DVC question

[rance]

One of my concerns was that DVC could raise the point totals eventually...but was told that is not possible.

Was wondering though ....could they just keep uping the yearly maitenance fees?

hope my question makes sense.

 

[*pixie*dust*]

Yes, maintence fees can go up every year, depending on operating expenses.

 

[chalee94]

point totals for any individual stay may go up...but the point charts for each resort for the whole year are fixed, so any increase in one area (increase in studio costs, weeknight costs or early december stay costs) must be offset by decreases elsewhere on the point chart.

maintenance fees can and do go up over time...so do hotel rates.

 

[DebbieB]

One of my concerns was that DVC could raise the point totals eventually...but was told that is not possible.

Was wondering though ....could they just keep uping the yearly maitenance fees?

hope my question makes sense.

The point charts were "reshuffled" for 2010 and 2011, so it's possible that the point totals for a particular stay could go up (or down....).

The maintenance fees are not arbitrary, they are based on an audited budget. So they cannot raise them just to get extra profit.

 

[disneynutz]

Was wondering though ....could they just keep uping the yearly maintenance fees?

Maintenance fees currently increase around 3% every year and will continue to increase, maybe more, maybe less, until contract termination.

Bill

 

[Lynne M]

Maintenance fees cover the operating costs of the resort - housekeeping, landscaping, maintenance, real estate taxes, etc. So, since those costs generally increase over time (wages go up, costs of supplies/equipment goes up), I think we all expect fees to continue to rise.

They're capped; I don't think they can go up more than 15% in a since year, and increases have usually been much lower than that.

 

[Crystal_27]

Was wondering though ....could they just keep uping the yearly maitenance fees?

Yes, with very limited exceptions, do plan on paying increased MFs every year.

 

[YourEveryDayAdam]

By law, Disney is not allowed to make a profit on the maintenance fees. They can not just arbitrarily decide to increase them because they feel like making more money. Any increase in dues is kept in a separate account that is for maintenance and operation of the resort.

 

[disneynutz]

By law, Disney is not allowed to make a profit on the maintenance fees. They can not just arbitrarily decide to increase them because they feel like making more money. Any increase in dues is kept in a separate account that is for maintenance and operation of the resort.

Disney does decide how we spend our dues. If they decide to put in a new pool, members have to pay for it. Worse yet, if they don't like pools, they can close them all down, and there is nothing that we can do about it.

Don't they also get paid a percentage of our dues as an administration fee? So the more they spend, the more they make.

Bill

 

[YourEveryDayAdam]

Disney does decide how we spend our dues. If they decide to put in a new pool, members have to pay for it. Worse yet, if they don't like pools, they can close them all down, and there is nothing that we can do about it.

Don't they also get paid a percentage of our dues as an administration fee? So the more they spend, the more they make.

Bill

This is true, but since members are the majority owners, we could band together and oust Disney Management completely. Disney has made it extremely difficult to do this, but it's possible. But, I imagine that if Disney decided to close down all the pools, then we as members could band together, and vote out the board of directors for each of our individual resorts.

I actually like the Disney controls the decisions in the property management. That way the resort is run like a Disney resort and not a homeowner's association.

It's true that Disney does get a percentage of our budget as a "Management Fee". However, this fee also goes to pay for real things...It's not really a profit center for Disney. An example of some of the things that are paid out of this fee are: All the reservation confirmation letters, All of Member Services, Magical Express.

Disney might make some profit off of the management fee, but if they do, it's tiny.

 

[chalee94]

Don't they also get paid a percentage of our dues as an administration fee? So the more they spend, the more they make.

doesn't this pretty much run counter to your other argument though?

why doesn't DVC hire double the number of housekeepers and put new 60 in flat screens in all the rooms to bump up their admin fee? why not sign off on adding valet parking fees into annual dues for BWV owners to bump up their admin fee?

it might seem like their incentive is to overdo it...and so you warn that they might do it at any time to jack up fees.

but they haven't actually done it in the past, right? so you usually criticize them for not doing enough to keep rooms clean and up-to-date to take care of current members.

is there a middle ground where DVC can actually be handling things responsibly? what would that look like? just checking...

 

[disneynutz]

This is true, but since members are the majority owners, we could band together and oust Disney Management completely. Disney has made it extremely difficult to do this, but it's possible. But, I imagine that if Disney decided to close down all the pools, then we as members could band together, and vote out the board of directors for each of our individual resorts.

I actually like the Disney controls the decisions in the property management. That way the resort is run like a Disney resort and not a homeowner's association.

It's true that Disney does get a percentage of our budget as a "Management Fee". However, this fee also goes to pay for real things...It's not really a profit center for Disney. An example of some of the things that are paid out of this fee are: All the reservation confirmation letters, All of Member Services, Magical Express.

Disney might make some profit off of the management fee, but if they do, it's tiny.

We don't have any voting rights, we gave them all to Disney to act on our behalf as they see fit. That's why they run the yearly association meeting, make motions, seconds, and pass the motions, without our input.

I find it hard to believe that they aren't making a profit from the management fee. Disney is all about profits as is other corporations. They get their bonuses based on how much profit they make so a tiny profit doesn't seem like something that they would be happy with.

Bill

 

[disneynutz]

doesn't this pretty much run counter to your other argument though?

why doesn't DVC hire double the number of housekeepers and put new 60 in flat screens in all the rooms to bump up their admin fee? why not sign off on adding valet parking fees into annual dues for BWV owners to bump up their admin fee?

it might seem like their incentive is to overdo it...and so you warn that they might do it at any time to jack up fees.

but they haven't actually done it in the past, right? so you usually criticize them for not doing enough to keep rooms clean and up-to-date to take care of current members.

is there a middle ground where DVC can actually be handling things responsibly? what would that look like? just checking...

You have a very good point and I am trying to understand their thinking. Sales have a big part in their thought process. As long as they are actively sell contracts, they will walk the line between maintaining the resorts and increasing dues. Low dues are a selling point that the Guides brag about during the selling process.

Ever notice that the properties where they are actively touring prospects seem to get extra attention.

Bill