Dumb Question #71 -- 2BR Lockoffs

[erikthewise]

As we all know, the points required for a 2BR lockoff are less than those required to book the same unit as a separate 1BR and Studio.

No complaints from me; though I'm not currently planning to book a 2BR, I probably will someday, and in the meanwhile I'm happy for those who do.

But I'm curious. It seems to be to DVC's advantage to the book the 1BR and Studio rather than the 2BR. Do they make any effort to do so, or just accept things as they happen?

And does anyone what proportion of lockoffs are actually rented as 2BRs?

 

[drusba]

Not sure what you mean by advantage to DVC. Once Disney Vacation Development Co. has sold points, it matters not to it whether you use those points for a studio, 1BR or 2BR as whether members use more or less of their points does not equate to more profit or loss to it. They do not publish any stats on use of 2BR's versus use of same rooms as 1BR and studio. However, my personal experience has been that 2BR's at BWV are often available even though studios and 1BR's are gone indicating that they hold a number of 2BR's to be used as such rather than just allowing them to go as 1BR's and studios.

 

[erikthewise]

Let me try to explain; if nothing else it will clear up my misconceptions.

BCV has 74 lock-offs. For simplicity let's assume it's an Adventure Season weekday and the resort is booked to capacity. If all 74 lockoffs were used as 2BRs that would be 74*30 = 2220 points.

Now suppose instead that 65 of them are used as 1BR + Studio. That would be 34 points for each pair for a total of 65*34 = 2244 points. Having accounted for the same number of points, the other 9 units can then be rented for cash. At rack rates that would be $535*9 = $4815, not a bad haul for one day. Over the course of a year that would be $1.75 million.

If instead the other 9 rooms were used for point reservations, the excess points used would create excess inventory at some other resort, which could be used for cash reservations.

Of course this is an unrealistic example comparing two extreme cases, but my point (hopefully) is that there is a financial issue here.

 

[Maistre Gracey]

Good question, Erik.
I thought a DVC resort had a fixed number of points per given amount of time, but as in your example, the number of points can be different.

When DVC figures how many points it takes to sell out a resort, I wonder which they use?