What is flexibility worth? . . . What do you do when the price through Disney is the same as transfer/renting points?

[Mickey of the Villages]

We are considering buying "transfer" points this year. But when we compare the cost to make a reservation directly through Disney (with 40% passholder discount) with the cost of transferring points at $16/point there is either no or very little savings based on the dates we're considering (YMMV). With a reservation there is little out of pocket expense and the flexibility of cancellation.

The reservation we looked at most recently was for a 2BR at OKW or SSR during Spring Break (week before Easter). It's about $4,800 or $16 per point for 301 points.

Are others seeing this pricing phenomenon? Forgive me if this is a routine occurrence but I am noticing it for the first time.

How much do you have to save to make up for the risk of transferring or renting points? By risk I mean the risk that you may have to alter or cancel your travel plans for any reason.

 

[CarolMN]

Renters should be "doing the math" for every reservation for which they are considering a point rental. While not especially common, there are definitely times of the year that booking a hotel room for cash directly from Disney is less expensive than renting, and the cash reservation is much less risky than a rental. With the large discounts currently offered by Disney, there will be more situations where booking a cash reservation is a better deal than renting.

Owners are warned at purchase that there is no guarantee that they can rent their points and that they would b e in competition with Disney.

As owners, we personally just live with the risk, so I really can't answer your question re "How much would it take" - even a complete loss of a trip wouldn't bankrupt us. (If it would, we either wouldn't book the trip or morel likely, we would purchase insurance). We have always self-insured all domestic travel and so far, we have been very fortunate. I encourage anyone who is unwilling to accept a loss due to an unforeseen cancellation (or even resort closure) to purchase the appropriate travel insurance.

 

[Leight19]

We are considering buying "transfer" points this year. But when we compare the cost to make a reservation directly through Disney (with 40% passholder discount) with the cost of transferring points at $16/point there is either no or very little savings based on the dates we're considering (YMMV). With a reservation there is little out of pocket expense and the flexibility of cancellation.

The reservation we looked at most recently was for a 2BR at OKW or SSR during Spring Break (week before Easter). It's about $4,800 or $16 per point for 301 points.

Are others seeing this pricing phenomenon? Forgive me if this is a routine occurrence but I am noticing it for the first time.

How much do you have to save to make up for the risk of transferring or renting points? By risk I mean the risk that you may have to alter or cancel your travel plans for any reason.

I don’t have ton of experience but I can say my family paid cash for night in SSR treehouse in January since the promotion put cost per point at something like $12. I think with certain room types there’s definitely chance you get better deal paying cash then paying points when there’s a strong promotion running (1BR particularly).

Regarding question on flexibility, I would be hesitant to rent points without significant savings over cash especially during covid. I’ve never done transfer of points so not sure restrictions.

 

[Sandisw]

Given what is going on right now, I would not rent points when the cash stay via Disney is comparable since you can cancel so easily,

As an owner, if I had use for getting a transfer into my membership beyond this trip, that is different.

But. If the sole purpose of the transfer is one trip, I would book via Disney.

 

[drusba]

If prices are close to each other, reserving through Disney can often be the better option including because of the cancellation policy that favors renters through Disney, but you should also weigh additional factors from those mentioned above: (a) if you are going to have a car, you will pay the daily parking fee at the resort with Disney but not DVC; (b) on the other hand, with the Disney reservation, you will get daily full cleaning service, while you get very limited service with a DVC reservation.

 

[starry_solo]

Book through Disney....

 

[Heather07438]

I'd book thru WDW. Much less stressful in these times.

You can always watch rental prices and maybe a great points $ offer makes it worth switching down the line if the rooms are still available. Closer to your trip there may be point bargains and you'll also have a better idea of travel outlook. Last week I could've rented our trip for next week at $9pp and others at $12 (eta - and in these unusual times there was still availability for our rooms). We paid $19 lol, pre-pandemic.

 

[KAT4DISNEY]

Pay cash thru Disney in that example.

Your questions isn't really about what having flexibility is worth because if there's no difference then you're not paying extra for the flexibility. I realize you were surprised to find the cost so close but it's really a no brainer IMO.

 

[Sandisw]

If prices are close to each other, reserving through Disney can often be the better option including because of the cancellation policy that favors renters through Disney, but you should also weigh additional factors from those mentioned above: (a) if you are going to have a car, you will pay the daily parking fee at the resort with Disney but not DVC; (b) on the other hand, with the Disney reservation, you will get daily full cleaning service, while you get very limited service with a DVC reservation.

I believe that any DVC owner who books a DVC villa, even cash through Disney will get free parking.

They would only pay if they book a non WDW room.

 

[chicagodisneyguy]

During a time of economic uncertainty like this it's common for Disney to offer great discounts. Unfortunately members do not receive the same discount on their dues....so rental prices will stay pretty constant and the CRO/rental spread narrows.

Given the current pandemic if the CRO price direct is anywhere near the rental price I'd go with Disney and not even think twice. If I was going to rent I'd either book thru the Disboards with one of the several renters who have offered pretty flexible closure plans. If I went thru Disney, I would probably also circle back a few weeks out and look at the rental agencies and see if any of the discounted last minute confirmed reservations fit my dates.

But to answer your question flexibility during a global pandemic is worth quite a lot.

 

[Ronaldo17]

It's got to be Disney, for all the above reasons.

 

[Brian Noble]

Unfortunately members do not receive the same discount on their dues....so rental prices will stay pretty constant and the CRO/rental spread narrows.

Dues didn't go down during the Great Recession, but rental prices sure did. If supply of rental points consistently outruns demand for rentals, the same thing will happen.

Are others seeing this pricing phenomenon? Forgive me if this is a routine occurrence but I am noticing it for the first time.

How much do you have to save to make up for the risk of transferring or renting points?

There are definitely room types/times of year when the cash CRO price with prevailing discounts is often as good as or better than the prevailing owner rental rate. When that happens, it is absolutely a no-brainer to reserve it through CRO.

Personally, I would need to see a substantial savings over prevailing room rates before I would consider renting from an owner for a host of reasons.

 

[Eric Smith]

Given what is going on right now, I would not rent points when the cash stay via Disney is comparable since you can cancel so easily,

As an owner, if I had use for getting a transfer into my membership beyond this trip, that is different.

But. If the sole purpose of the transfer is one trip, I would book via Disney.

I agree, all else being equal the flexibility of a normal reservation with Disney is a big plus.

 

[ldo]

same price-definitely disney booking. however, if you get a transfer that has a long time before expriation or can be banked, that's not too much of a concern. I'd NEVER do a rental that does not offer A LOT of flex, which a transfer does. In a pinch, one could even rent those points if needed.
I'm in a similar boat--I want the 7-11 month booking window for Aulani, but don't want to commit to a transfer so far out at pricing of upwards of $18. And no deals for Hawaii for next fall from Disney.

 

[sethschroeder]

Are you stuck on SSR? I ask because rooms likely will become available for rent and will that change the math on points vs cash then?

If it's the same then go direct with Disney.

 

[Mickey of the Villages]

Are you stuck on SSR? I ask because rooms likely will become available for rent and will that change the math on points vs cash then?

If it's the same then go direct with Disney.

We actually booked at BWV (I got confused and thought we booked at OKW).

 

[Eeyore daily]

So for us, if the rental cost is the same as Disney we'll book the rental just to avoid the parking fee. However we live in Florida so we drive and that might be a factor. And is Disney's price including sales tax?