I worked for one of the major xchange companies...

[Change the X-change]

and now that my non compete clause is over I was thinking of being the competition for them. I have fresh new I deas for example: $50 exchanges, if you own an a you can go to an e resort if that's what you want, not anual but monthly membership fees, and yes you can exchange beyond your expiration date as long as you are active at the time of xchange, these just to mention a few...please provide feedback on this idea positive or negative. Thanks

 

[PerryM]

Quriky; but here goes

X,

Anyone can say anything on chat rooms without proof. Starting a billion dollar exchange company on a chat room sounds to me quirky to say the least. However, I’d like to get some of your ideas.

Points or weeks? That should start this discussion. Which will your company endorse and why? I’d like specific examples and exact reasons.

Thanks,

 

[Change the X-change]

Sorry I failed to give my name. It is Mike and between my wife and I we have 17 years of II experience...I know what I'm talking about.

As far as trying to build an empire in a message board, I agree with however, let me give you some history. II started with a handful of people taking weeks over manual phones...a good friend of TUG and former II employee Craig Urbine was one of the II phone reps. in the begining.

I am just getting some feedback to see what everyone thinks...It will not be an overnight project and God knows I don't have the money to start a full blown call center...I can make the costs lower because the member would do part of the work...looking for the week, booking etc. The difference is I would not hide inventory from my members, I would let you freely do with your week as you want, we forget that it is yours no?

I would do weeks, not points, just easier to exchange in my opinion.

As far as billions of dollars, I know the timeshare exchange companies make billions of dollars, the overhead in comparison is small.

Please continue to send me comments and feedback, I appreciate all the info I can get.

 

[JBRES1]

Don't take this the wrong way, but please proof read before you post.
Peoples first impressions are tough to change. You could do as I do at work, put it on paper and have somebody put the ideas into a form others can read.

As for the exchange company, good idea if you can get it off the ground.
How will you work the exchanges, and who will you get the seed weeks to start the exchange process from?.
Jim Breslin

 

[PerryM]

Sounds like same old same old to me

Weeks are certainly easy to implement however, we get back to all the secret formulas and wishy-washy trading “rules” that are simply not enforced. Who needs another RCI and II?

Would you spawn a carbon copy of RCI and II or can a week system be forthcoming and open -I personally don't think so. This would entail telling everyone what their week is worth. How would you do that? I just don’t see a barter system without all the secrets that hold the thing together.

I personally rent my units now and rent other owners units – all in the open and in the free market. I trade only when an outrageous exchange in my favor occurs.

How will this be any different than RCI and II? So far it sounds like the same old same old – what’s different?

Are we at the sunset of the exchange company? I don’t think we need another traditional exchange company but something radically different – sounds like you just want a copy of II?

Tell me how I'm wrong.

 

[BocaBum99]

Who would object to a $50 exchange program unless it didn't have many deposits and nobody trusted it?

It might help if you explained how you would be getting inventory and what type of features you would offer in your exchange company.

Other than price, what will give you a competitive advantage?

Let's say I am a customer, please tell me how you will be in business in 12-24 months so I am willing to make a deposit.

 

[rickandcindy23]

There are lots of alternative exchange companies out there already. What would set yours apart from the others? I have not ever used the alternatives and would have a difficult time trusting anything new.

Actually, I have a question for you: We own at Twin Rivers and have been told that we have an exclusive contract with II and that we cannot use any other exchange companies. I called Janie Beall and she said the same thing, that we cannot use an alternate. What is the truth of that? My weeks are deeded and I have owned Twin Rivers for 25 years.

I would appreciate your honest answer.

 

[CraigU]

II started with a handful of people taking weeks over manual phones...a good friend of TUG and former II employee Craig Urbine was one of the II phone reps. in the begining.

As far as billions of dollars, I know the timeshare exchange companies make billions of dollars, the overhead in comparison is small.

Many of the processes, in the early years at I.I., were indeed manual. In fact, I handled the trial program for "deposit first" which included filing the required signed documents in shoe boxes (they were the perfect size for the size of the documents). However, there were systems to support data retention.

It should also be noted that exchange company revenues, individually, are not in the billions of dollars.

The most difficult part of the start up phase would be attaining enough weeks to have a viable program. This is where creative thinking would be required. I believe the systems to support a project of this type could be developed for a reasonable amount of money.

