I agree with EROS on this. I know that I am a newbie here, but I think I grasp "numbers" pretty good.
I've been reading the posts over the past month and in many of the threads everyone is pointing out that DVC should not be looked at as an investment vehicle, you are prepaying your vacations, locking in todays prices, etc., etc. Yet, in other threads, there is a predominent "value" assigned to the points of $10 each. Wherein, the way I look at it, the current "value" of a point bought
today at BCV is $5.69 ($75 divided by 39 years is $1.92, plus $3.77 in dues per point). Many of you bought your points for even less than $75 and will have received more than 39 years of use from them, so your "value" per point is even less. Just because non-DVCers are willing to rent them for $10, that does not mean that Disney values them at the price.
I look at it like a collectible coin, for example, the statehood quarters. A regular statehood quarter, that anyone could receive today as change, might be valued at 50 cents or more to a collector (depending on certain factors, of course). Yet to a non-collector, to a merchant or to a bank or even the Mint itself, the value is only 25 cents, no more no less.
So back to
DCL on points. According to the numbers, you are actually getting a discount when booking using points. From the Disney website, the cost of a category 5 stateroom for two adults and two children (12 and under), setting sail on the Magic on 07/19/03 (western), is a whooping $6,011.08 (under their "Early Booking Savings" nonetheless). The total DVC points for the same booking is 740 point (260 per adult and 110 per child). The total current dollar value of the points would be $4,210.60 (740 X $5.69). This is a savings of about 30% off the cash price! The savings on a cruise on 04/19/03 (eastern) is about 24%. Let me tell you, when I was pricing a cruise for this past Jan, I couldn't even
look at the pricing for a
Disney cruise.
I think the real debate here is not "
points on a cruise too high?" but rather,
cost of a Disney cruise too high? My answer is yes! As someone posted earlier, Disney rarely offers discounts on DCL. I have never been on a Disney Cruise so I don't know what they do differently from other cruise lines or what better amenities or facilities they have compared to others. But I know that my recent cruise with
Royal Caribbean was about $1700 less than a DCL during the same week in similar accomodations (two twins converted to a queen, full (queen?) sized sofabed, private balcony, etc.). After 9/11, Royal even reduced my reservation by another $500! This was on the Voyager class ship, the one with the rock wall, skating rink, mini golf, etc. I will definately have to go on DCL sometime or do more research to see what other people's $6,000+ is getting them.
Even the "cost" of a hotel room is discounted by using points. Yesterday I booked part of my complimentary stay incentive. I chose three nights at the Polynesian (I need to discover the allure of this resort for myself). However I will be at WDW for four nights. Rack rate for Oct (Regular season) is $334 per night PLUS the 11% tax ($371). The Disney Club rate, the only discount that I have available to me right now, is $283, with the tax it is $314. If I were to use 35 DVC points, the room rate works out to be $199, based on my current point cost. That's a discount of over 45%.
Those 35 points cost me $199 no matter which way you look at it. Yet I am going to pay $314 for that additional hotel night. I will do that because I, like that rest of you, have bought those points as part of a bigger commitment with Disney. Converting my money into points gives me more value for my money when using the points within DVC. In the world outside of DVC, points get converted back to cash where one dollar equals one dollar. I am not going to use my points for the Polynesian room because my points have their greatest value when used for the DVC resorts.
Isn't that the whole point of the Disney Vacation Club?
With that said, I am calling it a night. I think I really need that vacation NOW (3 more days, woo hoo!).
