DVC point balancing 2022 vs 2021

[mgarbowski]

I've been thinking about this over the past few months, and have reasoned that we're probably not going to see the main content of this thread on a publication or podcast.
- The 2020 chart retraction was never covered well when that was occurring. Even podcasters knowledgeable about DVC were consistently not knowledgeable about the significant concerns that were clearly laid out in that thread. The very brief synopsis that were spoken often glossed over the deeper, more salient concerns also laid out in the thread.
- When the main concerns from this thread were raised very, very briefly in a DVC podcast, the answer from the podcasters was, "but that would be illegal" and then the subject was dropped. I inferred that to mean, because an act would be perceived as illegal, therefore DVC would not be engaging in it. However, this thread makes it pretty clear that DVC doesn't feel it is engaging in anything unallowable by contract, and many clear-eyed analysis in the thread surmises that DVC's viewpoint is indeed contrary to contract allowance.
- The DIS forum and the podcasts are a formal publication of the various entities sponsored by Dreams Unlimited Travel, and (more importantly) Dreams benefits from a cordial relationship with all facets of Disney. (Let's also remind ourselves of the new DVC business line.) Therefore, it's really not in their best interests to shine a spotlight on areas that may rise to requiring a Florida Regulator to formerly address and perhaps correct.
- I found the self-removal of some of the most vocal and data oriented forum users content interesting. I don't ascribe a reason behind it- but it is interesting.
- Ultimately, the podcasts have never fully grasped these issues in the 2020 point chart thread and this thread. It's almost like they skimmed the thread, rather than took the time to understand it. AND... that's okay. It's their prerogative to develop their content as they see fit. I'd rather hear well informed commentary on whatever they'd like to discuss.

I realize this might be disappointing for those that want to see a publicized spotlight on the disparate understandings for what our DVC contracts allow with respect to point chart allocations, the relative benefit of breakage, and the re-defining of base year. I just don't think that it's going to happen, and it's up to us as owners to reach out to the various entities for meaningful change (or at least exploration), whether that is DVC management, Florida regulator, or other overseeing body. I respect Dreams/DIS for choosing what they want to produce. It's completely their purview to do so.

Whether it's prudence, fairness, or lack of courage, I usually try to refrain writing posts that speculate about things I can only guess at involving other people's motivations. But now that you wrote it, this is exactly what I have been thinking.

 

[lovethesun12]

I never got a response and this is the first time in out membership that we have been ignored. They have done something we think is illegal. We would join a class action if it comes down to that.

I was promised a follow up after my call with YC in January, but nothing yet.
I think I'm going to write a compaint to the Florida regulators.

I'm considering writing a complaint as well. I was told on a (recorded) call to a sales rep (where I was referred from MA) that my calculations were incorrect because points vary very little from year to year, then told specifically in an email a day later that what the sales rep had said (what members are led to believe) was wrong. The fact that is happening with such a huge purchase is unethical enough really.

 

[ford91exploder]

About 2015 DVC for lack of a better term, changed long time guides were sacked and the funny business with member fees and breakage began. Because for the first decade of DVC one could always get a DVC room on short notice probably not where you wantedcto stay or your preferred room class, But there was always ‘room at the inn’ for DVC members and it felt like DVC was being run in a balanced manner which took into account the profit imperative of Disney without which there would be no DVC balancing that with great customer service to members.

from then on forget getting a DVC room less than 90-120 days out, no decent cash discounts for rooms and being strong armed into points for cash transactions.

Member fees skyrocketing meanwhile the poor quantity and quality of maintenance has the units looking and feeling worn out damaged appliances, scarred walls and damaged fittings

my last addon was in 2013, only to sell the whole lot in 2018 but in those 5 years it got much more expensive and less ‘user friendly’ as it was.

The increase in expense WOULD have been tolerable if it had not been accompanied by a decrease in quantity and quality.

