Can Disney change the cost for OTU points?

[bwvBound]

... but that leads me to another question...what is DVD doing with the money that it earns from the sale of the points?

I don't know what DVC/DVD does with the OTUP revenue, but at least two of my other timeshares use similar revenue to off-set member dues. As such, it is quite beneficial for all owners -- even those who never rent a single OTUP!

 

[DebbieB]

Didn't OTU come out when they reallocated points charts to go up on weekdays and go down on weekends?

 

[CarolMN]

I don't know what DVC/DVD does with the OTUP revenue, but at least two of my other timeshares use similar revenue to off-set member dues. As such, it is quite beneficial for all owners -- even those who never rent a single OTUP!

Unless the OTUP are coming from Developer-owned inventory, the revenue should go to Members. It's really the same as breakage inventory or the inventory that MS determines will not be booked for points and can be offered to Members for cash. Since MS is doing the booking, DVC doesn't have to compensate CRO/DRC for booking.

 

[Dean]

Unless the OTUP are coming from Developer-owned inventory, the revenue should go to Members. It's really the same as breakage inventory or the inventory that MS determines will not be booked for points and can be offered to Members for cash. Since MS is doing the booking, DVC doesn't have to compensate CRO/DRC for booking.

If it were breakage inventory (which can be anticipated up to 11 months out), that could be another source that might end up in DVD's pocket rather than members.

 

[CarolMN]

If it were breakage inventory (which can be anticipated up to 11 months out), that could be another source that might end up in DVD's pocket rather than members.

Agree, but only if the total breakage income for the resort exceeds the cap. The cap is 2.5% of the resort's operating budget. I haven't been tracking this, but if my calculations for the BWV are correct, BWV breakage income was not budgeted to reach the cap for either 2016 or 2017.

 

[Dean]

Agree, but only if the total breakage income for the resort exceeds the cap. The cap is 2.5% of the resort's operating budget. I haven't been tracking this, but if my calculations for the BWV are correct, BWV breakage income was not budgeted to reach the cap for either 2016 or 2017.

I believe historically it generally has.

 

[CarolMN]

I believe historically it generally has.

Too lazy to go look for all the past budgets to see if my "theory" is supported by data, LOL, but that won't stop me from saying that breakage income that is less than the cap leads to good things happening for Members.

It's my belief that lower breakage was one factor that led to online booking. When Disney saw the MS staffing was going to increase and cost them more than the DVC provided fees / mess with their profit margin, we got online booking. (First we got rule changes that reduced calls - i.e., book from check in date to stop need for day-by-day calling that arose from booking by check out date).

If lower breakage continues, we may see rule changes that depress renting and then, perhaps enhancements to online booking to allow modifications.

We'll see.

 

[bobbiwoz]

What they did wrong IMO was selling THV and telling buyers that it's a great value, they can stay in a THV for the same number of points as a SSR 2-bedroom, selling out the points then increasing the required points for the THV.

Bill

In this, I entirely agree with you Bill!


I also remember still using current year's charts during the time they were selling BLT on board a cruise I was on, when I, as a Member knew the next year's charts would be different because they lowered weekend stays and raised weekday nights.