2020 point question please

[mort1331]

So I have been thinking about this ever since they were announced and all the protests, and thankfully backtrack by Disney.
Since from my understanding one of the main points of not being able to do this was the extra points made up by Disney by separating lock offs ( hope that is right ), why then was there not the same issue with the new resorts and dedicated weeks. What I mean is those dedicated weeks needed 10% more points to secure, but if you cancel and get your points and then book that week you have reserved, you would net yourself 10% points to use or bank. If you stayed in your reserved week and did not cancel and rebook, then Disney gets those extra points to do with what they want? Is this correct?
Just looking for understanding and why there was not any issues with this for VGF or Poly.
Thanks.

 

[Frederic Civish]

Hmmnn. I hadn't though about it before, but if Disney establishes a DVC unit at a new resort, and if they aren't supposed to change the point total after that, then by charging a 10% bonus for a Fixed Week, they change the point total! Is that legal? In such cases, shouldn't the extra income from that come back to the DVC members at that resort, and not to Disney?

 

[crvetter]

So I have been thinking about this ever since they were announced and all the protests, and thankfully backtrack by Disney.
Since from my understanding one of the main points of not being able to do this was the extra points made up by Disney by separating lock offs ( hope that is right ), why then was there not the same issue with the new resorts and dedicated weeks. What I mean is those dedicated weeks needed 10% more points to secure, but if you cancel and get your points and then book that week you have reserved, you would net yourself 10% points to use or bank. If you stayed in your reserved week and did not cancel and rebook, then Disney gets those extra points to do with what they want? Is this correct?
Just looking for understanding and why there was not any issues with this for VGF or Poly.
Thanks.

So the way dedicated weeks work is that you own 110% of what was required to book that room for that week on the first year's published point charts. Year to year the points required to book that room can go up or down (even perhaps exceeding the points you actually own). Disney guarantees if you keep the guaranteed week no matter the cost of the points you get the room (and don't have to compete for the room). However, if you don't exercise the week you get the point ownership to use however you would like.

Now there are two cases to consider when the points required to book the week is less than what the guaranteed week owner owns and the other case when the owners doesn't have enough points. In the first case Disney does get those extra points to use as they wish (this is essentially the premium paid to guarantee it). The latter case the extra points required to book the room because it costs more than you own, must be offset using developer points. Essentially it has to come from the points Disney owns. They can not cover it with breakage or anything. So essentially there is no profit back to the association. However, a plus of the guaranteed weeks is it limits Disney how high they can raise certain room costs since it has to come from Developer points (excess points created through lockoff premiums aren't actually points Disney owns that would hypothetically just allow them to more breakage thus they can't be used for this).

Hopefully that provides a bit of clarity. Also if someone owns a guaranteed week they must keep the entire week. If they want to adjust it down to 4 days for example they must wait until 11 months and drop the reservation and rebook it just as every other owner. Starting with CCV they started selling special event rights which is a option on top of Guaranteed weeks for race weekends.

Edit: I should note the points the Owner of the Guaranteed Week owns is the actual 110% and thus that is removed from the inventory during the sales process. Disney doesn't get to sell an extra 10% essentially think of it more as a 10% premium per night booking when they exercise their guaranteed weeks.

 

[mort1331]

Thanks for the great explanation