Considering DVC, but I don't see how it's beneficial...

[crisi]

That's essentially 2 issues. .......

One thing Dean forgot. DVC and DCL can limit the number of cabins available via points. There was a period when the Fantasy and Dream went in that DVC members had a very difficult time cruising on points.

 

[Dean]

One thing Dean forgot. DVC and DCL can limit the number of cabins available via points. There was a period when the Fantasy and Dream went in that DVC members had a very difficult time cruising on points.

A point I often make is that they are not guaranteed programs. IMO for these to be a reasonable consideration they must return a 20% savings AND be guaranteed. I have a standing challenge for anyone to show me an exchange program DVC related outside of the DVC resorts themselves that do so. In reality there's not a single one currently that does either. I could see changes that would make the non cash exchanges of RCI and BVTC a good reason to buy but they are not currently. The very nature of how exchange points are turned into cash dooms the value of those programs. The big difference with DVC and say FF miles or even other timeshare programs that are similar is that there is a real and healthy market value.

 

[zavandor]

This all is so confusing. Is it worth it for cruising?

Let's make an example.
I've picked a random cruise: 5 nights Bahama cruise leaving on February 7th 2016.
For a DELUXE STATEROOM W/ NAVIGATOR'S VERANDAH it's 143 points per person, 286 points for two people.
To have 286 points you would need to purchase direct, let's say at PVB: $47190

To use points for the cruise you have to pay MF: $1721

Also, having paid $47190 upfront, you are missing the opportunity to invest them and get some nice return. I'm going to use a rubbish return, 3%, something not difficult at all to achive without great risks. Your opportunity cost is: $1415
Add the $95 booking fee and you get to a total spend of: $3231.

I've just gone on the DCL website, the same stateroom for two people would be, paying cash: $1,948.56

Using points for cruises is THAT bad.

 

[crisi]

Let's make an example.
I've picked a random cruise: 5 nights Bahama cruise leaving on February 7th 2016.
For a DELUXE STATEROOM W/ NAVIGATOR'S VERANDAH it's 143 points per person, 286 points for two people.
To have 286 points you would need to purchase direct, let's say at PVB: $47190

To use points for the cruise you have to pay MF: $1721

Also, having paid $47190 upfront, you are missing the opportunity to invest them and get some nice return. I'm going to use a rubbish return, 3%, something not difficult at all to achive without great risks. Your opportunity cost is: $1415
Add the $95 booking fee and you get to a total spend of: $3231.

I've just gone on the DCL website, the same stateroom for two people would be, paying cash: $1,948.56

Using points for cruises is THAT bad.

But that is also illustrative of why - if you already own the points - it might be an OK use of points to use them to cruise once in a while. Your member fees are $1721, call the whole booking $1800 with the $95 fee. That isn't bad. There is a difference between someone who has owned their DVC points for fifteen years cruising on them once in a while and someone choosing to buy DVC points to cruise. The first might work out to be pretty much a wash, or even advantageous. The second is a poor choice.

 

[zavandor]

But that is also illustrative of why - if you already own the points - it might be an OK use of points to use them to cruise once in a while. Your member fees are $1721, call the whole booking $1800 with the $95 fee. That isn't bad. There is a difference between someone who has owned their DVC points for fifteen years cruising on them once in a while and someone choosing to buy DVC points to cruise. The first might work out to be pretty much a wash, or even advantageous. The second is a poor choice.

Of course renting would be a much better option.
283 points would give $3113 even at a low rate of $11. I rented my SSR points for $13 pp, so $11 is really conservative for PVB points. I think the going rate for brokers is $11.5 without the premium for 11 months window?
However, even if with that low price per point, renting points would allow to pay for the cruise and have $1164 for onboard spending. Not bad.

I was answering the question if buying DVC direct to get the option to use points for cruises is a good reason. I don't think it is.

But of course, if someone feel that they already got enough value from their contract that the upfront value is not an issue anymore, then using points for a cruise is better than let them go waste. However they are paying a "convenience fee" avoiding to rent them out. A costly $1164 convenience fee in the example above.

P.S. I didn't search for any discount, just picked a random date. If you can find a good discount my example would swing even more toward not using points to cruise.