Point reallocation?

[ClaireinTN]

I'm sorry--I have looked for an explanation for this but I am confused about the point charts. Some posts refer to point reallocations and others to point increases--can someone explain, does Disney recompute the point charts every year?

 

[joeyrose]

each resort has a total number of dvc points to allocate across rooms, views, seasons, etc. the total is constant, but disney can reallocate to better fit supply and demand; however, when something goes up a point, something else has to go down a point. when something increases in a reallocation, somewhere something has gone down in the reallocation.

 

[ClaireinTN]

Thanks--So the point chart in subsequent years will be the same as the point chart for 2012, except for some reallocations?

 

[com_op_2000]

In 20 years of DVC, there have been three (3) reallocations.

 

[chalee94]

Thanks--So the point chart in subsequent years will be the same as the point chart for 2012, except for some reallocations?

right. the total number of pts for each resort for all rooms in the resort for the year cannot change. but that point total can be reallocated to adjust to demand...so a few years ago, weeknights got more expensive while weekends went down...in a few years, december nights might get more expensive if may nights get cheaper.

for BLT, members complained about some of the theme park views, so they were reclassified to standard views...which meant the additional leftover pts after the reclass had to be added back somewhere...so the new BLT pt charts appear to simply increase from the prior year, when the total (for all of BLT for the year) is still the same when you adjust for weighted averages based on room type.

 

[CarolMN]

Thanks--So the point chart in subsequent years will be the same as the point chart for 2012, except for some reallocations?

As the previous poster mentioned, the reallocations have been relatively few in number.

Most years, the charts stayed the same and I expect that to be true going forward.

Since the dates for Easter and Thanksgiving change each year, the spring Premier season also changes as do the specific dates that are charged the higher points to stay over Thanksgiving. But the previous dates for Easter and Thanksgiving go down so the total remains the same.

 

[Dean]

In 20 years of DVC, there have been three (3) reallocations.

Isn't it 4 if you could the Treehouse changes. Once about every 5-7 years is about right, they simply put it off too long until recently. As you get further in, they should become less common even. However, I believe they purposefully overcompensated with the reallocation spread out over 2 years so the question is whether they will swing back part of the way later. The other issue is whether they will change early Dec and a couple of other times to higher seasons. My prediction is we'll see one in about 3-4 years and another in about 5-7 after that. It's hard to predict after that because it depends on the changes they make then.

 

[drusba]

Isn't it 4 if you could the Treehouse changes. Once about every 5-7 years is about right, they simply put it off too long until recently. As you get further in, they should become less common even. However, I believe they purposefully overcompensated with the reallocation spread out over 2 years so the question is whether they will swing back part of the way later. The other issue is whether they will change early Dec and a couple of other times to higher seasons. My prediction is we'll see one in about 3-4 years and another in about 5-7 after that. It's hard to predict after that because it depends on the changes they make then.

The reallocations have been five, six or seven depending on how you count: (a) OKW in the early 1990s to shift points among seasons; (b) very early in BWV's history in 1996 they redid the point structures and created lower point standard views although that was not a true reallocation as they actually lowered the total points applicable to the resort; (c) there were reallocations effective in two consecutive years in 2010 and 2011 mainly to shift weekday points to weekend; since the total change for the two years was more than a 20% change per night (up or down) they had to do it in two years because you cannot make more than a 20% change in any one year, and thus you might count that two year change as only one reallocation; (d) effective 2012, they did a shift at AKV to change two GVs at Kidani to standard view and some savanna rooms at both buildings to standard view point cost; effect was to raise points required for savanna views somewhat; (e) effective 2013 they will shift points at SSR raising treehouses across the board for all seasons by about 15% and lowering other SSR rooms a little bit; (f) also effective 2013, two of the lower BLT theme park view floors will become standard view; effect is to make points for views other than standard a little higher; since both changes are happening at the same time one might count the 2013 change at the two resorts, SSR and BLT as only one reallocation.

One might think they should become less common but obviously in the last four years DVD has been quite active at making reallocations and thus one cannot readily assume there won't be more in the near future. Moreover, reallocations can have significant adverse impacts depending on the members, e.g., imagine how those who bought SSR just to get the treehouses felt when they learned the point cost was to go up 15%; even when you are a wise purchaser who buys more than you need to cushion against a possible reallocation, you could hardly expect that big of a change (30 to 40 points a week) to occur to the total weekly cost for all weeks of the year for the same type of room.

 

[cz4ever]

I'm actually surprised there haven't been more re-allocations. If the decisions were driven entirely based on wanting to even out demand, and not to also help Disney get more customers on-site during certain periods, I'd expect to see shifts that increased the cost of the most desirable locations/seasons until their demand was roughly on par with the rest of the units/seasons. For example, market demand would seem to justify higher points costs for BWV and BCV during F&W and (even) higher costs at all resorts during the holidays, 4th of July, and Easter (and lower costs at other times). The spike in demand in early December might also indicate its overly discounted --- Disney is motivated to get people into the park then, but in theory that should not be DVC's primary concern.

Note that I'm not arguing in favor of the above, and in fact the first example would hurt me if my BWV purchase goes through, but in theory DVC should be able to select point costs that equalize demand at all times of the year. The shift of points from weekends to weekdays to compensate for the tendency at the time for DVC owners to book Sun-Thu stays to avoid the (overpriced) weekend nights is an example of this kind of demand-balancing adjustment.

That said, past history would seem to indicate that they are very slow to adjust point costs.

 

[Dean]

I'm actually surprised there haven't been more re-allocations. If the decisions were driven entirely based on wanting to even out demand, and not to also help Disney get more customers on-site during certain periods, I'd expect to see shifts that increased the cost of the most desirable locations/seasons until their demand was roughly on par with the rest of the units/seasons. For example, market demand would seem to justify higher points costs for BWV and BCV during F&W and (even) higher costs at all resorts during the holidays, 4th of July, and Easter (and lower costs at other times). The spike in demand in early December might also indicate its overly discounted --- Disney is motivated to get people into the park then, but in theory that should not be DVC's primary concern.

Note that I'm not arguing in favor of the above, and in fact the first example would hurt me if my BWV purchase goes through, but in theory DVC should be able to select point costs that equalize demand at all times of the year. The shift of points from weekends to weekdays to compensate for the tendency at the time for DVC owners to book Sun-Thu stays to avoid the (overpriced) weekend nights is an example of this kind of demand-balancing adjustment.

That said, past history would seem to indicate that they are very slow to adjust point costs.

The reality is there should have been. My info suggests that there should have been one around 2000 to 2001 but that DVC was timid because of negative feedback on other issues.