EXCHANGE COMPANY UPDATE – Q & A
When did the Club enter into an exclusive agreement with RCI?
Wyndham Vacation Clubs South Pacific, the responsible entity for Club Wyndham South Pacific, entered into an agreement with RCI in 2009.
Why did the Club enter into an exclusive agreement with RCI?
RCI was and continues to be the world’s leading timeshare exchange provider with access to more than 4,200 resorts in 110 countries – more than any other exchange provider and has been the exchange provider chosen by the majority of our Club owners.
Following a lengthy negotiation with RCI in 2009 regarding commercial terms, Wyndham Vacation Clubs South Pacific, the responsible entity for Club Wyndham South Pacific, entered into an agreement with RCI with the intent that RCI would become the exclusive timeshare exchange provider for Club Wyndham owners. In exchange, Club owners benefited from significant reductions in exchange fees.
An exclusive arrangement has a number of benefits – the most important benefit is the ability to negotiate significant cost savings that can be passed on to owners.
Limiting the exchange providers also allows the Club to streamline processes and reduce internal administrative resources and costs.
Why did you allow DAE and Interval International exchanges if there were no arrangements?
The Responsible Entity has previously entered into an affiliation agreement with Interval International and has been aware that some owners have continued to maintain their membership and has continued to allow these exchanges to be facilitated in recent years.
Our teams have never actively facilitated DAE transactions or attempted to drive membership in DAE as there has never been any formal agreement with DAE. However, since under the DAE model individuals can deposit their inventory with DAE regardless of whether there is any formal agreement or affiliation between RCI and DAE, some owners have chosen to exchange directly with DAE.
Why allow transition for Interval International?
The Responsible Entity has previously entered into an affiliation agreement with Interval International and the agreement with RCI acknowledged that dealings with Interval International would be progressively removed to allow the expiry of membership.
What about the variety DAE offers across the South Pacific?
DAE offers 94 resort options in Australia, New Zealand and the South Pacific, while RCI offers more than 160 and has a strong presence elsewhere in the world.
There may be some locations that DAE offers which RCI does not, but RCI have assured the Responsible Entity they are continuing to expand into new markets.
What if I have just renewed my DAE/Interval International membership?
If you have recently renewed your membership with Interval International, we will be phasing out the ability to use this over the next 12 months, so you will continue getting value from it.
While we have not encouraged membership with DAE It is up to each owner whether they chose to take advantage of their RCI membership. Again, we are not able to facilitate any DAE exchanges.
Why is this happening in the middle of COVID-19?
The timing has not been deliberately selected; but is in response to RCI enforcing the exclusivity of its agreement.
Isn’t DAE owned by RCI?
Although DAE, like RCI, is a business unit of the same parent company, it is run as a separate business and offers different services and properties.