Cruise on points/I don;t think so!!!

[mickeys girl 52]

First before I begin this I don't want this to seem like a bashing on using points for cruises,I believe everyone should use them however they choose. That being said I just had to share my experience this morning,
I booked a 7 night cruise out of Galveston as soon as it opened for Thanksgiving week. I figured it would sell fast being a holiday and also in Texas a lot of the schools are closed all week.
So here are the cabins all 9c/ 2 adults,1 7 yr,1 1yr ($4291.16) cab 2/2 adults,1 15 yr,1 16 yr ( $4928.10) and Cab 3 1 adult, i 14 yr and 1 10 yr ($3776.62) Grand total for all three cabins is $12995.88

So now I call member services just to check what it would cost in points. Holy cow,1843 pts. So if I rent them for $11.00 a pt which I did last year for the first time .It would come to
$20,273.00

Now I expected a difference but not $7277.00 That is another whole vacation.
Like I said before, I have only rented points once last year, so I am no expert.But although I was nervous at the time I rented or transferred all the points I needed in one weekend to very nice folks.
Anyway, I just wanted to share my experience.Have any others out there compared?

 

[DVCconvert]

I'd rent you the points for only $10.50....Think of all that extra cash you could have!!!





***this is not an actually offer to conduct a transaction.
No points were harmed as a result of this jestful reply.

 

[keishashadow]

It probably doesn't matter to certain element of members, those who

a) enjoy the flexibility to use their large number of points

&

b) the "if you have to ask the price you can't afford it" type who want the convenience factor of making a call to MS & the trip is planned.

 

[mickeys girl 52]

***this is not an actually offer to conduct a transaction.
No points were harmed as a result of this jestful reply.[/QUOTE]

 

[LIFERBABE]

For those that have not booked yet and are looking to sail next summer, here are the comparisons I found.

June 9 2012 7 night Disney Fantasy
Cat 11C
2A1C
418 points plus $95 cash (+10 points to cover $95 fee)=428 points or $4280

Cash:
Standard Inside Stateroom 11C
Category $4,585.00
Guest 1 Cruise Fare $1,589.00
Guest 2 Cruise Fare $1,589.00
Guest 3 Cruise Fare $1,407.00
Government Taxes & Fees (Cruise) $ $218.10
Total Price $4,803.10

Using points in this scenario saves $523.00 dollars over renting @ $10 or save $95 if you rent @ $11

So depending on when you book, (next June is more than 1 year away) will determine the point value.
If you book next summer today, that is $11.25 per point value which is pretty good.
Points are set for the duration once released, cash prices are fluid and demand driven. If you can book 2 years out, the early booking cash discount will be hard to beat.

 

[Dean]

There will always be exceptions, there were for this year for the Dream. One needs to look at both options and see where the chips fall for the specific situation. However, I will point out that the negatives for using points for DCL, if one has to change or cancel, are pretty steep and I believe that should be taken into account as well.

 

[majortom1981]

ACK i just looked at the points for the 2 night cruises from new york. It costs more for 2 people for a 2 night cruise in points then for 4 people at my home resort for a week. It ends up cheaper to just pay for the cruise with cash.

 

[rcchello]

Once I trade points to Disney for a cruise, they take all the risk of renting out a room to pay for the cruise. So I understand why they may give less value per point.

Most of these conversations seem to assume there is no risk to the owner in renting out the points. Is it true that 100% of the people who try to rent out points get at least $10 or more for their points? Is it true for people who try to rent out their points more than X months before they expire?

If that were true why isn't the price per points higher, considering you must have more demand than points to get a 100% success rate?

I know that people with distressed points ( months before expiry) have to cut the price of their points but we can assume that those going on cruises are not in that position.

Thanks

 

[DonDon]

Sorry if this has been answered before, but are there any income tax considerations on money generated from renting out points?

 

[WolfpackFan]

Well as one who is sailing on the Magic in two weeks and used points to book the cruise, I don't quite understand why doing this seems to bother some people. I had the points and was tired of using them at WDW, so why not use them to book a cruise. I am very happy for the value I'm getting for my points. I would NEVER rent points. I have a history of being taken in financial transactions and am in fact probably the world's worse new car buyer . It is just something I do not feel comfortable doing. So why not use my points for something we will enjoy doing. In fact we may do this every couple of years. And if I'm making a bad financial decision, it won't be the first time .

 

[quirty30]

Well as one who is sailing on the Magic in two weeks and used points to book the cruise, I don't quite understand why doing this seems to bother some people. I had the points and was tired of using them at WDW, so why not use them to book a cruise. I am very happy for the value I'm getting for my points. I would NEVER rent points. I have a history of being taken in financial transactions and am in fact probably the world's worse new car buyer . It is just something I do not feel comfortable doing. So why not use my points for something we will enjoy doing. In fact we may do this every couple of years. And if I'm making a bad financial decision, it won't be the first time .

I chose the other route and chose to book for cash and rent out my points, but I understand why some choose to use their points directly, for various reasons. I did a lot of research before I booked, and for me, the savings was substantial when factoring in all the considerations. My advice is to always do a comparison - shorter cruises in inside cabins are often a good value on points. Longer cruises in balcony cabins, not usually, but you never know. It also depends on when you book. I booked my June 2012 cruise almost 18 months in advance. The same cruise & cabin is now appx $1500 more...if I were booking today, points & cash would be about even.

