FairyTale deal makes me nervous!

[lenshanem]

So this FairyTale deal is a pretty darn good deal! Makes me nervous about our closing later this month! If they are offering this deal in the summer what kind of deals will they have next Fall, Winter...
Makes DVC not seem like such a good deal?
Opinions?

 

[Chuck S]

Yes, but with DVC you've essentially got a locked-in rate for 39 years. The Fairytale Pkgs will "magically disappear" when the economy and travel industry improves.

 

[Chadm]

From what I understand, the Fairy Tale deal is not much better than standard code discounts for this time of year. The catch is that they require you to stay for a longer period of time. So, if you weren't planning on staying that long, you will spend more money by just being in Disney longer (park tickets, meals, ...etc.)and that makes up for the small discount above the code rates.

I don't think this is any bigger threat than any other code or AP rate. Like another poster said, over the next 39 years rates will increase. Point value will not.

 

[DebbieB]

Once you stay in a DVC room, you'll feel like you are in a fairytale!

If I did not own DVC, the fairytale deal would not interest me because we have AP's, we get 3 trips out of each one (twice per year, timed so that the 3rd trip is right before expiration). So the UPH requirement would kill it for us.

 

[Jimbo]

DVC is generally thought of as a way to "prepay" your vacations until 2042. Prepaying is a good idea if vacation costs continue to rise, but maybe not such a good idea if costs go down.

The costs are down right now, because Disney's having problems getting people to travel because of the economy and other fears. But long term, does anyone really think that vacationing at WDW will continue to get cheaper? It'd be a surprise to me, anyway.

And if room costs go up at a mere 3%, in 2042 a room that goes for $300 per night today will cost over $700 per night. And that's $700 plus tax, and taxes rise faster then anything. But we DVCers will "pay" the same number of points regardless.

 

[WDWorld2003]

This is making me nervous, too - as we are also thinking of purchasing DVC. It sounds like in some of the Resort threads they are getting DVC rooms for a pretty good price. I know this is to fill their rooms but it does make me uneasy.

It makes me worry for a couple of reasons:

Why would anyone rent points if they could get them cheaper from Disney? Cancellations are definitely easier through Disney. If for some reason I couldn't use my points, I couldn't sell them either if Disney was doing it for less(that's one of my many reasons for buying is that I could still rent the points if I couldn't use them).

They are booking BWV and OKW villas at great prices WITH hopper passes.

I don't mean to sound negative - I'm just concerned...... really like this DVC idea and was getting ready to make the plunge, but wow - deals like this are hard to ignore!

 

[Lisa F]

The economy is in a downturn right now and everyone is hurting, the travel industry expecially and WDW included. When that happens, they offer specials to entice people to visit. The thing to remember is that deals like this won't be around forever, nor can they be counted on. The other thing to remember is that the base rates that these deals are based on will also continue to go up.

We joined in May of 1999 and that was during the big millennium celebration. I still remember people having a difficult time finding discounted rates, and complaining about it. You should've HEARD the whining when there were no fabulous 40% off rates the summer of 2000. I just smiled because I knew I was paying around 100 points for a week in a BWV studio. We figure that our cost per point is about $1.50+ whatever dues are that year. If you buy in at current rates with magical beginnings, it's about $1.90/point + whatever dues are, which is still great. Thismeans that your points cost right around $6/point this year.

We just booked a 1br at BWV for NYE and the weekend after. It is costing us 192 points and we are using our points in the most inefficient way possible, 2 of our 5 nights are WEEKENDS. If I were to pay cash for that room it would cost 2x$570/night+tax for the holiday season (when you don't find the great discounts) + 60% of $390 for 3 nights plus tax (that is to take into account the great 40% discount). My stay would cost me about $2050 if I were to pay cash. If my points are costing me $6/point (in reality for us it's more like $5.50/point) then my reservation is actually costing me $1150, or about 50% off the next best deal I can get. I don't see how I lose, even WITH good deals coming out, and when the economy picks up and the good deals dry up, my savings will be even better.

I also remember the day when you could find a BW or BC/YC room for $169+tax. Now it seems like the best I've seen in a long time is $189/night and the best I can find right now is $215. That's plus tax.

