Do points for rooms increase yearly?

[Laderer]

Hi! We joined DVC yesterday which is incredibly exciting! I've been planning the next 6 years or so to see when we can vacation by banking and borrowing.

My calculations look great and I'm thrilled about how much money we'll be "saving", but then I realized that a 5 night stay in a Poly Studio may be more points in a few years than it is now. Will I inevitably need to add-on to keep the same type of vacation every 2 years?

Right now, 5 nights in the Poly Studio for January 8th-13th in 2017 is 80pts.. But will it be 80pts for the same dates in 2018 or 2019? Is calculating right now what we will be able to do in year 2022 pointless?

 

[erionm]

The total number of points for a resort can't be increased unless they add additional villas.

They can reallocation points, but for every increase there has to be an offsetting decrease.

 

[ziravan]

Speculation (not rumor) has it that the bungalows are overpriced and to bring down the cost there, they'll reallocate and make studios more expensive sometime in the future.

1. At most that would be 1-2 points per night. So. 5-10 points per 5 night trip.

2. Almost certainly won't happen until after Poly sells out, so prob not for 3-5 yrs.

When are you planning on going routinely? If during F&W, you might consider during the recission period changing your contract for a guaranteed week.

http://www.disboards.com/threads/purchasing-a-guaranteed-week.3436056/

 

[Laderer]

Thanks for replying!
Yea, those bungalows are crazy expensive! That is interesting that if they bring the bungalow price down that it will raise the studio price!
Poly is our home resort and we will stay in the deluxe studios.
When we stay is very flexible and we would only stay 5 days at the most. I saw that Jan. and Sept. have the lease amount of points. But I'm sure we're just going to go when we can get the most out of our points. Though Food and Wine fest sounds amazing!

 

[jerseyduke]

The total number of points for a resort can't be increased unless they add additional villas.

They can reallocation points, but for every increase there has to be an offsetting decrease.

Exactly this.

If a resort totals 2 million points, that can not change (unless they add villas). It is 2 million points until the lease expires.
They can reallocate points changing how much some weeks cost, but adding here requires subtracting there.

Outside of Aulani, it has not happened much. Recently they did do it some at SSR, raising the points required for the rooms closer to downtown disney, and lowering the points at other rooms.

Many moons ago, they also changed weekdays vs. weekends. Weekend nights were like double a weekday night. They changed that. The whole week now still costs the same number of points, but weeknights are more, and weekend nights are less.

 

[Laderer]

Exactly this.

If a resort totals 2 million points, that can not change (unless they add villas). It is 2 million points until the lease expires.
They can reallocate points changing how much some weeks cost, but adding here requires subtracting there.

Outside of Aulani, it has not happened much. Recently they did do it some at SSR, raising the points required for the rooms closer to downtown disney, and lowering the points at other rooms.

Many moons ago, they also changed weekdays vs. weekends. Weekend nights were like double a weekday night. They changed that. The whole week now still costs the same number of points, but weeknights are more, and weekend nights are less.

Thank you! I appreciate your knowledge I won't worry too much then! After calculating everything, we're getting a great deal. Paying around $650 for this trip when rack rate would be $1700! So I'm assuming rack rate is going to be MUCH more in like 10 years.. So that's why its kind of blowing my mind that each vacation will stay about the same cost for us. Is this what people mean when they say "break even"?

 

[miTnosnhoJ]

While the points generally don't change from year to year (except for speculation about future reallocations at Poly), the seasons do change. If you go every year on March 20, some years it will be in magic season at x number of points. But some years it will fall in the Easter/spring break, Christmas season, which is the most expensive of all, so you would need to spend more points that year - or just go a different week.

The speculation about Poly has a basis in recent history. The most popular areas in Sarasota Springs became more expensive in points for next year, and the less popular areas at SSR are now fewer points. Also, if you read your official documents carefully, Disney discloses that they can do this. But, in general, your points will be worth what they are today, except for reallocations and seasonal variations. Even the seasonal variations must balance out so the total number of points remains the same from year to year.

One other nuance. There is point inflation as new resorts are added. So if you have enough points for a 2 BR at one of the older resorts, like OKW, it might take a lot more points to book a 2BR at a newer resort like VGF. So you should generally be fine at your home resort, but if you want to book newer resorts as they are added, you may want to add-on - or just buy there.

 

[Laderer]

While the points generally don't change from year to year (except for speculation about future reallocations at Poly), the seasons do change. If you go every year on March 20, some years it will be in magic season at x number of points. But some years it will fall in the Easter/spring break, Christmas season, which is the most expensive of all, so you would need to spend more points that year - or just go a different week.

