luckyman_apd
DIS Veteran
- Joined
- Nov 9, 2010
IMO, the restrictions have benefited a subset of the DVC membership as well as Disney. By limiting the number of points that are used to cruise or stay at one of the other options in the Disney Collection, the Concierge Collection and the Adventurer's Collection, the actual point cost to use those options will be less for those who qualify to use them.
As many know, DVC must send DVC resort rooms to CRO/DRC to rent for cash to pay for these options. To do this, Disney has had to significantly discount the rack rate for these rooms and many of them end up unused. That means the number of points required to use the options must be high enough to absorb all of the discounts and empty rooms (plus the "commission" to CRO/DRC to act as a TA for DVC). Disney dealt with the problem in part by limiting the number of points that may be used to cruise.
With the restrictions, fewer points are chasing those options so Disney doesn't have to send as many rooms to CRO/DRC and should not have to discount those they do send as much). For the direct purchasers who want to use points for those options, the resale restrictions will help keep the point costs lower than they might otherwise have to be.
Also, AFAIK, once the "breakage cap" is reached, - Disney gets to keep the extra $$ for itself (extra profit). Too many discounts due to too many rooms in the supply chain to pay for non-DVC options means less profit for Disney, too. For lots of reasons, Disney wants to keep room rates high.
I actually think this reason was more of a driving factor for the restrictions than was the extra "lift" it may have given the sales group. YMMV.
That makes sense, and it sounds like a win/win for many. As a resale buyer, I understood those restrictions, and whether they were a good use of points or not, it's not why I wanted to buy. I bought for the ability to book at WDW resorts....no more no less. That's what I got, and I saved a bunch of $ in the process.