DCL & Points-Expert please clarify!

[BraveMom3]

Okay, I give up! I just can't seem to wrap my brain around all the different things I have read about using DVC points for the cruise. Could someone please condense the facts for me, and explain them in "english"!!

Bottom line, is it just more $-efficient to pay cash for the cruise? Seems like it takes an awful lot of points.

I've been considering taking myself and my 3 children on the 3 day cruise as part of our annual trip in May/June, but can't seem to fully understand the most economical way to do that.

Please advise.

 

[Dean]

It is more efficient to pay cash, or at least it has been so far. The best you can do with points is a break even and that assumes no specials. If there are points specials, there are very likely to be cash specials that are even better. Of course there are those that just have the points to do this and have invested in DVC as their vacation vehicle.

 

[MikeBW]

It is more cost effective to sell your points and buy the cruise, if you want to put in the effort of selling points, making ressies, getting payment from renter, etc. If you can rent points easily, then it make sense IMHO. We are going on a cruise in April and we used points (380) and all it took was 1 phone call to MS (and $75). The same cruise for cash is @$3200.

 

[Werner Weiss]

When you buy into DVC, you commit to spend a bunch of money up front and a good chuck of money every year. After that, your goal should be to enjoy great vacations.

It may be an interesting academic exercise to calculate whether points used one place or another would "buy you" accomodations that would otherwise cost $8 or $11 or $15 or some other amount per point if you paid cash instead. But the real question should be what would you enjoy doing on your vacation with your DVC points?

Let's say you want to go on a Disney Cruise. You can either dig into your pocket for thousands of dollars, or you can pay a $75 fee and a bunch of DVC points for which you've already made the financial commitment. (In either case you still have to budget for tips and optional expenses such as pop outside of meals, wine, and shore excursions.)

Until now, we've always used our points for WDW vacations. In 2002, we're going to use points for a Disney Cruise. If I do the "academic exercise," it works out that, for the dates and category that we selected, we're getting a value of about $11 per point. (The particular week that we selected is not being discounted.) But, again, that's not the issue.

I'm not saying you shouldn't compare the cash price to the points price for a cruise. If you can get a good cash price, you have the cash, and you have have enough vacation time to stay at a DVC resort in addition to taking the cruise, then paying cash for a cruise may, in fact, be "more efficient."

One more thought about the value of points. I would never pay $495 per night for a 1-BR at BWV or the other crazy WDW hotel prices. So it's not reasonable to divide the points into the room rate to determine the value. One reason we have enough points for the cruise is that I banked a lot of points last Christmas when, instead of staying at a DVC resort, we spent a week in a 3-BR at Marriott's Grande Vista for under $400 (not per night but for the whole week) by combining an II bonus week for a 2-BR and an II getaway for a studio. (We're Marriott owners at Newport Coast in California.) So that $400 paid for a good amount of our $6,000 cruise. We had planned to focus on non-Disney attractions on that visit anyway, after the Disney park pass program ended at the end of 1999. Marriott's Grande Vista may not have the Disney magic, but the accomodations are excellent and the central location is convenient.

By the way, I have no desire to try to rent out our points to someone else. That's a hassle and a risk. And I don't want to worry about the potential tax issues either. I'd rather put my effort into planning great vacations for my family.

 

[BalooCA]

I've been having much the same argument with myself for awhile now. In March I cruised on points and used most of my available points (including borrowing) to go. Something after I returned and the warm glow left my cheeks, I was a bit regretful of having spent so many points. I won't really have adequate points to go home again till after March 2002. On the other hand I wouldn't have been able to afford cruising for cash when I went (which was wonderful), March 2002 isn't really so far away after all and what did I buy my points for but to have wonderful vacations. I'm considering another cruise soon and what we have chosen to do is take the money we would put into a cruise and buy an add on. That way the money we would have spent on one vacation, helps us take 41 yrs of wonderful vacations. Instead of a one time deal it's an investment into many vacations. In other words our answer to the cruise being so many points was....buy more points. Ok, well it maybe a really niffty justification but I like it hee hee hee.

By the way I just really wanted to thank the folks on this board, I would never have made the investment in the first place if I hadn't found this board. Now I kick myself that I didn't do this in 1991 when I first learned about DVC.

