DVC membership vs staying at Disney Resorts

[Stevegriswold]

Hi,

I just started looking into DVC.
The big question for me is what is the savings?

Example:
If I decide to stay at the Animal Kingdom Resort and just book a hotel room vs. joining DVC and paying annual dues. Has anyone done these numbers? Plus add in the big upfront investment cost to get DVC points, and slowly subtract that each year from your savings.

We were also looiking into a Disney Cruise. We can book it for $799 a person. Three people (taxes, fees etc.) The cost is $2,803.64 on travel websites (Departs Oct 7th).

If I join DVC and wanted to take the same cruise what would the total cost be to me?

What does a point equal when you figure out your annual dues?

Thanks,
Steve
Atlanta GA

 

[toesmom]

We crunched the numbers in the little room at POP about 3 years ago and even based on cheapest rate we could get at value resort, my dh and I both agreed DVC was good deal for us.

If a value makes it a good deal (I think the numbers for us were about after 12 years of the values it paid for itself), then a deluxe like AKL would clinch it for me. Mind you, my dh was sick of the small rooms at the values, so it was time for better accommodations for us anyhow.

We purchased as soon as we got home from that trip and have not regretted it at all.

As for the cruise line, I can't give you any other info.

We are a frugal family to put it mildly and really did the numbers before buying. But then, we did plan to go to disney at least 1 time per year and planned to enjoy it with our kids and grandkids one day (hopefully). So, for us it is worth it.

Also, we've eliminated the additional cost of all inclusive holidays at other destinations by enjoying each of the DVC resorts for what they have to offer.

 

[wildernessDad]

I did a spreadsheet on just this example, a deluxe, savanna-view room versus 160 DVC points in Animal Kingdom Villas.

DVC starts to show savings after 7 vacations. If you can be committed to it for that long, then you will save money according to this comparision.

The comparision assumed a 4 % growth in annual DVC dues and also a 4 % growth in room cost. It also factored in the 12.5 % room tax that is charged when you book the deluxe room. By contrast, taxes for DVC vacations are part of the annual dues.

 

[HenDuck]

wildernessDad, I would love to see the spreadsheet if you don't mind sharing. I'm going to pm you, if that's ok.

tia!

 

[Stevegriswold]

I did a spreadsheet on just this example, a deluxe, savanna-view room versus 160 DVC points in Animal Kingdom Villas.

DVC starts to show savings after 7 vacations. If you can be committed to it for that long, then you will save money according to this comparision.

The comparision assumed a 4 % growth in annual DVC dues and also a 4 % growth in room cost. It also factored in the 12.5 % room tax that is charged when you book the deluxe room. By contrast, taxes for DVC vacations are part of the annual dues.

Sounds great! Could you also send me a copy of your spreadsheet if you don't mind. I'd private message you if I could figure out how.

Thanks,
Steve Griswold

 

[wildernessDad]

wildernessDad, I would love to see the spreadsheet if you don't mind sharing. I'm going to pm you, if that's ok.

tia!

Sent.

 

[wildernessDad]

Sounds great! Could you also send me a copy of your spreadsheet if you don't mind. I'd private message you if I could figure out how.

Thanks,
Steve Griswold

Steve, I have PMed you.

 

[Stevegriswold]

Steve, I have PMed you.

Thanks got he PM, but when I write back it gives me an error saying my post count is too low.

So here is my email:

steve griswold @ Yahoo dot com

Thanks

 

[Donald is #1]

We were also looiking into a Disney Cruise. We can book it for $799 a person. Three people (taxes, fees etc.) The cost is $2,803.64 on travel websites (Departs Oct 7th).

On the cruise front, I am not sure but paying cash may be a better option because the number of points needed for the cruise are per person. I just glanced at the chart quickly so some one else may have better knowledge.

 

[Mtnman44]

SteveGriswold,

Here is a simple chart I drew up. It starts off with the assumtion of an annual 7 night stay on Disney Property. For Disney hotels it assumes a $350 per night cost which increase each year by 3%. For DVC it uses 160 points purchased at $91. Maint fees start at $659 for the DVC and also increase each year by 3%.

In this example, the initial DVC cost will be made up in savings sometime during the 8th vacation. After that the savings really start to add up. Of course, this chart could go out to 40+ years or the contract could be sold at year 20 and would probably sell at more than the purchase price (can't really compare dollar amounts 20 years apart of course). All of this assumes of course that the person would have been spending the 7 nights at a Disney Hotel anyway...

 

[dis@dills]

Sounds great! Could you also send me a copy of your spreadsheet if you don't mind. I'd private message you if I could figure out how.

