OTU Points Cost Increase

[nlenguyen]

I have bought almost 24 points each year. When I look to see how much people were renting the points out for online $19 did not seem too bad and I had the chance to change my reservation around if I needed to

 

[Nursemanit]

This will hopefully provide incentive to owners to increase rental prices - they need to be in the 23 - 25 per point range.

Rental sites should up the reimbursement to 20/18 from 18/16.

 

[mickeymom629]

We have bought them before and will for the next trip, most likely. I thought they have been reasonably priced and still think $22 isn't too bad. Hopefully that will be the price for quite a while, though. Would hate to see that increase each year.

 

[vacay77]

I never get the good emails from DVC like previews and the park events, but when It comes to Money, Boom, I'm top of that mailing list!

Same!! . I received the point increase email, too - but not the fun emails.

 

[hhisc16]

We purchase OTU points each year due to small contracts. I wish they would have at least given a little time for warning.

 

[ZerasPride]

We received the email this morning. I can't say I am surprised the price for these points has gone up. We have used them before and will in the future.

 

[mattburmeister]

We received the email this morning. I can't say I am surprised the price for these points has gone up. We have used them before and will in the future.

As maintenance fees go up it's not a surprise the OTU points did too.

 

[ZerasPride]

As maintenance fees go up it's not a surprise the OTU points did too.

Good point!

 

[CarolynFH]

As maintenance fees go up it's not a surprise the OTU points did too.

There’s been speculation in the past that the 24-point limit on OTUP is because the smallest direct add-on someone could buy has been 25 points, and they want to encourage members to add on, not buy OTUP. So I wonder whether the price increase for OTUP relates to the rising prices of direct points, so that members who buy OTUP frequently (that’s not us!) start thinking more about adding on.

FYI DVC doesn’t pay dues on points it owns, so increasing MFs wouldn’t affect them like it affects us.

 

[BaybeeYoda]

OTUP can be purchased only by calling MS while making an actual reservation, and they are only good for the use year that reservation falls into. To buy them “for the next year” would involve making a fake reservation with MS, then, after getting off the phone with MS, canceling that reservation and applying it to another reservation. A bit too convoluted to use routinely to stock up on points for next year!

Ahh ok didn’t know that. I’ve never had

 

[RanDIZ]

Nobody should be surprised. Disney is the King of raising prices on everything!

 

[mom2missmous]

We received the email this morning. I can't say I am surprised the price for these points has gone up. We have used them before and will in the future.

We almost had to use some this fall, but at last minute found a room that used up the EXACT number of 2022 points we needed to use or lose by end of Sept! Of course, on top of the increase in cost of points you have to add in the cost of taxes we have to pay on buying those points!

 

[mattburmeister]

There’s been speculation in the past that the 24-point limit on OTUP is because the smallest direct add-on someone could buy has been 25 points, and they want to encourage members to add on, not buy OTUP. So I wonder whether the price increase for OTUP relates to the rising prices of direct points, so that members who buy OTUP frequently (that’s not us!) start thinking more about adding on.

FYI DVC doesn’t pay dues on points it owns, so increasing MFs wouldn’t affect them like it affects us.

Had no idea DVC didn't pay dues. Guess I shouldn't be surprised lol.

 

[karen4546]

The info is interesting and good to know. I wonder how many people actually find a need to purchase those points..... We've never actually bought them. What were they previously, around $18 or so?

For those of us who only have a small amount of points, (125 direct), the ability to add a night or go with a 1 bedroom was simple a phone call away.

We have purchased OTU points on three occasions so far. We bought them @ $19/pt.

 

[Aela]

Last month I bought all my yearly one time use points to rent to a friend who needed a DVC rental at Hilton Head, I’m glad I bought them when I did!

 

[RoseGold]

Love that zero day notice. Seems on brand. More timeshare-y every day, DVC.

 

[EYL]

FYI DVC doesn’t pay dues on points it owns, so increasing MFs wouldn’t affect them like it affects us.

Not in the traditional manner, but the dues are accounted for with DVC-owned points, right? Meaning, if the annual cost is $100, it's divided by 100% of the points (including DVC owned) to determine dues/point? Or is it only divided by 98% (excluding what DVC owns)? I know I'm not asking this question correctly (my apologies!), but I wanted to know if we're paying for DVC's share in addition to ours, or we are paying a "fair share."

 

[Sandisw]

This will hopefully provide incentive to owners to increase rental prices - they need to be in the 23 - 25 per point range.

Rental sites should up the reimbursement to 20/18 from 18/16.

But rentals are for non DVC members and have to be competitive against the cash rates. Not sure I see the correlation between OTU points, which are for owners to supplement when they are short.

 

[Sandisw]

Not in the traditional manner, but the dues are accounted for with DVC-owned points, right? Meaning, if the annual cost is $100, it's divided by 100% of the points (including DVC owned) to determine dues/point? Or is it only divided by 98% (excluding what DVC owns)? I know I'm not asking this question correctly (my apologies!), but I wanted to know if we're paying for DVC's share in addition to ours, or we are paying a "fair share."

DVD does not pay the operating costs on the points that they own but agree to cover the shortfall if the estimate they provide us in December is not accurate.

So, if they are charging us $8/pt to operate to cover the cost of the rooms, and actual costs are $9/pt, DVD eats the rest. From my understanding, the points they own are not included in the calculations...though it has been years since I inquired about it....

That means if they ROFR points, they will not be covering the MF's for that contract. Obviously, since those points would have been included in the original figure for the year since it was privately owned, , it could create a shortfall, and therefore, DVD ends up paying for it anyway.

But, since they agree to guarantee their estimate every year, my guess is they make out pretty good.

 

[BeachClub2014]

Well, at least we have a new topic to discuss and can move beyond the rancorous debate over commercial renting and speculative reservations that's been the rage for the last few days. Whew! Thank you, DVC!