Interval international unit size upgrade fee??

[dioxide45]

In most cases a company will add new fees for some type of new benefit or value add service. II added the EPlus, which provided something that the customer could use. The problem is that the new fees didn't provide any new benefit or service. It took something that was free before to something that now has a charge. No new benefit and no value add. A rather big cut in to the cost of timeshare for those that lock off and exchange in to larger units.

That isn't to say that the benefit of doing so isn't still there. I don't see how I can do as well with DC points as I can in II, even with the new fees. We will probably just end up paying the fees. Though I do think they have an imbalance problem that will cause them to get fewer premium location deposits. Who wants to deposit their Hawaii studio or 1BR to have to pay a fee to go to a 2BR unit in Orlando in the off season?

 

[youppi]

Who wants to deposit their Hawaii studio or 1BR to have to pay a fee to go to a 2BR unit in Orlando in the off season?

This is not a good example because without the fee, it was already a bad exchange.

 

[MissRumphius]

What am I missing - here's what is posted on the II site

One significant advantage of Flexchange, however, is that exchange access is enhanced, allowing members to confirm any available unit size and season. It is important to note that comparability of quality matching is still maintained for members who are relinquishing highquality resort accommodations. During this period, the unit-size upgrade fee does not apply.

But when I look at the Marriott Miami in the flexchange window (Sept 10-17) there is still an upgrade fee. Are they saying unit-size upgrade fee does not apply except when they want it to? This is a Marriott to Marriott exchange so comparability of quality shouldn't be an issue.

 

[Seaport104]

What am I missing - here's what is posted on the II site

One significant advantage of Flexchange, however, is that exchange access is enhanced, allowing members to confirm any available unit size and season. It is important to note that comparability of quality matching is still maintained for members who are relinquishing highquality resort accommodations. During this period, the unit-size upgrade fee does not apply.

But when I look at the Marriott Miami in the flexchange window (Sept 10-17) there is still an upgrade fee. Are they saying unit-size upgrade fee does not apply except when they want it to? This is a Marriott to Marriott exchange so comparability of quality shouldn't be an issue.

Flex change is through sept 9 today. Tomorrow sept 10 will be within flex change (59 days)

 

[MissRumphius]

Flex change is through sept 9 today. Tomorrow sept 10 will be within flex change (59 days)

Oops, so much for my arithmetic - thanks for straightening me out!

 

[krj9999]

Neither the RCI TPU system or the new II pay to upgrade system are perfect.

Both have their positives and negatives. It all comes down to how you can maximize value out of either (or both) with what you own and use.

 

[dominidude]

This thought just came to me:

This might be just one step in II's renewed effort to push its members to upgrade to II CIG points.

CIG points members do not have to pay extra to trade a studio for a 2bdr.

If that is the case, I actually have some renewed respect for II.

However, the problem still is those pesky II points conversion fees.

Let's see what II does next. II being what it is, they'll probably jack up the costs to convert to points, instead of lowering them.

 

[tschwa2]

Like RCI points conversion, I don't think II keeps the majority of the fee that is collected. I doubt they charge more than $500 and the remaining amount is usually split between the HOA of the resort and the sales force budget that actually does the hard sell, some of it going toward commission, some going toward salary, incentive gifts, and other sales force overhead.

While a CIG member may not pay more in II fees to exchange into a studio vs a 2 br, the points requirement (and therefore cost to the member to go from a mid season studio to a mid season 2 br may be more than twice as high effectively doubling the cost to obtain the 2br vs the studio.


Developers selling points, be they Marriott or CIG will be pleased at the fees as it does help their sales efforts. Developers selling weeks probably won't mention the extra fees or will try to way down play the fees. They may even be more likely to throw in the year or two of platinum to help mitigate the fees at first.

 

[vikingsholm]

I disagree with you youppi about saying "This is not a good example because without the fee, it was already a bad exchange."

We often lock off and deposit a studio in a prime area, prime season unit and still use the full 1 bedroom size for that week. Previously, that studio would bring us decent 2 bdr trades in off seasons at other locations that could be quite nice, and where off season weather is pretty nice too, without an extra fee. Now that this fee is added, I doubt we'll do this nearly as much. Lost trading fees for II as a result. Off season Marriott DC points look like a much better bargain now as an alternative.

The winners here seem to be those who deposit crummy studio or 1 bdr weeks but now will be able to compete for 1 and 2 bedroom units that they previously had no access to. Since these types of deposits may be less desirable, II seems to be trying to make up for the lack of people trading into those by giving them access to 1 and 2 bedrooms with extra fees.

But they'll be losing the higher quality units and seasons of studio and 1 bedroom deposits that owners like me have made in the past. Now, they'll only get off season, less desirable deposits from me, and fewer of them at that. So as a previously high volume trader, they'll lose a lot of fees that we previously provided, and higher quality unit deposits.

