Hilton Grand Vacations strikes deal to acquire Diamond Resorts

[Magus]

I guarantee you that DRI and HGVC management all view their customers with the same question "How much money can I get out of them?"

True for every corporation of any size, but people that make it to positions of power in general - Gov, Corps, Education, etc - all also think they are better than you and that the average person is extremely stupid.

 

[ccwu]

There is a annual membership option that bHC owners have that is a higher priced annual fee, but it includes all reservations fees for free. I would gladly pay for this level if they would offer it. Maybe they will to cover the concept of what DRI had.

HGV does not charge fee for home resort reservation for your deeded owners. It is all depends on the unit on the contract. I own Resident Club bHC of NYC with 16,800 points and the MF is about $2914. (0.173 per point). There is just one HGV club fee. (NYC HC charges a separate club fee). Cheaper than DRI’s 0.19 per point. And my point to convert to Hilton honor point is 50/1. DRI charges much higher points for unit. Such as Kaanapali beach resort one bedroom from 6500 to 15,000 for one bedroom (depend on season and view). Two bedroom is normally 22,000 points (remember 0.19 per point). HGV charges 2500 to 6200 per one bedroom two bedroom is from 3500 to 14,400 nothing like DRI charges. As HGV owner, you can choose to get peak season premier unit with higher points paying the same MF as of standard view unit. Owner has to choice to pay higher front cost to save in the long run. Dri changes the number of point for reservation. Such as st maarten property. Flamingo beach ocean front studio was 4500 points per week in the past. After the fixed the resort after the disaster storm, now they are charging 7000 to 11,000 per studio unit. Once you buy into the trust, your points is variable. If they oversold, they just raise points for reservation. That is why so many unhappy owners, they bought 4500 for s studio week, now they could not get a week with the points. Whatever DRI changed the points rate is not right. We are platinum member for DRI and EP for HGV. We stopped buying DRI a long time ago. We are just bought premier 2 BR at platinum season, 14,400 GW at HHV in a owners update two weeks ago. We love HGV. On HGV website said that in the future DRI owner wants to exchange into HGV has to go thru DRI and RCI. So does HGV owner needs to go thru RCI for DRI resorts. Both DRI and HGV promised they are not keeping all the same benefit for their loyal owners. I believe HGV is going to protect our benefits. I guess Dri just has another sales pitch to sell product that you could use as a bridge to exchange into using HGV properties.

By the way, we choose to be elite premier so we don’t pay any fees for transaction in HGV. We choose to be DRI platinum in the early DRI when there were many wonderful perks for being platinum member and sale rep were more decent and honest. DRI resale owners were treated differently. Not any perk and points are more restricted usage. Not sure how they trade in II. They can only use their home resorts. HGV treat resale points pretty much the same. I bought resale points and it was grouped in my membership mingled with my points bought directly from Hilton and treated the same at the owner’s elite level. I did trying to help a desperate DRI member and got his points to relieve him from MF. DRI put the 8500 resale point in a separate restricted account and i had to pay a separate membership fee. I paid $250 to DRI to give it back for the restriction.


Sent from my iPhone using Tapatalk

 

[Jason245]

I actually very much disagree with this statement. I think there is a huge disconnect between *resale* value and the real value of timeshares, not retail and real value. Timeshares are complicated and no one (corporate/gov) is pushing re-sales nor educating potential buyers of resales and the various programs. When I explain how HGV works, most people can't believe how cheap some of the resales are....I've had 2 friends buy in the last two months. If every timeshare program was even half as easy to use as HGV is, I think resale would be 70% of retail.

That is driven by the lack of a true free market.. that is why I say that the true value is the experience at the resort and the value for it. I agree I got my hgvc for nothing and that was a true bargain and imho it was worth more.

Sent from my SM-N950U using Tapatalk

 

[escanoe]

Bit of wishful thinking:

Marriott owns II
Wyndham owns RCI

Diamond was kind of setting up its own exchange as I understand it (for things under their umbrella). I would like for HGVC to eventually launch an exchange not just limited to things under the HVCV/HGV umbrella and give II and RCI a bit more competition.

It seems in RCI that HGVC was a significant part of the upscale draw to the exchange. Add to that the strength of Diamond .... and HGVC will have some leverage to excerpt if they want.

 

[nuwermj]

Diamond was kind of setting up its own exchange as I understand it (for things under their umbrella). I would like for HGVC to eventually launch an exchange not just limited to things under the HVCV/HGV umbrella and give II and RCI a bit more competition.

Destination Exchange is Diamond's product. It is not limited to locations under the Diamond umbrella. Here is the membership guide with all the locations and other details.

https://cmsprod.diamondresorts.com/sites/default/files/destination-xchange-member-guide_2.pdf

 

[escanoe]

I will bet all of HGVC transitions to this over time. If they now own a competitor to RCI (and RCI is owned by the same company as Club Wyndham) it only makes sense to move over when they can.

I like my RCI points account (have one outside of HGVC) and I for one think the whole timeshare exchange business would improve if they had a third major competitor outside of II or RCI.

