DVC RESALES
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Old 04-27-2012, 06:09 PM   #1
Luv2PixieDust
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DVC vs. Public Inventory

Does anyone know if the DVC inventory ends up going to the public or vice-versa (particularly as the vacation date gets closer)? I can't see Disney wanting to say "no" to someone that wants to pay the rack rate if it is a few weeks before their arrival and DVC inventory is open. Also, it doesn't seem very 'Disney-like' to make a DVC member move from view to view or change room sizes if there is an empty room sitting there that the public did not purchase (especially if the points are less than or equal to what they used).

I suppose it would be difficult to juggle both inventories but isn't the goal to have as many people stay on site as possible?

It would just be very frustrating to not be able to get a room you want or a waitlist fulfilled but check the WDW website and see it open for the public.

I'm a newbie so I'm just trying to wrap my head around all the logistics...
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Old 04-27-2012, 06:18 PM   #2
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Originally Posted by Luv2PixieDust View Post
Does anyone know if the DVC inventory ends up going to the public or vice-versa (particularly as the vacation date gets closer)? I can't see Disney wanting to say "no" to someone that wants to pay the rack rate if it is a few weeks before their arrival and DVC inventory is open. Also, it doesn't seem very 'Disney-like' to make a DVC member move from view to view or change room sizes if there is an empty room sitting there that the public did not purchase (especially if the points are less than or equal to what they used).

I suppose it would be difficult to juggle both inventories but isn't the goal to have as many people stay on site as possible?

It would just be very frustrating to not be able to get a room you want or a waitlist fulfilled but check the WDW website and see it open for the public.

I'm a newbie so I'm just trying to wrap my head around all the logistics...
There are two separate inventories. DVC owns some room that they rent out through CRO. CRO also gets room that people have used the points for trade outs to offset DVC paying for the cruise etc. CRO also get rooms that are not booked 60 days out that may be able to be pulled back to DVC.

The room available to the public are not available for points.

Think of it this way. You sell a used car to your neighbor. It's just sittin in his drive not being used. You want to go somewhere but that doesn't mean you can take what is not yours.

Denise in MI
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Old 04-27-2012, 07:17 PM   #3
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Originally Posted by Luv2PixieDust View Post
I suppose it would be difficult to juggle both inventories but isn't the goal to have as many people stay on site as possible?
Disney cash inventory comes from several sources.

1) Unsold ownership: This includes points in new resorts in undeclared inventory, as well as points obtained through ROFR and foreclosures. These are not points owned by members, but by Disney. There is no advantage to Disney to allow these to go to point usage, other than merchandise, ticket or food sales that may be associated with a visit. Disney can use this inventory however they wish, usually for cash rentals, and sometimes for promotions, like prizes given to Funniest Home Videos or used for the families on the now defunct Home Makeover.

2) Retained inventory: This is the percentage of each resort retained by DVD to use for maintenance. This inventory can also be made available for cash if not needed for maintenance.

3) Trades: This cash inventory comes from members trading out to non-DVC destinations through the Disney Collection, Adventures by Disney, cruises, etc. This inventory also is not used for point reservations, as it technically already is a point reservation. In theory, a member used their points to reserve a room, then exchanged it for another venue. The room is then rented for cash to offset the cost of the trade.

4) Breakage inventory: likely the smallest available cash inventory, these are DVC rooms that were not reserved by DVC Members on points at 60 days. These rooms are turned over to cash reservations, and a percentage of those funds received offset our annual dues. Breakage inventory can be reclaimed by DVC for point usage, if it is not already reserved by cash.

But there will very likely always be cash only inventory that can not be used on points. It is the way the system works.
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Last edited by Chuck S; 04-27-2012 at 09:24 PM. Reason: Typo
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Old 04-27-2012, 09:10 PM   #4
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Originally Posted by Luv2PixieDust View Post
Does anyone know if the DVC inventory ends up going to the public or vice-versa (particularly as the vacation date gets closer)? I can't see Disney wanting to say "no" to someone that wants to pay the rack rate if it is a few weeks before their arrival and DVC inventory is open. Also, it doesn't seem very 'Disney-like' to make a DVC member move from view to view or change room sizes if there is an empty room sitting there that the public did not purchase (especially if the points are less than or equal to what they used).