It just depends on how different people use the system, and until II brings back more recognition of seasonality and quality of resorts in the trading power matrix, our II usage will drop significantly.

 

[IngridN]

I just uptraded my studio for a 2 bedroom and paid the fee. I'm not happy about the fee but feel it is well worth it. This way I don't have the nail bitting I had in the past waiting for flex and getting up at 3am until I snagged it. As I'm curious, I will continue to see what's available during flex each morning, but will not set the alarm!

Now I'll need to decide whether it is worth paying the fee or depositing both my 2 bedroom Shadow Ridge units instead of splitting one and exchanging the other for the 75K Marriott Reward Points. I'm leaning towards depositing both 2 bedrooms in the future. I'll have to check with DH to see how the $ work under each scenario. $300 upgrade fee (for studio and 1 bedroom to 2 bedroom units) or 75K MAR points.

Ingrid

Another option DH and I need to consider...dump one of our traders. DH retires Friday (yeah!) and if anything, we'll be doing less timesharing for a few years as we ramp up our independent traveling to non-timeshare areas. This makes much more sense than depositing both 2 bedroom Shadow Ridge properties. Instead, dump one, saving maint fees, split and pay for the upgrades...we'll still be way ahead.

I think others will also find a way to make this change work for them based on their needs.

Ingrid

 

[dominidude]

Like RCI points conversion, I don't think II keeps the majority of the fee that is collected. I doubt they charge more than $500 and the remaining amount is usually split between the HOA of the resort and the sales force budget that actually does the hard sell, some of it going toward commission, some going toward salary, incentive gifts, and other sales force overhead.

While a CIG member may not pay more in II fees to exchange into a studio vs a 2 br, the points requirement (and therefore cost to the member to go from a mid season studio to a mid season 2 br may be more than twice as high effectively doubling the cost to obtain the 2br vs the studio.


Developers selling points, be they Marriott or CIG will be pleased at the fees as it does help their sales efforts. Developers selling weeks probably won't mention the extra fees or will try to way down play the fees. They may even be more likely to throw in the year or two of platinum to help mitigate the fees at first.

WOW, you're spot on!

Didnt think about all, thanks as usual tschwa2!

 

[youppi]

I disagree with you youppi about saying "This is not a good example because without the fee, it was already a bad exchange."

We often lock off and deposit a studio in a prime area, prime season unit and still use the full 1 bedroom size for that week. Previously, that studio would bring us decent 2 bdr trades in off seasons at other locations that could be quite nice, and where off season weather is pretty nice too, without an extra fee. Now that this fee is added, I doubt we'll do this nearly as much. Lost trading fees for II as a result. Off season Marriott DC points look like a much better bargain now as an alternative.

The winners here seem to be those who deposit crummy studio or 1 bdr weeks but now will be able to compete for 1 and 2 bedroom units that they previously had no access to. Since these types of deposits may be less desirable, II seems to be trying to make up for the lack of people trading into those by giving them access to 1 and 2 bedrooms with extra fees.

But they'll be losing the higher quality units and seasons of studio and 1 bedroom deposits that owners like me have made in the past. Now, they'll only get off season, less desirable deposits from me, and fewer of them at that. So as a previously high volume trader, they'll lose a lot of fees that we previously provided, and higher quality unit deposits.

It just depends on how different people use the system, and until II brings back more recognition of seasonality and quality of resorts in the trading power matrix, our II usage will drop significantly.

The example was not any prime area/prime season to any low season area. The example was exchanging a studio in Hawaii for a 2 bdrm in Orlando low season. At this moment you can get a 2 bdrm Getaways September 9 to 16 at any Marriott's in Orlando for $277 to $327 depending of your II membership. Do you thing that The MF+optionally your initial purchase spread over x years at any studio in Hawaii is lower than $277 to $327 ? The answer is no. So, this is not a good example to show that the new upgrade fee cause a problem because it was already a problem before.

 

[MissRumphius]

Pending requests

So I was planning on placing a request into a 2 bdrm only resort using my one bedroom. I'm fine with the fee in this case.

Am I reading this right - if a 2 bdrm becomes available they call to see if you want it? How are you supposed to sort that call out from the tsunami of worthless calls from them. (which I typically screen). Not to mention they never leave a message. If you're at work or in the dentist's chair - are you out of luck?

Any suggestions - or am I missing something?

 

[dioxide45]

The example was not any prime area/prime season to any low season area. The example was exchanging a studio in Hawaii for a 2 bdrm in Orlando low season. At this moment you can get a 2 bdrm Getaways September 9 to 16 at any Marriott's in Orlando for $277 to $327 depending of your II membership. Do you thing that The MF+optionally your initial purchase spread over x years at any studio in Hawaii is lower than $277 to $327 ? The answer is no. So, this is not a good example to show that the new upgrade fee cause a problem because it was already a problem before.

