Best value for 2 bdr units is on the weeks side for exchanges

[philsfan Administrator Find all posts View Profile Close philsfan]

I have noticed that RCI weeks does not charge much of a premium to book a 2 bdr unit as an exchange. Which also means they don't give much of a premium for a 2 bdr deposit. Using the latest Morrits bulk deposit as an example:

Studio 2 (2) Mini Fri 23-Nov-2012 Fri 30-Nov-2012 Exchange Fee 14
1 Bedroom 4 (4) Full Fri 23-Nov-2012 Fri 30-Nov-2012 Exchange Fee 15
2 Bedrooms 6 (6) Full Fri 23-Nov-2012 Fri 30-Nov-2012 Exchange Fee 17

The jump from Studio to 1 bdr is a 7 percent increase, from Studio to 2 bdr it is 21+ percent. The jump from 1 bdr to 2 bdr is only 13 percent.

On the points side:

Studio 2 (2) Mini Fri 23-Nov-2012 Fri 30-Nov-2012 28,500
1 Bedroom 4 (4) Full Fri 23-Nov-2012 Fri 30-Nov-2012 41,500
2 Bedrooms 6 (6) Full Fri 23-Nov-2012 Fri 30-Nov-2012 59,500

The jump from Studio to 1 bdr is a 45+ percent increase, from Studio to 2 bdr it is 108+ percent. The jump from 1 bdr to 2 bdr is 43 percent.

Unless this corrects itself, 2 bdr owners need to consider what is the best bang for your buck before you make a deposit. If your 2 bdr weeks unit is eligible for Points for Deposit and you are a points owner, that could be a better option.

My own 2 bdr deposit is only worth 3 more tpus than the same week in a 1 bdr unit, about 12 percent. The difference on the points side is 33 percent. I will not be depositing it to the weeks side.

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

Of course, this cuts both ways though. If you normally *book* larger units, it may have more value to deposit to Weeks. If you normally *book* smaller units, it may have more value to deposit to Points.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Yup,
Another member was considering depositing her 3BR Williamsburg unit.
Here is what she found...
"For July 4th, RCI gives the 3br a trading power of 37, or 34 for the 2br and 21 for the 1br = 55.

[philsfan Administrator Find all posts View Profile Close philsfan]

Of course, this cuts both ways though. If you normally *book* larger units, it may have more value to deposit to Weeks. If you normally *book* smaller units, it may have more value to deposit to Points.

I don't understand what you are saying. My point was about getting value for your deposit or taking advantage of the smaller premium needed on the weeks side if you need a 2 bdr unit as an exchange.

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

Sorry, I read your post as "I would never deposit my 2BR into Weeks."

There are a couple different situations:

If you are depositing a smaller unit, and typically exchange into larger units, it is probably best to do so through Weeks---unless crossover chart over-values your area.

If you are depositing larger units, and typically exchange into smaller units, it is probably best to PFD---unless the generic crossover chart under-values your area.

If you are depositing and exchanging units that are similar in size, it depends only on the relative values in Points vs. Weeks of what you have vs. what you want.

My own 2 bdr deposit is only worth 3 more tpus than the same week in a 1 bdr unit, about 12 percent. The difference on the points side is 33 percent. I will not be depositing it to the weeks side.

This is only one half of the equation---the supply side. What's more, they are in different currencies. It is possible that, for what you want, depositing the 2BR in Weeks still delivers better value, if your exchange targets have a more favorable TPU assignment than the same targets have in Points via the crossover grid.

[philsfan Administrator Find all posts View Profile Close philsfan]

Sorry, I read your post as "I would never deposit my 2BR into Weeks."

There are a couple different situations:

If you are depositing a smaller unit, and typically exchange into larger units, it is probably best to do so through Weeks---unless crossover chart over-values your area.

If you are depositing larger units, and typically exchange into smaller units, it is probably best to PFD---unless the generic crossover chart under-values your area.

If you are depositing and exchanging units that are similar in size, it depends only on the relative values in Points vs. Weeks of what you have vs. what you want.


This is only one half of the equation---the supply side. What's more, they are in different currencies. It is possible that, for what you want, depositing the 2BR in Weeks still delivers better value, if your exchange targets have a more favorable TPU assignment than the same targets have in Points via the crossover grid.

