Does anything gets anything end up in Dogs?

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

I just went to the DAE Live website. I checked availability for all of 2007. It appears that someone has figured out that they could dump all of their bad inventory into DAE and pluck out anything of value.

Check out how much availability there is for Silver Lakes Vacation Club. I don't know anything about that resort, but I doubt its equivalent to the Maui Ocean Club.

As those units expire without anyone exchanging for them, the exchange credit imbalance will mount. In other words, an exchange credit will be due the depositer, but there will be no unit in the system matching that deposit.

What makes it worse is that DAE is stuck on the archaic principle that they can only rent to timeshare owners. Well, that significantly restricts the market for those dogs weeks and so they will not even be able to rent many of them so that they could rent something else to insert it back into the system to help relieve their exchange deficit.

Worse yet, deposit credits are good for 3 years. So, in any 3 year window, there could be a huge exchange credit deficit vs. deposits available.

It is possible that DAE has developers who will deposit weeks into their system for free. If they do, that will help reduce the exchange deficit. I wish DAE would publish their exchange credit/deficit balance sheet. That will tell us the health of their exchange system. Until then, I will continue to assume that that system is a ticking timebomb for timeshare exchangers.

I don't buy the argument that they have a request list that works effectively. I'm sure it works early on, but as time goes on and as there are tons of requests for the best resorts based on deposits made long ago, it will become impossible to get anything decent.

Why would anyone put anything decent into DAE? Time will tell if the DAE business model can continue to succeed.

[timeos2 Senior Member Find all posts View Profile Close timeos2]

Put in junk, take out good, all the junk left behind

Why would anyone put anything decent into DAE? Time will tell if the DAE business model can continue to succeed.

Great question. I think you have the answer already - they don't - which is why an "all you can eat" exchange quickly becomes nothing but unwanted weeks with owners looking to trade up. It is not s sustainable model from what I can see. There are landfills and junkyards because at some point even the street people walk away and leave things for the trash personnel to dispose of. If any exchange company is willing to take anything in and give up to the best they have out in exchange they will eventually become the junkyard of timeshares.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

If it only come out from exchanger

Than, it is true. But quite a few inventories is come from different source. Just check the Asia area or Ontrio area.

2nd. They are a small exchange company in the whole exchange world. They need to gain market access. If they are WMart of the exchange company, then yes, they may have problem to continue this model. But they are not.

3. You can ask them to exchange to their hotel side partner. Are they in high demand season? maybe no, are they in a desirable time? Some yes. So it is upto them to compensate their hotel side partner. But they can definitely get some value weeks

RCI just have a fall sell at $250. They way I see it, if I deposit my TS, plus my exchange fee, if I do an exchange with RCI for a fall week, I actually will take some loss. I know BG deposit probably can cover. But the fact is, the TS at this moment are dog most of the time although I think they are undervalued. However, all exchange company seems like can cover themselves. It is beyond me. Just like with internet, most of people post in Tug or here believe there is no way TS can continue doing the high pressure selling, yet, they continue grow at 10% or better year in year out, while resell price continue to go down, so logic thinking in TS? It may not work.

Jya-Ning

[Hostelling Senior Member Find all posts View Profile Close Hostelling]

I would hope that like many exchange companies they have the ability to purchase inventory from other exchange companies and from ARDA members.

How they dispose of non moving inventory, without the rent option, is a good question. Maybe the give them to employees as christmas bonus

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

1. Renting exchange deposits to the general public is a betrayual of members trust and tanatamount to fraud. RCI is deservedly in the process of getting nailed for that in the federal courts. A closed exchange system works - it made Cristel deHaan rich. It is NOT an ''archaic principle''. Where does much of the best inventory go at RCI - rented out to Joe Sixpack for cash to put in RCI's pocket!

2. The DAE system is proven to work for the long term from their success in Australia, and they are not the only exchange company to use it successfully there. Interchange, which has been around longer than DAE, uses it, too.

3. In any exchange company the best inventory often gets taken by ongoing requests and never appears online, and DAE is no different.

4. If you want to judge the quality of some of the inventory that goes through DAE, look at the DAE sightings board here plus the old one at Tips.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

I would hope that like many exchange companies they have the ability to purchase inventory from other exchange companies and from ARDA members.

How they dispose of non moving inventory, without the rent option, is a good question. Maybe the give them to employees as christmas bonus

It is absolutely possible for an exchange company to purchase inventory to put into their exchange system. However, where does the money come from? If they are able to rent their last minute inventory to a broader market, there would be less expired inventory and more $ to purchase inventory.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

1. Renting exchange deposits to the general public is a betrayual of members trust and tanatamount to fraud. RCI is deservedly in the process of getting nailed for that in the federal courts. A closed exchange system works - it made Cristel deHaan rich. It is NOT an ''archaic principle''. Where does much of the best inventory go at RCI - rented out to Joe Sixpack for cash to put in RCI's pocket!

I disagree. It is NOT a betrayal to members if an exchange company rents to the general public. It IS a betrayal to members if an exchange company fails to keep a fair and balanced deposit and exchange balance sheet.

It is possible to rent to the general public and maintain a fair system. Renting to the general public in and of itself is not a betrayal of any kind. It's how the company conducts the rental program that determines the degree of betrayal.

And, it is easy to envision a weeks exchange system without trading power rules to become unstable. If it does become unstable and there exists a very large exchange deficit, then that is the biggest betrayal of all to members.

I am NOT saying that this is indeed happening to DAE. I believe DAE to be a good and honorable company. What I am saying is that if they went public, I wouldn't buy their stock.

The online availability difference between when I looked last year vs. today is dramatically worse. Implying that that doesn't matter is like arguing that the Florida real estate market for residential homes will not be effected if the condo market collapses.

[BocaBum99 Super Moderator Find all posts View Profile Close BocaBum99]

2. The DAE system is proven to work for the long term from their success in Australia, and they are not the only exchange company to use it successfully there. Interchange, which has been around longer than DAE, uses it, too.

I'll take your word for it that DAE is very successful in Australia.

If I lived in Australia and if I had a George Soros streak in me, here is what I would do. I would create an exchange company that served both the US and Australia market. I would join CARE.

I would go to the DAE Live website and I would write down all of their dog inventory.

I would then buy it all up for $50/week through the CARE procedures.

Then, I would through a network of US members redeposit those weeks into DAE.

Then, I would exchange for all the great Australian weeks available. I would find a CARE loophole that allowed those members to re-assign the inventory back to my exchange company.

I would then take all of that inventory and offer it to the general Australian market as rentals at $250/week.

That's what George Soros would do.