Why do non DVC points keep going up?

[ditzy]

Perhaps the large point increases are a means of filling the DVC resorts. Also, the point charts are only changed once per year, so they cannot quickly react to travel market changes. Cash rates, like the airlines, can change every day.

 

[PamOKW]

If a Disneyland Paris room is $300 and a BWV room is $300 the points should be equal provided DVC maintains 100% Occupancy on Rentals.

In theory, that's how it works. The problem right now is that Disneyland Paris is charging DVC the $300 per room. However, market conditions force DVC to rent out the BWV room for $185. To make up the difference, DVC requires us to give them more points. They can then rent a room for $185 and a studio for $125 and come up with the $310 to pay for the Disneyland Paris room.

There are overhead costs for the hotel common areas (pool, lobby, front desk, etc.) that may not be totally covered by our dues when someone is renting a room. That's why I think DVC may need a "cushion" on the room costs.

Many here think that member rentals are still fairly insignificant. I hope that continues to be true. Every time a member rents out rooms for low costs, it may take away from someone who would otherwise book through Disney/DVC. This could continue to push up the price of our non-DVC options.

 

[PamOKW]

They charge us $75 for non WDW trades to cover that expense.

FYI -- This has recently increased to $95 for many of our options including Concierge Collection.

 

[CaptainMidnight]

Originally posted by Bexx
And then rose sharply just as I bought into DVC!! I have to admit that the smaller amount of points required to stay at DLP when I first looked into DVC did help my decision to buy, and then I got a bit of a shock when the new point tables came out.

Good point. I guess it's supply and demand, the increasingly larger supply of DVC rooms that need to be rented reduces the demand and thus the bargaining power of the points. I'd like to see better trading power.

 

[TroyWDW]

Why do the market forces only decrease the price of the DVC rooms, while in the same tourism market DVCMC negotiates an increased price for us? What am I missing?

Troy

 

[PamOKW]

while in the same tourism market DVCMC negotiates an increased price for us? What am I missing?

That's the problem. Maybe it's because DVC is negotiating for rooms a year in advance. What resort wants to bet that the poor market conditions will continue? Disney didn't know in early 2000 that things would tank in the fall. (How could they?) Most likely, DVC had already negotiated 2001 points at pre-9/11 levels. During 2001, they found they were coming up short. When they negotiated 2002, the other people probably didn't anticipate the poor conditions would last throughout the year. DVC knew by now that they needed more money to cover the costs, so they raised the point levels. Same scenario for this year. DVC knows they need more points to reach rack rates but the "the other side" isn't willing to deeply discount in advance.