Monorail DVC and Dues

[OldsDr]

I was going to put this in the thread discussing DVC at Poly but thought it was way too off topic


I have always understood that one of the reasons Monorail resorts are so expensive is that they are responsible for funding maintenance from the room charges. Is that correct?

So how does that work with DVC and dues? Are dues at the DVC monorail resorts being directed to monorail maintenance? If so could dues be disproportionately(excessively) affected at monorail resorts compared to other DVCs if the monorail maintenance gets even more expensive; (which I think it will continue to do)?

 

[beer dave]

I was going to put this in the thread discussing DVC at Poly but thought it was way too off topic


I have always understood that one of the reasons Monorail resorts are so expensive is that they are responsible for funding maintenance from the room charges. Is that correct?

So how does that work with DVC and dues? Are dues at the DVC monorail resorts being directed to monorail maintenance? If so could dues be disproportionately(excessively) affected at monorail resorts compared to other DVCs if the monorail maintenance gets even more expensive; (which I think it will continue to do)?

Interesting point-- Technically, the monorail does not go through BLT, and the use of the monorail is complementary to any of the resort guests-- the benefit of BLT ( and now GF) is the proximity to the monorail.. maybe...

but- I would be cautious of buying any ownership in a " monorail resort" because of the possibilities of my above statement being wrong. It would be like buying a condo (at full price or above) where the association was broke.

 

[OKW Lover]

I believe that there is a logical formula for allocating transportation costs between DVC and resort rooms at those properties that have both. Its based on room capacity I think. So, BLT (and VGF) member dues would include costs for bus, watercraft and monorail service.

 

[Spacedog1975]

I think the point about all resorts having transportation of one sort or another is well made. I would think that they continuing cost of the Monorail is actually less expensive than that of the busses. The biggest reason the Monorail hasn't been extended is that the initial outlay is substantial.

 

[disneynutz]

I was going to put this in the thread discussing DVC at Poly but thought it was way too off topic


I have always understood that one of the reasons Monorail resorts are so expensive is that they are responsible for funding maintenance from the room charges. Is that correct?

So how does that work with DVC and dues? Are dues at the DVC monorail resorts being directed to monorail maintenance? If so could dues be disproportionately(excessively) affected at monorail resorts compared to other DVCs if the monorail maintenance gets even more expensive; (which I think it will continue to do)?

DVC owners pay for everything with their dues, transportation, security, landscaping, pool chemicals, front desk, any expense that you can think of. Disney is very good at sharing any cost that they can.

Bill

 

[longrf01]

Our disclosures for VGF clearly show a transportation budget which goes from our maintenance fees to Disney. Now, exactly what voodoo they do to come up with that number and allocate portions thereof to bus / monorail / flying carpet is unknown to me.

 

[ParrotBill]

and the dues for VGF came in a little below what everyone was thinking, quite comparable to Boardwalk, so I don't see DVC Dues being disproportionate because of the monorail.

 

[awilliams4]

I was going to put this in the thread discussing DVC at Poly but thought it was way too off topic


I have always understood that one of the reasons Monorail resorts are so expensive is that they are responsible for funding maintenance from the room charges. Is that correct?

So how does that work with DVC and dues? Are dues at the DVC monorail resorts being directed to monorail maintenance? If so could dues be disproportionately(excessively) affected at monorail resorts compared to other DVCs if the monorail maintenance gets even more expensive; (which I think it will continue to do)?

I believe a portion of my BLT dues goes to the Monorail operations. I believe it would just fall under Transportation though on your annual statement.

 

[DenLo]

DVC resorts do pay for transportation in their dues. And who knows how it is portioned out. Since everyone coming to MK has the opportunity to use the monorail the expense of maintenance would not solely be charged to the MK resorts. Even MK would be charged for use and maintenance of the monorail. I wouldn't worry about the needed upgrades. The resorts around MK are expensive more because of location than because of the monorail.

