New RCI Domestic Exchange fee $164!

[Elli]

Well, that does it. We've prepaid RCI till 2012 because of S. Africa, but if I can ever get S. Africa straightened out it will go to DAE and I may join II for Welk and SFX will get my Gaslamp or maybe both of my US resorts! That price is ludicrous. SFX is still $99 per exchange.
Liz

Liz, SFX has gone up as well, but they only charge 109.00.
Elli

 

[topcop400]

I just telephoned RCI to cancel my membership extension. The rep asked me why I was canceling. I mentioned the fee increase and (of course) he knew nothing about it.

Sooooo........I asked him if he knew that RCI was being sued in a class-action suit. Didn't know that either.

He canceled my extension.

 

[T_R_Oglodyte]

I just telephoned RCI to cancel my membership extension. The rep asked me why I was canceling. I mentioned the fee increase and (of course) he knew nothing about it.

Sooooo........I asked him if he knew that RCI was being sued in a class-action suit. Didn't know that either.

He canceled my extension.

Are you sure he canceled your extension? You might think he did, but he might have canceled the cancellation of your extension.

 

[short]

I don't know why everyone is so surprised by the price increase. RCI has to pay for all the big attorney fees to defend themselves in some lame class action law suit.

Short

 

[topcop400]

Are you sure he canceled your extension? You might think he did, but he might have canceled the cancellation of your extension.

Well, his last words were that a credit will post to my credit card statement next month. I will certainly be watching my statement.

 

[T_R_Oglodyte]

I don't know why everyone is so surprised by the price increase. RCI has to pay for all the big attorney fees to defend themselves in some lame class action law suit.

Short

LOL.

That's like the tobacco company settlements. They know people are not going to stop smoking, so they simply raise the price sufficiently to cover the cost. Further, because of the limits on advertising and promotions, they don't have to worry about some upstart cigarette maker (who doesn't share in the financial burden) being able to capture the market by undercutting prices.

RCI is much the same. As long as RCI and II are as big as they are, they can push the price as high as they believe they can get away with.

 

[rickandcindy23]

Re: The solution

Many of them will give certificates for a free exchange to HOA's for their annual meeting doorprizes. DAE has done that with several resorts on the OBX, and I am aware that others will, too.

The free postage for HOA newsletters if they include a brochure, offered by DAE and Platinum and perhaps others, is helpful to the HOA, too.

We should be suggesting all of these things to our HOA's.

I actually did get several companies to give us free exchanges and free weeks for our annual meeting last year. I was so excited, four door prizes from alternate exchange companies, and there I was, wanting a board position for Twin Rivers. The management company said our exclusive contract with II prohiibited using other companies and the board and themanagement company would NOT BUDGE on the subject.

Needless to say, all of the flyers and certificates went into the garbage at my house. I was angry and still am. Now I am on the board and feel no different than before. I am still unheard and misunderstood.

 

[donnaval]

Wow.

I've only been an RCI member for a year now. In that short period of time, my RCI costs have increased through:

- Last Call rates increased and availability all but destroyed
- PFD fee imposed
- Nightly Stays through Points fees increased
- Guest Certificates for online reservations went from free to $49 each
- Penalty for cancelling reservation after 24 hours from $109 to $119
- Exchange fees increased
- Points schedule "adjusted" so that my good red week can't reserve
a comparable good red week in another resort unless I book inside the
45-day window

Yikes. If Fairfield didn't pay my RCI fee, I'd drop RCI. I hate to think what's in store with my second year of RCI membership.

I have already spacebanked one 2007 week with DAE. Looks like I'll be depositing my other non-Fairfield weeks with SFX or DAE as well.

 

[timeos2]

I don't know why everyone is so surprised by the price increase. RCI has to pay for all the big attorney fees to defend themselves in some lame class action law suit.

Short

That exact premise crossed my mind as well. Even if the whole lawsuit turns out to be nothing, the most likely result, they are still being forced to pay to defend themselves. That cost is now going to be charged directly to the end users via these new fees. It isn't unexpected, as many have said thats exactly what a class action would result in. Even with a win the legal costs are spent so you won't see the fee go back down - ever. It may help hasten the end of weeks if enough owners do walk away (I don't actually think many will).

The real interesting thing will be when II follows with their increase (I can almost guarantee they will as they'll feel the market can bear it). They don't have a suit to defend (yet) so it's pure profit for them if they raise fees. Heavens knows they aren't investing in better or redundant systems.

 

[chemteach]

I don't know why everyone is so surprised by the price increase. RCI has to pay for all the big attorney fees to defend themselves in some lame class action law suit.