 

[CraigU]

Re: Sounds like same old same old to me

Weeks are certainly easy to implement however, we get back to all the secret formulas and wishy-washy trading “rules” that are simply not enforced. Who needs another RCI and II?

Transparency could be delivered quite easily. The question is whether people would like the reality of their weeks value.

In my opinion, the resort developers are the reason you don't get full disclosure from the major exchange companies. It would be difficult for their sales staff to sell "off season" weeks or over supplied areas if it was clearly disclosed.

 

[CraigU]

There are lots of alternative exchange companies out there already. What would set yours apart from the others? I have not ever used the alternatives and would have a difficult time trusting anything new.

A partnership with TUG would provide instant credibility...

Just a thought!

 

[CraigU]

Actually, I have a question for you: We own at Twin Rivers and have been told that we have an exclusive contract with II and that we cannot use any other exchange companies. I called Janie Beall and she said the same thing, that we cannot use an alternate. What is the truth of that? My weeks are deeded and I have owned Twin Rivers for 25 years.

Exclusive contracts in this context only dictate the exchange company that is affiliated with the developer. Individual resort owners cannot be bound by an agreement between third parties.

 

[PerryM]

Cut the fat

Whatever a new company would do there should be one goal in mind: No Humans! All computers. It drives me nuts when II and RCI call up to “chew the fat”, and fat is what needs to be cut out.

100% internet driven.

 

[Patricia]

a good friend of TUG and former II employee Craig Urbine was one of the II phone reps. in the begining

Hello and welcome to Tug:

Certainly if you are a friend of Craig Urbine that will give you 100% credibility
with most Tuggers....Why? Most of us here on Tug have much respect and
admiration for Craig because he was Interval's representative here on Tug
for several years (until he left Interval to pursue his own business ventures)

There was a discussion earlier here on Tug about Craig's List also starting up a Timeshare exchange...you may want to do a search
for that info (it was fairly recent)



I do think many of us would be interested in a $50 exchange fee.
Perhaps that would be the "hook" that would get many of us interested.

Good luck with your venture

Regards,
Patricia
Tugger since 1999

 

[geekette]

I'd like to know how my a can trade for an e.

$50 fee sounds great.

Monthly membership could be great, or a pain. In what range are you thinking??

Tell me more, I can overlook typos. Fresh new ideas are always welcome.

 

[CraigU]

Patricia:

He didn't state he was a friend of mine, he said I was a friend of TUG.

That would be an accurate statement.

BTW, thank you for your kind words.

a good friend of TUG and former II employee Craig Urbine was one of the II phone reps. in the begining

Hello and welcome to Tug:

Certainly if you are a friend of Craig Urbine that will give you 100% credibility
with most Tuggers....Why? Most of us here on Tug have much respect and
admiration for Craig because he was Interval's representative here on Tug
for several years (until he left Interval to pursue his own business ventures)

 

[boyblue]

Boy this is fun!

X, I guess it must be from your years at II but you are already disguising/hiding stuff.

With the a's & e's you have already created a points system.

 

[AwayWeGo]

Low-Cost Timeshare Exchange System.

Hey, maybe Mr. Change The X-Change is just the guy who should go talk to the folks at Craig's List about setting up a new low-cost, user-friendly timeshare exchange system.

-- Alan Cole, McLean (Fairfax County), Virginia, USA.​

 

[funtime]

I am too busy to track down all my annual dues, monthly dues would send me over a cliff! I think that HTSE has a good exchange system right now and it is transparent. All available weeks are on the web for all to see. Building up your base of weeks would be important. I would imagine you would have to give free trades or bonus weeks to the first 1,000 or so and also start working relationships with some larger resorts. I think that there is a good market out there for quality resorts in the shoulder season especially for empty nesters. Standards are important so that you do not get a lot of blue weeks dumped into your new system.

 

[Dani]

The most difficult part of the start up phase would be attaining enough weeks to have a viable program. This is where creative thinking would be required. I believe the systems to support a project of this type could be developed for a reasonable amount of money.

I think that this is exactly right and the reason why so many other start-up exchange companies other than RCI and II are not a viable option for me. They simply do not have the inventory in the places I want to go and/or I am not confident that they are able to provide me with the exchanges I desire on a consistent basis and with enough lead time. That being said, everyone and every business must start somewhere.

