Since this year is the 25th anniversary of the Disney Vacation Club, let’s take a look back at the past 25 years and learn how DVC started, the successes, failures and changes from 1991 to today. Learn about planned resorts that never came to be, how DVC’s grand expansion vision was curtailed, and how DVC has changed over the years.
Read the most thorough and extensive DVC history I am aware of.
Click HERE to access it.
Our special guest Paul Little of the DVC Rental Store gives his advice to DVC members who are thinking of renting out their points.
For a DVC member, purchasing a Disney Vacation Club membership is a significant financial investment. Due to life circumstances, a member may find that there are some years when they cannot travel to Disney and need to try to recoup some of the funds that have have invested in that year’s allotment of points. Renting Disney Vacation Club points to a guest is a great way to accomplish this.
The question is, what is the best way to rent DVC points? There are two paths that a DVC member might take to rent their unused points.
They might choose to rent via a private rental with an individual or they may choose to work with a DVC rental broker to assist them in renting points. So which of these is the best path? There is no set answer. In the end, a member will want to weigh all of their options and decide what works best for them based on the type of DVC owner they are.
Generally, there are two types of DVC owners when it comes to renting points.
So which is right? Which is best for you? As mentioned earlier, there is no set answer. The best way to view a DVC point rental broker and their role is to compare them to other brokerages. Some homeowners are happy to sell their home without the help of a real estate agent. Others would never consider doing so. Some investors enjoy day-trading or handling their own investments. Others would not know where to start and decide it best to utilize a stock broker. Likewise, the owner of rental property might employ a property manager to oversee the rental of their property while others would take this role on themselves.
There are many tasks involved in the rental of points:
The above tasks can vary from guest to guest. In our business, we find that there are guests that know exactly what they want. They know how renting DVC points work and are extremely “low maintenance”. On the flip-side, there are those guests that our Travel Advisors exchange in excess of 40 emails and phone calls with before they book. Even after the reservation has been made, some guests may be nervous about the process and may reach out to the member several times just to check and make sure everything is okay. They may even panic if the member’s response is delayed.
A DVC member can expect to deal with guests that are shopping for the best price in a private rental. During the initial vetting, low-ball offers can be expected. Sometimes a renter may move on to another member if they find better pricing.
You’ll want to consider how much time and energy that you want to invest in renting your points. Some members love being a “Travel Advisor” for a guest. Some don’t have the desire or in some cases the patience and prefer to pass these tasks along.
All of the above is handled for the DVC member when renting their points through a DVC point broker.
Renting DVC points, whether through a private rental or via a DVC point broker is a relatively safe transaction. With that being said, there are risks and problems that may arise. We see them in our business every day. A guest may desire to cancel their reservation and may choose to cancel their payment if made via PayPal (or credit card if the member allows in a private rental). This can put the DVC member’s points at risk. In the least, the member would then have to begin the process again with another guest in a private rental.
A DVC Member’s full payout for their points is guaranteed when working with a DVC point broker. Even if there is a cancellation. In fact, we will work to re-rent the reservation and will pay the member for the extra effort to handle the administrative duties of switching the reservation to the new guest.
A broker’s reputation is their most valuable asset. The two largest DVC rental services are accredited by the Better Business Bureau with an A+ rating. In addition, we have been named a Better Business Bureau “Ethics-Minded Business”. In order to maintain this sterling reputation, a DVC point broker will take the time and has the means to enforce the provisions of the rental agreement to protect the member and the guest. In a private rental, the renting DVC member will want to consider prior to renting, to what extent and by what means they would enforce the terms of the rental contract.
I have heard the comment numerous times. “I will have to pay taxes if I rent my points through a broker”. In actuality, there is no difference regarding taxes whether a DVC member rents their points via a private rental or a via a DVC point rental broker.
If you file a US tax return you are obligated to report any rental income whether you rent your points through the DVC Rental Store, another DVC rental service or through a private rental. This applies regardless of where the DVC point rental broker is located.
You should be aware that income realized from the rental of your DVC points may be able to be reduced by expenses you paid relating to your DVC membership. For example, if you paid dues relating to the points you are renting, they will be deductible. Also, the original cost of the membership divided by the life of the membership should also be able to be deducted. These two items should reduce your taxable income significantly leaving just a small portion that is actually taxed. (This is not to be construed as tax advice, it is only an example. Please see IRS forms or an accountant/tax advisor for your individual situation and advice).
To comply with the IRS, all DVC point rental brokers are required to issue 1099 Forms at year end. Any that do not are putting them and possible the renting member at risk.
Generally, the DVC member can expect to receive more money for their points when renting their points via a private rental compared to renting through a DVC point rental broker.
The lower payout from the broker allows for their compensation for the services rendered in assisting to rent the DVC member’s points. As mentioned earlier, the DVC member will want to consider the time, effort and safety concerns to decide if it offsets the difference in payout between a private rental and that the DVC point rental broker is paying.
I would suggest that you only consider two options when renting your points:
About the Author
Paul Little resides in his hometown of Wilson, North Carolina and is the owner of the DVC Rental Store, the largest DVC Point Rental Broker in the United States.