Disney seems not to realize an expensive high touch product needs expends the effort to keep members happy and referring potential new DVC members

the problems above are are all MANAGEMENT’S CHOICE they could be fixed overnight

 

[ford91exploder]

About 2015 DVC for lack of a better term, changed long time guides were sacked and the funny business with member fees and breakage began. Because for the first decade of DVC one could always get a DVC room on short notice probably not where you wantedcto stay or your preferred room class, But there was always ‘room at the inn’ for DVC members and it felt like DVC was being run in a balanced manner which took into account the profit imperative of Disney without which there would be no DVC balancing that with great customer service to members.

from then on forget getting a DVC room less than 90-120 days out, no decent cash discounts for rooms and being strong armed into points for cash transactions.

Member fees skyrocketing meanwhile the poor quantity and quality of maintenance has the units looking and feeling worn out broken appliances, scarred walls and damaged trim and fittings

my last addon was in 2013, only to sell the whole lot in 2018 but in those 5 years it got much more expensive and less ‘user friendly’ as it was.

The increase in expense WOULD have been tolerable if it had not been accompanied by a decrease in quantity and quality.

Disney seems not to realize an expensive high touch product needs to expend the effort and resources to keep members happy and referring potential new DVC members

 

[New Mouse]

About 2015 DVC for lack of a better term, changed long time guides were sacked and the funny business with member fees and breakage began. Because for the first decade of DVC one could always get a DVC room on short notice probably not where you wantedcto stay or your preferred room class, But there was always ‘room at the inn’ for DVC members and it felt like DVC was being run in a balanced manner which took into account the profit imperative of Disney without which there would be no DVC balancing that with great customer service to members.

from then on forget getting a DVC room less than 90-120 days out, no decent cash discounts for rooms and being strong armed into points for cash transactions.

Member fees skyrocketing meanwhile the poor quantity and quality of maintenance has the units looking and feeling worn out damaged appliances, scarred walls and dam

my last addon was in 2013, only to sell the whole lot in 2018 but in those 5 years it got much more expensive and less ‘user friendly’ as it was.

The increase in expense WOULD have been tolerable if it had not been accompanied by a decrease in quantity and quality.

Disney seems not to realize an expensive high touch product needs expends the effort to keep members happy and referring potential new DVC members

The build quality has also gotten substantially worse with newer properties.

 

[mdembko]

After my 3rd contact with DVCM starting back on Dec. 12, I finally have a call scheduled with YC on March 31. I had written two letters by snail mail outlining my concerns, backed up with information provided by i<3riviera that he gave me permission to use. I will give an update after my call.

 

[ford91exploder]

The build quality has also gotten substantially worse with newer properties.

what’s disturbing about that is the vast amount of cash a DVC resort generates, BLT if you assume 105/pt which is where i bought in at generated almost 850 million in cash, Construction and furnishings probably 250 million or less (based on quality of initial fit-up)

that left 600 million sloshing around in Disney’s accounts. So where is the excuse for poor quality???? Certainly not the lack of cash...

 

[dismedvc]

After my 3rd contact with DVCM starting back on Dec. 12, I finally have a call scheduled with YC on March 31. I had written two letters by snail mail outlining my concerns, backed up with information provided by i<3riviera that he gave me permission to use. I will give an update after my call.

Thanks for continuing to follow up.
However DVC has waited so long to respond, on the date of your call, they can claim it is too late to change the point charts for 2022, since reservations have already been made for the time period where the 2022 point charts were inflated and where changes would need to be made. Changes would need to have been made before March 16th (the 11 month mark for reservations starting on February 16th 2022).

i<3riviera's data (First posted in December) showed the point inflation was due to the greater number of days that fall into the higher point season that runs from February 16th to 7 days before Easter, and less days in the lower point season which runs from 7 days after Easter to April 30th.
When Easter is later, there are more days in the higher point season and less in the lower point season. In 2022 Easter is April 17th, so in 2022 there are only 7 days (April 24 - 30) that fall into that lower point season, compared to 20 days (April 11 - 30) that fell into that lower point season in 2021. In 2022, those extra 13 days are in the higher point season in that runs from (Feb 16 - April 9), compared to 2021 where that higher point season ran from (Feb 16 -Mar 27).

