Historical Hotel Price Increase

[acejka]

Does anyone know where I can find a list of the historical price increases on the hotels?

I want to see how they usually jump in price vs. the maintence fee jump each year...

Thanks in advance!!

*this is otherwise known as- Anna's got cold feet again!!

 

[BillPA]

I don't have that info, but my 1st Disney stay, way back in 1979 at the Poly was $55 a night. Now, same view and same dates $440. Lagoon view, value season. That's about 7% per year for 29 years. My dues at OKW have gone up from $2.63 in 1993 to $4.56 in 2008. About 3.75% a year for 15 years. Just over 1/2 the percentage increase the Poly rooms have gone up.

 

[ZekeKelso]

I've seen a lot of very smart people try to calculate this, and they get different answers. Unfortunately, hotel rates are a lot more complicated than DVC maintenance fees. The fees only change once a year, are paid by everybody and fall into simple, unchanging categories. Hotel rooms fall into all sorts of changing categories, they vary by season, can change day to day, etc. Making it even more complicated is that different people pay different rates - you have AAA discounts, postcard discounts, etc. How do you factor all that into play and come up with one and only one inflation rate?

Then you have to deal with different time periods. Inflation was a lot higher in the early 80's than in the late 90's. So you can't compare one thing measured backed to the 80's with something else that is measured over a different time period and get a meaningful answer as to which goes up faster.

As I said, I've seen folks try - some show hotel rates going up faster; some show maintenance fees going up faster. Personally, since I can't think of any good reason their inflation rates in the future should be different, I would assume they grow at the same rate.

The good news for DVC is that the total cost (buy-in + maintenance) will grow slower than the inflation rate, since only the maintenance part grows. With hotels, the entire rate is subject to inflation.

 

[tjkraz]

In the 5 years we have been DVC owners, rack rates have consistently gone up 3-5% per year. The exact number varies depending on resort, room class and season. But 3% is pretty much the minimum.

But as others pointed out, it's more complicated than that. Over the last 3-4 years, Disney hasn't been nearly as generous with discounts as they were in the years immediately following 9/11. There was a time when AP discounts could run 40% off of the rack rates. Now folks are lucky to get around 15% off.

Spend too much time looking at those numbers and it will make your head spin.

I think a good rule to remember is this: DVC dues are tied to actual operating costs. As prices inflate (salaries, fuel for buses, insurance premiums), so will our dues. In that sense we have the advantage since the increases are not subject to Disney whim.

Cash prices are a little more volatile. When the economy is going good and occupancy is high, Disney could decide that they want to force a 5% increase. Of course, the other side to that is when the economy is bad, Disney could decide to eat some profits in a given year and hold rates steady or only have a nominal increase. But (and this is the big "but"), such actions would be motivated purely by short-term needs. Even if Disney should implement a less-than-expected rack rate increase some year, you can bet your last dollar that they will make up for it later. In the long-run, Disney isn't going to allow room rates to run behind cost-of-living increases required to operate the resorts.

 

[nuts]

Does anyone know where I can find a list of the historical price increases on the hotels?

I want to see how they usually jump in price vs. the maintence fee jump each year...

Thanks in advance!!

*this is otherwise known as- Anna's got cold feet again!!

Also, keep in mind that increases only apply to dues, not the original price. Dues are usually a fraction of the cost of the room (if you compare to comparable hotel rates). For example, I have 200 pts. Annual dues are about $800. If dues go up 3% and hotel rates go up 3%, then the cost of hotel (out of pocket expense) is actually greater than my dues.

 

[DVC Eric]

good point

 

[StayFLA]

In the 5 years we have been DVC owners, rack rates have consistently gone up 3-5% per year. The exact number varies depending on resort, room class and season. But 3% is pretty much the minimum.

But as others pointed out, it's more complicated than that. Over the last 3-4 years, Disney hasn't been nearly as generous with discounts as they were in the years immediately following 9/11. There was a time when AP discounts could run 40% off of the rack rates. Now folks are lucky to get around 15% off.

Spend too much time looking at those numbers and it will make your head spin.

I think a good rule to remember is this: DVC dues are tied to actual operating costs. As prices inflate (salaries, fuel for buses, insurance premiums), so will our dues. In that sense we have the advantage since the increases are not subject to Disney whim.

Cash prices are a little more volatile. When the economy is going good and occupancy is high, Disney could decide that they want to force a 5% increase. Of course, the other side to that is when the economy is bad, Disney could decide to eat some profits in a given year and hold rates steady or only have a nominal increase. But (and this is the big "but"), such actions would be motivated purely by short-term needs. Even if Disney should implement a less-than-expected rack rate increase some year, you can bet your last dollar that they will make up for it later. In the long-run, Disney isn't going to allow room rates to run behind cost-of-living increases required to operate the resorts.

BINGO, Thank you
It's business at its best
Disney will do what they can to make money
I love DVCNEWS.COM

Ralph