How does it work????

[Winksst]

In light of the recent discussion regarding number of rooms, DVC members and how accessible ressies will be at the 7 month window, etc. I was wondering if anybody knows how it really works? And by "it" I mean how is a resort "sold out?" How many people own a share of a room? I KNOW there aren't 85000 DVC rooms, so how do they sell to 85000 people, ya know? Just curious.

Wendy

 

[Beca]

It's all based on the number of points. Each resort initially has a number of "points" to sell. I am assuming the number of points in a resort is based upon how many points at that price it will take to re-coup the cost of construction (so...how many point at $85.00 (or whatever the initial offering was) to re-coup the costs of construction at SSR...plus some). Then, using some calculations based on demand, they determine how many points each night will charge for each room size, and make sure those points equal the TOTAL number of points originally assigned for that resort.

The number of points for each resort is STAGGERINGLY high. I don't remember, but when someone posted it, I was in shock!!

A lot of my reasonings are based on assumptions...so, I could be very wrong on some things (like how they determine how many points to sell), but the important thing to remember is that the number of points for each resort is set BEFORE they ever go to market. DVC cannot keep adding points to a resort...when the points are gone, they REALLY are gone..unless an owner decides to sell, or unless DVC expands the resort.



Beca

 

[dianeschlicht]

I doubt I can do this explaination justice, but in a nutshell, there are X number of points available for reservations during the 365 dates for each unit or combination of units at each DVC resort. Obviously, all 84,000 would not be staying at the same time, and the availability is limited to your home resort from 11 months to 7 months out from any given date. Don't think I can answer exactly how many would own a share of each unit or building. Maybe a CM is on here who could explain that though. Or maybe Doc knows!

 

[tjkraz]

Look at the point charts. Add up the number of points it would take to book EVERY room 365 days / year. That's the number of points available. DVC keeps about 4%, and they acquire additional points via trades to different "Collections."

Caskbill's planner makes it pretty easy to calculate if you know the number of units at each resort. For Saratoga Springs, it's somewhere in the neighborhood of 13 million points total in the 18 buildings.

 

[CarolMN]

Originally posted by Winksst
In light of the recent discussion regarding number of rooms, DVC members and how accessible ressies will be at the 7 month window, etc. I was wondering if anybody knows how it really works? And by "it" I mean how is a resort "sold out?" How many people own a share of a room? I KNOW there aren't 85000 DVC rooms, so how do they sell to 85000 people, ya know? Just curious.

Wendy

No, there are not 85,000 rooms, but I think you are forgetting that DVC is a timeshare. Each room is available 365 days per year. Each room "costs" so many points per night. If you add up how much it costs to reserve each room for a year in a DVC resort, you will come up with the total number of points that can be/were sold. Disney does retain a small percentage ownership in each resort.

The points actually represent the share you own. Even though your contract lists the particular building unit and percentage that you own, it really has nothing to do with when or where you stay. That can be anytime or at any DVC resort as long as you have the required number of points in your account and there is availability for the resort, room type/size and dates you want.

HTH a little.

Best wishes -

 

[Winksst]

I think I'm getting it now. Thank you all for you're awesome explanations.

I'm still in the "convincing DH to buy" phase. I'm pretty much sold, but he doesn't want to be "locked in." He just doesn't get how cool WDW is!! He's never been. Poor guy.

Thanks again,
Wendy

 

[dianeschlicht]

I see you live in Georgia. That means you are close enough to really reap the benefits of a nearby timeshare in a GREAT place!

 

[Winksst]

I KNOW!!!!!


Wendy

 

[DebbieB]

Originally posted by Beca
It's all based on the number of points. Each resort initially has a number of "points" to sell. I am assuming the number of points in a resort is based upon how many points at that price it will take to re-coup the cost of construction (so...how many point at $85.00 (or whatever the initial offering was) to re-coup the costs of construction at SSR...plus some). Then, using some calculations based on demand, they determine how many points each night will charge for each room size, and make sure those points equal the TOTAL number of points originally assigned for that resort.

The number of points for each resort is STAGGERINGLY high. I don't remember, but when someone posted it, I was in shock!!

A lot of my reasonings are based on assumptions...so, I could be very wrong on some things (like how they determine how many points to sell), but the important thing to remember is that the number of points for each resort is set BEFORE they ever go to market. DVC cannot keep adding points to a resort...when the points are gone, they REALLY are gone..unless an owner decides to sell, or unless DVC expands the resort.



Beca

I took a look at the BWV budget for 2004. BWV has 4,888,866 points available. I figured that by total revenues of $15,015,662 and they show 3.0714 per point for dues (before taxes and reserves).