Well, lets not have such a limited viewpoint.
- Hotel gets to book a room it did not have booked and recieves a prenegotiated rate rather than $0 for an unfilled room.
- DVC gets to rent a room for cash and has the potential to double dip. Paying out a reduced room rate to a hotel and charging higher rates for a suite. Thus pulling a profit.
- In the alternative, it has the potential to upgrade a hotel room customer to a suite. This would be a formula based system which screens hotel guests based on post trip spending habits and it would choose those most likely to afford a DVC contract.
Hmm,
I hate to emphatically disagree, but from a technical standpoint, the cost of administering and setting up such a inventory mangement system is chump change. Disney could save millions of dollars in payroll if they had an upgraded inventory management system.
Such a system would be able to easily allocate rooms to different types of groups (both Disney companies and customer groups) based on revenue sharing agreements, open and close at specific timeframes, etc.
The only hurdle is that Disney managers don't want to lose control of their precious departments and budgets. Not to mention being labled the person who helped bring about hundreds of layoffs doesn't seem to be a popular idea.
I suspect we're talking apples and oranges else we'll simply have to disagree on most points. You'd actually have to look at each portion somewhat separately. They do upgrade cash customers at times with such inventory allowing them to rerent the first room much the way that cruises do.
Undeclared inventory IS exactly the same as hotel inventory at mixed use properties. Disney is responsible for the upkeep and use any rentals to offset their costs both upkeep and to recoup some of their initial investment. As such, there would be NO benefit to them to let those rooms go for anything other than cash. The VERY LIMITED benefit they could get by letting those rooms go last minute for points would be either a poor value for DVD or a poor value to DVC as a whole or both, likely both depending on the specifics of the administration. I think you're assuming that an empty room is the worst case scenario and I would disagree. Lets say for example that disney rented out rooms at a drastically reduced rate at 30 days or less, say $59 for a studio, $69 for a 1 BR and $79 for a 2 BR. While there would be some income for rooms that would otherwise go empty, this would also create the expectation that these rooms would be available at times and would cause some to not rent for a higher price at times and that's true even if they rented them to DVC members only. BTW, at least one timeshare company and both exchange companies do this very thing and there are those that specifically hold out for the lower cost rentals. In addition, a certain cushion of unrented rooms can be a godsend when you consider maint issues, last minute problems and housekeeping.
Rooms reserved with exchange points (CC,
DCL, DC, ABD) - exactly the same discussion.
Breakage inventory is actually owned by DVC and it appears that MS has been successful recouping such inventory for points reservations at times. I don't think anyone has confirmed this was the source of those units that were gotten by calling the resorts but it makes sense that it is.
Exchange inventory (RCI & BVTC) does not belong to Disney at all and those companies can do whatever they want with it.
What I think would be an absolute disaster for the system as a whole and to the membership as a whole would be to have DVC take inventory off their hands at last minute that was being offered for cash and give Disney/DVD/CRO full use points or nearly so. Think of it like buying meat or produce that's about to spoil, it's not worth the same as fresh items even though there might be a market for it at the right price.
Do I think there are possibilities, sure, do I think it's feasible or cost effective for Disney to do so, absolutely not, esp given their IT track record. Remember you've got to task IT with creating the system to do this, have them maintain it and then put various people in charge of having it work over time. You're likely looking at 2-3 FTE's min just to administer it and likely double or triple that to get it up and running.