Why Is DVC Increasing Point Minimum to 160 Points?

[Delaware Mike]

DW and I were sitting with our morning coffee today, discussing our DVC membership. During our conversation, she wondered aloud what could be Disney's motivation to increase the minimum point purchase from 150 to 160 points.

I confess I don't have an answer, even if her question was rhetorical.

What might Disney have planned which would require new members to purchase the additional points...?

 

[RoutemanDan]

Money.
10 pts x $104.00= an extra $1040.00 per new membership.

 

[Delaware Mike]

Money.
10 pts x $104.00= an extra $1040.00 per new membership.

Good point, Disney ALWAYS plans for getting more money out of everyone.

However we have a feeling there's more to the story....

 

[Chuck S]

Remember that the original minimum purchase was 230 points at OKW. Perhaps the 160 minimum is being implemented because the II trades take 160 points, or simply because they feel the 160 is a better "usable" minimum for the average owner.

 

[goldilocks_63]

I think they want us to trade out more.

160 I heard is what's needed to trade, so with 150 had to borrow, and DVCers don't want to do that....

What my old guide told me...


GOldi

 

[rinkwide]

...the original minimum purchase was 230 points...

Ah, those we're the days. 20+ nights in an OKW studio right off the bat.

 

[RobDoc]

Over the years, DVC has "experimented" with the minimums- both for original purchase and also add-ons.

As Chuck stated, the original minimum was 230 points, later reduced to 210, 190 and then 150. Originally, the minimum add-on was 25 points at your home resort, but 50 at other resorts - later changed to 25 at any resort.

I would subscribe to the thought that the increase to 160 points is related to the exchange "cost" of 160 points for a 1BR and also just because they "can". Perhaps with the resorts currently being sold (and those that will be coming on line in the future) they feel the increased minimum will not be an obstacle for first time buyers and by tying it to the II exchange costs (I know that exchange studios are less - but that is not an actively published chart) they can encourage using the World Passport Collection in the future.

 

[jvincent16]

the presentation we went to last week stated the increase was mainly due to the points required to trade with II during high season (160 required for one bedroom high season trade). btw, are the point charts set for the life of the contract? i.e. if i buy ssr today will the points required to rent stay the same for the remainder of my lease?

 

[RobDoc]

the presentation we went to last week stated the increase was mainly due to the points required to trade with II during high season (160 required for one bedroom high season trade). btw, are the point charts set for the life of the contract? i.e. if i buy ssr today will the points required to rent stay the same for the remainder of my lease?

No- the point charts could be changed (they are currently set thru 2008 for DVC resorts). The total number of points at each resort cannot be changed, but DVC could reallocate the points needed. HOWEVER - if they raise the points needed for some nights/seasons/vila types, they must also lower the points needed for other nights/seasons/villa types.

In reality, this has happened only once - at OKW beginning in 1996 - and I personally do not expect any such changes in the near future. With each new resort DVC has had easy opportunity to modify the point charts for that resort and has sustained a similar point structure - although some modifications were made when SSR came onboard and more changes will be made with AKV.

There is no "protection" for the other non-DVC options though - so the points needed for other WDW resorts, Concierge Collection and even World Passport options can always be changed (and usually have).

 

[jgus]

Over the years, DVC has "experimented" with the minimums- both for original purchase and also add-ons.

As Chuck stated, the original minimum was 230 points, later reduced to 210, 190 and then 150. Originally, the minimum add-on was 25 points at your home resort, but 50 at other resorts - later changed to 25 at any resort.

I would subscribe to the thought that the increase to 160 points is related to the exchange "cost" of 160 points for a 1BR and also just because they "can". Perhaps with the resorts currently being sold (and those that will be coming on line in the future) they feel the increased minimum will not be an obstacle for first time buyers and by tying it to the II exchange costs (I know that exchange studios are less - but that is not an actively published chart) they can encourage using the World Passport Collection in the future.

We are new DVC members,and we were wondering if the II exchanges have always been 160? I am just curious if that has changed over years? Or might in the future?

 

[Chuck S]

II exchanges can change, and are not guaranteed to be available. The orignal trading company was RCI, but DVC switched to II many years ago.

 

[RobDoc]

We are new DVC members,and we were wondering if the II exchanges have always been 160? I am just curious if that has changed over years? Or might in the future?

I'd have to do some checking, but memory suggests that the current points needed for exchange are lower than what was originally required. Originally there was no point chart - MS had to let us know what points were used on a case-by-case basis.

II has been the exchange company since about 1996 - prior to that we had RCI as the company for the World Passport Collection.

 

[Dean]

We are new DVC members,and we were wondering if the II exchanges have always been 160? I am just curious if that has changed over years? Or might in the future?

As noted, it can and does change. There have been at least 4 major variations over the years.

1. Trade with RCI - deposit first only.
2. Trade with II started 95 I believe and was request first mostly with the option of depositing from the start. Initially you had to deposit the same unit size from your home resort.
3. Later they changed it so that you could deposit a unit from any resort that met the exchange requirements. It also had to be a unit you could have reserved yourself with the 11/7 month windows applicable.
4. Now the current system where a given exchange is X points set MOSTLY up front. I say mostly because it can vary from one exchange ot another but if you assume HIGH season you won't have any surprises.

Under the current system there are some advantages and IMO some major disadvantages. The 1 BR was the big winner with the new system and the studio the BIG loser with the 2 BR being fairly neutral from the last version to the present one. I think you can expect it to change in the near future. I've had some correspondence from DVC that would suggest they're working on this actively with II. They've even extended the existing contract for a few months at a time rather than signing a new one. Hints are that it may change for the better within my main areas of concern which include the fact that exchanges inside the 60 day window are the same as anything else, that DVC members only have access to a portion of the II resorts, that DVC members don't have access to bonus weeks and that DVC members don't have direct access to the II website. We shall see, but given I don't see DVC giving up control I'd suspect the trades within the 60 days window would be the easiest to fix and keep the same basic system. But I could easily see II giving members the option of joining directly with the other benefits.

I could also see DVC expanding the BVTC and pulling out of II altogether or at least making membership in II an arms length transaction where members would have to pay II to join and pay the same fees as anyone else.

 

[Dean]

I'd have to do some checking, but memory suggests that the current points needed for exchange are lower than what was originally required. Originally there was no point chart - MS had to let us know what points were used on a case-by-case basis.

II has been the exchange company since about 1996 - prior to that we had RCI as the company for the World Passport Collection.

Simply compare to HH and OKW for adventure season and OKW for Choice and Dream season and you have your answers.