When DVC rents out rooms...

[lenshanem]

where does the money go? Is it profit for DVC or does it go into our maintenance?

I'm curious cause I saw a deal for Disney Visa, $99 a night for a 2 bedroom at HH.

 

[MELSMICE]

Good question - I saw the same deal.

 

[DebbieB]

If it came from member inventory, the profit goes back to the members as a credit on the annual dues budget under "breakage income".

 

[lenshanem]

Thanks Debbie. That is nice to know.
Unfortunately, will BCV ever see a credit on their dues?
I'm assuming VB and HH would have this often since they have off season times?

 

[RobDoc]

In many cases, these rooms are available due to members using points for the cruise or Concierge Collection.

In that case, the money collected goes to pay for the option used. Other rooms have come from the points owned by the developer (2-4%).

Only rooms unreserved by members will add $$ to the budget for the resort- reducing maintenance fees. It is may be found in the budget under "Breakage Income". It does not comprise a significant component of any of the DVC resort budgets.

 

[DebbieB]

At BWV for 2004, it was .0886 per point, total $433,237. It would be interesting to see how much they actually "kick back" on the room rentals. I'm sure they deduct for housekeeping, transportation, front desk, etc., so the money that goes to breakage income is only a fraction of the room rate.

 

[tjkraz]

Originally posted by lenshanem
Unfortunately, will BCV ever see a credit on their dues?

Sure--weekend stays.

 

[PamOKW]

The need to "trade out" member points for lower cash amounts also effects why we have to pay more in points for cruises, hotels, etc. DVC has to pay these entities in cash -- the cash they get for the reservation. $99 a night is better than $0 per night but $99 for a Saturday night in September is only slightly more than $1 per point (84 points).