DVC Value Increases Over Time

[PamOKW]

I just found a "WDW Resort Vacation Handbook" from 1990. It gives the various room rates. A comparison to today begins to show how the value of DVC ownership increases over time. It's hard to do an apples to apples comparison because seasons and room types are different. The numbers I use in all cases are rack rates and I'll use the most expensive and the least expensive for comparison. There are other rates in-between. Of course, we see a lot of discounts out there today. However, the Handbook mentions that discounts of 20% and 35% are available off these rates at certain times of the year with the MKC, so things aren't that much different.

The least expensive room at CBR in 1990 was $69 per night. Today it's $133 or an increase of 93%. The most expensive, $133 vs. $209 or a 57% increase.

At the GF, a Lagoon view room during Value Season ran $230 vs. today's $400. A 74% jump. Most expensive time of year? $250 vs. $595 -- 138%.

The Poly Lagoon view is similar. $195 vs. $385 or a 97% increase. And prime season, $561 vs. $215 or a 160% jump.


OKW dues, on the other hand, have gone up 36% since 1993 ($.93 per point). A big part of that increase was the 8% jump we had this year.

While there may be "deals" on rooms today, over time those deals will result in higher costs. DVC members "lock in" prices for the future. (Plus we don't have to keep chasing those deals.)

 

[yesdisneyfool]

Thanks PamOKW, this is very interesting.

Since I didn't become a member until 7/2000 ($67), I wonder what the price per point increase has been since day one? In my case, in just shy of 3 years ($84 now) , the price increase to own (when purchased through Disney) has risen 25.37%.

 

[PamOKW]

The pre-construction price has been reported by others at $48 per point. When OKW opened in 1991, the price was $51. I bought in 1993 when the price was $56 per point. In the beginning, the minimum number of points was higher. Along with the "handbook" I found some promotinal material from DVC that gives the minimum buy-in price at $12,190. I think this was for 1991.

 

[Tom and Jen]

Here I am thinking again...........

OK, now when staying onsite, most if not all packages that I am aware of include length of stay admission. Now to take , lets say 300 pts, at a cost of $20,000 purchased 5 years in to the program. $20,000 / 45yrs. = @ $445
Now yearly dues (currently) = @ $1230
Annual Pass (making up for yrly multiple trips) = @ $500

Total "Current" Yearly expense = $2175
Is this, now 40 year, vacation priceless?

Now you can make your adjustment without passes but it still comes to = $1675/year min.

This will increase as member dues increase, but as shown above so do room rates. Inflation : Deflation, take a sec to read some of the Fed's insight. Who knows where we are going with this.

One thing is for certain Disney did put a expiration on this for a reason. I know that price nowhere covers a week BW.

There I go Thinking again.........

T.

 

[yesdisneyfool]

Originally posted by PamOKW
The pre-construction price has been reported by others at $48 per point. When OKW opened in 1991, the price was $51.

Thanks PamOKW. This means in just over 12 years, the price per point has increased between 65 - 75%.

What a great "vacation memories" deal we're getting.

 

[spiceycat]

the Polyn in 72 was $39 a night in 83 it was $125 - so WDW resorts have got up alot over the years - which is I know what Pam has said.

 

[mrsdon]

We paid $80 a night for the Poly on our honeymooon in 82. My mom thought we were nuts for spending that much money.
Sasly shes no longer with us, so I cant share the joys of DVC with her.

 

[erikthewise]

Pam,

I did something similar when in "spreadsheet mode" last year as part of my decision to buy DVC. I looked at five resorts, but only value season rates. I found that value season rack rates had increased at an average annual rate of 4.15% from 1993 to 2001.

The increases tend to be overdramatized by the 13-year period you are looking at. Here are the annualized rates for your data:

<TABLE>
<TR><B><TD>Resort</TD> <TD>Increase</TD> <TD>Annual</TD></B></TR>
<TR><TD>CBR Value</TD> <TD>57%</TD> <TD>3.53%</TD></TR>
<TR><TD>CBR Prime</TD> <TD>93%</TD> <TD>5.19%</TD></TR>
<TR><TD>GF Lagoon Value</TD> <TD>74%</TD> <TD>4.35%</TD></TR>
<TR><TD>GF Lagoon Prime</TD> <TD>138%</TD> <TD>6.90%</TD></TR>
<TR><TD>PR Lagoon Value</TD> <TD>97%</TD> <TD>5.35%</TD></TR>
<TR><TD>PR Lagoon Prime</TD> <TD>160%</TD> <TD>7.63%</TD></TR>
</TABLE>

The 36% dues increase at OKW over 10 years comes out to a 3.12% annual increase. I think (hope!) that is not typical of long term behavior.

