SSR vs OKW budget

[Plutofan]

It was interesting to compare the SSR budget to OKW

............................................SSR.......................OKW
# of Homes..............................620........................531
Admin and front desk..........$3,146,940...............$3,479,719
DVC reservation component.......30,064.....................42,049
Housekeeping......................5,859,105.................5,955,716
Insurance...........................1,001,647.................1,198,849

 

[dianeschlicht]

Maybe that explains why the front desk and the personell at OKW seem to be very proficient and friendly.

 

[salmoneous]

DVC reservation component.......30,064.....................42,049

Does this include all calls to MS? If so, it kinda puts in perspecive all the complaints about thr costs that were being run up back when renters could call.

 

[tjkraz]

The DVC Reservation Component is defined as "Fee paid to Buena Vista Trading Company for providing the exchange component of the Club central reservation system."

I think it's nearly impossible to draw any conclusions in direct resort-to-resort comparisons. The "Administration and Front Desk" category includes things like equipment (computers, phones, room key printers) amortization, reservation software fees, and salaries of resort management staff. It's not just the salaries of the handful of people that handle guest check-ins.

 

[spiceycat]

since SSR is still under construction - I think DVD is still paying part of the maintence fees as well.

it looks like Okw will go down - to $3.62 maybe?

 

[spiceycat]

it will be higher - forgot sometimes the reserve can be higher.

 

[TheRustyScupper]

Maybe that explains why the front desk and the personell at OKW seem to be very proficient and friendly.

1) Good theory.
2) But, incorrect.
3) The Front Desk, Concierge and Back Room folks at OKW and SSR are the same folks.
4) A percentage rotate on a weekly basis.
5) So, you see most of the same people at both resorts.

 

[tjkraz]

since SSR is still under construction - I think DVD is still paying part of the maintence fees as well.

True, but the subsidy comes off AFTER the detailed budget figures are presented. The numbers posted are the bottom-line budgeted operating dollars for '07. The developer subsidy of about $.07 per point is deducted in the final dues calculation.

 

[kdzgon]

True, but the subsidy comes off AFTER the detailed budget figures are presented. The numbers posted are the bottom-line budgeted operating dollars for '07. The developer subsidy of about $.07 per point is deducted in the final dues calculation.

Yes, but some of the buildings will be coming on line during the year. As such, the related expenses will not be for a full twelve months. This would be reflected in the budget proper, not deducted as a subsidy. Also, the subsidy is there for OKW as well, so I suspect it is not due to uncompleted buildings.

 

[Plutofan]

True, but the subsidy comes off AFTER the detailed budget figures are presented. The numbers posted are the bottom-line budgeted operating dollars for '07. The developer subsidy of about $.07 per point is deducted in the final dues calculation.

OKW has a .1073 Developer subsidy factored into the 2007 budget.

 

[Plutofan]

It was interesting to compare the SSR budget to OKW

............................................SSR.......................OKW
# of Homes..............................620........................531
Admin and front desk..........$3,146,940...............$3,479,719
DVC reservation component.......30,064.....................42,049
Housekeeping......................5,859,105.................5,955,716
Insurance...........................1,001,647.................1,198,849

Actually some of those numbers are probably based upon the number of members. Based upon some prior information it would appear that OKW has more members than SSR even though SSR has more points outstanding.

 

[tjkraz]

Yes, but some of the buildings will be coming on line during the year. As such, the related expenses will not be for a full twelve months. This would be reflected in the budget proper, not deducted as a subsidy.

Not sure I see your point???

The number of units (620) listed in the budget figures cited is clearly an average. At the start of the year there will be less than 620 open and toward the end there will be more than 620. But the costs are still for the entire calendar year.

I don't think anyone ever implied that the expenses listed would be spent in 12 equal installments over the course of the year. Obviously it will cost more to run the resort in December '07 than it will in January. But there will also be more owners contributing dues in December than January.

Also, the subsidy is there for OKW as well, so I suspect it is not due to uncompleted buildings.

Yes, it is. The subsity has been in place since SSR opened. In 2005 it was $.45 per point and it has been declining ever since. The subsidy is intended to cover part of the expenses of resort features designed to service more rooms than are currently on-line. For instance, DVC cannot ask the owners of 620 units to cover all "Administration and Front Desk" expenses associated with a resort designed (and marketed) to support 800+ units.

I have no idea why DVC would be subsidizing dues at OKW. Perhaps they have decided to cover the cost of resort-wide project scheduled for '07, and the costs of that work are included in the detail budget.

Regardless, the only point I was trying to make was that the numbers Plutofan posted were prior to any subsidy reduction.

 

[dianeschlicht]

1) Good theory.
2) But, incorrect.
3) The Front Desk, Concierge and Back Room folks at OKW and SSR are the same folks.
4) A percentage rotate on a weekly basis.
5) So, you see most of the same people at both resorts.

Ahem.....I was making a joke....

 

[spiceycat]

I have no idea why DVC would be subsidizing dues at OKW. Perhaps they have decided to cover the cost of resort-wide project scheduled for '07, and the costs of that work are included in the detail budget.

I though those were the units that DVD kept. but you are probably right. I think someone say they worked on the GV this year.

 

[kdzgon]

Not sure I see your point???

...

I guess I read this thread as a comment on higher expenses (at OKW) for less rooms (at SSR). I thought the number of units were forecasted, not averaged, hence my belief that expenses would not be equal for the 12 months, but rather less (than OKW) during the earlier months. I was thinking that if the buildings are not yet open (or not fully sold, meaning less demand and/or occupancy), the other variable expenses would be less as well.

More owners contributing dues in Dec over Jan would not change the budgeted expenses line.

In any event, I am clearly a newbie, so I will certainly defer to the veterans. Sorry if I misunderstood your post.