The meeting is comprised of several components including the formal Board of Directors Meeting, the Member Meeting and a Member question and answer period. During the board sessions, the proposed budgets for 2011 were ratified, along with several amendments which were detailed in the budget mailings sent out in mid-November.
According to figures presented at the meeting, Disney Vacation Club dues have risen at a rate of 3% annually since 2005. That rate is far lower than the 9% industry average compiled by Ernst & Young for the American Resorts Development Association (ARDA.)
Following the budget discussions, attending Members were given the opportunity to pose questions specifically related to annual dues.
- Old Key West renovations will run through mid 2011. Costs are currently on target or under the original budget for the refurbishment.
- A member questioned why dues are rising at a rate higher than the Consumer Price Index (CPI.) The reason given is that CPI is not a good indicator of the cost of operating a resort hotel. CPI deals primarily with the costs of consumer goods such as bread, milk, and so on. DVC representatives estimated that 60% of annual dues go toward employee salaries and benefits (including healthcare costs) which are rising at a rate much higher than CPI.
- Foreclosures are currently an issue for DVC but they do not impact member dues. Disney Vacation Development absorbs all costs associated with foreclosures.
Following the budget Q&A, DVC's independent auditor spoke and reported that all Condominium Associations received an "unqualified" (i.e. "clean") opinion.
DVC President Jim Lewis used the next portion of the meeting to address some issues which have been raised at prior sessions. First was the quality of TV channels offered at DVC resorts, specifically the lack of Fox News Channel. While Lewis sympathizes with owners over the many missing channels--particularly TNT--decisions of that nature are made at higher corporate levels and are unfortunately out of the hands of Disney Vacation Club.
Lewis read a letter from a member regarding a supposed decline in value of DVC ownership due to the discount rates offered at other Disney resorts. Lewis stressed that DVC ownership is a long term proposition. They can neither give refunds to members during a poor economy, nor can ask existing members to pay more for their ownership when the economy is good. Overall Disney is steadily reducing hotel discount programs, so the value of DVC will continue to improve comparatively-speaking.
New member perks introduced in the last year include discounts at Best Friends Pet Care, Via Napoli, Tutto Italia, Ridemakers, Little Miss Matched and trail rides at Fort Wilderness campground. DVC has also obtained member discounts on the D23 fan club and for tickets to Disney Broadway productions.
The issue of room cleanliness was briefly addressed. The goal is 100% member satisfaction. DVC staffers stressed that Members should make every effort to get problems resolved during their stays rather than simply contacting Member Services after the fact.
Disney Vacation Club briefly previewed the on-line booking system which is expected to be live before the end of 2011. The system will add many new features to DVCMember.com including making reservations, creating waitlist requests and borrowing of points. DVC Members were involved in the design and testing of the new system in order to gauge its effectiveness. Implementation of the on-line reservation system will be just one part of a complete redesign of DVCMember.com.
DVC presented the results of its own internal member surveys. Those rating the program as excellent or very good totaled 90% of DVC membership. According to figures provided by the ARDA, the industry average for excellent + very good ratings among timeshare managers is 57%. Market Metrix' independent ratings reflect similar results with DVC as the timeshare segment leader with a rating in excess of 91.
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