Gf fixed week?

[wdrl]

I, too, have a Guaranteed Week chart for VGF for 2013-2014. The 52 numbered weeks are placed into 16 different price breaks. A one-bedroom Lake View costs as little as 326 points for the cheapest weeks (1-3, 36-38, 49) and as high as 606 points for the most expensive weeks (15-16).

As we toured the VGF models today, a Guide told us the Grand Villa fixed weeks for Christmas have sold out.

 

[ELMC]

I, too, have a Guaranteed Week chart for VGF for 2013-2014. The 52 numbered weeks are placed into 16 different price breaks. A one-bedroom Lake View costs as little as 326 points for the cheapest weeks (1-3, 36-38, 49) and as high as 606 points for the most expensive weeks (15-16).

As we toured the VGF models today, a Guide told us the Grand Villa fixed weeks for Christmas have sold out.

For those of you keeping score at home, that's a $190,385 purchase. I wonder if they financed.

 

[erionm]

The fixed weeks do not all cost the same. I saw a chart somewhere, but don't remember where. Wish I would have bookmarked it.

Tim just posted the chart at DVCNews.com.

http://dvcnews.com/index.php/resort.../2295-grand-floridian-guaranteed-week-details

 

[Airb330]

While a great option for some, 7 nights in WDW is too long for me. I prefer shorter trips. I know I'd prefer Saturday-Saturday over Sunday-Sunday as well. I like to have one day between the end of a week-long vacation and work.

My only concern with these fixed weeks is it puts extra pressure on other owners. I'm thinking of purchasing 50 points for short 2-4 day December or October trips, but not necessarily every year. I know those are popular DVC times, and that is why I'd want the 11 month window. I'd be extremely annoyed to not be able to snag a standard studio for a weekend in December at 8AM online on the 11 month window. Between fixed week owners & those who walk their reservation, I'm afraid inventory for studios will be tight even for VGF owners.

 

[icouldlivethere]

I was just looking at the fixed week points chart and wondering why on earth are weeks 15 & 16 so much more expensive than the other weeks during magic season. With Easter being at a different time each year and spring breaks being at different times each year, why did they pick on those 2 weeks.

 

[tjkraz]

This still sounds like DVC isn't maximizing on the fixed weeks. The way they have it working if a person was looking to purchase in order to stay for a week - and it was anything that was a remotely popular time - then why wouldn't they buy a fixed week? It seems that it is discounted even at the so called 10% premium and yet they lose out nothing on the premium if they decided to not use that particular week.

And it seems like a detriment to non-fixed week owners at the resort.

The exact numbers are going to vary from year-to-year because of seasonal adjustments to the point charts. But bear in mind that the Fixed Week value is a 50 year AVERAGE of the cost for that week, PLUS another 10%.

Just to use a hypothetical, let's assume the charted cost for a given week in a given villa is:

2013: 400 pts
2014: 325 pts
2015: 355 pts

If those three years were the basis for the calculation, DVC would average it to 360 points and then ADD another 10%. You would have to buy 396 points to secure the fixed week.

I suppose you could look at it as a "win" in 2013 since the 396 owned is less than the 400 required to book the week. However, the reality is you could have simply bought the average of 360 points and used banking and borrowing to balance out needs over the long haul.

On a point-for-point basis, it would be tough to "win" with the Fixed Week in the long run because you own 10% more points than you would otherwise have had to buy for the same stays. (I supposed you could manipulate opt-out years to reap some added benefit--only opting-out when annual costs for the Fixed Week are low.)

As for it being a detriment to points owners at the resort, that is a possibility. But it will only become an issue for periods of the absolute highest demand. Even with the Fixed Week, I doubt we will see a dramatic rise in owners being unable to secure a reservation at exactly 11 months.

I suspect you're giving up the right to have smaller contracts (though I haven't checked this out) and you're limited to buying the number of points that match.

That is correct. For example, Week 47 in a Two Bedroom Lake View would be a single contract of 532 points.

