RCI Weeks to offer value transparency

[timeos2]

I have recently heard from two different RCI sources that, as part of the fallout from the ill-fated class action suit, the RCI Weeks system is going to undergo a major and unprecedented change. The long secret trade value is coming out from the shadows and will be used front and center as the new means for facilitating trades.

What that means is no more secret values. Instead each and every week will get a known value when you deposit - and what you want to get will also have a known value. This is a major breakthrough. It will finally give members a way to know what they have and what it will cost to get what they want. It is NOT another points systems (trades will remain as 7 days). It will have other features.

- Consolidating. The resort you deposit is worth 40 on the trade scale. The one you want (one of the best, highest demand in the system as we all seem to desire) demands 55. Yo can take a combined value of another week to reach the 55.

- Change back. You are the lucky owner who deposits a high value time worth 50 on the scale. You can travel in off season or can use a smaller unit at only 20. You get the "change back" (30 credits) for future trades.

Those are just a couple key basics. What a positive and long overdue change. With the values revealed and the ability to use multiple weeks and/or get change back the whole game changes. For the better.

Of course there will be losers as well. Those who knew how to game the system for free upgrades will now pay the going rate. Those who thought they had gold in some low value or over inventoried area will get less credits. Those who felt quality wasn't in the equation will learn it has a place. Overall I see this as a big step in the right direction for the broken weeks based exchange system that every exchange, not just RCI, should be looking at adopting.

The announcement should occur in 4-8 weeks. That should be enough to get the conversation rolling for now.

 

[svwoude]

John, Is the April Fools several days early?

RCI and transparency in the same sentence? :rofl: Who'da thunk

Steve

 

[Carolinian]

The only way that could be a fair system is if 1) the method of setting values is fully transparent to prevent the developer politicking of RCI for values not justified by the market, and 2) the values remain dynamic rather than rigged and frozen like RCI Points. If the numbers are published but the method of setting them is hidden, then it will be open season for developers getting RCI to cook the books. Deal appropriately with those two issues, and I would not have that much problem with it. Of course, I will still probably use DAE and SFX instead.

 

[jacknsara]

John,
Any word on changes to the system at the 45 and 14 day thresholds? Of course, I can wait to find out but that has been the primary focus of my trading activity using my Mexican studio.
Thanks for the heads up
Jack

 

[krj9999]

If this happens as indicated, does this mean trading up from a 1BR to a 2BR will be more challenging? Will there be different point values for different sized units?

I have recently heard from two different RCI sources that, as part of the fallout from the ill-fated class action suit, the RCI Weeks system is going to undergo a major and unprecedented change. The long secret trade value is coming out from the shadows and will be used front and center as the new means for facilitating trades.

What that means is no more secret values. Instead each and every week will get a known value when you deposit - and what you want to get will also have a known value. This is a major breakthrough. It will finally give members a way to know what they have and what it will cost to get what they want. It is NOT another points systems (trades will remain as 7 days). It will have other features.

- Consolidating. The resort you deposit is worth 40 on the trade scale. The one you want (one of the best, highest demand in the system as we all seem to desire) demands 55. Yo can take a combined value of another week to reach the 55.

- Change back. You are the lucky owner who deposits a high value time worth 50 on the scale. You can travel in off season or can use a smaller unit at only 20. You get the "change back" (30 credits) for future trades.

Those are just a couple key basics. What a positive and long overdue change. With the values revealed and the ability to use multiple weeks and/or get change back the whole game changes. For the better.

Of course there will be losers as well. Those who knew how to game the system for free upgrades will now pay the going rate. Those who thought they had gold in some low value or over inventoried area will get less credits. Those who felt quality wasn't in the equation will learn it has a place. Overall I see this as a big step in the right direction for the broken weeks based exchange system that every exchange, not just RCI, should be looking at adopting.

The announcement should occur in 4-8 weeks. That should be enough to get the conversation rolling for now.

