DVC Dues increses for 2013

I am not an owner but I have a couple of questions...

Did they pose any of this increase due to bedding to members who it would be for before doing so?

The extra money for the bedding has been spent so does that mean since it is paid for that your dues will go back down next year? My gut reaction is no if they operate like any other company but it would be worth pointing out to them that once the capital expense is paid for through dues increase then said increase should disappear. Likely it will not and they will pocket the difference using some sort of convoluted formula. Not poking at DVC specifically but big business in general.

There is not really a system for owners to vote on every line item of the budget. The nature of these particular charges is a little confusing. The DVC news link states that Disney intends to pay the cost of the initial bedding transition, but members dues will cover the cost of future bedding replacements and other related charges. It doesn't sound like it will be a one time charge that will result in dues going back down next year. However, it should not be a driver of an increase next year either since it will already be in the budget and dues.

To answer your question about Disney pocketing the difference, that can't really happen. The DVC dues are set based on budgets and can only be used to cover actual costs and/or set up reserves for future capital improvements. This is a requirement under FL law for all timeshares. The budgets and actual spend are subject to annual audits by an independent accounting firm (audit fees are a component of the dues themselves). The only thing Disney can really "profit" from with DVC dues is maybe allocating a larger portion of shared services expense to DVC at resorts like BLT or BWV where there are both hotel rooms and DVC units. Even that allocation is most likely subject to audit so they can't really stretch it too far.

This. We may often disagree with a few items in a particular year.... but the contract protects us against an escalating profit margin. One of the REAL benefits of a DVC membership .

So the increase is expected to be rescinded in future years once the initial cost is paid for?

This is kind of the problem for me in that they are fairly non-specific when they are trying to sell you on the idea but you folks who are in it already seem to be better versed than the sales team...or at least more forthcoming.

To keep things in perspective the increase at BLT for Housekeeping was $0.20 per point so if you own 160 points it's a $32 increase on your dues. Not a big deal in the grand scheme of things, but as a % increase housekeeping went up 30% over last year. That is why people (or at least me) were seeking an explanation. I do not expect housekeeping to drop $0.20 per point next year, but we should also not expect another 30% increase. The portion of the increase related to bedding should not be a repeat increase anyway. Employee costs will always go up.

As far as the sales people go, they don't want you to think about the fees going up. They will not hide it (or at least they shouldn't if you ask about it) but they are not going to highlight it either in their sales pitch. They will usually just talk about the fee increase being on par or less than resort cash rate increases. Which for 2013 is true depending on which DVC you own and what cash rate you compare to. That's why places like this are great to get some perspective on the pros and cons.

Exactly...and I know you seem to be better versed than even DVC reps! Thanks Goof!

In addition to what has been mentioned about the fact that Dues cover actual expenses only, DVC has an interest in keeping dues under controll (managing the resort well). When they can point to a resort that has been running well, is still in good shape, and has guests satisfied with the amenities, and shows only at 2% or so y/y increas in dues, it helps their sales of future properties.

As for triple sheets replacing spreads, I am not sure what this means, but many hotels/resorts have moved away from the comforter, duvet, or beadspread route. Guest surverys show that many take such an item off the bed and throw it on the floor because they do not feel it is clean (very often they are not cleaned after every guest). DVC does wash their duvets after each guest, because this is what guests want. However, washing a duvet is costly (it is heavy, soaks up a lot of water, and takes forever to dry). My syspicion is that this three sheet thing bot simplifies the bed making process (storage of sheets on linen carts) and makes laundry easier and cheaper. I would hope that the increase in costs to purchase these linens is offset in the future by lower ongoing housekeeping costs.


-dave

I always throw the bedspread on the floor. Especially at WDW since its usually hot there.

I always put the top bedspread to the side, as well. I heard they aren't washed very often soooo.....ew. (Not sure if that is true)

Phonedave says they do wash them, but you can't trust everything you hear on the Internet

I saw one of those news stories once where they go into a hotel room with a blacklight. I am really sorry I watched it. The bedspread isn't the worst offender though. The TV remote has it beat by a mile...

