You may not want to think about this

[FredS]

Originally posted by eileenfk
...The DVC could become like many other timeshares, and people may end up giving away their memberships, to eliminate paying the fees.

I much prefer to live in a fantasy world then think about reality anyway.

LOL! I am struggling between my level-headed, businesslike (cheap) regular self and the Disney part of me that also prefers to live in a fantasy world!

While I definitely would not find a decline in quality combined with an increase in maintenance fees an "oxymoron" as there are frequent examples in life of costs going up without a parallel increase in quality, I do agree with most who believe that the Disney product has much less risk than most. I think I am just crossing that line from feeling like the primary cost is the initial purchase to getting enough points that the maintenance fees will be more noticeable in what I loosely consider our family budget.

I, too, was a little relieved that DVC is close-ended. My husband and I discussed this and he was not happy that we would not own "forever" but for this type of purchase it might not be a bad thing overall.

At any rate, I expect to go through with our third contract soon!

 

[OneMoreTry]

I've already thought about this question on several occasions and it doesn't really boher me too much. I think if our country and economy deteriorate to the point where Disney's value declines and DVC falls into disrepair, our DVC investments will not be our greatest worries by far.

I've got a few more years until I break even and unless bin Laden manages a serious attack directly on WDW I think we'll make it to then -- and then it's icing on the cake until 2042.


You can't live life risk-free. It's just a sign of the times that we're seriously thinking about the risks of Disney, which has been around for over 50 years and seems to be doing well.

 

[Pa@okw95]

There are two seperate things here, WDW is one and DVC is the other. WDW has been on the decline for years it is really becoming just another amusement park. On the other hand OKW has not declined too much over the years, I have not noticed any decline, the boat situaion one might argue one way or another, the same with the slide, but those can hardly be pointed out as negatives when it comes to decline or not.
We will be paying a lot more in years to come for our dues that is for sure. Even if it get to the point where it matches a deluxe room it would still be worth it because the rooms themselves are deluxe, of course, the service is not, but the rooms are. I believe the dues can only go up a certain percentage every year. I pay $1000 per year now, I fully expect to be paying well over $2000 per year in 10 years.

 

[Disney1fan2002]

The DVC may build so many resorts and rooms that the CRO rate ends up lower then the cost of my points.

I don't think that will ever happen. One of the things that makes Disney so successful, is they KNOW how to create demand.

Notice how they only release movies for a limited time, and then they are gone for years?

Look at the Carousel of Progress in MK, I am sure that was an attraction that many people took for granted. (not a very fun attraction for young kids, but very interesting for adults) so most adults would go on once, and not feel the need to return. So, Disney shut it down for awhile. What happened? Everyone wanted to know what happened to The Carousel of Progress. Now, they open it during peak times. When I was at MK 2 weeks ago, there was a steady stream of people going in.

I am not afraid that we will be over-run with DVC resorts. Disney knows it has to keep us WANTING more. So it gives us a tiny bit at a time.

 

[tjkraz]

Originally posted by FredS
While I definitely would not find a decline in quality combined with an increase in maintenance fees an "oxymoron" as there are frequent examples in life of costs going up without a parallel increase in quality...

That's true. But the main difference here, IMO, is that we are talking about a timeshare. The behavior you describe most often occurs in the interest of driving up profits. For instance, many people believe that things like operating hours and maintenance budgets have been cut at the WDW theme parks despite the fact that ticket prices continue to increase. Clearly such moves are motivated by the desire to increase (or at least maintain) a certain level of profitability.

But when you're dealing with timeshare management, DVC is essentially a non-profit. The operating budgets of the resort are directly proportional to our Annual Dues.

So, if you want to break this down, of greater concern would be the continued well-being of the theme parks in relation to the prices that are paid for park passes, meals, souvenirs, etc. But the quality of the resorts themselves should be directly proportionate to the Annual Dues that are paid, assuming the current managerial efficiencies are at least maintained.

(And I think I just repeated much of what Pa@okw95 said, so I'll give him a nod before I close. )

 

[Mickmse2002]

I'm not too concerned with a considerable drop in quality of the resorts over time. Nor am I overly concerned with maintenance cost per point spiraling out of control. I think sometimes some folks who post here tend to forget exactly what you are getting: pre-paid deluxe hotel accomodations until the year 2042 for non-SSR resorts. Techically you are renting a very small slice of a particular unit for a long time. The beauty of this, from a marketing perspective is that Disney has "captured" us an audience for a long time. Whether we ever go into a park most of us still go at least once, if not more, per year and spend $$$. I have no regrets for purchasing my two contracts and have no fears for the future. Unless a terrorist drives a plane directly into BCV I will be there every year until 2042.

 

[SlyHubby]

the owners can bring in a new management/maintenance company...like Fairfield or Marriott.

I don't think so. DVC "owners" are only leaseholders. The owner is DVD. What you are saying is equivalent to tenants not liking the job a landlord is doing so they'll just bring in a new one. It doesn't work that way.

 

[tjkraz]

Originally posted by SlyHubby
I don't think so. DVC "owners" are only leaseholders. The owner is DVD. What you are saying is equivalent to tenants not liking the job a landlord is doing so they'll just bring in a new one. It doesn't work that way.

I don't believe that's entirely true. DVD is the developer of the project, and yes, ownership does revert back to DVD in 2042 or 2054 depending upon the resort. However, until said time, we are all OWNERS of a small portion of each resort, and there are deeds on file with the Orange County Comptroller's office to prove it.

DVC is the management company that DVD has enlisted to operate the program. Everything from the point system and reservation system to the member perks are DVC creations.

But the owners of any individual resort COULD vote to replace DVC as the management entity for the property. It wouldn't change the fact that the property goes back to DVD on the stated date. And everything that we know about DVC (points, perks, etc.) would immediately change.

But I don't see any way that DVD could legally impose DVC upon the owners of the property if they elected otherwise.

What are the odds of this happening?

 

[Chuck S]

DVC owners of a resort have the right to change and replace management companies. There is nothing that says the owners could not even incorporate and form their own non-profit management company and follow DVC guidelines for points, usage, and banking and borrowing.

But the complexity of a management change would only make it viable in the most extreme circumstance.

Disney/DVC/DVD also has the right to end its management agreement to run the resorts (again, I would say very unlikely).

Such changes would not, however, have any effect upon the end date of the reosrt usage (2042 or 2054) and the propery will revert to DVD/Disney at that time.

The ability to change management may be something required by the state of Florida. The state revamped their timeshare laws prior to the development of DVC.