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Rci weeks value of deposit

lgreenspan

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I recently deposited a Resort on Cocoa Beach week with RCI for a deposit value of 36. When I check Rci I can see my week available for trade at a value of 29?Has anyone else seen this with your deposits?
 

ronandjoan

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Yep! I deposited a week over a year ago and when the TPU's came out it was a 14. Unfortunately, I didn;t get a print out of the page - would it make a differnence? - and then later it dropped to a 12. I am VERY unhappy!

Yours was a much more valuable week than mine and certianly did not deserve that!
 

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I've pondered this before and wondered what situations lead to this TPU value differential.I have a forthcoming new purchase at Vacation Village Prkwy in Orlando that if I deposit now, it's worth 27 TPU's but I can book the same week on RCI for 7 TPU's.

Remember, though, that RCI makes money only on booked exchanges. We always think of supply and demand as a single calculation, but for RCI it may really be two separate equations. For my orlando week over the 4th of July, RCI can probably book all they can get there hands on but the booking market will only bear 7 TPU's because of all the other competition out there. On the other hand, they have to entice enough owners to deposit their weeks to keep the supply available, hence the higher deposit value. I'm curious what other situations exist like this. Maybe it's almost always like this with the only thing in question being the size of the differential.
 

lgreenspan

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Maybe I was not clear in my previous post. RCI actually gave me 36 points as the website deposit calculator said. Now when I look on RCIs website I can trade back into my deposit for 29 pts. I am not complaining. I was just curious why.
 

tombo

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Maybe I was not clear in my previous post. RCI actually gave me 36 points as the website deposit calculator said. Now when I look on RCIs website I can trade back into my deposit for 29 pts. I am not complaining. I was just curious why.

Because as I said on a different thread, RCI can at their discretion increase the number of TPU's you receive on a week you have already deposited based on their re-evaluation of weeks at their resort, but they will not reduce your # of TPU's after you make the deposit. So your week has dropped in value but they are honoring what they originally gave you when you deposited regardless of what they are now charging to excange for the week you deposited.

There are some people who are going to be mad at RCI no matter what they do. How can you be mad that RCI doesn't ever reduce what you received when you deposited your week, and yet be mad when RCI determines they gave you too few TPU's for your deposit so they increase your trading power?

I guess people that have their trading power on a deposited week adjusted UPWARD who are upset that RCI changed their trading power can call RCI and complain. Perhaps RCI would take the additional TPU's out of their account to make them happy. Personally I wish they would adjust just one of my deposited weeks upward. I can assure you it wouldn't upset me at all.
 
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vckempson

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We're all talking about different things. The original post was NOT about adjustments to TPU after deposit. It was about the difference between TPU's given for the deposit vs what it takes to book right back into the same week.

In my case, they'll give me 27 TPU's to deposit and I could then book the same week through RCI for 7 TPU. Why such a discrepency is the question.
 
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tombo

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We're all talking about different things. The original post was NOT about adjustments to TPU after deposit. It was about the difference between TPU's given for the deposit vs what it takes to book right back into the same week.

In my case, they'll give me 27 TPU's to deposit and I could then book the same week through RCI for 7 TPU. Why such a discrepency is the question.

Differences in time until check-in is the most common reason for varying trading power of identical week. A week that is available for exchange 1 and a half to 2 years in advance are usually much cheaper than the same week 7 to 12 months before check-in. Then as it gets within the 2 to 3 months prior to check-in range it drops like a rock.

Someone on a previous thread described it as a bell curve where 2 years in advance it exchanges for low TPU's, as it approaches a year prior to check in the TPU's required increase, and after the 6 month or so mark the TPU's required drop and keep dropping.

The point I was trying to make is that no matter how low your deposited week drops, RCI will not reduce the amount of TPU's they gave you when you deposited your week. If your week becomes in RCI's eyes more valuable they MIGHT (never happened to me) increase the trading power of your previously deposited week, but they will never reduce it.
 
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vckempson

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We're still talking about different things. If I deposit my week 26 today, I get 27 TPU. I can also go online today and book the exact same week 26 for only 7 points. So we're talking about a huge difference in TPU deposit value vs booking cost at the exact same point in time.
 

tombo

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We're still talking about different things. If I deposit my week 26 today, I get 27 TPU. I can also go online today and book the exact same week 26 for only 7 points. So we're talking about a huge difference in TPU deposit value vs booking cost at the exact same point in time.