The speculation about Poly has a basis in recent history. The most popular areas in Sarasota Springs became more expensive in points for next year, and the less popular areas at SSR are now fewer points. Also, if you read your official documents carefully, Disney discloses that they can do this. But, in general, your points will be worth what they are today, except for reallocations and seasonal variations. Even the seasonal variations must balance out so the total number of points remains the same from year to year.

One other nuance. There is point inflation as new resorts are added. So if you have enough points for a 2 BR at one of the older resorts, like OKW, it might take a lot more points to book a 2BR at a newer resort like VGF. So you should generally be fine at your home resort, but if you want to book newer resorts as they are added, you may want to add-on - or just buy there.

Thank you! Very interesting!

 

[gluestickgirl]

Thank you! I appreciate your knowledge I won't worry too much then! After calculating everything, we're getting a great deal. Paying around $650 for this trip when rack rate would be $1700! So I'm assuming rack rate is going to be MUCH more in like 10 years.. So that's why its kind of blowing my mind that each vacation will stay about the same cost for us. Is this what people mean when they say "break even"?

For us, we're figuring the break even point to be when our purchase price + the yearly dues we've paid matches what we've saved by staying on those points vs renting points or booking a vacation directly through disney.

 

[miTnosnhoJ]

Is this what people mean when they say "break even"?

The "Break Even Point" is the time period where your savings equal the amount you spent. So anything beyond the break even point is pure gravy. The break even point is a crude measure, because it does not take into account the time value of money - but it is still useful.

For example, lets say you buy in to a resort at $41,000 and this gets you the equivalent of 10 nights a year in a studio - or 5 nights a year in a 1BR. You also pay maintenance fees of $1600 per year. Let's say to book a hotel room of similar size as a studio would cost you $650 per night. So your savings are 10 nights x $650 per night less your annual maintenance fees of $1600. So you save $4,900 per year. But you paid $41,000 to buy your points, so the break even point is $41,000 / $4,900 = 8 years, 4 months, and 12 days. It takes you this long to get savings enough to pay for your initial investment, so you have broken even. It actually takes a little longer to break even because of the time value of money, but it is still a reassuring indicator. If the deal does not break even for 25 years, you have to really stop and think if the deal makes sense.

You could also run the numbers using the dollars you could get from renting your points rather than the cost of an equivalent hotel room. In this case, the breakeven point is much longer, because you cannot rent out your points for enough money to purchase the equivalent in lodging. You can cover your maintenance fees and a little more.

While your lodging costs will be locked in at current rates, the other components will continue to rise, such as maintenance fees, park tickets, air fare, restaurant meals, souvenirs, etc. But if you go to Disney a lot, and enjoy it, it is a good deal. We have had no regrets. We are in the process of adding more points because we now need a 2BR most years.

 

[Laderer]

For us, we're figuring the break even point to be when our purchase price + the yearly dues we've paid matches what we've saved by staying on those points vs renting points or booking a vacation directly through disney.

Oh! Okay, I just did the math and if we save about the same every year, that's like 20 years for us to break even.. Unless we start saving more when/if they increase the rack rate. I will have to research to see if 20 years to break even is good! I mean paying 20 years for 50 years of luxury is pretty darn good to me!

 

[Laderer]

The "Break Even Point" is the time period where your savings equal the amount you spent. So anything beyond the break even point is pure gravy. The break even point is a crude measure, because it does not take into account the time value of money - but it is still useful.

While your lodging costs will be locked in at current rates, the other components will continue to rise, such as maintenance fees, park tickets, air fare, restaurant meals, souvenirs, etc. But if you go to Disney a lot, and enjoy it, it is a good deal. We have had no regrets. We are in the process of adding more points because we now need a 2BR most years.

Ah, this I did not factor into my math.. that kind of makes it hard to calculate for the future.. but like you, I'm sure I will enjoy and have no regrets!! We are at minimum points right now, but as our family grows, I can see us adding points for larger rooms. Thank you for replying

 

[freediverdude]

Enjoy it! Even if it takes a while to break even, you'll feel the difference vacationing with DVC. No more waiting for the discounts and scrambling, no more hurrying to get out of your hotel room most days because you know the maid wants in, you can relax and fix some food in your room for a breakfast or whatever and sit out on the balcony and enjoy before heading to the parks. It changes the way you vacation. And you still get all the perks of the Disney resorts, so you're not in some offsite timeshare. Just think, no more $600 per night for a hotel room on the monorail, we own a piece of the Polynesian!

