Why does dues go up every year?

[spruce]

We've owned since 1998. Dues was reduced once or twice at OKW due to I believe a change in real estate taxes. It went up every other time. BCV and BWV which we own at as well have also increased each year.
Weve owned a timeshare in Satelite beach for 5 years. It was damaged in the 04 hurricanes. Our dues went up one time in those 5 years and it was before the hurricane. No special assesment was charged for repair either.

Is DVC really trying to keep costs down?

 

[RobDoc]

Our dues are supposed to reflect the actual costs of running the resorts. If insurance rates increase - that cost is passed along to the owners. If employee expenses increase, we pay for that too. Since transportation is a component of our dues (unlike most timeshares), we have to pay for the increases in fuel costs.

We own four other timeshares and all have had annual increases (except for a couple of years with no change). It sounds like you've enjoyed very unusual fee changes at your other timeshare.

 

[sigillaria]

Fees go up at Disney timeshares because they keep everything in great condition--salaries go up--expenses go up--and so on.

Last April I went to Williamsburg, VA to a RCI Gold Crown resort--it was falling apart! If I had not read about it's condition on the internet I would have been shocked when I arrived.
I called the resort and insisted that I wanted a "refurbished" unit (they had just started refurbishing)--as it was, it took some real effort on my part to get one. The kitchen and baths were terrible--refurbishing meant new carpet & furniture.

You will not face this kind of neglect at Disney--but it will cost you fee raises.

 

[spruce]

Doc, I had a timeshare in VA for 3 years and never saw an increase. I also have a TS in PA that has not increased in the 6 years I have owned it. There was a special assesment once however.
I understand insurance, transportation, salarys go up but they go up at other places too. Disney is my only timeshare where the dues consistantly go up year after year.
As for upkeep, it's good but I'm in construction and see things many overlook. The upkeep could be better.
Don't get me wrong,Disney is the best I own and ranked with the best of the best.
I just question why it goes up virtually every year when others do not.

 

[RobDoc]

Perhaps I've just chosen the wrong timeshares, as all of mine have increased. Sounds like you've found some exceptional places.

I'm not clear what construction has to do with maintenance, but a hefty component of DVC fees go into the capital reserve fund which helps with refurbishment and major replacements. I know that DVC does a much better job at those things than many timeshares, but I'm sure there are some who do a better job than any of mine - including DVC.

 

[tjkraz]

In addition to the operating costs, one component of our dues is property taxes, over which DVC has no control.

I'm not trying to twist this around and put you on the defensive, but I have to wonder why your dues aren't increasing in other TS' over 6 years' time. Salaries go up. Utilities go up. Taxes go up.

Are you earning the same wages you were 6 years ago? Are your home utility bills the same they were 6 years ago? Are your property taxes the same as they were 6 years ago?

If you're lucky enough to have not seen increases in your timeshare in these areas, good for you. But I don't think there's anything abnormal about operating cost increases over time.

 

[Johnnie Fedora]

Disney is so big, I bet there is waste all over the place. There is not a lot of incentive to hold dues down especially at sold out resorts. SSR is the cheapest probably due to some developer money that subsidizes the resort...for now. Over the past several years, it appears that the onsite resort dues are being evened out. That should help sales at SSR as is can now be be sold as "having the lowest dues".

I'm dissappointed with the rate of increase since I've owned. 3-4% seems to be a more reasonable amount to me.

 

[tjkraz]

SSR is the cheapest probably due to some developer money that subsidizes the resort...for now. Over the past several years, it appears that the onsite resort dues are being evened out. That should help sales at SSR as is can now be be sold as "having the lowest dues".

FYI, there is a developer subsidy for 2006 at SSR. It's listed right in the budget and valued at $.0768 per point. Even without any subsidy, the dues at SSR would still be nearly $.20 less than OKW.

Given that SSR is still far from sold-out, there is every reason to expect the subsidy will be absorbed by future members with no unforseen burden imposed upon owners.

 

[PBader]

We purchased OKW in May 1995. Our dues have gone up a little over a $1 in 11 years. I do not think that is out of line. I agree--everything costs more and I think that DVC does a great job in managing costs. That is the main reason that we bought from Disney knowing that we could always feel good when we saw the "Welcome Home" signs and knowing our resort would always be well taken care of.

