Faldred's Guide To Dining Plan Credit "Values"

[Faldred]

FALDRED'S GUIDE TO DINING PLAN CREDIT "VALUES"

CONTENTS

1. Cut to the chase, how much is each credit worth?
2. What does "value" mean?
3. If I don't order that much at every single meal (or snack), am I losing value?
4. How did you come up with these "values"?
5. Ok, let me see the math...
6. Revision history


1. Cut to the chase, how much is each credit worth?

Using $3 as the value of a snack credit, the 2011 credit values are:

DxDP Meal Credit: $24.33 adult, $5.33 child
TS Credit: $28.50 ($30.50 peak) adult, $6.00 ($7.00 peak) child
CS Credit: $14.50 adult, $3.00 child​

Using $2 as the value of a snack credit, the 2011 credit values are:

DxDP Meal Credit: $25.00 adult, $6.00 child
TS Credit: $28.50 ($30.50 peak) adult, $6.00 ($7.00 peak) child
CS Credit: $15.50 adult, $4.00 child​

2. What does "value" mean?

By "value", I'm actually determining the cost per credit to you, the plan user, assuming that you're paying the full price for the relevant dining package. This is to help you to decide if a particular dining plan makes economic sense. If you are consistently getting more for each credit that the stated value/cost, then it's going to make more financial sense than if you don't.


3. If I don't order that much at every single meal (or snack), am I losing value?

I suppose technically, yes. But rather than look at each meal or snack by itself, take into account averages over your entire stay. It's okay to be less than optimal (or even below cost) with some credit uses if you make up for that with larger savings elsewhere.

Note that dinners tend to be better "value" than lunch, and either more so than breakfast. But don't let that stop you from getting a breakfast or lunch on the plan when you feel like it -- it should work out in the end for most people (and if not, doing the math before you book the dining will let you know).


4. How did you come up with these "values"?

High-school algebra, actually. I took the three different plans (DDP, QSDP, and DxDP), and turned each set of entitlements and cost per night into equations, using the different types of credits as my variables. Because I wound up with 4 variables (snack credit, CS credit, TS credit, deluxe meal credit) and only three equations, I had to solve these equations in terms of one of the four variables. I chose snack credits to be this variable, as they're common to all plans, and they have the lowest price and variance in price, so they're easier to estimate a fixed value.

I did make a couple of simplifications. For one, I'm rounding plan costs up to the nearest dollar. No one, I hope, will quibble over fractions of a penny. I also value the resort refillable mug (for QSDP and DxDP) at $0, because otherwise I'd have to deal with a sliding scale of value based on the length of the stay. Suffice it to say that the mug is simply a "bonus" on these plans beyond the credit values.


5. Ok, let me see the math...

If we make the following variables: C (counter service credit), D (deluxe meal credit), S (snack credit), and T (table service credit), and take the plans as simultaneous equations, we get:

Deluxe: 3D + 2S = 79
Basic: 1C + 1T + 1S = 46
QSDP: 2C + 2S = 35​

Unfortunately, that's four unknowns and three equations. Not good. But let's turn S from a variable to a constant, which reduces our unknowns by 1. Snack credits are pretty limited in value, and they're the one element all plans have in common, so it makes a good choice for turning into a "constant". Now we are left with 3 unknowns and 3 equations, which will give us meaningful results.

Solving the first and third equations, treating S as a constant, yields:

3D = 79 - 2S ==> D = (79 - 2S) / 3
2C = 35 - 2S ==> C = (35 - 2S) / 2​

Now that we know what C is, we can solve the second equation:

T = 46 - C - S ==> 46 - ( ( 35 - 2S ) / 2 ) - S = 28.50​

Curiously, changing the value of S affects only C and D. The value of T is constant regardless of what you change S to. Now, all that's left is to plug in whatever value we choose for "S", and we can compute all three variables. Last year, I used $3 as a snack credit value; for 2011, that would yield:

C = $14.50, T = $28.50, D = $24.33​

A CS credit value goes up by the exact amount the snack value drops, and vice-versa. A DxDP meal credit is affected similarly, but scaled by 2/3. So, using different snack credit values, we see:

S = $4.00 ==> C = $13.50, T = $28.50, D = $23.67
S = $3.00 ==> C = $14.50, T = $28.50, D = $24.33
S = $2.00 ==> C = $15.50, T = $28.50, D = $25.00
S = $1.00 ==> C = $16.50, T = $28.50, D = $25.67
S = $0.00 ==> C = $17.50, T = $28.50, D = $26.33​

Similarly, we can solve for child credit values c (child's CS credit), d (child's DxDP meal credit), and t (child's TS credit):

