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Discussion in 'DVC-Mousecellaneous' started by going/again, Sep 3, 2011.

  1. going/again

    going/again DIS Veteran

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    If offering free dining & 42% off at SSR & OKW was not enough they are now giving $150 spending money too, Are we DVC's being taken for a ride, are our dues paying for this :confused3
     
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  3. disneynutz

    disneynutz DIS Veteran DIS Lifetime Sponsor

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    No our dues aren't paying for this.

    Disney has their own inventory at DVC resorts that they need to fill. Contrary to popular belief, Disney is a company who is in it to make a profit. If discounting rooms, including dining in the cost, and giving extra perks makes them money, that is what they will do. They do not have an allegiance to the DVC Members.

    :earsboy: Bill
     
  4. DebbieB

    DebbieB DIS Veteran

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    I think indirectly the members are affected by this. This is why the points for non-DVC resort options keep going up. When members trade out to these options, it's opens up a DVC room that CRO has to rent. Unfortunatly, especially at OKW & SSR, they are having a hard time filling them and have to practically give them away to get something back for them. I think it's part of the reason resales can no longer trade out to the Disney Collection, they don't want more rooms that they have to rent through CRO and lose money on.

    Where I fault Disney is they built SSR too big and can't fill it.
     
  5. going/again

    going/again DIS Veteran

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    So who pays for the extra mouse keeping they get it every day, is it not priced at around $25 for a studio and are owners being made to wait while they do these rooms, its also priced at £971 for the free dining with the 42% plus the minimum of $25 dollars a day for mousekeeping are they are still making a profit?, or are we subsidizing this
     
  6. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    Disney pays for it. Our dues pay for our maintenance. Our dues pay for our stays.

    Fault your fellow members who want to trade out their points for ABD, DCL, or non-DVC Disney resorts.
     
  7. DebbieB

    DebbieB DIS Veteran

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    If they are rooms that are left at 60 days, there will be less breakage income in the dues statement. But if the room is left empty, there will be no income.

    DVC has also limited the number of cruise rooms to reduce the number of rooms going to CRO.
     
  8. going/again

    going/again DIS Veteran

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    Is this fact can it be proved ?, or is it what you believe happens, I would like to believe this but the sceptic in me cant help but think we are paying for this somehow.
     
  9. Carl'n'Ellie'sDad

    Carl'n'Ellie'sDad Ballooneer

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    Those are the "rules" -- declared inventory is for members. When members trade in their points for other DVC options, CRO has to make the best of it. I know most of us think JL has played his cards sharply, but selling declared inventory for cash would attract the interest of some government officials. Nothing like that has happened recently, right?:scared1:

    In all seriousness, IMO DVD probably views these bargains for SSR, particularly for the UK, as a loss-leader (really a "small-profit" leader) to encourage travel to the World and DVC membership. You might not have considered Disney as a destination; you get a great deal on villa accommodations. Suddenly you are thinking on impulse "Maybe I want to do this more often.". You don't know anything about the resale market -- $15K doesn't seem like that much for five to seven days each year at SSR, particularly if you don't focus on the member fees. The tides talk about all of these wonderful options on and off property. And Disney's "given" you such a bargain already ;). It would be tempting...
     
  10. MinnieGirl33

    MinnieGirl33 Hockey Mom

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    Is it showing 42% off the USD rate or the converted rate?

    If the discount is off the USD then I can understand the reduced rate a bit better when you consider the Euro is currently about .70 on the USD and if TPTB want to keep the Brits coming they need to adjust accordingly.

    I do understand the beef though.
     
  11. RDP

    RDP DIS Veteran

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    I am a DVC member and accept for now Disney is going to provide incentives to get people to come to WDW. I have made this work to my advantage by banking my points every other year and using the deals and free dining in-between. That way I get bigger accommodation when I DVC and I get the free dining and the discount when I pay cash (I also still get to stay in DVC accommodation )
     
  12. Steve@BWV

    Steve@BWV Earning My Ears

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    What is the true cost to DVC when DVD rents out these rooms at a such a low rate? There is no way for us to know but we do know there is never a benifit for DVC.

