In recent years Disney Vacation Club has used its annual Condominium Association Meeting to announce new perks and program developments. Annual Pass discounts, wholesale bedding modifications and even construction on a new DVC property--the Villas at Disney's Grand Floridian Resort--were all announced at recent condo meetings. However the 2013 meeting may be remembered most for its lack of substance.
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DVC Senior VP & GM, Ken Potrock
By its very nature, the Condo Association Meeting is a rather bland affair. The session is ostensibly presented as an opportunity for members to meet Disney Vacation Club executives and share feedback on the program. In reality, it's a legally-required annual gathering during which Disney-appointed board members and owner representatives approve resolutions and ratify budgets for the coming year.
Opening the session, Disney Vacation Club Senior Vice President & General Manager Ken Potrock said all the right things, stressing the importance of member feedback and stating that "enhancing your membership experience is our highest priority." Potrock spoke of the product DVC strives to deliver: Choice, Flexibility, Affordability, Access and Legacy.
Potrock spoke of members' desire for exclusive experiences. A short video clip highlighted the recent Adventures by Disney tour of New York City. 2014 brings unique member tours of Norway with a spiritual link to the Disney animated feature "Frozen."
Karl Holz, President of Disney Cruise Line and New Vacation Opportunities took the stage to discuss enhacements to the Disney Magic cruise ship including the introduction of Marvel characters & theming and the AquaDunk water slide.
Karl Holz
Potrock and other Condo Association board members proceeded to review the proposed 2014 operating budgets for each resort and ratify the fees as they were communicated to members via paper or email delivery.
Dues increases averaged around 3% higher than 2013 rates with Bay Lake Tower at Disney's Contemporary Resort up 6.4% and Villas at Disney's Grand Californian Hotel up 7.9%. The increases are largely driven by higher labor costs projected for 2014. Wage raises--many Disney employees are covered by union contracts--higher benefits costs and the impact of compliance with the Affordable Care Act all contribute to the increase.
Labor and employee benefits account for around 2/3 of all budgeted resort operating costs.
All resorts will see some increase in labor expenses due to an improved lifeguard presence. Disney plans to establish standard operating hours at all feature pools with lifeguards on duty throughout.
Gates will be installed at all feature pools, but those modifications are still in the planning stages. No installation timeline was provided, nor was there any indication of whether the install would be funded by Disney or member dues / capital reserves.
Larger percenatge increases at Bay Lake Tower were due to higher property taxes and the introduction of the staffed front desk. Grand Californian and Disney's Animal Kingdom Villas also felt the impact of increased taxes.
One noteworthy accounting change involves pooling of funds in the capital reserves fund. Previously reserve funds were specifically earmarked for one of five uses: Roof Replacement, Interior Refurbishment, External Painting, Common Elements or Paving. If a shortfall occurred in one area--for instance, roof needed to be repaired earlier than anticipated--funds could not be borrowed from other categories. Under the new pooled reserve system, the categories will no longer exist and funds can be used as-needed for any replacement project.
Reserves will not be pooled among different resorts--each Condominium Association will continue to maintain its own capital reserve fund.
Several resort refurbishments are planned for 2014. Both Disney's Hilton Head Island Resort and the Villas at Disney's Wilderness Lodge will receive "Hard Goods" refurbishments. The "Hard Goods" refurbishment is essentially a wholesale renovation of the room with all furniture and fixtures being replaced, refinished or recovered.
Hilton Head Island refurb before / after
Disney's Saratoga Springs Resort & Spa is currently in the final stages of a "Soft Goods" refurbishment which involves replacement of carpets, fabrics and linens. Animal Kingdom Villas, Bay Lake Tower and Grand Californian are in the early stages of a Soft Goods refurbishment scheduled to occur in the next 2-3 years.
Public areas of Disney's Old Key West Resort will be refurbished during an unspecified period in 2014. Renovations will impact restaurants Olivia's and Goods to Go. Also the main pool will be closed for a time. Shuttle service will be available to transport guests to another resort feature pool during the closure--presumably neighboring Saratoga Springs.
Wilderness Lodge refurb before / after
Finally, Ken Potrock took the stage to discuss some planned customer service modifications. DVC has created a Member Education Team. Members will be able to schedule a one-on-one meeting with one of these individuals during their vacation to ask questions and gain a better understanding of how to use their membership.
Enhancements already introduced include the live chat feature on DVCMember.com and introduction of dedicated spanish language Member Services representatives.
Future Polynesian DVC briefly mentioned (no new details)
Ken Potrock closed the meeting by restating their goal to provide Members with exclusive perks and experiences. The exchange program will reportedly be expanded to include more non-Disney destinations. They are pursuing new opportunities to save members money on park admission, dining and shopping. Potrock coined the term "Membership Magic" and claims members will hear much more about savings and discounts in the near future.
The next Condominium Association Meeting is scheduled for December 11, 2014.