 

[Laderer]

Enjoy it! Even if it takes a while to break even, you'll feel the difference vacationing with DVC. No more waiting for the discounts and scrambling, no more hurrying to get out of your hotel room most days because you know the maid wants in, you can relax and fix some food in your room for a breakfast or whatever and sit out on the balcony and enjoy before heading to the parks. It changes the way you vacation. And you still get all the perks of the Disney resorts, so you're not in some offsite timeshare. Just think, no more $600 per night for a hotel room on the monorail, we own a piece of the Polynesian!

Yea! I love your optimism!! I'm SO excited!!

 

[DisneyRegulars]

Laderer,I'm excited for you and your purchase. I really am. Owning DVC has been amazing for my family, but with some of the questions you are asking, and your rough knowledge of the value of this contract to you, it sounds like you are not very clear on what you actually have bought. I really think you would be wise to do lots of research in the next 8 days to make sure this purchase is right for you. It might very well be, but learn everything you can on these boards to make absolutely sure it is. If it's not, you can cancel your contract and walk away. Continue to ask questions there are lots of helpful people here.

 

[com_op_2000]

My input from 25 years of ownership:
Over 25 years of DVC, there have been 3 major point adjustments and yearly adjustments for holidays (IE: Easter/Spring Breaks).
I am one of those who were badly impacted by the point reallocations.
I went from having enough points to stay 27 nights per year to 22 nights per year. I usually stay in studios, on Sun through Thurs nights, at the lowest points cost seasons.
I had to buy a resale add-on contract to make up for those lost nights.
OP, did you calculate in your kids school schedules during your 6 year points lay out? If not you will be limited to non-school times (unless you home school) of going and those require more points.

 

[disneynutz]

Since you already bought, take your time to learn about the DVC and the system. They will probably increase the studio point requirements as reported, but they will wait until after they sell out so that buying there looks better.

Use your points to stay at other DVC resorts, you may find as we did that we love other resorts more than the one we started with. The problem with being a DVC owner is that you might find yourself wanting to vacation more often and later wanting to buy other resorts or adding on more points. You may also decide that the parks aren't as much fun as they were 15 visits ago, and you will hang out at the resort more and maybe even decide that 1 bedrooms are much more enjoyable.

Bottom line is that Disney vacations are very expensive vacations, at one time I figured that we will spend hundreds of thousands of dollars if we vacation there until our DVC contracts expire.

Good luck and have fun!

Bill

 

[bwvBound]

Bottom line is that Disney vacations are very expensive vacations, at one time I figured that we will spend hundreds of thousands of dollars if we vacation there until our DVC contracts expire.

Yep, ours showed the same even with initial buy in ~$80pp for the full 50 years. Rather startling view of the numbers ...

 

[Laderer]

My input from 25 years of ownership:
Over 25 years of DVC, there have been 3 major point adjustments and yearly adjustments for holidays (IE: Easter/Spring Breaks).
I am one of those who were badly impacted by the point reallocations.
I went from having enough points to stay 27 nights per year to 22 nights per year. I usually stay in studios, on Sun through Thurs nights, at the lowest points cost seasons.
I had to buy a resale add-on contract to make up for those lost nights.
OP, did you calculate in your kids school schedules during your 6 year points lay out? If not you will be limited to non-school times (unless you home school) of going and those require more points.

Thanks for the information! That is exactly what I see possibly happening to us, mostly because we only have 50 points. And right now that is perfect for us.
We have a 5 year old and we're seriously considering homeschooling. However if she stays in public school, then we've planned for that, too. We're only planning on going every other year for 5 days max. This year we're doing 3 nights around July 4th. In 2018 we'll have enough to do the same or a longer stay in the "Adventure" or "Choice" months. This is assuming the reallocations, as you mentioned, don't impact us too much. And this is also for the Poly, but like someone else mentioned, we will probably try other resorts.

 

[disneynutz]

Thanks for the information! That is exactly what I see possibly happening to us, mostly because we only have 50 points. And right now that is perfect for us.
We have a 5 year old and we're seriously considering homeschooling. However if she stays in public school, then we've planned for that, too. We're only planning on going every other year for 5 days max. This year we're doing 3 nights around July 4th. In 2018 we'll have enough to do the same or a longer stay in the "Adventure" or "Choice" months. This is assuming the reallocations, as you mentioned, don't impact us too much. And this is also for the Poly, but like someone else mentioned, we will probably try other resorts.

50 points today, 250 in a couple of years at 2 resorts. Most of us started small but Disney puts something in the water that makes you want more and more.
DW tells me that my ears are getting bigger as I get older so the water may also give us mouse ears!

Bill