Discounts for non DVC people-how do you feel?

[vbfamily]

I'm just curious-if someone can get a studio at VWL for $189/nt-discount available now.

Do I save anything by belonging to DVC?

We did all the math over and over again before we decided to buy in but I am just curious how discounts available to the public make DVC people feel. I realize that the general public don't get to vacation for the next 40 yrs, etc.

I may sound really ignorant right now but we were thinking about doing an add on and it was just something that popped into my head.

Has anyone done the math on what DVC members pay for a week and what a cash person pays using a discount? Who comes out ahead?

 

[CaptainMidnight]

Interesting point. I wonder how much it benefits all of us DVC members in lower maintenance costs, if they are able to keep higher levels of occupancy in the WLV during non-peak seasons and use those additional cash contributions to keep our due payments lower and maintain the resort. By the way, just tried to check out rooms during the holiday season. It may take some extra points to get a room, but you should check out those cash prices, WOW!!! $509 a night for a room at the poly, $410 for Wilderness lodge, regular no-view rooms mind you.

The option is always there to bank your points and take advantage of a discount price if the deal looks good. Then use all those great banked points for something special, a peak period or other splurge. Just and idea.

Good thread for discussion.

 

[Laurabearz]

Well I know from my personal experience of getting a great deal on a 2 bedroom at OKW last January........... We bought heavly into DVC after that stay.........
The rack rate was $469... and we got it for $289...... not bad...... but points are much better! That room for the 11 days ran over 3500 bucks, in mid January, for the 11 days....... that would be over $136500 over the next 39 years (not taking into consideration rates going up)

I did try and get a discounted room via CRO for a waitlist day (thank goodness it came thru) and the best they could do was $469 a night......... UGH So glad I bought into DVC

So yes, the discounts can be found here and there, but I prefer knowing that my points will cover the room........ no need to fret over paying 500 bucks (with tax) per night for our room needs...... for us, that is a huge savings. So I say that for us...... we come out ahead everytime!

 

[Werner Weiss]

Originally posted by CaptainMidnight
I wonder how much it benefits all of us DVC members in lower maintenance costs, if they are able to keep higher levels of occupancy in the WLV during non-peak seasons and use those additional cash contributions to keep our due payments lower and maintain the resort.

The revenue from cash room rentals at DVC resorts doesn't go towards keeping our due payments lower and maintaining the resort. *

CRO gets inventory at DVC resorts from two sources:

• Inventory that has not yet been "declared into the condominium" at a resort that is not yet fully sold (currently BCV). In other words, Disney Vacation Development (DVD) still owns the inventory; it is not yet part of the inventory against which DVC members make reservations. DVD pays dues in proportion to their ownership -- regardless of whether their inventory is rented for the full rack rate, a discounted rate, or even if it sits empty.<BR> 
• Inventory that represents points that DVC members have used for Disney Collection (including Disney Cruise Line), Concierge Collection, and Adventurer Collection. This is where CRO gets the vast majority of its inventory at DVC resorts. CRO recovers the money to pays for those cruises, resorts stays and "adventures" by renting out accommodations at DVC reports to cash guests. Some of this inventory is rented for the full rack rate, some at a discounted rate, and some goes unused. In any case, the DVC members who are taking the cruise or staying at the luxury resort are paying the dues on this inventory. The revenue from these cash rentals does not go towards the DVC operating budget to lower dues.

However, as DVC members, we benefit when there's a huge demand by cash guests for undiscounted accommodations at DVC resorts. That makes our points worth more when DVC Management negotiates and draws up the point charts for Disney Collection, Concierge Collection, and Adventurer Collection each year. Unfortunately, with the soft demand for rooms at WDW, our points have been worth less for these options.

* Yes, there is the small issue of breakage income too, which is directly beneficial to DVC members.

 

[Lisa F]

When we were trying to decide whether to buy into DVC, we actually compared AP discounted rooms to studios. At the time you could get an AP discounted standard room for $169/night + tax (or just about $190 per night all told). This was generally during the lower point seasons. Even using the $10/point number that people use for the value of points, we spend 12 days in a BWV standard studio in January for an average of less than $110/night (including one weekend in there). We bought in when points were still $65/point and used MB so effectively paid $55/point so our costs are actually much less than that $10/point.

I guess what I am trying to say is yes, there are discounts out there, but the price I get through DVC is better. Plus there is the flexibility to go during the high season when there ARE no discounts (I still shudder at paying $400+tax/night for NYE reservations at the beach club one year and getting the crappiest view in the place) for an affordable price. A week in that room would be over $3100 if I paid cash... again, using the $10/point number, at 156 points for a week in a standard studio we're saving 50% when there are no other discounts.

