What is the percentage "breakage rate"?

[chips]

I have read disney allows cro to rent dvc points with less than 60 days expiration. They call this the breakage rate. I'm curious, how many points go wasted.

 

[RobDoc]

DVC has not released any information about points unused by members.

The "breakage income" is not really related directly to points- it is the income derived from renting villas unreserved using points inside of 60 days.

That income serves to reduce DVC dues but does not include income from reservations made using developer points ( the 2-4% held by DVD at each resort) or from points used by members for any of the non-DVC options.

 

[DebbieB]

Just to give you an idea - the breakage income in the BWV budget for 2004 is $433,237. I'm sure they take out a good part of what the CRO renter pays for expenses (housekeeping, transportation, etc), leaving the remainder for income.

 

[drusba]

Actually the breakage income figure reported is only that portion which goes to the DVC budget to offset dues. That is really only a portion of the total since there is a cap to the amount of breakage income that is used for that purpose -- cannot remember it offhand but believe the maximum that goes to offset dues is up to something like 2.5% of the annual budget total without such income. Breakage income over that cap gets distributed to Disney entities. The actual breakage income for BWV is likely 4X or more the figure given.