Coronavirus and next dues increase

[ajiuo]

Does anyone think this whole Corona virus will have a major effect on how much they raise dues for 2021, 2022, and beyond?

It will most certainly effect ticket prices, food and merchandise. They will have to make up lost revenue, especially since they are continuing to pay people while this shutdown takes place over what could end up being months.

 

[SL6827]

Does anyone think this whole Corona virus will have a major effect on how much they raise dues for 2021, 2022, and beyond?

It will most certainly effect ticket prices, food and merchandise. They will have to make up lost revenue, especially since they are continuing to pay people while this shutdown takes place over what could end up being months.

Good question. I have no idea.

 

[crvetter]

Does anyone think this whole Corona virus will have a major effect on how much they raise dues for 2021, 2022, and beyond?

It will most certainly effect ticket prices, food and merchandise. They will have to make up lost revenue, especially since they are continuing to pay people while this shutdown takes place over what could end up being months.

Since MF are billed at cost (aside from transportation) it shouldn’t have a material increase in dues because it’s hard to argue that expenses have raised when costs been cut (less staff needed because stuff is closed or less transportation expenses). There could be more empty rooms too meaning less maintenance and cleaning costs. If anything I suspect it has no effect on dues (not even a decrease because next year the resorts would be open).

Making MF a revenue stream will result in a huge lawsuit likely.

 

[CarolynFH]

The MFs we’re paying now are for this year, so if expenses are less than estimated then there could be a surplus which might be applied as a credit to our 2021 MFs or added to reserves - as they do when property taxes are less than estimated. This wouldn’t be like hurricane damage that causes increased expenses.

 

[Sandisw]

Only thing I can think of is breakage. If travel is down, so will room reservations.

Is it possible for it to dip below the maximum?

 

[CarolynFH]

Only thing I can think of is breakage. If travel is down, so will room reservations.

Is it possible for it to dip below the maximum?

Interesting question, since they’ve always allocated the maximum breakage income to the owners, so we have no idea how far over that they normally go! We won’t know until the budgets come out in December, and we’ll know only if the breakage income is less than previously.

 

[_auroraborealis_]

MF don't have any relationship to revenue from tickets, food or merch. MF solely cover resort operating expenses, and I believe all dining and retail at resorts are excluded as they are self-supporting.

 

[zavandor]

Disney has announced they'll continue to pay the CM during the closures of the parks and I imagine that will apply to resorts employees as well. Which is the right thing to do.
So while expenses for salaries won't go down, there won't be extra time needed, cost for cleaning products, fuel for transportation etc etc. If there is a decrease in breakage, it may be balanced by other savings. I don't think MF will change much either way.

 

[ozliz]

I’m really hoping that the MF flatten out for a year or two. As a foreign owner my MF are going to be scary next year as my country’s exchange rate has crashed so anything that keeps that under control would be nice. I am however supportive of them continuing to pay staff and support them through this time. I’m in employment where I have some certainty of continued income and a big stockpile of sick days if I do catch the virus so I hope others manage to do the same for their staff when they can.

 

[mort1331]

We will see what happens as they just announce the closure off all WDW resorts and the Springs as of fri.

 

[Sandisw]

I saw that the Skyliner won't be running so it will be interesting to see if a few weeks...more like I think a month or so...has any impact for the dues at RIV.

 

[anniet]

It will most certainly effect ticket prices, food and merchandise. They will have to make up lost revenue, especially since they are continuing to pay people while this shutdown takes place over what could end up being months.

Disney has taken pretty steep price increases and has had large attendance numbers for the past few years. Once they do reopen I doubt that they will be flooded with guests. My best guess is that prices may come down before they go up.

 

[Chuck S]

We may see a credit for transportation, since busses won't need much maintenance and fuel while they are parked. I know I would not want to be an accountant trying to figure out DVC Dues for next year,

 

[The Prophet]

As far as DVC dues goes, I expect little or no change -- After all we are locked in for the next 20- 50 years
Maybe cost of living increases, that's it

The discounts will be found in theme park admissions, hotel stays, dining plans and vacation packages.
Disney's stock will most likely get hammered this quarter and they will need a way to bring customers back to the parks globally when they re-open