New RCI Fees announced

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

I'm in the process of buying a Fairfield point package at Ft. Lauderdale Palm-Aire which is one of the Fairfield resorts that will exchange with SFX. If I ARP the week, I will have almost 3 years to do the exchange.

RCI keeps inching up their fees for week exchanges closer and closer to their Last Call weeks and One on One weeks.

The RCI points fees will probably be next. Look out!

It looks like the stand alone separation from the Cendent groups is having RCI look at how to make more money.

I have FF points and usually exchange thru RCi when I exchange. The problem with exchanging a FF property thru SFX or other independent is that you have to book a week with your FF points first and that usually coast you more than you have to use to deposit a trader in RCI.
For instance at Palm-Aire if you want to book a 2BR red week to deposit with SFX (to make sure you have a good trader you will need to use anywhere from 175K to 210K to book your FF Palm Aire 2BR red week that you will use to deposit. To make a 2BR RCI red deposit it cost you 154K points and usually you can get away with depositng a 1BR red at which will cost you 105K and will usually trade just as well. SFX does have some nice properties and RCI trades seem to be getting harder to get, but I have so far been able to get most of the trades I have wanted and my FF points will get me a lot more weeks than going the other way.
Don't get me wrong, I am very frustrated with the fee raises and the smaller number of trades showing up on RCI but as a Fairfield points owner it is still more economical than going to the smaller companies like SFX unless they have something I really want.

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

We need to encourage our resorts to help get the word out on the independents. It is to their advantage, as fees at RCI are getting to the level they may start causing some owner bailouts. Giving members a reasonably priced alternative helps keep them happy.

At least two independents, DAE and Platinum, will actually reimbursement the resort for the postage for its newsletter if they will enclose a brochure from the exchange company. Doing this for both companies will save the HOA postage for two newsletters. That is a win/win for everyone.

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

This is very disappointing. I will also be using other trading companies more often.
Connie

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

Three years ago, RCI trade fees were only $129

I paid $129 for summer of 2003.

I have no idea when it jumped to $149, but it did make a jump to $139 very soon after that 2003 exchange.

RCI thinks we will just get used to the new price. $15 is not going to stop many, I guarantee it. The more weeks you own, the less it hurts to pay that extra $15 because the annual membership fee is $89 -- $99 for points.

Carolininan, some of us own at resorts that do not think we can trade with any other companies. They sign these exclusivity contracts with II and RCI and believe that we cannot use others for our exchanges. It is sad but true. Twin Rivers is one of those. I am on the board there and cannot convince anyone that our exclusive contract with II does not mean that we cannot use other companies.

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

ken H

You are right with regard to FF exchanges. You will have to pay full price with points to get the preferred trader for SFX. It will be interesting to watch whether the low/lower point deposits in RCI will continue to be good traders for FF owners. As you know, FF is eliminating the ability to make an ARP deposit into RCI. FF has a very limited number of on line low point (blue) studio deposits to put into RCI. It seems that more and more barriers are being put up to limit FF owners' flexibility in using RCI.

I think a FF owner using an alternate exchange like SFX will have to take into consideration the "cost" of the desired exchange location. However, if the desired resort is not part of RCI, then using the full points to exchange a 1br or 2br through SFX makes more financial sense than purchasing a qualifying II resort for trading purposes.

I appreciate your thoughts.

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

I paid $129 for summer of 2003.



Carolininan, some of us own at resorts that do not think we can trade with any other companies. They sign these exclusivity contracts with II and RCI and believe that we cannot use others for our exchanges. It is sad but true. Twin Rivers is one of those. I am on the board there and cannot convince anyone that our exclusive contract with II does not mean that we cannot use other companies.

I would ask for an advisory opinion from the anti-trust division of the state Attorney General's office and also of the state Real Estate Commission (the body that in most states oversees timeshare exchanging). Resorts that do what you are describing are engaging in monopolisitic practices.

On the OBX, all resorts freely accept use of independents by their members. Some have even mailed out brochures of the independents with their newsletters.

The consumer protection laws of the state where the resort is located may also give members some remedies against these monopolistic practices. In North Carolina, a member denied the ability to exchange with an independent could sue the resort for treble damages plus attorney's fees. A mere letter from an attorney threatening to do that would probably jerk most resorts into line.

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

Why am I not surpised.

I don't know why everyone is surpised about this. Someone has to pay for the big attorney fees to defend against some lame class action lawsuit. I might just as well be consumers.

Short

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

I would ask for an advisory opinion from the anti-trust division of the state Attorney General's office and also of the state Real Estate Commission (the body that in most states oversees timeshare exchanging). Resorts that do what you are describing are engaging in monopolisitic practices.

