How do they do that?

A question for an experienced exchanger:

I can't use my timeshare points this year, and if I don't use them by Dec. 31, I forfeit them. My resort has an affiliation with RCI. So, I called RCI. They tell me that if I deposit this years points with them now, I will be able to use them to trade for another timeshare anytime until the end of 2017!

If my points expire at the end of this year, how is it that RCI can let me use them for another 2 years? Thanks.

Depending on the company you own with, the developer may have pre banked a bunch of weeks with the anticipation that so many owners will end up depositting with RCI. In that case the weeks may have been deposited months ago and someone may already have exchanged into the week. You are getting a credit from that deposit that can be used until it expires.

It may also be that they will use the points you deposit now for a week Sept-Dec and again someone may or may not use that week but you get a credit to use later. Just as you have a deposit from this year but won't be using until 2016 or 17 someone may have taken your week this year and deposited one from next year that they know they won't be using.

Are your points annual or every other year, or every 3rd year? Usually when you deposit a week you can potentially get a 3 year window in which to use your deposit. You can use it 1 year before your actual use year or up to 2 years after. As far as I understand, points expire after a certain time frame (depending on what you own) & you need to pay a fee to extend the useage time frame.

~Diane

Ima Timesharer said:

If my points expire at the end of this year, how is it that RCI can let me use them for another 2 years? Thanks.

Click to expand...

Technically, they aren't. When you deposit your points, what *really* happens is that those points are used to book some time in your home resort system, and that time is given to RCI. RCI finds one of its customers who is willing to spend some of their "exchange credits" to book that time. In turn, you are given "exchange credits" to use later to book some other time deposited to RCI.
But, because of the way things work between RCI and your home system, you only see it as points native to your home system.

One more point - there is no relationship to someone USING your deposit, and you making an exchange.

In other words, maybe for some reason, no one uses your deposit - doesn't matter - you still get to make an exchange.

In simplest terms: You throw your deposit in the Big RCI Pot, and you have 2.5 years to pull an exchange out of the pot, regardless of what happens to your deposit.