Originally posted by garnet73
The nice lady at DVC informed me that they take your total points for 42 yrs and divide by the average home purchase price and they determined $10/night!
That "nice lady" is insulting the intelligence of DVC members.
Dividing points by the number of years is completely bogus. It neither takes into account the annual maintenance fees nor the long-term value of capital -- and certainly does not reflect the money that Disney derives from renting the accomodations that correspond to the DVC's member's points.
I'm paying 578 points for two adults and two children in a category 6 stateroom. That represents enough points for 20 consecutive nights in a 1-bedroom suite condo (complete with living room, bedroom, full kitchen, utility room, and deluxe bathroom with a jumbo whirlpool bath) at Disney's Old Key West Resort during Magic Season (prime time periods such as March or July). Disney charges $335 to $435 per night for the room. For 20 nights, Disney derives $6,700 to $8,700 from the points I paid for the cruise by renting to cash guests. (The actual amount that Disney derives is less because Disney provides daily maid service to cash guests at OKW, and some percentage of rooms go unsold.)
If I had booked with cash back in May 2001, the same stateroom would have cost $6,055 (which includes the early booking savings) according to
Disney Cruise Line's online reservation system. That's because we're going during a very popular week. If we had gone during most other regular season weeks, the cash price would have been lower, but the number of points would have been the same.
The bottom line is that DVC members pay a similar amount (generally as much or more) for
DCL cruises compared to what cash customers pay -- and I'm talking about real U.S. Dollars that wind up in Disney's bank account.