 

[abner1776]

Hey...such a deal...a grand villa(lake) weeks 51 or 52 will average 1288 points or $187,000 at $145/p plus annual dues of somewhere around $8,000...I'm game...time to empty out the 401k account !!!

 

[lovin'fl]

A question that I have is: if we bought week 39 studio lake view and wanted to go for 3 or 4 nights of the 7, could we rent the other 3-4 nights to someone? How would they make that reservation? If I rented out thur, fri and sat nights (69 points at $13pp), it would cover that year's MF.

 

[tjkraz]

A question that I have is: if we bought week 39 studio lake view and wanted to go for 3 or 4 nights of the 7, could we rent the other 3-4 nights to someone? How would they make that reservation? If I rented out thur, fri and sat nights (69 points at $13pp), it would cover that year's MF.

Can't answer your question but even if it is feasible, I think you'd have your hands full trying to find someone willing to pay $900 for those exact three nights.

 

[lovin'fl]

Can't answer your question but even if it is feasible, I think you'd have your hands full trying to find someone willing to pay $900 for those exact three nights.

It's a F&W weekend, that may help.

 

[tjkraz]

It's a F&W weekend, that may help.

Sure but you're competing with many other DVC owners renting points who can offer infinite flexibility.

If you held onto the room until just 3-4 months out when other VGF studios are long filled, you could get a nibble. But I think it's far more likely that potential renters will want more nights / different nights, larger villa, different resort, cheaper resort, etc.

 

[lovin'fl]

Sure but you're competing with many other DVC owners renting points who can offer infinite flexibility.

If you held onto the room until just 3-4 months out when other VGF studios are long filled, you could get a nibble. But I think it's far more likely that potential renters will want more nights / different nights, larger villa, different resort, cheaper resort, etc.

Yeah...I think we'll just keep watching for a small add on at BCV for 3-4 nights at F&W each year (that's where we really want to be anyway).

 

[KAT4DISNEY]

IMO the potential losses are that if you only use (or rent) the fixed week you are paying more yearly in dues as well as the up front premium. I suspect you're giving up the right to have smaller contracts (though I haven't checked this out) and you're limited to buying the number of points that match. For some that could be a great option, for others it'd simply be 10% higher costs.

After seeing the points charts I see that much of the basis of my question was incorrect as it was coming from the poster that seemed to say they had purchased a week 52 for 139 points and that the fixed weeks were discounted. I must have misunderstood what week they purchased.

So it seemed obvious in my head from that info to at least purchase a week 52 or some other discounted week if it was ever possible you might use it since you can cancel the week without any penalty at all. But I'm still surprised at the pricing and lack of "penalty" - ie you get points one for one if you cancel the week - so it still might make the most sense for a particular buyer who often visits in a popular week even if they thought they'd only go that specific week every 3-6 years and would cancel it for other times or resorts in other years. Or even more so for a new buyer with contract minimums although that brings up another question of what DVC will require from a new buyer if they want to purchase a week in a studio that would be 139 points but the minimum is 160? One of the lessons learned from the 2 years of point reallocations, and in a small part to the point change made at BLT prior to opening, a cushion can be a good thing and in the meantime they could work the fixed week nicely by using it in high cost years and cancelling and booking with points in other years when they want to go at other times. As I understand it Aulani's fixed week have what sounds like a true 10% upcharge and you don't have the 10% extra points to use when you cancel a week. The VGF only has a premium price if, as you mentioned, a person only ever used it for the week the purchased.

Overall it seems like DVC is missing an opportunity to maximize profits with this pricing model on the fixed weeks and by taking up to 35% of the rooms out of the pool at the most popular times (as I assume those are the ones that will sell the fixed weeks) the remainder of the VGF purchasers are losing as well with less availability.

I did see one post of a person that split a contract and still received the fixed week so that may not be given up - or may have happened by mistake.

.......and that there are people who will definitely be able to take advantage of and even exploit this option. But I think that will be the exception to the fixed week option and not the rule.

Yes, it probably would be minimal but the savvy buyer could make it work out very well. And there were enough of those over the years who figured out how to maximize their purchase with Sun-Thur stays but it is a fixed number of weeks this would probably work with so probably not much if any impact. And I'd guess that some who buy are going to be just as apt to let the unit sit empty during years they can't make it.