I just realized you are talking about Vacation Village at the Parkway. RCI has some kind of a deal with them that I have never understood. There is ALWAYS availability at that resort for any time of the year in points and weeks, and you can trade for it with any weak trader in points or weeks, yet for some unknown reason Vacation Village receives an unreal unexplainable amount of TPU's and RCI points for deposit. The only reason I have not purchased a week at this resort is because of the Disney block on people who own in the Orlando area and because I figure that eventually RCI will lower the number of points they give for deposits and the number of TPU's they give for deposits. This resort has for years been a mystery to me with regards to how easy it is to exchange for, yet how high it is valued for deposit by RCI. If anyone knows of another resort that gets unreal value for depositing like VV while being easy and cheap to exchange for, please list it here. All I can say is that Vacation Villages is an anomaly,not the norm with RCI. I can't tell you why Vacation Villages receives many more TPU's for depositing than it EVER costs to actually reserve the same week you are depositing. I think only RCI can answer that question.

In spite of the unexplainable deposit values placed on Vacation Village by RCI, they still basically follow the bell curve model with regards to what it costs to exchange for a VV week. Since check in date for your week is less than 3 months away it is on the downhill slide and can be reserved for 7 TPU's. However the same week in 2012 requires 16 to 19 TPU's. At 8 to 13 or 14 months in advance most weeks cost the most to exchange for that they ever will, but at the6 month mark or so they decrease in what it costs. Yours is now at the bottom of the curve and going for only 7 TPU's since it is getting closer and closer to check-in.

I can explain why yours costs 16 to 19 TPU's for 2012 and only 7 TPU's for 2011 based on the bell curve RCI seems to be using, but I can not give you any reason why you would get 27 TP's for depositing a week that never costs more than 19 to exchange for. I hope someone else can enlighten us all.
 
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Judy

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We're still talking about different things. If I deposit my week 26 today, I get 27 TPU. I can also go online today and book the exact same week 26 for only 7 points. So we're talking about a huge difference in TPU deposit value vs booking cost at the exact same point in time.
Sounds good to me :cool: If this is happening across the board, it means that we can get more in exchange than the value of our deposited week, in other words, we can trade up. Imagine the uproar if it were the other way around :ignore:
 
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Carolinian

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Those are not RCI's only considerations these days. Another is their rental empire and how these weeks may play into that. A big factor is also their pandering to big developers in sales, essentially overpointing such inventory to butter up the developer to get all those new members for RCI. They are using members trade values as a loss leaders to gain new membership $$ for themselves. Vacation Village at Parkways is one of the clearest examples of that. RCI employee Bootleg, a much respected former Tugger who bailed out of online formums when things got hot after the lawsuit, told us that Vacation Village at Parkway was the single resort that consistently had the biggest oversupply of deposits in the whole RCI system.


I've pondered this before and wondered what situations lead to this TPU value differential.I have a forthcoming new purchase at Vacation Village Prkwy in Orlando that if I deposit now, it's worth 27 TPU's but I can book the same week on RCI for 7 TPU's.

Remember, though, that RCI makes money only on booked exchanges. We always think of supply and demand as a single calculation, but for RCI it may really be two separate equations. For my orlando week over the 4th of July, RCI can probably book all they can get there hands on but the booking market will only bear 7 TPU's because of all the other competition out there. On the other hand, they have to entice enough owners to deposit their weeks to keep the supply available, hence the higher deposit value. I'm curious what other situations exist like this. Maybe it's almost always like this with the only thing in question being the size of the differential.
 
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Yes, I have seen it. It cuts both ways---the deposit could be worth more than the exchange, or it could be worth less. I suspect two things at play. First, there seems to be some averaging going on for deposits; they are much more "static" in value than exchanges. This is probably just to keep people from going nuts watching deposit values change nearly daily. Second, I suspect that RCI could be giving more credits out on average than they charge (to account for spoilage and to increase exchange traffic). I suppose it is also likely that RCI gives out *fewer* credits on average than they charge, but it seems to fail Occam's Razor. The main motivation for that would be to support rentals, and it's not like they've ever needed such an excuse before---they rent whatever they please, just because.