 

[JudyS]

Doc, I had a timeshare in VA for 3 years and never saw an increase. I also have a TS in PA that has not increased in the 6 years I have owned it. There was a special assesment once however.
I understand insurance, transportation, salarys go up but they go up at other places too. Disney is my only timeshare where the dues consistantly go up year after year.....

I own at three other resorts, and they all have gone up in the past few years. If you ask on the Timeshare Users Group, www.tug2.net , you will find that most annual fees go up each year, often by far more than DVC's fees have gone up. Annual fees have to cover salaries, energy bills and all sorts of other things that are subject to inflation.

PS -- I am very interested to know the names of your other resorts! Holding fees constant like that is rare!

 

[Pluto 2]

everything goes up in time its call inflation.you get a wage increase at work disney cast members gets raises. your insurance goes up on your house, disney insurance goes up. and so on and so on

 

[crisi]

Dues at Disney also cover things other timeshares don't provide - a big one being transportation to the parks. As a big company, it wouldn't surprise me if they spent a lot more on security than the average timeshare, too.

 

[Disney1fan2002]

At least Disney does not hide the fact that we may experience our dues increasing.

The timeshare we bought in 97, we were told among other things, how there maintenance fees had not gone up in x amount of years. Well, lo and behold, our 1st year maintenance bill, the fee went up. and it has gone up EVERY YEAR SINCE.

The best one was the $500 surcharge we all have to pay. We could pay for it in one lump sum, or pay $100 a year for 5 years. Ths was voted on, to make up the diffrence in what the refurbishment cost. Still paying on that. This year, we got a notice saying they were going to increase our maintenance fee to cover the "projected" rise in energy costs. Yay!

 

[spruce]

Well, to clarify Doc, new construction like facility maintenance repairs and replacements is construction, generally performed by a craftsman. As a craftsman, I see things that many would overlook or simply not notice. As I am sure anyones profession would allow them to spot things as an expert that a layman would miss.

I am not on the defensive, I am asking why Disney raises dues every year when historically my other timeshares have not seen yearly increases. Yearly increases in dues by Disney seem to be the rule not the exception.
Perhaps, as I have flipped timeshares, I have missed dues increases.

Thank you for recommending TUG, I have been a member there since 1998.

My point is, does Disney do all it can to keep our dues low? I don't know. Is it is unfair to question expected annual dues increases? In a demacracy, I don't think so.

My rose colored glasses are off, I love the Magic found at Disney but they are a large corporation responsible to stock holders. Perhaps that is why daily newspapers, colored bath towels and little knick knacks have gone the way of our beloved third mountain. Which of course could be argued that these measures were taken to keep our dues low. I look at it differently, as in paying more and getting less.

Finally,
My ownership in DVC is not for sale. This is a discussion board, and we are having a discussion......Tom

PS transportation is a given, we are all paying more for that everywhere.

 

[crisi]

I think its reasonable to expect dues to go up every year. Inflation makes the things Disney provides cost more. And since much of what Disney provides is services, they fall into the "cost disease of the service sector" problem, where there costs tend to outpace inflation.

I'd be more concerned if our dues didn't go up every year (without a good reason - like the years they didn't go up because DVD had good investment income) - because that would mean they were cutting expenses somewhere in order to keep dues low. That means I wouldn't get the same quality from year to year.

 

[Johnnie Fedora]

While I'm not sure what the exact inflation rate has been since 2001, I would guess our dues have increased at least double the inflation rate for all the years in between 01 and 05. Any economists out there?

 

[bicker]

In 9 years, BWV has gone up 2.0%/year. That's a good deal LESS than the rate of increase of our condominum fees (where we life). Furthermore, our condominium has reduced services while, of course, DVC has not.

 

[crisi]

While I'm not sure what the exact inflation rate has been since 2001, I would guess our dues have increased at least double the inflation rate for all the years in between 01 and 05. Any economists out there?

As bicker points out, they haven't (not at BWVs at least) - in part because for a few years we were gifted with incredible returns on invested money, but if they did it would be expected. Services have a higher rate of inflation than things on which you can get productivity gains. That's the "cost disease."

i.e. each year technology improves and you can make a DVD player fewer labor hours. But you can't get productivity gains from doctors - they see patients at the same rate.

http://inflationdata.com/inflation/Inflation_Rate/HistoricalInflation.aspx

2004 2.68
2003 2.27
2002 1.59
2001 2.83
2000 3.38
1999 2.19