Is DVC Right By Doing This ?

[BIERMUGG]

Spoke to my DVC Guide on Saturday About an add on to my contract. I asked about the points that DVC gets back by default or buys back when the owner sells low on a resale for BWV or OKW. DVC used to pool these points and then a certain number was reached they would be sold to members, they did this about 10 times since OKW and BWV sold out. But not anymore. All points DVC gets back will be kept in DVC's inventory for cash nights and the points will not be sold.

I Know DVC or DVD always kept a small number(%) of rooms for themselves for cash ressies at each resort, and this was in our contract, but is DVC changing the rules in the middle of the game to benefit them ?
or is it in the rules (contract) they can take over as many points they want?

If more rooms go to cash ressies there will be less rooms for us to book with points and since are dues are based on points per resort won't they go up too?

I have been a member since 95 and my Family and I love DVC but this buggs me if DVC is changing the Rules with out the members approval.

 

[dvcdudes]

I thought they could only keep 4% for themselves... I could be wrong but I would be a bit upset if this continues. Like you said, it will make it harder to get ressies on points.

 

[Melynny]

I thought there was a limited number listed on the offering statement. But, now that I think of it, what would happen if, ( not likely) the resort did not completly sell out? Then , there would extra points sitting out there with no way to recoup some of the money lost by not having an owner pay the dues on those points.

I am certainly interested in how many points are hanging out there and what percentage of those cash nites gets put in to the account that we pay dues into. It would be a bad thing if none of that money was going towards upkeep, busses, etc. and we the true owners were having to pay higher dues because of the losses.

Has DVC had "discovered" a hidden value here and is taking advantage of it?

 

[Doctor P]

I recall reading recent posts on this board indicate that the 4% number is the maximum they can hold, but that right now (or very recently) the actual % held by DVD was more like 2%.

 

[RobDoc]

Technically, the recaptured points have been sold and therefore may not count towards the 4% (or 2%). As long as DVC pays the annual maintenance fee- I don't see any difference in how those points are used.

This was the case for awhile after OKW was originally sold out. These points were apparently resold when OKW was offered for sale after the new buildings were added.

I don't know the answer, but don't really see anything wrong with the practice- as long as maintenance fees are paid on those points.

 

[BIERMUGG]

Originally posted by Doc
Technically, the recaptured points have been sold and therefore may not count towards the 4% (or 2%). As long as DVC pays the annual maintenance fee- I don't see any difference in how those points are used.

This was the case for awhile after OKW was originally sold out. These points were apparently resold when OKW was offered for sale after the new buildings were added.

I don't know the answer, but don't really see anything wrong with the practice- as long as maintenance fees are paid on those points.

But that means instead of you or me making reservations at 96 % of BWV lets say, we will be competing for less available rooms it could get harder to get in.

And also that stops members like you and me adding on or staying at the resort of choice instead of people paying cash.

 

[Richyams]

The only problem that I see is if they are using the eleven month window and cheating. They could make their reservations the moment the wondow opens, really not giving a fair chance to the members. The could make thousands of points worth of reservations in the first ten seconds of the calling day that the window opens.

I would be interested in seeing how those points are used. Specifically, when the reservations are made.

 

[Synonymous]

What difference does it make whether Disney uses these points to sell cash reservations or re-sells them to owners who use them to make points reservations? It's the same points, either way, so it doesn't affect availability to us at all.

Tom

 

[LIDisneyFan]

To Rich's point, Disney could stock up on ressies from Cash guests, then at the 11 month window reserve all of rooms using their points. This would give them the advantage of being able to 'presell' the rooms, knowing they can deliver at the 11 mth window.

It puts Disney in the position of being able to buy up a good number of rooms at the 11 mth window.

 

[PamOKW]

The only problem is the same problem that I see with members constantly renting out their points....it throws the system out of whack because the points are being used to make reservations at the home resort every year rather than sometimes being used elsewhere. Maybe it isn't really a problem, that's just the way I perceive it.

If it's true that DVC is planning to hike the price substantially between now and the time BCV (and/or any new announcement) it makes sense for them to hold on to the points for now and re-sell them at a greater profit.

 

[Dean]

I'm not sure that's accurate about pooling the points and reselling them. I know they did resell the points when they opened the new OKW buildings but not until then, at least from my understanding. Regardless, unless they cheat and reserve rooms before their truly available to members, you have no loss. If you'r competing with 95 members for 100 rooms or 90 members for 95 rooms is the same. I don't believe there is a restrictions on how many they can own, only a statement that they intend to keep some back as a margin.

 

[BIERMUGG]

Maybe I' am making a big deal over nothing but if DVC already holds 4% of all the rooms for cash ressies and cash ressies can be made up to 2 years in advance it just seems wrong to me if the DVC percentage gets larger when owners want to buy those points.
I just believe the members should own DVC.

George

 

[TnRobin]

I am not sure that cash reservations can be made two years in advance at a DVC resort. I just called recently to check on cash availabilty at Hilton Head in September. I did not identify myself as DVC because I was trying to get a DC discount. At 8 months out there were no rooms in the system to be booked on cash. At the 7 month mark, there were rooms for me to book.

 

[normr]

They theoretically could ignore any restrictions that we all have on points.