Destination Exchange is Diamond's product. It is not limited to locations under the Diamond umbrella. Here is the membership guide with all the locations and other details.

https://cmsprod.diamondresorts.com/sites/default/files/destination-xchange-member-guide_2.pdf

 

[pedro47]

Sounds liked their will be now three major exchanges companies RCI, II and HGVC.

 

[T_R_Oglodyte]

I will bet all of HGVC transitions to this over time. If they now own a competitor to RCI (and RCI is owned by the same company as Club Wyndham) it only makes sense to move over when they can.

I like my RCI points account (have one outside of HGVC) and I for one think the whole timeshare exchange business would improve if they had a third major competitor outside of II or RCI.

From the perspective of the timeshare resort operator .....

You see your owners who want to stay at other resorts paying membership fees to exchange companies and then paying the exchange fee as well. And if you're a smart business person, you start to think about how you can capture that money instead of the exchange company.

The answer is to build up a resort network that covers most of the places your members want to go to. Then you set up a membership program for your resort network, where the members pay an annual membership fee, and they then meet most of their exchanging wishes via your resort network. You still keep the exchange company on the side, because you will have owners who will want to travel outside your network. And going outside the network they will have to pay a fee to the exchange company.

But now you're capturing most of that revenue that used to go to the exchange company. And because it's an internal reservations network, it's easier for your owners to make arrangements. They can book directly out of available inventory, instead of waiting and hoping for someone to deposit a suitable week with the exchange company.

 

[Eric B]

... You still keep the exchange company on the side, because you will have owners who will want to travel outside your network. And going outside the network they will have to pay a fee to the exchange company.
.....

It's not just for your current owners who want to travel outside your network but also for a source of potential future owners exchanging in and seeing the benefits of it.

 

[CalGalTraveler]

This only works if the exchange rate is low. If they charge high points like we have seen with HGVCs recent additions in Cabo, and newer properties in the mini-system, then there is not much value to an exchange. The lines between an affiliate in a mini-system, and an exchange are blurring.

The larger question is whether one can deposit a week into another system. That will generate competition. IMHO, not sure the majors have that appetite. What is nice about RCI is that they want upscale HGVC in their system so the exchange rate is favorable.

 

[nuwermj]

It's not just for your current owners who want to travel outside your network but also for a source of potential future owners exchanging in and seeing the benefits of it.

I wonder whether this is an important marketing channel these days. Although in the past exchange guest were an important market (as they were already known buyers), today the branded companies seem to rely on the database of hotel customers. Marriott made a big deal about using the Hyatt database to sell the Welk product in their recent acquisition announcement. And when Diamond was a public company, investors were often critical of its lack of this marketing channel.

 

[CalGalTraveler]

Destination Exchange is Diamond's product. It is not limited to locations under the Diamond umbrella. Here is the membership guide with all the locations and other details.

https://cmsprod.diamondresorts.com/sites/default/files/destination-xchange-member-guide_2.pdf

Is there a list of the resorts in this network?

 

[Tamaradarann]

I liked the part where he said HCV would be an "upscale brand". Thue HGVC is "upper upscale".

Yes, the impression that I got from Mark Wang is that they will NOT be intergrating Diamond Resorts into HGVC. They will have a slightly lower brand name for Diamond Resorts HVC(Hilton Vacation Club). Therefore, the exchange privileges would be different into HGVC resorts if you own HVC. I am not sure what that would be but some or all of these may be possible: (Since I don't know the Diamond Resort Reservation System I will just address the HGVC Resort reservation system)

- Like with RCI exchanges now, when an HGVC member wants to reserve a week at an HGV resort, an HGVC Resort week would be deposited into the HVC reservation system
- Instead of the 9 month club reservation window that HGVC members have HVC members might have a 3 or 6 month club reservation window.
- HGVC might make available for exchange some excessive inventory to HVC members where they know it won't be reserved by HGVC members through past experience

 

[dioxide45]

Destination Exchange is Diamond's product. It is not limited to locations under the Diamond umbrella. Here is the membership guide with all the locations and other details.

https://cmsprod.diamondresorts.com/sites/default/files/destination-xchange-member-guide_2.pdf

Looking at the numbers beside their maps, they show access to some 4,700+ resorts. There is only one place they can get that. RCI. Do we know if their exchange is at least somewhat facilitated through RCI?

 

[escanoe]

It's not just for your current owners who want to travel outside your network but also for a source of potential future owners exchanging in and seeing the benefits of it.

This is the thing I don’t get about Diamond’s Destination Exchange, It says at this time you must have a Diamond managed resort to enroll? So it does not seem like as much of a marketing opportunity as it could be.

Yet, the destinations you can exchange into looks a fair amount like RCI. I see Wyndham properties and Vacation Village. How do they truly “exchange” for these if it is just Diamond customers/resorts doing all the trading? [Maybe they are exchanging for you through another exchange company?]

@CalGalTraveler, their exchange rates look quite competitive versus RCI. Less so for short stay exchanges compared to RCI Points.

https://cmsprod.diamondresorts.com/sites/default/files/destination-xchange-member-guide_2.pdf

I am sure Diamond (now HGVC) is early in building this out and will have grander plans.

