What am I missing? Cash price better than using my points?!?

[Pongo111]

Hi! Sort of a DVC newb here so thanks for any feedback. Home resort Riviera. I thought I would try my luck with 5 nights at HHI for the summer and to my surprise I got a Sun-Thurs night stay in a 1BR villa at the opening of the 7 month booking window. It’s 147 points. Yay me. I was curious so decided to search the cash price. Also to my surprise same nights (in the summer, mind you) are available for cash and at approx $2100, called member services to confirm and yes nights are available for cash and with discount, total is $1550 approximately. So my question is, why the heck would I use 147 of my points when I can sell that many for $2700 assuming I would get $18 a point?? Am I missing something here???
Thanks for any insight!
-Pongo

 

[Genie+]

1BRs generally are the least economical DVC option compared to cash.

Rack rates typically have 1BRs as 25%-50% higher cost than studio, while DVC point charts typically have 1BRs as 100% to 150% higher cost than studios.

I don’t think you’re missing something here. The better option in your case is cash. Not only does the discount make it cheaper than using your points, the terms may be better as well. But for somebody who doesn’t want to deal with rentals, has already gotten great value out of their contract and desires a 1BR next trip - the convenience might make DVC the preferred option for them.

 

[Judique]

1BRs generally are the least economical DVC option compared to cash.

Rack rates typically have 1BRs as 25%-50% higher cost than studio, while DVC point charts typically have 1BRs as 100% to 150% higher cost than studios.

I don’t think you’re missing something here. The better option in your case is cash. Not only does the discount make it cheaper than using your points, the terms may be better as well. But for somebody who doesn’t want to deal with rentals, has already gotten great value out of their contract and desires a 1BR next trip - the convenience might make DVC the preferred option for them.

I've considered this a stretching my points option several times in the years I've owned at Hilton Head as I don't have very many points but love staying there.

 

[eticketplease]

We didn't want to pay cash for the entire trip. We also got a Sun - Thur this summer in a studio but paid cash for Sat night. I could not handle the 12 points extra for a Saturday night in a Studio.

The way our travel plays out we always end up going to a resort at the most (or close to it) expensive time....

Edit: We had the points I just couldn't stomach forking over 12 more when we got the 25% off cash discount.

 

[eandt]

Hi! Sort of a DVC newb here so thanks for any feedback. Home resort Riviera. I thought I would try my luck with 5 nights at HHI for the summer and to my surprise I got a Sun-Thurs night stay in a 1BR villa at the opening of the 7 month booking window. It’s 147 points. Yay me. I was curious so decided to search the cash price. Also to my surprise same nights (in the summer, mind you) are available for cash and at approx $2100, called member services to confirm and yes nights are available for cash and with discount, total is $1550 approximately. So my question is, why the heck would I use 147 of my points when I can sell that many for $2700 assuming I would get $18 a point?? Am I missing something here???
Thanks for any insight!
-Pongo

Was the discount you received thru MS or via the Disney website with the public discount? We have never tried a cash stay thru MS so not sure how it works

 

[Mle8308]

Hi! Sort of a DVC newb here so thanks for any feedback. Home resort Riviera. I thought I would try my luck with 5 nights at HHI for the summer and to my surprise I got a Sun-Thurs night stay in a 1BR villa at the opening of the 7 month booking window. It’s 147 points. Yay me. I was curious so decided to search the cash price. Also to my surprise same nights (in the summer, mind you) are available for cash and at approx $2100, called member services to confirm and yes nights are available for cash and with discount, total is $1550 approximately. So my question is, why the heck would I use 147 of my points when I can sell that many for $2700 assuming I would get $18 a point?? Am I missing something here???
Thanks for any in sight!
-Pongo

Because why would someone want to pay you $2700 when they could go on the Disney site and pay $2100 before any discounts? Most people don't even know about renting points or how to do it.

 

[tjkraz]

Does the $1550 cash rate include taxes?

Does the $2700 include broker fees and/or some accommodation for your time and energy? Also it's taxable income, so consider that financial impact.

 

[Genie+]

Because why would someone want to pay you $2700 when they could go on the Disney site and pay $2100 before any discounts? Most people don't even know about renting points or how to do it.

I think they meant renting at $18pp for a different resort in 7 month window as people do here on rent/transfer board.

