Why is there a cost for converting "weeks" to RCI "points"?

[Ace]

I have learned that there is a difference between "weeks" weeks and "points" weeks. I am referring to RCI points here. If you buy a "weeks" week, RCI says there will be no points for it unless it is converted to a "points" week.

It looks like it is possible to convert "weeks" weeks into "points" weeks and then get RCI points for those weeks. But for some reason it seems to cost a lot of money. I am not really sure how much - I have seen references to around $2500 and other references to much more than that.

I am interested in knowing why it costs so much to do this. If the resort is an unknown quantity, I can probably understand, because RCI probably needs to do some leg work to evaluate how many points the unit is worth. But some of the resorts (Grandview Las Vegas, for example) have both "weeks" weeks and "points" weeks, and the units are all the same. The several buildings seem all the same. RCI already knows what these units are like and what they are worth. I think there is even an RCI office on site.

Unless this becomes free or low cost (depending on the resort and how much work RCI has to do, I suppose), the best thing to do on the resale market is to make sure the ads say the units are "points" weeks. But in shopping for a resale unit, there are some great deals for what looks like "weeks" weeks (including at resorts such as Grandview where they have both types of weeks).

So does anyone know why this costs so much? Has anyone ever done it? How about at Grandview? What does it cost to convert a unit there?

 

[DeniseM]

There is a cost, because it's a money maker - they charge you because they can.

There are a lot of free timeshares out there that are already converted to points - I would not consider paying the conversion fee.

 

[theo]

I have learned that there is a difference between "weeks" weeks and "points" weeks. I am referring to RCI points here. If you buy a "weeks" week, RCI says there will be no points for it unless it is converted to a "points" week.

It looks like it is possible to convert "weeks" weeks into "points" weeks and then get RCI points for those weeks. But for some reason it seems to cost a lot of money. I am not really sure how much - I have seen references to around $2500 and other references to much more than that.

I am interested in knowing why it costs so much to do this. If the resort is an unknown quantity, I can probably understand, because RCI probably needs to do some leg work to evaluate how many points the unit is worth. But some of the resorts (Grandview Las Vegas, for example) have both "weeks" weeks and "points" weeks, and the units are all the same. The several buildings seem all the same. RCI already knows what these units are like and what they are worth. I think there is even an RCI office on site.

Unless this becomes free or low cost (depending on the resort and how much work RCI has to do, I suppose), the best thing to do on the resale market is to make sure the ads say the units are "points" weeks. But in shopping for a resale unit, there are some great deals for what looks like "weeks" weeks (including at resorts such as Grandview where they have both types of weeks).

So does anyone know why this costs so much? Has anyone ever done it? How about at Grandview? What does it cost to convert a unit there?

Fwiw, "weeks" weeks can only be converted to RCI "Points" weeks at resorts which even have RCI Points ownerships. In other words, if a RCI resort is strictly weeks (i.e., no RCI Points ownerships there, as is exactly the case at every one of our RCI-affiliated resorts), no option to "convert to RCI Points" even exists there at all (...which is of no particular concern to us, as we chose, like and use our very specific fixed weeks and units and we have no interest at all in RCI Points).

As Denise has noted already, "conversion" is essentially a cash cow for a resort when people somehow willingly pay $2,500 -- $4,500 to convert a week (... a week that they already own outright is a fact perhaps worthy of note here ), just to "convert" to RCI Points. For that reason, it is generally recommended that if you really want RCI Points, then just find and buy a resale week already "converted" to RCI Points --- at someone else's expense. They are always available --- often for peanuts.

One benefit to RCI "Points weeks" from a resort standpoint (besides the cash ) is that even "doggy" weeks can attain some value (the points) if in RCI Points, which can be "spent" somewhere else. It's not a bad way for a resort to create and impart some value and demand for "dog" weeks which are (without the points) of little or no demand and which sometimes couldn't be given away for free. The RCI Points have their own inherent value for use elsewhere, and once the "converted dog week" is purchased, that RCI Points deed owner is on the hook to that resort for annual maintenance fees, whether or not s/he ever chooses to even set foot on the property.

"Conversion" to RCI Points will never be low cost or free. As noted already, conversion is a "money rain maker" for a resort (not so much for RCI, but for the resort).

 

[vacationhopeful]

I have RCI Points because I brought deeds where the prior owner paid THOUSANDS of $$$ to convert to RCI Points. Mostly I paid ONLY a $1 for each deed.

And at a resort where I definitely USE the Home Resort booking window.

 

[theo]

I have RCI Points because I brought deeds where the prior owner paid THOUSANDS of $$$ to convert to RCI Points. Mostly I paid ONLY a $1 for each deed.

And at a resort where I definitely USE the Home Resort booking window.

Yeah, but you're "smarter than the average bear" anyhow Linda (...if I may borrow a line from Hanna Barbera / Yogi Bear).

 

[Passepartout]

Ace, you will find that anything RCI CAN charge members for, they will.

 

[DeniseM]

Just to be sure you know, you don't have to convert to points to trade with RCI. You can trade your week in the RCI TPU system.

 

[theo]

Ace, you will find that anything RCI CAN charge members for, they will.

Certainly true, but in the matter of "conversion" to RCI Points, it's not RCI deriving any benefit from the $2,500 -- $4,500 "conversion" fee, it's really only the resort.

As I understand things, RCI only charges a resort a few hundred bucks to "enroll" in the RCI Points program to begin with, but none of the later "conversion" cash ever goes to RCI (or ever leaves the resort for that matter, except for a commission chunk paid to hired marketing guns, if / when a third party entity is hired by the resort to "peddle the points product" to existing owners).

