- Jun 12, 2017
Not breakage across all DVC but breakage at DLH. In theory, if it's an enclosed system without other DVC people booking at 7 months then the only people booking are DLH owners and cash reservations. In such a system there only there is more opportunity for Disney to sell unbooked cash rooms, thus increasing revenues above the breakage limit.I am not sure overall across all DVC the breakage would increase by keeping it separate unless you are saying they are not going to give owners the options to trade to RCI, Cruises, or AVD? I can't see them completely going away from their model and putting this resort on an island. I also think if they did do this you actually would have owners more in the loop on renting out their points possibly even lowering breakage again overall across all of DVC.
Related, a more jaded person than myself would point out how Disney can make more money per room on cash DVC stays than hotel side stays, where all costs are spread over points/owners, thus more of the costs (mousekeeping, etc) are disproportionately paid by DVC owners while Disney benefits tremendously after reaching its threshold that it keeps 100% revenue above the 2.5% breakage line item. So during the covid days with dvc members leaving rooms open, Disney is doing well putting people into those rooms than putting into hotel inventory. DVC owners pay the expenses for the cash reservation person so Disney profits better on the same room
Circling back to DLH, it behooves Disney to have a ton a cash payers fill the gaps left behind by DVC owners not being to book. But this all assumes that occupancy is high and that's not necessarily a guarantee if a new system is created.