4. Once in a Lifetime vacations are available via points
Direct Disney DVC purchases enjoy access to a special classification of Disney resorts. They are notated as the Disney Collection, The Concierge Collection and the Adventurer Collection. The list of hotels impacted is basically all of the ones that are Disney properties not included in the list of 13 current and upcoming DVC resorts. Are you a fan of EuroDisney? You can actually redeem DVC points for a stay at Disneyland Hotel in Paris, as well at other Disney resorts onsite. The same is true of Hong Kong and Tokyo’s Disney theme park hotels as well as the ones at Disneyland in Anaheim that are not already included, which is just the Grand Californian.
Similarly, there are exotic trips across the world that can be booked using DVC points. If you have ever dreamt of traveling to Alaska or the Galapagos Islands or Australia, a massive volume of DVC points will “pay” for your trip. Also, if your kids are massive Frozen fans – and let’s face it, if you have kids, they are – there is even a Norwegian vacation that tracks the lands from the movie.
The potential vacation to Norway brings us to another point. Points can be exchanged trips on Disney Cruise Lines including the Disney Fantasy, the Disney Magic, the Disney Wonder and the Disney Dream. Again, the cost in terms of points is exorbitant.
5. Determine how significant this advantage is to you
Let’s examine the cost to determine the intrinsic value of this DVC direct “advantage. As I mentioned in a prior example, a week’s stay at Old Key West in Orlando, Florida costs 99 points for a mid-May visit. A single night at Tokyo Disney costs 66 points while Disneyland Paris would cost at least 44 points. So, you can stay at Walt Disney World for a week or EuroDisney for two nights, using the same amount of points.
Obviously, the cost of points for the Disney Collection is absurdly high. You are probably wondering about cruises. The truth is that they are, if anything, an even worse use of DVC points. A three-night sojourn on a Disney cruise would cost at least 62 points for a standard inside stateroom. If you don’t want to have a room akin to Jack Dawson’s in Titanic, the cost jumps up to 94 points for a “deluxe stateroom with navigator’s verandah.”
If you want to compare apples to apples, a seven-night cruise to the Eastern Caribbean comes with a hefty price tag of 177 to 229 points. And by the way, that cost is per person, presuming double occupancy. So, double all of the cruise points mentioned above. Suffice to say that while you theoretically CAN take a cruise using your DVC points, you really, really should not.
In fact, the more financially viable solution that many members use is to exchange their points via a service such as Dave’s DVC above in exchange for $11 per point and then use that cash to purchase the same cruise. The same cruise that costs 400 points for a week would garner $4,400 in cash in a DVC points trade. When you pay for the room out of pocket, the current cost is roughly $3,360, a saving of over a thousand bucks, money that would pay for either your travel or your spending money on the trip. I think you can infer that I do not see this advantage as a meritorious one.
6. Know that the process is faster with zero chance of rejection
Another way Disney deters customers from buying is through a process known as Right of First Refusal. Effectively, if you try to buy via resale, Disney takes 28 days to decide whether they like the acquisition you are attempting to make. There is a chance that they will snag your timeshare right out from under you. Even if they do not, your ownership is delayed for a month for no good reason.
A good rule of thumb is to expect a 60 day delay from the point you confirm a resale purchase and sign the paperwork to the moment when your DVC points are in your account. During that timeframe, you cannot make reservations using your points, because they are not even in your account yet. It is a clever deterrent Disney uses.
Conversely, buying through Disney is a near-immediate transaction. There is no Right of First Refusal since you have ponied up on the higher price tag. You will have the points in your account within days, and the sales representative who handles the transaction can oftentimes make your reservations during the conversation. In fact, they even have the ability to provide you with a reservation that displays as booked via member services, the company’s way of rewarding people for paying full price.
All in all, I view the advantages of direct purchase through Disney as negligible at best, with one caveat. Many people simply love Disney. If you, like my wife, are one of these people, the sheer joy of buying through Disney may supersede all the other advantages listed here or the ones for resale purchase in the next column.
Comments
The one thing the author does not mention: Disney is not losing a dollar or even breaking even nor will they ever. The cost for the points up front is $13K for 100 points. There is a yearly maintenance fee of around $565 times 50 years. Keep in mind the maintenance fee can change and if Disney is losing on their 150% profit on the DVC deals you know the fee is going to go up. So now you bought DVC points and you are committed to a minimum of $41,250 for the 50 year experience (sell the points later- let’s not get into that). So now you prepaid for about 35 weeks of Disney vacations. Come on now, who is going to Disney 35 times between the age of 30-50-? Don’t you think you could find better rates online for your destinations or even have other places to go where again better rates on line if you shop well-? What about the money that you could make to pay for these vacations by “INVESTING” all this Disney fun dollars-? Time share is a racket regardless who’s selling them.