Using DVC Points For DCL?

[CastawayJP]

My wife and I are currently researching the possability of joing DVC, however our favorite thing to do w/ Disney is cruiseing. I have heard that DVC points can be used for DCL cruises, but I don't know how it works, or if it is a real option on a regular basis. Could any of you DVCer's help a newbie out? Thanks!

 

[Saratoga Souris]

I have been a DVC owner for almost 4 years and also love to cruise.... 4 cruises on DCL already. Buying DVC with the intent of using the points for DCL is not a good idea. You can buy a cruise for less!
It takes a lot of points to cruise!

 

[Mirthrindr2]

My wife and I are currently researching the possability of joing DVC, however our favorite thing to do w/ Disney is cruiseing. I have heard that DVC points can be used for DCL cruises, but I don't know how it works, or if it is a real option on a regular basis. Could any of you DVCer's help a newbie out? Thanks!

I cannot speak from experience yet, however, from what I have learned from reading this board for several weeks now, buying into DVC will allow you the FLEXIBILITY and convenience of booking on the DCL using your points, but the cost benefits of doing so are not to your advantage. According to some experienced DVCers, you may only just break even on what you would pay out of pocket and the bottom dollar could perhaps even cost more, as SS states above, using points under certain circumstances, considering the high number of points required for a DCL cruise.

If it is in fact a break even situation, I could still see the convenience and flexibility DVC provides with regard to DCL as still a benefit, but if it DOES cost you more using points in the long run, then I agree it's a big negative.

 

[JimC]

I know some love cruising with points. Others mix a point and cash reservation. We however pay all cash. There are several reasons.

1. No exchange fee which I believe is currently $95 when using points.
2. Better cancellation options with cash.
3. Unlike DVC resorts, points for the Disney collection can change annually -- and they usually go up each year.
4. Earlier booking options with cash.

 

[OKW Lover]

When deciding on using points vs paying; you need to consider the value of points on the rental market. Currently, you can rent your points at about $10 per point. So, if your cruise is going to take 300 points per person, double occupancy, you are effectively paying $6,000 for the Disney Cruise. Check the cash price of the cruise and you will likely find you can do it cheaper than that.

 

[JimC]

Jeff raises a good point. But for this option to be important it must be one you are willing to consider doing.

Not all members relish the thought of renting points -- some do it only as a last resort, others to increase the flexibility of their membership, and still others rent quite frequently.

 

[CastawayJP]

Well it looks like if we do decide to go DVC, it won't be for the cruise deals! Do DVC members get any kind of discounts w/ DCL?

 

[buck4568]

When deciding on using points vs paying; you need to consider the value of points on the rental market.

I would have to disagree. We have been on over nine Disney cruises and have used points or a combination of points and cash. We did a ten day Med cruise this year that was not going to be possible if we had to pay cash.

The whole value of points on the rental market was never an option. We bought points to use them for vacations over the life time of the membership and not to rent them to some non-dvc person who is going to put more wear and tear on the resort at our expense.

Currently, you can rent your points at about $10 per point. So, if your cruise is going to take 300 points per person, double occupancy, you are effectively paying $6,000 for the Disney Cruise. Check the cash price of the cruise and you will likely find you can do it cheaper than that.

If your claiming the rental income on your taxes, which I doubt, then you would not be in a positive cash situation. I never hear that figured into the rental formula.

 

[OKW Lover]

If your claiming the rental income on your taxes, which I doubt, then you would not be in a positive cash situation. I never hear that figured into the rental formula.[/QUOTE]

If I were claiming rental income on my taxes, I'd offset it with financing and maintenance costs, making this a less onerous burden than you might think.

 

[OnMedic]

When deciding on using points vs paying; you need to consider the value of points on the rental market. Currently, you can rent your points at about $10 per point. So, if your cruise is going to take 300 points per person, double occupancy, you are effectively paying $6,000 for the Disney Cruise. Check the cash price of the cruise and you will likely find you can do it cheaper than that.

Up... I would agree, but be more likely to word it in a balancing scenario suggesting that if you can take the cruise for a total of $4,000 vs 500 points, that I would rent out 400 points, pay cash and bank/use the other points for DVC.

 

[SnowWhite2]

It all depends on many factors if your DVC membership will be beneficial for cruises.

We just purchased DVC and did not have the cash to cruise but unable to use all of the points for a WDW vacation. The only way to cruise was to use the points.

If you decide that you must get the absolute most value out of each and every point, DCL is not cost effective. Neither is any other exchange option.

My goal is not to necessarily get the absolute most out of this membership but to get more than break even. I want to have the experiences of all types of vacations, along with WDW. For the cruise, the cash price was $4100 booked on-board. I got it for about 470 points. My cost for those points is $6 (pt cost & maint). My DVC cost for the cruise is $2900 (including the $75 fee). Yes, I could have tried to rent the points for $10/pt and received $4700 and "made" $600 but the time and risk was not worth it to me. I believe that I have saved $1200 by using DVC points for the cruise.

An analogy with the dining plan...

I call the dining plan a success for us if we each eat an average of more than $38 of food a day, which is the cost of the plan. I'm not the one who has to order the most expensive item on the menu at each dining event to make sure I get the MOST out of the plan.
If you have to get the MOST out of the plan, DVC may not be the best for your situation.
If you are OK will taking vacations that will cost you less money than booking individually on average, then DVC will work for you.