ETA: A correction to my the last part of my paragraph 1 above: Reservations for a 7 night stay that includes the night of February 16th could actually be made on March 10th. I did not correct the original post, since that post has been quoted with the mistake. Also, based on the post below by @drusba I agree DVC must actually act to change the 2022 point charts on or before April 11, 2021

 

[drusba]

Thanks for continuing to follow up.
However DVC has waited so long to respond, they can now claim it is too late to change the point charts for 2022, since reservations have already been made for the time period where the 2022 point charts were inflated. Changes would need to have been made before March 16th (the 11 month mark for reservations starting on February 16th 2022).

i<3riviera's data (First posted in December) showed the point inflation was due to the greater number of days that fall into the higher point season that runs from February 16th to 7 days before Easter, and less days in the lower point season which runs from 7 days after Easter to April 30th.
When Easter is later, there are more days in the higher point season and less in the lower point season. In 2022 Easter is April 17th, so in 2022 there are only 7 days (April 24 - 30) that fall into that lower point season, compared to 20 days (April 11 - 30) that fell into that lower point season in 2021, with those extra 9 days being in a higher point season in 2022.

Actually DVC may still be able to correct the problem it has created for 2022 and after by acting on or before April 11, 2021. DVC went wrong by intentionally choosing Easter as a major factor in the annual change of total points. In the next 50 years Easter will occur on dates from March 25 to April 25. Thus the earliest one could possibly reserve time during the Easter higher point week, that begins the Sunday before Easter, would be by making a 7-night reservation on April 12 when Easter is March 25 and the Easter week begins Sunday, March 18.

The March 25 Easter date and one of its two applicable years, 2035, is the key because it was chosen by DVC to be when total annual points to reserve all rooms for the year under the 7-season point charts will equal but not be less than total ownership interests. That means the total points to reserve all rooms between mid-February and March 17 could remain the same as is for the next 50 years. It is the continuous annual variance in points needed for time from March 18 to April 30 that results in the problem.

You have two Easter weeks, consisting of the Sunday before Easter through Easter which is always in the 7th highest point season, and the Monday to Saturday after Easter which is always in the 6th highest point season.

The varying annual point changes that you get involve the time from March 18 to April 30. As Easter moves dates, its designated two weeks never change in total points. However, all other dates from March 18 to April 30 that are not part of the two Easter weeks are subject to variance. When Easter is March 25 (in 2035), the entire month of April will in the lower fifth point season. When Easter is April 25 (in 2038), all dates from March 18 through April 17 will be in the higher sixth season, and the lower point fifth season will disappear entirely.

That is the variance DVC has created by choosing to have total points depend on the movement of the Easter weeks. The only time during the next 50 years when points will equal the total ownership interests is the two years (2035 and 2046) when Easter is March 25 and thus all 30 days of April will be in the lower point fifth season. For all 48 of the other 50 years, total points for the year will be higher than that base 2035 year, and in 2038, all points in March and April will be in season 6 or 7 and there will be no lower point season 5.

Thus, in creating the new point charts, DVCM apparently intentionally chose to make 48 of next 50 years have higher total points than the base year despite (a) having absolutely no clause in the POS that allows it to do any act to raise total annual points needed to reserve all rooms, and (b) representing in the POS, including in the Product Understanding Checklists, that total points to reserve all rooms for any year can never increase except for increases caused solely by the natural changes in the annual calendars (e.g., since the base year is a 365-day year, points can be added to cover Feb 29 in a leap year). What has occurred is not something resulting from the natural change in the annual calendars. What has occurred is an intentional act by DVCM to create new point charts that will almost always increase total points above those in a base year.

