Rack rate increases??

[manning]

Was just on the resort board and there was a posting about some increases.

One party booked a value '03 rate at the CR tower with a $360 rate. an increase of $35 or 10.7 % increase

Another party booked a Feb rate at POR with a $148 rate. An increase of $15 or 11.2 % increase.

There are questions as to whether these are mistakes. If not, it looks like hotel rates will out pace dues increases in 2003.

 

[Maistre Gracey]

Thanx for the info, manning.
I'm glad I bought DVC when I did! This just might save me some cash after all!

 

[chris1gill]

Based on prior increases in prior years, I don't think this is out of the realm of possibility... For instance I know the rack rate increases 2 years ago were quite substantial at BWV's, people that pay cash should try extra hard to get Code or AP discounts, those discounts (not as low as they used to be) do help to make the resorts affordable.

This is precisely why we bought into DVC by the way The cash prices keep increasing!

 

[vernon]

Don't forget that due to Sept 11, there were a lot of hefty discounts available this year. I think that it is likely that prices were lower this year than last, hopefully things are now back to usual and if taken over 2 or 3 years you will see those increase rates will drop back to the historical rate of 7-8 % PA inflation.

While I wouldn't usually be happy to see increases at those rates, I think it is a good sign of a healthy return to normal booking numbers.

 

[Regina]

The official room rates for 2003 have not released. What Disney does is allow a room to be held by a deposit, with the disclaimer that the correct amount will be applicable once the actual rates are published.

It's too soon to tell what the increases will be.

 

[erikthewise]

Out of curiosity I figured out rack rate increases over the period 1993-2001, taken from the same source (Birnbaum's Official Guide). I used the lowest rates for both years 1993 and 2001 for each of the WDW resorts which DVC members can get through points.

The average rate of increase was 4.15%, though there was significant variation between resorts. The moderates and the Polynesian were the highest, and I think Contemporary was the lowest.

 

[PamOKW]

Rack rate increases have far outpaced dues increases. I'll see if I can find some of the numbers and post them.

 

[PamOKW]

Just to quickly give you a rough idea of rack rate vs. dues increases.

Rack rates increases vary based on size of the unit, which DVC and season. At OKW, rates from 1997 to 2002 have increased from 18%-64% based on the variables. At BWV, there has been a 9%-61% increase from 1999-2002. VWL has seen increases of 2%-4% from 2001-2002.

Dues at OKW have increased 2% from 1997 to 2002. I haven't got a comparison for BWV dues but I'm sure it's roughly the same. Dues increases are far below room rate increases.

 

[Bubbleboy]

Wow! Can not imagine what a 1 bedroom at any of the DVC properties will be 10, 20, or 39 years from now. So glad we own DVC so that we can enjoy WDW for the next 39 years with out worrying about hotel rates.

 

[jmminarik]

Don't forget, Dues can only increase commensurate with maintenance costs and taxes. DVC can't make a profit off of our dues. I'm sure they 'dump' money at the end of the year so that there is no profit on the books, but on the whole what we pay in dues goes into the properties.

Cash ressies on the other hand can be profitable. This is purely a selfish attitude, but I'd much rather the cash paying public pay more in rates than to have DVC rely more on dues for the running of the resorts. Membership should have its priveledges.

Joe, normally not this selfish.

 

[joepoe]

Originally posted by PamOKW

Dues at OKW have increased 2% from 1997 to 2002. I haven't got a comparison for BWV dues but I'm sure it's roughly the same. Dues increases are far below room rate increases.

I think our BWV dues actually went down one year.

 

[Mickmse2002]

Joe, nothing wrong with being a little selfish on this topic. One of the main reasons we joined DVC was as a hedge against inflationary room rates. Does my heart good to see the cash rates go up as it reinforces the decision to "lock" my rates now.