Edited to add: for my intervals, for the most part, the deposit is worth more than the exchange, on average. But, that's such a small sample that it is hard to draw any firm conclusions.
 

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Vacation Village at Parkway, given the corruption of its RCI Points values, the reputation of its developer as being extremely tight with RCI, and Bootleg's description of it as the resort with constantly the biggest oversupply in the entire RCI system, was a key resort that prior to the rollout of Points Lite I posted that I would be watching closely as a key to the honesty of RCI's numbers racket. Well it did not disappoint. It clearly points to the corruption of the entire system. Tuggers have been finding lots of examples of VV@P having significantly higher numbers in than out, but I have yet to see the post showing it the other way and do not expect to. The numbers offered for trade are the true values at this resort, and those offered for deposits are overpointing to pander to the developer.


Yes, I have seen it. It cuts both ways---the deposit could be worth more than the exchange, or it could be worth less. I suspect two things at play. First, there seems to be some averaging going on for deposits; they are much more "static" in value than exchanges. This is probably just to keep people from going nuts watching deposit values change nearly daily. Second, I suspect that RCI could be giving more credits out on average than they charge (to account for spoilage and to increase exchange traffic). I suppose it is also likely that RCI gives out *fewer* credits on average than they charge, but it seems to fail Occam's Razor. The main motivation for that would be to support rentals, and it's not like they've ever needed such an excuse before---they rent whatever they please, just because.

Edited to add: for my intervals, for the most part, the deposit is worth more than the exchange, on average. But, that's such a small sample that it is hard to draw any firm conclusions.
 

sandkastle4966

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I have the same thing (give me more than it takes to get in). It has been this way since the start of TPUs.

The unit is very high demand with little deposits. Owners use or rent their weeks. I look at it as "a reward" to me for depositing the very high demand week.
 

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Being that I just bought into VV at Pkwy for the TUP values I get, I should keep an eye out on the resort development and have an exit plan. When should I look to bail out?

If the books are cooked for the TPU's then I guess I should try to get out, (sell or give away) as they get toward the end of selling their inventory? Since I have a fixed 4th of July week, it might actually be possible to sell it for a little bit. I only paid $ 1 so I can give it away and break even.

Anyone know how much they have left to sell or if they are builiding any new units?
 

ronandjoan

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Yep! I deposited a week over a year ago and when the TPU's came out it was a 14. Unfortunately, I didn;t get a print out of the page - would it make a differnence? - and then later it dropped to a 12. I am VERY unhappy!

!

Well, guess I misunderstood the OP too, but my previously deposited week DID drop in value!
 

bnoble

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Unfortunately, I didn;t get a print out of the page - would it make a differnence? - and then later it dropped to a 12.
Yes, it would have made a difference. I had a similar situation, and when I was able to forward evidence of the higher valuation, my deposit was adjusted back up.
 

chriskre

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Maybe I was not clear in my previous post. RCI actually gave me 36 points as the website deposit calculator said. Now when I look on RCIs website I can trade back into my deposit for 29 pts. I am not complaining. I was just curious why.

There are many who for some reason like to complain about this good fortune. I personally have not a clue what all the fuss is about.
RCI is giving you the option to do another exchange with the leftovers if you so choose. You don't have to use the leftovers but if you want to use the leftovers they're there for you. I think it's the same as what II does with their AC's and XYZ's. If you want to use it it's there for you and if you don't they just expire. They just don't put a point value on those weeks but it's essentially the same thing.

Yes the exchange companies want you to do another exchange. They are afterall, an exchange company and for the most part still make quite a bit of money with their members exchanges despite their rental business.

In my case, they'll give me 27 TPU's to deposit and I could then book the same week through RCI for 7 TPU. Why such a discrepency is the question.

