CoVID 19 Points Fate

[Sandisw]

I thought that DVC just guarantees to cover any shortfall in the budgets in lieu of paying dues? Either way, MF's pay for the cost of operating the resorts so just because the rooms are not declared into DVC it doesn't mean that they aren't paying expenses already.

Hmm...I always understood it to be as long as rooms were not declared, and not part of DVC, then there are no dues on those points.

If we are paying for the entire cost to run a resort, why would they hold off declaring inventory?

It doesn’t seem right that DVC owners are paying for all the rooms when they can’t book them. I will have to see if I can find where I read that

ETA: I found what I read in the POS. RIV has 341 but only 69 are declared. The budget for MFs is based on those 69 homes...that’s what it says at the top

So, I think you Are right, they cover the shortfall, but I interpreted that to mean all unsold points from declare inventory since there are no owners to dues for them

The more units declared, but not sold, increases the shortfall that DVD would be responsible for, no?

 

[KAT4DISNEY]

Hmm...I always understood it to be as long as rooms were not declared, and not part of DVC, then there are no dues on those points.

If we are paying for the entire cost to run a resort, why would they hold off declaring inventory?

It doesn’t seem right that DVC owners are paying for all the rooms when they can’t book them. I will have to see if I can find where I read that

No, it's not that they aren't paying MF's whether declared or not. As I understand from a couple of other posters DVC has never elected to take that route - they have instead guaranteed to cover any shortfalls (which could be intentionally built into the budget where they would expect to cover expenses based on their expectations of points unsold). But they are paying for expenses at the resort even thought rooms are not declared otherwise it would be a case where members were paying for all costs. While not declared they will pay for resort operational costs. While declared but unsold they agree to cover any budgetary shortfalls - ie they pay for resort costs. Since they wouldn't make the sold points pay for all the resort expenses they must be paying resort costs just as they would even if the rooms were not declared. Just my understanding.

Declaring the points does put them under the guidelines of the oondo association though.

 

[Sandisw]

No, it's not that they aren't paying MF's whether declared or not. As I understand from a couple of other posters DVC has never elected to take that route - they have instead guaranteed to cover any shortfalls (which could be intentionally built into the budget where they would expect to cover expenses based on their expectations of points unsold). But they are paying for expenses at the resort even thought rooms are not declared otherwise it would be a case where members were paying for all costs. While not declared they will pay for resort operational costs. While declared but unsold they agree to cover any budgetary shortfalls - ie they pay for resort costs. Since they wouldn't make the sold points pay for all the resort expenses they must be paying resort costs just as they would even if the rooms were not declared. Just my understanding.

Declaring the points does put them under the guidelines of the oondo association though.

Okay, I think I see what you are saying. DVD cover resort operations regardless...for anything not sold.

But, once declared they become available for points based booking. Wouldn’t that then reduce the amount of money DVD can get to offset those costs?

If they stay undeclared, DVD remains in control and keeps them as part as cash, right?

 

[KAT4DISNEY]

Okay, I think I see what you are saying. DVD cover resort operations regardless...for anything not sold.

But, once declared they become available for points based booking. Wouldn’t that then reduce the amount of money DVD can get to offset those costs?

If they stay undeclared, DVD remains in control and keeps them as part as cash, right?

I'd have to pick up my POS again to brush up on that. I was going thru it earlier today about acts of god, catastrophes etc so it's out but I haven't read about declarations and inventory for quite awhile.

 

[Aussie RJ]

I'd have to pick up my POS again to brush up on that. I was going thru it earlier today about acts of god, catastrophes etc so it's out but I haven't read about declarations and inventory for quite awhile.

Ahhh ha! But is this an act of God or a... nah better not

 

[CarolMN]

Whether DVD is or isn't paying dues, by declaring the rest of Riviera into the condominium, they would be giving up the revenue the villas they own generate. Essentially, they would be "gifting" stays in those rooms to DVC Members. That's a lot of $$$ to be giving away, especially considering all the other losses Disney is sustaining.

 

[Lewisc]

The question is how much publicity regarding DVC members with expired points will hurt future sales. That will determine what, if anything, Disney is willing to do. Could members with expire points be charged $3 -$5 per point to use their expired points. Could that be enough to defray maintenance costs for Riviera?

 

[JohnGypsy]

DVC has said it is allowing points to go back to their original use year. If you're using current use-year points or borrowed points that works out fine.

I just want to point out that there are lots of people "using current use-year points" where that does not "work out fine." There are many of us who are in a situation similar to this: they have a June Use Year and used 2019 points to book a stay in April or May. So, they are using "current use-year points" that, when their vacation is cancelled, will have their points go back into that current use year -- where it is already past the point to bank and there is nothing else to book in time, of course.

I just wanted to mention it because there seems to be a lot of people that think this only affects people who are using banked points. There are actually lots of us using current points where banking or borrowing has nothing to do with it. And we'll lose those points most likely. (With maybe a small window to move some to RCI to try to salvage at least a little value maybe.)

Note that I'm not saying that DVC owes us anything. I'm in the group that goes "Well, this is what we agreed to -- if Disney happens to do something, then that's a bonus." I'm just saying it affects people that aren't using banked points too.

-John

 

[Sandisw]

I just want to point out that there are lots of people "using current use-year points" where that does not "work out fine." There are many of us who are in a situation similar to this: they have a June Use Year and used 2019 points to book a stay in April or May. So, they are using "current use-year points" that, when their vacation is cancelled, will have their points go back into that current use year -- where it is already past the point to bank and there is nothing else to book in time, of course.

I just wanted to mention it because there seems to be a lot of people that think this only affects people who are using banked points. There are actually lots of us using current points where banking or borrowing has nothing to do with it. And we'll lose those points most likely. (With maybe a small window to move some to RCI to try to salvage at least a little value maybe.)

Note that I'm not saying that DVC owes us anything. I'm in the group that goes "Well, this is what we agreed to -- if Disney happens to do something, then that's a bonus." I'm just saying it affects people that aren't using banked points too.

-John

Yes, and I can see a decision being different for banked points vs. those current UY points that expire simply because it’s beyond the banking window.

 

[dsnymnkyuncle]

The vast major of DVC rooms rented for cash by Disney come from owners who traded points for cruising or a stay at a non-DVC Disney resort. Those are not points owned by DVCMC or even DVD. We have no right to use those rooms twice and would be requiring other divisions (who are already experiencing big losses) to absorb our loss. Do our losses trump the shareholders?

Even if DVD was willing to give up the revenue from points it buys back or owns, I strongly doubt it's enough to make up an additional 20% in capacity (assuming nothing opens up before June).

I would love to know where you got this information. Could you link or explain it?