In Defense of Resort Fees
Has anyone noticed the tendency of some resorts to charge resort fees if you exchange into them. This seems to go against the spirit of timeshare exchanging. Am I wrong to feel this way?
For example exchanger's resort fees :
Los Abrigados (Sedona,AZ) $15/ day, $17 with tax!
Channel Islands Shores(Oxnard,CA) $13/day.
Polo Towers (Las Vegas,NV) $20+tax=$22.40/day!
:annoyed:
A legacy Non-Profit Timeshare organization derives its income primarily from Owner Dues and unit Rental. Specifically, Tahoe Beach and Ski Resort competes in the hospitality business against “for profit” timeshare resorts that derive income from unit sales, and Casino hotels that derive income from gambling. If the dues are too high, the owners no longer derive value from ownership. If the rental rates are too high, the rental income disappears. If the resort is not competitive in the value proposition, nobody rents, nobody exchanges in, and the owners exchange out to other resorts.
Three years ago Tahoe Beach and Ski was rated number 34 out of 70 resorts in South Lake Tahoe by TripAdvisor reviews. The resort spent very little on activities in order to keep dues low and in return the owners complained of an inferior resort experience. Against this backdrop the Board of Directors made a number of changes. The resort entered into a management partnership with Grand Pacific Resorts Management because of their reputation for operations excellence and management of extensive activities programs. The Board decided to initiate a resort fee to balance some of the costs of increased activities which include free food, drink, and live performances during the guest’s stay. There is very tight tracking of activities costs and expenses and the goal is a 20% recovery of activities cost from resort fees. Resort fees are not collected from owners whether staying on their use week or any other stay such as exchange, bonus time, or rent. Guests of owners also do not pay the resort fees. Direct TUG exchangers, technically guests of owners, do not pay the resort fee.
The combination of an improved resort experience, exceptional staff and much improved activities schedule have Tahoe Beach and Ski resort rated number 4 of 70 resorts in South Lake Tahoe up from 34 and number 8 out of 129 resorts when including all of Lake Tahoe.
RCI reviews as well are much better since the resort instituted a resort fee. RCI guests used to rate the resort very low on activities. Now, the RCI guests rate the overall resort experience very high, and RCI raised the point value for our owners exchanging out. The Resort Fee does not target exchangers. It targets non owners which include renters. It should be noted that the exchange companies have the bad habit of renting exchanged units for half the price of what owners pay in dues. When an RCI guest checks in at our resort, the resort has no idea if the guest exchanged a week at Manhattan Club or rented an RCI week for $249. RCI rents out their inventory to RCI members as well as Non-RCI members.
There is a fine balance that has to be struck between owner dues, service level, rental rates and additional sources of income within the geographic market in which a resort operates; Finding that balance is the job of the Board of Directors in cooperation with management. While resort fees can be abusive, arbitrary, incomprehensible, and discriminatory, when imposed correctly, the fees can improve the resort experience, and deliver a product that brings back guests year after year, and allow non-profit legacy timeshare resorts to compete with other for-profit resorts deriving their income from unrelated activities.
Thanks,
Treasurer, Tahoe Beach and Ski Resort