How is it possible to rent [exchange for DVC] through RCI?

I'm not asking about the process for renting at a Disney resort through RCI (points), just how is it even possible? I managed to get a 1BR for a week in January for 41,000 points, which prorates to about $450 of my maintenance fees. When I go to Disney's website to book the same 1BR villa for a week, it was over $3,200. So even with my reservation fee, membership fees, and any other charges Disney throws at us during check-in, it's way under 1/4th the price of going through Disney direct. How is this possible?

I am confused, because using RCI points to make a reservation is "making an exchange," not "renting". You exchanged your timeshare, for someone elses timeshare - you weren't dealing directly with DVC.

Are you asking why exchanging is less expensive than renting directly from the resort?

It's simple: The developers (DVC in this case) can charge top dollar for a direct rental, because you are paying for the name brand, and security of renting from a corporate entity.

Your "exchange" was far more cost effective, because the underlying cost of your timeshare ownership is far less than DVC's inflated price, and DVC does not get a cut of the transaction. The week you exchanged for was owned by a timeshare owner - not DVC.

Yes, sorry, I meant my exchange (through RCI Points).

But if Disney can charge that much and get people to come, why do they bother selling units? They could just charge everyone $500 a night for a 1BR and make a killing.

We've been timesharing for a couple years now, and through all the frustrations and annoyances, this exchange has more than made up for it. Even in offseason, out of the resort, you're paying at minimum $200 a night for basic units.

DeniseM said:

I am confused, because using RCI points to make a reservation is "making an exchange," not "renting". You exchanged your timeshare, for someone elses timeshare - you weren't dealing directly with DVC.

Are you asking why exchanging is less expensive than renting directly from the resort?

It's simple: The developers (DVC in this case) can charge top dollar for a direct rental, because you are paying for the name brand, and security of renting from a corporate entity.

Your "exchange" was far more cost effective, because the underlying cost of your timeshare ownership is far less than DVC's inflated price, and DVC does not get a cut of the transaction. The week you exchanged for was owned by a timeshare owner - not DVC.

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squierjosh said:

Yes, sorry, I meant my exchange (through RCI Points).

But if Disney can charge that much and get people to come, why do they bother selling units? They could just charge everyone $500 a night for a 1BR and make a killing.

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Because only a small percentage of people can and will pay $500 a night.

DVC either owns a percentage of the resorts, and/or takes back some weeks/points through various methods, and that's what they are renting. They don't have access to the whole resort. Most of the resort belongs to DVC members.

Also, if DVC owned the whole resort outright they (DVC) would have to cover the entire over head cost of running the resort. Right now - the OWNERS are paying the cost of maintaining the resort.

Plus, remember that DVC is making a fortune from MANAGING the resorts as well. A nice chunk of our maintenance fees goes to the management companies every year.

squierjosh said:

I'm not asking about the process for renting at a Disney resort through RCI (points), just how is it even possible? I managed to get a 1BR for a week in January for 41,000 points, which prorates to about $450 of my maintenance fees. When I go to Disney's website to book the same 1BR villa for a week, it was over $3,200. So even with my reservation fee, membership fees, and any other charges Disney throws at us during check-in, it's way under 1/4th the price of going through Disney direct. How is this possible?

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Most people don't pay rack rates, either, so the cost is probably less than that. It's also a lot cheaper for your exchange, than my exchange for January which is about $825 in mf, not including the exchange fee or the $95 Disney fee.

Disney made an agreement with rci to be their exchange company (for members who deposit their points with rci) and also to use rci/wyndham's rental outlets to rent out excess inventory. When you rent through rci, the exchange fee is often $2000-$4000 for a weeks stay. In return DVD also deposits an agreed upon amount of inventory into the rci exchange pool. It is definitely a win for rci members who can exchange in for less than they can going through other sources like buying DVD points, renting from an owner or renting through traditional rental outlets.

Feel happy you got a great exchange to DVC and at a low level of points.

If you have any doubts at all that your trip is going to happen, definitely invest in the points protection. It's worth the investment and peace of mind.

I didn't on one of mine, and due to major soap-opera drama in the life of the family who were going to use the week, we are stuck with a week in a 2 bedroom prime season, which we cannot use because we are all traveling to Hawaii that week. I wish I had bought the points protection now. I keep hoping RCI will make a mistake again and offer the points protection belatedly. They used to do that all of the time.