(I supposed you could manipulate opt-out years to reap some added benefit--only opting-out when annual costs for the Fixed Week are low.)

This is along the line I was thinking although less so than when I thought week 52 (and perhaps others) were actually discounted at 139 points.

 

[ELMC]

I think what we're overlooking here is the effect that the cancellation policy will have on availability. If a fixed week owner is required to cancel prior to the 31 day mark, that releases inventory at the time of cancellation. Will it be turned over to CRO or will it be available for DVC members to book using points? If the latter, then there may be a new paradigm of booking at VGF that includes the key dates of 11 months, 7 months and also 31 days.

 

[tjkraz]

Overall it seems like DVC is missing an opportunity to maximize profits with this pricing model on the fixed weeks and by taking up to 35% of the rooms out of the pool at the most popular times (as I assume those are the ones that will sell the fixed weeks) the remainder of the VGF purchasers are losing as well with less availability.

It's all relative, though. Lower availability but fewer owners with the ability to reserve. Unless they opt-out, of course.

I think what we're overlooking here is the effect that the cancellation policy will have on availability. If a fixed week owner is required to cancel prior to the 31 day mark, that releases inventory at the time of cancellation. Will it be turned over to CRO or will it be available for DVC members to book using points? If the latter, then there may be a new paradigm of booking at VGF that includes the key dates of 11 months, 7 months and also 31 days.

The room will be available for points reservations. The Guaranteed Week owner is being given points to spend on other accommodations within the system. As such, their previously-reserved GW villa must be returned to the system and made available for reservations.

As for the timelines, we'll have to wait and see how it plays out. Owners cannot bank the points or use them for another reservation until they have opted-out. Some may wait until the last minute to cancel. I think more will be either making adjustments at 11 months (tweaking dates) or attempting to book elsewhere 7 months prior to some preferred travel date.

 

[Dean]

I was just looking at the fixed week points chart and wondering why on earth are weeks 15 & 16 so much more expensive than the other weeks during magic season. With Easter being at a different time each year and spring breaks being at different times each year, why did they pick on those 2 weeks.

It's because of the fact that the dates that might fall outside the premier dates are Magic season for weeks 15 & 16 where for Xmas and NY's they are Dream or Adventure season plus the 10% increase.

A question that I have is: if we bought week 39 studio lake view and wanted to go for 3 or 4 nights of the 7, could we rent the other 3-4 nights to someone? How would they make that reservation? If I rented out thur, fri and sat nights (69 points at $13pp), it would cover that year's MF.

You could cancel and rebook as 2 separate reservations but you might lose part or all of the reservation. You could simply trade off during the week privately but that creates issues with CC and DP usage.

 

[Dean]

After seeing the points charts I see that much of the basis of my question was incorrect as it was coming from the poster that seemed to say they had purchased a week 52 for 139 points and that the fixed weeks were discounted. I must have misunderstood what week they purchased.

So it seemed obvious in my head from that info to at least purchase a week 52 or some other discounted week if it was ever possible you might use it since you can cancel the week without any penalty at all. But I'm still surprised at the pricing and lack of "penalty" - ie you get points one for one if you cancel the week - so it still might make the most sense for a particular buyer who often visits in a popular week even if they thought they'd only go that specific week every 3-6 years and would cancel it for other times or resorts in other years. Or even more so for a new buyer with contract minimums although that brings up another question of what DVC will require from a new buyer if they want to purchase a week in a studio that would be 139 points but the minimum is 160? One of the lessons learned from the 2 years of point reallocations, and in a small part to the point change made at BLT prior to opening, a cushion can be a good thing and in the meantime they could work the fixed week nicely by using it in high cost years and cancelling and booking with points in other years when they want to go at other times. As I understand it Aulani's fixed week have what sounds like a true 10% upcharge and you don't have the 10% extra points to use when you cancel a week. The VGF only has a premium price if, as you mentioned, a person only ever used it for the week the purchased.

