Why DVC pays rack rate ??

[Johnnie Fedora]

Some of you may have already seen my comments below. I posted them in the long long thread concerning the DC collection point increases. I wanted to post my commments as a new thread to envoke more responses to my question. Sorry for the redundency for those who have seen this before..............

I still have a hard time understanding why DVC pays rack rate for the rooms of the DC collection. Really, does it cost Disney $350.00/night for staffing and all the ammenities to house a family for 20hours at a deluxe resort?? I would venture a guess that Disney makes a tidy $$$$ sum on their hotels, even with this years discounts.

I certainly don't understand the ins and outs of these corporate affiliations etc. But, if DVC is truly its own entity, then shouldn't it be able to negotiate better than rack rate for it's members???

I do agree with the majority who feel that variety was/and is a major selling feature of DVC. It is heavily promoted on the video and in the book. I don't think I would be using DC much, maybe a night or two. Having it as a "reasonable exchange" was an attraction, and part of the reason we planned on buying extra points. Currently, we're sitting on a 50 pt add-on, and eagerly awaiting BCV......Gonna have to think this through a little more!?!?!? I was originally against buying DVC several years ago, but rethought it, and purchased this year based on the many options available in the DVC program. I don't regret it, as I love the VWL, but large increases in point costs will definetly alter the total number of DVC points we will be adding on.

Maybe this is just the bad news first and DVC will have some good news too (Sorry, just being a little shall we say....Polyanna). Personally, this DC point thing would be OK with me if members were offered a "peace offering perk" (are you out there Mickey????). Might I suggest 35-40% off annual park passes!!!

 

[sgtdisney]

Disney will charge what they can get for the room. If they can sell out 100% every night at 350.00 per night, then they will expect DVC members using points to pay as much. There isn't a lot of incentive to sell out rooms to DVC members at a reduced rate when they don't really have to. I agree, as a good will gesture they could, but they don't even offer DVC member's the Florida resident discount on admission media. Historically Disney never did much discounting on their rooms as they didn't need to. They were always at close to 100% capacity. They didn't even pay Travel Agent commisions for years because there rooms sold themselves. This has all changed in recent years as disney has been starting to discount rooms at certain times during the year. Very recently Disney has been deeply discounting rooms due to low attendance. I would really like to know if Disney has been seeing a higher than average usage of the Disney Collection from DVC members. Maybe this is why they are adjusting the points. It is hard to say. They must have some reason for adjusting the points during the time periods we have heard of. It will be interesting to see the chart when it becomes available.

 

[PamOKW]

as a good will gesture

Overall, I continue to be extremely satisfied with DVC. It is the "goodwill" gestures that seem to be lacking. They aren't deal breakers but they lead to some disappointment.

 

[sgtdisney]

Originally posted by PamOKW


Overall, I continue to be extremely satisfied with DVC. It is the "goodwill" gestures that seem to be lacking. They aren't deal breakers but they lead to some disappointment.

I do agree with you there. I too am very pleased with my investment. I do wish they would offer the DVC member more benefits, so to speak, since we are typically some of Disney's best customers.

 

[kem330]

Yes Sgt. We are some of Disney's best customers. To make an analogy, you could liken us to frequent airline travellers. To reward loyalty, most airlines offer the perk of mileage awards. Like the Disney and Concierge collection privileges, they can be taken away at any time and changed. However you don't see United or American Airlines change their point requirements for travel without at least a years notice. Granted Disney has a monopoly, where the airlines are in tough competition with each other. But I don't think you'd see them shooting themselves in the foot by raising mileage awards any more than 10% in a given year. Disney appears to take their best customers for granted, only going after the new ones. I am very happy with the savings I get and the quality of the DVC resorts, but it would be nice to be able to trust that fringe benefits not be pulled or radically changed at a moments notice.

 

[sgtdisney]

Kem330, I agree with you completely. But as I have said before I will reserve judgement on what has happened to the Disney Collection until we have seen a complete points chart. As you mentioned in another post the points went up 30% as opposed to the originally thought 200%. For all we know there are other periods of time where the points may have gone down offsetting the difference. I really can't wait to see the new points chart to see exactly what has happened.

However, in the meantime everyone has gotten very upset and vocal about a problem which may or may not be real. My concern is how many potential DVC customers who read this forum may have been turned off on the DVC because because of some possible misinformation. I am afraid that Disney will be perceived as just another scummy timeshare sales outfit which seeks to rip off people with every chance they get. I don't know about others here, but I don't feel that way about the DVC. I for one am very satisfied with the program. Do I wish they would do more? Of course. And I think that they could at very little real cost to them. But I also know what I signed and agreed to when I made my purchase. And while I think that they could do more with passes and other items, they aren't bound to them by law or by contract, and while I wish they would, I do not expect it.

 

[loribell]

I just returned Wednesday from a short trip to show my mother what we were buying in to. I must say my mother is very protective of her money but when she saw what VWL had to offer she was hooked too.

The papers we signed were to primarily stay at DVC resorts with the others being an extra perk. Disney is by no means required to give us anything other then what our contracts state although anything extra would be nice. Everyone needs to remember that they are extra's and be thankful when they get them.

I for one am proud to be a new DVC owner and can't wait for my next trip. I have been very disapointed at all the negativity in here the last few days and believe that it may be driving potential buyers away. I will continue to talk it up to my family and friends and will not have a second thought about recommending it to anyone.

 

[wdwnut]

sure, i'd like to see some more perks for being a dvc member. however, we bought into dvc to primarily stay at those dvc resorts, not the disney collection. we've already stayed there numerous times. if i ever want to stay at one of the deluxes and don't feel it is worth the points, i'll pay cash (hopefully ap rates!). i don't feel there was ever any misrepresentation on disney's part regarding the disney collection or any of the other options. it always seemed to me that the main thrust was the dvc resorts. just my opinion.

 

[msdis]

We bought DVC to basically ONLY ever use DVC resorts. We were staying in WDW 1-2 times a year and felt this would get us better accomodations for the fixed price of dues every year, without playing the AP, DC, or FF discount games anymore. The point charts, being fixed, leveled the playing field, allowing us to determine when, where, and what; thereby "paying" our fair "rate". In considering anything BUT the DVC resorts we would personally have to "justify" the use for anything else other than the DVC resorts because it doesn't make as much sense. We have friends who have an Aruba timeshare and they belong to the trading companies. Every year they trade to the WDW area, but have been told it is almost impossible to trade into the DVC resorts. So, I guess not that many people really do trade out.