To the Original Poster -- there are some amazing deals to be had through timeshare exchanging. You happened to get one of the best ones.

There are also some lousy deals in timeshare exchanging. The person who deposited that DVC week probably got a lousy trade -- something that wasn't worth even close to what they deposited.

A lot of people who own timeshares are very unhappy with the exchanges they get. Then, there are some savvy timeshare owners who are *very* happy with the exchanges they get. People on TUG tend to be savvy timeshare owners.

JudyS said:

There are also some lousy deals in timeshare exchanging. The person who deposited that DVC week probably got a lousy trade -- something that wasn't worth even close to what they deposited.

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You'd be surprised that there is exclusive inventory in there available only to DVC members that is not available to regular RCI members.
I think this is so DVC members don't get disappointed in their trades.
I guess they have to do something to entice DVC owners to trade their points in RCI.

You'd be surprised that there is exclusive inventory in there available only to DVC members that is not available to regular RCI members. I think this is so DVC members don't get disappointed in their trades. I guess they have to do something to entice DVC owners to trade their points in RCI.

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Are you sure about this? I know DVC restricts the resorts available to their owners to higher quality places but I've never heard that RCI sets aside this inventory especially for DVC members.

chriskre said:

You'd be surprised that there is exclusive inventory in there available only to DVC members that is not available to regular RCI members.
I think this is so DVC members don't get disappointed in their trades.
I guess they have to do something to entice DVC owners to trade their points in RCI.

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I've seen something about this, but don't remember the details. I do remember that it cost a huge number of points.

I've owned DVC for about a decade now, but have never deposited DVC with an exchange company. It's always looked like too big of a trade down to me.

I find it hard to believe that too many DVC members are actually depositing their points with RCI. I know a lot of DVC owners and not one of them (nor anyone I've encountered on TUG) ever uses their DVC points to trade through RCI.

My theory is that DVC and RCI must have some kind of arrangement worked out where RCI gets Disney's excess vacation club inventory (weeks not booked by owners or rented directly from Disney by a certain date) for their exchange pool. Disney wants to fill their rooms. They know it means more ticket sales, dining plan sales and overall Disney spending for them. But on the other hand, they don't want to ever lower the room rental prices to the general public too much because they risk devaluing their product that way. Making the units available through RCI exchange is a much better option for them. It's true, RCI members are getting Disney exchanges for pennies on the dollar but only a very small segment of the general population owns an RCI timeshare. The risk of the rest of the population discovering the DVC opportunities that RCI members have and then going out and buying an RCI timeshare to use to trade into DVC is there - but only a very small portion of the population will ever take initiative to do this or even know it's an option. An even smaller pool of the general population are willing to risk buying a timeshare on ebay or the like. So instead of significantly cutting prices of rooms unlikely to be rented, Disney gets to pick and choose what to give RCI. They get the $95 service fee for booking DVC plus whatever dining and ticket packages the members take. It's a win win arrangement for both sides.




Of course there is no way to confirm or disprove this one way or the other.

To the OP, if you're still wondering how Disney could permit you to use the accommodations for a week for under $1000 when they would receive over $3200 from a nightly rental guest, I hope you see now how this is "possible." Disney has received and will receive plenty more than the amount you're paying toward your vacation week, for the timeshare condo/week that you'll enjoy.

Disney gets the annual dues payment from the DVC member who assigned that week to RCI so they could travel/exchange elsewhere.
Disney was paid a chunk of change from the DVC Member who originally purchased the points for that membership.
By participating with an exchange company like RCI, Disney also ensures that the room is always full with guests who are likely to spend more at the Disney venues.
Disney even gets an extra $95 resort fee from exchangers.

You also win, because you're going to stay at a DVC resort for much less cost than you would likely pay by other means of staying there. Win-win, so far.

The DVC member (who paid retail to buy in and then pays fairly high maintenance fees) may be the only one who loses out by being involved in this exchange. Their value-received for money-spent (i.e., loss) may account for your gain. However, even they may still consider it a win... if they got an excellent trade... if they were going to otherwise lose their points if not used... if they had a strong desire to vacation "this time" in a way or location that's not offered at their DVC resorts. They may value the convenience of paying maint fees to one company, with whom they vacation most often. They may not mind a higher cost for an odd exchange, when they look at their total experience of the vacation ownership experience with DVC. Most DVCers I know (in real life) don't spend any time online at TUG or DIS, even though they know about them. They work a lot, earn a lot, and really want convenience in their busy lives.