Villas price inflation?

[cseca]

Hi,
Just wondering, does anyone have a listing of the annual villas price increase every year? Maybe since 2000?

I'm trying to figure out how much approx the hotels would cost in about 10 years, 20 years, etc. Comparing them to the cost of DVC ownership.

Thank you!!!!

 

[Maistre Gracey]

No, I don't have the figures, but...
I think if you figure around 4%/year for inflation you will have a ballpark figure. The same could be used for DVC annual fees.

Actually, if you just compare todays prices you will be in the ballpark since both will rise about the same.
You will actually be a little ahead of the game, since purchase price of DVC doesn't increase with inflation (although some will argue time value of money, which is phooey IMO).

MG

 

[chalee94]

annual dues increase history is here:http://personalpages.tds.net/~rb/DIS/DVC/DVCDuesHistory.htm

historical price per point:

Pre-Construction - $48 (230 pt. minimum)
Oct. 7, 1991 - OKW Opens $51
Dec. '91 - $51
Jan. '92 -$51 (230 pt. minimum)
Feb. '92 - $51
July-Aug. '92 - $54.50
11/1/92 - $56
May '93 - $56 (210 pt. minimum)
July '93 - $57.50
Jan. '94 - $57.50 (190 pt. minimum)
March '94 - Announce Newport, CA plans
April '94 - $59 Increase in June announced
6/15/94 - $60.50
Nov. '94 - $61.50
7/1/95 - $62.75 October '95 - Vero Opens
March '96 - HHI Opens
May '96 - $62.75
July '96 - BWV Opens
May '97 - $62.75 (150 pt. minimum)
May '98 - $62.75
Fall, 1998 - OKW Sells-out
1998 - Announce WLV
Jan. '99 - $65
Oct. '99 - $65 (notice of OKW selling out added buildings 62, 63, 64)
Mid-May 2000 - $67
June 2000 - $67
Nov. 2000 - WLV Opens (sales start Dec.)
Mid-Jan. 2001 - $72
March 2001 an increase to $75 announced for June
March? 2002 – Begin sales of BCV
June 2002 -- $80 per point
Dec 1, 2002 -- $84 per point (announced early Oct.)
Aug 4, 2003 -- $89 per point (SSR Sales begin with $10 discount = $79) with expiration in 2054.
May, 2004 -- SSR opens.
May, 2004 -- $95 per point @SSR, $89 at other DVC resorts.
June, 2005 -- $98 per point @SSR, $92 at other DVC resorts.
Jan (?), 2006 -- $101 per point @SSR, $95 at other DVC resorts (with some variances at OKW, VB and HH). Incentives are also available lowering the effective purchase price for 150 or more points.
Fall , 2006 --AKV announced.
February 1, 2007 - AKV sales begin for existing members. $101 ($8 incentive discount also available)
March, 2007 -- $104 per point. (160 point minimum) ($8 incentive discount available)
July, 2007 -- Early opening for AKV.

 

[PamOKW]

I used to play around with that kind of information and may be able to find you something later. But just as a "rough" idea of resort room prices, in 1998 I'm pretty sure I paid $159 (could have been $179) for waterview at CBR at Christmas (full rack rate). For Christmas 2008 the price is $240 - a 51% increase. Room rates were going up roughly 6-8% per year prior to 9/11/01. It's only in the last 2-3 years that the prices have started going up consistently once again.

 

[cseca]

Thanks everyone.
I was trying to figure out if the price increase on our MF is comparable to the hotel price increase (not dvc per point, just general hotel price increase). Seems like the MF increase is a little less than yearly hotel increase. Which is good.

 

[PamOKW]

Found some info! Rather than going into extensive detail of seasons/views/resorts I think the listing below will give you an idea of pricing. Remember that it took quite awhile for WDW to rebound from the effects of 9/11 and BWV opened just a year before, hence not as dramatic an increase.

I'm comparing rack rate prices for regular season

OKW 1997 vs. 2008
Studio -- +38% $229 vs. $315
1 Bed -- +41% $305 vs. $430
2 Bed -- +54% $410 vs. $630
GV -- +54% $845 vs. $1,305

BWV 1999 vs. 2008
Studio -- +13% $329 vs. $370
1 Bed -- +14% $435 vs. $495
2 Bed -- +13% $705 vs. $795
GV -- +12% $1,510 vs. $1,695
*1999 is the price of a preferred view room

I am using the current "regular" season rate listed on another website -- however, they didn't break it down into views. I'm wondering whether the current rack might be slightly higher at BWV for preferred view

 

[cseca]

WOW!
Thanks PamOKW!
It's amazing the difference between OKW and BWV increases.
I wonder why...

 

[PamOKW]

I "think" the 1997-2000 price increases were along the lines of 6% per year. After 2001 took a bite out of tourism, Disney was more conservative in raising the resort prices. Also, I'm not positive I have the correct "top" rack rate for standard season this year at BWV -- anyone able to confirm the #s I'm using?

