I worked for one of the major xchange companies...

[Dean]

Exclusive contracts in this context only dictate the exchange company that is affiliated with the developer. Individual resort owners cannot be bound by an agreement between third parties.

Hi Craig. I agree, however, a resort cannot be required to actively work with that independent exchange company (such as actively confirming the weeks) and as such, it would be treated as any other private exchange in such cases. OK unless things don't go right.

There certainly are many variables to establishing a niche of an exchange system. For every person you aim for, there are man others you will be shooting at. If it's first come first served, those with the better weeks won't be interested. If it's a reasonable points based or a transparent trade power system, many off season or lower owners will be offended. I'd think the best options would be to strike up a partnership with one of the current independent's. Another option would be a partnership with one or several of the larger timeshare sales companies for a somewhat captive inventory. Or work out a deal with on of the current systems that already have an exchange system in place such as FF, Bluegreen, DVC, WorldMark, etc. Or someone who might desire one like ?Marriott.

The problem with dealing with TUG members and the like are that they generally know how to maximize the current systems. Usually a smaller system is harder to put yourself ahead than a larger one for those willing to learn the ropes. I would be against a TUG sponsored system because it would likely eliminate much of the objectivity that this site tries to offer.

Interesting subject, I wish you the best. Healthy competition will be good for all of us.

 

[Change the X-change]

WOW!!! I opened up a can of worms…in this case this would be a positive!

To answer some of the questions and to address some of the great ideas that have been posted her I will say the following:

It would be 100% web based, it would be totally transparent, you would know the supply AND demand of your week before you even deposit it. As far as space goes, I think I can pull something off (a few strings) to get some of the more desirable locations in first for straight exchanges. The exchanges themselves would not be based on quality, I understand the reasoning behind the big companies not wanting you to trade down more that 2 slots or trade up more that 2 slots (the latter would not apply in flex time) however, I say if you know up front that the place you are going to is not “up to par” or is off season etc. etc. you can’t complain now can you. The trick is to get you where you want to go, when you want to go there. The last thing I want to do is complicate myself or you with trade values. Your week will be “qualified” for lack of a better term based on season and quality itself however, you would not be restricted to trade for a like week, you can trade to whatever is there. Some will say that would result in a high number of inventory for undesirable locations…maybe…that space would be put up for low priced getaways and or maybe on e-bay or any other thing I can think of to make sure the space will not waste.

The website would be set up so that you can check availability anywhere anytime, you would not be required to deposit your week to check beyond your week date.

Bonus weeks would not be restricted to flex time and my goal would be that you don’t have to go to Orlando once a year just because you don’t want to lose a bonus week.

About the monthly membership, that would just be an option, aren’t you tired of extending your membership for a year and then hearing “I have Orlando, in Feb.” You could pay a year in advance if you want and there would be only one level of membership not regular a preferred. Everyone would have a platinum membership with all the perks that come with it.

I have many other good Ideas; the good thing about them is that they are viable.

I am taking many of the ideas and opinions to heart and would love for another person to get involved with me on this venture if they would like, I am not selfish in that way, as long as it is understood that my main goal is to make the Customer happy…I’m not just saying that, of course I want to make money but that will come by itself when the customer is happy.

By the way for those of you who do not know me (which is most of you) My name is Michael Vasquez and I worked several years for II as an Exchange floor Supervisor, My wife also worked there for over a decade as an Exchange floor Manager. We know the business and want to make it better.

 

[Liz Wolf-Spada]

If you expect to have left over weeks for bonus etc., where are you planning on getting those, while still counting on a yearly one for one exchange for everyone?
Thanks,
Liz

 

[timeos2]

Some will say that would result in a high number of inventory for undesirable locations…maybe…that space would be put up for low priced getaways and or maybe on e-bay or any other thing I can think of to make sure the space will not waste.

Yes. I would say that. And how can you limit the availability only to timeshare owners if you plan to auction excess space on eBay or wherever? It already sounds like you know you will have plenty of unwanted time to move which is the problem with every weeks system out there already. Whats so new?