 

[DeniseM]

Sounds like Redweek!

 

[timeos2]

If this happens as indicated, does this mean trading up from a 1BR to a 2BR will be more challenging? Will there be different point values for different sized units?

Yes, but I'd rename them " trade credits" rather than points to prevent confusion with the two distinct systems.

A 1 bedroom won't carry as many credits as a two bedroom of the same use date, resort, etc. And a ranked resort will have more credits than an unranked. Each area of supply, demand, quality, size, date - they will all contribute to the credits assigned. Just as they always have but in the dark vs known to the member.

 

[timeos2]

John,
Any word on changes to the system at the 45 and 14 day thresholds? Of course, I can wait to find out but that has been the primary focus of my trading activity using my Mexican studio.
Thanks for the heads up
Jack

Yes, there are changes to the time period when discounts will take effect and how much. They also sound positive. Overall it is a more open system and puts more control/knowledge in the hands of the paying members.

 

[Carolinian]

Yes, but I'd rename them " trade credits" rather than points to prevent confusion with the two distinct systems.

A 1 bedroom won't carry as many credits as a two bedroom of the same use date, resort, etc. And a ranked resort will have more credits than an unranked. Each area of supply, demand, quality, size, date - they will all contribute to the credits assigned. Just as they always have but in the dark vs known to the member.

If they are using a resort being ''ranked'' I suppose that means award status, and if that is the case I already know this new system will be crap, since award status is a very different thing than demand. It has some impact on demand but is far ourweighed by location. In a beach area, the rankings should be on the beach, then walking distance to the beach, and finally drive to beach resorts. Those factors have a whole lot more to do with demand than award status. On the OBX, for many years one of the two GC resorts, BIS-Kitty Hawk was by far the lowest demand resort in the area due to poor location relative to the beach (of course, now it has lost its GC status, too). Similarly, in London, Allen House in central London, which has a lower ranking has a far superior location and much higher demand than GC Odessa Wharf way out in the docklands. They need to look solely at historic supply and demand per resort. Whatever impact award status has is already factored into that. When they use award status as a seperate factor in trading power, it completely distorts the curve. I know that if any beachfront resort on the OBX ends up equal to or lower than BIS-Kitty Hawk, then owners will rightly scream.

 

[Carolinian]

Yes, there are changes to the time period when discounts will take effect and how much. They also sound positive. Overall it is a more open system and puts more control/knowledge in the hands of the paying members.

Unless there is TOTAL TRANSPARENCY of the mechanism of setting values, the system is far, far worse than what exists now.

We know how easy it is to trade into the overbuilt areas now, due to the vast oversupply there. If these values inflate their trading power, then it will be revealed as a total fraud by RCI. Points has done that and I suspect given who is so happy about this one, this new system will also overvalue the overbuilt areas.

 

[logan115]

Well, for a novice like myself I think this is really going to aid my decision on which (if any) TS to purchase to go along with my DVC points, so I consider myself to be in the group that this will benefit - despite the fact that it probably means I'll be paying up for whatever I end up buying (assuming the seller realizes the increased value of their TS). I can't imagine that RCI is going to "nail it" in terms of properly assessing values, so there should still be some great opportunities to maximize exchange value.

Chris

 

[Timmuscat]

John, how will this new RCI weeks system impact Wyndham owners who depositgeneric weeks? How will these generic weeks be valued? Will we still have any priority when attempting to exchange back into Wyndham resorts?

This will be an interesting change. The prevailing view has been that you should not deposit more than a generic red studio (70,000) or a generic red one bedroom (105,000), because a larger generic Wyndham point deposit does not really increase your trading strength in RCI weeks. Will this change? Will a 154,000 deposit now bring significantly more trading power in RCI weeks? What happens to my existing 28,000 point deposit?

Thanks in advance. TUG rules!

 

[T_R_Oglodyte]

Unless there is TOTAL TRANSPARENCY of the mechanism of setting values, the system is far, far worse than what exists now.

