not necessarily - the same contracts are being sold. Just that loaded ones are more likely to find their way to the resale market rather than being bought by a flipper, stripped, and put on the market as stripped until [year+1]
Commercial renter/strip and flip:
1. commercial renter buys loaded (200 pt) contract at instant sale price of P-20 ($20 pp discount to what they'd sell for on the resale market). This might be worth it to a seller who doesn't want to deal with offers, negotiations, ROFR, etc.
2. Commercial renter takes 3 years (2023 banked, 2024, 2025 borrowed) of points and makes 600 points worth of reservations charging $20pp = $12,000 to the CR. now the effective cost to the CR of this contract is P-80 because they saved $4000 at the initial purchase and netted another $12,000 in rental $$.
3. Commercial renter puts stripped contract on the market for P (price per point)
Say P = $150 (average price per point for that resort) and assume no transaction costs, time value of $:
The original seller gets = $130 x 200 = 26,000
CR pays 26,000 but:
Gets $12,000 in rental $
Puts on the market as a stripped contract at P. Even with heavy negotiating, say they sell at $140, that's $14,000 in profit! (plus we know even the stripped contracts sell for more than the "instant sale" price)
A savvy seller could strip their own contract, say renting 400 points at $18pp and get $7,200, and then sell their contract for $150pp, or even at $140 pp they'd get 28,000, for a total of $35,200.
Or the seller could sell their fully loaded contract at $160 even though it could sell for more and is worth more (because the market undervalues loaded contracts), they'd get $32,000. The new buyer has a choice of renting out the banked points because they can't use them - on this board, $15 pp would go super fast, and the seller will now have paid $145 pp ($3000) for those points (but easily passed ROFR at $160 pp)
As individual owners, I don't see how/why we are squabbling over the "morality" and ethics of walking reservations when individual owners on both sides of a resale transaction would benefit from stripping/flipping being reduced.
More loaded contracts for sale, more options for buyers and sellers. More variety to choose from.