It all depends on your outlook as to whether it will be the right choice.

 

[DisneyBride'03]

We just booked a cruise for Feb.....its value season..all 3 kids are going...14, 10 and 1....if we would have done 2 Cat 11 staterooms...286 pts....DH wanted Cat 4...so up to 435...
We were fortunate to receive DIP.....if we cruise again, we will most likely pay cash...but we felt "ahead of the game" with these points and wanted to enjoy them on a cruise!!
Fee was $75...

 

[CastawayJP]

Wow you all really have this figured out! Thanks for taking the time to advise!

 

[eva]

When deciding on using points vs paying; you need to consider the value of points on the rental market. Currently, you can rent your points at about $10 per point. So, if your cruise is going to take 300 points per person, double occupancy, you are effectively paying $6,000 for the Disney Cruise. Check the cash price of the cruise and you will likely find you can do it cheaper than that.

I disagree. I will be paying whatever the points cost, with interest and maintenance included. Now I may be able to go to the trouble to rent and make a better deal. But it still will not cost me more than what I paid for the points. We've cruised on both points and cash. We calculate each year what a point cost us and then make a decision on whether to use points or cash for certain trips. We have saved money using points before. If you are booking close to the cruise, the points do not increase like a cash reservation does. I guess it all depends on your point of view. I should also add that a lot depends on what you pay for your points. Newer contracts direct from DVC cost a lot more than my original contract at OKW purchased over 10 years ago.

 

[Selket]

Do you have kids or have kids to take?

I ran some scenarios on the DCL website for cruising at different times of the year (July, October, and some holiday periods) both with kids (2A, 2C) and without - just 2 adults. It seems some times of the year the kids cost about as much to cruise as the adults - maybe $1472 for 2 adults and with the kids tacked on it was $2745 (same cruise, same choices). So an extra $1300 about for the kids - almost as much as the adults. Other times of the year it seemed much less to add the kids.

I know it takes more points in peak season vs. other seasons but the point value seemed better in peak season - using the points for the kids and pay for the adults with cash. It costs more points for the adults to cruise than the kids for points so I wouldn't do it that way.

For that cruise I mentioned above the points for the kids are 180 - so if I could sell them at $10/point = $1800 - Maybe I'd come out ahead by doing that but that is up the the person. I think if you're using points to cruise I might look at it that way - just to see what is the best value for the least points. (That cruise I think was a spring break 2008 peak season one).

I haven't bought DVC yet - just some of my thinking!

 

[crisi]

I think there are three factors:

1) If you intend to cruise regularly on points you need to understand that points to cruise (unlike DVC vacations) will go up. You'll either need more points over time, or you'll start combining points and cash.

2) What are your points worth to you, what is a cruise selling for in points and in cash. This is HIGHLY individual - as you've seen some people value their points vs. cash at a rental rate, some at maintenance fees. Some figure the bothering of renting needs to be factored in.

3) Opportunity cost. If you are cruising with those points, you aren't using them at WDW. For us, with a small contract, we'd need to spend three years of points to cruise - that's three years we'd be skipping WDW. We bought our points for WDW - and not for cruising or staying in the Conceirge Collection or going on Safaris - and we only bought enough points for our own WDW fix - so we can't 'afford' using those points to cruise. We just pay cash. If we had more than enough points, we'd likely feel very differently.

 

[eva]

I think there are three factors:

1) If you intend to cruise regularly on points you need to understand that points to cruise (unlike DVC vacations) will go up. You'll either need more points over time, or you'll start combining points and cash.

2) What are your points worth to you, what is a cruise selling for in points and in cash. This is HIGHLY individual - as you've seen some people value their points vs. cash at a rental rate, some at maintenance fees. Some figure the bothering of renting needs to be factored in.

3) Opportunity cost. If you are cruising with those points, you aren't using them at WDW. For us, with a small contract, we'd need to spend three years of points to cruise - that's three years we'd be skipping WDW. We bought our points for WDW - and not for cruising or staying in the Conceirge Collection or going on Safaris - and we only bought enough points for our own WDW fix - so we can't 'afford' using those points to cruise. We just pay cash. If we had more than enough points, we'd likely feel very differently.

Crisi, that was well said. When we had only 200 points, you can bet we did not use them to cruise. It would have eliminated points for 2-3 years.

But we have had add-onitis for the last 10 years. Now we have more points than we could ever use at WDW in one year. Unless of course, we rented out a couple of grand villas for a couple weeks. So we have been using our points off and on to cruise and now for Adventrues By Disney to go to Italy.

I know that people will think I am crazy not to rent out the points and pay cash. But by the time I did, the early bookings would have been completely gone. I saved about 20% to do it early. After paying taxes for rental fees, I would have lost money to rent compared to just paying points with the early booking discount.

Like I said, you have to calculate it out each trip.

 

[Duckieluckey]

My wife and I have been on three Disney Cruises (can't go on another until I loose the weight I gained on the forst three) and paid for three cruises for our children. I used points on the first cruise and have rented points to pay cash for the others. I have never had a problem renting points.