DVC Booking as Compare to Bounce Back

[hayesdvc]

I booked the bounce back offer while at WDW last fall. We have normally stayed at a deluxe resort (one of the reasons I purchased my initial DVC resale which we are at the closing process), however, decided to take advantage of the "free" dining while trying out a moderate (PO-R) for 7 nights; two rooms, 5 adults, 1 child, and 1 infant. I know I am paying full resort rate and ticket prices. I need some veteran analysis/opinions. With DVC, I can calculate the points value and I know I can get a food discount (10% or 20% with TIW (extra cost)). Excluding the purchase of an annual pass (for the first time which I plan on converting two of the tickets noted above), I am unsure of any ticket savings with DVC.

Based on the historical data on this site, even after my contract closes, I should not have any trouble booking either type room(s) at SSR (home resort) for the time frame of our plans in September.

These threads have taught me that staying at a moderate is basically a break-even dollar wise as compared to the cost of DVC points while staying at a deluxe.

Assuming same eating habits either with or without DDP, would you cancel what I have and use DVC based on the cost?

 

[com_op_2000]

IMHO, do you need the funds from the cancelation of the bounce back room to help pay for the DVC?
If yes then cancel.
If not then it is up to you to do the math, to determine if you want to try out PO-RS, and to determine what is the best for your group.

 

[mort1331]

The big thing is you have 5 adults. I know when friends go his 2 girls are now considered adults, so 4 in their room. The Free dining pays for them in their case. With kids its hit and miss.
Add it up and see.

 

[BirdsOfPreyDave]

I'm not sure what you're asking. I think you're just asking for a comparison of the cost of a DVC stay at SSR to your free dining stay at POR.

Ok, making a lot of assumptions here...

First, I'm going to assume that your free dining reservation has 7-day hopper tickets and the regular dining plan.

7 nights in a SSR 2-bedroom in September would be 239 points. To add the dining plan for your group would be $2,311.12. Cheapest 7-day park hoppers would be $2,426.70 from Undercover Tourist.

So, your total out of pocket with a DVC stay would be 239 points + $4,737.82.

The question then becomes how much value to put on those 239 points. There are several trains of thoughts in how different people calculate this.

• By comparing the market value: Typically, members are able to rent their points for about $11 per point. This would give the points for this vacation a value of about $2,629. The total vacation cost is $7,366.82.
• True cost: It really didn't cost you $11 per point to buy those points. The true cost is your purchase price plus the annual maintenance fees. This is where the more complicated math comes in that requires some information not in your post, so I'll make more assumptions. SSR contracts look like they're selling for about $83-$91 per point on the resale market. I'll give you the benefit of the doubt that you were a good bargain shopper and found a contract for $83. Figure another $500 in closing costs, so that's about $85 per point. Saratoga Springs contracts expire in January 2054. You're probably going to get 2016 use year points as your first points. That means you get 37 years of points from your contract. $85 divided by 37 years is $2.30 per point per year. Annual dues for SSR are $5.4391, this year. So, the actual cost of your 239 points for the vacation is 239 x ($2.30 + $5.4391) = $1,849.65. The true total vacation cost is $6,587.47. (Note, if you financed your contract, the cost of interest would also need to be factored in, and the cost would be higher.)
• This year's cost: Some people look at the buy-in price as a sunk cost. The contract is paid for, and they don't feel they should be concerned with it any more. In that case, the only cost for the 239 points would be the maintenance fees paid for them for the year of the trip. That would be 239 x $5.4391 = $1,299.95. that would make the total cost of the vacation $6,037.77.

If, as you say, you consider all aspects of staying at POR and SSR to be equal, the numbers in bold are the ones you should compare to the cost of your free booking package to see which is the better deal for you.

Can I suggest, though, that if you're family is happy with staying at POR, maybe you should take a close look at these numbers to see if DVC is a good purchase for you. A stay in a DVC two-bedroom really isn't comparable to a hotel room. You're paying a premium for the deluxe accommodations and amenities like the separate bedrooms, kitchen, Jacuzzi, and laundry machines.

 

[disneynutz]

What Dave said.

Bill

 

[hayesdvc]

I'm not sure what you're asking. I think you're just asking for a comparison of the cost of a DVC stay at SSR to your free dining stay at POR.

Ok, making a lot of assumptions here...

First, I'm going to assume that your free dining reservation has 7-day hopper tickets and the regular dining plan.

7 nights in a SSR 2-bedroom in September would be 239 points. To add the dining plan for your group would be $2,311.12. Cheapest 7-day park hoppers would be $2,426.70 from Undercover Tourist.

So, your total out of pocket with a DVC stay would be 239 points + $4,737.82.

The question then becomes how much value to put on those 239 points. There are several trains of thoughts in how different people calculate this.

• By comparing the market value: Typically, members are able to rent their points for about $11 per point. This would give the points for this vacation a value of about $2,629. The total vacation cost is $7,366.82.
• True cost: It really didn't cost you $11 per point to buy those points. The true cost is your purchase price plus the annual maintenance fees. This is where the more complicated math comes in that requires some information not in your post, so I'll make more assumptions. SSR contracts look like they're selling for about $83-$91 per point on the resale market. I'll give you the benefit of the doubt that you were a good bargain shopper and found a contract for $83. Figure another $500 in closing costs, so that's about $85 per point. Saratoga Springs contracts expire in January 2054. You're probably going to get 2016 use year points as your first points. That means you get 37 years of points from your contract. $85 divided by 37 years is $2.30 per point per year. Annual dues for SSR are $5.4391, this year. So, the actual cost of your 239 points for the vacation is 239 x ($2.30 + $5.4391) = $1,849.65. The true total vacation cost is $6,587.47. (Note, if you financed your contract, the cost of interest would also need to be factored in, and the cost would be higher.)
• This year's cost: Some people look at the buy-in price as a sunk cost. The contract is paid for, and they don't feel they should be concerned with it any more. In that case, the only cost for the 239 points would be the maintenance fees paid for them for the year of the trip. That would be 239 x $5.4391 = $1,299.95. that would make the total cost of the vacation $6,037.77.

If, as you say, you consider all aspects of staying at POR and SSR to be equal, the numbers in bold are the ones you should compare to the cost of your free booking package to see which is the better deal for you.

Can I suggest, though, that if you're family is happy with staying at POR, maybe you should take a close look at these numbers to see if DVC is a good purchase for you. A stay in a DVC two-bedroom really isn't comparable to a hotel room. You're paying a premium for the deluxe accommodations and amenities like the separate bedrooms, kitchen, Jacuzzi, and laundry machines.

Thanks for all the details. All your assumptions were good except we always want to stay at deluxe accommodations just thought POR would be different. I don't consider POR and SSR to be equal at all. What I was trying to say is these threads have taught me that cost wise a moderate and DVC is a wash, If we stay at POR, it will be the first time ever we will have stayed in anything other than a monorail hotel. I had been thinking about DVC for years but took the plung about a month after making the bounce back last fall. I was wanting from a cost standpoint only which would be better with no other emotion involved.

Thanks again for all your SSR work

PS I happen to be in Orlando now on a non WDW adventure. I am at SSR as I am typing. I wanted to see all the different spots including walking to DS.

We bought there based on this site and the threads, never having seen it until today. DW and I love it (we are at the closing stage of buying resale).

 

[nolanboys]

Glad you like SSR. It is our home resort as well and we love it there. I would keep the POR reservation if only because it would mean a quicker trip back to Disney