the spread between annual dues and average rental price per point

[KANSAS]

This thread is directed at those with greater experience with DVC, than me.
The average annual dues, seems to be about $4.25 per point.
The average annual rental price per point, seems to be $10.00 per point,
a spread of $5.75 per point

Is this about the same, several years ago, or has the spread, widened or decreased??

 

[CarolMN]

As far back as I can remember knowing about DVC and point rentals (1999), the average going rate for rentals has been $10/point. My theory is that Disney's Magical Beginnings was a major influence on setting that number initially, as that is what it established as the price to "buy back" points for the MB incentive.

Anyway, I don't see the average price going up much until Disney reduces room discounts and raises prices. I think that is starting to happen, though. It will probably take a while before demand for points catches up to the supply, so I don't see a change in the point rental average coming soon.

IMHO, the economy and lingering effects of 9/11 kept prices lower than they might otherwise be. I do see that changing. Other luxury hotels have started to raise rates (according to the WSJ) and air travel seems to be picking up again (although not to the levels it was as yet). JMHO.

I should also mention that I do not rent out my points so my price recollections may not be the most accurate. Will be interested to see what others are thinking.

 

[KANSAS]

Carol MN
are you stating that OKW, annual dues, have gone from I think $2.70 per point, to around $4.00 per point, the last 10 years
but
average rental price per point, has stayed around $10.00 per point?

are you also stating, until DVC, gives you more than $10.00 per point, for MB, this will probably stay the same?

 

[CarolMN]

Originally posted by KANSAS
Carol MN
are you stating that OKW, annual dues, have gone from I think $2.70 per point, to around $4.00 per point, the last 10 years
but
average rental price per point, has stayed around $10.00 per point?

No. I said that as long as I can remember being aware of DVC and the renting of DVC points (since about mid-1999), the average price to rent has been $10/point.

are you also stating, until DVC, gives you more than $10.00 per point, for MB, this will probably stay the same? [/B]

No again. I said that I thought the MB price was a major influence in how that $10 price got started. I think the price will stay the same until Disney starts charging more for their resort hotel rooms and reduces the amount of room discounting it does. IMHO, those who rent points are competing with Disney, not themselves.

 

[bicker]

Indeed. In free-market systems, prices tend towards value. Since many people readily pay up to $11,000 per week for a two bedroom suite at the Yacht Club Resort, it is reasonable to expect anywhere up to $30 per point for an almost identical accommodation at the Beach Club Villas (factoring in extra money for daily maid service). So at $10 per point, it is an utter steal.

 

[spiceycat]

before DVC did their buy back - points rented for $8 a point - before then I think it was $6 a point -

then DVC say they were worth $10 a point - suddenly all the renters agreed.

 

[KANSAS]

spiceyCAT

The spread between annual dues and rental price, has actually increased, since the beginning of DVC, instead of decreasing,
right???

 

[tjkraz]

I have rented points in the past as a non-DVC member, but now that I have purchased at SSR, I don't see us ever renting out our points to another individual.

From my perspective, I think that the complexities of the DVC system contribute to keeping the rental market where it is. With all of the different point values at different resorts, different costs for weekday vs. weekend and the different booking seasons, there are times of the year where renting DVC at $10 pp doesn't stack up well against a cash reservation.

For example, a week in a 1B at BCV during Premier season is 350 points. The rack rate for a cash ressie, before taxes, with no discounting is $3990. A Disney Club or AAA discount alone would completely eliminate any point rental "savings".

Now, if you're willing to stay during Adventure or Choice season, Sunday to Thursday night, you can easily save 50-60% off of the Rack Rates by renting at $10 per point.

I think some renters are getting "smarter" by listing on eBay with a fixed dollar figure that equates to higher than $10 per point. I have no way of knowing how successful these individuals are in renting their points, but eBay is unquestionably a forum where you can link-up with people who have no knowledge of the $10 price point that is common here.

Honestly I can't conceive of a scenario under which the common price point will universally rise above $10 in the immediate future. People have tried (unsuccessfully) to rally the renters and convince them that $10 is not sufficient. The arguments are always good, but without overwhelming support, it will be difficult to hold the line on $11 or 12 per point.

Certainly the natural growth of annual dues will inevitably push the rental fee upward, but whether that will happen universally in one year or five years is anyone's guess.

 

[crisi]

There also seems to be a pretty good balance right now between owners and renters over on the rent trade board. If there are more renters than owners, you will start to see renters jacking up the prices on their own (i.e. looking for 205 points for a vacation in October 2004, preferrably a BCV owner, willing to pay $12 a point) because the points (at $10 per) disappear to fast and you need to jump when you see something posted. Too much hassle will make renters start offering more to get what they want (especially if there are no discounts and rental at $11 or $12 is a bargain compared to rack rate) and being fairly aggressive. Likewise, if there is a glut of owners trying to rent and points sit, you will see more people willing to dump their points for less than $10.

To change that balance, something would need to change. The rent/trade board could get much more popular with people looking for a Disney vacation - and not just with those people looking for a "value." This could happen if the economy picks up so more people are interested in a room costing several thousand for a week - and Disney hotels themselves remain booked at or near rack rate. Or, alternatively, you could get a lot more owners renting points (I think this is one of the things that has kept prices inflation free - I suspect that at least SOME DVC owners have been hit by the recession and have chosen to rent points they otherwise wouldn't have rented - increasing supply. That, combined with great room rates from Disney to keep people in the parks for the last two or three years, means that rental rates have remained stable).

 

[PamOKW]

Originally posted by KANSAS
Carol MN
the last 10 years but
average rental price per point, has stayed around $10.00 per point?

I think it's hard to look at a ten-year span of DVC rentals since the phenomenon of extensive point rental is something that has happened in what I'd guess is the last 4 years. The first time I became aware of point renting was pre-NYE 1999. I remember many on these boards being surprised that such a thing was happening. After that, it seemed that discussion of point rental became more common. Without the existence of the Internet and the growth of E-Bay and the rental board here, points would not be easily rented on an "open" market.