Different availability when you are a DVC member vs. rack rate customer

[DisneyJanFeb2008]

Why is it if you call as a regular rack rate customer they have different availability then if you are calling member services as a DVC customer?

When I call the general line they have Feb. availability at BCV whereas when my friend who is a DVC member calls member services, they only have SS....any insight? Thanks.

 

[Chuck S]

This is a common question among new owners and non-members.

1) Disney retains a small percentage of ownership in the DVC resorts. IF those rooms aren't needed for maintenance, then they are available to cash customers.

2) At 60 days out, any rooms not reserved by DVC members are turned over to Disney for cash reservations.

3) Any points that Disney may have acquired through defaults or ROFR (Right of First Refusal) on a contract sale may be made available to cash reservations. Also any "unsold" points at new resorts, like SSR or AKV can be used for cash reservations.

4) Probably the biggest portion of Cash nights for most resorts is when a member trades out to other locations, like the Disney Collection, cruise, Adventures by Disney, etc. In theory DVC then turns a room over to cash reservations to offset the cost of the trade. It would be like a member reserving a room, then renting it to take a non-Disney vacation...only in this case, Disney becomes the rental agent.

 

[JimMIA]

This is a common question, and it leads to a lot of confusion. There are two inventories of villa availability -- DVC and cash. Most of the cash availability comes from DVC owners trading points outside of DVC for things like cruises or stays at non-DVC resorts. Those points go to CRO as payment for the exchange.

In addition, at 60 days out, any unbooked points availability becomes available for CRO to rent for cash, so they often have something to sell when DVC has nothing.

 

[sjcampbl]

Disney retains MUCH more than "a small percentage" of the available points in every resort. I believe they retain 51% of all available points. This is how the maintain controlling interest in every resort.

 

[DVC Mike]

Disney retains MUCH more than "a small percentage" of the available points in every resort. I believe they retain 51% of all available points. This is how the maintain controlling interest in every resort.

This is simply not true.

 

[Chuck S]

Disney retains MUCH more than "a small percentage" of the available points in every resort. I believe they retain 51% of all available points. This is how the maintain controlling interest in every resort.

Not true. Disney retains 4% to 6% interest. We members basically give them "control" through our contractual agreements. Members give voting rights to a designated representative, that representative is selected by Disney.

However, if the owner/members of a particular resort want to break away from Disney, it is possible through a full membership vote. What are the odds of a majority of member wanting to break out of the DVC system, especially considering that the resort would have to hire all new personnel and a new management team, reservation system, etc.? It would be very expensive, and the chances are probably pretty close to nil that a vote of membership would do that.

 

[Lynne M]

Disney retains MUCH more than "a small percentage" of the available points in every resort. I believe they retain 51% of all available points. This is how the maintain controlling interest in every resort.

Re-read your contract. Disney's ownership percentage is very clearly stated.

 

[What-r-ya Goofy?]

4) Probably the biggest portion of Cash nights for most resorts is when a member trades out to other locations, like the Disney Collection, cruise, Adventures by Disney, etc. In theory DVC then turns a room over to cash reservations to offset the cost of the trade. It would be like a member reserving a room, then renting it to take a non-Disney vacation...only in this case, Disney becomes the rental agent.

I'm curious as to how this type of information is made known to DVC members. Is there an accounting report issued by DVC at the end of their fiscal year or are they required to conduct a routine audit from time to time that is then made public? I understand that DVC members do not sit on the board, so I'm wondering what system of checks and balances is in place to keep everyone honest.

Please don't misunderstand my post, I'm not questioning your information, it sounds logical. I'm just wondering how you know this.

 

[Chuck S]

I'm curious as to how this type of information is made known to DVC members. Is there an accounting report issued by DVC at the end of their fiscal year or are they required to conduct a routine audit from time to time that is then made public? I understand that DVC members do not sit on the board, so I'm wondering what system of checks and balances is in place to keep everyone honest.

Please don't misunderstand my post, I'm not questioning your information, it sounds logical. I'm just wondering how you know this.

Timeshare law prevents Disney from sellng more points than a resort can use for reservations over the course of a year. That is regulated by the State of Florida. Hence, if a member trades out, it must create a vacancy within the DVC resort system.

From the boards here, we know a fair percentage of member do trade outside DVC and outside of II, by using points for cruises, Disneyland and to stay at regular WDW resorts for special occasions, as well as using some of the Buena Vista trding options and Adventures by Disney.

As to just how Disney & DVC designate just which room size or location is turned over for cash reservations, we don't know.

 

[DVC Mike]

FYI. In the Annual Meeting notice, Disney publishes how many points were retained by DVD, and how many points were unsold, as of 12/31/06.

For example, for BCV:

Total Ownership Interest: 3,027,092 points
Retained by DVD: 60,552
Unsold points: 8,669

This shows that DVD retains no less than 2 percent of the total ownership interest.

 

[Caskbill]

To build on Mike's posting above,

SSR:

Points owned by members: 9,903,156
Points retained by DVD: 198,063
Unsold points: 727,714

Thus Points retained = 2%
Unsold points = 7.3%

Figures are for the year ending Dec 31, 2006.

 

[nunzia]

This is very interesting. So...when a member banks would that free up the current year points for cash reservation, and then they'd have to essentially 'tie up' the points for the following year?

 

[Chuck S]

This is very interesting. So...when a member banks would that free up the current year points for cash reservation, and then they'd have to essentially 'tie up' the points for the following year?

I would think that banking, in theory, is balanced by someone else borrowing, thus having little impact on what is turned over to CRO for cash.

 

[MLK-RI]

Adding to Mike and Caskbill - from the VWL Annual Meeting notice...

VWL:

"...declared Ownership interests equivalent to approx.": 1,961,981 vacation points
Points retained by DVD: 39,270
Unsold points: 16,265

"DVD retains no less than 2 percent total Ownership Interests in each Unit declared in the Condominium..."

Figures are for the year ending Dec 31, 2006.

 

[OKW Lover]

For OKW the numbers are:
7,674,930 Total Vacation Points;
153,531 Retained Points;
80,198 unsold points (presumably points that were acquired under ROFR)