 

[Mle8308]

I think they meant renting at $18pp for a different resort in 7 month window as people do here on rent/transfer board.

Duh, that makes sense, clearly wasn't thinking that way! That's what I would do!

 

[Pongo111]

Because why would someone want to pay you $2700 when they could go on the Disney site and pay $2100 before any discounts? Most people don't even know about renting points or how to do it.

Let me clarify - someone would not pay $2700 for my points to stay at HHI, but they certainly would pay that and more for a room at WDW which in some cases is $5000-$7000 cash for the same DVC room. That is why selling points is so lucrative if you can’t use them yourself. I’ve sold multiple times and the points quickly. The two largest renter sites are easy to work with making it convenient.

 

[Mle8308]

Let me clarify - someone would not pay $2700 for my points to stay at HHI, but they certainly would pay that and more for a room at WDW which in some cases is $5000-$7000 cash for the same DVC room. That is why selling points is so lucrative if you can’t use them yourself. I’ve sold multiple times and the points quickly. The two largest renter sites are easy to work with making it convenient.

Yes, I understand now! I’d definitely sell the points to pay for HHI in your situation. Stay for cash, get daily housekeeping, and make a profit!

 

[eticketplease]

Was the discount you received thru MS or via the Disney website with the public discount? We have never tried a cash stay thru MS so not sure how it works

My trip there was not a public discount showing. I wasn’t logged in so it didn’t see DVC, D23, Visa so there could have been a discount if I was. I just called member services and asked how much the room was and if there was a discount for DVC.

 

[Genie+]

The discount through DVC Member Services is usually 25%. You have to call and see what’s available to book.

 

[DisTravels]

Hi! Sort of a DVC newb here so thanks for any feedback. Home resort Riviera. I thought I would try my luck with 5 nights at HHI for the summer and to my surprise I got a Sun-Thurs night stay in a 1BR villa at the opening of the 7 month booking window. It’s 147 points. Yay me. I was curious so decided to search the cash price. Also to my surprise same nights (in the summer, mind you) are available for cash and at approx $2100, called member services to confirm and yes nights are available for cash and with discount, total is $1550 approximately. So my question is, why the heck would I use 147 of my points when I can sell that many for $2700 assuming I would get $18 a point?? Am I missing something here???
Thanks for any insight!
-Pongo

Points expire, cash does not - so timeframe can impact the decision as well.

Good to check value per point and maximize your value.

 

[ClaraOswald]

The discount through DVC Member Services is usually 25%. You have to call and see what’s available to book.

Is that only for people who get the direct owner perks?

 

[CarolynFH]

Is that only for people who get the direct owner perks?

Nope, all DVC owners are eligible. Availability can vary a great deal, though.

 

[hhisc16]

Hi! Sort of a DVC newb here so thanks for any feedback. Home resort Riviera. I thought I would try my luck with 5 nights at HHI for the summer and to my surprise I got a Sun-Thurs night stay in a 1BR villa at the opening of the 7 month booking window. It’s 147 points. Yay me. I was curious so decided to search the cash price. Also to my surprise same nights (in the summer, mind you) are available for cash and at approx $2100, called member services to confirm and yes nights are available for cash and with discount, total is $1550 approximately. So my question is, why the heck would I use 147 of my points when I can sell that many for $2700 assuming I would get $18 a point?? Am I missing something here???
Thanks for any insight!
-Pongo

As a DHHIR owner, I agree that you need to look at cash prices vs your points at DHHIR.
Sometimes, it can be cheaper on cash depending on the room and time of year.
Normally for DHHIR, they use the 60 day window to offer cash rooms.

 

[tjkraz]

Nope, all DVC owners are eligible. Availability can vary a great deal, though.

Agree.

In theory, rooms are only supposed to be made available with the DVC cash discount if historical booking trends show that the room will not fill with owners using points.

 

[ClaraOswald]

Agree.

In theory, rooms are only supposed to be made available with the DVC cash discount if historical booking trends show that the room will not fill with owners using points.

So trying to get a HHI room with cash for a June trip would be pretty unlikely, I imagine.

 

[CarolynFH]

So trying to get a HHI room with cash for a June trip would be pretty unlikely, I imagine.

You’ll never know unless you try.