Why does DVC only allow you to transfer points once a year?

[disneynutz]

In my experience, money is the reason for everything that Disney and the DVC does. Sure we get a wonderful vacation at a wonderful place, but we would be foolish to think that the reason DVD changes policies is to make things better for us. They make a lot of money from managing the DVC and if they didn't, they would make us find our own management company.

 

[bookwormde]

Yes DVC must “hold” (own) a minimum of 2% for maintenance but I do not believe the POS wording in any way restricts them from renting these if they are not needed for maintenance.

No it is not a “major” cash cow, just an incremental way to add to non member net revenues.

“we would be foolish to think that the reason DVD changes policies is to make things better for us”. This may be true but this is exactly what the state regulations require.

bookwormde

 

[Dean]

I would also like some clarification on this point and another:

1. Are multiple transfers in one UY between master contracts allowed?

2. Do tranferred points assume the home resort of the contract they are transferred to?

For special situations such as multiple master contracts of a single owner, it's handled on a case by case basis. Often you can have multiple transfers in this situation. For example, say you have 3 contracts and need to book a cruise where all points must be in one contract. They will generally allow you to transfer the points in from multiple contracts and in some cases, banked and borrowed points as well.

To do so would be a violation of the POS.

DVD has committed to retaining at least 2% ownership for maintenance purposes. If some or all of those points are used to rent out rooms, by definition it is no longer holding 2% for maintenance.

DVC can only profit from rooms via unsold points, ROFRed points, points from trades out of DVC and the like.

If rooms are unbooked, not flagged for maintenance and not drawn from DVD's pool of points, revenues would be consider "breakage" and credited to annual dues. drusba is correct in that there is a cap on annual breakage revenues, but I'm not sure I would label that a cash cow DVC is looking to exploit. In fact the 2010 reallocation is pretty likely to reduce the breakage bookings due to the decline in weekend point costs.

Not so Tim. While the unsold points are generally used for Maint, there is no commitment or requirement for DVC to do so. They can, and have, used those points to secure rooms for rental.

Pardon me please for being slow, but I'm trying to figure out why someone would transfer points between their own contracts if they retain their original home resort status?

Some of the exchange options require all points be in one contract. Also to get points together for that last single night's reservation.

 

[Modeltrf]

I am getting so much good info!

 

[DisneyWalker44]

I do think the hassle is at least part of the reason. DVC's computer system does deal with transferred points well.

I assume there is a NOT missing in your post. But I totally agree, if not more so.

There's some quote about not assuming nefarious motives when it's probably just incompetence. Disney's systems don't handle points transfers well. Back when they did allow multiple transfers, the transfer system was completely broken. It's better now - I'm sure the limitation is part of that.