DVC points at non-DVC resorts

[Dean]

I agree and do not wish to be untrusting, but if DVC overpays for the Disney trade options at our expense, what you say could be true. DVC is not profiting on the trades, but Disney's other divisions could be by getting above market rates from DVC. I looked back at old materials going back 10 years or so and the number of points for the Disney options has gone up much faster than inflation or the cash cost of the rooms.

An example is the CR at 22 points Sun - Thur Reg Season in 1997;22 in 2000; 39 in 2005 and 48 this year. I calulate this as around an 8% annual rate of inflation. One would assume that to keep profits the same at the other Disney divisions we would not have to pay more than a regular cash paying customer at most and might even hope that the increase in the cash value of our accomodations would offset this a little bit. Based on the above, it looks like the cash value of our accomodations has decreased, but we know that is not true. Many outside or non-Disney trades havve seemd to stay more level, indicating that the above comments seem to apply here. I hope this makes sense. I am just trying to figure all this out.

I don't think the other DC resorts are getting above market rates but rather not discounting as much as they might should given their overall structure. Remember there are also a lot more DVC rooms to rent out than there were once and for OKW and SSR (and HH/VB) it's likely a higher percentage are going unused than when there were a lot less rooms to convert to cash.

 

[rlmas]

Thanks for the insights. I guess the moral of the story is what has been said her many times before....buy where you want to stay and if your primary objective is to trade (Disney Collection of otherwise), maybe do not buy.