 

[Dean]

Werner, I would agree with you in principal. The discussion recently has come up mostly in regards to those looking to buy DVC but also obviously thinking about the other points options as a major portion of their decision. I think someone who is buying for the first time (or contemplating an add on) is in the unique situation of making the decision based on all of the factors. I don't think it's reasonable to buy DVC with the intent of using the other points options as a major component of their "investment". They should either reconsider their options, decide they really don't want to use the other choices very ofter or buy less points. It's not that I want to have people shy away from DVC, I want them to make the best decision possible for themselves and their family and be happy with their choices.

With no guarantees as to value or even continued choices for DC, DCL, II, etc; I think those options are an unreasonable reason for buying into DVC. I'd look at $8-11 per point for those choices as a break even options and I don't think spending $15K or so to break even is worth it. I'd give you the same reasoning for the Marriott's points options so it's not just DVC that I'd fault the questioned line of thinking.

Of course the decision is much different for one that already owns DVC and has extra points. It's much like the decision whether to buy a stock or mutual fund vs hold it if you already own it.

 

[imgoingtodisney]

Since we already had our 9 night vacation at the Wilderness Lodge we rolled this years 170 pts over to next year. We will then add next years 170 pts and in Dec 2002 take the 7 day cruise. We financed for 5 years so will probably not take the cruise again until it is paid off.

 

[gscott8075]

It depends on the time of year.

We were on the fence about using points.

We are cruising in mid - June, 2002. We have to wait for the kiddies to get out of school.

A Category 8, deck 5 is currently quoted at $5005. There are no discounts in the summer.

We used points for the adults (370) and paid cash for the kids + $75 - the DVC kids rate is $629 and the DCL rate is $799. So, we paid $1300 in cash - this reduced our cash outlay by 3700 which equates to $10 per point.

It completely depends on the time of year - make sure you divide out the point cost. Whatever you do, have a wonderful trip!

 

[leslieh]

we did the 7/7/01 magic and used over 400 points for three of us and paid 800 for the 4th person. It did take all of one years plus borrowing from next. But it was sure better then spending the $5000. With the savings we bought another 25 points again!!! I hope thats it.

 

[walter]

We just completed our second DCL cruise and while on the ship, signed up for a third (western itinerary). Each time we paid cash, for we always go when there is some type of deal going on. As stated previously, the number of points needed to cruise and the relative cost of the same, makes it more cost efficient to pay cash. The deal we got recently was $799/person - Cat. 9. Usually we tie the cruise into a stay at OKW.

 

[Dean]

I thought there was an early booking discount year around even for summer though I haven't officially explored the cruise option in some time from a cash standpoint..

 

[gscott8075]

There is an Early Booking Discount for every cruise - the price of the cruises tends to increase $100 per person every few months until cruise time.

The price I quoted above includes the early booking discount. I was referring to deals like Fall Fantasy and Springtime Magic.

 

[Werner Weiss]

Originally posted by Dean
I thought there was an early booking discount year around even for summer though I haven't officially explored the cruise option in some time from a cash standpoint.

That's true. The "value of about $11 per point" that I mentioned in my earlier post reflects the early booking discount. When I wrote, "The particular week that we selected is not being discounted," I really meant that none of the recent DCL price cuts apply to the week that we're going.

 

[Jhalkias]

Just a caution - it very much depends on time of year, and discounts. I recently booked a 7 day cruise in January on points (198) and cash - about $2500. Then suddenly, DCL dropped the cash rate on my cruise and I could get the cruise for $2500 through DU without using ANY points.

But . . . DVC could not get me any further discount. So I cancelled my DVC ressie, booked with DU. The only problem is my 198 points are now RESERVATION points - and cannot be used at any of our "homes" , cannot be banked, and must be used in the current use year- a real bummer, because in a short period of time, I have truly come to love our home away from home.

I still believe that cash is the way to go on a cruise - and will not pull this blunder again unless DCL offers a really good deal to DVC to cruise on points. (This is our third DCL cruise in about 14 months, and we are HOOKED - going again in the fall on the $99 sail again deal!).

 

[nezy]

I too have been pondering this quetion. I like your way of thinking Werner! I want to enjoy my DVC points and not fret over them.. Having said that, I have been considering doing an add-on. The money that I would pay for a cruise for the 5 of us plus my mother and father-in-law would be better spent with add-on points that I can enjoy for the next forty years or so. To me that is the deal, no matter what the DCL dis count is--Well unless its a half-price offer!