Why the difference in points?

[ErinC]

It is my understanding that the reason that the DVC properties are higher on the weekends was to level the stays out, so that locals wouldn't take all the weekends, and those of us who live farther away wouldn't be able to book a whole week. OKay... so why are the Disney collection hotels more expensive on the weekends versus the weekdays. They cost the same cash price if you rent them from CRO. Is this just DVC taking advantage, or is there something I'm not thinking of?

 

[tjkraz]

OK, first, anyone who wants to jump in and correct any inaccuracies is welcome to do so. I'm about 95% sure this is correct, but may misstate some of the details.

As I understand it, if you want to book a room at the Grand Floridian, the process works something like this:

1. DVC accepts your points to trade into the Disney Collection.

2. DVC makes a cash transfer (on paper) to the Grand Floridian to compensate for the room. The GF has no use for DVC points--they simply want to get paid for the room.

3. DVC can then take your points and use them to rent out a room at your Home resort at the published cash rates. There is some element of risk involved in this process, which is one of the reasons that we don't get very good value for our points in trades. If DVC is unable to use your specific points to sell a room to a cash customer, the room is empty and the points have returned no value.

Remember, DVC sells enough points that each room at each resort could be booked 365 days / year (barring scheduled maintenance.) So, whenever a room sits empty for a night, someone is losing points--either a DVC member who didn't use their points, or DVC who is unable to rent the room for cash using points acquired in trade. Member actions like Banking / Borrowing or Magical Beginnings do dilute the true picture to some degree.

The above would be the reason for the weekday / weekend differential at the Disney Collection. In order for DVC to hold a cash room for a weekend with your points, they are using the same premium number of points.

 

[CarolMN]

I like to think of it more as a "discount" for booking weekday nights.

Non-DVC WDW Resort occupancy is always higher on weekends than weeknights. If you think about it, most people (other than DVC members, LOL) prefer to include weekends in their trips, so the resorts are much more likely to have availability / empty rooms on weekday nights. Generally, the resorts do not have trouble filling friday and Saturday nights. (Many people bookend 5 days of vacation with a weekend on each side).

Stands to reason then that the non-DVC resorts would rather have DVC members book weekday nights (win-win) and thus the "premium" for the weekends.

JMHO. YMMV.

All that said, it is entirely possible that tjkraz's explanation is the correct one, but I don't think DVC necessarily rents out the same days & dates as the person who trades for something in the Disney Collection happens to request.

 

[Dean]

I agree with tjkraz. Assuming DVC rents out a combination of weekdays and weekends and avoids the most heavily demanded times, it will take more points to generate the dollars. Don't forget CRO takes a cut for the transaction.

It has always been my belief that the points differential was to even out usage but I've never heard DVC or DVD official say that.