 

[rinkwide]

Consider this; When Disney's Contemporary Resort opened in 1971 the nightly rate was about $30.

 

[cseca]

Consider this; When Disney's Contemporary Resort opened in 1971 the nightly rate was about $30.

Amazing!
Does that mean in 30 years current hotel prices might be in the thousands of dollars per night? woweee...

 

[dianeschlicht]

Amazing!
Does that mean in 30 years current hotel prices might be in the thousands of dollars per night? woweee...

Yes, it does make you wonder at that, doesn't it!

 

[glennbo123]

I found the rates per point posted by Chalee94 on a different thread a while back and calculated a cumulative annual growth rate of a little more than 4%, even considering the incentive discounts. A previous poster also calculated around 4%.

 

[dvc_john]

And don't forget, a 4% increase on the rental rate is a lot more than 4% increase on mf's.

A 4% increase on a $400 rental rate is $16 (plus tax of nearly $2 on that increase).
If that room costs 20 points with a mf of $4.50, that equals $90 in mf's, and a 4% increase would be $3.60.

Over time, the difference will really add up.

 

[cseca]

Phew... I just can't imagine what I'd do when a night in a disney studio costs $1000... yikes!

 

[Judy WI]

Consider this; When Disney's Contemporary Resort opened in 1971 the nightly rate was about $30.

And I think min wage was about 1 an hour. I got married in 1968 and I remember when I got a raise to over a 1.00 an hour.

 

[Caskbill]

Comparing past prices to today's prices, or estimating future prices to today's prices, means absolutely nothing. Everything is relative to everything else at the specific time in question.

I remember when a candy bar was 5 cents. But that's also when I delivered newspapers and made about $4.00 a week.

The way to compare prices is to ask how long you would have to work to earn the money to purchase the item. If 30 years ago you had to work 10 minutes to buy a loaf of bread, and today you have to work 10 minutes to buy a loaf of bread, and if in 30 years you have to work 10 minutes to buy a loaf of bread, then relatively speaking the cost of bread did not go up or down but remained the same for 60 years. While the dollar cost went up, the real price remained the same, that is, it cost you 10 minutes' wages.

While a hotel room may cost $1000 a night in the future, that will only make sense to compare to what your wages will be in the future.

 

[PamOKW]

To Caskbill's point, using an "inflation calculator" I found online (no idea how accurate), most of the increases are running below inflation rates. The only exceptions were the OKW 2 bedroom and the OKW GV which were still both up 15% when comparing inflation adjusted dollars.

For fun I also compared paying $52 per point in 1993 vs the value today -- inflation adjusted would be $80 so there have been real increases in the cost to join DVC. BWV opened at $62.75 which would translate to $84 today. I also looked at OKW opening day dues in 1991 $2.51 - translated to $3.96 in 2008 dollars vs. the $4.56 for 2008 dues.

 

[Caskbill]

To Caskbill's point, using an "inflation calculator" I found online (no idea how accurate), most of the increases are running below inflation rates. The only exceptions were the OKW 2 bedroom and the OKW GV which were still both up 15% when comparing inflation adjusted dollars.

For fun I also compared paying $52 per point in 1993 vs the value today -- inflation adjusted would be $80 so there have been real increases in the cost to join DVC. BWV opened at $62.75 which would translate to $84 today. I also looked at OKW opening day dues in 1991 $2.51 - translated to $3.96 in 2008 dollars vs. the $4.56 for 2008 dues.

Good points Pam. I'm not sure how the 'official' inflation rate is calculated, but it's clear that whatever kind of 'average' it is, there will be some things that are higher than average, and others that are lower. The price of gasoline has obviously increased faster than inflation. And until recently, the prices of housing have increased faster than inflation. On the other side, prices of electronics traditionally increase much lower than the inflation rate.

I'm pretty sure in the early years, both the cost of buying DVC and the increases in Maintenance Fees was either at, or perhaps even below the average rate of inflation. The increases the last 5-years have probably averaged higher than inflation, with the purchase costs probably following the rate of increase that was associated with the rising costs of the housing increases, and construction cost increases.

.02

 

[jana]

I believe the "inflation" of hotel prices at WDW from 1971 (using the Contemporary ) averages to about 7.75 % per year. DVC dues cost has increased about an average of 3.5-4% (depending on resort) since 1992. I think you have most of the other relevant numbers.

 

[macosx]

Amazing!
Does that mean in 30 years current hotel prices might be in the thousands of dollars per night? woweee...

The Buffalo Bill's Wild West Show at Disneyland paris cost nearly $100!?!

http://www.disneylandparis.com/uk/disney_village/having_fun/shows.htm

Coke costs 3 or 4 euros, which is $5-6, much more than the 5 cents famous from years gone by.

The 5-Cent Coke Goes the Way Of the Sarsaparilla