But it is a wrong that can be fixed if DVC acted now. What it needs to do is change the 2022 calendar and those thereafter to assure the movement in the Easter date has no impact on total points. That simply requires putting all dates from March 18 through April 30 that are before and after the two Easter weeks into season 5. The result would be that all years would then follow the total points that are in the apparent base year 2035.

 

[achinforsomebacon]

But it is a wrong that can be fixed if DVC acted now. What it needs to do is change the 2022 calendar and those thereafter to assure the movement in the Easter date has no impact on total points. That simply requires putting all dates from March 18 through April 30 that are before and after the two Easter weeks into season 5. The result would be that all years would then follow the total points that are in the apparent base year 2035.

Is it really this simple? That gives me some hope that this COULD still be rectified (as in they shouldn't be able to say there's not time to go back and figure it out). I'm just not hopeful they WILL fix it.

I'm also concerned that unless legal action is taken or Florida gets involved, nothing will change.

 

[bobbiwoz]

Thank you for being very clear in your explanations, drusba.

 

[Mumof4mice]

I was promised a follow up after my call with YC in January, but nothing yet.
I think I'm going to write a compaint to the Florida regulators.

I would join a group complaint.

 

[dismedvc]

But it is a wrong that can be fixed if DVC acted now. What it needs to do is change the 2022 calendar and those thereafter to assure the movement in the Easter date has no impact on total points. That simply requires putting all dates from March 18 through April 30 that are before and after the two Easter weeks into season 5.

If I am correctly understanding your quote above for what needs to be done for Season 5, under your "fix";
Season 6 would then always be Feb 16 - Mar 17, the week after Easter, and the 3 days around Thanksgiving,
Season 7 would remain the week before Easter and Dec 24 - 31.

Is it really this simple?

Seems to me it is, unless I misunderstood drusba's fix.
In addition, I think it would be much more likely for DVC to agree to make the changes recommended in drusba's fix rather than DVC agreeing to change back to the 5 season point chart, which I believe had been the most frequently mentioned fix earlier in this thread.

 

[Eldon32]

Thanks for continuing to follow up.
However DVC has waited so long to respond, on the date of your call, they can claim it is too late to change the point charts for 2022, since reservations have already been made for the time period where the 2022 point charts were inflated and where changes would need to be made. Changes would need to have been made before March 16th (the 11 month mark for reservations starting on February 16th 2022).

Of course they can fix it; by crediting 2022 owner dues with any income DVCM generated from points rented via retail above 100% declaration - totaled back to the day of the final declaration for the resort.

There is no reason that for Old Key West you shouldn't go back to 1998 and determine how many points have been rented out from under owners.

 

[EM Lawrence]

I’m not sure why, but I’m not getting a notification when new posts show up in this thread. Is there a way for me to remedy that?

 

[Keetchino]

I’m not sure why, but I’m not getting a notification when new posts show up in this thread. Is there a way for me to remedy that?

It seems that if you check your notifications, but don’t click on new notifications for a certain topic, after a few attempts it stops giving you notifications for that topic

 

[Sandisw]

I’m not sure why, but I’m not getting a notification when new posts show up in this thread. Is there a way for me to remedy that?

There should be something under Watch...top of the thread....that will send you an email notice.

 

[laserpastry]

I certainly hope they do fix the 2022 (and beyond) point charts problem. It would restore some confidence that they are willing to fix their mistakes. Although, I have to say, they also better stop making mistakes like this. It will be the second time they have had to backtrack on point charts. People will only hang on for so long when a company keeps undermining their trust.

 

[Eldon32]

I spoke with Yvonne @ DVC earlier today and we chatted for about an hour.

I want to indicate that this is my recollection and notes from the conversation; anything quoted may not be a direct quote.

I can say that based on her comments; she likely reads these boards and members emails (at least some of them) as she was able to bring up many of the ideas we've postulated in this thread without prompting, which I appreciated.

