Will pts. be worth less over time due to price increases?

[Mirthrindr2]

Wasn't sure how the value of DVC pts. will change over time.

So is it possible for Disney to, over time, increase both your Annual Fee AND the number of points required for a given stay at a resort?

In other words, assume I pay $21600 today to purchase 225 pts for AKV (which btw is limited for 50 years as opposed to traditional time share that can be 'lifetime'). Today, according to the point chart, 83 pts. gets us a week in a Standard Accommodation, or 101 pts gets us a week in a Savanna View accommodation category (lowest season).

Now let's say 15 years goes by... can Disney continuously increase, over that period of time, not only the Annual Dues but also the number of points required for that same week of time and accommodation, making the point cost for the same exact week from 83 to say 120 pts., and from 101 pts. to say 200 pts. respectively (projections are figurative of course)? Is this how it can work? So what gets us 7 nights today could potentially be worth no more than 3 or 4 nights for the same week and accommodation in the future?

Just trying to understand all there is to this. Thanks for clarifying, I appreciate it folks.

Jim

 

[prettypixie]

I am researching DVC and I think I have read that the points required for your stay will not change for your contract. Now as for the Annual fees those do increase not sure about the % over time. Stay tuned and I am sure some of our DVC pros will respond.

 

[Mirthrindr2]

I am researching DVC and I think I have read that the points required for your stay will not change for your contract. Now as for the Annual fees those do increase not sure about the % over time. Stay tuned and I am sure some of our DVC pros will respond.

Hi PP. I do recall reading that the number of points for a given DVC resort will never change or increase over time, thus we won't have 10 million members all vying for time at the same resort with a limited number of rooms. Not sure whether this is the same thing you are referring to, or something else all together.

I hadn't yet come across whether the value of a pt. could change over time as well. I'm hoping not..., after all, if you buy 1 week in a traditional time share, yes your Maint. fees will always increase, but you will NEVER be told your 1 week has been reduced to 4 days... you buy 7 nights, you'll still have 7 nights 50 years later.

Thanks for the reply.
Jim

 

[sjdisneywedding]

Now let's say 15 years goes by... can Disney continuously increase, over that period of time, not only the Annual Dues but also the number of points required for that same week of time and accommodation, making the point cost for the same exact week from 83 to say 120 pts., and from 101 pts. to say 200 pts. respectively (projections are figurative of course)? Is this how it can work? So what gets us 7 nights today could potentially be worth no more than 3 or 4 nights for the same week and accommodation in the future?

Just trying to understand all there is to this. Thanks for clarifying, I appreciate it folks.

Jim

no the number of points for a day will remain fairly consistent over the 50 years. There is a set number of points per resort. Therefore, the only thing that could happen is they raise the number of points required for a specific type of room or a specific time of year. If they do that they must lower another room/rooms the exact same amount of points the others were raised.

 

[moseral]

The total points available at a resort does not change. If they increase the points required for a certain day of the week, or time of the year, then they must decrease it at other times. So you can rest assured that if an average week takes 83 points now, it will still take 83 points in 20 years.

 

[Chuck S]

The total points available at a resort does not change. If they increase the points required for a certain day of the week, or time of the year, then they must decrease it at other times. So you can rest assured that if an average week takes 83 points now, it will still take 83 points in 20 years.

Not necessarily. Adventure Season studios at OKW originally took 69 points per week. They now take 80, and have since 1996, when the ponts chart was re-aligned at OKW.

It is true that the TOTAL number of points in the chart for a year at a given resort can not change, but seasons and rooms can be adjusted up, while others are adjusted down.

They can even adjust where all nights in a given room size at a resort could take the same amount of points year round. I think the maximum adjustment possible for any resort is listed in the resorts Public Offering Statement.

However, as long as travel and demand patterns remain relatively stable, there is no pressing reason fo DVC to realign any point charts, and the chances of it happening are remote. But it is legally possible.

 

[Caskbill]

Keep in mind that OKW was the first DVC resort, and when the point charts were developed, DVC did not have any historical pattern to examine on how members would use their points.

By 1996 they had the statistics they needed and made adjustments to the point chart as required. The adjustments were made to effectively balance resort occupancy year round.

By the time the other DVC resorts were built, DVC had a good idea of how point usage would be used, and my thought is they did a better job of initially setting the correct point requirements so as to balance occupancy, and thus has not seen any requirements for a readjustment.

I would not expect any changes in the point chart makeup unless there is a noticeable shift in the way members use their points.

As mentioned, if they do have to make an adjustment, they cannot just do a general increase in points. If they increase points somewhere, then they must make decreases somewhere else, so the total number of points used remains the same.

Note this is resort specific. They cannot raise points at AKV for example, and then lower points at BWV. Any point increases must be balanced by point decreases somewhere else, and at the same resort.

 

[chalee94]

Now let's say 15 years goes by... can Disney continuously increase, over that period of time, not only the Annual Dues but also the number of points required for that same week of time and accommodation, making the point cost for the same exact week from 83 to say 120 pts., and from 101 pts. to say 200 pts. respectively (projections are figurative of course)? Is this how it can work? So what gets us 7 nights today could potentially be worth no more than 3 or 4 nights for the same week and accommodation in the future?

as already stated, your "83 pts" example is most likely to remain stable...and if DVC does increase that number, then another season/room type will get cheaper as a result. DVC is able to sell a fixed number of points at their DVC resorts, and that is roughly what it takes to book the entire year (allowing for some reserve for maintenance, etc.)

where the confusion comes in, though, is that point costs for TRADING OUT of DVC for cruises or nights at non-DVC resorts like the grand floridian or a location in europe CAN (and often do) increase through the years.

...which is part of the reason why people will say you get the best value for DVC by using it for stays at DVC resorts.

 

[salmoneous]

By the time the other DVC resorts were built, DVC had a good idea of how point usage would be used, and my thought is they did a better job of initially setting the correct point requirements so as to balance occupancy, and thus has not seen any requirements for a readjustment.

I would not expect any changes in the point chart makeup unless there is a noticeable shift in the way members use their points.

Disney has built a number of new resorts at WDW since the OKW rebalancing and has kept the same point patterns. It does sound like they are happy with it.

California and Hawaii will have very different demand patterns. It will be interesting to see if they get the point charts right the first time, or have to rejigger things. I think Hawaii is going to be especially tricky.

Opps - sorry to get off track a bit there. Back to the OP, as others have said, they can move point costs around. But if they make some days more expensive, they have to make others less expensive. Large scale movements, especially at the WDW-resorts, are unlikely.

 

[Anthony1971]

In other words, assume I pay $21600 today to purchase 225 pts for AKV (which btw is limited for 50 years as opposed to traditional time share that can be 'lifetime').

Jim

This point can go either way. In the end DVC resorts will revert back to Disney at the end of the contract (although they can demolish them as well at our expense). Dinsye also owns a percentage of the resorts. Both mean Disney has an interest in the upkeep and ratings beyond the owners. The same after 50 years or what ever is left on your contrcat you have nothing. In a traditional time share you own it for life but at what point does a resort become a Liability? The easiest way to put it is to look at all the hotels outside Disney that are roughly the same price, you would want to stay at the newest one even if it cost you a few dollars more. There are exceptions to this but a 75 year old resort will require a lot of updates to compete with a 5 year old resort and as owners you will need to pay for these updates. There are lists of scenarios but before you write of 50 years ask yourself if you would like to own a week in a cabin your family vacationed at every year while you were growing up because your parents bought there and willed it to you?