Rack Rates Sure Make You Appreciate DVC

[WolfpackFan]

I've been kind of thinking about a WDW trip March 2006 (to celebrate my retirement). Because there are so many other things we have planned for our points, we won't have enough points to stay at VWL for the entire week so I was looking at some of the rack rates thinking I might would pay cash for 3 nights. Wow!! I couldn't believe the rack rate costs for BCV or really any of the Deluxe resorts. It immediately made me so glad we joined DVC when we did. I think what I'll do for the 3 nights I don't use points we'll stay at an intermediate (we've always liked POR).

 

[CarolMN]

Originally posted by WolfpackFan
...(snip).....so I was looking at some of the rack rates thinking I might would pay cash for 3 nights. Wow!! I couldn't believe the rack rate costs for BCV or really any of the Deluxe resorts. It immediately made me so glad we joined DVC when we did. I.............

How true! DVC also eliminates the incessant worrying and calling to get a discount. IMHO, that's a very under reported perk of DVC.

I don't even think about rack rates anymore unless one of my "smart-alec" brothers makes a comment about "timeshares". The subject quickly changes after I sweetly mention that the "DVC timeshare" allows me to get a week in a 2 bedroom at BWV for roughly $xxx (cost of dues), when the nightly rack rate for the same room is $xxxxxxxx. That's when I really love those rack rates!

 

[MarkRG]

Perk? Much more than just a perk.

This is the very foundation of what DVC is. And time has moved forward enough now to show its real value.

We are guaranteed a stay in a resort that is better than even the deluxe resorts, for a price that will not increase at all for the life of the contract.

THAT is the exact reason we bought in. And that reason will gain nothing but more strength now as time moves forward.

 

[DebbieB]

I keep a spreadsheet of our trips and the rack rates associated with each stay. In 8 stays (2 x 4 years), I surpassed my initial purchase price when compared to rack rates. I bought BWV in 1999 at $65 per point.

 

[rsschneck]

I was just thinking the very same thing last night!

Checked on the new rack rates for 2005 from Mary's sight. We are going to do a BIG family gathering December of 2005. We will need a studio and a Grand Villa. The rack rate plus 11.5% tax came to over $9,800 for 5 nights. That just paid for our 100 point add on at SSR. Plus, we have another 50 years to enjoy those SSR points!

We now have 400 points. I would LOVE more, but DH says HE thinks we have enough. Did I mention this was HIS side of the family for the BIG family gathering

I do believe it will take less than 4-5 years for our points to pay for themselves. Gotta LOVE, LOVE, LOVE DVC!

 

[Mickmse2002]

Originally posted by MarkRG
Perk? Much more than just a perk.

This is the very foundation of what DVC is. And time has moved forward enough now to show its real value.

I agree wholeheartedly with this.

Originally posted by MarkRG

We are guaranteed a stay in a resort that is better than even the deluxe resorts, for a price that will not increase at all for the life of the contract.

This isn't entirely true. Our dues do tend to go up each year thus resulting in a higher overall price.

 

[RoyalCanadian]

I'm glad that I'm not the only one who calculates the DVC value using rack rates -- it's how we have "justified" the initial cost to family and friends.
Without a doubt, the "payback" time will be different for each and every DVC family based upon their own DVC habits, but I'm estimating that our DVC initial cost and annual dues will be easily matched by rack rate values after about 4 stays.
We haven't even been home once yet, but I'm already envisioning the smiles on my face and DW's when we start having those "free" Disney vacations -- and I can even imagine the smiles on the faces of DVCers who bought their home points long ago.
Having these rack rates to look as is pure gold!!

 

[FLYNZ4]

I have a hard time justifying my DVC membership based on rack rate. The reason... I would never pay rack rate at WDW. I feel like I would only be trying to fool myself to make such a rationalization.

On the other hand... I paid cash for my membership... and I am not even going to try to figure out the "cost" of that part of the investment... except that if I hold it forever... it will go to zero... so in some respects, I am willing to lose the upfront fees completely. On the other hand... if I sell it in about 10-15 years... it will probably go up in value and if I am still interested in DVC, I can "upgrade" to the latest resort that DVC is offering (assuming things continue like they have in the past).

Between now and then... I rationalize my DVC membership based on upgraded accomidations, at the annual cost of my MFs. If I did not have DVC... I would probably stay at the deluxe resorts using AP specials... or in a condo just outside of WDW which cost almost nothing (especially compared to the cost of DVC or even hotel AP rates).

/Jim

 

[deerh]

By:flynz2:I have a hard time justifying my DVC membership based on rack rate. The reason... I would never pay rack rate at WDW. I feel like I would only be trying to fool myself to make such a rationalization.

Not necessarily true! TRY to find a discount rate at BWV or BClub and it will not be there. I have tried with AAA, etc. UNLESS you buy a package deal (tickets included), or have a AP to WDW, you will not find a deal with these.
Now, Pop Century, etc, YEAH, deals abound. The deluxe resorts we stay in-few and far between at least in my dealings.

And yes, I count my estimates on rack rate with BWV, and have spent $10000 since 1999 on my stays, and also a cruise, so I have "paid for" my DVC in reality....

