Lets say that RCI really wants to get this right and has no hidden agenda. How would they set it up to be fair, honest, and objective?
1) dynamic values Set the value of your deposit at the time of deposit. That is sensible and fair and is what they do now. For exchanges, adjust constantly based on changing supply and demand. Value each week at each resort based on a fair mix of historic supply and demand and current supply and demand. Use no extraneous factors like double counting award status, something that is already inherently factored into demand. For a set of numbers to be dynamic, they would have to be published only electronically, not with paper and ink. RCI might actually be thinking in that direction given the way they have already shrunk the resort directory to save trees (and money) and suggested that members use the online directory instead.
2) transparency of value setting Publish the formula for setting values and link to the underlying data that justifies it, or alternatively have a third party accounting firm audit it and certify that it complies with the published formula.
3) continue reductions for short shelf life inventory Continue some arrangement to substantially discount late inventory. If Points people are going to have access to Weeks last minute inventory, it would only be fair to give Weeks members access to last minute Points inventory for similar reducitons in value. Another option would be to give Weeks members first crack at last minute Weeks inventory before anyone else had a shot at it.
4) treat size of units differently Hopefully the data would allow simply seperating the supply and demand data for different size units at the same resort. If not this would have to be done arbitrarily but fairly.
5) Don't give in to developer pressure Don't even take a call from a developer wanting a special arrangement on assigning value. Use supply and demand and let the chips fall where they may.
6) transparency for weeks removed for rentals or added Fully disclose what weeks have been removed for rentals and what weeks added into the system by RCI. Also disclose weeks transfered between Points and Weeks.
7) timing Do not reduce the window in which to make exchanges. Do disclose the added trade power for early deposits as that will help encourage early deposits.
Carolinian....
Doesn't look like we're too far apart. #1 and #7 in yours are almost the same...the value is set when the deposit is made....so if there's no OBX weeks available and you deposit your week, you are kicking into the low supply & presumably high demand end...getting more value. That increases your trade value. Turn in your Orlando week when there's 47,263 available in that same time period..the reverse is true.
I do want to see some weighting for the size of the unit....a 3Br should trade better than a 1 Br or Studio in
the same area (I'm looking at Lock-Offs as possible future purchases...and if I get one, it could then be considered trade-able based on 1Br + 2 BR, or 3Br..depending on the best value.
#5 I heartily agree with...that allows the Developer to overprice their weeks to the
suckers prospective purchasers, and gets people even more disgusted with the TS purchase process.
I think they could come up with a VALID formula for demand (rather than Red/White/Blue)...based on demand (or filled units) for that area AND resort...hell, my wife joined a Gym recently...and she got a spreadsheet showing the average number of people using the Gym for each hour it was open...as part of the RCI affiliation, maybe each resort should document Owners staying, Exchangers staying, Rental Staying and Open units for each week.
Then they come up with a 'base value' in trade credits on the resort and 'added value' credits....the base comes from Supply (units in the resort, units in the area) /Demand (how full the resort is, how many requests to get there each year), Size of Unit, and some kind of rating on the resort (comments, access to amenities or attractions, etc....not necessarily the Gold/Silver, etc.). Probably weighted to Supply/Demand, then Size, then Rating.
Then they do the 'added value' credit...deposit more than a year early, you get extra credits...deposit less than 6 months out..no credit. Deposit when there are few other similar units in inventory...additional credits.
So....a 3 Br Lockoff on the Beach at OBX on July 4th week...would be worth 50 credits. Deposit it 1 year out, 5 extra credits. No other units in inventory...5 more credits for the scarcity at the time of deposit. So you get a base of 50 credits, + the 10 added value credits. The same unit off the beach (BIS Kitty Hawk) would be 47 credits under the same conditions..
A 2Br away from the beach, end of September week would be 30 credits...they can still get the early deposit credit and probably not the full scarcity at time of deposit credit (since there's likely to be at least a few of them).
A 1 Br away from the beach in February would be 15 credits...so they need to get the maximum from their added value credits...
A 2 BR Orlando end of Sept. week would be 25 credits (yeah, Orlando's popular, but overbuilt), assuming you have to drive a bit to get to the major attractions....get a place where you trip over Mickey or Goofy when you walk out the door in the AM...then it's 30 credits...
I do like the idea of some (even if it's slight) weighting towards the amenities and reviews at the resort....it encourages the resort to keep the place up to get their higher ratings (and the HOA will not let it fall off if their members lose trade and resale value).
AFARR