2020 DVC Annual Dues

[crvetter]

anyone have a guess why the three premium Monorail resorts BLT VGF POLY have th lowest dues of all WDW resorts besides Saratoga?

I would guess for a couple reasons. VGF and BLT are new buildings so less maintenance expected. And more importantly those resorts have high point costs per night. Thus per room the average points sold is higher so the realized costs can spread further out.

In another thread I showed when you looked at the MF to book a room at those resorts the costs were the highest at all of WDW. Well now RVA probably wins there.

 

[_auroraborealis_]

Are the OKW dues up as a result of the refurb? They don't have the money before any refurb on hand to revamp the place? If so, will SSR follow next year? And just why are the dues at VB so high, hurricane damage?

No. Dues are not due to refurb. Dues the prior 14 years paid for that via the capital expense fund.

This is wage increase. OKW does not share services with anyone to spread that cost around.

 

[rg35]

Full chart is here:

https://dvcfan.com/2019/11/11/2020-disney-vacation-club-annual-dues/

 

[drusba]

No. Dues are not due to refurb. Dues the prior 14 years paid for that via the capital expense fund.

This is wage increase. OKW does not share services with anyone to spread that cost around.

Have not looked at OKW, but it appears likely the annual wage increase due to the current labor contract is the principal cause of the increases at BWV. Budgeted dues went up about $.19 per point, from about $7.17 to $7.36*, an increase of about 2.6%, and $.17 of that $.19 increase, or close to 90% of the increase, is for labor intensive dues items in the budget, such as administration and front desk, transportation, security, and housekeeping.

*That is a difference is in budgeted dues. The actual per point dues paid per member in 2019 was about $7.06 per point, the lower than budgeted number resulting from a set-off for an overpayment of property taxes in 2018.

 

[Brett Wyman]

I'm stunned the OKW dues are so high now, good grief!

Pleased the AKV dues didn't go up much.

Those VB dues are heinous.

They always punish those that people are picking up at a discount on resale.

 

[_auroraborealis_]

Have not looked at OKW, but it appears likely the annual wage increase due to the current labor contract is the principal cause of the increases at BWV. Budgeted dues went up about $.19 per point, from about $7.17 to $7.36*, an increase of about 2.6%, and $.17 of that $.19 increase, or close to 90% of the increase, is for labor intensive dues items in the budget, such as administration and front desk, transportation, security, and housekeeping.

*That is a difference is in budgeted dues. The actual per point dues paid per member in 2019 was about $7.06 per point, the lower than budgeted number resulting from a set-off for an overpayment of property taxes in 2018.

I'm assuming it's a driver at all WDW resorts, given that the collective bargaining agreement provides for step increases through October 2021 to get everyone to the new rates. Disney did point at labor as a key driver last year, and since it's a 3-year increase, it would only stand to reason it will be key this year as well.

 

[bobbiwoz]

We have owned VB since 2004. It’s the beachfront property we can afford! Do I like the cost? No, but I love my ocean view rooms and the Beach Cottages are excellent! The Cast Members are top notch.

We have retired to Cape May NJ where we are .9 miles from the beach. My heart sings when I see the Atlantic. I really am living my dream.

 

[glamdring269]

What the heck is going on with BRV? Supplementing CC and the new development?

 

[SL6827]

No. Dues are not due to refurb. Dues the prior 14 years paid for that via the capital expense fund.

This is wage increase. OKW does not share services with anyone to spread that cost around.

So OKW could get hit big time again next year with another round of wage increases?

 

[SL6827]

I never thought OKW would get an 8% increase. And too think they could get another 8% next year? Wow!!!

 

[grubens]

If I am reading the Notice correctly (big if), BCV 2020 dues are $7.0634.

 

[_auroraborealis_]

So OKW could get hit big time again next year with another round of wage increases?

Everyone will. It is a three-year cycle with the new collective bargaining agreement.

This is a valid cost factor. Having CMs being paid a living wage is a good thing.

 

[SL6827]

Everyone will. It is a three-year cycle with the new collective bargaining agreement.

This is a valid cost factor. Having CMs being paid a living wage is a good thing.

I do agree about the raise in wages being a good thing. But with the resorts that are 100% DVC, that raise doesn't cost Disney a dime does it?

 

[bobbiwoz]

I do agree about the raise in wages being a good thing. But with the resorts that are 100% DVC, that raise doesn't cost Disney a dime does it?

Just for the points they own, I suppose.