We know how easy it is to trade into the overbuilt areas now, due to the vast oversupply there. If these values inflate their trading power, then it will be revealed as a total fraud by RCI. Points has done that and I suspect given who is so happy about this one, this new system will also overvalue the overbuilt areas.

Why is transparency needed?

When people go to a store they don't demand transparency as to how the store sets prices. All a consumer needs to know is how much money they have in their wallet (i.e., how much their week is worth) and how much the goods in the store will cost (i.e., the price needed to get the weeks that are inventory.

From that information you can make the decision as to whether or not you want to shop at that store, or take your business somewhere else. If a store persists in overpricing inventory, the stuff sits on the shelf until it loses value.

********

You've long advocated the value of using independent exchange companies because they offer better value. I would think you would be thrilled to see RCI do this, because the better value offered by independents will be totally evident. And if RCI does goose trade power to inflate the value of certain weeks and undervalue other desirable weeks, the discrepancies will be even more apparent.

I would think that independent companies would be glad to see this happen.

****

This also seems to me to add value to blue weeks. Because if the system allows week values to be combined, blue weeks will still have all of the trade value they currently have, but they will have the added value of being used to upgrade the value of another week.

 

[bilfbr245]

I will likely be one of the losers. I have always relied on the higher value of the unit I receive in trade to offset the cost of the very high trade fee. If the unit I receive in trade is only of equal value, I will be out $179.

 

[urple2]

how will this new RCI weeks system impact Wyndham owners who depositgeneric weeks?

This may well line up with the insider Wyndham rumors I've heard about all generic Wyndham deposits will become visible by June. As to whether there will still be a Wyndham to Wyndham preference will also remain to be seen.

 

[Judy]

What that means is no more secret values. Instead each and every week will get a known value when you deposit -

By "when you deposit", do you mean before you deposit, or after you deposit? We can already see the value of our weeks after we deposit. It's whatever they can pull. By then, of course, it's too late. In today's system you pay first and then find out what you've bought I wonder what will become of deposits already made, but not yet used for an exchange

 

[stevedmatt]

Why is transparency needed?

When people go to a store they don't demand transparency as to how the store sets prices.

In theory, this isn't a store. It is a company that offers a service to all members who individually should be considered equals. Why should there not be transparency among a group of equals?

I am paying a company to be a member of a group. I am not going to a store to buy a product.

 

[rickandcindy23]

I am very concerned at the future of exchanging. I hope others see that this is possibly the worst thing RCI could do to exchangers. THEY value YOUR ownership week, and this is supposed to be transparent? Whatever. I can do some of it on my own. I compare my red and blue weeks all the time, and it sure shows me what they value and what they don't value.

I have a blue week that I used to get an off-season Orlando week (used to have two blue weeks but gave away one of them), and I can rent an identical week directly from RCI much cheaper than my MF ($480) + exchange fee. I am anxious to be done with that week, I can tell you that.

I have already been discouraged to see great units for 7,500 pts in RCI's Last Call that I cannot even pull with this week. They have taken inventory out of RCI weeks, and they have given it only to RCI Points members for 7,500 pts, and not many TUG members seem to care. I brought this up months ago, June of 2009, as soon as they devalued my summer weeks, I noticed the changes.

 

[timeos2]

John, how will this new RCI weeks system impact Wyndham owners who depositgeneric weeks? How will these generic weeks be valued? Will we still have any priority when attempting to exchange back into Wyndham resorts?

This will be an interesting change. The prevailing view has been that you should not deposit more than a generic red studio (70,000) or a generic red one bedroom (105,000), because a larger generic Wyndham point deposit does not really increase your trading strength in RCI weeks. Will this change? Will a 154,000 deposit now bring significantly more trading power in RCI weeks? What happens to my existing 28,000 point deposit?

Thanks in advance. TUG rules!

