Using DVC points for non-DVC hotels

[rnnomore]

Not an official DVC member yet (waiting on ROFR) but dreaming of WDW (Aren't we all? )

I have a trip booked for around Christmas that I would change if I get into DVC. My DH LOVES the Poly and I was thinking of trying staying at OKW studio (home resort) for a few days and then the Poly Concierge for the remainder of the trip. I know all this depends on availability.

Question for all of you is have you ever stayed at any non-DVC hotels on property using DVC points? What are your thoughts and ideas.

Thanks!!

 

[tjkraz]

You can do it. It's very easy to do. But it tends to be very "expensive" in DVC terms.

For the Holiday Season (12/20 to 12/31) a stay in the Poly Concierge Lagoon view room is 70 points for Sun to Thurs and 126 points for Fri or Sat.

Note that those are the 2003 rates from the DVC member web site. I can't find the '04 rates, but I guarantee they are a bit higher.

If you assign a value of $10 to each DVC point (which is the going rate for rentals), you're paying the equivalent of $700 per night for weekdays and a whopping $1260 for the weekend nights.

By comparison, that OKW studio is only going to cost you 15/36 points per night (weekday / weekend).

Buying-into DVC represents direct ownership of one of the DVC properties. So your best point value will always be the DVC resorts. In order for DVC members to stay at the other WDW resorts, exchange rates are annually negotiated by DVC. And you really don't get the same bang for your buck as with the DVC property you own.

 

[PamOKW]

Having the ability to use our points at the non-DVC WDW hotels keeps our options open. This is especially nice as we "ease" into membership and may worry about giving up our favorite WDW hotels. (Most people find the DVC choices soon take the place of the "old" favorite but it's nice to still have the option to visit.)

The trade-off is that it will "cost" a lot more points to stay at the non-DVC options. You get a lot more room at DVC for the amount of points. There are several schools of thought on this. You can look at it that you've already paid for the points to use as your vacation expense. You can spend them however you choose. If you are looking to conserve points, some people find a cash discount for the non-DVC options and stay there on the weekend when the DVC points are higher.

Also keep in mind that, while DVC resort points don't change (nothing can go up unless something else goes down), the non-DVC options are a free-market and have increased over the years.

For comparison, staying at the Poly Concierge from Dec. 18-31, 2004 will cost 75 points per night Su-Th and 135 points each for Fri & Sat.

For the same time period, from Dec. 18-23 you could stay in an OKW Grand Villa for fewer points! The GV would be 38 points Su-Th and 91 points Fri-Sat.

During Christmas Week, Dec. 24-31 you could still stay in a 2 bedroom for fewer points. 41 Su-Th and 100 Fr-Sat.

***The above post points out the increases -- tjkraz used the 2003 point schedule. Prices have gone up since then.*****

 

[sgtpet]

Using your points to stay at a non DVC Disney resort is a huge mistake and ripoff. Rent your points out and pay cash for the room. It works the same for cruising. If you want DVC it should be because you want to stay at the DVC resorts. Outside that it is not a sensible program.

 

[tjkraz]

Originally posted by PamOKW
***The above post points out the increases -- tjkraz used the 2003 point schedule. Prices have gone up since then.*****

Thanks Pam!

Wish they'd update the Member Guidebook on the web site one of these days.

 

[PamOKW]

Don't worry -- they'll have the 2004 points up there by 1/1/2005! LOL! Heck, the Member Guidebook on the site is 3 years old with a welcome by George Aguel (who has been promoted out of DVC).

 

[rnnomore]

Thanks for all your ideas and thoughts. Gives me something to think about.

 

[rocketriter]

When you compare point costs against rental costs, be aware that it's more complicated than a simple "$10 per point because that's what you could get for rental." Setting aside the overhead you paid to join DVC (which is the same no matter how you spend your points), you still have to remember that your yearly dues cost you just over $4 per point. That $10 figure only applies if you care to take the effort and risk of finding a customer and transacting a points rental. Some of us do this frequently and are comfortable doing so, while others are put off by the uncertainty and the hassle.

So think clearly about this. Just over $4 per point is what the point is costing you. About $10 per point is what you can get after the time-and-effort investment of a rental. You need to consider both numbers when making your decision.

In our family, for example, my wife and I bill by the hour for our services and we're both very busy. (By the way, she bills in her profession at a higher rate than I bill in mine!) For us, it is absolutely not cost-effective to spend time arranging a rental. For other people, particularly if they are retired or have a non-employed spouse, renting out points is a terrific deal. Do what's best for your own circumstances, and have a wonderful time!

 

[jaysue]

We are staying for two nights in an AKL Deluxe Savannah room during the week in May

This cost us 43 points per night

The rack rate for the same room would be $385 + tax = $430 per night

$430 per night / 43 points = $10 per point

Now there are AP rates out for this period lowering the price by $115 per night so assuming the AP rate is open for those nights in that room type you get

$302 per night / 43 points = $7.02 per point

So assuming no discounts the points were a good use vis-a-vis cash rates and with a discount are decent but not good

The way we value a point is to take the blended mtce. fee (we have 663 points at three different resorts) which for us is about $4.03 a point - then we add in the straight line depreciated amount per year of our original capital purchase of $74/$79/$84 for our various contracts divided by years to go - this works out to about $1.86 a point. Together we then say out points for 04 cost us $5.89 each and to round up an even $6

The AKL room with cash discount is still ok at $7.02 a point against the $5.89 cost for 2004. Could have done better to rent the 86 points and paid for cash but the assumption would have been that the AP rate would apply for the room type for those 2 nights.

Having said all that, if it was weekend nights, I would pay cash and not use points at a non-DVC property

thanks
jaysue

 

[CoolDisneyCat]

We are using our points to stay at the AKL concierge level on our trip next week. I thought about renting the ponts out and using the cash, but I just don't have time to arrange it. And there is always the chance you will find the odd renter who wants to make a big hassle.

I had to use the points quickly as they were in a holding account, so AKL concierge here we come!!!

 

[Maistre Gracey]

I am one of the folks that values their points at about $6 per point. That is what it actually costs me. I will not go through the hassle of renting my points, so I have no reason to use the $10 figure.

For those who would otherwise rent, it is legitimate to use the $10 figure. Actually, it would be better to use a lower figure once you factor in risk of not renting, damage charges, non-payment etc...

It is also important to remember that when comparing to cash prices, there is no tax when using points.

All that money stuff aside....
In my opinion, the best use of a point is whatever makes you happy. If it makes my wife and me happy to blow points on weekend AKL concierge in peak season (reference our upcoming April trip), than that IS a good use of points.

Good luck....

MG

 

[rocketriter]

In my opinion, the best use of a point is whatever makes you happy.

Hooray! I couldn't have said it better.