Can DVC do this..?

[Dean]

Out of curiosity, what happens at the end date of a resort? Can disney simply start selling the points again or do they have to tear down the building and rebuild since it is owned by the members?

That's the easy part, it will be theirs to do with as they want. They can tear it down, resell it or use it for college housing or just rent it. The real issue is how they wind it down since there are not enough villas in the system to handle everyone getting all points the last UY for points, 2041.

 

[zemra406]

The real issue is how they wind it down since there are not enough villas in the system to handle everyone getting all points the last UY for points, 2041.

Is this due to banking? If they curtail banking towards the end there theoretically shouldn't be a problem, right?

 

[hakepb]

Is this due to banking? If they curtail banking towards the end there theoretically shouldn't be a problem, right?

If needed, DVD should restrict banking and/or borrowing to keep the system in balance. (I think that's in the POS)

They could offer a "generous" points trade-in towards a new contract the last 3 years to give DVD more old points to play with. (I realize many members will gladly finish their contract with no intent to buy more)

 

[Dean]

Is this due to banking? If they curtail banking towards the end there theoretically shouldn't be a problem, right?

Mathematically speaking there simply aren't enough villas in the system for everyone to use all 2041 points given the expiration in Jan, 42. Just think about getting all Dec, 41 points and having 2 months to use them. Even if there are extensions, it'll only kick the can down the road but it may get things on a more even keel to tend them later. This is independent of banking but banking can make it even worse. I don't think there's enough cushion that borrowing can provide to fix this either.

 

[supersnoop]

Mathematically speaking there simply aren't enough villas in the system for everyone to use all 2041 points given the expiration in Jan, 42.

Yes, there are. That's a fundamental basis for the points system; there are enough points in any year to fill every room (minus ~2%). Between February 2041 and January 2042, all 2041 use year points can be accommodated.

 

[Dean]

Yes, there are. That's a fundamental basis for the points system; there are enough points in any year to fill every room (minus ~2%). Between February 2041 and January 2042, all 2041 use year points can be accommodated.

Not looking at the last year alone there aren't enough villas within the resorts in question and within the 2041 UY to use all of the points that can be issued within a given UY without accounting for borrowing. Any surplus inventory in previous years or borrowed points, which the system relies on to stay in balance, will not be applicable in this situation. Now there are ways to handle it but these will need to include some combination of banking restrictions, possibly borrowing restrictions, and/or some allocation system the last couple of years.

 

[zemra406]

Good point about the December use year. Maybe they will let them use their points through sometime in 2042. But then they could run into the reverse problem with occupancy being too low and no dues to cover it.

 

[Dean]

Good point about the December use year. Maybe they will let them use their points through sometime in 2042. But then they could run into the reverse problem with occupancy being too low and no dues to cover it.

I'm expecting zero usage after the RTU end date but there are other options they could use. Borrowing helps up to a point but ultimately there will have to be some type of reduced usage the last UY, maybe a lottery or something similar.

 

[Brian Noble]

My guess: they are going to allow Members to relinquish the last year or two at no cost, in exchange for not having to pay Dues. There will be enough Members at that point for whom travel will be difficult and/or inherited points that don't always get used that there should be plenty of takers to solve this problem.

 

[Dean]

My guess: they are going to allow Members to relinquish the last year or two at no cost, in exchange for not having to pay Dues. There will be enough Members at that point for whom travel will be difficult and/or inherited points that don't always get used that there should be plenty of takers to solve this problem.

My best guess is no banking the last 3 years (starting with 2039 UY), voluntary opt out without fees the last UY only and/or a lottery OR first come first serve the last year but no dues on unused points.

 

[Meandnevaeh]

My best guess is no banking the last 3 years (starting with 2039 UY), voluntary opt out without fees the last UY only and/or a lottery OR first come first serve the last year but no dues on unused points.

But if they do that then it should only be a policy for the owners of resorts that will be expiring, not owners of the newer resorts.

 

[Dean]

But if they do that then it should only be a policy for the owners of resorts that will be expiring, not owners of the newer resorts.

That would be my assumption as well.