The thing is, not everyone looks at it that way. Not everyone runs the numbers and people on TUG are more astute to getting the most bang for the buck. It may have been a bad trade before, but it is even worse today. It just goes to show the imbalance in the new system.

 

[vikingsholm]

youppi, ok if those are the details of that particular getaway.

I have rarely found getaways that meet our needs, at those prices, and you're right, I was talking in more general terms, where I stand by my point. We don't generally travel to Orlando or the east coast.

Lockoff studios from good seasons often have brought us nice 2 bdrs at various desirable locations in off seasons, and even in good seasons, without these new extra fees, that I'd never find available as a getaway at those kind of prices.

 

[Saintsfanfl]

So I was planning on placing a request into a 2 bdrm only resort using my one bedroom. I'm fine with the fee in this case.

Am I reading this right - if a 2 bdrm becomes available they call to see if you want it? How are you supposed to sort that call out from the tsunami of worthless calls from them. (which I typically screen). Not to mention they never leave a message. If you're at work or in the dentist's chair - are you out of luck?

Any suggestions - or am I missing something?

It depends on if the 2BR is flagged as a legitimate alternative match. It should be in this case because a direct match is impossible. These confirmation needed type matches go on hold for a period of time. Less than 24 hours. This gives you a chance to call back and confirm.

 

[GetawaysRus]

So I'm Johnny-come-late to this thread. I just deposited two 2017 weeks to I.I. and started looking at possible trades. Lo and behold, new fees. So I signed on to TUG and found this thread.

It looks to me that I.I. is following the lead of the airlines: increase profits by adding new and creative "fees," such as baggage handling fees, change ticket fees, etc. After all, the customer is a piñata. You keep hitting the piñata over and over until all the goodies have fallen out.

The weeks I just deposited were prime Sedona Summit weeks (with maximum value in Interval's Travel Demand Index). One week was a studio and the other a 1BR Master unit.

There is a discussion upthread about the trading value of studio deposits under the new fee system. I'll copy those posts here:

Originally Posted by sptung (post 37)
Does this now mean that in a search result, a studio will return larger units even when it does not have the trade power (as in the past) to trade up? Does it also mean that in OGS, we can pay extra for the option to trade to larger units?

Posted by dioxide45 (post 38)
No, the system will still only return "comparable" exchanges, if one of those "comparable" exchanges happens to be larger than the unit you deposited, you will pay the fee. You still won't be able to see anything and everything available in inventory.

sptung replies (post 43):
Ding! Ding! Ding! Ha! I just did a trade test. In the past my studio was not able to see NCV and now it returns NCV results, for a $118 exchange fee, I can have a NCV instant exchange!!! I had been able to trade in a studio to NCV through OGS in the past, just not through instant exchange.

I think it makes a studio a little better with this new upsize fee!

Dougp26364 (post 84):
One observation on the Marriott forums, where the same topic exists, has been that studio units are seeing exchange opportunities they couldn't see before the change. If I.I. is after $$, it would make sense for studio units to see more upgrade opportunities since that would generate additional fee's. and profits. If enough owners take advantage of this new opportunity to upgrade, even for an extra fee, it could actually result if fewer large units remaining available for long. Of course, to upgrade, one has to see it online as an instant exchange unless I.I. loosens the rules for ongoing searches.

vikingsholm (post 184):
The winners here seem to be those who deposit crummy studio or 1 bdr weeks but now will be able to compete for 1 and 2 bedroom units that they previously had no access to.


I have to agree with those who said that the new fee structure dramatically increases the trading power of a studio. In the past, the Sedona Summit 1BR was always a pretty decent trader, and I could often snag a 2BR in trade (with no upgrade fee, of course). But my Sedona Summit studio was relatively weak, and I could not see trades anywhere near as good as the 1BR. It has always been much harder for me to get decent trading value out of a Sedona studio deposit. (Because of my work schedule, I can't trade within the Flexchange period.)

Now, however, my Sedona efficiency is seeing nearly everything (nearly, but not 100%) that the 1BR sees, including trades to a 2BR or 3BR. Of course, these potential trades with the studio will now cost me more (in upgrade fees) than if I trade with the 1BR. But Interval stands to make more money if I trade with the efficiency, so that's why I think they are allowing me to see more potential trades when I search with the efficiency.

So overall, I think this is a very mixed bag. It's going to be far easier for me to trade the efficiency unit (but for a fee). But I've clearly lost some value on trading the 1BR unit, and I'll be paying fees when I do trade the 1BR to a larger unit.

