Cash Value of Lost Points

[perge33]

Work concerns may require cancellation of our family's upcoming trip (we're scheduled to leave in 12 days.

Does anyone have any experience with "valuing" a loss of points like this for the purposes of documentation (the function a receipt would normally perform)? My employer may be able to reimburse me. I'd be interested in any way one might document in a semi-official way the value differential between "regular" points and those stuck in a holding account, as well as the loss of points entirely (we're coming to the end of our use year).

I gather that an estimate with respect to the second number can be found on the rental board, but does Disney have an "official" point value they would issue a "receipt" on? I could document the "cash value" of the rooms rented with the points, but that would overstate the value, I'd think.

Thanks in advance....

 

[Duckielucky]

I have never heard of any "official" value of points but $10 per point is about right.

When I joined I did a present value calculation and came up with about $10 per point when I considered the cost of points over time and the maintenance fee.

When you calculate the value of your points when using them for non-DVC rentals or cruises it still comes out to about $10 per point.

Tell your employer that the value is $10 per point. The employer can pay you and the use the points as he/she sees fit.

 

[Jimbo]

I don't have an answer for this, but I'd like to say that this is the most interesting question I've seen here in a while!

 

[MikeJ]

Take the rack rate of the room and multiply by the number of days you were going to stay. This gives you an upper limit to the value of your reservation. Or call CRO and determine if there are any deals Disney is offering on those rooms right now.

If I were in this position, and ended up losing my points because my employer required me to cancel my vacation, I would ensure that my reimbursement was equal to what it would cost me to make the same reservation using cash. I disagree that using the cash value of the rooms would overstate their value, because that is exactly what it would cost you to make the same reservation were you to do it later. This way, your employer still gets you when they need you, and you still get your DVC vacation without having to pay any extra out-of-pocket for it.

- Mike

 

[RobDoc]

The "official" cost is the annual fee paid for the points you will lose. Beyond that, any other valuation has a personal assessment included.

If you are losing the points entirely due to your work and your employer is generously reimbursing you for the value- I'd use the cash value for the room at the time. That rate can be easily documented directly from Disney. You can get a printed rate sheet right from the resort itself.

If you will be able to use the points via the holding account (cancelled within 30 days of the trip), then you still have full use of the points depending on your ability to reschedule within 60 days.

There are many variables you can include in the valuation, but the bottom line would seem to be your employers willingness to compensate you for the inconvenience caused by a change in your schedule.

Good Luck!

 

[KNWVIKING]

Don't forget to factor in pain and suffering

 

[perge33]

Thanks for the thoughtful replies.

I think the "right" economic answer is the $10/pt "market price." It's an interesting question what the market price would be for a holding account point--from which one quantify the "cost" of a cancellation is--but the illiquid market makes it impossible to answer.

OTOH, the best available cash rate is the easiest value to support in the way appropriate for an expense reimbursement.

My current plan is to propose that my employer choose (i) a low figure ($10/pt) supported by minimal "hard evidence," or (ii) a higher figure (cash room rate) that should satisfy the accounting department. Hopefully they'll accept one of these formulations.

 

[Lisa F]

Be glad you're not using trip insurance, they only pay $5/point!

Lisa

 

[CarolMN]

Haven't anything to add to what the others have suggested. Just wanted to say that I'm sorry you have to cancel and hope that you can reschedule soon.