Forgot to count this year: 5 nts at a 2 BR:705x5=3500+tax=4000, and 5 nts at HHI=1500, so this year alone:$5500 in accomodations! Better than saving up the money and going!
Just my .02 worth.....
DeerH

 

[helenabear]

It's funny, I didn't calculate DVC on rack rate either, but more of what I spent per year in room going there (added up to be a heck of a lot more than I thought initially). However what nudged me over the edge was the total lack of discounted rates. I had friends be forced to pick only one resort this spring/summer because the AP rates were "sold out" for their first & even 2nd choice resort. I tried to book my usual December trip to the Swan and the AP rate was not available and neither was the AAA rate I always use... I looked in March and that's when I normally do book. Never had a problem. It hit me then, rates will be there, but not easy to get.

I do remember when you had to try really hard to get an AP rate and AAA only saved you about 10%... and I am talking not 5 years ago this was harder to get... you had to work and plan to get the excellent rates. I do believe we will get to that point again and then my DVC purchase will be a HUGE bargain. But even comparing what I spent vs what I will for DVC, I will be doing better by the 4th year.

 

[RoyalCanadian]

We were incredibly fortunate to have the cash sitting there when DVC came knocking in January. True enough -- it came at a tremendous price in the form of an inheritance after my mother's death last year. She had managed to parlay a small investment realized from the sale of our family cottage in 1984 into a sizeable nest egg through shrewd investment advice and being in the market at the exact right time and sticking with the markets when the going got tough.

That inheritance has given us tremendous freedom through the discharge of our mortgage and the purchase of 150 SSR points. When we happily discharged our mortgage (found out the banks don't like that!) we said, "Thanks mom." When we hear that first "Welcome Home!" I'm going to say, "Thanks mom." But the biggest "Thanks" will come when we get to see the smiles on DD4's face (my mom's only grandchild) when she sees Mickey for the first time and has brekkie with the Princesses at Cindy's or the Princess Storybook Breakfast.

Yes -- it can be a bit of a stretch to use the rack rates to justify the expense. The biggest justification will come through the smiles on my daughter's face and the knowledge that she can smile for the next 50 years at Disney.

Giving thanks in Canada,
Neil

 

[JimC]

I used DC discounts, then AP codes at deluxe than moderates to compare against DVC. I wanted to do the analysis making it harder for DVC to make financial sense. I initially thought the deal would become marginalized. What can I say other than it passed muster each time, although it takes a few extra trips at a discounted moderate resort comparison.

So then it was real easy, it made sense financially, we could afford it, we love Disney, the accommodations would be super. There was nothing left but to forge ahead.

 

[bom_noite]

Though I had been looking at DVC for 8 years, we finally made the plunge following a small windfall following my fathers death. (though we could have probably swung it on our own).

We have been in for 2 years and have made 3 DVC trips. The joy on my kids faces is unbelievable. I am able to remind them that we have Grandpa to thank for this - and - they say "yep!".

I am glad that while the inheritence was small that I have something to show for it.

 

[FLYNZ4]

Originally posted by deerh
Not necessarily true! TRY to find a discount rate at BWV or BClub and it will not be there. I have tried with AAA, etc. UNLESS you buy a package deal (tickets included), or have a AP to WDW, you will not find a deal with these.
Now, Pop Century, etc, YEAH, deals abound. The deluxe resorts we stay in-few and far between at least in my dealings.

And yes, I count my estimates on rack rate with BWV, and have spent $10000 since 1999 on my stays, and also a cruise, so I have "paid for" my DVC in reality....

Forgot to count this year: 5 nts at a 2 BR:705x5=3500+tax=4000, and 5 nts at HHI=1500, so this year alone:$5500 in accomodations! Better than saving up the money and going!
Just my .02 worth.....
DeerH

DeerH,

The reason that I would not use the rack rates... is because I would choose to not pay the rack rates... and if no discounts were available... then I would either stay someplace else, or I would not visit WDW at that particular time. For me... it is meaningless to justify a 2BR against a $705/night rate... because I would simply not spend the $705... it just isn't worth it to me.

I looked at my charges for last year. We stayed in WL hotel over July 4th weekend, woodland view for $139/night. We also had a reservation for the Coronado Springs resort for $74/night... but we canceled that reservation in favor of WL. In September, Debbie and I returned, and used the labor day/AP special at the Swan hotel and got a lagoon view premium room for $99/night. In the past... the AP specials used to be much better than they are today... and I would typically get a lagoon view room at the Poly or Y&BC for $99/night (those days seem to be gone now).

If no rooms are available inside of WDW on special... there are dozens of condos that I can exchange on II for a ridiculously low price. My total cost for 7 nights in a 2BR Marriott is less than $300 per week (not per night) and since there is such a glut of condos in Orlando... I could always get an exchange into the WDW area. That $300 would include the cost of my MF's at my home resort... plus the II exchange fees. However... I would not be on WDW property... and I do value that.

My decision to join DVC has to do with paying a reasonable amount for accommodations that suit my interests. I like the space of a full condo, and I like the convenience and atmosphere of staying on Disney property. I am happy to justify my membership by comparing my costs against a more typical $150/night stay... knowing that my accommodations are much nicer than I would get with a typical room discounted to $150.

/Jim