That is one area I have heard nothing about (impact on Wyndham deposits) but I have to assume they will be assigned a value as any other deposit would. Again it should create a clear choice for value vs cost for each potential deposit thus making the level of points used for what level of value much clearer. Specifically regarding Wyndham there hasn't been anything stated.

 

[T_R_Oglodyte]

In theory, this isn't a store. It is a company that offers a service to all members who individually should be considered equals. Why should there not be transparency among a group of equals?

I am paying a company to be a member of a group. I am not going to a store to buy a product.

I don't think that's a correct perspective at all. A week is like money in your wallet. There are a number of merchants who will take that week from you and give you something back. You spend your money with whatever merchant gives you the most value for your week.

I fail to see any significant difference between that and, for example, deciding whether I should buy my paint at a big retailer like Home Depot or an independent paint store. You just go with whomever provides the best value.

+++++++

I also have no idea what this "equals" concept is that you are talking about. When did RCI become a co-op?

 

[bluehende]

I don't think that's a correct perspective at all. A week is like money in your wallet. There are a number of merchants who will take that week from you and give you something back. You spend your money with whatever merchant gives you the most value for your week.

The problem is that at the RCI store, RCI takes your wallet before you go in. And if you find nothing to buy, they don't give it back.

 

[T_R_Oglodyte]

The problem is that at the RCI store, RCI takes your wallet before you go in. And if you find nothing to buy, they don't give it back.

That question was raised in John's companion thread at ts4ms.

Very interesting info..... I guess we will wait and see.

BTW, will you know the value of your week BEFORE you deposit?
And the value required of those trades you want?
Whatdid your source say?

Yes to both.

So if what John is saying is correct, you will be able to keep your week in your wallet while you browse around. And perhaps even be able to see what would be required to make certain exchanges should a week of that type become available.

 

[jamstew]

Although I still plan to stop depositing to RCI as soon as I manage to use the deposits I already have in, I love the idea of being able to combine the values. Right now, I can't get anything decent with my (supposedly red) 2BR summer week--and by decent I mean another 2BR, even in a slower season except in overdeveloped areas. It will be a good way for me to finish using my deposits and get out.

 

[AFARR]

As a newbie....I have to wonder...

Having just purchased my first week (red week on the OBX) if this will be a help or a hindrance.

However....from what I've read of the RCI Lawsuit, I think it might be a good thing. Seems like a fair number of people are getting disgusted with RCI (hence the lawsuit)...people that had used them for years with successful trades were no longer getting what they wanted, good weeks were suddenly showing up in the rental category (rather than for exchange), etc. There does seem to be a number of people on here who still successfully use RCI, but they know the best way to deposit and search...which is probably beyond many new (or even long term) RCI members.

This might be a good solution overall...the people that know how to use the system will still get the best trade credits (early deposit, etc. that they already use now), and it will be difficult for RCI to suddenly rent weeks that are deposited (instead of allowing for exchange).

I do see several valid points above:
RCI's "valuation" may be way too subjective (or developer pushed).
Overdeveloped areas probably shouldn't have as high a trade value (however, they often do see a large number of visitors vs. some underdeveloped areas...so that my even out).
It will give traditional weeks owners a specific value on their property (and in looking at resale purchases...might be a good way to help find their real value) rather than allowing some vague formula to set the rate.

AFARR

 

[AFARR]

I don't think that's a correct perspective at all. A week is like money in your wallet. There are a number of merchants who will take that week from you and give you something back. You spend your money with whatever merchant gives you the most value for your week.

Snip...

TR,

I was looking at the news (and possible use of Trade Companies) in a similar fashion....for now RCI says "gimme your wallet if you want to browse" (as mentioned above). Redweek says "you have $$$ to spend here in your wallet, this is what we have in that price range", II, etc. seem to have similar systems (I'm a newbie with no trades yet...so maybe someone can jump in on how they work). This makes RCI say "You've got $$$ to spend"..at least you can then get an idea if it's worth shopping with them.

AFARR