drastically change for DRI resorts, then I'll be happy considering I purchased to exchange into other DRI resorts through DeX. It's an added bonus that I get access to some HGVC availability.

 

[escanoe]

Here’s the issue, if HGV were to pull out of RCI (I would be very happy if they did) and fully go over to DEX, how would RCI deal with that? Would they still allow DEX to keep their deal with them? If it were just HGVC exchanging with HVC/DRI, why would I join HGV Max? I see your point about collecting both ends of the fees, but Wyndham/RCI has skin in this game too.

Seems to me DRI/HGVC combined will have more leverage than DRI did when it negotiated the current DEX deal with RCI. DVC pulling out of RCI was weakened them. If HGVC/DRI we’re to walk, that would be near devastating. Being on the back end of the DEX portal is how they would get HGVC and DRI inventory.

 

[NiteMaire]

Seems to me DRI/HGVC combined will have more leverage than DRI did when it negotiated the current DEX deal with RCI. DVC pulling out of RCI was weakened them. If HGVC/DRI we’re to walk, that would be near devastating.

True, especially considering your point about DVC leaving. If HGVC left, RCI would have only Wyndham (with WorldMark) as a major/well known developer. I'm realize a couple others may be there, but they're not in the same category as MVC (with Vistana), DVC, and HGVC (with DRI). As you know, I'm a fan of Vacation Village Resorts, but they don't have the name recognition as the others I've listed. Besides, I can trade my VVR (Colonies) unit in II. If I could add it to DeX, I'd do it in a heartbeat...well, I could, but I'd have to purchase points which I refuse to do.