 

[drusba]

I do agree about the raise in wages being a good thing. But with the resorts that are 100% DVC, that raise doesn't cost Disney a dime does it?

All those union employees you see working at the DVC resorts including SSR and OKW, such as those working the front desk, bell services, maintenance, and housekeeping, are employees of the main WDW Disney company, Walt Disney Parks & Resorts US, Inc., which pays the wages and benefits to those employees, and none are employees of a DVC entity and none are directly paid by a DVC entity.

They provide their services to the DVC resorts (often combined with services they are providing to the hotel side of the resort for the combined resorts), under a "Property Management Subcontract" agreement that the DVC management company, DVCM Ltd., has with that main WDW company to provide such services, and then DVCM Ltd. pays DVC's share of the wages of benefits directly to that main WDW Disney company and not to the employees. So in reality, Disney and not DVC is paying all of the wages and benefits, but is then being reimbursed for DVC's share.

 

[SL6827]

All those union employees you see working at the WDW resorts including SSR and OKW, such as those working the front desk, bell services, maintenance, and housekeeping, are employees of the main WDW Disney company, Walt Disney Parks & Resorts US, Inc., which pays the wages and benefits to those employees, and none are employees of a DVC entity and none are directly paid by a DVC entity.

They provide their services to the DVC resorts (often combined with services they are providing to the hotel side of the resort for the combined resorts), under a "Property Management Subcontract" agreement that the DVC management company, DVCM Ltd., has with that main WDW company to provide such serves, and then DVCM Ltd. pays DVC's share of the wages of benefits directly to that main WDW Disney company and not to the employees. So in reality, Disney and not DVC is paying all of the wages and benefits, but is then being reimbursed for DVC's share.

Ok, so in the end, Disney is still off the hook for the wage increases and salaries at 100% DVC units? Or am I missing something here?

 

[DOrlo]

I'm an OKW owner and I have serious concerns about these annual dues increases. Not just OKW but all DVC dues. I ran some numbers based on OKW. If you were to take the dues and give them a modest 7% (modest compared to the proposed 8.4% increase for 2020) annual increase each year until 2057, when my contract expires. My 2057 rate shows $95.79/point. That obviously is to the extreme. If you were to make it a 4% (which seems very possible) increase annually it would be $33.44/point. Which is still an insane amount of money.

 

[crvetter]

Ok, so in the end, Disney is still off the hook for the wage increases and salaries at 100% DVC units? Or am I missing something here?

Except on the minimum of 2% of points that it is required to hold for each unit (and for SSR/OKW they subsidized the Dues in prior years more often than not). I will say some of the bigger line items that changed at SSR and OKW was transportation, which does mesh well because gas isn't as low as the prior year when projections were done, plus as bus exclusive and being so spread out they have a much higher cost with the slow/idling speeds going through the resort.

But the point @drusba was trying to make, I think, is that there is a union, and it is collective bargaining rights. I don't think DVCMC would likely be able to hire their own house keepers, etc. cheaper without upsetting the union which would then protest the DVC only resorts. Also since it is subcontracted out, usually things like this would always be cheaper in the long run because of the economies of scale.

I will note that DVC maintains the position that Members (which includes themselves) do not pay for 100% of costs. This was "argued" when the announced the room delivery fee for grocery orders. Because it didn't make sense on where the money was going, but DVC claims back to Disney because members weren't paying for the grocery delivery part of Bell Services but only the luggage service. Debatable point but none the less they argue Members aren't fully responsible.

 

[Maistre Gracey]

Ok, so in the end, Disney is still off the hook for the wage increases and salaries at 100% DVC units? Or am I missing something here?

Disney (or any company) never pays for wages, taxes, or any other expense. Every business just passes those costs to the customer, whether in the form of dues or rack rates.

 

[SL6827]

I'm an OKW owner and I have serious concerns about these annual dues increases. Not just OKW but all DVC dues. I ran some numbers based on OKW. If you were to take the dues and give them a modest 7% (modest compared to the proposed 8.4% increase for 2020) annual increase each year until 2057, when my contract expires. My 2057 rate shows $95.79/point. That obviously is to the extreme. If you were to make it a 4% (which seems very possible) increase annually it would be $33.44/point. Which is still an insane amount of money.

I see what you are saying. When I sold my golly whopper 40 point contract after nine months and after enjoying immensely I did so because I wanted something else more. But now I am asking myself, if I hadn't have already sold, would I now be considering it. Maybe, maybe not?