Are we causing the increase in cruise points required?

[carzmom]

I have wanted to take a cruise using my points, but the point requirements are so high. Do you think we are causing the increase in points ourselves by members renting out their points to people who would otherwise pay cash to Disney? It is so much easier to rent point with DIS and other web sites, I am wondering if this has an impact on what DVC can "buy" from DCL.

 

[Dean]

The points rentals are only a drop in the bucket and most that rent DVC rooms from Disney don't have a clue they could even rent from members. I seriously doubt there's any affect whatsoever.

 

[DebbieB]

I was surprised to see in the latest AAA newsletter that they had Disney cruises at big discounts. For example, they had a 7 day cruise for 3/8, Brochure rate $1,905, AAA rate $1,309. It didn't list the cabin category, so I don't know what the DVC points would be but I wonder how much DVC pays the cruise line, hopefully not full price.

 

[Dean]

Originally posted by DebbieB
I was surprised to see in the latest AAA newsletter that they had Disney cruises at big discounts. For example, they had a 7 day cruise for 3/8, Brochure rate $1,905, AAA rate $1,309. It didn't list the cabin category, so I don't know what the DVC points would be but I wonder how much DVC pays the cruise line, hopefully not full price.

DVC pays a discounted rack rate because they don't know which week you will want and therefore how much they could afford to discount it.

 

[carzmom]

Dean,
Thanks for your reply. I guess I knew member rentals were few in comparison to Disney's, I was just trying to figure out why it costs so many points for the cruise when there are discounts available with cash. But I do like the fact we have options to use our points at DVC, the cruise, or to rent out.

 

[Dean]

The reasons are many. I think part of it is DVC is paying DCL and the other options too much under the circumstances. They are only apparently able to rent out some 75% of the points given up and I suspect (but am not certain) that we are paying CRO (or someone) a significant fee to rent them out. DVC usually values our points at around $5 pp in making the comparisons, or so I'm told. Even though some of the options may return somewhat more in value.

 

[Johnnie Fedora]

I think you can be assued each Disney department takes a cut of your points (or the cash they generate). Imagine if all the points you trade all get rented during a holiday week, what a windfall for Disney.

 

[Dean]

Originally posted by Johnnie Fedora
I think you can be assued each Disney department takes a cut of your points (or the cash they generate). Imagine if all the points you trade all get rented during a holiday week, what a windfall for Disney.

True, but they purposefully do not do this. Matt Gibbs made the comment a few years ago that they could take the traded points and secure holiday weeks and get a hefty price thus making exchanges much cheaper. He felt, and I agree, that it wasn't in the overall members best interest to do so. If it's a choice between cheap exchanges or peak availability, the members are better served with less rental income.