Point renting hurting trade values?

[worldshowcase]

We are brand new to DVC, so forgive us if this has been answered. But why do all DVC pts rent for the same amount at all of the DVC resorts? The cash price through CRO is not the same. Why is the point rental cost the same? For the higher priced cash reservation resorts, shouldn't their DVC point rental also be higher?
We have So much to learn!

 

[Dean]

Originally posted by spiceycat
II cost per point has gone down - because lots of II exchangers want the DVC resort.

Actually many trades went up a lot. It's true that the high demand trades for 1 BR units went down marginally and 2 BR stayed about the same. But off season exchanges for those unit sizes went up a lot and many studio exchanges more than doubled. Plus ANY exchange within 60 days under the old system would cost as little as 55 points including 3 BR and now it's the regular points costs even if in the flexchange window. Plus any 3 BR units under the old system were 2 BR points and now are a lot higher. Overall, the new exchange system is a lot higher for those that understand the system (both old and new).

 

[tjkraz]

Originally posted by worldshowcase
We are brand new to DVC, so forgive us if this has been answered. But why do all DVC pts rent for the same amount at all of the DVC resorts? The cash price through CRO is not the same. Why is the point rental cost the same? For the higher priced cash reservation resorts, shouldn't their DVC point rental also be higher?
We have So much to learn!

Generally speaking, to a renter, a point is a point is a point. The beauty of DVC is that points can be used at any of the resorts.

However, each resort does have its own unique point "costs" for a room. For example, a Two-Bedroom at Old Key West on a weekday in September would cost 22 points. A similar 2B at the Beach Club Villas for the same time period is 30 pts.

That's where you get your differences by resort.

 

[worldshowcase]

OK, now I got it. That is logical. Thank you for the explanation.

 

[spiceycat]

Dean before II went to this new system - I asked member service twice about using points from Adventure Season - I got told that only Choice, Dream and Magic could be exchanged

using OKW because most of the time it is the lower points

1 - bedoom - OKW

choice - 172
dream - 196
magic - 218

the new II 1-bedroom
Low - 123
mid - 144
high - 160

the new system is a better deal.

2-bedroom OKW
choice 232
dream - 263
magic - 296

the new II - 2 bedroom
low - 207
mid - 252
high - 270

I don't see how you kept saying the old system was better.

I know that II takes studio - but DVC makes sure you understand that the agreement with II is for 1 or 2 bedroom - so for a studio the point cost can vary. and are generally much higher.

 

[Dean]

Originally posted by spiceycat
Dean before II went to this new system - I asked member service twice about using points from Adventure Season - I got told that only Choice, Dream and Magic could be exchanged

using OKW because most of the time it is the lower points

1 - bedoom - OKW

choice - 172
dream - 196
magic - 218

the new II 1-bedroom
Low - 123
mid - 144
high - 160

the new system is a better deal.

2-bedroom OKW
choice 232
dream - 263
magic - 296

the new II - 2 bedroom
low - 207
mid - 252
high - 270

I don't see how you kept saying the old system was better.

I know that II takes studio - but DVC makes sure you understand that the agreement with II is for 1 or 2 bedroom - so for a studio the point cost can vary. and are generally much higher.

Pat, the reason you don't see the old system as being better is because you got faulty info from DVC. Almost every trade that is Mid or Low now was adventure season before. That was confirmed a number of times by DVC as well as by people who actually got trades to places like HI, Aruba and Cancun. Reports of those for 55 points were common place prior to the change. Here are some examples. List order is studio/1 BR/2 BR/3 BR/less than 61 days.

Aruba High Season (weeks 51-16)
Old 98/196/263/263/55
New 134/160/270/349/same as more than 60 days

Aruba Low Season (Mid for DVC)
Old 55/104/133/133/55
New 123/144/252/317/same as more than 60 days

Cancun almost identical to Aruba. HI same as Aruba but with a relatively short lower season. Of course with the old system you had to have a unit available that would fit the exchange parameters and the points being used, which meant if it was a low season exchange and either no HH studio was available or your points could not reserve that, the costs would be higher because home resort priorities applied. Same for HIGH season, if Dream was not available, you might have to reserve Magic. Actually some of the exchanges were actually Choice even for high season so the numbers would be even more in favor of the old system in some cases. The bottom line is that high season 1 BR are better and 2 BR high season about the same under the new system assuming you're not in the flexchange window. Everything else is more expensive but how much depends on specifics.