Deluxe: 3d + 2S = 22
Basic: 1c + 1t + 1S = 12
QSDP: 2c + 2S = 12​

Solving for c and d:

3d = 22 - 2S ==> d = (22 - 2S) / 3
2c = 12 - 2S ==> c = (12 - 2S) / 2​

Solving for t, now that we know c:

t = 12 - c - S ==> 12 - ( ( 12 - 2S ) / 2 ) - S = 6​

So, based on our choice of "S", we can determine the values of c and d (since t is a fixed $6.00 value):

S = $4.00 ==> c = $2.00, t = $6.00, d = $4.67
S = $3.00 ==> c = $3.00, t = $6.00, d = $5.33
S = $2.00 ==> c = $4.00, t = $6.00, d = $6.00
S = $1.00 ==> c = $5.00, t = $6.00, d = $6.67
S = $0.00 ==> c = $6.00, t = $6.00, d = $7.33​

The proof is left for the reader to show that the "peak" season pricing increase for basic DDP (an extra $2/night for adults and $1/night for children) applies directly to the value of the DDP TS credit. (As a hint, note that if the CS credit cost changes, this affects the calculation of the QSDP costs, but those don't change!)


6. Revision history

2011-03-03 Converted my original postings to "guide" form

 

[Disneyhayes]

 

[frannn]

...but trying to help me make a decision based on logic doesn't work, LOL! Thanks for breaking out the costs. Further confirms that we save $$ on the deluxe plan, since we use it for all TS. Point for DH, who wants to go deluxe so he doesn't have to think about it when the check comes (only I have to agonize for months over making the 25+ ADRs ) I'm still not convinced, so I guess I'll go post another "should I/shouldn't I go deluxe question. Ohhhh the horror .

 

[kirsnikity]

Thanks for doing this!

 

[vinotinto]

Excellent post!

 

[lesabrowning]

Excellent post! Thanks for using math to confirm what I already knew : )

 

[gretchenohar@hotmail]

Thank you, Faldred for going to all this trouble and posting your results.
(I HATED Algebra!)

Still a little confused (as usual)...
t = table service?
c = counter service?
s = snack?
d = ?? (I'm assuming it means a DxDDP credit?)

I get the part about the adult DxDDP credit being $24 - so it sure seems a good deal to me - as long as all the credits are used.

Again - thanks!

 

[Faldred]

Thank you, Faldred for going to all this trouble and posting your results.
(I HATED Algebra!)

Still a little confused (as usual)...
t = table service?
c = counter service?
s = snack?
d = ?? (I'm assuming it means a DxDDP credit?)

I get the part about the adult DxDDP credit being $24 - so it sure seems a good deal to me - as long as all the credits are used.

Again - thanks!

"T" is an adult DDP TS credit, "t" is a child DDP TS credit.
"C" is an adult DDP/QSDP CS credit, "c" is a child DDP/QSDP CS credit.
"D" is an adult DxDP meal credit, "d" is a child DxDP meal credit
"S" is a snack credit on any plan, adult or child.

 

[gretchenohar@hotmail]

Thank you!

 

[MikeandReneePlus5]

So for Signature Restaurants -

On regular DP -

My check needs to be $57 for entree, dessert, beverage?

Is that even possible?

or maybe I am looking at this wrong?

 

[Cafeen]

I get the part about the adult DxDDP credit being $24 - so it sure seems a good deal to me - as long as all the credits are used.

While not covered in this post, due to the nature of the DxDDP, you will typically break even at around the 2/3 credits spent at TS point. Theoretically, you could plan a signature dinner each night of the stay, and CS for everything else and roughly break even. In practice, this is too tight for my liking, but any further credit use as TS will push you into (or keep you in) the black.

The reasoning behind this is tied to what Faldred illustrates above (the lesser "cost" per credit on DxDDP) as well as the actual value of each credit on the DxDDP (App + Entree + Dessert + Drink). Not only are you paying less per credit, but you're getting more than you would compared to DDP, making it even easier to make the credits work in your favor. This gives you much more "overage" average on each credit, allowing that overage to knock down the requirements of unspent credits.

Now, I know in my theoretical example I still used all my credits, but for further illustration, 1 TS meal will cost roughly 2 times the amount of 1 CS meal. (Figuring ~$14 for a CS meal, putting an average TS meal at about $28... which isn't far fetched at all considering 3 courses + drink) This means that you could theoretically drop 2 CS meals from the example and add 1 TS meal and maintain the same savings. Of course, this works better over longer stays, as more slight overages can build up to single credit value as well.

For proof of this, my own plans for 2011 put me at spending 24/27 credits total, with 2 of those (I thought I had more ><) as CS, I'm still saving an estimated $144 (I'm solo, so that's just 1 person).

