Can someone explain how DVC recoups the money when members use points for things like cruises?

[bobbiwoz]

There’s a thread here about how Jambo Value units have found their way to CRO. Could they be there because AKV owners used the points elsewhere? I know for a fact that a friend used her AKV points to be the third person in a room on a Members Cruise, and I often talk to people who used points in that way.

Does DVC have to get paid somehow for RCI exchanges, or does money come to them from that exchange?

Thank you.
Bobbi

 

[CarolMN]

To pay DCL for a cruise, DVC must get cash (actually, it ends up being bookkeeping entries between TWDC divisions). To do so, DVCMC sends DVC inventory to CRO, who rent the nights to the general public. The resulting revenue goes to DCL, after a "commision" goes to CRO for doing the work.

We don't t really know how DVCMC selects the nights to send to CRO, but for the most part, it seems they do try not to take nights popular with Members.

For each RCI option a Member selects, DVCMC deposits time to RCI. We don't really know how they select that time, either. It doesn't have to be from the same resort as the points paid to exchange to RCI.

 

[Brian Noble]

RCI. We don't really know how they select that time, either.

However, there is good evidence that DVCMC sends only the "leftovers" to RCI. There haven't been studios or 2BRs in a few years, only 1BRs (the last category to book). The vast majority have been at SSR, with a handful at OKW and once in a blue moon at BRV or AKV. (I have an exchange coming up next month at BRV, and was shocked to get it.)

 

[crisi]

There has been evidence that CRO will list the value or standard rooms to maximize flexibility, but in reality CRO bookers are almost assured of being upgraded when the Value or Standard rooms are used by members. So seeing a value room pop up on the CRO website doesn't necessarily mean that a value room has been pulled from inventory (sort of like when the cruiseline oversells the cheapest categories, knowing they will be able to upgrade some of those cruisers without complaint if they need to fill the ship.)