Is it true? No point inflation?

[holcomb-mania]

I'm really getting serious about doing DVC, and I was speaking to a nice guy about it on the phone today and he said the point requirements never go up over time like room rates do.

Is this true? 150 pts will get me the same length stay 20 yrs from now as it will today? If so, that's excellent.

WARNING: I will likely be asking many dumb questions over the next few weeks.

 

[Doctor P]

You are not being told a lie, but the statement the guide made needs to be explained more precisely. The total number of points to rent a given type of unit at a given resort for the year cannot increase. However, the points can be reallocated between days of the week and between seasons as long as the total remains unchanged. DVC has only done this once, and, as I understand it, the changes were fairly minor. So, yes, the points requirements are fixed, but it may possibly be true that a week in a given type of unit in a given season might go up, but some other week/season will have to go down to compensate. Frankly, this is something I would not lose sleep over, as I think the chances of it happening are probably pretty slim, and, if it does happen, are unlikely to be drastic changes.

 

[londonderrydisneyfan]

Another thing to keep in mind is that although the number of points needed may not change, the dues will increase over time.

 

[fishermouse]

I'm really getting serious about doing DVC, and I was speaking to a nice guy about it on the phone today and he said the point requirements never go up over time like room rates do.

Is this true? 150 pts will get me the same length stay 20 yrs from now as it will today? If so, that's excellent.

Yes it is true but the points allocation may change, the best example is Easter and Spring break where the dates change so DVC moves points around to compensate for the busy weekends. This is very minor in the scheme of things. they can make other changes but your total points will always get you the same number of rooms. Works great for me because I travel in the "off" season

 

[TheBeast]

It may be more accurate to say the total number of points for a given year are fixed, but can (and do) vary by week of the year. For example, we normally go in the third week of April but this year Easter falls in the third week so points per night are much higher. Easter is probably the holiday that causes the most variation, but hopefully you get the idea. There will always be a week 20 years from now that is the same # of points, but it may not be the same week.

 

[BillPA]

DVC only made 2 changes to the points. One was at OKW back in the mid 90s. And very early in the sales cycle at BWV when they lowered points for standard view rooms.

Not only can the yearly points not change, but the rate of change is limited to 10-15% (I can't recall the exact amout) without the owners approval.

 

[holcomb-mania]

Thanks, guys. That's a great feature, considering at 3% annual inflation rooms could quadruple over the life of my DVC investment (using the rule of 72, costs would double every 24 yrs). Of course, that ignores the effect of supply and demand for rooms at resorts.

 

[DVC-Don]

Yep, love it. Bought enough points (in 2000) to stay one week in a 2 bedroom at VWL in January and the point cost per stay is still the same.

 

[BillPA]

holcomb-mania Thanks, guys. That's a great feature, considering at 3% annual inflation rooms could quadruple over the life of my DVC investment (using the rule of 72, costs would double every 24 yrs). Of course, that ignores the effect of supply and demand for rooms at resorts.

Our first WDW trip was in 1979 at the Poly. The rate was $55 a night.... Now that same room lists at $300+.(445% increase - ave 16.48% per year) My OKW dues were $2.63 in 1993, 13 years later they are $4.24 (61.2% increase - ave 4.7% per year) That is if my math is correct. You can see DVC is a great way to keep cost under control.

 

[mydogdrew]

Note - no inflation protection for non-DVC units (i.e. cruise, other WDW resorts, etc.).

 

[Dean]

Note - no inflation protection for non-DVC units (i.e. cruise, other WDW resorts, etc.).

Or even any guarantee that the programs will be around next year.

 

[Maistre Gracey]

Just remember that over the life of a DVC contract, the annual dues are the most expensive component of DVC.

The annual dues can, and do increase yearly.

MG

 

[fishermouse]

Note - no inflation protection for non-DVC units (i.e. cruise, other WDW resorts, etc.).

While this is true, You are trading based on value not the actual cost when you purchased your points. As long as DVC maintains it's high standards your points should get you the same trade value ten years from now. DVC negotiates trade values with other resorts and hotels world passport trades seem to be the best value. Concierges is sometimes high but the hotels are first rate, I've used it twice and completly satisfied both times..

 

[mydogdrew]

While this is true, You are trading based on value not the actual cost when you purchased your points. As long as DVC maintains it's high standards your points should get you the same trade value ten years from now. DVC negotiates trade values with other resorts and hotels world passport trades seem to be the best value. Concierges is sometimes high but the hotels are first rate, I've used it twice and completly satisfied both times..

The number of points required to secure a concierge reservation might triple over the next 30 years while it will always cost me 12 points a night for a studio. If you view your points as currency (as you should), it will cost more over time to trade out of DVC resorts. There is no inflation protection - the value of your points used at non-DVC resorts will dimish over time (not that these resorts are much of a value even today).

 

[yitbos96bb]

Or even any guarantee that the programs will be around next year.

I would guess that if they do other Deluxe Resort DVCs, the ability to rent rooms with points goes away or goes even higher.

 

[Dean]

I would guess that if they do other Deluxe Resort DVCs, the ability to rent rooms with points goes away or goes even higher.

I'm not sure what you mean. Are you referring to members renting what they own or to the ability of DVC members of the older resorts to use their points at the newer resorts. The former is contractually guaranteed as a right, the latter is unlikely to be a problem but there is that potential. They certainly could escalate the points for a newer resort, most points systems do so as a way to increase costs.

 

[Doctor P]

I'm not sure what you mean. Are you referring to members renting what they own or to the ability of DVC members of the older resorts to use their points at the newer resorts. The former is contractually guaranteed as a right, the latter is unlikely to be a problem but there is that potential. They certainly could escalate the points for a newer resort, most points systems do so as a way to increase costs.

I think that the point that was being made was that if they attach new DVC resorts to existing deluxe resorts, that would decrease the opportunities for using points at other Disney hotels since each of those deluxes would then be removed from availability with points for the non-DVC hotel rooms. The argument being made, I think, is that the reduction in supply could result in further inflation of points in the Disney Collections non-DVC hotel options.

 

[Dean]

I think that the point that was being made was that if they attach new DVC resorts to existing deluxe resorts, that would decrease the opportunities for using points at other Disney hotels since each of those deluxes would then be removed from availability with points for the non-DVC hotel rooms. The argument being made, I think, is that the reduction in supply could result in further inflation of points in the Disney Collections non-DVC hotel options.

DVC has always removed hotels from the DC when there was a DVC there though I see no reason they should. I don't think the points would go any higher from a demand standpoint. DVC says they are working on a zero sum situation where they only charge enough points to break even. And given the way the system works, if less people are getting the DC rooms, it's like the price will go down than up because there would be less units to rent out and therefore, it is more likely those units would actually be rented.