Members paying for cash guests'daily housekeeping?

[zavandor]

DVCMike posted in his report of the annual meeting a question&answer that I haven't understood.

Housekeeping fell 1.3% at BWV, with modest increases at others, but rose 11.1% at BLT, and 17.3% at SSR. Why?


Answer:


It is based on the expected ratio of cash guests and DVC members staying at a resort. If more members than cash guests are expected, then housekeeping will cost more.

Why the amount of cash guests should matter for our housekeeping expenses?
Disney decides that cash guests at DVC resorts get daily housekeeping instead of the usual cleaning schedule.
Why members pay for this additional service?
Have I got it wrong?

 

[DVC Mike]

No, in my haste to write down my Q&A with the Treasurer, I misstated what she said. I have since corrected the post. It should have had an answer of:

It is based on the expected ratio of cash guests and DVC members staying at a resort. If more members than cash guests are expected, then housekeeping will cost more.

 

[disneynutz]

No, in my haste to write down my Q&A with the Treasurer, I misstated what she said. I have since corrected the post. It should have had an answer of:

It is based on the expected ratio of cash guests and DVC members staying at a resort. If more members than cash guests are expected, then housekeeping will cost more.

Expected

 

[DVC Mike]

Expected

Well, a budget is based on expected costs.

 

[JWG]

If there's a higher ratio of member point stays vs. cash stays (i.e. the resort is mostly booked on points), then mousekeeping goes up because there is no cash guests paying for their mousekeeping. There are more point guests getting mousekeeping. It's not that we're paying for the cash guest's mousekeeping. It is a budget so is based on projections. Likely based on historical actuals.

 

[Sammie]

Expected

How would you think a budget is done?

 

[jmassey1samchi]

so bwv experienced a higher percent of cash guests vs the last period? seems like a very popular dvc resort

 

[Halle]

I am having trouble with the cash versus members costs. I know I am missing something but it seems as if member stays would be less than cash guests because we have trash and tidy and non DVC cash paying guests get their room cleaned on a daily basis. Please help me understand this. Thanks.

 

[JWG]

Member stays are less than cash paying guests. The scenario here is strictly based on the % of rooms/nights that are cash versus member points. As a resort has more member nights than cash, the cost of mousekeeping goes up for members (because more nights equals more cleanings). As cash nights go up, the cost of mousekeeping goes down (because fewer member nights means fewer cleanings). In this scenario, it is predicted that there will be fewer cash nights and more member point nights meaning they have to increase our mousekeeping fees because they're not being used by cash guests.

 

[KAT4DISNEY]

I'm also having a difficult time understanding this explanation as I think about it more. The thing is that all the rooms, except approx 2%, are owned by DVC members at BLT. Housekeeping should be fixed based on the number of rooms and if more members are using the room then overall the housekeeping budget for the entire resort should be less because it is provided less often. The dues are allocated to cover the housekeeping costs no matter if it's used by the member or a member trades out and it eventually is rented for cash. The cash reservation should only come about due to trades out or breakage. But each cash reservation would not be paying for the housekeeping because it's already been paid for by the owners thru the dues.

 

[zavandor]

First of all sorry for the confusion, I didn't re-read DVCMike's post when I copied it to open the new thread.

If I understand correctly, Disney is predicting much less cash guests at SSR than other years, I wonder why. Maybe they think the opening of Disney Spring might bring back more owners to book the resort?
And what happen at the end of next year? Will they assess if it was not the case reimbourse the excess?


Kat4disney question is another interesting one.
We know that at mixed resorts, shared amenities are paid part by cash resort budget and part by DVC owners via dues, depending on occupancy. For example, reason given for BLT dues increase was an increase in members occupancy that caused more shared amenities budget to be paid by DVC.
Now it looks like "mousekeeping" is a shared amenity, even at not mixed resorts.
However, is SSR members must pay more for mousekeeping, why don't we pay more for pools and such? Cash guests offset mousekeeping but not other amenities?

I'm a but confused

 

[KAT4DISNEY]

First of all sorry for the confusion, I didn't re-read DVCMike's post when I copied it to open the new thread.

