Want Tuggers Input: Flex Info

[PaddyMac]

Just got out of a Sheraton Flex Presentation as part of your Owner's update at SVV. We had one in March and held off because of cost, and too many unknowns.

We didn't buy this time either but parts of the presentation was different than in March with new information.

I wanted clarification from what was mentioned on the program to get tuggers input on what was said. As we all know salespeople have a tendency to skew information to ensure a sale.

#1 - SP said that trades into II now are grouped into 2 different categories, deeded weeks and point programs. SP said that with deeded weeks, there is a lot less availability as II is moving all its resorts etc into points programs. So now, with a SVN trader your number of resorts for a deeded week trade is a lot less. She showed us the II directory and showed us (by flipping about a 1/4 of the books pages for illustration) about 25% of the 2500 resorts are only deeded weeks. Meaning our option to trade using II is greatly reduced, hence the need to buy Flex.

Is this your experience in II? Do deeded week trades have a lot less availability?

#2 - SP mentioned a new 'perk' of the Flex program is the Interval Club trading network. The majority of the II trades being points programs is standardized across II's network with TDI index trading ranges. For example if you own an SVR worth 81k SO and trade into II, in order to trade back into SVR you net a bonus in Options. The same SVR 2BR only costs 15-20k SO in the lowest TDI range while the maximum 2BR unit across ALL resorts in II at peak season is only 105,000 options. Meaning if you own a 2BR St. Johns or Hawaii... you could trade through II, with a preferred 'Internal trading' option to trade back into your home resort, effectively saving the difference from 148k to 105k. Within this "Interval Club" you also only need to deposit to II the 'needed' amount of SO's not the entire 148k SO. Under this system our current SOs could be stretched from our current 3 weeks 2BR units to 4-5 weeks in low season and 3.5-4 weeks in mid season under the new FO/HO system.

Is this your understanding of the program? Is this program new? SP told us it was launched the Flex program in January, but our update back then never mentioned it.

#3 - SP was trying to get us to buy into Flex for 4* elite, we are currently 3* elite. One of the perks she said was that only 4 and 5* elites 'now' have the option to get wait-listed for 'sister' SVN resorts. So if I was a 4* elite with no Hawaii ownership, I could request Hawaii, if no weeks were available I would be put on this wait-list and when one came available I would get that week over all other owners 3* and below.

Again never heard of this program. Is this why top requested resorts are becoming less available to 'everyone' else in the SVN network? Is this program new? Or only hearing about it because we are close to 4* and they wanted a sale.

#4 - Of course prices 'always go up'. SP and the Explorer manager confirmed that FO (flex option) pricing was increasing from our offer of 0.347 as of 1 December. Scare tactic, ST. John's doubled in price this year, get in now, but of course not saying it'll double here at SVV (where we are currently).

Anyone else hear that Flex pricing is increasing across the board?

 

[Henry M.]

I don't know much about II, since I never trade my weeks, but regarding point 3, 4* and 5* Elites have always had waitlisting privileges. You can waitlist any resort, even while holding another reservation. I don't know what they mean by sister resorts. I can waitlist any SVN resort, not just one in a particular program.

On point 4, price is always about to go up. They probably aren't even lying. Developer prices do go up regularly, but that doesn't mean resale prices will follow along. You can still get Florida SVN resorts for free from people just wanting to get out from paying a maintenance fee. I also doubt developer prices are going up that much in Florida, since e market is pretty saturated.

Elite benefits are nice perks, but to me they would not be enough to sway me to a purchase. It is more about whether you need the extra timeshare units, and you have the time to use them. It is nice to be able to waitlist, and to have SPG Platinum benefits if you travel enough to be staying in Starwood hotels. However, neither is worth by itself the cost of a new developer purchase. if you want the extra timeshare, and you like the perks, then you might decide to pay the developer, knowing the perks are costing you the extra money paid for a developer purchase over a resale purchase. Only you know if that difference is significant to you or not, or whether waitlisting is worth it to you.

 

[SmithOp]

Regarding #1, the only decrease in available weeks will come from owners like yourself that they convince to trade in your deeded week for the flex trust.

Did the Interval book only show SP properties, or all? That was devious holding 25% of the pages since there are lots of non SP properties in Interval. I just got an e-mail assuring me that nothing will change with regard to RCI or Interval affiliation with the recent ownership changes, so there will remain lots of trading opportunities for my deeded week, I'm not concerned about Flex.



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[tschwa2]

I think the numbers he gave are wrong. I doubt more than 25% offer a points based exchange through II. And even those that do most owners at those resorts still exchange through weeks rather than points with the exception of the systems like Hyatt and most DRI II exchanges that are mostly points based ownerships. All the Marriott's would be listed at points but very few owners exchange though II using points. Right now the only SVN members that exchange through points would be the new phase of WSJ and the flex trust owners.

At this point II doesn't make separate available inventory by points or weeks. It's the same inventory for everyone. I think that is primarily because you would see so many fewer resorts if only points inventory was available for those that exchange using points. At some point that might change if II gets enough systems into exchanging using a grid system for points and/or gets enough other resorts to convert to Club interval Gold. Despite almost 10 years of offering points II has not really made that much headway.