At any rate, this isn't particularly useful, but it does help illustrate that it's easier to make DxDDP work for you than DDP, as long as you're willing to invest the extra time and money to make it do so.

 

[Cafeen]

So for Signature Restaurants -

On regular DP -

My check needs to be $57 for entree, dessert, beverage?

Is that even possible?

or maybe I am looking at this wrong?

Sort of.

Signatures on DDP are not the greatest value, due to the higher per-credit cost, the limited amount of TS credits, and the lesser value of each credit. This is a good case of "look at all of your dining plans as a whole, rather than just each meal on its own". So you may fall short at a signature, but a higher priced 1 TS meal would cover that shortfall.

For a more detailed illustration:
Citrico's
Swordfish - $33 (I don't like fish and would order the Filet, but it's also the priciest thing on the menu and wouldn't work well for this illustration)
Warm Banana Torte - $9 (this, by the way, is delicious!)
Soft Drink - ~$2.50
This totals roughly $44.50, so we have ~$12.50 to "make up"

Let's say we also eat at San Angel Inn on this trip
Mole Poblano - $24
Dessert - $5.75
Soft drink - ~$2.50
This totals up to $32.25, or roughly $3.75 over the "$28.50" per credit cost. It doesn't seem like much, but it's over 1/4 the cost needed to make up for the shortage we incurred at Citricos the night before. It also used middle of the road pricing on the Entree (I'd order the $33 Filete Motuleno if it were up to me, as I like beef )

Basically, the idea would be to spread the "shortage" from the 2TS place over a few "overages" from 1 TS places (and possibly CS places, I know my meal at Cantina last year was $19.20, quite a bit above the $14.50 for this year's CS "cost").

 

[MikeandReneePlus5]

The thing is, many get dxdp just to do sigs. So they stay $8 behind, plus they have to buy breakfast.

 

[MamaDrama]

Your cost/value per meal credit on the DxDP would take tax into account tax, right? So if I know that the price of a particular buffet and that price does not include tax, I would add the tax in to see if it is +/- $24.33.

 

[Cafeen]

The thing is, many get dxdp just to do sigs. So they stay $8 behind, plus they have to buy breakfast.

Except, remember that a DxDDP credit's per credit cost is lower than a DDP TS credit's cost. On top of that, the credit gets you more (+ 1 app, which are usually in the $8-12 range). So, not only would you end up spending closer to $54, you'd only have to make up about $49.

Now, if you're only interested in doing 1 Signature a day, and nothing else, that's perfectly fine. Chances are any dining plan is not going to work for that so it'll be better to go OOP. Determining which makes the most sense for a certain individual is what we do mathematical analysis for in the first place.

 

[MikeandReneePlus5]

Yes agree with you! And it's fun to do the math. I like you rule of thumb that 2/3 of ones credits should be on TS to make dxdp work, but would add that those TS should not be on sigs. You'd be better off with regular dp plus some oop.

 

[3Minnies1Mickey]

Your cost/value per meal credit on the DxDP would take tax into account tax, right? So if I know that the price of a particular buffet and that price does not include tax, I would add the tax in to see if it is +/- $24.33.

correct

 

[Mrs D]

While the Algebra formulas made my head spin and eyes glaze over - I love this thread. Thanks Faldred for creating this and I am enjoying the other posters comments!

 

[Faldred]

Yes agree with you! And it's fun to do the math. I like you rule of thumb that 2/3 of ones credits should be on TS to make dxdp work, but would add that those TS should not be on sigs. You'd be better off with regular dp plus some oop.

By the time you add in appetizers and the DxDP lower cost per credit, signatures are a reasonably good deal on DxDP... at least break-even, and probably better if you're ordering off the higher end of the menu. Even a $30 entree (very low for a signature) by the time you add an $8 appetizer, $8 dessert, and a beverage, is going to be over $50 with tax, which is roughly the DxDP break-even point, depending on your snack credit value.

While the Algebra formulas made my head spin and eyes glaze over - I love this thread. Thanks Faldred for creating this and I am enjoying the other posters comments!

I was a math geek in high school and I'm a computer geek now, it's second nature to me.

By the way, do you know the difference between a nerd and a geek? A nerd is someone whose entire life is centered around a particular topic (often scientific or technological). A geek is someone whose entire life is centered around a particular topic (often scientific or technological)... and LIKES IT!

 

[frannn]

You responded to my other post on whether we should upgrade to deluxe, thanks! When I try to download your spreadsheets, I'm asked if I want to be directed to a web page or something in my computer to open it with. Tried Word, but that didn't work. Could you give me a "Cafeen's spreadsheet opening for dummies" lesson? Thanks!