I suppose it would be difficult to juggle both inventories but isn't the goal to have as many people stay on site as possible?

It would just be very frustrating to not be able to get a room you want or a waitlist fulfilled but check the WDW website and see it open for the public.

I'm a newbie so I'm just trying to wrap my head around all the logistics...
As noted, several baskets of inventory that ends up with cash. The only one that might be shared is the breakage inventory. They will let the room sit empty rather than letting it cross these inventory lines.
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Old 04-27-2012, 09:35 PM   #5
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Wow - very interesting and great information! Although I admit I struggle to understand how it all works. Eventually it will sink in
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Last edited by Luv2PixieDust; 04-27-2012 at 09:41 PM.
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Old 04-27-2012, 09:58 PM   #6
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Forgive me if I am slow on the uptake but help me understand this situation...

We have a Studio-Poolside view reserved at Aulani for the 1st week of September. We decided to upgrade to a 1br but the entire week was not available when checking online at DVC or when we called DVC so we waitlisted. The waitlist was requested 3 weeks ago. I have periodically checked online at DVC and the entire week is still not available.

I keep track of the cash cost of our stays to see when our initial cost will equal to what we would have paid to stay in the same rooms on cash. I was looking online at resorts.disney.go/aulani to get a cash value and a DVC villa, 1br-poolside view was available for our dates. The website specifically stated a DVC villa. I called DVC to check on our waitlist and was told again that nothing was available. The CM could not explain to me why the room we requested was available for cash but not for us to book on points.

The DVC 1br is available for cash only because of the various reasons posted previously. My question is this, will at some point before our trip, will Aulani release that cash only DVC 1br to me to fulfill my waitlist request? Does the fact that I already have a Studio reserved put me at a disadvantage/advantage on the waitlist request because if granted, then our Studio will be available? TIA for your help.
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Old 04-27-2012, 10:02 PM   #7
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Originally Posted by saintstickets View Post
The DVC 1br is available for cash only because of the various reasons posted previously. My question is this, will at some point before our trip, will Aulani release that cash only DVC 1br to me to fulfill my waitlist request? Does the fact that I already have a Studio reserved put me at a disadvantage/advantage on the waitlist request because if granted, then our Studio will be available? TIA for your help.
NO, they will not convert the room over to cash. However they may declare new inventory that will help to fulfill wait lists.
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Old 04-27-2012, 11:14 PM   #8
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Quote:
Originally Posted by saintstickets View Post
Forgive me if I am slow on the uptake but help me understand this situation...

We have a Studio-Poolside view reserved at Aulani for the 1st week of September. We decided to upgrade to a 1br but the entire week was not available when checking online at DVC or when we called DVC so we waitlisted. The waitlist was requested 3 weeks ago. I have periodically checked online at DVC and the entire week is still not available.

I keep track of the cash cost of our stays to see when our initial cost will equal to what we would have paid to stay in the same rooms on cash. I was looking online at resorts.disney.go/aulani to get a cash value and a DVC villa, 1br-poolside view was available for our dates. The website specifically stated a DVC villa. I called DVC to check on our waitlist and was told again that nothing was available. The CM could not explain to me why the room we requested was available for cash but not for us to book on points.

The DVC 1br is available for cash only because of the various reasons posted previously. My question is this, will at some point before our trip, will Aulani release that cash only DVC 1br to me to fulfill my waitlist request? Does the fact that I already have a Studio reserved put me at a disadvantage/advantage on the waitlist request because if granted, then our Studio will be available? TIA for your help.
Disney will only release rooms to be sold based on sales demand, it's called declaring units into the association. They do not pay dues on undeclared units, and they are free to use them as cash inventory and they keep 100% of the money.

According to my DVD sources, Aulani is not meeting sales projections so they will be using the DVC rooms for cash inventory for some time to come.

