Random Thoughts On Rentals...

[PamOKW]

I've got several different thoughts that are somewhat intertwined....

With the increase in rentals to non-DVC members I'm unsure why the "per point" remains the norm. This means nothing to the person renting and undervalues our accomodations. If people are sticking with the "per point" pricing I really think we do need to move toward getting the price above $10 per point. It's been there for quite a few years now while the cost of the rooms, the cost of dues and the cost to buy into DVC have increased (not to mention the cost of gas and everything else that we all buy). I realize that we can't band together to set rates and that's not what I'm suggesting. I'm just not sure how to talk about the subject without referring to "we" -- just to make the point.

I haven't had time to exhaustively look at the rate charts but a quick look at Regular Season pricing for a studio at OKW and BWV shows the 2006 pricing to be up roughly 12% over the cost in 2001. A regular season studio at BWV will be $345 per night (plus 12% tax) -- nearly $400 per night. Why don't we price it 50% off -- $200 per night or some real number rather than the arbitrary $10 per point which allows the rooms to rent for as low as $90 per night? Even pricing at rates comparable to the moderate rates would be more "in the market".

At a minimum, I think we should at least look for the 12% resort rate increase and move toward at least $11 per point.

A second comment -- also with just a cursory look at 2006 rates. Since 1997, the "regular" season room rate for an OKW studio has gone up 43% from $209 to $299. Dues during this time have gone up 17%. I think buying DVC will only become a smarter decision as time goes on and tourism returns to normal levels.

 

[dallastxcpa]

I have never rented my points, but I think part of the problem is described in this post:

http://www.disboards.com/showthread.php?t=846922

Many people even feel that renting is not worth it past a certain level because they can get various incentives through Disney, such as free dining.

So even though the market rate on the room is $400/night they may be getting free dining for their family of 4 or like the Fairy Tale package they ran two years ago if they book a four or five night package they get to stay for eight giving them three/four additional days for free. (that special covered accomodations and park tickets).

Just a thought.

 

[donald...really]

Hi Pam-

Yeah, I don't get the renting per point thing either. We figure out how much the room would cost if our renter goes through Disney, and then we knock off some cash, making sure we are still getting what we think we deserve for the room. They get a great deal and are THRILLED to be saving all that money. We don't even mention how many points the room "costs" us. I don't even think we mentioned that we pay in points. Like you said, the points per room are meaningless to the renter. The cost per point on one of our latest transactions worked out to about $12 per point.

 

[PamOKW]

Dallas you are 100% right about other conditions that influence the price. It is really what the renters are willing to pay. Incentives from Disney may make that more attractive. Disney themselves warn that it's difficult to try and compete with them on rental prices.

And, there is the "risk" factor involved in not being able to as easily cancel a trip or to finance it on a credit card. And the thought of less housekeeping is a stumbing block until you see for yourself it's not a big deal.

My feeling though is that the pricing should move toward "pricing" and away from per point set at the same level year after year. Let someone get the pricing on their Disney accomodations -- A standard view room at the BC would run $374 per night (with tax) in October. A studio at BCV priced "per point at $10" would be $120. It seems that offering a studio in the $150-$200 range might spark just as much interest as pricing it at $120.

But it's true -- in the end people can only get what the renter is willing to pay.

 

[Dean]

There needs to be a certain amount of discount to make the risk worthwhile. For some options, $10 per point is on the high side, for other times, it's too low. As for per point rentals, I don't think we'll ever see anything else. The only way to get away from it would be to reserve first then rent it out. I don't know about you, but if I go that route, I'm getting the time I can rent the easiest and for the highest amount of money. Besides, the per point tells renters you're consistent and allows them to judge rental prices before they find a person that will rent to them. While you're renting the reservation and not the points themselves, it's still easier for many people to think on a per point cost basis.

 

[mikesmom]

There's other issues I think muddy the waters. Last year we had family illness, had to cancel trips and rent out points. I had people trying to negotiate downward and folks saying "but I see points at $8 each on the Rent/Trade boards". It's tough to explain to people that just because someone posted that dollar amount doesn't mean they know what they are doing as far as actually getting a reservation.

You know and I know, along with anyone with long term experience with DVC knows, that when someone posts at 5 months out looking for a Standard Studio for the first week of December or a Grand villa at BWV during Food & Wine they ain't gonna' get it, not at any price (barring a miracle). The person who responds (usually with very few posts in history) with a "I can help you, $8 point" or "$9/point, email me privately" isn't going to be able to come through with the needed reservation. You know it, I know it, but very likely the inexperienced renter doesn't know it, nor the potential rentee, nor (and here's where we muddy the waters) the hundreds of casual readers of the post and potential renters. The crash and burn takes place off board and readers are left with the impression that these rentals actually take place.

I'm not trying to lobby for point rentals at any particular price (if I have my way we will never have to rent again!), it's just a trend I have observed. Also, I do kind of feel bad for the folks who get their hopes up for a deal that can't be done.

 

[Johnnie Fedora]

Many who rent out points are just looking for a quick and lazy transaction. As long as they get a little more than what Disney gives them for points, they think they are doing great.

If you are patient, you can get $12-15/pt, even here on the RT board. I have rented by points and by confirmed reservation. The confirmed reservation method is easier, especially if you book and rent a peak time.

 

[Pa@okw95]

Renting should not be allowed.

 

[cruise-o-matic]

Renting should not be allowed.

You can't get any more randommer from your OP than that...

 

[CharlesTD]

I am all in favour of the higher cost for the rentals that is why won't use the R/T board way to many people want points for next to nothing. We prefer to make high demand reservations and rent them accordingly usually offering us much greater return on the accomodation. We tend to lean towards e bay and otehr avenues like postings at my office they are easy sells and people still feel they got a discount so it is a win win for both my family and the family that rents.

 

[Dean]

Renting should not be allowed.

But it is. It's legally permitted (based on case law) and it's written into the POS as permissible.

 

[Wish I lived in Fl]

Dall A standard view room at the BC would run $374 per night (with tax) in October. A studio at BCV priced "per point at $10" would be $120. It seems that offering a studio in the $150-$200 range might spark just as much interest as pricing it at $120.

Would a standard room at BCV have two beds or the studio set up of one bed and a foldout couch?

I love SAB but hate only having 1 real bed.

 

[JohnNJ]

One thing I always did when renting points from a DVC member is add in the extra cost for daily maid service when comparing point cost to rack rate. So the actual cost of a 12 point studio night is $120 + $25 = $145. Still a big bargain compared to rack rate. Of course, there is always the risk factor that plays a part and effects the price.

Making the "average" rental $12 per point is still very reasonable but everyone would have to go along. The people that lower their price for a quick sale throw the whole thing off. I'm not sure how to change the mindset.

 

[mama03]

We have only rented out points twice since our purchase 1999. We rented only because we planned other big vacations and were not going to use at Disney those particular years. I do agree that is should be more than $10.00 p.p. though. I also think that we as owners could combine and market or create a travel service that would take care of everything for us if we wanted to rent. This way we dont have to sit on pins and needles waiting for our payment, after we have made reservations etc.. Just my thoughts.

 

[Wish I lived in Fl]

Some people only transfer points so then the reservation is no longer your worry. The receiver owns DVC so knows the ropes.
Would DVC owners be willing to pay more than $10 per point if they needed extra?

 

[CharlesTD]

Yes I would if I needed the points mind you I never have to worry about that as my in laws have points also and never use their yearly allotment so we could just use thiers LOL.