Don't forget the times when Disney is doing well (not in the too distant past!) and discounts are few and far between. I frequent the budget board to find deals on other things but I remember a TON of complaining just a few short years ago about how scarce discounts are. I don't have to worry about that any more.

The discounts in general make me feel "eh" because the economy is so "eh" right now... but things will pick up and when they do I will be saying "wow, before I was glad to have bought into DVC when I did but now I am REALLY glad."

Lisa

 

[TiggerFreak]

Werner,

What about the inventory that goes over to breakage?
Does the revenue from these units being rented after entering into breakage go into DVC coffers?

 

[Werner Weiss]

Originally posted by TiggerFreak
What about the inventory that goes over to breakage?
Does the revenue from these units being rented after entering into breakage go into DVC coffers?

Yes. That's why I added the footnote about breakage to my earlier post in this thread. But I'm not an expert on breakage.

Take a look at the post from drusba -- who appears to be an expert on breakage -- in the thread "Disney Cutting Corners???."

 

[Granny]

Originally posted by vbfamily
We did all the math over and over again before we decided to buy in but I am just curious how discounts available to the public make DVC people feel. I realize that the general public don't get to vacation for the next 40 yrs, etc.

vbfamily...discounts to DVC accommodations don't bother me at all. In fact, I wouldn't know about them if people didn't post them here. One of the great things about DVC is not having to chase down codes, discounts and considering an off-site location (been there, done that, ain't going back).


And I agree the discounts won't be there forever. If I relied on discounts, I'm sure I wouldn't visit WDW as often in the next 39 years that I will with DVC!

 

[Maistre Gracey]

Let's look at what a DVC point actually costs a member:
I paid $65 per point, and I can use that point 40 times. (adjust price and years to your individual situation). This means that I can spread the cost of that point over 40 years, or $1.63 per point, per year. I add to that the per point mtc fee of $3.81 (again, adjust for your specific resort) and get a total of $5.44 per point, per year. This price will change as mtc fees change, but capital costs will remain constant. If a studio in Adventurer Season is 104 points per week, we can say that the cash equivelent for a member would be $565.76 ($5.44 * 104 pts). This price would average out (including weekends) to cost $80.82 per night....TAX INCLUDED

If you want to figure interest, or lost interest income into the equation, it still would not come close to the cash price. I do not figure it into the equation for various reasons.

Many here use $10 per point, because they can rent the point for that amount. The above is what it actually costs.

The above per point price will increase with fees, but so will the cash price of the resorts. This formula will always work as a direct comparison between cash and points.

Good luck....

 

[Dean]

Originally posted by vbfamily
I'm just curious-if someone can get a studio at VWL for $189/nt-discount available now.

Do I save anything by belonging to DVC?

We did all the math over and over again before we decided to buy in but I am just curious how discounts available to the public make DVC people feel. I realize that the general public don't get to vacation for the next 40 yrs, etc.

I may sound really ignorant right now but we were thinking about doing an add on and it was just something that popped into my head.

Has anyone done the math on what DVC members pay for a week and what a cash person pays using a discount? Who comes out ahead?

The room that comes out to about the same level as the DVC costs is a discounted Moderate. Of course the DVC rooms are much better at even better resorts. No one knows what will happen in the future but if used correctly DVC will be much cheaper even when taking the steepest discounts into account. Now if we're talking exchange options or weekends, that's a different story.

 

[vbfamily]

I guess I'm just a little confused. I see the discounts available at WDW now and one for VB and I wonder if I should be upset.

We always go to VB in October and it is not very busy and I could use a 20% off coupon. What way am I spending more?

 

[Dean]

Originally posted by vbfamily
I guess I'm just a little confused. I see the discounts available at WDW now and one for VB and I wonder if I should be upset.

We always go to VB in October and it is not very busy and I could use a 20% off coupon. What way am I spending more?

I can't see any reason you should be upset but I'm not truly sure I understand what you are asking. You can always use the cash instead of points if that works out better.

 

[vbfamily]

Yes, we can always use the cash if it works out better but then why bother buying pts?

 

[Maistre Gracey]

Originally posted by vbfamily
We always go to VB in October and it is not very busy and I could use a 20% off coupon. What way am I spending more?

vbfamily, if you use the formula that I posted above, this question will be answered.