I'm a "regular" I.I. member. I have to agree with those posters who said that now I'll have to look more carefully about the value of switching to Gold or Plat Interval membership.

Here's a suggestion for Interval (and I'm now going to put my tongue in my cheek because I would be quite surprised if this happens). For the airlines (let's say American Airlines), remember that the checked bag fee is waived if you have a co-branded credit card (such as a Citibank American Airlines credit card). Also, you get group 1 boarding if you have the credit card. If Interval wants to fee-us-to-death, I might just sign up for an I.I. credit card if that would help me waive these new trading fees.

 

[lizap]

Ken, I agree. Nobody likes paying more, myself included, but, IMO, it makes sense that if you want to upgrade to a larger unit, you should have to pay something.. The real problem here is now we're being asked to pay for something we used to get for free. Certainly II handled this poorly by not giving advanced notice of the change.

After some thought on this issue, I actually think it's a reasonable change. While many of us were able to get larger units in exchange for smaller for many years, it was always perceived as a significant benefit to II membership. The new fees are not extreme, and an extra ~$9/night to upgrade to the next larger unit size doesn't seem out of line to me. If II convinced itself that it needs to make more money then this is a fair way of doing it...those who don't need larger units won't pay any extra, and only those who benefit will pay for it. I like this better than just another across the board exchange fee increase.


Sent from my iPad using Tapatalk

 

[lizap]

You're assuming that Getaway rates are not going to go up.

It's $14 per night if you don't have an upgraded II membership. Personally I think it would be more reasonable to get one size upgrade with no charge and then start charging when going up two or more and there should be sales of off season inventory (which may rarely include Marriotts and VSE) at resorts and locations with a lot of excess units that allows for double upgrades without fees. It shouldn't cost less for a getaway with exchange inventory than using even a studio plus exchange feel. If it costs $467 plus any kind of exchange be it points or a studio and the same 3 br unit is available as a getaway for $397 or so there is something wrong. An exchange should always get you at least $100 off the standard Getaway rental fee for exchange inventory.

 

[Panina]

I own winter time southwest Florida studios. I will have no problem paying the new fees if I get a trade in the same time period in south Florida.

But I will now only deposit these weeks with a request first to make sure I retain my weeks value.

If I plan on trading these prime weeks for non prime weeks elsewhere, I will from now on deposit in RCI. Whereas II previously gave me the best value for these trades now Rci does.

Just recently in Rci I deposited my winter southwest Florida studio, for the TPUs I received, I got a winter week 2 bedroom prime resort in Orlando and had 1/3 of my TPUs left over to use. In II I would have paid a 2 bedroom upgrade fee.

I always preferred II. I am so disappointed in II. They just missed it and did not consider the members who have prime time great area studios that are also desired by other members.

 

[tschwa2]

You're assuming that Getaway rates are not going to go up.

I actually think there will be more off season larger getaways available and although the price will eventually go up if their is a glut that are not being taken as exchanges they will be priced low and maybe even offered as platinum escapes, like the glut of AI weeks offered cheaply.

 

[Correcaminos]

I have opened up a new thread to focus on the telephone call process -- Miss Rumphius, I believe you have pointed out an issue that deserves special attention.

 

[klpca]

I own winter time southwest Florida studios. I will have no problem paying the new fees if I get a trade in the same time period in south Florida.

But I will now only deposit these weeks with a request first to make sure I retain my weeks value.

If I plan on trading these prime weeks for non prime weeks elsewhere, I will from now on deposit in RCI. Whereas II previously gave me the best value for these trades now Rci does.

Just recently in Rci I deposited my winter southwest Florida studio, for the TPUs I received, I got a winter week 2 bedroom prime resort in Orlando and had 1/3 of my TPUs left over to use. In II I would have paid a 2 bedroom upgrade fee.

I always preferred II. I am so disappointed in II. They just missed it and did not consider the members who have prime time great area studios that are also desired by other members.

I hear you on using RCI with a quality studio. I can easily get 2 - 3 trades out of my Donatello unit (but at a cost of $400 - $600 in exchange fees!!), but I like the inventory in II so much better. I like your idea of doing a request first with II.

 

[dioxide45]

No mention of this new benefit in the latest issue of Interval World Magazine that arrived today. It must have been announced to late to make the issue...

 

[tashamen]

No mention of this new benefit in the latest issue of Interval World Magazine that arrived today. It must have been announced to late to make the issue...

Actually it is there, but not exactly featured. On Page 13 there's a short item called A Step (or Two) Up: "From time to time, you may be able to upgrade to a larger unit when you exchange your week on Intervalworld.com (a fee applies). If the opportunity exists, you could have the choice of stepping up to a one-, two-, three-, or four-bedroom unit...")

I added the bolding.