 

[Wonka]

Craig -

It's good to see you're visiting. I agree a new venture partnering with TUG might be the ticket to success. But, if TUG is truly non-profit oriented and the new venture is profit-motivated, how would that work? I'd also agree having your involvement would be a "jump start" because of the credibility you have her on TUG. Get something going...you can have my 4 weeks. Most of the time I deposit them and they go unused anyway.

 

[CraigU]

Craig -

It's good to see you're visiting. I agree a new venture partnering with TUG might be the ticket to success. But, if TUG is truly non-profit oriented and the new venture is profit-motivated, how would that work? I'd also agree having your involvement would be a "jump start" because of the credibility you have her on TUG. Get something going...you can have my 4 weeks. Most of the time I deposit them and they go unused anyway.

Thank you for your vote of confidence however I have no association with the person who posted this thread.

 

[Change the X-change]

Thank you for your vote of confidence however I have no association with the person who posted this thread.

This is correct...let's clarify this so there is no confusion.

The only reason I mentioned Craig was to drive the point home that II started very small as I would.

There is no association beyond being former II employees.

 

[boyblue]

To get something like this off the ground it's going to take more than $50.00 dollar trades. I can see $50.00 in 3 to 5 years but initially it's going to have to be almost free. Your #1 asset will be those 3, 4 or 5 year commitments. Year to year deposits are ok but in order to build something special you should attempt multiyear arrangements.

THE BIG QUESTION:

What would it take for a savvy TS owner to make a 3, 4 or 5 year commitment? Also what would it take for the uninitiated (remember they are the majority) to do the same?

How about any or all of these:

• First 30 days – free or reduced lifetime membership with 2, 5 year or 1, 10 year deposit. This could be done for resorts rated above a certain level or it could be nondiscriminatory.

• Annual membership done per unit. Reduce rate for multiple unit owners. ($30.00 for 1 unit $10.00 for each additional).

• The first 25,000 deposits free (4 or 5 year minimum commitment). Again this could be for resorts rated above a certain level.

• Single year deposit ok if already a member for fee of $40.00. If not a member $50.00 or $60.00. In either case allow confirmation before deposit.

• Trade ups – one level no charge, two levels - 2 in for 1 out

• Trade downs – one level nothing, two levels - 2 or 3 out for 1 in

• Owner of a week will be notified immediately when his week goes off market. Up until that time he is free to rent the week. In the case of a rental, a rental certificate would be issued by the exchange company – the fee $50.00

• The process for reserving a unit – You reserve a unit it is then classified as reserved for 12 hours (everyone will be able to see it). The unit is then confirmed unless someone with a stronger unit wants it. The person with the strongest deposit gets the unit. If there is a tie, the earliest request is the tie breaker

• Units with a grade of E or 1 will go to the auction block at the 60 day mark. The 60 day auction will be members only and have a starting bid of $100.00. The auctions will last 7 days

• If a unit is not taken by 60 days before check in it is downgraded 1 notch therefore units initially rated 2 will go to auction at the 60 day mark. 3’s will then be available to 2’s, 5’s to 4’s etc.

• At 45 days all unclaimed inventory will be reduced another notch. The 45 day auction will be available to everyone. The starting bid - $70.00. Non members will have to purchase a guest certificate along with their winning bid. The auctions will last 3 days.

• At 30 days all inventory will be auctioned off. This will also be a 3 day auction.

• If a unit has to be downgraded 1 year it will not change the deposit rating. If it has to be downgraded a second year the deposit will lose a half rating (3 will become a 2.5). It will remain at that level unless it has 2 consecutive years of reduction. It will then lose another half rating and so on.

• Units that are taken very quickly (averaged over 3 years) will be upgraded.




Please forgive my ramblings but I was having so much fun!

ANOTHER CRAZY IDEA:

How about a new TS rating system? The 4 components that make up the rating would be the resort itself, the resort amenities, the location, and the time of year. I would suggest a rating in each category from 0 up to 1.25 with special 1.5 grading for excellence. Just as a 4.8 would be considered an A-, a score above 5 would be considered an A+

A = 5
B = 4
C = 3
D = 2
E = 1

Just brainstorming.

