Help with DVC points rental?

[Brian Noble]

As I understand it, breakage revenue goes directly to the association---probably after some WDTC costs are accounted for. But, there is a cap on how much breakage revenue is remitted to the association, and Disney (in some form) keeps any overage. Because most resort budgets include the maximum amount of breakage revenue possible, it is likely that there is more (and maybe a lot more) that Disney gets to keep.

For internal trades (ABD, DCL, etc.) I assume that there is some price that DVCMC "pays" the providing unit for each vacation, computed based on the retail price. DVCMC rents the backing inventory for whatever it can get, and adjusts points over time to make sure they don't come out at a loss after accounting for melt (inventory they can't rent) etc.

 

[Chuck S]

Pretend an owner has 100 points. The points are expiring 2/28/2015. If the owner doesn't find someone to rent his 100 pts, then they expire. The owner takes a loss. BUT the villas don't sit vacant... Disney-the-property-manager still sells those vacancies for a much larger sum. (Disney.com rents the villas for triple the points' value.) Wouldn't you call that a gain for the manager (Disney)?

That's why I think the seller of DVC (Disney) AND the manager of DVC (Disney) comes out ahead on every square footage.

Not really. Disney cash DVC Reservations come about in several ways.

1) Disney owns a small portion of points at all DVC Resorts. Those points are used to take rooms out of service for maintenance. If no maintenance is needed, then they can rent them as a cash reservation.

2) A DVC Member trades into the Disney Collection, Adventures by Disney, or a cruise. Those points are turned over to cash reservations to offset the cost of the trade out venue. There is an automatic percentage built in to the cash price of the rental for Disney to make some profit.

3) Empty Rooms (AKA breakage inventory) - any DVC room left unreserved at 60 days out is turned over for cash reservations, DVC receives a portion of the rental back, this offsets our resorts dues somewhat.

The actual hassle of a DVC Owner personally renting out their points is really no different than someone who has a home in the Orlando area that they use for vacation rentals. You could say, though, that many vacation home owners use a property management service to do the rentals for them. Think of David's (and similar services) as that Property Manager for DVC.

Does Disney profit slighty from unused room....yes, but not as much as what they would profit for a hotel room that they wholly own outright.

 

[FamilyMan4]

Sorry if I post this in the wrong area.
But I am just finding out about this DVC renting, and trying to get all the info I can.

If I go through David's (as many ppl suggest for first time renters) will I be able to link that reservation to My Disney Experience account?
Will I be able to link any ADR's my MDE account?

I would only be looking for a one night stay, (its after a Disney Cruise, we are going to be sticking around for one night to go to MNSSHP)
But I am mostly concerned with not being able to link our MagicBands to that reservation

 

[vicki_c]

FamilyMan, the answer to those questions is yes. It works just like any on property stay for those purposes.

However, I think David's has a minimum rental and your one night might not hit that depending on the limit and number of points needed for the reservation you are thinking of. Definitely check the website yourself and see what his parameters are.

 

[FamilyMan4]

Ok thanks vicki I appreciate the advise!

 

[cola]

.....As far as short-notice booking, I don't know what you mean by that. ... If you can find someone and get an agreement in place, DVC members can make reservations 1 day in advance.

DVC members can even make same day reservations if they phone up, it can't be done online, though you can check availability online (just have to manually type the date rather than click on the calendar).

 

[crisi]

DVC members can even make same day reservations if they phone up, it can't be done online, though you can check availability online (just have to manually type the date rather than click on the calendar).

From the standpoint of a renter though, that's not practical. Even for a member, booking day of is "subject to availability" - and often doesn't pan out. For someone looking to rent points, finding a member willing to make a reservation any quicker than a cashiers check or paypal will clear will be nearly impossible.

In practical terms, a very last minute DVC rental is a few weeks out to find someone with points to rent who can make the reservation. And is not likely to work well for anything longer than a night here and there because at that point, stringing together a week vacation often involves moving rooms.

A last minute DVC reservation is a few months out. And at certain times of year isn't likely to meet expectations for the same reason.