 

[doconeill]

Isn't BLT on the cheaper side of dues as well? Perhaps monorail costs are much cheaper than bus costs?

 

[DanInMN]

As an MBA with 35 years in Corporate America I suggest that Disney bases all fees and charges on maximizing profits, period. If they charge any less they reduce profits, and if they charge any more the demand for something goes down just enough to reduce profit too. Pricing is not based on cost, but on perceived value by the consumer.

 

[doconeill]

As an MBA with 35 years in Corporate America I suggest that Disney bases all fees and charges on maximizing profits, period. If they charge any less they reduce profits, and if they charge any more the demand for something goes down just enough to reduce profit too. Pricing is not based on cost, but on perceived value by the consumer.

For legal reasons I believe they have to account for those fees, so they can't just make them up out of the air.

 

[crisi]

and the dues for VGF came in a little below what everyone was thinking, quite comparable to Boardwalk, so I don't see DVC Dues being disproportionate because of the monorail.

Dues for a resort for the first year or two are estimated - and its in Disney's best interests to estimate low during an active sales period. Almost all the resorts have seen one bigger than normal bump two or three years after opening when they have a real spend for the previous few years to run a budget from - and when sales have slowed down.

(Don't estimate too low though, or they end up with Aulani's problem).

 

[crisi]

For legal reasons I believe they have to account for those fees, so they can't just make them up out of the air.

Yep, Florida timeshare law. Have to be externally audited. DVC takes a 15% management fee. But even with the external audit - there is a lot of accounting wiggle room when doing cost allocations. For instance, BWVs transportation costs per point are higher than BCVs. Why? We don't know (but suspect its to compensate for standard view rooms that have a lower point value -but just as many guests using transportation)

 

[beer dave]

Yep, Florida timeshare law. Have to be externally audited. DVC takes a 15% management fee. But even with the external audit - there is a lot of accounting wiggle room when doing cost allocations. For instance, BWVs transportation costs per point are higher than BCVs. Why? We don't know (but suspect its to compensate for standard view rooms that have a lower point value -but just as many guests using transportation)

Possibly because the stop at BC includes a higher percentage of non DVC guests , so the sharing of the stop costs leans towards the regular resort, with the DVC building accounting for a lower percentage of stop costs. Based on total DVC compared to total BC capacity divided into bus stop costs.

 

[disneynutz]

Isn't BLT on the cheaper side of dues as well? Perhaps monorail costs are much cheaper than bus costs?

Many feel that BLT dues were "mistakenly" set low and since it has sold out, it is being adjusted. The last 2 years we have seen 6% plus increases.

Bill

 

[doconeill]

Possibly because the stop at BC includes a higher percentage of non DVC guests , so the sharing of the stop costs leans towards the regular resort, with the DVC building accounting for a lower percentage of stop costs. Based on total DVC compared to total BC capacity divided into bus stop costs.

I wonder how bus sharing factors in as well, given that BW shares with Swan/Dolphin while BC shares with YC...

Not something most of the other DVC resorts do.

 

[doconeill]

Many feel that BLT dues were "mistakenly" set low and since it has sold out, it is being adjusted. The last 2 years we have seen 6% plus increases.

Bill

Probably the same accountant that figured it out for Aulani....

 

[EagleScout]

Yep, Florida timeshare law. Have to be externally audited. DVC takes a 15% management fee. But even with the external audit - there is a lot of accounting wiggle room when doing cost allocations. For instance, BWVs transportation costs per point are higher than BCVs. Why? We don't know (but suspect its to compensate for standard view rooms that have a lower point value -but just as many guests using transportation)

Agreed - LOTS of wiggle room. These really are all just estimates, and disney has four separate pools of people on which to make estimates and share allocations- people staying at non-dvc portion of resort (either cash reservations or non-dvc portion of resorts), people staying at other disney resorts, park guests not staying at disney, and visitors to resorts not necessarily staying at any resort or visiting parks, but still spending money. With this much wiggle room, it really is a business decision, b/c there is such a wide range that would be defensible legally.