    These rooms need full housekeeping every day. Are additional staff brought in everyday these rooms are cleaned? My guess there is a simple reimbursement rate from DVD to DVC. But what is the impact and does the reimbursement cover the cost? There are supplies, wear and tear on equipment, slower room turn around, extra linens, etc. I would guess DVC did not push too hard for a high reimbursement to cover the true cost.

    Also, with DVD charging such a low rate there is a direct impact on the value of points at specifically SSR but DVC in general. Carl'n'Ellie'sDad says this is a good way to generate sales. Perhaps a few but how many are dissuaded from laying out $15K plus $750 a year in dues for a room only when you can get the room, all your meals and $150 in pocket money, and park tickets for 1/2 the rate most DVC members could hope to secure? I know I would laugh at the salesman.

    There is a reason SSR has not come close to being sold out and DVD undermining the value does not help. SSR will always be the worst preforming WDW DVC resort if DVD treats it as such.
     
  13. going/again

    going/again DIS Veteran

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    My feelings exactly if these offers had been around when we purchased we would never have done so, but now would lose to much to sell.
     
  14. going/again

    going/again DIS Veteran

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    Think about the MF's and then wouldnt you want the bargain again instead?
     
  15. Chuck S

    Chuck S DVC Boards Co-Moderator Moderator

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    Given that this discount is ONLY available to people in the UK, I do not see how it affects the value of any US owners, as such a cash deal is not available to us at all. And given that UK visitor usually stay much longer than the typical 5 to 7 days of US guests, it very well may be worth it to offer this deal to the UK and have those rooms filled for a longer period of time.

    Empty rooms at DVC resorts, especially if those rooms are member inventory that was turned over to CRO to offset member trades outside the DVC system benefits no one...least of all DVC Members. Empty cash room would lead to fewer and fewer outside trade options, as evidenced by the restrictions on resale buyers.

    Perhaps those complaining would be happy with no cash equivalent trade out options, relying only on RCI for non-DVC options?
     
  16. RDP

    RDP DIS Veteran

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    Us Brits deal in pounds sterling, currently the exchange rate is around $1.59 to the pound, this does almost make the years I use my DVC instead of cash almost as expensive, but as I said in my earlier post at least I get larger accommodation by banking my points every other year and using cash to take advantage of the deals.
     
  17. going/again

    going/again DIS Veteran

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    Since I have no interest in trading out wouldnt bother me one bit, but as it's devalueing my home resort, that I do care about.
     
  18. Deb & Bill

    Deb & Bill DVC-Trivia Contest, Apr-2006: Honorable Mention

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    Or increasing the amount a member pays to make one of the trades from $95 per trade to $295 or higher per trade.
     
  19. Garthilk

    Garthilk Mouseketeer

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    Actually this is not entirely true.

    Our dues do pay for housekeeping. The more rooms are turned over due to crazy disney promotions, the more housekeeping and housekeepers are required to clean those rooms. Also the more housekeepers the more healthcare costs associated for any benefited positions.

    So our dues do pay for our housekeeping. They also pay for theirs.
     
  20. DebbieB

    DebbieB DIS Veteran

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    The question is how much money does DVC get back from the room rate that CRO guests pay. Is it enough to cover the housekeeping costs? We'll probably never know.

    Rooms are not "turned over due to crazy disney promotions". They are turned over when members trade out, when rooms are empty at 60 days or rooms DVC itself owns. Disney does whatever they need to do to fill these rooms, rather than leave them empty and get no income.
     
  21. Tink2312

    Tink2312 <font color=magenta>I didn't ask to be a princess

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    Don't forget the added bonus of marketing the DVC resorts too. We were considering DVC before we spent 2 fortnight trips at SSR but these stays definitely convinced us that DVC was the way to go.
    I no longer want/ need this offer now I'm a member but have no problem with it still running - like pp said, us Brits tend to stay 2-3 weeks and Disney gets back the income from us in other ways. Rather have that than rooms sitting empty. However I can understand the frustration if the resort is rammed with "free diners" during your holiday at SSR/OKW - ultimately though the offer won't last forever :)
     

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