On Thursday December 13, 2012 Disney Vacation Club held its annual Condominium Association meeting at the conference center within Disney's Contemporary Resort. DVCNews.com was in attendance and posted a running commentary to our Twitter account. For the benefit of those who did not follow the Twitter-cast, following is a detailed look at the proceedings.
Unlike prior years' meetings, the 2012 edition began with little fanfare. Absent were the marching bands, hula dancers and fire eaters. One of Disney Vacation Club's stated goals was to shorten the length of the meeting--which approached 3 hours on most occasions--by sticking to the required assocation business and foregoing most entertainment aspects.
Disney Vacation Club Vice President Claire Bilby served as unofficial MC for the condo association meeting, presenting much of the informal content and introducing other officers participating throughout.
The meeting began with Ms. Bilby's opening remarks and a video montage of recently-added member perks. Mentioned during the video the $399 Premium Annual Passes, 10% merchandise discount at most Disney retail outlets, open access to the Top of the World lounge, new attraction previews and more.
Also in attendance at the meeting was Karl Holz, President of Disney Cruise Line and New Vacation Opportunities. Holz ostensibly heads the division which includes Disney Vacation Club. Holz spoke about their desire to continue reevaluating and improving all aspects of the company, stating that "we are never happy with the status quo."
As Bilby returned to the spotlight, she addressed another change to the 2012 meeting format: elimination of the open mic question and answer session. Apparently this decision was borne out of Ms. Bilby's interactions with members throughout the prior year. Whether she was on a Disney Cruise, Adventures by Disney trip or any other member event, Ms. Bilby enjoyed receiving feedback from members on a more personal, one-on-one level. Therefore, rather than taking questions in the open forum, the decision was made to host a reception immediately following the meeting at which members could share comments and criticism directly with DVC executives.
Moving on to the scripted portion of the meeting, the first order of business was to approve several proposed amendments. The first amendment was a fairly standard piece of housekeeping: authorizing DVC to apply any excess funds from 2012 budgets to the resorts' capital improvement reserves.
The second amendment authorized Disney to send the annual resort budgets / Condo Association meeting announcements via email rather than hardcopy to each member who authorized the electronic receipt.
Next up was discussion of resort budgets and annual dues for 2013.
All resorts saw increases in their total dues for 2013 with some increasing up to 8% over the prior year. One of the primary drivers of the higher dues is labor cost. Two thirds of the resort operating costs go toward employee salaries, benefits and taxes. According to figures cited during the meeting employee compensation is expected to rise between 3 and 20% in 2013 for Florida-based employees. California employee compensation is expected to increase an average of 6%.
In addition to the increased employment costs, some increase in dues will result from a change in the bedding configuration at most Disney Vacation Club resorts. Disney is transitioning to a "triple sheet" linen system on all bed. It consists of one sheet covering the mattress, topped by a flat sheet, blanket and a third designer sheet on top of the bed. This will eliminate the heavy, outdated bedspreads currently in use at most resorts.
DVC reps stated that the triple sheet system is already in use at Aulani and the Villas at Disney Grand Californian Hotel. All other resorts will be transitioned to the new setup in 2013 or 2014. Disney is paying for the initial install while member dues will cover the standard laundry, handling and replacement fees going forward.
A third major influence on 2013 dues rates is property taxes. Newer resorts such as Disney's Animal Kingdom Villas and Bay Lake Tower at Disney's Contemporary Resort saw an increase in tax rates as determined by Orange County, FL. Meanwhile, older properties including Disney's Old Key West Resort and Disney's Saratoga Springs Resort & Spa benefitted from lower tax rates which helped offset increases elsewhere in the budget.
With budgets approved, discussion moved on to other areas of interest including the villa project at Disney's Grand Floridian Resort.
Construction at the Grand Floridian continues with an eye toward a fall 2013 opening. The property is still being registered for sale and the only estimate provided for a sales start date is "soon." Meeting attendees were shown a photo of the projected villa appearance, although the design has not yet been finalized.
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Grand Floridian villa model (proposed)
Changes to Aulani, Disney Vacation Club Villas were mentioned including the new counter service dining option scheduled to open in mid 2013 and the patio covering installed at the Makahiki restaurant to help shelter outdoor tables from the elements.
In January 2013 Disney plans to unveil an update to the DVCMember.com website. January will also bring the announcement of an Adventures by Disney trip exclusively for DVC members.
Points charts for 2014 are scheduled to be released in December (available now) with printed planners mailed in February.
DVC continues to pursue new merchandise opportunities for members, including exclusive iPhone covers scheduled for release in 2013.
DVC Member and S.S. Member Cruise iPhone covers
Next on the agenda is the topic of resort refurbishment / upkeep. Disney has two different classifications of refurbishment projects. A "soft goods" refurb includes replacement of villa linens, carpet, wallcoverings and the like. A "hard goods" refurbishment is more extensive and may include replacement of furniture, appliances, plumbing fixtures, etc.
All in-room refurbishment projects take about three years to complete. The process includes a design phase followed by materials procurement and then the actual implementation.
Numerous resorts were cited as being in either year one or year two of a refurbishment project. Among those resorts are Kidani Village, Disney's Beach Club Villas, Disney's Hilton Head Island Resort, Villas at Disney's Wilderness Lodge, Disney's BoardWalk Villas, Disney's Vero Beach Resort and the Villas at Disney's Grand Californian Hotel. No specifics were offered as to whether each resort is in year one or year two, or the type of refurbishment planned for each property.
Saratoga Springs is midway through its implementation phase of a soft good refurbishment. About half of the villa rooms have been updated with the project scheduled for completion in mid 2013.
Other recent upgrades, by resort, are as follows:
- Animal Kingdom Villas: New animals on the savanna
- Bay Lake Tower: New lobby check-in desk; Top of the World lounge access to all members staying on-property
- Beach Club: Fitness center, spa, salon completely refurbished
- Hilton Head: Beach House refurb complete; enhancements to Shadow's Point; Signals to be refurbished in 2013 with major changes including indoor seating
- Saratoga Springs: Spa closing January - August 2013 for major upgrades
- Vero Beach: new poolside furniture in 2013
And with that, the 2012 Condominium Association meeting came to a close. Total meeting duration was approximately 75 minutes.
As promised, Disney Vacation Club executives did make themselves available for one-on-one Q&A in an adjoining ballroom. Hundreds of members filled the room to take advantage of the opportunity as light refreshments were served in the atrium.
