Questions about Maintenance Fees

[DisneyStarWisher]

Does Disney make any profit off of maintenance fees?

 

[BillPA]

Yers, they take 12.5% for ????

 

[Sandisw]

We pay DVCMC a straight 12.5% to manages the use of the program by owners. There is also a $1 per owner fee that goes to BVTC.

DVCMC contracts with Disney to be property manager. They run the resorts.

 

[DisneyStarWisher]

We pay DVCMC a straight 12.5% to manages the use of the program by owners. There is also a $1 per owner fee that goes to BVTC.

DVCMC contracts with Disney to be property manager. They run the resorts.

So DVCMC and BVTC get money from our annual dues, but the Walt Disney Company does not, correct?

 

[Sandisw]

So DVCMC and BVTC get money from our annual dues, but the Walt Disney Company does not, correct?

They get it in terms of being the property manager of the DVC resorts. For example, we pay for mouse keeping and those CMs are employees of TWDC

But what we pay for dues goes to cover all the expenses incurred for running the resort.

 

[DisneyStarWisher]

They get it in terms of being the property manager of the DVC resorts. But what we pay for dues goes to cover all the expenses incurred doe running the resort.

I guess I am confused. Is the Walt Disney Company and DVCMC one and the same? And everything but the 12.5% + $1 covers the expenses of the resort, correct?

 

[Sandisw]

I guess I am confused. Is the Walt Disney Company and DVCMC one and the same? And everything but the 12.5% + $1 covers the expenses of the resort, correct?

DVCMC Disney Vacation Club Management Company is an affiliate or division of the bigger Walt Disney World Company. So is BVTC…it’s a division of Disney.

There are multiple division of Disney that fall under the big umbrella of what is TWDC.

But the annual budget is based on operating expenses and taxes…as well as capital reserves.

So, the company doesn’t get a fee for no reason, but other than taxes, the rest of the fees go to some division of Disney because they run the whole program.

 

[DisneyStarWisher]

DVCMC Disney Vacation Club Management Company is an affiliate or division of the bigger Walt Disney World Company. So is BVTC…it’s a division of Disney.

There are multiple division of Disney that fall under the big umbrella of what is TWDC.

But the annual budget is based on operating expenses and taxes…as well as capital reserves.

So, the company doesn’t get a fee for no reason, but other than taxes, the rest of the fees go to some division of Disney because they run the whole program.

Thank you for the clarification.

ETA: Is there a way to know what exactly the 12.5% that goes to DVCMC pays for? For example, what percentage of that pays MS CM's salaries, etc?

 

[wnielsen1]

Thank you for the clarification.

ETA: Is there a way to know what exactly the 12.5% that goes to DVCMC pays for? For example, what percentage of that pays MS CM's salaries, etc?

The 12.5% is straight profit. Members pay for CM salaries separately through dues.

 

[Sandisw]

The 12.5% is straight profit. Members pay for CM salaries separately through dues.

Not true. The 12.5% pays DVCMC to manage the program which covers the costs for MS…as well as some MA including Membership Accounting… all expenses related to them, including the salaries of people who are employed by DVCMC.

The CM salaries paid from other portion of the dues are ones working at the resorts, etc…and that is part of what we pay for the property management.

 

[wnielsen1]

Not true. The 12.5% pays DVCMC to manage the program which covers the costs for MS…as well as some MA including Membership Accounting… all expenses related to them, including the salaries of people who are employed by DVCMC.

The CM salaries paid from other portion of the dues are ones working at the resorts, etc…and that is part of what we pay for the property management.

Thanks Sandi!