At the end of this post is the email I sent to her and her team after reaching contact. Included were attachments of some of the materials that were most interesting to me on this thread, including a points worksheet for each resort (I'm sorry, I don't recall who posted it and a ton of stuff has been taken down by the owners - so I won't repost it here).

We broke the conversation into two parts:

• A: Point creation
• B: Point reallocation

We spoke through for a few minutes on how DVC comes up with a "comfort model" to determine how points are created in a resort, but agreed that much of how points were created (that is base year, square footage, ext) really don't matter to the specific part of reallocation and did not dive into this topic too much past what we already know in appendix A of the POS.

What we focused on specifically was reallocation; my main question being "what determines how points are reallocated, and how does that result in an increase year-to-year?"

Her response was what I initially expected, that holidays and higher demand periods in 2022 caused the increase in points. She indicated 2023 would be a "down point year" and that they in fact have decided to not change allocation at all for 2023. We also talked about how "rounding" can play a role in point increases [to which I replied, might account for maybe several hundred points a year]. Her overall response was that the point reallocation was good for membership.

I indicated I wasn't too concerned about looking forward, until we look back and understand what happened. Specifically around the multiple instances in the POS that indicate point increases coincide with a decrease. If we look at SSR as an example, declared vs 2022 point totals show an overall increase of 67,000 points.

She said DVCM's intent is to not continually increase points.

I brought up that if holidays are to blame; it wouldn't make sense that DVCM could just say "every day is now a high-demand day" and increase the points by any arbitrary amount without reduction anywhere else. Further, I do not see a way that DVCM can increase points year-to-year outside of a leap year due to ownership being a function of (space x time).

She agreed that DVCM could not increase the points to whatever value they wanted arbitrarily and would need to look into it some more.

I also brought up that, outside of points - "percentage of ownership" is really what the membership owns. And, this is a function of (space x time). Point charts are a simplistic way of measuring this ownership - but ultimately outside of point creation, the POS does not address point charts and in-fact addresses each and every day of the year independently.

She agreed that ownership percentage is what is being sold, but the points system is what they have been given/are using and the outcome of the points is just what has happened. She also agreed that the reallocation terms do in-fact not discuss points managed as a chart. She said that had they the ability to go back and do it again, they would have multiplied the number of points (not in a way to reduce value, but in a way to make rounding less of an issue when creating the charts).

I brought up that to membership, the point increase of 67,000 points at a single resort has a retail value at DVC's own one-time-use price of over a million dollars a year; and that in every year up to this point - DVC has met the breakage cap of 7.5% for the capital reserve account meaning that the creation of additional points has no monetary benefit to membership and in-fact decreases their overall leverage in using the resort.

She indicated none of the resorts operate at 100% occupancy and that membership has the opportunity to use breakage within the 60 days just as DVCM does. She did agree to look into if something can be done about the perception of extra revenue being drawn from the point increases.

I also brought up that there may have been no intended malice, but at a minimum - the feeling the ownership takes away - is that DVCM is benefiting. And that if the intent was purely balancing that the ~67,000 points at SSR could reduce the total daily points by ~183. I would like to know why they didn't do this.

We ended the call that she would like to get with her analysists; the team has grown significantly over the years from 5 originally and she did not have all the answers in front of her but said she would present them all the information I sent and get back to me with what has happened in the next few weeks; or at least follow up in 2-3 weeks if she doesn't have a concrete answer.



My email:

I wanted to provide some more detail in specifically the questions I want to understand; and the logic I've used to come to each conclusion so that we can be as productive as possible during our short phone call. This reading is going to take some time - for that, I apologize.

