They've already killed the enrollment pathway IMO. This is just them doubling down on that issue. For me and most of us, the carrot is simply too far away to even consider. I thought they might require a minimum purchase to "re-qualify" like Bluegreen did for their new level.
I agree. If the next level up was only 3,000 to 5,000 points, and if we could actually use those points, and the benefits of the next level had enough value, then maybe it would be a consideration.
What they fail to realize is that you can eat an apple in several small bites easier than trying to eat an apple in one large bite. The previous levels demonstrate that rational thinking whereas these new levels will only satisfy the complaints of small percentage of mega owners that they should have more benefits.
I understand current owners are your best prospects. Unfortunately, without an influx of new owners, the existing well of current owners wanting to buy additional points will eventually run dry.
The entry price for new owners is, IMHO, too high for many gen X and millennials to afford. The cost of housing, food and transportation will put expensive vacation ownership on the back burner. We purchased our first timeshare from developer in 1998 for $18,900. That was a 2 bedroom lockout unit and we got 2 weeks of vacation out of it every year. We were always able to exchange the studio up in size to a 1 bedroom. At that time in our lives, 2 weeks was more than enough based on available vacation time and the ability to afford the MF’s, which were around $600/year. We did purchase an additional week the next year at a discounted rate of $14,900, pre construction, because we wanted to be able to take the kids and we wanted to take 2 full vacation weeks per year. We paid cash for both deeds at that time.
In today’s prices with inflation that original $18,900 week should only cost $37,800 (1998 dollar adjusted for inflation). Has anyone seen a 2 bedroom deeded week at such a low price from a developer? The last time we toured our home resort at Breckenridge Grand Vacation Club, which still sells deeded floating weeks, a non-peak summer week (May-June-last half of August and September) was going for a little less than $70,000! Abound points are worse in that you’ll need, at a minimum, 6,000 points to get two weeks vacation. 6,000 points at developer pricing is $104,520! Holy cash cow Batman!
So new buyers are being priced out of the picture and existing owners are getting older and cutting back. Talk about potentially painting yourself into a corner. Now management comes along and sets the bar so high for the next levels that I see very few jumping at the opportunity. I know the price tag is WAY out of my league.
It will be interesting to see the earnings call in the coming years. Maybe I’m wrong and these wheeler dealers have found a way to sell the emperor some new clothes.
. Enjoy