And light switches! Always travel with Lysol wipes!

Alot of hotels are switching to the triple sheets. Basically they end up sandwiching a feather duvet (or something similar) in between two flat sheets. This is most definitely to alleviate hotel guests concerns with the duvets being unclean or having bugs since the sheets are more likely to be washed. (I've also noticed places dropping fitted sheets altogether, and just using a flat sheet there as well, but that is most likely cost saving as they only need to stock/clean/distribute one style sheet instead of 2)

I don't know if it will have much offset down the road. Any idea how often the linens need to be replaced? If a sheet normally lasted 1 year, but a duvet lasted 5, you now need to have 10 flat sheets cost less than a duvet or higher costs will continue. No idea what their linen costs are, but I routinely see good quality flat sheets for $40+ while duvets are $200ish. You can also get cheap flat sheets for $5, so its probably in the middle.

Well.....

I know that most hotels do NOT wash them after every guest (or at least in the past did not). I made such a comment on these very boards about a year or two ago. I said that I doubted that DVC washed the comforter after each guest. I never saw them doing so, and it would be a large expense. Somone copied a reply that they receive from an email to Disney that stated, yes they do wash them after each guest.

Of course THAT response was on the internet as well so take it for what it's worth.

And while remotes are now the dirtiest thing in the room, back before everyone had cell phones, the phone in the rooms were just loaded with crud.

-dave

ehhhh - one thing about that "Black Light" . If you want some fun, get one, then spill innocent things onto an old, CLEAN sheet. Anything with organic content (like some herbal shampoos). Then turn on the light . You'll notice that UV light tends to show off ANYTHING with a good deal of organic content...it's pretty broadband, and does NOT just react to what we would think of as "bodily" fluids . I'm an Analytical Chemist (retired of course) - and a Spectroscopist. The Black Light trick makes great TV shows... but it's not very specific .

Good, that makes me feel a little better. Guess you can't trust what you see on TV either. I will probably still strip the bedspreads off in hotel rooms though.

I did hear that the average office phone has more germs than the toilet seats so I believe it.

As far as mousekeeping dues going up at BLT, that may be a question of who is staying there. Since it is a "dual resort", DVC and CRO, they share the cost of mousekeeping, just like BC, BW, etc. The resort has people that stay with cash, and DVC people staying on points. The percentage mix is what determines which side pays more for the room upkeep. If more guests stay on points, the dues for DVC are more. More cash guests and the CRO side picks up more of the cost. This is determined once a year, and an adjustment of dues is made to cover it.

Since SSR (and OKW) are completely owned by DVC, there is no mix, and DVC is charged the entire cost, regardless of whether a person uses cash or points.

This is how it was explained to me at one time, so I cannot be 100% sure that the information is accurate.

Kevin

I think there is some truth to this. However, at OKW and SSR if someone stays for cash a portion of the cash they pay should be applied to costs such as housekeeping. For example if 5% of OKW guests pay cash and 95% use DVC points then 95% of the annual housekeeping budget should be coved by DVC dues. The remaining 5% of the budget should come out of the cash guest revenue. I do think there are probably more cash guests at BLT than OKW or SSR just due to popularity and location so that could factor in too.

I took a food safety class once. As a demonstration, they had a volunteer coat their hands with an unnamed white powder, then wash their hands at least twice. Afterwards, they held their hands under a "blacklight", and the light shows areas that where still "dirty". My only concern with the validity of this demo was: Does the powder have the same proprties as bacteria/virus? I mean, if i coat my hands in crazy glue, then wash them, I am going to get a different result than if i coat them in water then wash them.

Cash rentals are listed on on the financial report as "breakage" income - this flows back to reduce the OpEx portion of the dues. It does not come out of housekeeping, or painting, or guest activities per se, but is a line item reduction in the OpEx portion of the dues.

-dave