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Has DVCMC violated members trust?

Updated: Jan 13, 2019

DVCMC stands for Disney Vacation Club Management Corp, the company managing the day to day operations of the Disney Vacation Club for members.

It must not be confused with DVD, Disney Vacation Development, the company owned by Disney to develop and sell new resorts. While DVD aim is to earn as much money as possible for the Disney Company, DVCMC is paid by members to run the resorts day to day operations, the reservation system, Members Services, renovate the resorts and so on.

 

What the DVCMC should do and can do is stated in the resorts POS, the Public Offering Statement. A copy of the resort POS is given to all new purchasers. It describes how DVC works, which are our rights (very few) and our obbligations (a lot). In the POS we can find all the legal stuff, but also a description on most of the "Club" rules.

 

DVCMC is also the entity who can change the POS, modifying the rules that regulate how DVC works. for the benefit of the membership. In the POS, the sentence "in its sole, absolute, unfettered discretion" is used a lot. DVCMC can do almost whatever they want, given they respect the Florida law and that they act in the interest of the membership.

 

But, have they gone a step too far with the point 2020 points reallocation, published at the end of 2018? Have they really acted in the interest of the whole membership? Is everything compliant with Florida law?

 

 

1) The lockoff premium The main pillar of laws regarding timeshares is that a resort cannot be oversold. A developer cannot sell more than 52 weeks per year and for a point system, the amount of points sold cannot be greater than the total amount of points needed to book the whole resort.

The lockoff premium is a loophole, a workaround to create more points out of thin air. DVCMC has increased the lockoff premium greatly damaging members.

 

To read what is the lockoff premium in details and why it shouldn't be permitted, click here.

 

2) Reallocations should leave the total points needed to book one unit/vacation home unchanged

The POS describes the rules that DVCMC must follow when doing a reallocation. Those clearly state that they should balance demand across the year, and not across different unit sizes.

This reallocation does balance the seasons a bit (Adventure and Choice seasons have gone up, Dream is the one that has seen most decreases), but most of the changes have been across different unit sizes.

Studios has almost only gone up and on average one bedrooms (1BR) have gone up too.

Larger units (Bungalows, Cabins) have mostly gone down, with the exception of Tree House Villas, which have gone up almost all seasons.

 

In our opinion this violates the terms of the POS regarding reallocations.

3) Unbalanced re-balance Members have strong evidence that the least popular room size is the 1BR. Studios are the first to go, then 2BR and finally after a lot of time, 1BR. Also, the most common last minute availability is for 1BR. It seems that a reallocation increasing both studios and 1BR in favor of 2BR doesn't make sense. The only possible explanation is that Disney want to push members to book larger vacation homes for the benefit of selling add-ons and larger contracts. At the expense of people who bought to stay in studios.

 

4) The reallocation might be illegal according to the Florida Law

The “One-to-one use right to use night requirement ratio” Florida Law says that a Timeshare Unit cannot be oversold. The 2020 reallocation increases the cost of some Vacation Homes, over the amount of points declared for them. This is not permitted.

 

We have tried to contact DVCMC with our questions, but we haven't received a reply yet.

 

For all these reasons, we think that the 2020 reallocation should be stopped and the new point charts should be reverted to the 2019 version, just with seasonal shifts due to floating holidays.