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Old 10-30-2017, 10:39 AM   #1
bgoss16
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Default DVC Point Inflation

I am hoping someone can explain this to me.

If you look at historical point charts , you'll notice that the same rooms cost more points over time. How could that be?

My understanding was that the point pool across the DVC portfolio was fixed. DVD charges more per point for new sales, but those points once bought, should be as valuable as they were in 2009, for example.

Thanks to anyone who can help me understand this economical riddle.
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Old 10-30-2017, 10:47 AM   #2
carolina_yankee
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Originally Posted by bgoss16 View Post
I am hoping someone can explain this to me.

If you look at historical point charts, you'll notice that the same rooms cost more points over time. How could that be?

My understanding was that the point pool across the DVC portfolio was fixed. DVD charges more per point for new sales, but those points once bought, should be as valuable as they were in 2009, for example.

Thanks to anyone who can help me understand this economical riddle.
The pool is not fixed across the portfolio, only across the resort.

So, different resorts can have different point charts/per-night room costs and changes at one resort have no bearing on another resort.

However, point charts can be altered within a resort provided the total number of points does not change.

Example: you up the cost of one room category, location, season, or day of week, then you have to reduce it elsewhere. Say, increase studios by 1 point per night, but reduce 1 bedrooms by 1 point per night, etc. It's more complex than that, I'm sure, but that's the principle.

As an SSR owner, my points cost per night for studios that we want has gone up as charts have been re-balanced for season and location. It hasn't really affected our touring patterns, partly because we stay at multiple resorts so don't really focus on specific per night costs, and partly because we bought enough point to allow for wiggle room.

Point chart adjustments have screwed with others, though, who bought an exact amount get X nights in X accommodations at X resort in X season by banking and borrowing. One minor adjustment, and suddenly they don't have enough points for their 7 night vacation.

The POS warns that can happen, so wisdom dictates never by the exact number of points you need if any changes in your vacations season or the points charts will leave you short.

Dirk
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Old 10-30-2017, 11:22 AM   #3
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Originally Posted by bgoss16 View Post
I am hoping someone can explain this to me.

If you look at historical point charts, you'll notice that the same rooms cost more points over time. How could that be?

My understanding was that the point pool across the DVC portfolio was fixed. DVD charges more per point for new sales, but those points once bought, should be as valuable as they were in 2009, for example.

Thanks to anyone who can help me understand this economical riddle.
I think some of the confusion is that you may be looking at a specific date and not a week.

In the past, weekend nights were much higher in terms of points per night than mid week trips, and this resulted in members paying cash for Fri-Sat nights and used DVC Sun-Th nights. It was cheaper to pay cash than use points for some weekend nights.

A few year ago, DVC rebalanced the points charts to lower the cost for Friday and Saturday nights and increase the cost for Sunday to Thursday nights. this is great news for people that stayed over the weekend and was bad news for people that only went Sunday to Thursday.

Me personally, I have been pretty happy with the decisions DVC has made and only miss the free park tickets and free valet parking, but understand why they got rid of those benefits.
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Old 10-30-2017, 12:21 PM   #4
Jasonv1
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The larger question is now that DVC is (for now) done developing monorail DVC resorts, will new resorts such as Riviera have a more friendly point chart.

Is CCV evidence of this? Or is it an anomaly because they needed to match the BRV points chart?

If DVC does indeed lower the CCV MF's that kills the idea of the CCV points chart being effectively subsidized by expensive MF's. I think when those MF's were announced many thought that they were the reason why CCV rooms required fewer points than recently sold monorail DVC resorts (a theory supported by the fact that on a room cost per point basis CCV and PVB were similar due to those much higher MF's at CCV).

I suspect that with the new gondola DVC will consider the Riviera as attractive as a monorail resort, and as a result it will inherit a similar point chart.
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Old 10-30-2017, 03:22 PM   #5
Carol
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Originally Posted by Jasonv1 View Post
The larger question is now that DVC is (for now) done developing monorail DVC resorts, will new resorts such as Riviera have a more friendly point chart.

Is CCV evidence of this? Or is it an anomaly because they needed to match the BRV points chart?

If DVC does indeed lower the CCV MF's that kills the idea of the CCV points chart being effectively subsidized by expensive MF's. I think when those MF's were announced many thought that they were the reason why CCV rooms required fewer points than recently sold monorail DVC resorts (a theory supported by the fact that on a room cost per point basis CCV and PVB were similar due to those much higher MF's at CCV).

Interesting. I just thought the fees for CCV were higher due to expected increase in property taxes for 2018 and that the fees for BRV would catch up when 2018 fees were announced. I still think that. Guess we'll find out soon.
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Old 10-30-2017, 03:24 PM   #6
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Interesting. I just thought the fees for CCV were higher due to expected increase in property taxes for 2018 and that the fees for BRV would catch up when 2018 fees were announced. I still think that. Guess we'll find out soon.
The guess is actually that CCVC will go down for next year based on the property taxes. We'll see in just over a month
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Old 10-30-2017, 03:25 PM   #7
Jasonv1
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The CCV property taxes were much lower than expected; there was a discussion about it here.

What no one knows is if the dues will be lower as a result, although based on the story they could potentially lower them quite a bit.

Quote:
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Interesting. I just thought the fees for CCV were higher due to expected increase in property taxes for 2018 and that the fees for BRV would catch up when 2018 fees were announced. I still think that. Guess we'll find out soon.
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Old 10-30-2017, 07:32 PM   #8
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Talking MF dues always lower while they are selling....

MF dues always lower while they are selling....

and then once it's sold out, the MF dues go up accordingly to match the older resorts.....

JMHO, Goldi
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Old 10-30-2017, 07:41 PM   #9
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Originally Posted by Jasonv1 View Post
The larger question is now that DVC is (for now) done developing monorail DVC resorts, will new resorts such as Riviera have a more friendly point chart.

Is CCV evidence of this? Or is it an anomaly because they needed to match the BRV points chart?

If DVC does indeed lower the CCV MF's that kills the idea of the CCV points chart being effectively subsidized by expensive MF's. I think when those MF's were announced many thought that they were the reason why CCV rooms required fewer points than recently sold monorail DVC resorts (a theory supported by the fact that on a room cost per point basis CCV and PVB were similar due to those much higher MF's at CCV).

I suspect that with the new gondola DVC will consider the Riviera as attractive as a monorail resort, and as a result it will inherit a similar point chart.
My belief is once the CCV is sold, chart will be re-balanced and Studio-2 bedroom will require more points then today. As of now GV and Cabins are in line with any new resort.
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Old 10-30-2017, 08:10 PM   #10
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DVD charges more per point for new sales, but those points once bought, should be as valuable as they were in 2009, for example
They are most simply. For example, if you purchased 210 BLT points at $120 per point in 2009 to stay in a Standard one bedroom a choice season (ignoring the adjustments) those points nearly 10 years later will still get you the same one bedroom. In another ten years, you still will be able to get that same one bedroom for the price you paid back then. Of course, if you go to newer resorts which cost more to buy in/build/etc. It will cost you more points. If you go to older resorts, you are technically paying far more than the person who bought in for half that cost in the past. To me, this is how the system all balances itself.
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