Tweet
Talking with resort managers while on an exchange can yield interesting information on the functioning of the exchange system, such as the resorts relationships with the exchange companies.
Recently on an exchange in Europe, for example, I learned that resorts there are required to annually deposit to RCI a certain number of weeks from the resort itself, over and above what their members may deposit. If a resort did ever truly sell out, with no weeks back as foreclosures or deedbacks, I do not see how they could do this. It would appear to always require a resort to keep a certain number of resort-owned weeks in order to supply these deposits.
I suspect that most resorts would deposit such weeks at the same time, which would temporarily change supply / demand curves such like a bulkbanking. At the resort I was at, the manager told me there were typically quite a few more deposits made to satisfy the RCI requirement than were made by their own members. Those proportions may not be true for all resorts as this resort had a rather low rate of participation in exchange by members.
In the Caribbean on the other hand, I have been told by a resort manager that resorts have to pay the big exchange companies, RCI and II, an annual fee to participate in their exchange program. This is a fee paid by resorts over and above membership fees of individual members. He was personally very suspicious of RCI Points but said that his resort dual affiliating with II would cost too much in terms of the annual fees the resort would have to pay to both.
Resorts in the US do not have either requirement. They do not have to deposit resort-owned weeks and they do not have to pay an annual fee to RCI or II.
Recently on an exchange in Europe, for example, I learned that resorts there are required to annually deposit to RCI a certain number of weeks from the resort itself, over and above what their members may deposit. If a resort did ever truly sell out, with no weeks back as foreclosures or deedbacks, I do not see how they could do this. It would appear to always require a resort to keep a certain number of resort-owned weeks in order to supply these deposits.
I suspect that most resorts would deposit such weeks at the same time, which would temporarily change supply / demand curves such like a bulkbanking. At the resort I was at, the manager told me there were typically quite a few more deposits made to satisfy the RCI requirement than were made by their own members. Those proportions may not be true for all resorts as this resort had a rather low rate of participation in exchange by members.
In the Caribbean on the other hand, I have been told by a resort manager that resorts have to pay the big exchange companies, RCI and II, an annual fee to participate in their exchange program. This is a fee paid by resorts over and above membership fees of individual members. He was personally very suspicious of RCI Points but said that his resort dual affiliating with II would cost too much in terms of the annual fees the resort would have to pay to both.
Resorts in the US do not have either requirement. They do not have to deposit resort-owned weeks and they do not have to pay an annual fee to RCI or II.