I definitely think people exchanging in is a big marketing thing. Club Wyndham really wants to market to me every time I stay there. I assume they know something abt me from their owning RCI. They probably view having HGVC in their network as a big marketing opportunity for them and a selling point to attract other resorts to affiliate with RCI.

I have to think HGVC also sees people exchanging in as a marketing opportunity. If not, why the 1 in three rule? Fresh meat for sales.

I don’t doubt the big boys have a much better marketing program that the smaller ones and that smaller ones are likely more dependent on exchangers coming in.

 

[escanoe]

See the post I just made. This answers my question about how they get inventory.

Looking at the numbers beside their maps, they show access to some 4,700+ resorts. There is only one place they can get that. RCI. Do we know if their exchange is at least somewhat facilitated through RCI?

 

[CalGalTraveler]

Yet, the destinations you can exchange into looks a fair amount like RCI. I see Wyndham properties and Vacation Village. How do they truly “exchange” for these if it is just Diamond customers/resorts doing all the trading? [Maybe they are exchanging for you through another exchange company?]

@CalGalTraveler, their exchange rates look quite competitive versus RCI. Less so for short stay exchanges compared to RCI Points.

https://cmsprod.diamondresorts.com/sites/default/files/destination-xchange-member-guide_2.pdf

Where are you finding the list of resorts? I don't see it in the guide.

Aren't those Diamond points? How does that translate to HGVC points?

 

[escanoe]

Do we know if their exchange is at least somewhat facilitated through RCI?

I am going to bet that they simply built their own portal to RCI versus them using the portal RCI offers to companies like HGVC. They also manage the fees/finances/negotiations rather than the money going directly to RCI.

But I wonder if their system may truly serve as an exchange for the Diamond properties. Be interesting if someone in their system and RCI could tell us how the Diamond units available on Diamond’s exchange compared to the same unit available on RCI.

 

[escanoe]

Where are you finding the list of resorts? I don't see it in the guide.

Aren't those Diamond points? How does that translate to HGVC points?

Search their resorts here.

Destination Xchange

I have no way of knowing how to compare trading power. I was only comparing exchange fees when saying it was competitive (lower especially for weeks) than RCI.

 

[youppi]

I am going to bet that they simply built their own portal to RCI versus them using the portal RCI offers to companies like HGVC. They also manage the fees/finances/negotiations rather than the money going directly to RCI.

But I wonder if their system may truly serve as an exchange for the Diamond properties. Be interesting if someone in their system and RCI could tell us how the Diamond units available on Diamond’s exchange compared to the same unit available on RCI.

I posted this a year ago https://tugbbs.com/forums/threads/d...ii-by-the-end-of-the-year.302601/post-2406620

 

[nuwermj]

Looking at the numbers beside their maps, they show access to some 4,700+ resorts. There is only one place they can get that. RCI. Do we know if their exchange is at least somewhat facilitated through RCI?

Diamond has long maintained developer to developer relationships whereby they agree to some kind of inventory exchange. Before Diamond acquired Embarc, that club and HGVC maintained such a relationship. These relationships are one source of inventory.

Second, Diamond offers a program to buyers who own none Diamond timeshares. For example say I own a Welk timeshare. When I buy Diamond points, I can also enter the "Club Combination" program whereby I deposit my Welk week and get Diamond points. This Club Combo inventory is also added to Destination Exchange.

 

[ccwu]

Looking at the numbers beside their maps, they show access to some 4,700+ resorts. There is only one place they can get that. RCI. Do we know if their exchange is at least somewhat facilitated through RCI?

What DRI offers is that Dri member could buy into a program for members to deposit a non DRI resort week to exchange for DRI points. In return, they put the week in destination exchange for DRI member to exchange points to use the deposited non DRI week. Say, St someone deposit bluegreen week and awarded 7000 DRI points, the week would be in destination exchange for DRI member to use by using 7000 Dri point.


Sent from my iPhone using Tapatalk

 

[dioxide45]

What DRI offers is that Dri member could buy into a program for members to deposit a non DRI resort week to exchange for DRI points. In return, they put the week in destination exchange for DRI member to exchange points to use the deposited non DRI week. Say, St someone deposit bluegreen week and awarded 7000 DRI points, the week would be in destination exchange for DRI member to use by using 7000 Dri point.


Sent from my iPhone using Tapatalk

So in practice, for the most part, members of the new exchange can really only exchange into other DRI resorts or affiliates? Kind of like RTX.

 

[1Kflyerguy]

Mark Wang said, branding with be Hilton Club Vacations (rebranded Diamond), and Hilton Grand Club Vacations (existing HGVC plus select DRI locations). If anyone was looking for naming info.

When he first said that, my initial thought was that must just be the working name, but then he repeated the new name multiple times. Personally the two brand names are so similar that people will mix them up and be confused.

But i am certainly no branding expert....

 

[escanoe]

Personally the two brand names are so similar that people will mix them up and be confused.

What is new? Hilton Club Vs by Hilton Club Vs Hilton Grand Vacation Club Vs Hilton Vacation Club Vs. Hilton Hotels

They want you to have an advanced degree in Hilton to know the difference.