Short

I'm not so familiar with your stance on RCI - but I thought this was complete sarcasm when I read it. RCI already has the highest fees I know of, and is the largest exchange company. They are already making a huge profit. They just want a larger profit.

Of course, the places I want to go are in RCI, so I'll have no choice but to pay an additional $15 for my trades. Not happy about it, but the RCI members themselves are pretty powerless here. I don't believe many people will walk away from RCI due to a $15 increase. But HOAs could make a difference if enough resorts switched over to II due to the increase. I still don't see that happening, either...

Edye

 

[short]

I'm not so familiar with your stance on RCI - but I thought this was complete sarcasm when I read it. RCI already has the highest fees I know of, and is the largest exchange company. They are already making a huge profit. They just want a larger profit.

Of course, the places I want to go are in RCI, so I'll have no choice but to pay an additional $15 for my trades. Not happy about it, but the RCI members themselves are pretty powerless here. I don't believe many people will walk away from RCI due to a $15 increase. But HOAs could make a difference if enough resorts switched over to II due to the increase. I still don't see that happening, either...

Edye

This is mostly sarcasm and some opinion. I do believe the class action law suit is lame and will result in higher fees. If RCI wins we have higher fees. If RCI loses we have higher fees and a $10 coupon in the mail good for $10 off an much higher exchange fee someday in the distant future. Either way the consumer does not win. The lawyers do.

As to my opinion on RCI rentals, I sense it would be wildly unpopular.(kind of like my support for higher gas prices)

Short

 

[Carolinian]

From what I have learned about some of those involved with the class action lawsuits, I am confident that there are key folks involved who will seek real, meaningful reform, not just a slap on the wrist and a big payout for the lawyers, as too often happens with class actions.

I remember Cendant's corporate filings after the last increase where they stated that they had increased profits on a lower volume of exchanges because they had increased the fees. I think that comes closer to the mark this time as well.

 

[mav]

I called RCI and 2 different reps told me that the fee is still $149.

 

[timeos2]

I called RCI and 2 different reps told me that the fee is still $149.

The new rates don't take effect until 9/10/06. It seems the only notification so far has been to the affiliates not the rank and file.

 

[discodan]

Re: RCI Garbage Truck Photo

Dan,

I've got to have a picture of that RCI garbage truck - can you get one and share it with us? This would make a great Father's day gift for us.

Anyone have an II garbage truck rumbling around their streets?

Here is the garbage truck:
http://www.rcienvironnement.com/ang/ser1.html , they also have portable toilets... DAN

 

[JillChang]

And a nudge toward the mini-systems.

If you can find a mini that has resorts in lots of places you want to visit, you simply reserve where you want to stay, with no exchange fee and no waiting on tenterhooks for a reservation to come through.

When you want to visit someplace outside your system, use an independent or rent.

Exactly what I am thinking right now. I am even trying to go a step further and try not to use independents at all. Rent!

 

[eal]

It has never occurred to me to ask the resort's permission to deposit my week with any exchange company I choose. Am I missing something? I use dae, htse, SFX, trading places and platinum and the unit just gets deposited into the appropriate account because I designate it to go there. How can a resort prevent you from using any exchange company you want, whether they are formally affiliated with RCI or not?

 

[reddiablosv]

It has never occurred to me to ask the resort's permission to deposit my week with any exchange company I choose. Am I missing something? I use dae, htse, SFX, trading places and platinum and the unit just gets deposited into the appropriate account because I designate it to go there. How can a resort prevent you from using any exchange company you want, whether they are formally affiliated with RCI or not?

THey Can't!!! Ben

 

[Carolinian]

THey Can't!!! Ben

The problem is that some of them think they can. They are not familiar with anti-trust law, and only see the provision in the RCI/II contract. Fortunately, that represents only a relatively small minority of resorts, but it can be a pain if one happens to be YOUR resort. More and more seem to be getting the message. My neighbor who owns both on the OBX and in Orlando ran into that problem with her Orlando resort the first year she tried to deposit it with DAE, but now that resort gives no problem with DAE deposits. A number of UK resorts that were taking this position got their chains jerked pretty hard by the UK Department of Trade and Industry which opened a formal inquiry on this monopolisitic practice. The problem seems to be taken care of there.

 

[Walt]

RCI Is Both and Exchange Company and a Rental Company.

This is mostly sarcasm and some opinion. I do believe the class action law suit is lame and will result in higher fees. If RCI wins we have higher fees. If RCI loses we have higher fees and a $10 coupon in the mail good for $10 off an much higher exchange fee someday in the distant future. Either way the consumer does not win. The lawyers do.

As to my opinion on RCI rentals, I sense it would be wildly unpopular.(kind of like my support for higher gas prices)

Short

What is the cause of all of the increases in RCI's Membership Fees over the last several years? Is it because of the Class Action Lawsuits or is it the actions of Cendant that is the cause of the Class Action Lawsuits?

Being both an Exchange Company and a Rental Company is the real problem. If they were only an Exchange Company there would not be any Class Action Lawsuits about the many RCI rental programs.

You are placing the blame on the wrong party. The Lawyers are not the problem. RCI many rental programs are the problem.

As for the reason for all of the increases over the last several years----extra profit is the reason.

How can more expenses be the reason? They are doing more and more online Exchanges. I would assume they have reduced the number of VC's because of the online Exchanges. How many long time VC's do they have on their VC staff? Long time VC's would be getting higher wages than new VC's. And where are the VC's located? ---In Counties with lower wages? When I do call RCI, I never seem to get anyone that really knows what they are talking about. And they are renting more and more weeks at higher and higher rental fees with no cost to them...our spacebanked weeks.


Walt

 

[PerryM]

You will pay for all of this

I’m going to make a prediction about the class-action lawsuits – RCI will win; and their members will pay for all of this. You can bookmark this and call me on the carpet when this suit is settled.

It doesn’t matter if RCI actually wins the lawsuit – what possible harm is RCI doing to mankind? This is going to be seen as a complex, convoluted, abstract case where maybe someone didn’t get a good enough vacation - maybe. Our 12 jurists (or whatever number), who cannot figure out how to get out of jury duty, are going to figure this out?

Like so much US litigation, this is going to make two law firms extremely rich and I’d bet few of those lawyers owns a timeshare that uses RCI.

This, unfortunately, is how business is done in America anymore – anyone with $25 can file a lawsuit against any company and cause two law firms to get rich while the customers pay for all this dribble.

We need tort reform in the US – this case will be another example of how the legal system is being used to wage war on American business; and make no mistake about this – this is a war by many in this country against US enterprise – it’s viewed as evil by them.

P.S.
I’m going to add a definition of WIN – RCI’s profits will increase up to, though, and past the lawsuits and the Cendant stockholders will make even more money. This will be a bug splattering on the windshield that will be wiped off by the consumers – thanks to all the lawyers and courts involved with this.

 

[short]

Re: You will pay for all of this

I’m going to make a prediction about the class-action lawsuits – RCI will win; and their members will pay for all of this. You can bookmark this and call me on the carpet when this suit is settled.

It doesn’t matter if RCI actually wins the lawsuit – what possible harm is RCI doing to mankind? This is going to be seen as a complex, convoluted, abstract case where maybe someone didn’t get a good enough vacation - maybe. Our 12 jurists (or whatever number), who cannot figure out how to get out of jury duty, are going to figure this out?

Like so much US litigation, this is going to make two law firms extremely rich and I’d bet few of those lawyers owns a timeshare that uses RCI.

This, unfortunately, is how business is done in America anymore – anyone with $25 can file a lawsuit against any company and cause two law firms to get rich while the customers pay for all this dribble.

We need tort reform in the US – this case will be another example of how the legal system is being used to wage war on American business; and make no mistake about this – this is a war by many in this country against US enterprise – it’s viewed as evil by them.

PerryM,

I couldn't have said it better. I total agree.

Short

 

[Zib]

I just picked up a 2 bedroom Gold Crown week on the Big Island of Hawaii for next April through Platinum Interchange with my Mayan studio! Haven't used RCI for a long time. I think they discriminate against week owners. Thank heavens for the smaller,BETTER exchange companies.

 

[Gadabout]

That's like the tobacco company settlements. They know people are not going to stop smoking, so they simply raise the price sufficiently to cover the cost. Further, because of the limits on advertising and promotions, they don't have to worry about some upstart cigarette maker (who doesn't share in the financial burden) being able to capture the market by undercutting prices.

But for those who don't use them (or don't smoke), it is a total non-issue. I think the biggest effect of the lawsuit will be to put people on notice that there IS a problem (I'm sure there are people out there who don't realize that there is one), and that alone may cause people to not renew--and then they don't have to care what the exchange companies do.

 

[quiltergal]

I just emailed my resort to see if they have a dual affiliation with RCI and II. If they are affiliated with II I may switch over in 2008 when my RCI membership expires. Eagle Crest does not exchange through SFX except in summer months. I own ski weeks, so that's not an option. If I switch to II am I just acquiring a different set of problems? How is the learning curve?