Because RCI wants you to pay them more money doing exchanges. It's not rocket science. Some of us tend to complicate this wayyyyyy too much. :rolleyes:

Vacation Village at Parkway, given the corruption of its RCI Points values, the reputation of its developer as being extremely tight with RCI, and Bootleg's description of it as the resort with constantly the biggest oversupply in the entire RCI system, was a key resort that prior to the rollout of Points Lite I posted that I would be watching closely as a key to the honesty of RCI's numbers racket. Well it did not disappoint. It clearly points to the corruption of the entire system. Tuggers have been finding lots of examples of VV@P having significantly higher numbers in than out, but I have yet to see the post showing it the other way and do not expect to. The numbers offered for trade are the true values at this resort, and those offered for deposits are overpointing to pander to the developer.

And pandering to their owners. ;)
I for one don't really care what their motivation is for overpointing, as being an owner has allowed me to practically live at the beach with the instant exchanges raiding weeks.
Is it fair? Probably not but I didn't make the rules. I just exploit them.
Isn't that the fun of being a member of TUG? Learning how to leverage the different systems? :ignore:

Companies make these deals all the time. What is the difference between what RCI does with overpointing and what SFX and II does with AC's and XYZ's? Truly it's just another way to extract exchange fees and no one is forcing anyone to exchange in the first place. :p
 

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Well, your taking advantage of RCI's misdeeds is no worse than my doing so by using their cheap rentals, which also ripoff the system.

However, there are also the underpointings, and once people understand they are getting hosed, they will quit giving their weeks to RCI. I used to give at least one of my summer England weeks to RCI, and if I got a good exchange quickly, perhaps even the other one, too. Now one goes to SFX and the other to DAE.

As of yesterday, the England - No Canalboats category in RCI had zero summer (June, July, August) availibility for either 2011 or 2012, and for 2011 they did not even have canalboats. VV@Parkway had plenty, as they always do. My UK resort had a grand total of one week availible for the next two years, which was a winter week, and that likely will soon be gone. VV@Parkway had 630+, which by itself was almost as many weeks as RCI had availible at ALL 183 resorts in South Africa COMBINED. RCI has stood supply and demand on their head with its corrupt numbers racket in both Points and Points Lite. Resorts that have been hosed should start seriously rattling RCI's cage, threatening to switch to II and to actively promote use of independents, and they need to be holding up VV@Parkway as Exhibit A of the corruption of RCI's valuation system.
 

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While you're probably correct Carolinian, availability only speaks to supply, not demand. If I go to the grocery story and find 6 feet of shelf space top to bottom with Coca Cola, and only a 12 inch space on one shelf for RC cola, does that mean there's an oversupply with no demand for coke vs the opposite for RC Cola? I don't think so. If you think of RCI like the grocery store, sales volume and turnover is everything.
 
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tombo

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While you're probably correct Carolinian, availability only speaks to supply, not demand. If I go to the grocery story and find 6 feet of shelf space top to bottom with Coca Cola, and only a 12 inch space on one shelf for RC cola, does that mean there's an oversupply with no demand for coke vs the opposite for RC Cola? I don't think so. If you think of RCI like the grocery store, sales volume and turnover is everything.

Great analogy.:whoopie:

I might go to Orlando in the next few years. I will go to New York and the Caribbean in the next few years. I will hopefully return to Hawaii in the next few years. I will not be going to England, France, or South Africa in the next decade. If there is one week available in England, France, South Africa, or anywhere in Europe for the entire 2011 to 2020 time frame, that is oversupply to me.

Just to prove a point save some of those rare single weeks currently available in South Africa and England and check on them from time to time. Most of the weeks available today in England and South Africa will still be available for exchange next month, and the next. When there is only one available week at a resort, and it is not exchanged for for weeks or months, that is a sign of low supply, but even lower demand.

For comparison check on Florida beach weeks and Orlando weeks at resorts where there is only one or two weeks available and see how long it lasts before someone grabs it. Many are gone in a day or two. Some are gone as soon as they show up. Now that is low supply and high demand.
 
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Where you or I, or any other person, likes to go is of no consequence to supply and demand in the system. Demand is based on the totality of demand in the system from timesharers all over the world, including South Africans wanting to go to South Africa, Europeans wanting to go to South Africa, Europeans wanting to go elsewhere in Europe, etc. Yes, there will always be some people for whom kitsch Europe at Epcot, and kitsch Africa at Disney's Animal World are sufficient, but many want to see the world outside Orlando.

