How to figure out what your DVC room is "costing" per night?

[eeyoresmom]

Can someone share with me a formula to figure out what my actual "cost " is per night? For example: I own 220 OKW points ( original expiration date), which I purchased for $16,800 2 years ago. I did finance it but paid it off in a year and a half so I don't care about adding the financing cost into this since I'm just curious about estimates. My dues for 2010 are about $1068. This spring we are staying 4 nights at AKV and and 4 nights at BLT for a total of 136 points. Just curious as to about what this is costing per night. TIA

 

[skierrob]

Your cost per night for those two stays (136 points) should be $121.10 per night.

Your total cost for 136 points is $968.7688.

This assumes your membership dues cost is $4.8733 per point for 2010 and that you paid $2.25 per point on an annualized basis for 34 years of ownership.

See below for how I do this figuring:

We will do an exmple using my potential 30 point membership (if it passes ROFR!!!):

Take 30 points x $76 per point = $2,280

Divide $2,280 by 32 total years of ownership until 2042 = $71.25

Divide $71.25 by 30 points = $2.375 per point per year.

Now, take your annual dues per point cost. For me at OKW, it's $4.8733.

Add the $4.8733 and $2.375 for a grand total of $7.25 per point.

That is how much each point costs me for the 2010 year.

Now, I decide to stay at Beach Club Villas in a studio for a Saturday night through Monday night (3 nights). The point chart shows that will cost me 46 points, which I can do through banking and borrowing.

So I take 46 points and multiply that by my $7.25 per point cost and I reach a cost of $333.50

Divide by 3 nights and I get a cost of $111.17 per night for the room.

Does this sound right to everyone? Yes, in future years, I have to increase my dues cost which will up my total per point per night cost. But this should be accurate for 2010.

Robert

 

[RobDoc]

I'm sure others may suggest other "formulas", but if you paid $16,800 for your contract 2 years ago you paid about $494 per year for your 220 point contract or about $2.25 per point per year for the 34 years left. In addition, your dues for 2010 are $4.87 per point. You are using 136 points so the "cost" of the reservations made using those points for 2010 would be $7.12 times 136 = $968.32 .

Sounds like a pretty good deal for 8 nights - about $121.04 per night - and no room tax either !

 

[RobDoc]

...
Now, I decide to stay at Beach Club Villas in a studio for a Saturday night through Monday night (3 nights). The point chart shows that will cost me 46 points, which I can do through banking and borrowing.

So I take 46 points and multiply that by my $7.25 per point cost and I reach a cost of $333.50

Divide by 3 nights and I get a cost of $111.17 per night for the room.

Does this sound right to everyone? Yes, in future years, I have to increase my dues cost which will up my total per point per night cost. But this should be accurate for 2010.

Robert

That sounds pretty close. If you are using banked or borrowed points, the maintenance fees may vary a little - since you likely paid lower fees for the banked points and will pay higher fees on the borrowed points - but the basic premise looks good.

 

[eeyoresmom]

WOW...thank you! Not bad for Spring break at a Deluxe resort (weekends included!!!)

 

[skierrob]

Not bad as long as you realize that in order to attain this cost per night you have to commit to use EVERY point, EVERY year of your membership. IE... if you bank 7 points one year and then don't use them the next year and they "disappear", your cost per night for every stay you ever make just went up.

Make sense?

Robert

 

[lugnut33]

So, using that my THV stays will be about $251 per night. That's not bad considering it's a 3 bedroom villa.

 

[eeyoresmom]

Using up all my points has never been an issue

 

[Donna M]

I love looking at the rack rate and adding up how much I could have spent on the vacation. Some vacations would have cost $11,000 since we had two 2bd units. We never would have spent that.

 

[KevinT]

The only thing to add to skierrob's cost would potentially be the average time cost of the money for the time you don't have it in your hands to invest in other things. Since you are already taking into account 1/32 of the purchase price each year, the average money you won't have over the 32 years is half of the purchase price (all at the beginning and none at the end). So you can roughly take 6 percent (or whatever potential investment return you would like to use) times half of the purchase price for the average annual loss of investment potential. Divide by the number of points to get lost investment income per point and add that to the number skierrob gave. I haven't done it for his example but I believe it generally gets the cost per point in the $9-10 range which makes sense with a lot of people "renting" points at $10.

Does this sound like a reasonable thing to add to everyone else?

 

[y2khardtop]

I've rented out enough points to pay for my original purchase, and since we joined early (95??) and got free tickets for several years, my cost would likely be much lower.

Just running some quick numbers, we average around $80/night for a 1-bedroom unit over 50 years, since we joined early and only paid around $10k for 220 points.