[Annualized rates are not calculated by dividing the percent increase by the number of years. The correct formula is (1+P)^(1/Y) - 1, where P is the percent increase (expressed as a decimal) and Y is the number of years.]

 

[PamOKW]

Erik, thanks for the more detailed look. It also shows how these "small" increases quickly add up over time.

Dues are a little hard to estimate what will happen. Early on they went up at the rate of about 5% per year. Then dues stablized for a period of 5 years until we were hit with this year's 8% increase. Much of that increase was attributed to increased health insurance costs for CMs and insurance costs for the resort itself. Hopefully, they will get a handle on that. Here's a look at the percentage changes for OKW over the years.

Starting in 1993
1994 +5.29%
1995 +5.21%
1996 +5.25%
1997 +5.24%
1998 +0.94%
1999 -0.32%
2000 -0.38%
2001 -1.48%
2002 +1.32%
2003 +8.79%

 

[Maistre Gracey]

Great info! Thanx for the interesting stats...

 

[Dean]

Originally posted by erikthewise
The 36% dues increase at OKW over 10 years comes out to a 3.12% annual increase. I think (hope!) that is not typical of long term behavior.

IF you are saying you think that's high, you may be in for a rude awakening over the next 15 years or so as I'd be surprised if the average isn't 5% or more over that time.

 

[erikthewise]

You may well be right, but if so, dues will double to $8 a point in 15 years, then again to $16 a point 15 years after that. Won't it be fun to be holding a 500 pt contract then? Let's root for inflation to float our income at the same rate.

 

[KANSAS]

I have really enjoyed this thread

is it your feeling, that even in 2022, when only 20 years left in DVC PROGRAM

our DVC POINTS, will have value, because of what it could cost to rent a DVC 2 bedroom, in that same year

 

[Pa@okw95]

The value of the money you use over the years must be considered when making cost comparisons over the years. No one has done that with these comparisions. To make a point it may have been more expensive to buy something 20 years ago for $100 then it would be now to buy the same item for $400. $400 may worth less or more than the $100. You must compare the value of money or else all these little comparisons are just not valid. Sorry

 

[PamOKW]

This was just a rough look at the increases. Some people look at the "deals" on rooms that are currently available and wonder whether DVC is a savings. I think it will continue to be a good purchase because, despite deals and special offers, overall the price of resort rooms continues to increase.

I ran some of the numbers through the Federal Reserve Bank's calcultor of "If it cost X in ____ year then the cost in year ____ would be Y".

In 1990 dollars the $69 dollar CBR room would be $97.14, it is $133 -- a 37% increase in price. The DVC points that cost $51 in 1991 should now be $68.90 -- not $84.

The other conversions for 1990 (if anyone want to play around with the numbers) are:

$133 = $187.24
$230 = $323.79
$250 = $351.95
$195 = $274.52
$215 = $302.68

 

[RobDoc]

Originally posted by PamOKW
This was just a rough look at the increases. Some people look at the "deals" on rooms that are currently available and wonder whether DVC is a savings. I think it will continue to be a good purchase because, despite deals and special offers, overall the price of resort rooms continues to increase.

Great information, Pam!

True, that there are some "deals" available at this time. However, there have been many years when the deals were not as available or as good. Prior to 911, it was rare for WDW to offer any discounts for stay from Oct thru Dec each year.

The only discounts were thru DC- even AP discounts were unusual during the last qtr each year. Spring break time and much of the summer was also a time when rack rates were the norm.

I expect that we will eventually see a return to fewer discounted rates for WDW resorts...which will make our membership feel that much better!

Enjoy!

 

[PamOKW]

For fun, I ran the 1993 OKW dues through the same adjustment calculator.

In 1993, dues were $2.56. In 1992, this would equal $3.19. The dues for 1992 were $3.22. This would indicate almost no increase except for inflation.

Comparing to 2003, it would be $3.26 vs. the actual $3.49. This is about a 7% increase which is about equal to the increases in insurance costs. It looks like if DVC can somehow work out this one area over which they have little control, our dues should be back under control.

Looking at some other prices mentioned in this thread. The 1972 Poly room for $39 should have been $92.93 in 1983 but it was $125. The $80 a night Poly room in 1982 should be $152.54 today. We don't know type of room or season but the cheapest Poly Lagoon View is now $385 and in Prime season it's $561.