DVC points and inflation?

[mikkiwikki]

Can I ask a question? We are thinking about becoming DVC members.

One of the FAQ states:

What are the benefits of membership?
There are a number of benefits to joining the DVC. First, the value of the points that you purchase will never change. The same value you receive today, will be the same value you receive in 30 years. While the cost of staying at a Disney hotel rises by 5-10% per year, this is a great hedge against inflation.

But it looks like the point values change from year to year. How can both be true?

 

[JimMIA]

It depends on what you mean by "point values." If you mean selling prices for DVC contracts, yes, those do change. If you mean the purchase power of DVC points, no, those cannot change.

Each DVC resort has a certain number of points, depending on the number and type of units, and the points cost schedules for that resort. Some resorts require more points per night for similar lodging than others, but those points costs do not change over time. As a matter of fact, they can't change by law.

DVC may reallocate point costs, but they can't change the overall number of points. For example, instead of having Fri/Sat costs being roughly double Sun-Thurs, they could change that formula. But if they reduced the F/S cost, they would have to raise the S-T costs correspondingly.

I think DVC has only adjusted points costs once, and that was when they created the view categories at BWV. But the overall points costs did not go up. In fact, if anything, I think they may have gone down slightly.

DVC also adjusts some of the vacation periods to account for the date changes in Easter, for example. But the overall number of points remains the same.

 

[castleri]

The point values that do change yearly are the ones for stays at resorts other than DVC units and the cruise. The other thing that changes is your maintenance fees. They may go up or down yearly.

 

[crisi]

The point values that do change yearly are the ones for stays at resorts other than DVC units and the cruise. The other thing that changes is your maintenance fees. They may go up or down yearly.

This isn't clear and I suspect its just in need of edit. Cruise points do go up yearly. So do rooms at the Poly or trades into Colorado ski resorts.

DVC rooms at Hilton Head, Vero Beach, Boardwalk Villas, Old Key West, Saratoga Springs Resort and Spa, Beach Club Villas, Villas at Wilderness Lodge and Villas at Animal Kingdom Lodge do not change. There are a few minor exceptions - i.e. Easter moves around each year and therefore season moves around the calendar. Also DVC reserves the right to reallocate points throughout the year - the total number of points won't change, but there is a small chance that they could make some points more expensive and other points cheaper - say make early December a more expensive season and make late August cheaper.

 

[mb4cy]

We just joined in December and haven't made our first DVC trip yet, but for us, the decision came down to 1. being able to stay in accommodations we would never stay at otherwise; 2. knowing we have the points to plan at least a yearly vacation; 3. the option to travel to Disney and places other than Disney for 40+ years; 4 Not being locked into a condo in one location for one week each year; 5 Knowing we will get the Disney treatment; and 6. Owning a part of the magic.

We made our decision to purchase on Christmas Day during the DVC tour and we grow more excited and happy about our decision every week!

 

[vandy]

That is why a DVC membership is also said to be like having "prepaid vacations" When you look at the cost of buying points and dividing by the number of years left, you know what you have spent per year for your length of stay. That most likely will never change (as JimMIA explained). What will change is your maintenance fees (dues) per year. Short term we may not see much difference between owning DVC or renting a room elsewhere, but we will see it 10 or 15 years from now. We can show you a yearly cost (1 year purchase cost + fees) to us that has risen slightly, but surely not as much as a regular room through Disney + tax will have increased. Thus it is a "hedge" against inflation.

***This is assumming you never fall victim to the dreaded add-on-itis disease!