What the Hell is Wrong with DVC?

[StitchesGr8Fan]

The reason DVD hasn’t given an answers is because no one knows how long this will go on. And once it is over they have to get their staff back, and some of them may have died from this virus. Plus they have to get food supplies back. The decisions they make regarding a May 1 opening would be different for a June 1 opening or a July 1 opening, etc. Once there is an end in sight I’m sure we will get answers.

 

[CraigInPA]

To add, the only way that could happen without DVC turning over rooms would be the hotel division agreeing to give the rooms to DVC for free, That can’t happen without them agreeing to do that..which, I don’t think is likely..but certainly not without it being a lengthy negotiation.

I actually could see the hotel side handing over rooms in exchange for paying for the maintenance on them. But, I don't see this happening unless there is a global recession and the hotel side is looking at a huge occupancy problem.

 

[Sandisw]

I actually could see the hotel side handing over rooms in exchange for paying for the maintenance on them. But, I don't see this happening unless there is a global recession and the hotel side is looking at a huge occupancy problem.

That would still include some cost by DVC, but sure, they could try to negotiate a different deal than turning over a DVC room to allow members to book points to book Disney hotels,

 

[dismedvc]

To add, the only way that could happen without DVC turning over rooms would be the hotel division agreeing to give the rooms to DVC for free, That can’t happen without them agreeing to do that..which, I don’t think is likely..but certainly not without it being a lengthy negotiation.

Yes and I would not expect any chance of this until and unless the hotel division knows that they have rooms that will not be reserved to cash.

If the hotel room is empty it is zero revenue for TWDC. If it is given to a DVC member who otherwise would not travel at that time, TWDC would get the revenue for all the non-room expenses the DVC member incurs while on property.

There is a discussion on another thread about TWDC management creating a corporate environment of internal competition rather than synergistic thinking to the detriment of the paying customer. Because of the corporate environment, upper management of TWDC, would need adjust some internal incentives to get the individual divisions to do what is best for the company.

If that can be worked out I think it is likely the hotel division will turn over what would otherwise be vacant hotel room to DVC. Especially if it would be good for the corporate bottom line, in addition to reducing the anger from DVC members.

 

[DougEMG]

I don't think Disney needs to do anything if they don't want to other than to follow the normal rules and then let things fall as they do. One reason they might not want to do this is for all the bad word of mouth they will get and the impact it could have on future sales. So what if they extended the leases for free on all resorts for the length of time that the resorts are closed. They've extended the OKW lease once already so we know it is legally possible. As well, by extending the lease that doesn't cost them much right now other than paying for the paperwork which can be added to the dues.

 

[Sandisw]

If the hotel room is empty it is zero revenue for TWDC. If it is given to a DVC member who otherwise would not travel at that time, TWDC would get the revenue for all the non-room expenses the DVC member incurs while on property.

There is a discussion on anther thread about TWDC management creating a corporate environment of internal competition rather than synergistic thinking to the detriment of the paying customer. Because of the corporate environment, upper management of TWDC, would need adjust some internal incentives to get the individual divisions to do what is best for the company.

If that can be worked out I think it is likely the hotel division will turn over what would otherwise be vacant hotel room to DVC. Especially if it would be good for the corporate bottom line, in addition to reducing the anger from DVC members.

Absolutely, but they can also come up with some pretty good cash promos to fill the rooms, as well,

Someone posted a reminder of the buy 4, get 3 free night promo from years ago, That could fill some rooms,

But, anything that Disney resorts does that benefits DVC owners will only be because it benefits that division. it certainly will be nice if they can figure it out, though. I am just not holding my breath, especially now that they are furloughing a lot of divisions whose businesses have shut down.

 

[MICKIMINI]

If the hotel room is empty it is zero revenue for TWDC. If it is given to a DVC member who otherwise would not travel at that time, TWDC would get the revenue for all the non-room expenses the DVC member incurs while on property.

There is a discussion on anther thread about TWDC management creating a corporate environment of internal competition rather than synergistic thinking to the detriment of the paying customer. Because of the corporate environment, upper management of TWDC, would need adjust some internal incentives to get the individual divisions to do what is best for the company.

If that can be worked out I think it is likely the hotel division will turn over what would otherwise be vacant hotel room to DVC. Especially if it would be good for the corporate bottom line, in addition to reducing the anger from DVC members.

I think that may be a factor - they are having a "food fight" and then retreating to their respective corners to sulk.

I truly expected that Disney had a "war room" and had thought through many possibilities for potential disasters over the decades with multiple options thoroughly detailed and hidden away in a locked room. Apparently that is not the case as their relative silence speaks volumes.

Walt was genius at thinking decades into the future especially choosing Orlando and buying up all the property without anyone knowing about it. He carefully considered every possibility, didn't take "no" for an answer and hired a general to get MK built. He did things that couldn't be done. Disney has to get a positive, "Walt" like reassuring message out there and back it up with a real plan. We're watching...help bring us together. You have the power to do it.

 

[we"reofftoneverland]

I am not sure why this member is angry. If she has until December to use her points, she has plenty of time to use them. I get that it might not end up being her ideal vacation, and that she might have to shuffle her life a bit, but sometimes things you over plan end up being disappointing anyway. There are plenty of people with banked points and June or April use years who would love for dvc to give them until December to use banked points. This member sounds a bit prima donna to me.

 

[TraderSamWDW]

That article was ridiculous.