On the OBX, all resorts freely accept use of independents by their members. Some have even mailed out brochures of the independents with their newsletters.

The consumer protection laws of the state where the resort is located may also give members some remedies against these monopolistic practices. In North Carolina, a member denied the ability to exchange with an independent could sue the resort for treble damages plus attorney's fees. A mere letter from an attorney threatening to do that would probably jerk most resorts into line.

An exclusive agreement between certain exchange companies and a Resort (Developer and/or Association) means the Developer or Association will not endorse or promote the services of any other exchange company. It does NOT prohibit the individual Owners Legal Rights of requesting any company they want for service.

It is clearly defined in Legal Documents your Timeshare purchase is "Separate and Distinct" from the use of an exchange company. In other words, under the Sherman Act and Clayton Act, (Federal Anti-Trust Laws) I believe it is illegal to create a Tying Relationship between a product that is separate from a Service. Service is an independent entity. Just like with buying a car from a dealer... it is unlawful for them to force you into using the service of any specific company; It is your choice, and it's no different with a Timeshare.

States have their own Anti-Trust laws in addition to Federal. The State laws use primarily the Federal Sherman Act and Clayton Act as the model.

Both Federal and State laws prohibit certain actions that create Monopoly, Restraint of Trade, Tying Relationships, Market Division, Price Fixing and Boycotting. Anti-competitive practices that do not allow competition and create the above conditions thus forcing consumers to pay higher prices (such as above) are serious violations of both Federal and State Laws and should be reported to both the Anti-Trust division of your Attorney General's Office, and the Federal Trade Commission.

You may want to point this out to your Board of Directors before taking such action. Unfortunately they are in a position of leadership, but with unqualified credentials.

[4ARedOctober Super Moderator Find all posts View Profile Close 4ARedOctober]

It is not a surprise.....it was just a matter of time since RCI will throttle its members any chance they get and membership exchange fees are a legal way for them to do it now that the public is fighting back in regards to how they are raping RCI weeks with their rental programs.

I don't know why everyone is surpised about this. Someone has to pay for the big attorney fees to defend against some lame class action lawsuit. I might just as well be consumers.

Short

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

I don't know why everyone is surpised about this. Someone has to pay for the big attorney fees to defend against some lame class action lawsuit. I might just as well be consumers.

Short

What is the cause of all of the increases in RCI's Membership Fees over the last several years? Is it because of the Class Action Lawsuits or is it the actions of Cendant that is the cause of the Class Action Lawsuits?

Being both an Exchange Company and a Rental Company is the real problem. If they were only an Exchange Company there would not be any Class Action Lawsuits about the many RCI rental programs.

You are placing the blame on the wrong party. The Lawyers are not the problem. RCI many rental programs are the problem.

As for the reason for all of the increases over the last several years----extra profit is the reason.

How can more expenses be the reason? They are doing more and more online Exchanges. I would assume they have reduced the number of VC's because of the online Exchanges. How many long time VC's do they have on their VC staff? Long time VC's would be getting higher wages than new VC's. And where are the VC's located? ---In Counties with lower wages? When I do call RCI, I never seem to get anyone that really knows what they are talking about. And they are renting more and more weeks at higher and higher rental fees with no cost to them...our spacebanked weeks.




Walt

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

What is the cause of all of the increases in RCI's Membership Fees over the last several years? Is it because of the Class Action Lawsuits or is it the actions of Cendant that is the cause of the Class Action Lawsuits?



Walt

Walt,
Because RCI got some decent management types in that knew something about making money and running a business.

Short

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

As for the reason for all of the increases over the last several years----extra profit is the reason.

So what if it is? And almost assuredly that is the reason.

If their profits are exorbitant, that is by far the best incentive for other exchange companies to compete vigorously with them. Other exchange companies can then raise their rates or attract more business to generate the capital they need to compete more effectively.

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

What is the reson for higher Exchange Fees?

So what if it is? And almost assuredly that is the reason.

If their profits are exorbitant, that is by far the best incentive for other exchange companies to compete vigorously with them. Other exchange companies can then raise their rates or attract more business to generate the capital they need to compete more effectively.

I don't believe that the Increase in Fees have anything to do with the Class Action Lawsuit as Short seems to think.

RCI increased the Fees because they can. At what Exchange Fee would you stop Exchanging?

Walt

[wandering gnome Senior Member Find all posts View Profile Close wandering gnome]

spacebanking a week prior to Sept

If I deposit a week now and place a search prior to Sept, will the exchange fee be $149 or $164?

[bigfrank Administrator Find all posts View Profile Close bigfrank]

If I deposit a week now and place a search prior to Sept, will the exchange fee be $149 or $164?

If you do it now the fee will be $149 for domestic.