Small Contracts

[flyerron]

Buying small contracts to get the benefits may not make sense unless you travel with a lot of folks & they are on the deed. The most sense is to bite the bullet & buy a contract that allows you to use it for your stays. The break even point is somewhere around 7 or 8 vacations. Do the math & see if makes sense. Taks out a home equity loan & the interest is tax deductable & you will get a better interest rate. Sometimes going into debt can be a good thing for several reasons.

 

[johde]

I should have been a little bit clearer. There are many reason for people to own small contracts. In fact, I own 60 OKW point. For me, that is all I need. In fact, it's probably a few points to many. I had originally wanted 40 or 50 points but when this contract came up I jumped. My comments were related to people buying 25 points primarily or exclusively for the annual pass discounts. You said it yourself, the annual pass discount doesn't really mean anything for you. It doesn't mean that much for me either.

I tend to travel either in September or December (I teach college and those are my long breaks between quarters). Only in the situation when I have a December trip planned and I know I'm going again in September might an annual pass work out for me. I am much more likely to go with the 10 day MYW with all the bells and whistles when I need more tickets. I use about 3 days per visit to the themeparks and 1 day to the water parks. So, a 10 day ticket will last 3 or 4 trips.

 

[t-beri]

No yeah I agree, the ann. pass discount isn't really a perk at all. Certainly not one worth considering buying in for.

And I just wanted to say congratulations on those 80 pounds that is MIRACULOUS!

 

[Caskbill]

If someone purchases a small 25 point contract (available resale) just to get the perks, don't forget that the rest of us are subsidizing that owner.

I doubt much that the dues on just 25 points pays for all the annual administrative costs of maintaining that contract.

Since the smallest original contract ever available from Disney was 150 points minimum, then it seems that all the other perks should only be available to members who own at least 150 points total. I'd rather see that than making the minimum add-on be higher.

I don't like the idea of a sliding scale. A minum threshold would work fine. They could make those with less than 150 points 'members', and those with more as 'gold members' or something. And make perks available at the 'gold' level.

 

[Dean]

If someone purchases a small 25 point contract (available resale) just to get the perks, don't forget that the rest of us are subsidizing that owner.

I doubt much that the dues on just 25 points pays for all the annual administrative costs of maintaining that contract.

Since the smallest original contract ever available from Disney was 150 points minimum, then it seems that all the other perks should only be available to members who own at least 150 points total. I'd rather see that than making the minimum add-on be higher.

I don't like the idea of a sliding scale. A minum threshold would work fine. They could make those with less than 150 points 'members', and those with more as 'gold members' or something. And make perks available at the 'gold' level.

Likely a more appropriate threshold would be like many other timeshares do. Those that bought directly would get the perks and those that didn't wouldn't. Truthfully, I doubt there's really any cost to the perks other than some minimal admin time/personell to deal with it. The real issue and cost is the management of the contract itself. All DVC has to do is to buy back all contracts that would not be an add on of less than 150 and both problems are solved.

 

[Caskbill]

Likely a more appropriate threshold would be like many other timeshares do. Those that bought directly would get the perks and those that didn't wouldn't. Truthfully, I doubt there's really any cost to the perks other than some minimal admin time/personell to deal with it. The real issue and cost is the management of the contract itself. All DVC has to do is to buy back all contracts that would not be an add on of less than 150 and both problems are solved.

This wouldn't work. What about the owner who bought a 25 point contract a year ago, and doesn't sell. Just keeps it for the next 30 years, and getting all the perks and discounts that go with it, yet racking up the administrative costs that his dues don't cover.

As for buying back, what happens when the public learns that Disney is buying back all smaller contracts such as 25 point ones via ROFR. Does the seller get a friend to offer them $200/point, knowing Disney will then have to pay that amount? Disney won't, so any contracts offered above a certain threshold sale amount still won't be ROTF'd by Disney.

I know our Marriott is like you said, those who buy direct from Marriott, and those who don't. But a lot of that is because of the extremely large price difference between buying direct or buying resale. Disney on the other hand, via ROFR, is keeping resale prices fairly close to Disney prices. I can buy Marriott resale for less than half the cost of direct. No one is going to get DVC for half the cost of direct. So in this case, if someone bought 300 points resale, qualify them at 'gold' status and they get the perks.

Treat it more like the airlines, or car rental agencies. They have different levels. Disney could simply have two levels, perks or no perks. Simple enough.

