Is HGVC planning to keep the DRI Destination Exchange program?

[T_R_Oglodyte]

Today I received an email DEX newsletter from HGVC announcing new destinations and with a reiteration of various DEX rules that appear much the same the program under DRI.

It certainly seems as though HGVC intends to continue DEX. Does anybody have more info on how DEX will operate under HGVC? Will DEX be expanded to include HGVC members?

Diamond targeted DEX as the preferred exchange option for Diamond Club members, dropping their direct affiliation with II when they opened the DEX program. If HGVC keeps DEX, will they also make DEX the preferred exchange for HGVC and HGC Max members?

 

[dioxide45]

I would think they would keep it for DRI owners that don't opt into MAX. What other exchange option would they have. I don't see them allowing HGVC into DEX as this would negate the need for MAX, wouldn't it?

 

[CalGalTraveler]

@T_R_Oglodyte Are they now offering HGVC (vs. just HGV/DRI) properties on DEX? If so, where do they get HGVC VOIs for DEX if there are no deposits by HGVC owners? I would expect HGVC would make more money renting developer units out on Hilton.com.

IMHO...MAX is primarily designed for HGV (DRI) users because that is where the value prop is the strongest. DRI already has access to DEX so adding HGVC properties to DEX would run counter to the argument above because that would detract from MAX. However exchange fees for HGVC trades are another source of revenue from DRI users if they don't opt into MAX.

I hope they offer DEX to HGVC. I doubt it would negate MAX for HGVC because one can exchange to DRI via RCI and I could envision HGVC wanting to keep those properties and the associated exchange revenue in the family.

 

[escanoe]

I would think they would keep it for DRI owners that don't opt into MAX. What other exchange option would they have. I don't see them allowing HGVC into DEX as this would negate the need for MAX, wouldn't it?

My hopes are they bring HGVC in at least as an option. I see why they rolled MAX out first, but DEX offers something different than MAX (while minimizing payments to RCI/Wyndham).

If the reason you suggest is operative, I don't think DRI would have launched DEX in the first place. It would have hurt developer sales to their point trust which was the only way to previously bridge DRI deeds and trusts. I believe over time they are going to want to brand things under the new umbrella and minimize payments to RCI/Wyndham or II/Mariott.

I could be wrong, but I have been doing my best to talk this up for some time on TUG. Conversations other TUGers have had with DEX staff has led us to believe a significant expansion of DEX (probably with a rebrand) could be in the works.

 

[dioxide45]

They likely created DEX as both a selling point and to increase revenue. Revenue from exchange fees and breakage and as a selling point that you aren't stuck at your home resort or collection. Why would a timeshare company affiliate with any exchange company? I think they didn't like the fact that both of the big exchange companies were owned by competing brands, RCI/Wyndham and II/Marriott Vacations and wanted to take some of the slice of the pie away from them.

I am just not sure why they would allow deposits of HGVC weeks into DEX when they are trying to push people to Max. Yes, HGVC does deposit into RCI, but aren't those limited to off season and perhaps not all the prime locations? There are also resort fees associated with exchanges in to HGV and DRI through RCI/II.

 

[T_R_Oglodyte]

To all of the above - I don't have answers, only questions. That's why I started the thread.

IMHO - Follow the money.

To put in another $0.02 worth, going back ~20 years, I always thought that one big reason for creating broader opportunities for usage within resort systems was for the developers/managers of resort networks was to capture exchange fee revenue that was going to the exchange companies. Instead of paying exchange fees to RCI or II, owners would pay a Club membership fee instead. Then resort systems would include an exchange company membership as part of the Club membership program, so that members would still have the larger suite of exchange options. The cost for that membership would be buried inside the Club membership fee, but because the exchange company would have much more interest in having a preferred relationship with the developer/operator, that fee would be significantly less than what owners would pay for individual membership with the exchange.

Diamond creating DEX simply took that one step further. They found a way to be able to access exchange inventory outside of their network and make it available to members. Now they collect all of the exchange fees themselves. If you want to go outside DEX you still can, but now you pay both the membership fee and the exchange fee for whatever exchange company you are working with.

And the more options they can fold into DEX, the less reason there is for members to go outside the system. And it also works well on the sales floor, as it puts more dots on the map for the sales crew to show as options for direct trade without needing to work with an exchange company.

 

[escanoe]

I think they didn't like the fact that both of the big exchange companies were owned by competing brands, RCI/Wyndham and II/Marriott Vacations and wanted to take some of the slice of the pie away from them.

Keep in mind (for readers at home) DEX got DRI away from II completely. It also keeps them out of "RCI" from a branding perspective. However, RCI is currently where DEX gets its "affiliated resort" inventory and also the back end of the DEX-branded portal for those transactions.

