Should there be/is there price inflation for DVC rentals?

[samsp99]

The old guidance used to be for rentals around $20/pt. But both annual dues and contract prices go up each year. Is there a similar pressure on the DVC point rentals to go up?

 

[AstroBlasters]

The old guidance used to be for rentals around $20/pt. But both annual dues and contract prices go up each year. Is there a similar pressure on the DVC point rentals to go up?

IMO, it’s more closely tied to the cash cost of hotels. A renter doesn’t care about our input costs, they are just trying to save enough money over cash prices to be worth the risk of making a large upfront payment that may not have a cancelation policy.

Cash prices definitely go up & down based on inflation and the business cycle.

 

[808blessing]

I have thought for a long time there should be price inflation to align with real costs, especially increase high demand dvc.Dues and hotel stays are going up up up.

 

[Brian Noble]

Rental rates have gone up over the years, though there have been some periods where the prevailing rate decreases for a short while. Have they kept pace with inflation? I can't say.

At the end of the day, the rates is determined by how many owners are willing to rent out their points at some particular price, and how many renters are interested at that price.

 

[Brian Noble]

For grins, I went back to look at what MouseSavers thinks was the "going rate" for point rentals. The earliest snapshot of the discussion in the Wayback Machine is August of 2012. At that time MouseSavers quoted $11pp. Today, that same page suggests the rate is $23. That is probably not right, but let's assume they were wrong by a proportional amount in 2012.

US inflation during that time suggests that something that was $11 in 2012 should be about $15.56 today. So, it looks like rental rates have risen faster than inflation---even if you assume the going rate today s $20. This is not particularly surprising. Dues have also risen slightly faster than inflation, as have rack rental rates. Throw in the huge volume of advertising that a few of the larger brokers have done over the past ten years+ to get the word out on DVC rentals as an option for the infrequent guest, and Bob's Your Uncle.

Whether Iger or Chapek is up to the reader to determine.