 

[Change the X-change]

Yes. I would say that. And how can you limit the availability only to timeshare owners if you plan to auction excess space on eBay or wherever? It already sounds like you know you will have plenty of unwanted time to move which is the problem with every weeks system out there already. Whats so new?

E-bay was only a thought, if I were to take that route I would do quick 3 day auctions beginning after the week already started so the winner (most likely someone that lives near the resort) would use the tail end of the week. It would be advertised as a weekend getaway...this would ensure the space is available to the members even if they look for the space the day before check in.

What’s new?? The approach is new, the fees would be much less, no hiding weeks, not so many restrictions and rules and regulations. Don’t we already have enough of that in our daily life to have to deal with more rules when planning our vacation?

The main feature on this new way of exchanging would be that you would be treated with utmost respect, I would always keep in mind that you are doing me a favor and not the other way around.

 

[Carl D]

Out of curiosity, did you pick the $50 amount and other policies out of thin air, or do you have a business plan/model that shows this will work?

 

[boyblue]

Out of curiosity, did you pick the $50 amount and other policies out of thin air, or do you have a business plan/model that shows this will work?

out of thin air base on current fees.

 

[DanM]

This thread is wandering around a bit because the idea isn't really clear. It might be useful if the thread starter explained how the new venture might differ, specifically, from DAE or SFX which seem to be the main alternative exchanges.

For example, DAE treats all resorts and time periods equally. SFX won't accept deposits that don't meet its minimum demand and regional requirements. What is the proposed approach?

 

[Change the X-change]

Out of curiosity, did you pick the $50 amount and other policies out of thin air, or do you have a business plan/model that shows this will work?

I figured I worked for II so long and I thought that much of the system was so unfair to the member that I just decided that whatever policy and procedure they had in place, I would do the opposite...just kidding.

I know this business well...think of it, what are policies, it's just a person or group of people sitting down in an office and rambling about how things should be done, the last person that is asked is the end user.

The policies do not have to be written in stone, if they are in place they have to be followed however, I would encourage and even promote a board of elected members/customers that would get together and review policies that are not well liked, we will discuss them, express views and put them up for an optional on-line vote where ALL members can decide their own fate. It would probably be limited to one policy a quarter.

 

[boyblue]

Out of curiosity, did you pick the $50 amount and other policies out of thin air, or do you have a business plan/model that shows this will work?

oops I thought you were asking me that question - Sorry!

 

[Change the X-change]

For example, DAE treats all resorts and time periods equally. SFX won't accept deposits that don't meet its minimum demand and regional requirements. What is the proposed approach?

I would try to stay away from SFX format…I do not believe in catering to the “elite” only. I would take any week and any time you have. Since the member is an essential part of this operation I would appeal to the good faith of the members to attain the best week that they are allowed by their home resort if this happens we should have good availability, to help with this "good faith" I would throw in a NO RESTRICTIONS bonus week good for 2 years, it would be based solely on time of the year and not on quality.

DAE is more along the lines of what I am looking at with marked differences i.e. exchange fee; with them you need to call to reserve your week. With me, no holding, no rude rep. 100% on-line. Also, I would have member involvement to opine and maybe even change the way business is conducted this, just to mention a few.

 

[Change the X-change]

Boy Blue, you have some outstanding Ideas, hope you don't mind if I use a few...

 

[taffy19]

A partnership with TUG would provide instant credibility...

Just a thought!

Now, you are talking! Can't you two set it up with the owner?

 

[PerryM]

Apples and oranges

Apples and oranges – that’s the problem with II and RCI now – they try to equate 1 whole apple to 1 whole orange. It can’t be done for fruit and it can’t be done with timeshares.

X, I wish you luck but feel you are doomed with the ideas you’ve presented here – this the same old Three Card Monte and I think the timeshare world is burned out with it. Look at all the moaning and groaning that goes one all the time here.

You need to equate 1 apple to 2 oranges or 2 apples to 1 orange. Ideally you would relate 1 apple to 1.5 oranges.

This can’t be done without a point based exchange and with condo-hotels and fractional integration a point based system can easily handle all of this where the week based system can’t.

I wish you good luck but I see this venture already doomed.

 

[Change the X-change]

Re: Apples and oranges

I wish you good luck but I see this venture already doomed.