 

[Dean]

Once I trade points to Disney for a cruise, they take all the risk of renting out a room to pay for the cruise. So I understand why they may give less value per point.

Most of these conversations seem to assume there is no risk to the owner in renting out the points. Is it true that 100% of the people who try to rent out points get at least $10 or more for their points? Is it true for people who try to rent out their points more than X months before they expire?

If that were true why isn't the price per points higher, considering you must have more demand than points to get a 100% success rate?

I know that people with distressed points ( months before expiry) have to cut the price of their points but we can assume that those going on cruises are not in that position.

Thanks

I don't think that's the case at all but I think the reverse is true, that those using points assume there is little or no risk doing so which is far from the case. Risks for renting can be easily minimized. Risks for using points for a cruise are dramatic in my book and include the real risk of simply losing all of the points completely. The same risks can be said for RCI and BVTC exchanges but to a lessor degree. I've said in the past that one needs at least a return of $8 pp compared to early booking prices to make the cruise a reasonable choice using points, I've come to believe that one needs AT LEAST $10-12 a point return for cruises booked well in advance.

Sorry if this has been answered before, but are there any income tax considerations on money generated from renting out points?

Yes, the true profit (rental minus dues and other related expenses) is a taxable event for most situations.

Well as one who is sailing on the Magic in two weeks and used points to book the cruise, I don't quite understand why doing this seems to bother some people. I had the points and was tired of using them at WDW, so why not use them to book a cruise. I am very happy for the value I'm getting for my points. I would NEVER rent points. I have a history of being taken in financial transactions and am in fact probably the world's worse new car buyer . It is just something I do not feel comfortable doing. So why not use my points for something we will enjoy doing. In fact we may do this every couple of years. And if I'm making a bad financial decision, it won't be the first time .

I don't think anyone cares if you use points for an exchange, DVC or simply lose them. I can't speak for others, but my goal is to ensure that members and potential members realize what they are and are not getting in terms of value and risk. MOST of the time when this comes up it's related to someone looking to buy in and the situation of buying more points than needed for DVC options to use for items such as cruises. IMO, once one already owns, there is a SOMEWHAT different process and one should evaluate their own situation both in terms of their points but also their alternatives to accomplish a given goal. The FACT is that for most situations using points for a cruise is a poor financial decisions but as you point out, we've all made poor decisions at time and retain the right to do so in the future. Buying points to use for exchange options is ALWAYS an extremely poor choice, using points one already owns for similar options is often a poor choice but no always.

 

[BWV Dreamin]

How about exchanging with another TS owner? Would this be considered a bad use? I am looking to exchange with a Wyndham owner who is also a DVC owner .

 

[Dean]

How about exchanging with another TS owner? Would this be considered a bad use? I am looking to exchange with a Wyndham owner who is also a DVC owner .

I think private exchanges are one of the best uses but the devil is in the details as they say. Generally though, simply renting out then using the cash gives you so much more flexibility and options. My experience on private exchanges are that one party often overvalues their option OR simply tries to take advantage of the other party.

 

[disneynutz]

There will always be exceptions, there were for this year for the Dream. One needs to look at both options and see where the chips fall for the specific situation. However, I will point out that the negatives for using points for DCL, if one has to change or cancel, are pretty steep and I believe that should be taken into account as well.

Do we add in the cost of dues when looking at the point cost for a cruise or is it a wash because you have to pay your dues anyway?

Bill

 

[Dean]

Do we add in the cost of dues when looking at the point cost for a cruise or is it a wash because you have to pay your dues anyway?

Bill

I think the best approach is to look at what you can rent your points for and work backwards. I would use dues paid as an ancillary check of value. If anyone wants to ignore dues in their equation and value their points so low, just send them to me. One of the advantages of DVC that makes this a real discussion is that it IS so liquid. No other timeshare system with such exchange options can match the liquidity of DVC points.

 

[Bellecruiser]

Dean,
Thanks for your contributions. I always learn a lot from you, and appreciate your willingness to take the time to explain things.

 

[Dean]

Dean,
Thanks for your contributions. I always learn a lot from you, and appreciate your willingness to take the time to explain things.

Thank you for the kind words. To me, that is part of the greatness of timesharing, the willingness and ability to share information.

I learned a long time ago that many people are going to make bad choices, they simply can't help themselves. How many reports have I seen where someone who knew timeshares had a friend or relative who didn't. They discussed the issues surrounding a timeshare stay, often a preview stay where a tour was required, and the one with knowledge emphasized not to buy including resale option. I can't count the number of times they bought anyway essentially believing the salesperson over the friend/relative to the tune of tens of thousands of $$$.

 

[flying_tigger]

I would think one would consider food and entertainment into the equation, as well. While DVC points get me fantastic accommodations on land, at sea they also buy me unlimited food and drink (non-alcoholic), and [most of my] entertainment.

What would it cost a typical family, per diem, to eat at WDW?

Chris

 

[Dean]

I would think one would consider food and entertainment into the equation, as well. While DVC points get me fantastic accommodations on land, at sea they also buy me unlimited food and drink (non-alcoholic), and [most of my] entertainment.

What would it cost a typical family, per diem, to eat at WDW?

Chris

There is no reason to calculate the food and entertainment because they are included in the cruise either way.