What is amazing to me is that these exchanges to affiliated resorts happen on the back end through RCI, and DRI does them for an online exchange fee of $149. (The going RCI rate for that next month will be $269.) Considering that DVC has pulled out of RCI .... HGVC and DRI combined now have WAY more negotiating clout than DRI alone did back when they negotiated the $149 fee.

My hope is that ultimately DEX pulls away from RCI completely, but even if they do not do that .... they would be foolish to stay with RCI AND not 1) exercise the tremendous bargaining clout they have and 2) get RCI's branding off all the HGVC external exchanges.

 

[NiteMaire]

Does anybody have more info on how DEX will operate under HGVC? Will DEX be expanded to include HGVC members?

Possibly. HGVC owners opting into Max will use "THE Club" to exchange into DRI/HVC properties. As I understand it, members of "THE Club" can use DeX for exchanges (and I haven't found a points owner that likes it due to the # of points required for the tiers). Also, DeX may be opened up beyond HVC/HGV in the future. It's only a possibility at the moment based on my converation with DeX staff.

I would think they would keep it for DRI owners that don't opt into MAX. What other exchange option would they have. I don't see them allowing HGVC into DEX as this would negate the need for MAX, wouldn't it?

They are keeping it for DRI owners; it's the only way deeded owners we can exchange internally to DRI.

Are they now offering HGVC (vs. just HGV/DRI) properties on DEX? If so, where do they get HGVC VOIs for DEX if there are no deposits by HGVC owners? I would expect HGVC would make more money renting developer units out on Hilton.com.

They've been offering them for a while; I think even before the acquisition. They are currently listed as a Destination Partner (since DRI/HVC currently uses RCI as the backend for it). There's potential that they become listed as "Managed" which would mean the resort fees go away. It's the first point in the thread I've linked below.

Conversations other TUGers have had with DEX staff has led us to believe a significant expansion of DEX (probably with a rebrand) could be in the works.

I know @escanoe is aware of this, but, for others on TUG, here's the post I made reference this (2nd point in the linked thread): Potential Future Changes to DeX - Integration with HGV and One Other | Timeshare Users Group Discussion Forums (tugbbs.com)

 

[T_R_Oglodyte]

As I understand it, members of "THE Club" can use DeX for exchanges (and I haven't found a points owner that likes it due to the # of points required for the tiers).

We used DEX one time to exchange into a 2-bdrm Feb Presidents Week in Palm Springs. Overall, I thought that the points required and the exchange fee were competitive with what we could have obtained via an exchange company.

 

[Talent312]

The whole point of Max was to provide DRI/HVC owners and HGVC+bHC owners a mechanism to book each others resorts, while providing HGVC with a cash-cow. Allowing cross-pollination without having to use Max defeats/dilutes its purpose. "Na gonna happen."

 

[dioxide45]

The whole point of Max was to provide DRI/HVC owners and HGVC+bHC owners a mechanism to book each others resorts, while providing HGVC with a cash-cow. Allowing cross-pollination without having to use Max defeats/dilutes its purpose. "Na gonna happen."

That was my thought. If they opened DEX up to HGVC weeks, wouldn't all those that paid thousands or tens of thousands to access Max be rather upset?

 

[escanoe]

That was my thought. If they opened DEX up to HGVC weeks, wouldn't all those that paid thousands or tens of thousands to access Max be rather upset?

My sense is anyone that paid tens of thousands just to get into Max is going to be upset once they find out what they get at the six month mark.

Were people that made developer DRI Trust purchases just so they could trade between trusts upset a few years ago when DEX came along and let any DRI owner (even of deeded weeks) use DEX to trade into any DRI property across trusts? Wouldn't opening DEX up to HGVC be the same thing?

I could certainly be wrong, but I think they have more incentive$ over time to grow DEX than not ... once they get through taking money from suckers that will pay for Max and not even have any idea what they are getting.

 

[magmue]

.... when DEX came along and let any DRI owner (even of deeded weeks) use DEX to trade into any DRI property across trusts?

I am a new owner of a DRI deeded week, so I'm still figuring things out. But my understanding is that there are different DEX buckets with different inventories - one for deed owners, one for point owners of "Collections", and one for THE Club, which is a pure points-based trust. IOW not trading across trusts. @NiteMaire or @T_R_Oglodyte may be able to confirm, as experienced DRI Owners.

 

[T_R_Oglodyte]

@NiteMaire or @T_R_Oglodyte may be able to confirm, as experienced DRI Owners.

Sorry. I have little DEX experience. That's a key part of why I started this thread.