Question on revenue from cash rooms at BWV

[JandD Mom]

Hi all, (this question can easily apply to any DVC property since excess inventory for all of them is bookable through Disney Travel).


All of this talk about DVC Dues increases has me thinking. What happens if I call Disney travel (NOT DVC) , and book a room for cash in a 1 bedroom villa at the Boardwalk. Who keeps the revenue from that booking?

When Disney takes over a room out of DVC inventory, does Disney pay DVC for that room? Do they split the revenue if the room is booked?

Also, how do they apportion fees (transportation, front desk etc) with regard to that cash booking?

Thanks!

 

[CarolMN]

Hi all, (this question can easily apply to any DVC property since excess inventory for all of them is bookable through Disney Travel).


All of this talk about DVC Dues increases has me thinking. What happens if I call Disney travel (NOT DVC) , and book a room for cash in a 1 bedroom villa at the Boardwalk. Who keeps the revenue from that booking?

Depends on which "bucket" that cash room came from. If it came from deveoper inventory, the revenue goes to the Developer. If it came from the portion of the resort Disney still owns, the revenue goes to Disney. If it came from member inventory (member used points for a non-DVC option), the revenue goes to DVC who uses it to pay for the member's choice. If it came from member inventory sent to CRO/WDWTC 60 days or less prior to arrrival (because DVC doesn't think the room will be reserved by a member for points), the revenue goes to DVC and is used to reduce dues. This is known as "breakage income" and you will see a line for it in the budget. In each case, CRO/WDTC gets a percentage of the revenue from each room it books (think of it as a TA commission) for doing the work.

When Disney takes over a room out of DVC inventory, does Disney pay DVC for that room? Do they split the revenue if the room is booked?

Don't understand exactly what you mean by " Disney takes over a room out of DVC inventory". AFAIK< Disney doesn't do that. If you are talking about cash bookings by CRO/WDWTC, I think the above explanation will answer your question.

Also, how do they apportion fees (transportation, front desk etc) with regard to that cash booking?

DVC members pay for DVC resort transportation via their dues. It's an operating expense. AFAIK, there is nothing to apportion to any cash bookings, since they are really mostly "trades" by members. In lieu of paying dues on the small percentage of ownership Disney retains in each resorty, Disney provides a kind of "guarantee" - that the annual budget will cover all expenses. If not, Disney pays the "overage". The developer covers dues on the unsold portion of a DVC resort - like ar SSR.

Hope that helps.

Best wishes -

 

[JandD Mom]

Thanks. Now here is the follow up, if you know...

How does CRO/WDWTC prioritize which room it sells first? Does it first sell its own inventory, developer, then DVC? Or is it First In First Out? I am curious if the DVC rooms sit unoccupied during the slow times of the year because CRO sells off its inventory first.

Thanks!

 

[CarolMN]

Thanks. Now here is the follow up, if you know...

How does CRO/WDWTC prioritize which room it sells first? Does it first sell its own inventory, developer, then DVC? Or is it First In First Out? I am curious if the DVC rooms sit unoccupied during the slow times of the year because CRO sells off its inventory first.

Thanks!

Don't know the answer to your question. If I had to guess, it's just a "bookkeeping formula". They probably apportion the revenue according to the number of rooms in each "bucket". (Remember, that'a a guess).

That said, I do not think very many DVC rooms "sit empty" even during slow times of the year - that's why the point requirments are not the same all year round. It may take longer to fill the rooms during the slower seasons, but eventually the rooms fill. The DVC system is designed such that the resorts are at, or nearly at, capacity all year round. That's why the point requirments are set the way they are - the lower demand times have lower point requirments to encourage members to book during the less popular times.

Best wishes -

 

[RobDoc]

As Carol already pointed out, CRO doesn't have anything EXCEPT it's own inventory until 60 days before. The CRO inventory is comprised of the 2-4% owned by DVD (much of that inventory is used when rooms are taken out of service for rehab/renovation- so it doesn't make up a great number anyway) and the inventory created from members using their points for non-DVC options (DCL, WDW resorts, Concierge Collection). CRO does not have access to any of the member's inventory until that 60 day "Breakage Period" when anything unreserved by members using points is available to CRO for cash reservations. Much of the year, there is little (if any) of that breakage inventory available except for weekends.