On Worldmark Guest Certificate fees/housekeeping credits not transferring with rented credits

[chemteach]

I think the housekeeping tokens not transferring with credit rentals and guest certificate fees are all smoke and mirrors if Worldmark suggests these would have any impact on a megarenter. A 72,000 point account gets 7 housekeeping credits and 8 guest certificates. (I think...) That covers more than what they need for six 12,000 point rentals. If that person rents in 144,000 points, they now need to spend an extra $200ish in housekeeping and guest certificates for a 12,000 point rental - so their profit goes from $860 to $660 if they can rent a 12,000 point unit for $1700. That isn't going to keep a renting owner from renting out their unit. It's just going to decrease their bottom line by about 25% on rented in credits. Posts suggest that some people believe Worldmark instituted fees to change the renting habits of megarenters. Certainly it hurt their bottom line, but it wouldn't stop someone from renting units out unless they believed that earning $660 for doing very little work other than knowing some workaround to the 13 month reservation rule was not worth the money. It seems to me that the new costs (having to pay for a housekeeping token and a guest certificate fee) for transferred credits used for reservations are just a bonus to the management company because they earn at least 10-15% in management fees for every dollar spent running the Worldmark system. The more money coming in, the more management can earn. If these new fees actually ultimately lower current maintenance fees (doubtful) that could help the average owner.

 

[jrogersok]

Exactly! Mega renters just pass the cost on. The regular owners are who actually are hurt by this.


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[ecwinch]

As I see it commercial renters can be divided into two broad groups - those who reserve and market reservations involving resorts that must be booked 13 months out and those who engage in "on-demand" bookings. On-demand renters dont hold inventory, and from what I can see they make the majority of their bookings using the cash bookings. When someone requests a booking with them, they simply check to see if the dates are available, and if so they confirm the reservation.

And that is the group that the GC change is targeting. IMHO, the AirBnb crowd is a very price sensitive market and increasing their cost by $100-$150 can easily price them out of the market. In particular for short reservations (1-3 days).

It is true that for the first group that GC's or HK token bans will have little impact. Given the price point and length of their bookings, they can readily pass on the cost or accept a little less profit. Those renters are the target of the rules that impede their ability to make credit reservations, by limiting the credits they can transfer in. Forcing them to scale up their investment in the Club by growing their accounts. As some will tell you, before that rule they were able to operate with a very small investment in the Club.

In the scheme of things, the first group does considerable harm to the Club. But first group has always been around, and the AirBnb enabled growth of the latter group is the immediate danger.

Just go over to AirBnb and search for Windsor CA. Then count how many ads you find for the Worldmark resort. Last time I counted, it was 100+. Then drill down into the profile for those AirBnb hosts, and see how many other WM resorts they are making available on AirBnb. One I checked was offering availability at 25+ resorts.

 

[CO skier]

Exactly! Mega renters just pass the cost on. The regular owners are who actually are hurt by this.

Regular owners do not have to pay a fee for their reservation.

The guest fee applies only to reservations for a guest check-in, which would obviously impact megarenters, and not regular owners.

 

[CO skier]

I think the housekeeping tokens not transferring with credit rentals and guest certificate fees are all smoke and mirrors if Worldmark suggests these would have any impact on a megarenter. A 72,000 point account gets 7 housekeeping credits and 8 guest certificates. (I think...) That covers more than what they need for six 12,000 point rentals.

That would also cover more than what an owner would need for six 12,000 point family reunion reservations.

Seems fair.