VWL 2003 Dues up 6.6%

[Granny]

Just got my DVC Management Corporation mailing that indicates next year's dues for VWL are estimated to be $4.0542 per point.

That represents about a 6.6% increase from 2002 dues of $3.80.

I don't know if anyone is compiling these, but I don't remember seeing the VWL 2003 number posted.

That's an 11% increase over the rate from two years ago. Definitely a faster increase rate than the historical DVC dues rate...so I'm a little disappointed.


Guess those quiet pool rehabs are expensive!



More grist for the mill!

 

[msdis]

Thanks for the post Granny. I don't think anyone has posted this yet. We own VWL and BWV, looks like their pretty close now.

 

[Granny]

I didn't see BWV 2003 dues posted....is it the $4.10 that was rumored?

 

[msdis]

I'm assuming that which has been posted is correct, yes the $4.10 figure. Unfortunately I have rec'd nothing by mail yet.

 

[Johnnie Fedora]

Wow.....I'm beginning to think that we just bought DVC at the wrong time. Since we joined, the DC and the DCL have increased astronomically and now dues are skyrocketing. This trend is not good. I hope anyone considering purchasing looks at the recent dues increases very closely.

It looks like the hay day of DVC has past already. You know...those happy days of free passes, reasonable dues increases and and fairer exchanges for the DC and DCL.

Somehow, in the Disney accounting system I think DVCers are made to pay more than their fair share for shared resort facilities.

More nickel and dimeing from the Mouse

 

[Granny]

Johnnie Fedora...I was only expressing a little disappointment. I had no expectation that dues would continue to increase only in the 1-2% range as they seemed to in the early years.

I don't know what's driving the costs. But I do know that timeshares are pretty heavily regulated...especially in Florida. So I doubt Disney would try to get too creative with the DVC books. I tend to trust Disney on this....if I didn't have some trust in them I never would have bought DVC in the first place.

For a 200 point contract, the increase in VWL dues comes to about $50. I don't think that's exorbitant...but it's not chicken feed either.


Again, I'm not really complaining. Just trying to contribute some information to the boards.

 

[vwl_ryan]

Meanwhile, the AP discounted prices keep heading down for normal hotel rooms. I have seen WL rooms at $109 per night with tax. There is no way we are subsidizing that side of the business, right???

 

[Eeyore2U]

I'm sure one the reasons for larger than normal increases has to do with insurance. Insurance rates since 9/11 have skyrocketed between 50 and 100% based on articles that have been read an a friend in the risk management business. The reason for the increases being that large is for insurance companies to replenish their reserves post 9/11.

Just something to think about.

 

[SimbaNoodle]

All I have to do is quit super sizing my value meals each day to recoup the money. Who know's, I might even lose a pound or two.

Because of DVC, I am able to stay in rooms and resorts that I would not have stayed in otherwise. Even though it expires in 2041, I'll be 77 years old and probably not overly concerned.

I love DVC.

 

[Johnnie Fedora]

Larger increases in dues was a great concern when we purchased. We did our homework on the topic and were satisfied that Disney was being reasonable with their increases (historically speaking). Since DVC is owned by Disney corp, I don't tend to view it as a separate entity, especially when it comes to the bottom line. There is a lot of grey areas in shared services between a resort and a DVC. It would be easy to pass along extra charges to DVCers.

For example, since VWL is likely to have a higher occupancy rate than the WL. DVCers may be bearing a larger % of the costs for shared services. It all depends on how Disney crunches the numbers.

All in all, in a time of very low inflation, an increase of almost 12% in two years seems a little excessive and certainly worth questioning. I never expected that dues would stay at the 2% range, but increases that are 2-3x the infalation rate seem high to me especially 2 years in a row.

I know many will respond to this with what they will give up from their vacation budget to make up this increase, but do you really want to keep downscaling your vacation experience each year. It will be interesting to see how the OKW dues increase...let them go up 6%......You'll really see the boards light up.

 

[jcodespoti]

I have no doubt in my mind that insurance has a large influence in the dues going up. The cost of liability insurance for my business has almost doubled. So among other things insurance is a big factor.
I highly doubt that any money goes to subsidize other room discounts, thats illegal. Besides the reason, imho, for these lower rates is that hotel rooms stays are way down.


Joe in CT

 

[CarolMN]

We'll be attending the annual meeting for BWV and if the dues increase isn't addressed, I will ask about it. Insurance rates cannot possibly have risen enough to account for the increase all by itself. The math just doesn't add up for that to be true. I think we need to wait for details and Disney's explanation before we start making assumptions about Disney's integrity.

FWIW, I don't think the % of shared services is based on occupancy levels. It makes more sense for it to be based on relative percentages of the number of units/rooms (perhaps adjusted for the max number each unit holds). JMHO.

 

[DVCDAVE]

DON'T blame it on the insurance !!! Insurance is ONLY $.1442 per point. That represents a mere 3.555% of the entire dues per point. So.....even if the insurance doubled from last year, it could only account for 1.6% of the entire increase.

Just my humble analysis of my VWL statement that I got today.

Shocking !!!, to say the least.

 

[Maistre Gracey]

Originally posted by DVCDAVE
DON'T blame it on the insurance !!! Insurance is ONLY $.1442 per point. That represents a mere 3.555% of the entire dues per point. So.....even if the insurance doubled from last year, it could only account for 1.6% of the entire increase.

Just my humble analysis of my VWL statement that I got today.

Shocking !!!, to say the least.

I think you meant to say 28% of the increase.

If we expected a 3% increase, then we could say the insurance doubling represents 51% of the increase over what we expected.

BTW, does anyone know if VWL is, or ever was subsidized by DVD for mtc fees?

 

[DeeP]

I'm assuming that which has been posted is correct, yes the $4.10 figure. Unfortunately I have rec'd nothing by mail yet.

Where was this posted??

 

[DebbieB]

There were "rumors" from a resale agent about a week ago:

http://www.disboards.com/showthread.php?s=&threadid=287708

http://www.disboards.com/showthread.php?s=&threadid=289033

 

[Janet2k]

I would just like to say "thanks" to everyone for the information/opinions/guesses posted in this thread. Just another reason why I love the Dis so much -- you folks are a wealth of information and always willing to go the extra mile to make things easier on your fellow Dis'ers (and DVC'ers).

 

[dvc_john]

Actually, you can pretty much blame it on insurance.
This year it was .0217/point. Next year it's .1442/point, or and increase of about .12/point - almost half the total increase!
In dollars, it went from $42,589 to $282,821.

 

[Eeyore2U]

If my math is correct the increase is 664%. If that's not the reason for the increase I don't know what would be.

 

[PKS44]

Originally posted by Eeyore2U
If my math is correct the increase is 664%. If that's not the reason for the increase I don't know what would be.

..and if this is not a reason to support tort reform, I don't know what is...please..let's stop "law sui-itis!" That is the reason for these huge jumps in insurance.

Paul