Villas cheaper than normal rooms?

[neoscarecrue]

Why do most Disney resorts offer villas at a lower rate than normal rooms? This seems counter intuitive to me.

 

[_auroraborealis_]

I wouldn't say "most." In the case of studios, this can be true sometimes. But Disney only own 2-3% of most DVC resorts, so they are very limited. Studio villas are also not necessarily nicer than a Standard room. Sure, you get a toaster and a microwave, but the only studio with 2 real beds is at OKW. Most studios have a sofa bed of varying comfort level.

At a new resort, like CCV, they offer discounts to get people in, offset construction cost, and try to sell DVC. Only 20% or so of CCV can be booked with DVC points right now.

 

[OKW Lover]

Disney only own 2-3% of most DVC resorts, so they are very limited.

In addition to that percentage, Disney also has access to the "breakage" units. That occurs when a member trades out (uses their points) for other experiences like the concierge collection, DCL, and ABD. Additionally, if units aren't fully booked by members they are also made available for normal guest stays.

 

[_auroraborealis_]

In addition to that percentage, Disney also has access to the "breakage" units. That occurs when a member trades out (uses their points) for other experiences like the concierge collection, DCL, and ABD. Additionally, if units aren't fully booked by members they are also made available for normal guest stays.

Yeah. It's still not huge inventory at the most desirable of the DVC resorts. You'll see greatest availability at the Usual Suspects -- OKW, SSR, AKV, even Poly -- just because 2% of points at each is quite a bit (bungalows at Poly drives up the number), and the pool trades can only scoop up so much inventory elsewhere.

 

[Wood Nymph]

Why do most Disney resorts offer villas at a lower rate than normal rooms? This seems counter intuitive to me.

Disney will offer studios at lower rates than for regular resort rooms, but villas are usually more expensive than regular rooms.

 

[raddisneyfan]

Disney will offer studios at lower rates than for regular resort rooms, but villas are usually more expensive than regular rooms.

This sounds right to me. I've gotten studio villas cheaper than regular rooms, but I think moving to a 1 bedroom is way more than the regular hotel rooms.

 

[ColoradoMom12]

I recently booked a studio at Polynesian for cheaper than a standard room. I was surprised when I discovered this. The part I can't figure out is why there is nothing available, for instance at AKV next summer (11 months out) but when I picked a random date in February, there was availability in every category. Why? They could not possibly all be booked at 11 months out. Does it have to do with DVC inventory? I don't get it. In any case, I am happy we get to stay at Poly at less than we would have to pay for a standard room.

 

[_auroraborealis_]

I recently booked a studio at Polynesian for cheaper than a standard room. I was surprised when I discovered this. The part I can't figure out is why there is nothing available, for instance at AKV next summer (11 months out) but when I picked a random date in February, there was availability in every category. Why? They could not possibly all be booked at 11 months out. Does it have to do with DVC inventory? I don't get it. In any case, I am happy we get to stay at Poly at less than we would have to pay for a standard room.

Cash inventory is completely separate from points inventory.

 

[Fangorn]

I recently booked a studio at Polynesian for cheaper than a standard room. I was surprised when I discovered this. The part I can't figure out is why there is nothing available, for instance at AKV next summer (11 months out) but when I picked a random date in February, there was availability in every category. Why? They could not possibly all be booked at 11 months out. Does it have to do with DVC inventory? I don't get it. In any case, I am happy we get to stay at Poly at less than we would have to pay for a standard room.

Great question!

As mentioned, DVC inventory and Disney Resorts reservations (CRO) inventory are totally separate. There are some technicalities and legalities involved here, but basically, DVD (the operating company for each DVC property) has virtually nothing they're allowed to turn over to CRO to sell for cash until much, much closer in than 11 months. Further out than 60 days, the only cash inventory there should be is "breakage" - which are points that a member has traded for a cruise or a stay at some non DVC property. Breakage can be turned over to CRO when it happens. So not seeing cash villa availability for next summer, but some in February, is perfectly normal and the way its supposed to work.

This issue is a two-way street also. DVC members often complain that they can't get a room on points, yet see cash availability for villas.

The problem is that we all tend to think of Disney as one big entity whereas it's actually a collection of separate operating companies. In this case, legally separate businesses with different governing laws, rules and contracts in play.

Steve

 

[ColoradoMom12]

Great question!

As mentioned, DVC inventory and Disney Resorts reservations (CRO) inventory are totally separate. There are some technicalities and legalities involved here, but basically, DVD (the operating company for each DVC property) has virtually nothing they're allowed to turn over to CRO to sell for cash until much, much closer in than 11 months. Further out than 60 days, the only cash inventory there should be is "breakage" - which are points that a member has traded for a cruise or a stay at some non DVC property. Breakage can be turned over to CRO when it happens. So not seeing cash villa availability for next summer, but some in February, is perfectly normal and the way its supposed to work.

This issue is a two-way street also. DVC members often complain that they can't get a room on points, yet see cash availability for villas.

The problem is that we all tend to think of Disney as one big entity whereas it's actually a collection of separate operating companies. In this case, legally separate businesses with different governing laws, rules and contracts in play.

Steve

Thanks for the explanation! I have been wondering about this. It all makes sense now. You're right, I am one of those people who thinks of Disney as one big entity! I didn't realize DVC was so distinct from the resort reservations.

 

[_auroraborealis_]

Thanks for the explanation! I have been wondering about this. It all makes sense now. You're right, I am one of those people who thinks of Disney as one big entity! I didn't realize DVC was so distinct from the resort reservations.

DVC is a timeshare. So 98% or so of each of those resorts (points) are owned by members. Those units are bookable on points.

2-4% of each resort's points are held by Disney. Those units can be used for maintenance issue resolution, but also as cash reservations.

An unknown number of operating points are also "reclaimed" by DVC based on member use of points for non-DVC purposes (cruises, RCI trade, etc.), as well as based on projection of members just letting points expire, based on an actuarial model. Those points are, essentially, traded for specific room inventory in certain time periods, that are then put into the cash inventory. Disney book those on cash and use them against maintenance costs on DVC resorts (and property taxes, and profit).

This is how inventory for DVC units is available nearly a year out on cash. But it's still a fraction of any given DVC resort.