Marriott acquisition of Interval International

[eellerman]

How will Marriott's acquisition of Interval International going to affect Westgate (or other timeshare company) owners?

 

[travelhacker]

How will Marriott's acquisition of Interval International going to affect Westgate (or other timeshare company) owners?

MVW (Parent company for MVC) purchased ILG (Parent company of Interval) back in April of 2018. There hasn't been a whole lot that has changed.

I think a primary reason why MVW bought ILG was to get Vistana, and they got an exchange company that had a large membership base and pretty good margins (with memberships, exchange fees, ePlus, upgrade fees, etc).

Interval just recently raised rates, but they were probably overdue in comparison to RCI.

I would actually expect Interval to raise the price of membership by about $10+ per year in the next 6 months or so...simply because they can.

So far it has been business as usual, and I would expect that to continue.

 

[dioxide45]

How will Marriott's acquisition of Interval International going to affect Westgate (or other timeshare company) owners?

So far, II has lost one big timeshare system. Diamond Resorts pulled out and created their own exchange company, DeX. I beleive DeX also obtains some inventory from RCI. As for some of the other timeshare companies. It is hard to say. Westgate really isn't a competitor on the hotel side of things, so I suspect they don't care too much. They are also targeting a different demographic of owners. I doubt owners will be impacted much unless the other companies want to change affiliations. Though even when that happens, they still have the option of using the previous exchange company. Thus the reason why some Marriott resorts also trade in RCI.

 

[goaliedave]

Wyndham had RCI, Marriott has II, Hilton has DeX so the big three are setting up to compete head on. Any bets on who is next to be bought- westgate and Bluegreen are the biggest independents i guess?

 

[escanoe]

Wyndham had RCI, Marriott has II, Hilton has DeX so the big three are setting up to compete head on.

Let's hope HGVC/DRI launch DeX as a real, full-service online exchange. I believe that would perhaps improve the lethargy we have seen in the II and RCI competition.

I am sure we will see additional mergers and acquisitions. But I expect things are set for Marriott, Wyndham, and Hilton to be the big three for the foreseeable future.

In addition to the time share companies you mentioned, I wonder if Vacation Village is ever viewed by any of the larger players as something to be acquired.

 

[dioxide45]

Let's hope HGVC/DRI launch DeX as a real, full-service online exchange.

The only issue I see with DeX is their tier pricing structure. Makes some exchanges very unappealing and no real credit when exchanging down unless you really exchange down and can get 2 for 1.

 

[Mongoose]

Wyndham had RCI, Marriott has II, Hilton has DeX so the big three are setting up to compete head on. Any bets on who is next to be bought- westgate and Bluegreen are the biggest independents i guess?

Isn’t Westgate something of a dog?

 

[dioxide45]

Isn’t Westgate something of a dog?

Their resorts are supposed to be pretty good. Sometimes the rooms are in rough shape. Their sales practices are abhorrent.

 

[dayooper]

Isn’t Westgate something of a dog?

I think the resorts are kinda hit or miss. There are some great resorts like the Park City property. I think the same is true for BlueGreen as well.

 

[RunCat]

MVW (Parent company for MVC) purchased ILG (Parent company of Interval) back in April of 2018. There hasn't been a whole lot that has changed.

I think a primary reason why MVW bought ILG was to get Vistana, and they got an exchange company that had a large membership base and pretty good margins (with memberships, exchange fees, ePlus, upgrade fees, etc).

Interval just recently raised rates, but they were probably overdue in comparison to RCI.

I would actually expect Interval to raise the price of membership by about $10+ per year in the next 6 months or so...simply because they can.

So far it has been business as usual, and I would expect that to continue.

As a reminder, in the purchase of ILG, MVC also got Hyatt Residence Club. And also recently purchased Welk.

 

[escanoe]

II is not any better than DeX (in this regard) for people with a regular account that trades weeks.

I wish both II and DeX would adopt the RCI TPU type system.

But just having a DeX that works as it does that is expanded to an open system would be a good thing. I hope with 3 competitors there will be pressure for all of them to up their game.

The only issue I see with DeX is their tier pricing structure. Makes some exchanges very unappealing and no real credit when exchanging down unless you really exchange down and can get 2 for 1.

 

[Mongoose]

As a reminder, in the purchase of ILG, MVC also got Hyatt Residence Club. And also recently purchased Welk.

As a HRC owner I have seen some pluses to this. My last three II trades have all been prime season Marriotts.

 

[Mongoose]

II is not any better (in this regard) for people with a regular account that trades weeks.

I wish both would adopt the RCI TPU type system.

