It sounds like housekeeping costs for ALL cash stays are funded by the stay itself.
For the sake of argument, let's assume that a cash guest pays $400 for a room and of that, $150 is tied to operating expenses (housekeeping, front desk, utilities, transportation, etc.)
All of those cash expenses are budgeted entirely outside of the DVC dues. And $150 of the monies paid by the guest goes toward covering those expenses.
The remaining $250 in "profit" would be allocated to the proper entity. If the room was a DVC breakage unit, the $250 is breakage income for the DVC side. If the room was made available due to a member exchange program, the $250 goes to off set those exchange costs. If it was a room owned by Disney, they keep the $250.
Frankly that seems like a much more accurate accounting than lumping all of the costs together--particularly since cash rooms get serviced much more frequently than villas. Dues reflect only the anticipated DVC owner usage of such services while usage by cash guests is kept entirely separate.
The cash guest vs. owner split would have to be projected in advance so that Disney can figure out how much to allocate to each group. That's where we get into the annual budgetary fluctuations that Mike described.
Any CPA with access to the underlying costs could make these calculations in their sleep. It's child's play.
For the sake of argument, let's assume that a cash guest pays $400 for a room and of that, $150 is tied to operating expenses (housekeeping, front desk, utilities, transportation, etc.)
All of those cash expenses are budgeted entirely outside of the DVC dues. And $150 of the monies paid by the guest goes toward covering those expenses.
The remaining $250 in "profit" would be allocated to the proper entity. If the room was a DVC breakage unit, the $250 is breakage income for the DVC side. If the room was made available due to a member exchange program, the $250 goes to off set those exchange costs. If it was a room owned by Disney, they keep the $250.
Frankly that seems like a much more accurate accounting than lumping all of the costs together--particularly since cash rooms get serviced much more frequently than villas. Dues reflect only the anticipated DVC owner usage of such services while usage by cash guests is kept entirely separate.
The cash guest vs. owner split would have to be projected in advance so that Disney can figure out how much to allocate to each group. That's where we get into the annual budgetary fluctuations that Mike described.
Any CPA with access to the underlying costs could make these calculations in their sleep. It's child's play.