Using the Morritt's example, after a 2 bdr deposit of that week, an exchange for a similarly priced 1 bdr unit would result in 2 tpus left over. There are very few exchanges available for 2 tpus. By contrast, there would be 18000 points left over after an exchange into a similiarly priced 1 bdr unit on the points side. There are hundreds of exchanges possible in the 7500 to 10000 point range so it is easily conceivable that two more weeks of vacation could be had for the single 2 bdr deposit using PFD. To take advantage you would have to own weeks and points and the weeks unit would have to be eligible for PFD. This is the value proposition I am trying to show with my example.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Using the Morritt's example, after a 2 bdr deposit of that week, an exchange for a similarly priced 1 bdr unit would result in 2 tpus left over. There are very few exchanges available for 2 tpus. By contrast, there would be 18000 points left over after an exchange into a similiarly priced 1 bdr unit on the points side. There are hundreds of exchanges possible in the 7500 to 10000 point range so it is easily conceivable that two more weeks of vacation could be had for the single 2 bdr deposit using PFD. To take advantage you would have to own weeks and points and the weeks unit would have to be eligible for PFD. This is the value proposition I am trying to show with my example.

I am curious, is Morritts Tortuga eligible for PFD? Or are u just using the TPUs as an example?

[philsfan Administrator Find all posts View Profile Close philsfan]

I am curious, is Morritts Tortuga eligible for PFD? Or are u just using the TPUs as an example?

That was just an example because of what I saw on ex-ops as the cost for the different unit sizes. It reminded me that when I investigated my own resort, the tpus offered for my 2 bdr unit were not much higher than a 1 bdr unit for the same week. At this time, the two RCI systems value larger units far differently. Luckily for me, I have options regarding where I deposit.

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

That was just an example because of what I saw on ex-ops as the cost for the different unit sizes. It reminded me that when I investigated my own resort, the TPUs offered for my 2 bdrm unit were not much higher than a 1 bdrm unit for the same week. At this time, the two RCI systems value larger units far differently. Luckily for me, I have options regarding where I deposit.

I think the result will be far few large units deposited in RCI weeks.
Before transparency/points lite, people felt they got a better bang for their buck depositing larger size units.
Now with RCI showing the value (as in your example of Morritts TPUs and my Williamsburg TPUs) it is obvious that spitting units and depositing as two 'haves' is a much better value.....hence less 2 and 3BR units for exchange.

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

Lots of things in timesharing are obvious. It doesn't stop the average owner from ignoring them...

[GrayFal Silver Contributor and supermoderator Find all posts View Profile Close GrayFal]

Lots of things in timesharing are obvious. It doesn't stop the average owner from ignoring them...

LOL, true!

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

I think the result will be far few large units deposited in RCI weeks.
Before transparency/points lite, people felt they got a better bang for their buck depositing larger size units.
Now with RCI showing the value (as in your example of Morritts TPUs and my Williamsburg TPUs) it is obvious that spitting units and depositing as two 'haves' is a much better value.....hence less 2 and 3BR units for exchange.

I don't think this is really anything new. In general, for resorts where there lockoffs, its traditionally been that people lock off to take advantage of getting 2 trades. Look at all the Marriott Desert Springs as an example (I know it's II but the principle is the same).

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

I agree that this isn't something new. When I first was looking to get into timesharing I was advised to really think about whether or not a MF increase in owning a 1 or 2 bedroom (non-lockoff) was worth the extra trade power I would get when depositing - and the answer was usually a resounding no. Studios usually gave a bettr ban g for the buck when depositing. And because RCI didn't require that much more on the exchange side (same as it is now), I always could trade up in size.

Depositing in one side vs. the other and trading in one side vs. the other only applies for people that own in both sides. How many regular Joe Shmoe's have that option?

Also, there are many many resorts that are in RCI Points which eliminates them from the PFD opotion. So if you own a 1 or 2 bedroom non-lockoff you have no choice if you want to deposit into RCI. Weeks is the only way you have to go.

What I am saying is that it's very hard to focus on ONE aspect of the whole game and say THIS is going to result in more or less units OVERALL .... because there is another factor that is acting in the exact opposite way.