Join the discussion of this post in our DVC discussion forum here. Or, leave a comment below. Read another article that describes the process of renting out your points.
Reliable sources are reporting upcoming price increases for both Aulani and the Polynesian.
EFFECTIVE: May 4, 2016 for new buyers and June 1, 2016 for current members
Both will be increasing from $168/point to $171/point.
Join the discussion here.
Our special guest Nick Cotton of DVC Resale Market gives us his analysis of DVC resale price changes over the past two years. If you’re thinking of buying DVC, read on.
In recent years, some Disney Vacation Club resorts in resale have experienced significant price changes while others have had relatively small to moderate gains. For example, resorts such as Saratoga Springs, Animal Kingdom and Hilton Head have increased less than $10/pt. since September 2014 while other resorts such as Beach Club, Boardwalk, Grand Floridian and Grand Californian have increased nearly $20/pt. or more in that same time.
Below is a chart summarizing the DVC resale prices every 6 months from September 2014 to March 2016:
What are the reasons for the increases, and why the disparity among the resorts?
Disney raising the prices of sold-out resorts sold directly from the developer over time can impact DVC resale prices
Unlike prices with the developer, on the resale market, prices will not change overnight based on a decision to raise prices. However, the market can be influenced over time by these pricing decisions from the developer.
For example, in January 2015 Disney raised the prices of Beach Club, Boardwalk and Wilderness Lodge each $25/pt., and since September 2014 Beach Club has increased $22/pt., Boardwalk $22/pt. and Wilderness Lodge $16/pt. And recently, we have just seen another increase on all sold-out properties outside of Vero Beach and Hilton Head anywhere from $5/pt. to $10/pt. The price changes of Beach Club, Boardwalk and Wilderness Lodge can also be seen in the graph below:
Right of first refusal (ROFR) also impacts price changes
Right of First Refusal is the option Disney Vacation Club has to purchase any resale package after a sales price has been agreed upon and a contract has been executed. When Disney becomes more aggressive at buying back at higher prices, the prices in the market rise as buyers want to avoid losing their purchase to Disney.
Two great examples of an ROFR impact are with Boardwalk and Old Key West. For example, in the Summer of 2015 Disney began exercising their right of first refusal on Boardwalk contracts that were selling as high as in the 90’s per point, which at the time was a higher price than the average Boardwalk contract was listed. This aggressive buying back of Boardwalk soon led to an average listing price of over $100/pt. In all likelihood, the ROFR strategy can probably be linked to the Disney direct price increases as well. If Disney raises the price of Boardwalk in January by $25/pt. and still has demand for it, they can raise the buy-back price by as much as still keep the same margin.
Another example of ROFR impacting a resort’s resale price is with Old Key West. The resale price of Old Key West has risen $13/pt. over the past year, which has out-paced the DVC direct price increases for Old Key West of $10/pt. in that same time. Likely influencing the resale price increase of Old Key West is that it tends to be one of the most aggressive resorts bought back, and one of the contributing reasons is probably the additional 15 years Disney adds to the deed automatically (2042 to 2057) when it’s resold by them.
In May of 2015, Disney Vacation Club stopped wait listing Members and Prospects for Grand Floridian, Grand Californian and Beach Club
Part of the reason can probably be attributed to very long wait lists to purchase any of those three resorts directly from Disney Vacation Club. This move makes sense in that for any developer the main objective is to sell the newest resorts at the highest margin possible, and carrying long wait list for a lower margin resale doesn’t make as much financial sense. With this change in policy nearly all potential buyers had to focus on the resale market for purchases of these resorts. Since the change in policy all 3 resorts have seen a steady increase in demand and as a result a rise in price.
Lack of inventory in the resale market can significantly contribute to prices rising fast
Many factors can contribute to a reduction in inventory. Internal DVC factors can influence changes in inventory such as direct prices being raised, aggressive ROFR purchasing and not wait listing for particular resorts. Also, external factors can influence inventory as well such as a good economy and continued strength of the Disney brand.
Furthermore, you can correlate many of the resorts whose resale prices sharply rose to a shortage of resale inventory at some point. Bay Lake Tower, Beach Club, Wilderness Lodge, Boardwalk and Grand Californian all had a shortage of inventory (less than 10 listings from the major DVC Resale brokers combined) on the resale market at some point in 2015, and all had a significant price adjustment as a result. Meanwhile, resorts such as Saratoga Springs and Animal Kingdom never experienced any type of inventory shortage and their resale price increases have remained fairly moderate, increasing less than $10/pt. over the last year and a half.
Disney hotel room inflation has continued to strengthen the value DVC
Some would argue why do prices of sold out properties (all properties other than what the Developer is actively selling such as Aulani and Polynesian) ever go up considering they have less and less years on them. This is a valid point, but I believe the inflation of the Disney hotel rooms have historically more than offset the loss of years. For example, when considering DVC from a financial perspective many consumers are going to make the comparison of paying for Disney hotel rooms vs. buying into the Disney Vacation Club.
