Originally posted by lenshanem
Wow Johnnie...
That is a HUGE increase! Yikes...
Why even bother offering it as a DVC option at this rate?
Has anyone ever questioned DVC or their guide about this? Or does DVC think we just don't notice the increases?
It's been stated here on the DVC board, that Disney is often unable to rent the points you trade to them and therefore they have to charge more for trades. Past numbers have been tossed around saying up to 25% of the traded points go unused. It is really difficult to assess this as members are not provided any information about these trade transactions. These trades are just part of the "Disney magic"...you trade points to Disney and your points magically make lots of money for them.
What is clear to me is that Disney is going to charge the DVCer so many points that there is no way they will lose one penny on the transaction, Heaven forbid they don't make rack rate+ off the DVCer.
While I understand they need to charge enough to discourage DVCers from taking up all the rooms at the Poly, these rates are way excessive.
For example, I trade and give Disney 59 BCV points for a single Fri night at the Poly, Disney rents out a BCV studio for 5 nights in the dream season (60 points).
If they rent 5 nights at rack rate they make $1625.00
If they rent 5 nights at a 50% discount they make $812.50.
If they rent 5 nights at a 75% discount, Disney makes $406.25.
Whens that last time you've seen those kinds of kiscounts at Disney?
In some circumstances a trade may be of OK value, but you if care about the value you receive for your points, you really have to look closely before proceeding. Just like Disney does, I view my points as money. Crunch the numbers on these trades, and you will see what a rip-off they can be.