Bill
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Old 04-28-2012, 12:14 AM   #9
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Disney will only release rooms to be sold based on sales demand, it's called declaring units into the association. They do not pay dues on undeclared units, and they are free to use them as cash inventory and they keep 100% of the money.

According to my DVD sources, Aulani is not meeting sales projections so they will be using the DVC rooms for cash inventory for some time to come.

Bill
And that is not surprising, considering one of their target groups for purchasing Aulani is Japan. With the earthquake/tsunami disaster, their disposable income for travel is unlikely to recover for sometime.
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Old 04-28-2012, 12:52 AM   #10
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Originally Posted by Luv2PixieDust View Post
Does anyone know if the DVC inventory ends up going to the public or vice-versa (particularly as the vacation date gets closer)? I can't see Disney wanting to say "no" to someone that wants to pay the rack rate if it is a few weeks before their arrival and DVC inventory is open. Also, it doesn't seem very 'Disney-like' to make a DVC member move from view to view or change room sizes if there is an empty room sitting there that the public did not purchase (especially if the points are less than or equal to what they used).

I suppose it would be difficult to juggle both inventories but isn't the goal to have as many people stay on site as possible?

It would just be very frustrating to not be able to get a room you want or a waitlist fulfilled but check the WDW website and see it open for the public.

I'm a newbie so I'm just trying to wrap my head around all the logistics...
The inventory that belongs to the Disney company and the inventory that's owned by the members is kept very separate. There are very specific, contractually defined situations in which rooms from the member inventory can be rented out for cash, and the proceeds for those rentals are generally used for our (the members') benefit.

One of those situations is where a member exchanges out of the DVC system - for instance, uses points for a DCL cruise. DCL wants to be paid in cash for that, so DVC sends a room of comparable value over to CRO to be rented, to get the money to pay DCL for the member's cruise booking. Think of it as a way to convert points to cash. Those rooms can't be pulled back into the member inventory once they've been sent over to pay for an exchange because,well.....then how would the member's DCL cruise be paid for?

The other situation is breakage inventory - rooms that are still not booked by members at 60 days out goes to CRO to be rented for cash, and that income comes back to the members to offset our dues. These rooms can be pulled back to the member inventory, if a member calls to book them after the 60-day point.

The other situation where you see DVC villas being rented for cash is Disney's own part of the inventory. A very small (< 10%) part the inventory at each resort is kept by Disney.

So, to answer your question.....Disney can't just grab rooms out of the member inventory to rent for cash for their own profit. They don't belong to Disney - we own them - so Disney has no right to take them and sell them, even if they aren't being used.

You also asked why we, the members, can't just take rooms out of the cash inventory if we want them and there aren't any in the points inventory. If the rooms are part of the breakage inventory, Members Services can get them back. If they're being used for an exchange,they can't be pulled back. If they're part of the small piece of inventory that Disney owns, they don't belong to us, and we can't take them, any more than Disney could take the inventory that we own.

Hope that helps a bit.
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Old 04-28-2012, 08:45 AM   #11
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According to my DVD sources, Aulani is not meeting sales projections so they will be using the DVC rooms for cash inventory for some time to come.

Bill
Predictable, hey wait, I did predict it. IMO, the Japan issue is only a small component. Unless DVC actually gets into the sales game, they will not be able to compete with the big boys. They can get far more aggressive in the sales arena and still be appropriate and professional, Marriott, Westin and a few others do it every day. I'd rather not see them sink to the level of some others but would understand if they did. If they don't do something different, it's extremely likely this will be the last off property resort for some time to come if not ever. Unfortunately it may already be too late in that regard. There's even a real risk that the resort would exit the DVC system at some point in the next few years if sales are slow enough and the hotel is sold off.
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Old 04-28-2012, 11:18 AM   #12
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Wow - very interesting and great information! Although I admit I struggle to understand how it all works. Eventually it will sink in
maybe it's easier to understand that all of it is points inventory but some of the pts are owned by disney.

if you use your pts to reserve a 2BR villa and need to rent it out for cash, that's an option you have, right?

disney owns some pts (and manages some pts when owners trade out of the system), so when they reserve a villa with their pts, it makes sense that that reservation is theirs to do with as they please...
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