All my RCI trades have been in points from HICV and Worldmark. They have excellent trading power. But I'm not sure how TPU's work or even if they apply for points/credits?

 

[escanoe]

RCI Points is like TPUs used in an RCI Weeks account in that a value is placed on your deposit that can be used as currency in trading. If you get 60 TPUs for a deposit in RCI Weeks, you can book 2 trades at 30 TPUs each instead of just one.

You can also pay to combine TPU deposits in RCI weeks.

With a regular II account (the mini systems that trade in points are different) you are limited to 1:1 trades. You can trade into a lesser unit if you wish, but there is no “change” left that can be used to book something else.

All my RCI trades have been in points from HICV and Worldmark. They have excellent trading power. But I'm not sure how TPU's work or even if they apply for points/credits?

 

[travelhacker]

As a HRC owner I have seen some pluses to this. My last three II trades have all been prime season Marriotts.

When doing an Ongoing search, ILG will take whatever the best deposit is. I think Hyatt beats out just about anything that is outside of preference since they are points. I've had good luck with trades as well.

 

[Mongoose]

When doing an Ongoing search, ILG will take whatever the best deposit is. I think Hyatt beats out just about anything that is outside of preference since they are points. I've had good luck with trades as well.

I think since Marriott purchased Hyatt, we get priority access to Marriott.

 

[dioxide45]

I think since Marriott purchased Hyatt, we get priority access to Marriott.

I am not aware of any Hyatt to Marriott priority or preference period like there is Marriott to Marriott. The only preference for Hyatt is Hyatt to Welk and there is also a Welk to Hyatt priority preference.

 

[Mongoose]

I am not aware of any Hyatt to Marriott priority or preference period like there is Marriott to Marriott. The only preference for Hyatt is Hyatt to Welk and there is also a Welk to Hyatt priority preference.

Maybe not, I’m not sure where I got that, but my Hyatt has been a great trader with them.

 

[jrb916]

Isn’t DeX built using some type of relationship with RCI or pulls some inventory from it?

Capital Vacations platform, Global Exchange is built the same way. It has a lot of the RCI getaway weeks listed in it.

 

[Mongoose]

Isn’t DeX built using some type of relationship with RCI or pulls some inventory from it?

Capital Vacations platform, Global Exchange is built the same way. It has a lot of the RCI getaway weeks listed in it.

I think they must because they show non-DRI resorts in there directory.

 

[escanoe]

My understanding of DeX:

1) Everything consumer facing for those exchanging within DeX is branded as DeX

2) It functions as a true full exchange for exchanges taking place within the greater DRI community (points owners and weeks owners trading weeks across the system … but does not yet include HGVC)

3) For exchanges where one of the resorts is outside the DRI system, it is DeX on the consumer end and it is interfacing with RCI on the back end.

4) The way 1-3 work above, only enough DRI inventory is deposited into RCI to offset people in DeX (DRI) trading outside the system into RCI inventory.

5) The uniqueness of this system is that none of it is RCI branded and HGVC/DRI could grow it out and away from RCI if they want

6) It is only like $150 for an online exchange versus the $259 RCI charges

7) I have no idea what the DRI/RCI contractual arrangement is, but DRI/HGVC have leverage — they are by far the largest non-Wyndham timeshare system dealing with RCI.

I think they must because they show non-DRI resorts in there directory.

 

[jrb916]

Global Exchange is very similar, internal trades are $159 & RCI is $189. CV is subsidizing those to get trades & I expect that rate to increase over time.

 

[dioxide45]

7) I have no idea what the DRI/RCI contractual arrangement is, but DRI/HGVC have leverage — they are by far the largest non-Wyndham timeshare system dealing with RCI.

I would think there is some anti competitive clause in their contract that would prevent DeX from trying to affiliate with any resorts already affiliated with RCI. If RCI were to lose HGV, it would just be a shell of small independant resorts and may fade into obscurity.

 

[CPNY]

I read today in one of the Interval FB groups that someone is concerned/heard that Marriott is going to be outsourcing the interval call center to India. Can anyone confirm the validity of this? Is it possible that Marriott is taking interval call center employees to staff the VSE/MVC phone lines in anticipation of a new program? I’m sure they expect “higher than usual call volumes” when they roll out the new program enhancements

 

[dioxide45]

I read today in one of the Interval FB groups that someone is concerned/heard that Marriott is going to be outsourcing the interval call center to India. Can anyone confirm the validity of this? Is it possible that Marriott is taking interval call center employees to staff the VSE/MVC phone lines in anticipation of a new program? I’m sure they expect “higher than usual call volumes” when they roll out the new program enhancements

Do they already outsource the Vistana and MVC call centers? I hardly ever call.