For reference, I have attached a PDF document which includes the point chart and room counts for every resort under management by DVCMC and compares the total point costs at 100% occupancy between use years 2021 and 2022. Use periods in green represent a point decrease, while use periods in red represent an increase. Starting on page 2 will be most interesting to you all where it breaks it down by resort. The math in the attached PDF will detail the calculation used to determine that Animal Kingdom Villas has increased by about 22K points, Old Key West has increased by about 29K points, Saratoga Springs Resort has increased by about 55K points. Including the remaining resorts results in a total system increase of about 206K points for Walt Disney World properties, and an aggregate total increase of 171K point increase for all resorts in DVCMC's management. The decrease for the aggregate total of all resorts is due to a few non-Disney World properties actually seeing a decrease in point costs year-to-year. If you see anything wrong with the math, please let me know.

I wanted to focus on Animal Kingdom Villas, since that's where I own - but I'll be honest that going back a number of years can get overly complex due to the huge amount of declarations and what appear to have been modified views year-to-year. I'm going to stick with more semantic questions for this resort. For reference, I am using the POS for AVK available here: AKV POS Rev. 12_30_13 (disney.com). Below is my understanding of various sections reflective of how DVCMC is allowed to manage point reallocation. I think this is important to address my question because any point here which I have incorrectly described could be what I am missing.

The two main sections in the above referenced POS I believe cover point increases are:

• PDF page 179: Exhibit "A" - Real Estate Interest and Point Formulation
  • Vacation Ownership Plan Real Estate Interest Formulation
  • Vacation Ownership Plan Home Resort Vacation Point Formulation
• PDF page 193 - 194: III. Operation of the Vacation Ownership Plan
  • Operation of the Home Resort Reservation Component
  • Vacation Points
  • Home Resort Vacation Point Reservation Values.

This is my understanding of: Exhibit "A" - Real Estate Interest and Point Formulation - Vacation Ownership Plan Real Estate Interest Formulation
1. As reiterated in this exhibit, in the POS, and in the deeds. Points are for a convenience of calculation; you could say just as easy that a week stay costs "1%" of Unit 115C - for example.
2. During initial point creation for the resort, DVC created initial "seasons". I don't know what they were, but I'm not sure it affects my question in any way.
3. Each vacation home has a "demand factor" applied to it - this considers the type of vacation home (studio, one-bedroom, ext), if it contains a lock-off, and the view it has (standard, pool, ext). Note: that this is only a DESIRE ranking, not a SIZE ranking. Size of the of the vacation home is accounted for later.
4. The "demand factor" is multiplied by the number of days in each season to give a studio, a one bedroom, and a two bedroom a total number of "demand days" for each season.
5. Total "demand days" for all seasons of each vacation home type are totaled giving a total for the year for each vacation home type.

Note before proceeding, that my understanding is a "unit" is not a vacation home. There may (will?) be multiple vacation homes in a defined unit. For example, you may have a plex of one bedroom, two bedroom, and multiple studios within a single unit. The combination within each unit doesn't matter, since we're going to figure out the value of the unit based on the vacation homes it contains next. It is entirely possible that someone with 200 points owns 3% of unit 110A but another person with 200 points owns 1% of unit 110B because of the types and quantities of vacation homes within the unit, as well as their views (which affect desirability, and thus the demand factor).

6. For each vacation home in a unit (studio, one bedroom, two bedroom) - the quantity of each vacation home type is multiplied by "demand days" for the year - then added together to represent a total number of "demand days" in the entire unit.
7. When you are sold a deed, you are sold a percentage relative to the number of "demand" days in that unit, which are already weighted based on initially defined seasons, views, unit types, and other factors that represent the value of that unit.

This section also says in the very last sentence of the last paragraph of Exhibit A: "In any event, the total number of Home Resort Vacation Points can never exceed the total number of Ownership Interests in Units of which they are symbolic."


This is my understanding of: Exhibit "A" - Real Estate Interest and Point Formulation - Vacation Ownership Plan Home Resort Vacation Point Formulation
1. Again, this section reiterates "points" are only an easier way to account for the percentage of ownership against the "demand days" you purchased.
2. The percentage of "demand days" purchased are multiplied by the square footage in the unit to determine the total square footage owned relative to the unit's total space.
3. The owned square footage is then multiplied by some "constant number" (across the entire resort?) to determine the number of vacation points a "percentage of demand days" for a specific unit are worth.