I'm not sure I read your note correctly. There actually is a grid for studios and 3 BR units, they simply don't publish it on the web or in the Planner since most exchanges are for 1 and 2 BR units. But the points are set for those unit sizes just like for the 1 and 2 BR.

 

[jmminarik]

Originally posted by Tagrel

There is a huge percentage of WDW guests that pay the big bucks and don't know any better... And Disney loves each and every one of them!

There are always going to be people who do not do their due diligence and there is a $ cost to them. That's humanity for you. In the case of WDW, it's a mixed bag...it helps fund the Eisner bonus fund, but it also means some folks wind up at WDW with no clue and miss 3/4 of the experience because they have no clue and they go home with the experince that WDW is just an expensive, crowded and hot amusement park. I'm sure there are people who spend thousands of dollars to go to London and don't bother with a guidebook either...or go to Washington and only see the Air and Space museum because they don't know what else the Smithsonian offers.

To the OP, your hypothesis is a good one, but probably can't be proven theory unless we get the numbers somehow. I'd suspect there's a little truth in it...lots of things contribute to the way costs are allocated but certainly WDW being able to recoup the costs of our nonDVC point uses is a major one of them.

Cheers,
Joe

 

[d-r]

tjkraz - that was the point I was trying to make here, but you probably made it better than me

http://www.disboards.com/showthread.php?s=&threadid=621761

It doesn't really matter that the dvc rooms are a "better deal" than non-dvc rooms, or that they are supposed to be, or that we didn't buy our points to use at non-dvc rooms, that's not the point. Logically, the amount of points shouldn't increase each year because the cash value of the dvc rooms increases at the same rate as the cash value of the non-dvc rooms. It's just that simple, and dvc is under-rating the value of the points, imho.

 

[DrTomorrow]

Originally posted by jmminarik
There are always going to be people who do not do their due diligence and there is a $ cost to them.

I bet that a lot of them are hoping for a vacation that will be break from doing due diligence ::grin::

 

[spiceycat]

so the 196 points charge I was forced to made by DVC for a Las Vegas - was not right????

I asked for the best deal?????

it was Sept???

Did I get had by DVC?????

I did it for a wedding present for a friend - it was a last minute trip - but if others were getting for 55 points I really feel that I got had !!!!

It was not in my opinion a very great trade - my friends like it - but they are not used to staying in timeshares - the pictures I saw were not very good.....

 

[Dean]

Originally posted by spiceycat
so the 196 points charge I was forced to made by DVC for a Las Vegas - was not right????

I asked for the best deal?????

it was Sept???

Did I get had by DVC?????

I did it for a wedding present for a friend - it was a last minute trip - but if others were getting for 55 points I really feel that I got had !!!!

It was not in my opinion a very great trade - my friends like it - but they are not used to staying in timeshares - the pictures I saw were not very good.....

My guess is that nothing was available for HH adventure season that you could have used your points for. If it was under the old system and at 60 days or less, maybe you did get taken advantage of. It should have been for studio points for under 61 days. At 61 days or over, it would likely have been high season points, under the old system that was usually Dream but at times choice. Whether it would have been 55 points depends on whether a HH adventure studio was available. DVC seemed to have some flexibility in what they actually charged you. I talked to DVC about this several times including a conference call with the person for II that dealt with DVC and the DVC person in charge of exchanges. And there were a number of reports of Cancun and Aruba for May through early December at 55 & 104 points respectively. As a matter of fact, have another similar conference call coming up, fancy that.

 

[jmminarik]

Originally posted by DrTomorrow
I bet that a lot of them are hoping for a vacation that will be break from doing due diligence ::grin::

I go to all inclusives in Jamaica for those...but at least I learned something about the country before we went. I just can't wrap my mind around how someone could spend thousands of dollars and not do any research into what they're buying.

-Joe