Also, goodwill and customer service counts for a lot and depending upon whom is running any such new exchange company...hint...hint..Craig , I'm betting that people would be willing to give it a shot and make deposits there. It has been mentioned here on TUG many, many times over the years about the possiblity of TUG and or TUGGERS starting an exchange company. I think that it is very possible.

By now there must be many individuals whose non-compete clauses have run who could put together a credible venture. As for the $50 fee, from a consumers perspective, of course this would be great. However, from a business perspective, I would think that more would have to be known about your costs including advertisment, your inventory of units, number of members, market, staff, on-line capabilities etc, in order to make a determiniation as to whether this would be cost effective.

 

[CraigU]

As for the $50 fee, from a consumers perspective, of course this would be great.

A lower fee structure is certainly possible especially if the venture were web based. The collateral materials (i.e. resort directory, membership kits/cards etc.) are the biggest cost associated with membership.

 

[Liz Wolf-Spada]

I agree with the post about not doing monthly fees, too crazy to keep track of and I think when people like a company they will pay a discounted rate for more than one year at a time. I use SFX a lot, but I miss not being able to search myself, more for fun than anything else. I hesitate to give RCI weeks due to people complaining about the rentals, last calls are expensive and now they want to raise exchange fees, but other than DAE, I don't know who takes my S A week. I am thinking of trying II, but that adds the additional cost of another company and I'll wait for their offers in the mail. So, I guess my question is how will this be different, better etc.
Liz

 

[PerryM]

My dream exchange company

Here’s my thoughts on the ultimate exchange company:

It should be Points driven based on rental rates.

When someone deposits a week, a rack rental rate would be assigned to the week and that money would be deposited into an account. (Company does this)

e.g. I own 3 Silver Marriotts that each rent by Marriott on the reservation days for $125 per day. 7 * $125 = $875 * 3 units = $2,625 in my account.

I see a January week in Park City to ski for $2,000 and I make the exchange and have $625 in my account.

No mumbo-jumbo, the exchange company has experts who determine the rental rate and the person depositing the unit would be allowed to challenge the rate, for a fee ($50 in the account removed).

It’s all based on reality and no hidden secrets or complicated Points calendars to cook up – just rental rates.

A published sliding schedule would diminish the rental rack rate as the check-in day arrives. E.g. 12 months out the full rack rate, 6 months out 50% rack rate, 30 days out 10% rack rate. Something that would be published and known to all members.

NO units could be turned in for airline tickets so NO units will ever be rented to the public.

If you were short you could pay the difference in cash. E.g. I have $625 left in my account and I see an exchange for $1000 I could pay $375 and I get the exchange.

 

[timeos2]

Hey Perry nice job.

At first I was ready to moan about a weeks based exchange but you covered that immediately with points/dollar based trades. You also cover the key issues:

- Equalization of unequal deposits. By assigning known values in a market based system you eliminate the trade up/down issues of hidden or overly static values.
- Allowance for shortages. A perfect system. If you are short in trade value (dollars) pay the difference in dollars.
- Minimal babysitting needed. By using fair market rates the whole system can run on a web interface with few behind the scenes personnel required.
- No membership for resorts required. By leaving it to the owners themselves the resorts don't have to put up with a big brother or tell owners they "have to" deal with company XXX

If a system like that existed and had owner support it might be the perfect exchange answer. Unfortunately there are far too many vested interests in maintaining the illusion that a week is a week, a big name is important and all trades are equal to ever have it become reality. If the majority of owners realized that they hold the poor 80% of trade value but want the top 20% they would not be happy. An open system exposes that right away as do most points systems. That becomes a very hard sell.

 

[Steve]

This sounds great!

I would be very enthusiastic about this. Heck, I might even apply for a job. I'd love to be part of a team putting together a new business related to timesharing. If done right, this could be a success.

Credibility is a huge issue at the beginning...and I totally agree that having someone involved who not only has tremendous experience in the industry but is also well known and respected in the TUG community...ie, Craig...is an important factor. It's not just what you know but who you know that counts in starting a new business. You've got to get those first customers who are willing to go out on a limb and trust you...they prime the pump for the many who come later once your company has an established reputation.

A new company can work...please keep us updated.

Steve

 

[topcop400]

"Change the X-Change" hasn't checked in since his two posts yesterday asking for ideas.

I think there have been some great ideas given here.