Pre-opening program???

[birdiesunshine]

Does anyone know anything about this? It's on their website under member benefits and privileges as an adobe document. DVC is saying it only pertains to a resort once open but it looks to me like it is for resorts under "construction" and "DVD" is taking the points not DVC. But is says you have to book through DVC. We've spoken to 3 agents and none of them can explain this to us. Have any of you seen this document? It also has a point chart and the points are discounted. This is driving me crazy!

 

[DVCGeek]

I might be wrong, but I THINK that means that although only part of those resorts have been declared into DVC inventory (much less sold) that members can book all or most of the property. Otherwise only a fraction of the resort could be used by members despite it being "open". For example, from what I've read elsewhere, BLT has only been declared into DVC through the 5th floor. Without this program only 1/3rd of the tower could currently get reservations from DVC members!

So, from our standpoint and also a MS booking one, it is just making a reservation at the property and completely transparent to all of us other than there actually being some rooms available to actually book!!!

 

[LisaS]

I agree with DVCGeek. I think it is a provision to allow DVC to book a member into any occupiable room in a resort under construction, not just the ones that have been declared into inventory. I only looked at the AKV point chart but it appears to be the same as the regular AKV chart. I didn't see any discounts. Which resort and room types were discounted?

 

[RobDoc]

The document is the Member Benefits Guide and the Pre-Opening Program is a description of the resorts now under construction but not yet open. As of this moment, none of those resorts (or units in the case of THVs) have technically been declared as part of DVC (this has been the case with every DVC resort). Thus, while reservations are currently being accepted at those resorts, those reservations are part of this "Pre-Opening Program" until the resort actually opens. Until the resort is open for occupancy, no points are actually available for use - DVD is allowing those members to make these reservations in anticipation of the resort opening as expected.

The point charts included appear to be the same charts already in distribution for 2009 - they do not seem to be discounted in any way.

The bottom line is that this is bascially a legal disclaimer and will not affect the reservations already made or about to be made at those resorts unless there is some unexpected delay in the actual opening.

Here is a link to the document in pdf format - DVC Member Benefits Guide

Enjoy!

 

[birdiesunshine]

The program states that if you have a current reservation you could use your points and convert them to a new reservation using the properties under construction before they are sold to dvc and to members buying them. Properties that are not currently in dvc inventory but are completed. What don't I get about this program.

The way I read it is if rooms are completed and I have an existing reservation I could use my points at a resort under construction if the rooms are finished and not yet released to dvc. The revision was dated 2/11 so I know it is fairly new and somebody has to be doing this otherwise why announce it?

Lastly if they wait until the resort is open then it wouldn't be a pre-opening program? If BLV opens in August which is less than 7 months away as a owner at SSR I could book BLV now but this is saying pre-opening so I really don't get it

Sorry but I just don't

 

[LisaS]

The same information was present in the version of the Member Benefits guide dated 12/12/2007 except that in that case the only resort listed is AKV.

I believe what this really means is that they reserve the right to allow members to reserve more rooms than have been declared. In exchange they will take an equivalent number of rooms at other resorts and give them to CRO to rent out and the income will go solely to DVD, even though those rooms belong to members.

So let's say 100 rooms have been declared at Kidani but DVD expects 130 rooms to be available for occupancy by your travel dates. They could opt to make 110 of those 130 rooms available for booking to members on points. In exchange for making 10 additional rooms available to members, they would then take 10 rooms from other DVC resorts to be rented out for cash with the money going to the developer. That would allow more members to book at the new resort, which is a good thing, but require equivalent inventory to be surrendered to DVD.

ETA: With owners being able to book 11 months out, it must be very difficult to forecast exactly how many rooms will have been declared by that time since it depends on the pace of sales over that period. So another reason for this provision (and maybe it is the real reason for this provision) may be so they are covered in the event they are too optimistic about the number of rooms that will belong to members 11 months in the future. If they predict 100 rooms will belong to members by Jan 2010 and allow that number to be reserved on points but it turns out only 80 rooms are declared by that time, this gives the developer the right to take 20 rooms from other DVC resorts and rent them for cash to reimburse themselves.

 

[drusba]

Well, now that I have read through it carefully, I think all of the above is incorrect. The Pre-Opening program is actually something no one is actually doing and it is questionable whether anyone would want to do it.

Let's start with how things would work if no Pre-Opening program exists. Does that mean DVC could not do what it is doing now, taking reservations for BLT (or AKV) for times after it opens? No. It could do exactly what it is doing now. The condition is that none of those reservations will mean squat if the darn thing doesn't actually get an occupancy permit and open by the date you are supposed to be there. And if it doesn't open, you lose your reservation but they will have to give you your points back (and you may be stuck with not being able to bank them or not being able to make another reservation for the same period elsewhere). Likewise, if they happen to "overbook," meaning they allow DVC members to reserve more time than DVC Members may be entitled to by the time of any given reservations, they could also cancel your reservation and give you your points back. That one is unlikely to occur because DVD can always allow use of more reservation time for DVC Members as long as rooms are open regardless of whether enough has been declared into the system, but it has the option to just cancel the reservation and give points back.