As to South Africa, there are 183 RCI resorts there and enough exchange activity to justify a seperate RCI office dedicated to that one country. When RCI rolled out Points Lite, two of the popular resorts there with US owners, Dikhololo and Mount Amanzi had no availibility. Now after six weeks since 2012 deposits were opened, with many Tuggers reporting the deposits hitting their RCI accounts, there are only 7 availibiities at Dikhololo and 9 at Mount Amanzi. In all 183 resorts in South Africa, there are only 650 availibilities. That is roughly the same as the 630+ weeks availible at Vacation Village at Parkway, ONE resort! VV@P ALWAYS has hundreds of weeks availible. As one Tugger pointed out, RCI was giving 50 points lite for one week there but only charging 10 to trade in to the very same week, over a year out. The value of 10 is what that week was really worth, with the extra 40 being inflated value. But the availibilty charts in the European version of thr RCI Directory really tell the tale. They show South Africa having a much better supply / demand curve than Orlando.

As to England, the winter weeks at the hard to get resorts usually do not last long. My resort usually shows no availibility at all. When I have deposited my summer weeks with any exchange company, they have never hit inventory, as they immediately went to ongoing requests.

Arguing that Orlando is not overbuilt in timeshare is a bit like arguing that the world is not round.


Great analogy.:whoopie:

I might go to Orlando in the next few years. I will go to New York and the Caribbean in the next few years. I will hopefully return to Hawaii in the next few years. I will not be going to England, France, or South Africa in the next decade. If there is one week available in England, France, South Africa, or anywhere in Europe for the entire 2011 to 2020 time frame, that is oversupply to me.

Just to prove a point save some of those rare single weeks currently available in South Africa and England and check on them from time to time. Most of the weeks available today in England and South Africa will still be available for exchange next month, and the next. When there is only one available week at a resort, and it is not exchanged for for weeks or months, that is a sign of low supply, but even lower demand.

For comparison check on Florida beach weeks and Orlando weeks at resorts where there is only one or two weeks available and see how long it lasts before someone grabs it. Many are gone in a day or two. Some are gone as soon as they show up. Now that is low supply and high demand.
 

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While you're probably correct Carolinian, availability only speaks to supply, not demand. If I go to the grocery story and find 6 feet of shelf space top to bottom with Coca Cola, and only a 12 inch space on one shelf for RC cola, does that mean there's an oversupply with no demand for coke vs the opposite for RC Cola? I don't think so. If you think of RCI like the grocery store, sales volume and turnover is everything.

Sorry, but availibility speaks to both. If you can't find something that there have been deposits of, then demand has exceeded supply. No matter what the volume overall, if there is more supply than demand, then that is a weaker trader. If demand exceeds supply, it is a strong trader. That is, if a system is based on supply and demand rather than insider deals.

A retail store is not a good analogy for a timeshare exchange company in the first place. A retail store orders its own stock with its own money based on its own experience as to demand. A timeshare exchange company takes whatever deposits members make, which may often not match what expected demand may be, and they try to balance that in some way, such as with trading power. A timeshare exchange company, using your analogy, might get two bottles of RC deposited for an expected demand of 12 inches of space, five and a half feet top to bottom of shelf space of Coke deposited for an expected demand of six feet top to bottom, and twenty feet of Pepsi top to bottom deposited for expected demand of six feet top to bottom. The real value of each in an exchange system would be based on the relationship of supply (deposits) to demand (exchange requests).
 
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OK so I'm RCI and I get 10 Mt Amanzi's a quarter and I book 9 exchanges, maybe all 10. At the same time I get 400 VV at Pkwy and only book exchanges on 350 of them. Now mind you, I make my money off of the $179 exchange fee. You're telling me that the Mt Amanzi is more valuable than the VV at Pkwy to RCI, who's setting the TPU values. I don't think so.

I have my own business, and I'd be out of business if I applied your logic. BTW I own 3 Mt Amanzi's and would love for you to be right but it defies business logic. Now as to why we only see 9 Mt Amanzi's in the system, I don't know. I'm not clear as to the coordination of RCI and RCI South Africa. I didn't think we're all looking at the same inventory. Aren't most of our South African deposits sent over to RCI SA and with a few kept in the US system for exchanges.
 
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