I mistakenly thought this might have something to do with exhanges... isn't that the business they are supposed to be in? Seems all they care about now is renting out weeks.
Ever since I got involved with timeshares about nine years ago, and figured out the overall process, I concluded that general rentals would likely be a part of the business plan for any rental company - certainly any company that I would start.
There's just too big a gap in value between vacation condos and hotel rooms - savvy entrepreneurs will take advantage of that spread, and exchange companies are better positioned to do that for timeshares than any other entity.
In the whole ownership market, ResortQuest is a major player. I think Wyndham is moving to try to compete with ResortQuest - one thing Wyndham is doing is allowing FairShare owners to put up theur units for rental on Expedia.com and Hotels.com. If that works out, owners should come out money ahead on rental even after giving up 35% of the gross because they should be able to get rates that are closer to resort general rental rates.
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Over time the gap in value between condo and hotel rooms is going to shrink; IMHO fighting that is simply tilting at windmills. If you don't like exchange companies trying to fill some of that gap, it would be good to consider whom else you might end up battling.