So what is this Pre-Opening Program? Exactly what it says it is and you need to actually request to do it. You can call to reserve at BLT (or other unopened resort). They can confirm that reservation (conditioned on the resort opening) but you in fact have not yet used your points for it yet. You are then required on the same call to make another reservation at another DVC resort (one that is actually open) using the same amount of points needed for the BLT reservation (it can be, but does not have to be, for the same time period as your BLT reservation). You are then deemed to assign that particular reservation to DVD in return for your BLT reservation, and DVD can go about renting the reservation you made at the other resort to others. Effect: if you then do not get your BLT reservation because the thing does not open, you don't get your points back. All DVD needs to do is give you a "replacement benefit of the type, quality, value and term reasonably similar to the Pre-opening Program [your BLT reservation]. Reservations at a DVC Resort [meaning any DVC resort] shall be deemed conclusively to be reasonably similar to the unavailable Pre-Opening Resort." In other words, DVD can give you a reservation for the same time period, same number of days, and for the same size room (studio, 1BR, 2BR) at any other DVC resort (most likely SSR) and you have to take it even if its point cost is less than what you used to reserve BLT and DVD doesn't have to give back any difference in points. It is hard to justify doing it except to give some confidence they will give you a reservation elsewhere for the same period or they will otherwise justly compensate you -- such as giving your points back and allowing you to bank them even if beyond a banking date -- because you gave them something of value, your other reservation, and did not get what you bargained for in return.

My best guess is no one has ever actually used the pre-opening program. My second guess is most at MS wouldn't even understand what it is if you called and asked to do it.

 

[SunnieRN]

Wow! That could be a huge nightmare if they didn't have rooms ready!

 

[birdiesunshine]

Well, now that I have read through it carefully, I think all of the above is incorrect. The Pre-Opening program is actually something no one is actually doing and it is questionable whether anyone would want to do it.

Let's start with how things would work if no Pre-Opening program exists. Does that mean DVC could not do what it is doing now, taking reservations for BLT (or AKV) for times after it opens? No. It could do exactly what it is doing now. The condition is that none of those reservations will mean squat if the darn thing doesn't actually get an occupancy permit and open by the date you are supposed to be there. And if it doesn't open, you lose your reservation but they will have to give you your points back (and you may be stuck with not being able to bank them or not being able to make another reservation for the same period elsewhere). Likewise, if they happen to "overbook," meaning they allow DVC members to reserve more time than DVC Members may be entitled to by the time of any given reservations, they could also cancel your reservation and give you your points back. That one is unlikely to occur because DVD can always allow use of more reservation time for DVC Members as long as rooms are open regardless of whether enough has been declared into the system, but it has the option to just cancel the reservation and give points back.

So what is this Pre-Opening Program? Exactly what it says it is and you need to actually request to do it. You can call to reserve at BLT (or other unopened resort). They can confirm that reservation (conditioned on the resort opening) but you in fact have not yet used your points for it yet. You are then required on the same call to make another reservation at another DVC resort (one that is actually open) using the same amount of points needed for the BLT reservation (it can be, but does not have to be, for the same time period as your BLT reservation). You are then deemed to assign that particular reservation to DVD in return for your BLT reservation, and DVD can go about renting the reservation you made at the other resort to others. Effect: if you then do not get your BLT reservation because the thing does not open, you don't get your points back. All DVD needs to do is give you a "replacement benefit of the type, quality, value and term reasonably similar to the Pre-opening Program [your BLT reservation]. Reservations at a DVC Resort [meaning any DVC resort] shall be deemed conclusively to be reasonably similar to the unavailable Pre-Opening Resort." In other words, DVD can give you a reservation for the same time period, same number of days, and for the same size room (studio, 1BR, 2BR) at any other DVC resort (most likely SSR) and you have to take it even if its point cost is less than what you used to reserve BLT and DVD doesn't have to give back any difference in points. It is hard to justify doing it except to give some confidence they will give you a reservation elsewhere for the same period or they will otherwise justly compensate you -- such as giving your points back and allowing you to bank them even if beyond a banking date -- because you gave them something of value, your other reservation, and did not get what you bargained for in return.

My best guess is no one has ever actually used the pre-opening program. My second guess is most at MS wouldn't even understand what it is if you called and asked to do it.

This is exactly what I thought it to be except after 4 phone calls to DVC they said it is just a legal verbiage to allow DVC to book rooms before they become available. Having said that, we currently have 415 points at SSR in a 2 bedroom for a week. We wanted to transfer the points to BLV or the tree houses and we were told that is not what the program is for, but they also couldn't tell us what it is for They said the resort wouldn't be officially open until May, but there are rooms already done and being sold as timeshare ownership but they won't let us use our current point reservation to book them. But it won't be a pre-opening program once the resort officially opens