Thanks,
Steve Griswold

Steve,

It's not you Steve, in order to PM you need several posts to the boards first. I think it's 7 or so. I ran into this situation a few months ago. Just FYI.

Matt

 

[rigsby25]

Have you ever stayed at a DVC? We took a once in a lifetime pull out all the stops vacation at the Contemporary. There were five of us because my daughter brought a friend. We had a big room because there were two beds and a pull out couch, but we felt cramped. We worried about the $$$ of eating out all our meals so we went and bought a cheap styrofoam cooler and got milk and pop and beer and peanut butter and bread, etc., and hot dogs to run down to the food court and warm up. Then we went on the DVC tour and it was all over. No more hotels. DVC all the way. We have taken so many wonderful vacations. Last year, just around this time, we had a "family reunion" and treated our brothers and sisters to a stay at a grand villa. How could we do that without DVC? Every DVC vacation is a wonderful vacation. How can you put price value on that? Plus that, we stayed at DL for our honeymoon and the room was 125.00. 20 years later, when we went back with the kids, those rooms were 500.00 per night. Then remember the perks, such as % off on restaurants and seasons pass, pool hopping, valet parking, special premiers on rides, etc. How can you not go with DVC?

 

[Stevegriswold]

"Then remember the perks, such as % off on restaurants and seasons pass, pool hopping, valet parking, special premiers on rides, etc. How can you not go with DVC?"

Cool.

What kind of DVC deals do members get?
What % of on restaurants and Tickets?
Can you pool hopp to any DVC Pool?

Thanks,
Steve

 

[rigsby25]

I copied this off the member website. The perks are just too numerous to mention.

Walt Disney World® Resort Perks
Enjoy extraordinary offers and discounts available for Disney Vacation Club Members at the Walt Disney World Resort, including savings on select shopping, dining, recreation and other "mouse"cellaneous experiences. Now you and your family can make more of your Membership than ever before!

Walt Disney World Annual Pass Savings and More Disney Magic
Experience all the magic your Disney Vacation Club Membership has to offer. Enjoy a world of savings when you purchase select Walt Disney World Annual Passes. And the savings don't stop there, because Members also are eligible for special admission discounts at other Walt Disney World attractions and experiences.

Shopping
Don't miss out on special savings available to Disney Vacation Club Members at select shops at the Walt Disney World Resort, from cool collectibles to bountiful bath and beauty products to amazing works of art, you're sure to find something spectacular for everyone on your gift list and for you too!

Dining
As a Disney Vacation Club Member, you're eligible for special dining discounts at an amazing array of spectacular and distinctive eateries at Walt Disney World Resort Hotels and Theme Parks, Downtown Disney® Marketplace, Downtown Disney West Side and more!

Recreation
Disney Vacation Club Members are eligible for discounts on a wide world of amazing activities! Take advantage of special savings on both golf and miniature golf, pamper yourself with discounts on spectacular spa treatments or treat your family to fantastic water sports at reduced Member rates.

Tours
Take advantage of more opportunities for family fun with discounts from 15% for Disney Vacation Club Members on fascinating tours available at Disney's Animal Kingdom® Theme Park, Epcot® and the Magic Kingdom® Park.

"Mouse"ellaneous Perks
Make your Membership even more magical. Take advantage of additional discounts and offers that are available to Disney Vacation Club Members when you check out these "Mouse"ellaneous Perks.

NOTE: As a Disney Vacation Club Member, many special offers are available to you from time to time. Please note the special offers above currently available for you to enjoy. To receive any of these discounts, you must present your Disney Vacation Club Member ID Card and/or your current "Key to the World" card with your Disney Vacation Club "Member" designation on it at the location. When paying for purchases with your Disney's Visa® Card from Bank One/Chase, you also must present your Member ID Card to receive any available Member Perks.

All offers are subject to availability and may change without notice. The Disney Vacation Club Member discounts cannot be used in conjunction with any other discounts or promotions. Please refer to the Member Benefits Guide for important information with regard to the above benefits. Reservations are suggested for dining.

 

[DVCLiz]

"Then remember the perks, such as % off on restaurants and seasons pass, pool hopping, valet parking, special premiers on rides, etc. How can you not go with DVC?"

Cool.

What kind of DVC deals do members get?
What % of on restaurants and Tickets?
Can you pool hopp to any DVC Pool?

Thanks,
Steve

No pool hopping any time for anybody to Stormalong Bay at the Beach Club or to the Animal Kingdom pool. If you buy BCV or AKV, then you are considered a guest of that resort and can use those pools.

