Will Disney Rethink the Fixed Week Option?

[rlovew]

I suppose it depends on how they account for the extra points used for that week. If they take them out of GFV the same way they should if a member traded out for a cruise. Taking a villa worth those points and giving it to Disney to sell then it should reduce GFV dues. If they wait until the time for breakage rather than pulling them as soon as they are confirmed as being used for a fixed week it could cbe somewhere else.

 

[Dean]

When the "extra" points aren't used by the fixed week owners (because they keep their weeks), wouldn't the "extra" rooms they represent eventually end up somewhere as breakage income? The points belong to the members, not DVD.

Maybe the breakage doesn't end up at VGF (because non-owners book up everything there at 7 months, but it would seem the "extra" would show up as breakage somewhere in the system and thus go towards reducing member dues.

So, maybe the fixed week option actually helps keep dues lower for the members who own somewhere besides VGF - probably mostly SSR, since I assume it has more breakage than the other DVC resorts.

What am I missing?

Assuming all weeks that could be sold as fixed weeks were, that would leave approximately 6.7% of villas that were unreserved by the VGF owners for the year. Those would be declared inventory so open for owners there then all owners at 7 months out. Obviously the numbers won't be that high as not all weeks will sell out fixed weeks. I doubt there will be much breakage inventory other than late cancelations and likely not even then with wait lists.

 

[wdrl]

Assuming all weeks that could be sold as fixed weeks were, that would leave approximately 6.7% of villas that were unreserved by the VGF owners for the year. Those would be declared inventory so open for owners there then all owners at 7 months out. Obviously the numbers won't be that high as not all weeks will sell out fixed weeks. I doubt there will be much breakage inventory other than late cancelations and likely not even then with wait lists.

I agree with Dean, except I think the maximum percentage could only be 3.5%. The breakage rules only apply if villas are left unbooked by DVC members 60 days before check-in. As Dean points out, there will be many factors within the DVC system that will soak up any excess availability well before the breakage rules have a chance to kick in.

 

[Dean]

I agree with Dean, except I think the maximum percentage could only be 3.5%. The breakage rules only apply if villas are left unbooked by DVC members 60 days before check-in. As Dean points out, there will be many factors within the DVC system that will soak up any excess availability well before the breakage rules have a chance to kick in.

I should have rounded better. I was adding the 3.5% or so (35%) to the unsold inventory and combining those 2 numbers then wrote 6.7 instead of 6.5 (3% unsold average between 2 & 4%), sorry I wasn't more clear.