I disclosed my name in a previos posting, it's Mike, nice to meet you sir.

I respect your opinion and we'll see how it goes...loser buys lunch...I'll contact you to collect.

 

[rickandcindy23]

Change,

I currently get AC's for two of my weeks, which I really appreciate, considering my weeks are not Five Star, but are high demand times. Would you have an equivalent to this? I love the bonus weeks and we use them every year. We own less weeks because of those bonuses.

I would love to see a new company that would rival RCI and Interval. Having owned timeshare for 25 years, we have gotten very comfortable with our current situation. But I would try it, as long as you can get me to Disneyworld!

 

[boyblue]

Boy Blue, you have some outstanding Ideas, hope you don't mind if I use a few...

Sure go ahead, that's why I posted em.

 

[PerryM]

Socks

X, (I know your name is Mike - I’m using a shortcut of your handle)

Your handle is “Change the X-change”. I had high hopes, but fear that you’ve been exposed to II too much and the radical upstart that can someday take on II and RCI will not be done with a kinder and gentler version.

II and RCI are well run monopolies that a dozen or so pipsqueak exchanges have been battling with little success – a radical departure is needed to unseat these two.

RCI Points already has addressed the idea of a virtual timeshare where you buy RCI Points and don’t care what timeshare generated them. Because of the terrible implementation of a beautiful Point program, there is room here to overtake RCI Points, which is the future of timeshare exchanges.

Let’s see if others come forward with bold new ideas that will knock the socks of the establishment.

As to lunch; I work out at lunchtime but my favorite restaurant is Ruth’s Chris Steak House
in Wailea (or Lahaina), Maui.

 

[getreal]

Re: My dream exchange company

Here’s my thoughts on the ultimate exchange company:

It should be Points driven based on rental rates.

When someone deposits a week, a rack rental rate would be assigned to the week and that money would be deposited into an account. (Company does this) ...

Perry, the "rack rental rate" is the only thing we need. As soon as that is established and widely respected/trusted, everything else will fall in place thanks to the internet. Multiple exchange companies will appear overnight, just like lots selling used cars.

If there was an objective valuation then we may see TS rental market with a high sales volume, and then nobody needs an exchange company: you simply sell your unwanted week(s) on the open market, and buy the week(s) you want.

And as long as the what you get for your old week + $164 is less than you pay for the new week, you are ahead of RCI.

TUG can create the "rack rental rate" database with very little expense. It will transform the TS market.

 

[JillChang]

I fully support a point system and the flexibility that comes with it.

How about modelling it after a multi-resort system? Pay an annual fee to become member, deposit a week for an established point value, and free to use the points to reserve days(if allowed by resorts) or weeks within the system WITHOUT AN EXCHANGE FEE

You could probably demand a higher fixed membership fee but the flexibility and zero exchange fee should be popular, you will definitely attract owners with multiple resorts. Or to be fair, you can charge a membership fee based on a percentage of points banked. Since all weeks have a preassigned point value, then they can all be available online with 100% transparency!

I will also like to see the followings:
1. No expiration or long expiry date, say 5 years. Or, to be fair, a depreciation (10%?) of points each year after 2 years so owners do not completely loose their banked week.
2. Last minute promotion or discounts on points
3. Occasional bonus for high demand week/resorts or early deposit (good marketing strategy anyway, people always like to see promotions)
4. Free guest certificate
5. Allow cancellation/ changes within a certain time frame, and/or minimal charge after that, say 90 days out. So many of us have to change our plans after having it made more than a year in advance, and there are also so many that wish they can make arrangement much later and still have a nice selection of properties to choose from.
6. And if you can manage, an affiliation with a top hotel chain to allow members to use their points on hotels in cities and countries where timeshares are seriously lacking! Of course, the points used on hotels has to make monetary sense based on MF paid.

Am I asking too much? sounds good to me,maybe I should start an exchange company with this model

 

[grest]

Good luck with your new venture. I support that.
Why not have someone try to form a new exchange company? RCI and II started somewhere, probably with not much, so why not Mike? We can then have another option...He's right up front in what he's planning, and asking for ideas...so far so good
Connie