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Old 02-20-2018, 02:11 PM   #1
jcharles
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Default Price increase topic...when will rental prices reflect the increase?

Many of you have seen the Jan 2018 price per point increase. Pretty big increases. So for the owners, when we will begin to enjoy charging a higher price to rent out our points? Especially wondering when David’s DVC will make any adjustments. Seems like a good thing for “existing” owners. But not great for newbies considering a direct buy in.
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Old 02-20-2018, 02:30 PM   #2
pdude81
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IIRC David's raised prices somewhat recently for reimbursement and added AKV to the list of places you could get an extra bit of cash in the 11 month window. It would probably be better to align your thinking of rental price increases to coincide with the OTUP rates than with the direct point cost of sold out resorts.
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Old 02-20-2018, 02:32 PM   #3
Mickeyfan0805
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I'm not sure I would anticipate a direct correlation here. Rental prices, I would think, would tie more to the room rate for the resorts than the buy-in rate for DVC. My sense is that there are two general groups that rent DVC...1) Those that want deluxe/villa accommodations onsite but don't want to buy into DVC and 2) Those that are considering buying DVC but want to test it out first. There are others, but I think these cover the primary market.

Group 1 is not remotely affected by DVC point prices - they are comparing DVC rental to DVC direct and/or deluxe resort direct.

Group 2, if anything, would be adversely affected by the uptick in prices. I don't see a slackening in demand, but prices certainly won't serve to INCREASE the number of people looking to test the waters (higher prices, in a vacuum, means less demand).

I'm not suggesting rental prices won't go up, they likely will as the resort prices increase. But I don't think the change in the purchase price for DVC direct is what will drive it.
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Old 02-20-2018, 02:38 PM   #4
DVCERSINCEDAY1
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don't forget that mf's have gone up too. a dollar doesn't go as far as it did last year at disney.
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Old 02-20-2018, 02:38 PM   #5
jcharles
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I see your point. Prices will possibly be more driven by the current room rates.
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Old 02-20-2018, 02:39 PM   #6
DeniseKayC
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Quote:
Originally Posted by Mickeyfan0805 View Post
I'm not sure I would anticipate a direct correlation here. Rental prices, I would think, would tie more to the room rate for the resorts than the buy-in rate for DVC. My sense is that there are two general groups that rent DVC...1) Those that want deluxe/villa accommodations onsite but don't want to buy into DVC and 2) Those that are considering buying DVC but want to test it out first. There are others, but I think these cover the primary market.

Group 1 is not remotely affected by DVC point prices - they are comparing DVC rental to DVC direct and/or deluxe resort direct.

Group 2, if anything, would be adversely affected by the uptick in prices. I don't see a slackening in demand, but prices certainly won't serve to INCREASE the number of people looking to test the waters (higher prices, in a vacuum, means less demand).

I'm not suggesting rental prices won't go up, they likely will as the resort prices increase. But I don't think the change in the purchase price for DVC direct is what will drive it.
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Old 02-20-2018, 02:42 PM   #7
Carol
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Rental prices are more about what Disney is charging for hotel rooms, than owner costs.

Unless Disney hotel price increase, I don't see rental prices increasing much, if any. In fact, if Disney has to offer discounts, rental prices will probably decrease.
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Old 02-20-2018, 02:44 PM   #8
FessParker1
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Quote:
Originally Posted by DVCERSINCEDAY1 View Post
don't forget that mf's have gone up too. a dollar doesn't go as far as it did last year at disney.
MF's, ticket prices, dining plan, my blood pressure.... it all goes up.
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Old 02-20-2018, 02:58 PM   #9
tomandrobin
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Rental prices are driven by and effected by several items that determine the rental price.

1. Cash prices of the Disney Resorts
2. Demand of DVC rooms
3. Maintenance fees
4. Economy

The sales price of the resorts has little bearing on the rental prices. For years, the going rental rate was $10 pp, give or take a point. The past few years there has been a steady climb of rental rates to an average of $15 pp.

I do not think we will see prices rise to $20pp as an average for a another 10 years.
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Old 02-20-2018, 03:34 PM   #10
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OTUP has gone up to $17/pp so I will see that as a base price. Premium resort and home resort bookings should be charged more then that. Actual price will depend upon market. As others have said direct buy in does not dictate rental prices.
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