Rental Rates too low?

[Mojomanny]

Well, I have to open this bee's nest.

I have not been on the rental boards for a while and maybe there has been considerable discussion ... anyway ...

This is NOT about raising rental rates or griping about it. This IS a discussion about why you think rates have been stagnated.

It seems to me that rental rates have been stagnated in the $9 to $10 range for the past couple of years. During this same time frame our annual dues have increased roughly 3% per year on average or a total of rought 15-20% overall since 2002. At the same time the resale price of points has increased by almost 25%, nevermind what the Disney Direct prices have done.

Why have rental rates been suppressed?

Do you think there are too many prople looking to rent their points and would rather get $9-10 instead of risking not renting them at $12-14?

Do you think there is not enough people looking to rent points for their vacation?

Are the rental rates close to the cash price and that is holding things back?

Do you think outsiders are not aware of what they could be getting for their dollars (ie they are unaware of the opportunity to rent)

I know renting is should not be intended or designed as a business venture or profit making investment. That being said, has anyone done a breakeven analysis regarding the cost of points to see if the current rental rates even cover true expenses?

I would love to hear your thoughts on why you think the rentals rates have not changed in 3 years or so.


(discussion about the dues increase can be found at http://www.disboards.com/showthread.php?s=&threadid=483351)

(discussion about breakeven analysis can be found at http://www.mouseplanet.com/dtp/dvc/3_Debate/cost_evaluation_comments.htm)

 

[spiceycat]

some people points are about to expiry - those are the ones I have seem for $9 a point.

My costs are lower than yours - OKW brought in 93 - only having to pay the annual fee - so $10 a point is fine. The only time I charged more was for Thanksgiving - I guess I should apologize to the person - I didn't want to sell that reservation - but I did....

You can charge more if you have a hard to get reservation (like my Thanksgiving was).

there are also several people who charge more on
www.redweek.com

My opinon of the $10 a price per point fee - is that this is still what DVC is currently giving DVC member back if they give their first year points back.

When DVC (DVD) increases this amount - then I think the point rental will increase, too.

Also some DVC member will decrease their rental rates if asked.

People are always looking for a bargin - so I think DVC rental will continue for a long time.

 

[DisneyDVClover]

We are new to this board and after reading the rent trade board I would never post my points on here not that we rent often but no way would I take 9 or 10 dollars a point for them. We routinely when renting get between 12-15 a point with no questions asked and we have many people asking for points. Mind you we try and use them all as often as possible we love to go to WDW and the only times we really rent is to cover the cash price for the ctruise as it is not a great deal to transfer points to a cruise reservation.

 

[doubletrouble_vb]

I think the price has been at $10 per point because when people come to the board and see the rental price they match it. It might go up when (or if) Disney raises the give back amount...but they will only need to increase that if people stop turning in their first year points. I thought it was a bad deal at the time I purchased let alone right now. At the same time I rented points out at that price last year.

Next time I'll ask for more and post in more than one spot. $10 per point is a joke...I think it is also the reason why people are grabbing weeks to rent instead of renting points...you can get more money going that route. Of course that punishes everybody who wants to go at popular DVC times so maybe asking for more across the board might be helpful to the population as a whole.

 

[kathleena]

I don't rent my points but have an opinion here.

I bought mine from 2000-2003 while a CM so enjoyed a wonderful discount. Everything cost me under $60pp. Some were under $50pp.

I figure if I ever needed to rent points, it would likely be because I had to cancel close to my use year and couldn't use them.

I would be looking only to recover the annual maintenance fees, plus some additional. I'm thinking the fees plus $4pp is reasonable for me, but I would check the boards, see the "going rate" and then list for the lowest or less than the lowest to be sure I rented them. I would not be at all inclined to consider what the current cost per point is or what other people may have paid for theirs.

Just my opinion.

 

[anniet]

God, I miss Richyams!!!!

 

[Johnnie Fedora]

Don't you know, it's only acceptable for Disney to raise their rental rates 5-8%/year.

From the post counts of many of the point sellers, they appear to only come to the DIS to rent out their points. IMO, $10/point is way to low. Not expecting to get the "Disney amount", but something more that 30-40% the going rate seems fair. The $10 amount allows for easy math, but calculators are easy to use too. Renting out popular times at desired resorts will enable a more fair rental price, but its a shame to have to do that just to obtain a reasonable exchange. If supply and demand is going to continue to dictate a $10/point rate forever and ever, the supply and demand of renting desired times to get a fair rental price will be used by DVCers who want a fair exchange rate.

I'll let my points expire before renting them for $5 each (excluding friends/family). If I'm going to use my points for a charity purpose, I'll rent them $15 each and donate the cash to the Salvation Army.

 

[totalia]

Rates are stagnating due to the loss of tourism suffered by 9/11. Literally some people seem to be scared to travel. Travellers have lowered a great deal in comparison to before 9/11.

 

[Dean]

I don't think the rates are all that stagnant. First, the rates did come down somewhat after 9/11 but have come up again slowly. Even then, the rates offered on the rent/trade board are likely a little low.