DVC dues?

[amandajustinee]

Hey all!

We've been looking at purchasing a DVC membership but I'm wanting to run all the numbers and I'm wondering typically what percentage the annual dues increase year over year?

 

[CastAStone]

The newer WDW resorts increase 3-5% and the older WDW ones more like 5-6%; the beach ones (Vero, Hilton Head, Aulani) have seen much steeper increases. There’s charts of the all time increases out there on the interwebs:

https://dvcnews.com/index.php/dvc-p...content/2494-historical-annual-dues-by-resort
Remember that anything could happen and they are allowed to increase them sharply if need be.

 

[Nabas]

Here are the historical increases.



AVE = Average increase over the entire history of the DVC resort.

CAGR = Compound Annual Growth Rate.

3-Yr = Average increase over the last 3 years.

 

[CarolMN]

The newer WDW resorts increase 3-5% and the older WDW ones more like 5-6%; the beach ones (Vero, Hilton Head, Aulani) have seen much steeper increases. There’s charts of the all time increases out there on the interwebs:

https://dvcnews.com/index.php/dvc-p...content/2494-historical-annual-dues-by-resort
Remember that anything could happen and they are allowed to increase them sharply if need be.

Here are the historical increases.

View attachment 568649

AVE = Average increase over the entire history of the DVC resort.

CAGR = Compound Annual Growth Rate.

3-Yr = Average increase over the last 3 years.

Agree, but it should be said that the increases over the last 3 years are heavily influenced by the labor contracts that resulted in a minimum wage of $15 per hour for all employees. (I personally applaud the wage increase). I think the annual fee increases will return to the lower (CAGR/ average) amounts after the wage increases are fully implemented.

 

[Nabas]

Agree, but it should be said that the increases over the last 3 years are heavily influenced by the labor contracts that resulted in a minimum wage of $15 per hour for all employees. While I personally applaud the wage increase, I think the annual fee increases will return to the lower (CAGR/ average) amounts after the wage increases are fully implemented.

I agree, the new labor contract has increased dues in recent years. This is understandable and was expected.

 

[chalee94]

...I'm wondering typically what percentage the annual dues increase year over year?

Be sure to look through the DVC Resource thread (stickied at the top of the forum):

The DVC Resource Center - Updated December, 2020 | The DIS Disney Discussion Forums - DISboards.com

Post 5 has all the historical dues information but there is a lot of valuable information there.

 

[justadreamaway77]

Agree, but it should be said that the increases over the last 3 years are heavily influenced by the labor contracts that resulted in a minimum wage of $15 per hour for all employees. (I personally applaud the wage increase). I think the annual fee increases will return to the lower (CAGR/ average) amounts after the wage increases are fully implemented.

THIS! I was going to say this exact thing!

 

[Lisa51683]

If you purchase DVC points direct through Disney and then increase your points through resale, is it seen as two separate contracts? Do you then need to pay dues twice? People that own at multiple resorts, do they pay dues for each resort?

 

[JETSDAD]

If you purchase DVC points direct through Disney and then increase your points through resale, is it seen as two separate contracts? Do you then need to pay dues twice? People that own at multiple resorts, do they pay dues for each resort?

Any points you buy will have their own contract. They don't add on to an existing contract. Dues are per point so you'd be paying the dues based on the number of points you own at each resort.

 

[MICKIMINI]

All the dues info is located on your DVC webpage. I can see all the contracts and pay each one individually online. Quite easy!

 

[chalee94]

1) If you purchase DVC points direct through Disney and then increase your points through resale, is it seen as two separate contracts? 2) Do you then need to pay dues twice? People that own at multiple resorts, do they pay dues for each resort?

1) 2 contracts bought separately will always remain 2 separate contracts.

Depending on UY month and how the real estate contracts are titled, they may be 2 separate memberships or they may be combined under one membership. Points from separate contracts that operate as one membership are easier to pool and use together for reservations.

(Different home resort points can never be combined until 7 months under any circumstances.)

2) You pay dues for every point you own each calendar year.

If I own 40 OKW pts and 100 BLT points, then for 2021, I would owe 40 x $8.36 = $334.40 for OKW and 100 x $6.90 = $690.00 for BLT. Easy to calculate.

 

[Bjaiken77]

I’ve alway been interested in the dues. I understand that it goes towards actual expenses in a meaningful way (ie not just arbitrarily picking a number). However, I’ve never really understood the actual math. Also, some resorts are DVC only while others are villas. Again, I’ve never understood how they apply dues to those scenarios. Who pays for what? What’s the justification?

 

[chalee94]

This article takes a pretty deep dive.

A Closer Look at the 2020 Annual Dues - DVCNews.com - The essential Disney Vacation Club resource!

For a DVC villas only resort like OKW, I believe OKW owners pay all the wages for the lobby employees and all the bus costs for transportation, for example.

For a mixed use resort like BWV, the BW Inn is allocated some of the labor and transportation costs so BWV owners aren't paying for all of it.

 

[Deb & Bill]

There is a difference between memberships and contracts. If all your contracts have the same UY (month that your points start), they could be under one membership if they are all titled the same with the same owners. If your contracts have different UY, they must be different memberships with a different membership number. You need to use transferring to combine points from different memberships. With a single membership, you can easily combine your points at seven months to book a resort. Plus you can never divide a single contract into two or more contracts, nor can you increase the number of points in that single contract.

At one time, we had four contracts (three resorts) in one membership and a single contract (one resort) in another. We now have two contracts (two resorts) in one membership and one contract in another membership. We sold two contracts.

When it comes time to pay the annual fees, each resort has it's own fee. So each contract will have a sum total. Then all the fees for all the contracts in the membership are added together and you pay the lump sum either annual or split by 12 monthly. You would get a bill for each membership, but not for each contract. With our two memberships, we have two separate amounts deducted on the 1st day of the month from our US checking account. One for the larger membership (two contracts total of 275 points) and one for the smaller membership (one contract of 50 points).

 

[Sandisw]

I’ve alway been interested in the dues. I understand that it goes towards actual expenses in a meaningful way (ie not just arbitrarily picking a number). However, I’ve never really understood the actual math. Also, some resorts are DVC only while others are villas. Again, I’ve never understood how they apply dues to those scenarios. Who pays for what? What’s the justification?

DVCMC has the property management agreement with WDW to provide services. That contract controls what we pay as owners for the services they provide to run the resort. So, based on that, we are billed for whatever they are charging us for running the resorts.

The shared resorts are determined, IIRC, based on actual occupancy differences. DVC only resorts are covered by all owners. Once the budget is decided, DVD guarantees that we won't be asked to cover any shortfalls and in exchange, they don't pay actual dues for any points owned by them.