If I understand correctly, Disney is predicting much less cash guests at SSR than other years, I wonder why. Maybe they think the opening of Disney Spring might bring back more owners to book the resort?
And what happen at the end of next year? Will they assess if it was not the case reimbourse the excess?

And I'd ask the question for SSR too - if it's more point stays then the housekeeping budget should be less, not more.

At BLT, even if it's a shared cost (which I don't believe) then the CR would be having the higher percentage of daily housekeeping vs the T&T/full clean schedule for points so it should have gone the other way.

 

[macman752]

I'm confused, too.

If I stay on points then mousekeeping is based on the length of stay--Trash & Towel, Full Service on regular day and/or check-out. Cash guests get daily mousekeeping. Except for the small percentage of rooms held by DVC a cash guest room is created by members using their home resort points at other DVC properties, banking, trading out, etc. More cash guests means more frequent mousekeeping and one would think higher mousekeeping costs.

If DVC Mike's recollection is correct--

It is based on the expected ratio of cash guests and DVC members staying at a resort. If more members than cash guests are expected, then housekeeping will cost more.

--then I am baffled.

Why are costs higher for member stays vs. cash guests?

 

[hakepb]

I think It's starting to make more sense to me.
If I had enough points to stay in a SSR studio for 52 weeks...

Year 1)
I would get 91 housekeeping services if I used the room all 52 weeks

Year 2)
If I used 2 months of points for a cruise, cash guests would pay for 8 weeks of housekeeping, and I would pay for ~75 housekeeping services.

Year 3)
I only use 1 month of points for a cruise, and I stay in the room the rest of the year and pay for 82 housekeeping services.

As a member, my housekeeping dues would go down ~18% after year 2 (because cash guests cover that 18%)

Then after year 3 my dues would go up ~9%, because as a member, I used my room, more.

 

[spiceycat]

I stay at BLT often - if only DVC member are using the place - how come all the guests close to me are non-members? - okay I am noisy and ask when they became members and their home resort (if they are members). and at least half say they are renting from Disney not a DVC member?

will never stay on the first floor again.

 

[T00dles]

I stay at BLT often - if only DVC member are using the place - how come all the guests close to me are non-members? - okay I am noisy and ask when they became members and their home resort (if they are members). and at least half say they are renting from Disney not a DVC member?

will never stay on the first floor again.

What's wrong with the first floor?

 

[spiceycat]

What's wrong with the first floor?

will tell you tomorrow when the library (not internet yet at my new house) is not closing - thanks

 

[circhead]

Housekeeping is made up of two components - personnel costs and materials.

Personnel costs are basically a fixed component - Disney must pay the salary and fringes whether the mousekeepers are cleaning or not. If most of the rooms are being used by members the cost of materials will go down but salaries remain constant meaning that more of the fixed costs must be absorbed by the members because there are no cash paying guests to charge a portion of the fixed costs to.

If you look at any organizations profit and loss statement you will see that the largest portion of expenses is the salary line - when DVC cannot transfer a portion of this to cash guests members must absorb it.

 

[disneynutz]

Housekeeping is made up of two components - personnel costs and materials.

Personnel costs are basically a fixed component - Disney must pay the salary and fringes whether the mousekeepers are cleaning or not. If most of the rooms are being used by members the cost of materials will go down but salaries remain constant meaning that more of the fixed costs must be absorbed by the members because there are no cash paying guests to charge a portion of the fixed costs to.

It's hard to believe that Disney gets the charge backs to DVC owners correct, they get so many other things wrong including software, training, and policy enforcement.

If you look at any organizations profit and loss statement you will see that the largest portion of expenses is the salary line - when DVC cannot transfer a portion of this to cash guests members must absorb it.

 

[circhead]

I would bet the complexity of Disney's accounting is such that each cash basis reservation is made of of components of each "service" used or available to cash paying guests. It is then very easy to compute the housekeeping charge associated with the reservations of cash guests and give a charge back to DVC equating to said amount, less the associated management fee charged by Disney Resorts and hotels itself.

Again they are talking about budgeted amounts which are really best guess scenarios based upon historical data and current trending.