Will we ever see maintenance fees go down again?

[Granny]

As I looked at the great thread disneyberry put together with the dues history, I remember that there were years when DVC resort annual maintenance fees actually went down from one year to the next.

Does anyone think we will ever see that again? Unfortunately for us, we purchased after those occurences so we've only seen increases since we joined in 2001.


Just curious if anyone knows what drove the costs down in those years? I know that things like salaries, transportation costs, and insurance have only gone up through the years.

It just got me to wondering and I know this is a great place to express questions of the mind "out loud" and get some wonderful feedback.

 

[Dean]

I wouldn't be surprised to see a minor decrease some years but I think we can assume a 3-4% increase overall year to year.

 

[ClarabelleCow]

I sure hope so!!! Currently I am paying $1,100.00 a year for VWL, and $998x2 a year for my 2 weeks of timeshare in St. Maarten, all of a sudden I am feeling like I have maintenance overload!!!! $3,100.00 just for the luxury of going away, then add airfare and expenses, etc., I'm going to need a second job to afford the vacations I have already paid for!!!! At least DVC softens it by billing you monthly, unlike my other timeshare, like clock work, first week of November we get the bills! Right in time for the holidays!

 

[PamOKW]

If DVC can get a better return on the invested money, then I think we might see more stabilization. As much as I hate paying increases, I would hate having cuts in service/upkeep even more.

 

[ppiew]

I hate seeing increases too, but, on a more positive note, at least DVC maintains/upgrades its facilities far better than many other timeshares. So many look great at inception - and 8 yrs. later are extremely run down! Also, keep in mind the rental cost of hotel rooms with the locations DVC has. Many rates for very nice (comparable) properties are above the $200/night figure.
OK, so I am convincing myself to be ready to pony up the extra bucks!! Bet this forces down resale prices though. I am so glad to hear that they have put forth such an effort to rehab VB so quickly and in an expected quality manner - even the beach!!!
We pay for this attention to detail and it is reflected in the constant increase in value for the points we paid for.

 

[Happy Birthday Cat]

I'm planning on my next decrease in the year 2042. But I suppose we can always hope. Kinda like hoping the <S>Red Sox</S> Cubs win the World Series! What? It could happen after all now that I think about it.

HBC

 

[Johnnie Fedora]

I think we too often assume that there will be some catastophic decrease in quality if there were no dues increase. As with any big cooperation, I'm sure there's lots of waste. Holding the line on dues increases doesn't mean DVC will transform into a "192" property. I hope the rate of increase drops to the 2-3% range.

 

[Uncleromulus]

We'll see a dues decrease probably about the same time as when PennDot does a good job with snow removal from roads in S. Central Pa.

Which is like saying "never"

 

[Granny]

Originally posted by Johnnie Fedora
I think we too often assume that there will be some catastophic decrease in quality if there were no dues increase. As with any big cooperation, I'm sure there's lots of waste. Holding the line on dues increases doesn't mean DVC will transform into a "192" property. I hope the rate of increase drops to the 2-3% range.

Johnnie...I agree that they could probably do some cost cutting without cutting services. But then I ask myself, what is their motivation to do so? Any cost they incur is just passed along to the members. So where's the incentive to reduce costs?

By the way, I'm not complaining about the level of service fees, or the rates of increase. I'm more wondering about what caused decreases in the early years and if those forces might ever show up again.

Thanks to all for the thoughtful responses so far.

 

[CarolMN]

I agree with PamOKW - the decreases were due to the earnings on the reserves. The 90's were kind to those who had $$ to invest. Investment earnings covered the costs and then some in those years.

Best wishes -

 

[Pa@okw95]

I think I remember OKW then the Vacation Club putting some money into the dues pot from another source to keep the dues from rising. I can't remember whether they actually went down however. I never paid that close attention to it. Given the wear and tear on the DVC clubs now I doubt that will ever happen again.

 

[Johnnie Fedora]

Originally posted by Granny
Johnnie...I agree that they could probably do some cost cutting without cutting services. But then I ask myself, what is their motivation to do so? Any cost they incur is just passed along to the members. So where's the incentive to reduce costs?

The biggest motivation that keeps the dues in check is the fact that DVD is selling new property. High maintenance fee increases will scare many away from a timeshare. I wonder what will happen if DVC ever stops selling new property?? Hope it doesn't happen for a long, long time.

I do agree that there is a lot of wear and tear, but it is not just "hard use". It is also tied together with poor design/cheap materials/workmanship. IMO, this is excessive wear is most evident at BCV.

 

[walter]

Let's face it, with increasing energy, labor, insurance (property & health), etc. costs, yearly fees need to be increased. Also as these resorts get older (since they are heavily used), repairs or basic remodeling is required to maintain these resorts in the condition that we as members expect. Then when you throw in new amenities such as the slide at OKW, DVC itself is not going to incur these additional costs. Hopefully we see modest increases & not the type like some local & state governmennts do where they hold the line for a couple of years & then have to raise them substantially or depleting reserves for not maintaining a realistic budget.

 

[rocketriter]

Dues will only go down if our nation experiences significant deflation--which is even more destructive than inflation and not something to hope for!

 

[Granny]

Originally posted by rocketriter
Dues will only go down if our nation experiences significant deflation--which is even more destructive than inflation and not something to hope for!

RR...I'm not sure the nation was experiencing deflation during the years when OKW and BWV dues went down.

As for the investment of the reserve going up when returns go up, that probably assumes a higher interest rate. Which is an inflationary factor that would probably drive up other costs as well.

I guess I'm resigned to the annual increases, and totally agree that I'd rather have the budget set at whatever level is required to keep these resorts in first class condition and service for the next several decades.

 

[dis-happy]

In addition to additional maintenance costs as time goes by, the other big cost is human labor. The only thing I can see being reduced in that area is MS----if they move to a more computer friendly format which most people will use to make reservations. In that case, they could have fewer people answering the phones for us. Since someone earlier has posted that computer reservations was the gist of a member survey, I assume they are thinking about it.....

 

[DaveH]

I don't think we will see any decrease in dues. I am surprised there ever was. My assumption when I bought dues will go up every year. My hope is not too high every year. I would hope the issue of waste will not ever have to be addressed. I think a big ground swell from members if too steap of an increase ever happens should help keep the dues increases to a reasonable level.