We need a solution?
Well what is the problem, and how bad is it? WE DO NOT KNOW THE LATTER!!!
Disney might have 4 options they can go to if they reopen June 1. They might have 0 options if its June 1 of 2021.

Secondly, Loan payments deferred? You agreed to loan terms. Just like a mortgage. Disney just issued 6 Billion dollars worth of bonds, on which they will have to pay interest. But they should give you an interest free loan?

Maybe Disney will use hotel rooms to make up the shortage, but they probably want to first know how big the shortage is, and what hotel occupancy will be running at when this is all over. (My guess is they may do this to some extent because hotel occupancy is probably going to be dismal for quite a while - but then again, that's just a guess, and Disney isn't going to decide based on guesses)

Maybe they wont do anything, who knows. If that is what happens and you want to get mad, I get it. Right now its premature.

I'm worried about a depression that makes the 30s look like Shangri-La, once I know we are clear of that then Ill worry about my DVC points,

 

[Simba's Mom]

Banked points that expired or will soon expire already had nearly two years of possible use time. So now the owners wants three? That's not how thus works.

No, but I don't think anyone predicted that this would happen either. How things work can't be changed EVER?
But in DVC's defense, I really don't think they know for sure what the best thing to do right now is. Like someone said, you can't please everyone.

 

[_auroraborealis_]

If it is given to a DVC member who otherwise would not travel at that time, TWDC would get the revenue for all the non-room expenses the DVC member incurs while on property

Still creates expense. If half your units are empty, no housekeeping or turnover costs. Those costs are paid by the resort budgets, not parks or dining.

 

[dismedvc]

Still creates expense. If half your units are empty, no housekeeping or turnover costs. Those costs are paid by the resort budgets, not parks or dining.

You quoted my first paragraph. What you just said was the whole point of my second and third paragraphs. (see below)
Upper management at TWDC needs to get involved to get divisions to do what is best for entire company. Otherwise, you could have a situation where the resorts division will not do something because it costs them $1 even though if the resorts division did that something, another area of the company would make $3

ETA: This is actually a classic internal transfer pricing problem discussed in Managerial Accounting courses. One solution is for upper management to internally pay the selling division at a higher internal price than the buying division is internally charged. The difference is adjusted at the corporate level.

If the hotel room is empty it is zero revenue for TWDC. If it is given to a DVC member who otherwise would not travel at that time, TWDC would get the revenue for all the non-room expenses the DVC member incurs while on property.

There is a discussion on another thread about TWDC management creating a corporate environment of internal competition rather than synergistic thinking to the detriment of the paying customer. Because of the corporate environment, upper management of TWDC, would need adjust some internal incentives to get the individual divisions to do what is best for the company.

If that can be worked out I think it is likely the hotel division will turn over what would otherwise be vacant hotel room to DVC. Especially if it would be good for the corporate bottom line, in addition to reducing the anger from DVC members.

 

[Sandisw]

You quoted my first paragraph. What you just said was the whole point of my second and third paragraphs.
Upper management at TWDC needs to get involved to get divisions to do what is best for entire company. Otherwise, you could have a situation where the resorts division will not do something because it costs them $1 even though if the resorts division did that something, another area of the company would make $3

I think what you may be missing is that DVC was set up specifically to absolve TWDC from having to be responsible, because it’s no longer a company division per se. Its real estate owned by a whole bunch of individuals,

They didn't want to have to be responsible for losses or how the timeshare functions. Its up to us, the owners, to figure it out.

Now, I agree that I’d DVD needs something from another division in order to sell DVC, I bet they figure it out.

 

[dclpluto]

I think the OP needs to rethink their priorities. All of our focus should be on our loved ones and coming together to defeat this Virus. In the grand scheme of things using DVC is not that important. DVC have said once they have a better idea of the final impact of the disease they will review options to support owners. This is likely to be a long time away. I dont think you can ask for anymore. I think their is nothing wrong with DVC and I remain very happy with my ownership.

Maybe you are not going to lose any points. How many points are you going to lose?

 

[tgropp]

What if they extend everyone’s contract end date a year without dues? I would enjoy that.

I posed the same question on the *********** Boards and got laughed at. It would make sense if this lasts six months

 

[McCrae]

Maybe you are not going to lose any points. How many points are you going to lose?

Several hundred. Their are more important things in life to be worried about at this time. The time to raise concerns is not now. We all need to wait until this is over and see how DVC respond.

 

[conandrob240]

you can both simultaneously be concerned about and appreciative of your family while also being pissed off about how DVC is treating owners.

 

[McCrae]

you can both simultaneously be concerned about and appreciative of your family while also being pissed off about how DVC is treating owners.

I agree. DVC though is doing nothing wrong. For points expiring this year they said they will look at the options once the know the full scale of the problem.

 

[Disney mac]

While it is WAY too soon for them to offer anything, just thinking ahead....

Couple of creative ideas that I would imagine would be fair:
1. Extend contracts by one year
2. Anyone who had points expire or could not book/bank, give them a gift card
3. Instead of. Gift card give them a percent off of their next AP (Thus promoting more attendance and safety of the parks eventually)
4. A meal plan or discount on one for next time you use points
5. Future one time use points that do not expire to replace what was lost by people who actually lost points.
Just some creative ideas...

 

[Kim Gillihan]

The problem is that DVC runs at such a high occupancy rate that no matter when these points are used they will overload the system

what about the cash rooms? I don't know how many they have set aside, probably not that many.. but at least its something?