 

[Dean]

This wouldn't work. What about the owner who bought a 25 point contract a year ago, and doesn't sell. Just keeps it for the next 30 years, and getting all the perks and discounts that go with it, yet racking up the administrative costs that his dues don't cover.

As for buying back, what happens when the public learns that Disney is buying back all smaller contracts such as 25 point ones via ROFR. Does the seller get a friend to offer them $200/point, knowing Disney will then have to pay that amount? Disney won't, so any contracts offered above a certain threshold sale amount still won't be ROTF'd by Disney.

I know our Marriott is like you said, those who buy direct from Marriott, and those who don't. But a lot of that is because of the extremely large price difference between buying direct or buying resale. Disney on the other hand, via ROFR, is keeping resale prices fairly close to Disney prices. I can buy Marriott resale for less than half the cost of direct. No one is going to get DVC for half the cost of direct. So in this case, if someone bought 300 points resale, qualify them at 'gold' status and they get the perks.

Treat it more like the airlines, or car rental agencies. They have different levels. Disney could simply have two levels, perks or no perks. Simple enough.

Actually it would work fine from Disney's standpoint. Some might complain if they made it retroactive but is certainly more fair than drawing the line based on a number of points, otherwise why not give those with more points, greater benefits across the board as Fairfield, Bluegreen and others do. Maybe earlier booking or larger discounts, even the ability to use points to pay dues, tickets, DDP, etc.

Given the current application the scenario you quote (owning small contracts to have perks) is exactly what some people are doing now, and that will include myself in a couple of years most likely. As for other companies, Marriott makes the distinction between points and no point options, no other difference. Others are far more aggressive, using it as a sales tool with only those who buy directly receiving the benefits. I know one that restricts you from selling resale to a current member, they just won't do the transfer. Disney could always reinstitute the transfer fee.

Let me be clear, I don't think DVC will do anything with this other than bat it around in meetings from time to time. While I do believe there is a cost difference in terms of admin costs, so is there between 150 & 500 points. However, I don't believe there's any real difference in costs when it comes to perks. I guess my point was be careful what you wish for, you, I or others on this BBS might end up on the wrong side of any given decision. Likely the best way to handle this situation if DVC truly wanted to do so would be to have a base fee that applied to everyone then a per point cost on top of that. That is exactly how a couple of other companies handle this situation and is likely the most fair one if a change is to be made. It would likely increase the costs for those owning less than 200-300 points and decrease the costs for those owning more.

 

[t-beri]

I am not actually a dvc owner (soon ) so forgive my ignorance but I really don't see how owning 25 points for the sake of benefits is worth it. Really, are there some BIG benefits outside of the resort stays that I'm missing, I really thought they weren't much to sneeze at myself. And seeing as I'm looking forward to owning soon I would love to know if there is something I'm missing. You can PM me if it has no bearing on this thread.
...t.

 

[Dean]

I am not actually a dvc owner (soon ) so forgive my ignorance but I really don't see how owning 25 points for the sake of benefits is worth it. Really, are there some BIG benefits outside of the resort stays that I'm missing, I really thought they weren't much to sneeze at myself. And seeing as I'm looking forward to owning soon I would love to know if there is something I'm missing. You can PM me if it has no bearing on this thread.
...t.

It isn't for many but is for some situations. Consider several scenarios where it MIGHT be worth it.

• Say you have a large family (? 10 in 3 family units) and go yearly as a group for 2 weeks. You buy 25 points and put all adults from the 3 family units on the deed so everyone gets the benefit. You then time your trips so you get 2 years (4 weeks) of PAP's at a savings of $125 per. After 5-6 years you've paid for DVC even if you let the points expire each year.
• Similar Scenario but you stay off property or do the snow bird thing and get the AP for parking in addition.
• I know several people that stay off property and use points for a studio for a night her and there even while they have a unit elsewhere. Say you're staying off site for 2 weeks and you book 3 individual but separate nights at BCV in a studio and you also get the DDP for those 3 nights. You get to park at the resort, have the room for a respit, use the pool, use the DDP at a cost of about $300 for the 3 nights.
• Many in the general area can use a small amount of points for a day or two here and there as well.
• Some also use a small amount of points for 2-3 days tacked on to an off property condo or timeshare stay.
• For those going every 2-3 years and only needing a studio, 25 points can really be enough.

There really are a number of scenarios where it can work well for those willing to go to the trouble, but it's not for everyone.