I don't know, any way I cut it, the worst case for me is that I'm getting something roughly equivalent to the best discounts out there without the hassle of having to find the discounts. That is basically just using my points and not worrying about trying to maximize their use. If I am smarter about how I use my points, I come out way way ahead. A 10 day stay in the cheaper seasons with only one weekend is one way. 10 days in BWV during the food and wine festival in a studio is 132 points. Even if you take the usual $10/point, that's $1320 for 10 nights. That's the equivalent of $118/night plus tax. Show me ANY deal where you can stay at the BW for $118/night plus tax. If you use $6/point, it's $792 for 10 days. That's $71/night before tax. Show me where you can stay at BWV for $71/night before tax. No, I am not one bit worried about buying into DVC. Disney would have to go a lot lower than they are going to touch the value I feel I am receiving.

Lisa

 

[westjones]

Is there a link to this offer? We have friends going to WDW in a couple weeks and they haven't planned anything (I know, I can't imagine!). Maybe this would be something they could use?
DJ

 

[CarolA]

Send your friends to www.mousesavers.com

As for renting your points, my advice is NOT to buy on the assumption that you can always rent your points. I think that gets into thinking of a timeshare as an investment. Timeshares are NOT really an investment. Even though my DVC has gone up in value, by the time you do the math (cost of points, lost income on the investments, etc.) it would be hard to make money.

 

[mikesmom]

WHAT lost income on the investment? If I compare our DVC to our real investments, DVC comes out WAY ahead. As a matter of fact, if we'd bought DVC INSTEAD of our investments, say 4 years ago, I could sell the DVC points for more than the investments are worth today!

 

[Cruelladeville]

Well, I hate to burst anybody's bubble, but the best rate I could find anywhere for a 1 bedroom at BWV was $1970 including tax, for 3 nights. If anyone thinks this is a good deal, I have a bridge I would like to sell you. I felt that the number of points for those nights was outrageous, but my cost for those 3 nights on DVC was still only $1200, including maintenance and interest on the loan--for the purists among us, I know that's not accurate because I didn't figure decreasing interest over the term of the loan and increasing cost of the room over 39 years, but it was as simple as I could get. DVC is still a much better deal than paying cash--certainly, $2000 is a hefty downpayment, and about 1/6 of the total cost of a 150 point contract. After 6 trips of 3 nights each, you would have free vacations!!

 

[disneyberry]

after i read the details for this Fairytale package deal, i thought to myself, "haha, Disney is too tricky..." heh.

the deal really isn't that much better than previous room-only discounts.
i guess you get to have UPH instead of other park tix.
the catch is Disney gets people to stay longer, and thus pay more $ on food, drink, other entertainment, etc.
they are too sneaky...

i suppose it is an okay deal for people who already vacation that way (long stays w/ UPH tix). but, i'm guessing Disney is trying to change the vacation habits of people who normally stay for a shorter period of time, or those who stretch out their park tix by having days off from the parks, or using Plus options, etc.

anyway, nope, i'm not worried.

 

[Deb & Bill]

We are going to BCV in June on our DVC points. Going again in January to VWL and OKW on our DVC points. Saw the Fairy Tale offer and got 7 nights at GF (we've always wanted to stay there) for a nice price that included UPHs for the 3 of us at the end of July. Just happens to be my son's birthday, plus our PAPs expire about two days before this new trip begins. It really worked out nice for us. Some people are getting DVC resorts with the FT package, too. We'll get new PAPs in Jan when we go then, plus get a summer trip and maybe Nov or Dec as well on them.

 

[patsal]

The "deal" is not really much better than what codes are usually offered to fill inventory. Just a different spin on it. That said, compared to rack rate it is a good deal for anyone planning a seven day vacation who didn't think deals were available. I used to work in retail and we always had these promos that if you spent $50.00 you would get a certificate for $25.00 off a future pruchase of $50.00. The certificates couldn't be used with sale or clearence mercahandise so the net savings overall was only 25% off. It really is all in the spin that marketing puts on things. It isn't difficult to put a "once in a lifetime" spin on the same old same old.