Prediction re AKV Maintenance Fee Increases?

[ADP]

I don't mind paying a little more for dues than other DVC resorts as long as AKV is going to be "stepped up" or "kicked up a notch"; which I believe it will be.

 

[Surly]

Maybe we can get it used

Excellent suggestion. Everyone knows Giraffes lose 30% of their value the minute you drive them off the savannah.

 

[tjkraz]

The starting dues are in line with the other hotel-based DVC resorts. I'm betting that they've done their homework, they have several years of experience running AKL so they know what it costs to care for the animals and they have set the dues accordingly.

I'm sure that's very true. In fact, since the initial dues are based upon the conversion of existing rooms, Disney should know EXACTLY what the costs will be (within normal margins, of course.) DVC members are simply picking-up a share of the already budgeted savannah costs, front desk, housekeeping, etc.

However, the one factor that I don't think anyone has mentioned is what will happen when the new building opens. I mean, face it, the building doesn't even EXIST yet, much less does DVC have any idea what it will cost to operate. It is likely that the dues will undergo some sort of adjustment in 2008/2009 when the new building begins to come on line. Since the new building will offer many of the same amenities as the existing, there shouldn't be any radical differences. But we really don't know what sort of variances might exist in things like depreciation schedules, staffing levels, property taxes, insurance, etc.

I'm not implying that DVC is doing anything underhanded, but I do think it's important to consider that the dues being communicated now are based entirely upon 90-some coverted rooms with no consideration given to the future construction that is still a couple years down the road.

 

[theoarn]

If we are speaking of maintenance fees, Isn't the max increase limited to 3% per year?????? I thought that the max per year was set at 3% but I could be wrong.
No that is wrong. sorry
theo

 

[tjkraz]

If we are speaking of maintenance fees, Isn't the max increase limited to 3% per year?????? That is what it is on the other DVC properties.
theo

Oh no, no, no.

The dues are contractually capped at 15% increase per year. Historically they have averaged about 3-4% increase annually, but the rate of increase has the potential to be much larger. However, the dues are tied to the operating budgets of the resorts, so we can expect Disney to make reasonable efforts to control costs. But some of the more volatile components are out of their control--things like insurance premiums or fuel for the busses (part of our transportation costs.)

Also note that property taxes are excluded from th 15% cap. Whatever increase Orange County decides to impose is simply passed-along to members.

 

[LisaS]

If we are speaking of maintenance fees, Isn't the max increase limited to 3% per year?????? I thought that the max per year was set at 3% but I could be wrong.
No that is wrong. sorry
theo

This table shows the dues increases at each resort over the years: http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm