Where should SFX add more resorts?

[taffy19 Gold Contributor Find all posts View Profile Close taffy19]

Can a resort legally prohibit the use of a particular exchange company?

I guess they can if it is a trust. You don't own a deed in that case so it isn't real estate

PS. eal, nothing was edited in your post. I meant to answer your post but clicked the wrong button by accident. Sorry about that.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

I guess they can if it is a trust. You don't own a deed in that case so it isn't real estate

PS. eal, nothing was edited in your post. I meant to answer your post but clicked the wrong button by accident. Sorry about that.

That is one of the big reasons I would never own anything in a trust or points arrangement. Also nothing where it is the developer rather than the members which is in control.

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

DRI resorts in the UK might be a tough one. I don't know about the UK trust's but, in the U.S. both THE Club and the DRI trusts prohibit using any exchange company except for I.I.

DRI has recently established a trading relationship with Hapimag, so why would they not consider SFX as well?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Mark, I think SFX's interchange with members is a very postive refreshing posture for an exchange company, and is something that puts SFX head and shoulders above the big boys. Members and the exchange company have a common goal of achieving more exchanges.

I realize that many resorts in Europe do have some quality issues, and that is why I selected the specific resorts that I did, none of which I own at but several of which I have exchanged into, and I think measure up as to quality. Schloss Grubhof is a former palace that belonged to the Bavarian royal family and its decor and furnishings exceed most luxury resorts. Chateau de Maulmont was largely rebuilt by the sister of King Louis Phillipe of France in the mid 1800s and is also today maintained to a high standard. Facilities that were once fit for royalty should certainly be fit for timesharers. I have not suggested Chateau Country Club de Tredition, which although an interesting building does have maintainance issues.

I take it from your answer that SFX already has access to DRI and Hapimag resorts. If I am reading your answer correctly, this is a big plus. There are several Hapimag resorts that look very interesting.

GrayFal and others... you have it essentially correct. It is a "Quality Issue".

We can access any of the timeshare resorts in Europe that Carolinian mentioned. Some of them we already do, but unfortunately most of them are not of the quality that meet the expectations of the SFX member base. In many cases regarding Euro exchanges, we advise our member's to stay in a nice hotel so they can be exactly where they want to be, and use their Timeshare for another trip or location where a certain level of quality can be assured.

European timeshares have been built for their market with regards to size and quality of the units. Unfortunately a large percentage Euro timeshares are quite "bleak and sparse" on the inside, almost like low-income housing. Even some of the castle /palatial properties... they are beautiful on the outside, and typically have a grand lobby. But when you read "reviews", there are complaints of very sparse, poorly equipped and tired interiors.

And if you are spending all that money to fly to France, and investing all that time and effort for a special trip that may only be once or twice in a lifetime... do you really want to stay in the suburbs of Paris, in a very average quality apartment building and take a 30 minute train ride to be where you really wanted to be, "Paris" central? Or do you feel for a trip like this, you would rather stay in a hotel and use your timeshare in a place where you will get more out of it?

Sometimes it can be well argued that if the quality of a property isn't a 5 star timeshare rating (as an example), but it's a solid 3-4.... but it's in a 5 star location that has no or few other properties, then that should be considered as an acceptable exchange. But... unfortunately there are too many properties that are in undesirable locations and substandard quality to meet the expectations of US and Canadian owners of quality timeshares. (which is predominantly the SFX Member base).

We would rather specialize in a certain level of quality, not quantity. And this is what separates us from other exchange companies.

Some places are great for a timeshare exchange... others, your needs may be best served with a hotel.

Hope this insite helps...

Thanks,
Mark @sfx
Member Communications

[Mark @SFX Industry Representative Find all posts View Profile Close Mark @SFX]

I guess they can if it is a trust. You don't own a deed in that case so it isn't real estate

PS. eal, nothing was edited in your post. I meant to answer your post but clicked the wrong button by accident. Sorry about that.

This actually raises some "interesting" questions.

If you are part of a Club, and the inventory you have "usage-rights" to is in a "Trust", then by all means for internal exchange purposes there is no need to go to a third party external exchange service.

But... what if the "Trust" dictates for external exchanges, you can only go through the "Trust" to use the services of a third-party external exchange company (maybe one of the big 2).

Is this a violation of any Federal and/or State Antitrust Laws?

For example, The Sherman Act, although Federal is also the model used by all States for their Antitrust statutes. Service is a distinct and separate market from product.

If you look up The Sherman Act, you will see it is unlawful to have a "Tying" relationship, whereby a company that sells a product ties you (forces you) into using the service of a specific servicing entity, rather than giving you the consumer the choice of choosing who you want for service. This is why when you buy a car, it is unlawful for the dealership to tell you, you can only use his cousin Vinnie for service. You have the right to take your car anywhere for service.

Therefore... if the "Trust" does not allow you to use an exchange company (servicing entity) of your choice, and "ties" you into just one exchange company for service, is that not a violation of the Sherman Act because the end result "Ties" you the consumer into the service of one company?

Does this also create a "Restraint of Trade, monopoly, territory division, boycotting, restriction of competition, and as a result price fixing? (All items covered in the Sherman Act).

I am not an attorney and do not have any definitive answers to these "questions". But these questions should be asked.

On a side-note... If within your membership rights you are allowed to assign your time to a guest and/or a renter... could you not assign your week/points to a "company" to find a guest or a renter for you? Could you not charge your guest $1 for staying at your place, and they would charge you $1 for staying at their resort??

Are there any attorneys out there with a good knowledge of Federal /State Antitrust Laws who could shed some more light on this topic?

Just thinking out loud.

Thanks,
Mark @sfx
Member Communications