point allocation

[Mickey'sApprentice]

OK guys, I know I've been on the DIS for awhile, but this question has been bugging me since I've started hearing about developer points.

With choices of studio, 1 , 2, & 3 bedrooms; 365 days in a year; weeknight and weekend points; and 6 resorts on property and 2 resorts off property; and a 95% occupancy rate; how does DVC keep the resorts filled, and not have a lot of owners mad that they can't get rooms?

I know that some parts of the year fill really easily like October at BW & BC, but it seems like that other parts of the year would be half empty, with lots of owners complaining that they lose their points. At the same time, how can Disney give away extra points? It seems like they are giving away a whole lot of points right now.

I'm not looking for the simple answer on this. I understand that there are different point charts, but how does the system work so efficiently? Am I missing something?

Just curious.

 

[ZekeKelso]

Not a complete answer - but things to think about

- the point charts are created to equalize demand. It can't be perfect - hence the excess demand in October and December - but it does a pretty good job - a better job than you might think just reading the DIS. If demand really were unbalanced, Disney always had the right to rejigger the charts.

- All the points that Disney gives away are real points tied to specific units. They don't just come out of thin air. Disney owns units that are built but not yet sold, ones they have repossessed, and units they have bought back using their ROFR.

 

[RobDoc]

DVC has never offered a detailed accounting how the points are used each year - but there are definitely times when the resorts are far below 95% system wide. In some cases, this is due to points used for non-DVC options where CRO was unable to make cash reservations - so villas go unused. I suspect the $95 fee for DC WDW resorts is a step towards minimizing the effect of that.

Developer points come from unsold inventory at new resorts like SSR and AKV, but also from reclaimed inventory of older resorts. These points are gained thru ROFR, foreclosure and from points forfetied by members - and now MS has a good concept of those numbers after 8 months of each Use Year. While comments on our board suggests that few members lose points each year due to expiration, I suspect the reality is such that there is a significant number of points wasted each year system wide - and every timeshare has similar issues where rooms go unused - including exchanges.

As for the balance of DVC occupancy, while there are times when members are unable to find availability (especially within 4 months of arrival), it does not mean that other times of the year are only half occupied. Many/most of those members disappointed by lack of availability go on and reserve for another date - possibly using more points than they would have at times like early December.

To add to the challenge for MS is the use of banking and borrowing to further compound the reservation system - since in any given year it's possible for demand to be up to 3 times availability. In practice, I suspect that banking/borrowing is pretty well balanced from year to year.

I think the system works well because of the way it has been designed, because of the way members understand the policies and because of the flexibility by both DVC and by members themselves.

 

[Mickey'sApprentice]

Thanks Zekekelso and Webmaster Doc.

That was just the kind of in-depth answers I was looking for.

 

[disneynutz]

The developer points for AKV2 doesn't seem right to me. DVD is giving points to be used only at SSR. That has to affect SSR availability. AKV2 isn't open for reservations yet so the number of usable points have increased, while the available room inventory hasn't. What am I missing here?

 

[RobDoc]

The developer points for AKV2 doesn't seem right to me. DVD is giving points to be used only at SSR. That has to affect SSR availability. AKV2 isn't open for reservations yet so the number of usable points have increased, while the available room inventory hasn't. What am I missing here?

DVD is giving up points they own - either from ROFR, foreclosure or unsold inventory. They are offering these as a sales incentive - much like the incentives offered for almost a year, except in this case the offer is only for the yet-to-be-completed units at AKV and the points can only be used at SSR. I suspect that explanation is just because historically SSR has had more availability in the past year so instead of placing more demand on the other sold out resorts, DVD has decided that the extra demand created by this incentive may only be used at SSR. The incentive is NOT using points at AKV, it uses points currently held by DVD at other resorts so it does not increase the number of points already available in the system.

 

[disneynutz]

DVD is giving up points they own - either from ROFR, foreclosure or unsold inventory. They are offering these as a sales incentive - much like the incentives offered for almost a year, except in this case the offer is only for the yet-to-be-completed units at AKV and the points can only be used at SSR. I suspect that explanation is just because historically SSR has had more availability in the past year so instead of placing more demand on the other sold out resorts, DVD has decided that the extra demand created by this incentive may only be used at SSR. The incentive is NOT using points at AKV, it uses points currently held by DVD at other resorts so it does not increase the number of points already available in the system.

Seems like they are declaring units earlier. Any idea how many potential developer points exist? Restricting the developer points use to SSR only, instead of all resorts really reduces SSR availability. Doesn't seem fair.