The perk I like best is the $100 off an Annual Pass renewal. I also like free valet parking very much!!!! Oh, and on our last trip, as we wandered by the new Laugh Floor attraction at MK, I liked the "preview for AP holders and DVC members only" very much, too!

 

[5fordisney]

Hi! I have a question I wondered if any of you could answer for me. I've long had an interest in a DVC purchase but the cost always held us back b/c we are a family of 5. We would need points to cover a 2 bedroom suite and that's way more than we could ever spend. But we could probably swing a studio. My question is, would it be possible to buy a studio and rent a cot for our 5th family member when we stayed? Or is there a 4 guests per room policy in a studio? We are the POR with a trundle or maybe 2 rooms at a value price range (never a $350 a night) family. Could we ever afford a DVC?

 

[dianeschlicht]

Hi! I have a question I wondered if any of you could answer for me. I've long had an interest in a DVC purchase but the cost always held us back b/c we are a family of 5. We would need points to cover a 2 bedroom suite and that's way more than we could ever spend. But we could probably swing a studio. My question is, would it be possible to buy a studio and rent a cot for our 5th family member when we stayed? Or is there a 4 guests per room policy in a studio? We are the POR with a trundle or maybe 2 rooms at a value price range (never a $350 a night) family. Could we ever afford a DVC?

If you buy points at the new AKV, the studios and 1 bedrooms will sleep 5.

 

[Anthony1971]

Studios accommodate 4 at most you could get a one bedroom if MS allows as they state 4 but most say they allow 5 and at AKV it is 5 as they have a sleeper chair but you could bring an air mattress at the rest however a two bedroom would be ideal. look at the point charts at the top than decide what you need.... as far as affording that is a question only you can answer...

 

[lizziepooh]

I've never actually added it up, but I know we save quite a bit by eating breakfast and some lunches and dinners in the room especially when we stay in a l or 2 bedroom unit. If you are willing to do a few simple meals, you can factor that savings in as well.

 

[fwong]

SteveGriswold,

Here is a simple chart I drew up. It starts off with the assumtion of an annual 7 night stay on Disney Property. For Disney hotels it assumes a $350 per night cost which increase each year by 3%. For DVC it uses 160 points purchased at $91. Maint fees start at $659 for the DVC and also increase each year by 3%.

In this example, the initial DVC cost will be made up in savings sometime during the 8th vacation. After that the savings really start to add up. Of course, this chart could go out to 40+ years or the contract could be sold at year 20 and would probably sell at more than the purchase price (can't really compare dollar amounts 20 years apart of course). All of this assumes of course that the person would have been spending the 7 nights at a Disney Hotel anyway...

I calculated 10 years.

So I started with Mtnman44's post and factored in lost investment opportunities into the mix. You can see how I arrived at 10 years with Google spreadsheets:

(I can't post links yet....but here's the address if you want to see the spreadsheet)

//spreadsheets.google.com/pub?key=pI7lU3E3yBiVZyMZvLusJdw

There's a lot of cash tied up in DVC that is no longer earning money...

For example....after 1 year:

$14,560 with an average return of 5% would turn into $15,288
Add in the Maintenance Fee: $15,288 + $659.20 = $15947.20

That's $15947.20 cash you have in the bank because you did not buy DVC. Or $15947.20 you can spend on Disney Hotels if you did not buy DVC.

Now - we all still want to go to Disney -- so we will still have to pay something in order to stay at a nice deluxe hotel: $2,205

$15947.20 - $2,205 = $13,742.20

So if you factor in in lost investment opportunity...at the end of Year 1, you would've still been able to stay at a Deluxe Resort AND still had $13,742.20 cash in the bank if you had not bought DVC.

Using the spreadsheet to roll the clock forward...break-even doesn't occur until Year 10.

So the good news -- DVC is still a deal...but I think it will take 10 years rather than 7. If you factor in an investment rate of return of 8% instead of 5%, then it will take 13 years to break-even rather than 10 years.

---------------------------------

Closing Cost $0.00
DVC Points 160
Cost per Point $91.00
Maint Fee per Point $4.12
% Annual Maint Fee Increase 3%
% Hotel Price Increase 3%
% Investment Return 5%
Initial Disney Hotel Equivalent $2,205.00



Purchase Price $14,560.00

Investment vs. DVC
-------------------
1 $13,742.20
2 $12,837.14
3 $11,839.05
4 $10,741.87
5 $9,539.15
6 $8,224.10
7 $6,789.54
8 $5,227.88
9 $3,531.10
10 $1,690.74
11 ($302.15)