Highest Maintenance Fee Increase Ever!

[Buzzro]

I expected a slightly higher than normal increase but not 16%
Just checked my dues and OKW went from $7.45 to $8.64, (16%)
VB $10.93 to $11.89, (8.8%)
SS $6.14 to 7.13, (16.1%)

Over the last 23 yrs OKW has averaged 4.62% with a previous high in 2006 @ 9.8%. Before that in 2003 there was a 8.4% increase. The last 4 yrs. we've seen 2019 @ 7.6%, 2020 @ 7.1%, then Covid in 2021, a 3.75% decrease, now 2022 @ 16%.
Looks like 2021 numbers were just to make us feel better and they had to make up for it in 2022.

SS was similar. 17 yr average was 3.87% with a high of $9.4% in 2019 and a 7.4% decrease last year

VB, no surprise, it's always a pretty big increase and last year there wasn't a decrease like the others. It had an 8.8% in 2021

 

[UrsulaWantsYourSoul]

Your numbers are incorrect.
https://dvcfan.com/2021/11/08/2022-disney-vacation-club-annual-dues/

 

[JETSDAD]

Dues didn't go up 16% (OKW went up 5.37%). You're comparing to the 2021 payment after subtracting the 2020 credit for being closed. The actual 2021 dues for OKW were $8.3578/pt.

 

[Sandisw]

As noted, the amount actually paid in 2021 included the credit from 2020. So, you can’t compare what you paid, but what was billed.

 

[carlbarry]

OK, but why is OKW now the most expensive WDW resort?

 

[KAT4DISNEY]

OK, but why is OKW now the most expensive WDW resort?

It did rise pretty quickly from being one of the lower dues resorts. The "cost" of low point charts might be part of it. My guess is if you look at the point requirements per room * the dues it puts it a bit lower in room cost than the dues suggest.

 

[kanerf]

OKW is the oldest (first) resort. It makes since that it may require more maintenance than the newer resorts.

 

[carlbarry]

It did rise pretty quickly from being one of the lower dues resorts. The "cost" of low point charts might be part of it. My guess is if you look at the point requirements per room * the dues it puts it a bit lower in room cost than the dues suggest.

So because Deluxe Studios start at only 9 points, it's OK to charge more for MF? MF is based on actual expenses, not adjusting for low points.

 

[carlbarry]

OKW is the oldest (first) resort. It makes since that it may require more maintenance than the newer resorts.

Oh, I don't know. AKL has animals to take care of. BWV has a large, sand bottom pool.

 

[JETSDAD]

So because Deluxe Studios start at only 9 points, it's OK to charge more for MF? MF is based on actual expenses, not adjusting for low points.

Exactly, it's based on costs. The utilities, maintenance, cleaning, etc per room are going to be fairly similar no matter the resort. Those actual costs need to be covered by dues. So an OKW studio in January is going to be 78 pts for a week....a BLT Lake View room will be 128 points. Those rooms will cost about the same to clean but the BLT room has more points to spread that cost across. The actual cost of cleaning the rooms needs to be covered through dues.

 

[Ssplashhmtn]

It did rise pretty quickly from being one of the lower dues resorts. The "cost" of low point charts might be part of it. My guess is if you look at the point requirements per room * the dues it puts it a bit lower in room cost than the dues suggest.

Does the point chart impact the increase in costs/dues across a resort? I’m not following what you mean by the “cost of low point charts”. Total points are fixed/unchanged within a resort, so for dues to increase from one year to the next, the actual costs would need to increase by that same percentage. How would points impact this?

 

[Sandisw]

Does the point chart impact the increase in costs/dues across a resort? I’m not following what you mean by the “cost of low point charts”. Total points are fixed/unchanged within a resort, so for dues to increase from one year to the next, the actual costs would need to increase by that same percentage. How would points impact this?

I think it’s because there are not as many points at the resort in total to split the cost of running the resort.

But I really don’t know why you have seen larger increases there as I don’t own so have t studied which line items have risen that could be contributing to it.

 

[drusba]

Total points and ownership interests at a WDW resort are directly tied to the sq ft of each room and unit. OKW has the lowest number of points per sq ft (and percentage of ownership interest per same amount of sg ft per room/unit) than any other WDW DVC resort. A large chunk of maintenance, housekeeping and other costs goes to cover wages and benefits of union labor. In the last five years, as a result of the late 2016 union contract, wages and benefits have been increasing quite a bit annually and I am guessing that is a main cause of dues per point at OKW having risen annually at a somewhat higher clip than the other WDW resorts.

And if you think the latest increases are bad, wait until the 2023 budget comes out when we will likely see a significant adjustment due to rising inflation rate and to the fact that the current union contract ends April 2022 and thus there will be a new one negotiated, with the union wanting significantly higher wage and benefit increases partly to cover the inflation increase.

 

[carlbarry]

Total points and ownership interests at a WDW resort are directly tied to the sq ft of each room and unit. OKW has the lowest number of points per sq ft (and percentage of ownership interest per same amount of sg ft per room/unit) than any other WDW DVC resort. A large chunk of maintenance, housekeeping and other costs goes to cover wages and benefits of union labor. In the last five years, as a result of the late 2016 union contract, wages and benefits have been increasing quite a bit annually and I am guessing that is a main cause of dues per point at OKW having risen annually at a somewhat higher clip than the other WDW resorts.

And if you think the latest increases are bad, wait until the 2023 budget comes out when we will likely see a significant adjustment due to rising inflation rate and to the fact that the current union contract ends April 2022 and thus there will be a new one negotiated, with the union wanting significantly higher wage and benefit increases partly to cover the inflation increase.

Well, if the MF increases help give the workers a living wage, then I won't complain. If it's adding a $7.5 million bonus to Iger's $2.5 million salary, then I'll complain.
Hopefully, our economy continues to boom, stock market keeps hitting record highs, and inflation will settle back to normal, so I'm not worried about that.

 

[mattburmeister]

Well, if the MF increases help give the workers a living wage, then I won't complain. If it's adding a $5 million bonus to Iger's $50 million salary, then I'll complain.
Hopefully, our economy continues to boom, stock market keeps hitting record highs, and inflation will settle back to normal, so I'm not worried about that.

Iger's not even on the board anymore, let alone CEO.

 

[carlbarry]

Iger's not even on the board anymore, let alone CEO.

Excuse me. I meant Bob Chapek. HE gets a $2.5 million salary with a $7.5 million "target bonus"--in other words, if he keeps down the salary of people scraping by and increases Disney profits, he gets $7.5 million as a bonus--and a $15 million "long term incentive grant." How he can get by working only one job is a mystery. Maybe his wife is a big contributor to the Chapek family budget.

 

[ScubaCat]

Oh, I don't know. AKL has animals to take care of. BWV has a large, sand bottom pool.

BCV

But it's split with the hotel side in those cases. OKW and SSR (and HHI and VB) are entirely DVC, so dues cover the entire property.

 

[carlbarry]

BCV

But it's split with the hotel side in those cases. OKW and SSR (and HHI and VB) are entirely DVC, so dues cover the entire property.

Yeah. My trip is in 14 days and my brain is working full time on that. At least that's my excuse.

 

[The Jackal]

BCV

But it's split with the hotel side in those cases. OKW and SSR (and HHI and VB) are entirely DVC, so dues cover the entire property.

Don’t forget RIV.

 

[ScubaCat]

Don’t forget RIV.

I keep trying to...