Overall it seems like DVC is missing an opportunity to maximize profits with this pricing model on the fixed weeks and by taking up to 35% of the rooms out of the pool at the most popular times (as I assume those are the ones that will sell the fixed weeks) the remainder of the VGF purchasers are losing as well with less availability.

Marriott prices those type of weeks independently and generally give you 10-20% less points if you convert over and give up your week. I do agree that DVC may have missed some opportunities to maximize profits. The truth is that had it been Marriott they'd have sold the entire week as fixed weeks and the only weeks that the other owners would have potential access to would be if the owner elected points instead of their fixed week.

 

[wdrl]

I think what we're overlooking here is the effect that the cancellation policy will have on availability. If a fixed week owner is required to cancel prior to the 31 day mark, that releases inventory at the time of cancellation. Will it be turned over to CRO or will it be available for DVC members to book using points? If the latter, then there may be a new paradigm of booking at VGF that includes the key dates of 11 months, 7 months and also 31 days.

If a Fixed Week Owner opts out of their fixed week, then the dates become available for other members to book using the same rules that apply when a traditional points reservation is cancelled. The normal Breakage Inventory rules apply as well: If a fixed week is canceled within 60 days of check-in and no Member tries to book it, the accommodation can be turned over to CRO for Disney to rent out as a cash reservation.

I don't think there will be a new paradigm of booking at VGF due to possible Fixed Week cancellations, at least not one that is noticeable. A Fixed Week Owner may cancel at 7 months relative to the alternative reservation they are making -- not relative to the actual Fixed Week. For example, a Fixed Week Owner who has VGF Week 51 in 2014 might want to cancel his week to book Aulani for Spring Break in March 2015. He would probably wait until August 2014, when the 7-month window opens for March 2015, before he cancels his fixed week.

 

[ELMC]

If a Fixed Week Owner opts out of their fixed week, then the dates become available for other members to book using the same rules that apply when a traditional points reservation is cancelled. The normal Breakage Inventory rules apply as well: If a fixed week is canceled within 60 days of check-in and no Member tries to book it, the accommodation can be turned over to CRO for Disney to rent out as a cash reservation.

I don't think there will be a new paradigm of booking at VGF due to possible Fixed Week cancellations, at least not one that is noticeable. A Fixed Week Owner may cancel at 7 months relative to the alternative reservation they are making -- not relative to the actual Fixed Week. For example, a Fixed Week Owner who has VGF Week 51 in 2014 might want to cancel his week to book Aulani for Spring Break in March 2015. He would probably wait until August 2014, when the 7-month window opens for March 2015, before he cancels his fixed week.

I see your point, and it makes sense, but what about the owner who holds a reservation but is unsure whether or not they are actually going on vacation at all? I think that there are a decent number of people who do this, and there may be more given the flexibility of cancelling a fixed week reservation on short notice combined with the ability to bank those points into the following year. So instead of your example of cancelling at the 7 month window for the new reservation, cancelling at the 31 day window of the fixed week with no new reservation made. But I do agree, even if this does happen, it would be nearly impossible to track. Best we could do is hear about a few random stories about people being able to book VGF a month in advance.

 

[tjkraz]

I see your point, and it makes sense, but what about the owner who holds a reservation but is unsure whether or not they are actually going on vacation at all? I think that there are a decent number of people who do this, and there may be more given the flexibility of cancelling a fixed week reservation on short notice combined with the ability to bank those points into the following year. So instead of your example of cancelling at the 7 month window for the new reservation, cancelling at the 31 day window of the fixed week with no new reservation made. But I do agree, even if this does happen, it would be nearly impossible to track. Best we could do is hear about a few random stories about people being able to book VGF a month in advance.

People do that now. There are enough occurrences of people getting waitlist requests around 31 days out to define something of a trend. I'm not sure that we'll notice any difference with VGF.

If a WL is filled at 31 days, it may prompt people to think it's related to a Guaranteed Week cancellation. But we'll never know the exact circumstances. People get their waitlists met all the time at resorts which don't have Guaranteed Weeks.