That's how it worked at a place where we sold off our 1 week there 2 yrs. ago, although our departure was not in any way related to their recent adoption of RCI Points. Our exit was to bid adieu to a stunningly inept and intransigent resort Board whose odd decisions (IMnsHO) had just become too strange, troubling and unpredictable.

 

[Gaozhen]

I recently spoke to RCI to ask about withdrawing a unit from points and see how hard it would be to re-enroll (decided not to pursue, silly question, but was still curious), and they said the unit owner's cost to convert to points was overwhelmingly up to the resort, and that RCI only charged a few hundred dollars (based on the number of points/bedrooms or some such formula).

Certainly true, but in the matter of "conversion" to RCI Points, it's not RCI deriving any benefit from the $2,500 -- $4,500 "conversion" fee, it's really only the resort.

As I understand things, RCI only charges a resort a few hundred bucks to "enroll" in the RCI Points program to begin with, but none of the later "conversion" cash ever goes to RCI (or ever leaves the resort for that matter, except for a commission chunk paid to hired marketing guns, if / when a third party entity is hired by the resort to "peddle the points product" to existing owners).

That's how it worked at a place where we sold off our 1 week there 2 yrs. ago, 'tho our departure was not in any way related to the recent arrival of RCI Points there. Our exit was to part company with a stunningly inept and intransigent resort Board whose odd decisions (IMnsHO) had become too strange, troubling and unpredictable.

 

[rickandcindy23]

I recently spoke to RCI to ask about withdrawing a unit from points and see how hard it would be to re-enroll (decided not to pursue, silly question, but was still curious), and they said the unit owner's cost to convert to points was overwhelmingly up to the resort, and that RCI only charged a few hundred dollars (based on the number of points/bedrooms or some such formula).

That's true. RCI charges $199 (at least that was the charge 4 years ago), but the resort charges whatever to get it done.

This is why I bought several weeks at Presidential Villas that would get me 105K points per week and paid the fee to convert all at once. It was $3,000 total and made those weeks priceless. RCI Points' inventory is extensive compared to weeks. There is a vast difference for Hawaii, that's for sure. I love Wyndham Shearwater and stay there much cheaper than my MF's for the same exact thing.

 

[gdstuart]

Ace, you will find that anything RCI CAN charge members for, they will.

Freely substitute for the word "RCI":

Hyatt
Marriott
Hilton
Wyndham
Starwood...

Get the picture?

 

[gatorray]

Developers keep pushing the points

There is a cost, because it's a money maker - they charge you because they can.

There are a lot of free timeshares out there that are already converted to points - I would not consider paying the conversion fee.

We just had a very nice week at our resort and we were invited to an owners forum. In the past we were invited to a wine and cheese owners gathering. Since we have heard several presentations trying to sell us destination points, we questioned the format of the owners forum which was to be a "sit down breakfast". There was no one-on-one sales pitch but is was billed as a general PowerPoint presentation to a group of owners. Leary of spending our valuable vacation time at yet another sales presentation/preview we were hesitant but the 25,000 Marriott reward points sucked us in. Well, it wasn't a one-on-one except for the first 15 minutes when a junior sales person came to our mini-table where we had seated ourselves after getting our buffet breakfast ( get it? A sitdown breakfast). She, of course pumped us for all of our demographics to determine exactly how much money we were going to spend following the PowerPoint presentation by not one but three different individuals. There's a super slick starched white shirt weightlifter guy followed by a fast talking lady who gave us her own personal history ad nauseum, followed by a young woman who went through her part of the spiel. All of the information presented could be readily viewed on the continuous television program in our villa. It's the default channel when you turn on your TV, of course. Every time we are offered a preview, when it is honestly described as a preview, we have generally declined. The sales people do not hear the word no thank you and therefore they change the format and call it something different. Given our personal preferences to use the deeded weeks we paid for and only occasionally exchange the lock off for another week at our home resort as we have no interest in safaris, cruises and the like. Given physical limitations of my spouse, we simply do not have the capacity to participate in things that 30 and 40-year-old customers might enjoy. We make it clear but it falls on deaf ears. When the presentation was over, we were expected to remain seated and spend another 30+ minutes with one of the sales people. At that point I stood up, announced we were leaving because we had seen the show and they acted surprised. I made sure that those points were being added to our account. I was given a receipt and I did sign in. We even had a place card with our name at our table. While we enjoy our two resorts and plan on returning with our family, we have zero interest in spending an average of $35,000 (their figures) for the privilege of converting one of our weeks to points. We purchased our weeks 10+ years ago and feel that we are now finally getting payback for all of the excess cash we gave the developer. So, unless you enjoy hearing the same things over and over again, don't be fooled when they rename the preview "an owners forum" or some such name. They are simply trying to extract more cash out of you. My opinion of Marriott declined quite a bit when they stopped selling deeded weeks, building new resorts and now try to get more money out of owners who already purchased their weeks. Fortunately, both of our resorts have excellent boards of directors and many weeks owners. If/when that changes, we may be less inclined to remain owners and sell. Hopefully that will be at least another 10 years. for now, we are content with what we own and feel that finally we are getting full value for our vacation dollars. As I tell my family and friends, timeshare ownership is not for everyone. It never was and never will be.

 

[Lansdowne]

Good post - We always go to the owners forum for the points and free OJ. Actually right now we are interested if they have a clue on the changes to the Marriott and Westin (Vistiana) system. Bottom line they don't have a clue and many of these sales folks are not in a good mood because they have a product to sell that is pricey and they are not experienced enough to handle tough questions. We agree that TS is not for everyone - you really have to work the system to get good value. Feel real bad for some older owners that are lost in the process - almost criminal when the sales people try to sell them points!