The page goes on to say that the initial points for each home, on each day will be determined by projected demand and that DVCMC is allowed to reallocate them per the MSA.


This is my understanding of: III. Operation of the Vacation Ownership Plan - Home Resort Vacation Point Reservation Values
1. Earlier on this page, it again states points are a convenience method of accounting.
2. DVCMC established vacation points based on various factors (which I already covered above in greater detail from Exhibit A).
3. Points owned by a club member will be fixed and symbolic of their ownership percentage within a unit.
4. Points were initially crafted based on a 365 day calendar witch special alignment for high-demand periods which would match to what Exhibit A indicated.
5. "During the Base Year the total number of Home Resort Vacation Points required to reserve all Vacation Homes during all Use Days in the Condominium must always equal, and be symbolic of, the total number of Ownership Interests owned by Club Members of the Condominium".
6. Any excess availability (this, I would understand to be ONLY created due to leap year since the 365 day "base year" calendar already includes all days of the year, and therefore all holidays and considerations thereof - but also inclusive of "demand days" not used by membership) will be subject to breakage.
7. DVCMC is allowed to adjust Home Resort Vacation Point requirements on a use day by up to 20% from the previous year, "provided, however, that the total number of Home Resort Vacation Points existing within a given Unit at any time may not be increased or decreased because of such reallocation".
8. DVCMC can do more than a 20% per-day adjustment for special occasions.
9. "Any increase or decrease in the Home Resort Vacation Point reservation requirement for a given Use Day pursuant to DVCMC's right to make this Home Resort Vacation Point Adjustment must be offset by a corresponding decrease or increase for another Use Day or Days".
10. Except for special occasions, more than a 20% per-day adjustment would need a vote of 60% of members.
11. DVCMC could perform maximum leveling to effectively get rid of weekend and seasonal premiums.

Earlier I mentioned how difficult Animal Kingdom Villas was to calculate; Saratoga Springs is a much easier resort to look at because it has significantly fewer room types and declarations over it's life. From public record, SSR appears to have 14,029,212 points sold in it's resort (inclusive of DVD's 2.5% required ownership).

This is what the total bookable points looked over the last few years, for reference:
2019: 14,031,216
2020: 14,071,430 (LEAP YEAR)
2021: 14,041,340
2022: 14,096,212


This is the key takeaways from my readings of the POS, that I want help reconciling:

Exhibit A reads to me that regardless of anything in the MSA to the contrary, total points year to year can *never* increase. It doesn't matter if it's for holidays, seasons or anything - all of this would have to be done via reallocation. Member's points were created by measuring a unit's value based on the number of days it can be used, projected demand (including holidays, seasons), view, vacation home type and quantity, as well as unit square footage. The only exception would be a leap year since then there are additional "demand days" for each unit due to the extra 24 hour period. These go to breakage; that makes sense. The immediate following year, the total bookable points should go back to a normal 365-day total.

Once the ownership interest is created, it would seem to me to be tied to the demand factor used for computing holidays, seasons, and weekends within the base-year forever. This calculation occurs at the ownership interest level, before points are even created. The only thing DVCMC appears to be able do is move points around to accommodate for a holiday moving to another day/week (or for whatever other reason DVCMC determines). In order to create more points, DVCMC would have to increase one of the variables used in calculation. Besides leap year, you don't get more than 365 days in a year. You can't go back and increase the demand factor against a unit to produce more points, because it's a factor against ownership interest ("demand days", not "points"); and since members own a percentage of a unit's total "demand days" - not a fixed quantity, increasing the demand factor by 2x would just translate into members owning the same percentage of that increase.

My main question is: How is DVCMC determining their ability to increase total bookable point requirements year-to-year?

 

[EM Lawrence]

Thank you @Eldon32 for this excellent recap of your conversation. I look forward to hearing any further responses from DVCM.