Tweet
The new RCI ''enhancements'' which put rentals and exchanges right on the same page will further stampede those who own blue weeks to trade off season out of timesharing, or at least out of multiple week ownership.
When RCI trashed the 45 day window for Weeks owners by opening it to Points owners and rentals, they already kicked this group in the teeth. Suddenly the 45 day window goodies were going to other people.
Now, when these owners add up their m/f and exchange fee, even without the RCI membership fee, they are seeing many of the weeks they could trade into being rented by RCI for less. They even probably see some weeks that they would not even be able to trade for rented for less than m/f plus exchange fee.
Some of these owners bailed after the 45 day window was trashed. More will bail now, and not at a good time for resorts. Some will keep one week to keep a foot in the door to keep their membership and be able to get the cheap rentals, but some will figure out that they can keep paying their RCI membership without even doing that.
At the OBX resort at which I served on the board, ~15% of blue weeks were owned by multi-week traders when I first went on the board and had dropped to ~10% of blue weeks when I went off the board. The largest single owner of weeks, for example had one red week, one white and five blues and traded all of them. He and his wife had a wholeownership condo on the OBX and when they came down that is where they stayed. The timeshares were simply for trading as they were retired and could travel on short notice. They mainly played the 45 day window, but when that played out, first dumped the five blue weeks, then the white week, and finally the red week. For the HOA's sake, fortunately, he sold all but one of those weeks rather than deeding back. Looking at the OBX deed transfers, I noticed that he also had 5 or 6 other blue weeks at other OBX resorts, also all sold or deeded back about the same period. Another owner of four blue weeks who trades them with RCI and lives on the other side of the country and has probably never even set foot on the resort property, has also had all of his weeks up for sale ever since the 45 day window went south. They are still on the market, and I assume he is paying m/f's.
Resorts need to recognize what is coming at them, or rather what RCI has set in motion against them. They need to figure out other markets for the blue weeks that have been traded, especially those held by multi-week owners. Part of that might be encouraging use of other exchange companies, but a more solid bet is finding non-exchange markets for them.
When RCI trashed the 45 day window for Weeks owners by opening it to Points owners and rentals, they already kicked this group in the teeth. Suddenly the 45 day window goodies were going to other people.
Now, when these owners add up their m/f and exchange fee, even without the RCI membership fee, they are seeing many of the weeks they could trade into being rented by RCI for less. They even probably see some weeks that they would not even be able to trade for rented for less than m/f plus exchange fee.
Some of these owners bailed after the 45 day window was trashed. More will bail now, and not at a good time for resorts. Some will keep one week to keep a foot in the door to keep their membership and be able to get the cheap rentals, but some will figure out that they can keep paying their RCI membership without even doing that.
At the OBX resort at which I served on the board, ~15% of blue weeks were owned by multi-week traders when I first went on the board and had dropped to ~10% of blue weeks when I went off the board. The largest single owner of weeks, for example had one red week, one white and five blues and traded all of them. He and his wife had a wholeownership condo on the OBX and when they came down that is where they stayed. The timeshares were simply for trading as they were retired and could travel on short notice. They mainly played the 45 day window, but when that played out, first dumped the five blue weeks, then the white week, and finally the red week. For the HOA's sake, fortunately, he sold all but one of those weeks rather than deeding back. Looking at the OBX deed transfers, I noticed that he also had 5 or 6 other blue weeks at other OBX resorts, also all sold or deeded back about the same period. Another owner of four blue weeks who trades them with RCI and lives on the other side of the country and has probably never even set foot on the resort property, has also had all of his weeks up for sale ever since the 45 day window went south. They are still on the market, and I assume he is paying m/f's.
Resorts need to recognize what is coming at them, or rather what RCI has set in motion against them. They need to figure out other markets for the blue weeks that have been traded, especially those held by multi-week owners. Part of that might be encouraging use of other exchange companies, but a more solid bet is finding non-exchange markets for them.
Comment