SSR Cash Res Advertisement

[bfosbenner]

I am wondering why DVC would advertise SSR for cash reservations as a special to DVC "family relatives". It seems when I call for a points reservation I often am put on wait list and never seem to get the location that I request?

 

[DVC Mike]

Many DVC members wonder why they can call Disney CRO and book a villa using cash, when they can’t book a villa with points. Is Disney unfairly holding back rooms to rent via cash? No, this is not the case.

Anyone can book a cash reservation via Disney CRO, and DVC members can book one via DVC MS at a 25% discount, subject to availability. There are four major sources of inventory for cash reservation:

• Exchanges: The number one source of cash rooms is actually from the Member inventory. This occurs when members exchange/trade outside of the DVC resorts. This includes using your points to book the Disney Collection (hotels at the Disney theme parks and the Disney Cruise Line), Concierge Collection, and the Adventurer Collection. When a member trades outside of DVC, the points used to book the outside reservation are assigned to DVD to rent out. This does not apply to the World Passport Collection.

• Breakage: Another source of cash reservations includes Member inventory that has not been reserved by members using points. Any Member inventory not reserved by members using points is made available to Disney CRO at the 60-day mark for cash reservations by the general public. This is actually beneficial to DVC members, in that the association earns “breakage” income on these rooms rather than letting them sit empty.

• DVD-owned/ROFR: Another source of cash reservations is the inventory of declared points owned by DVD. These points are typically acquired by the ROFR process. Since DVD owns the points, they can rent them out.

• Undeclared: These are the units that have been built by the developer that has not yet been declared into the condominium association. Since DVD controls these units, they may be rented out for cash reservations

Finally, there is the “no less than 2%” of inventory that has been retained by the developer. This is usually used to schedule regular maintenance and refurbishment at a particular resort, but can possibly be rented out as cash reservations if not needed for maintenance.

 

[Nikisha421]

that is a lot of info but useful

 

[tjkraz]

Undeclare: Finally, there is between 2-4% of inventory that is “undeclared”, that is, that has not been declared into the condominium association, but has been retained by the developer. This is usually used to schedule regular maintenance and refurbishment at a particular resort, but can be rented out as cash reservations if not needed for maintenance.

Undeclared inventory and maintenance holdings are two different things.

Units remain undeclared from the time the structure is completed until the weeks or months before DVD prepares to sell them to new "members." At SSR, there are currently three floors of one building (out of 18 total) which remain undeclared. These points are wholly owned by Disney Vacation Development and available for rental to the public. They have no relationship to maintenance holdings in declared units.

As for maintenance, the units involved here are declared into the condo association. From a legal standpoint, DVD is required to maintain ownership of a portion of each individual unit. The amount of ownership is stated as being "no less than 2 percent", so whether it ever climbs as high as four precent is purely speculative.

It is open to debate as to whether DVD could legally rent out its maintenance holdings to the general public. Although I don't recall the POS explicitly stating whether or not DVD engages in the renting of unused maintenance holdings, one could argue that a failure to use at least 2% of its ownership explicitly for that purpose is a violation of the terms of the POS. Unless DVD demonstrates a pattern of using at least 2% of the points to maintain each unit, then they are not truly holding "no less than 2 percent" of the unit's points for that purpose.