Even with less years the value of DVC can still hold strong if the room rates continue to rise. Obviously, at expiration date of the deed the value of the DVC contract goes to zero, but in the meantime if someone is buying a contract for Boardwalk in the year 2032 (so 10 years left on the deed) that has enough points to stay for a week in a studio and the cost to stay a week in that studio is hypothetically $8,000 a week, there should still be value in that Boardwalk contract with 10 years left on the deed. While $8,000 a week may sound far-fetched, consider that the Contemporary rented for $29/night in 1971 and routinely commands over $500/night in 2016. That represents an approximate increase of 6.5% per year. Taking a Boardwalk studio in 2016 that rents for $3,000 week would be $8,000 a week in 2032 given the same 6.5% increase per year.
The ability to command these types of room rental rates will likely be dependent on a continued strong Disney brand, which in recent years continues to be a powerhouse with Marvel, Star Wars and continued attendance growth at the theme parks. The continued value of DVC contracts would also be dependent on the cost of annual dues as well, but you can easily make the argument Disney does an excellent job of keeping the annual dues increases moderate considering the longest running example, Old Key West (the original DVC property) has gone up a modest average of 3.7% per year since inception.
About the Author
Nick Cotton began his Disney career in 2004 as an Industrial Engineer working on a lot of exciting ways to make the “magic” more efficient. Then in 2008, he transitioned to Disney Vacation Club where he was a Senior Disney Vacation Club Guide. At DVC he became the top performing guide from 2008-2014. Nick has applied his direct expertise on the Disney Vacation Club in DVC resales as part of DVC Resale Market, which specializes in bringing buyers and sellers of DVC contracts together.
Join the discussion in our DVC forum here.
Back on December 10, we reported on the planned room refurbishments for 2016. On January 28, Disney filed a Notice of Commencement for a “Room Rehab” at Disney’s Vero Beach Resort. The end date is noted as September 30, 2016. The general contractor is New Horizon Construction Services, an Orlando-base company that has performed services at Walt Disney World, including at Saratoga Springs, as well as for Universal Orlando.
Treasure Coast Palm has reported that the room rehab has begun.
More than $3.8 million in renovations are being pumped into Disney’s Vero Beach Resort, according to plans submitted to Indian River County’s Community Development Department.
The renovations include modifications to the main inn totaling $2.7 million; two- and three-bedroom, beachfront cottages will each receive $113,000 in upgrades; and Villa 12 that contains one- and two-bedroom accommodations will receive $936,000 in upgrades. New televisions and furniture round out the upgrades throughout the resort.
Disney’s Vero Beach Resort was the first timeshare development for Disney that was built away from the theme parks in Orlando, and broke ground on July 28, 1994. The resort opened in October, 1995 with the four-story inn and vacation club villas welcoming guests. The architect for the original project was Graham Gund.
According to Disney Vacation Club spokesperson Rebecca Peddie, the renovations at Vero Beach include updated bedrooms, kitchens and bathrooms and are part of a scheduled refurbishment of the resort. Flooring and appliances will be replaced throughout the inn rooms and selected cottages and villas.
Architects Baker Barrios and General Contractors New Horizon Construction Services, both from Orlando, are overseeing the construction project. With construction at Disney’s Vero Beach already underway, Peddie said the project is slated for completion by the end of 2016.
Town Center, Disney Springs’ newest neighborhood, will offer a sophisticated mix of shopping and dining along with a promenade where Guests can relax, refresh and reconnect with each other. Town Center features Spanish “Revival” style architecture, drawing from a rich history of explorers that landed in Florida centuries ago.
The following Town Center shops are slated to open in phases beginning May 15:
Luxury of Time by Diamonds International: An industry leader of fine timepieces and jewelry in the Caribbean, Alaska and Mexico, Luxury of Time by Diamonds International will feature some of the world’s most prominent designer watch brands and a large collection of fine jewelry.
Also announced today as coming to Disney Springs are several new dining venues at Town Center overlooking The Spring, the heart and soul of the property.
At D-Luxe Burger, a Disney owned and operated concept, burger aficionados are in for a treat with gourmet burgers made from a signature blend of beef, unique toppings and freshly baked buns. All-natural chicken and vegetarian burgers round out the menu with hand-cut fries and house-made dipping sauces as the perfect complement. Artisanal gelato shakes (non-alcoholic and alcoholic) and floats will also be featured, as well as hard sodas, draft beer and cider.
Celebrating the art of pastry making, Amorette’s Patisserie features elements of an artist’s loft and art gallery side-by-side within the comforts of a small town patisserie. Amorette’s means “little loves,” which is evident in the care poured into creating the shop’s sweet treats. Timeless classic and contemporary pastries are the stars in this unique high-end pastry shop owned and operated by Disney. Custom cakes are truly a work of art and are available for immediate purchase or for pre-order. Champagne selections by the glass and handcrafted hot chocolates only a pastry artist could create allow for a truly indulgent experience.
These venues are in addition to the new restaurants currently being built in Town Center by award-winning celebrity chefs.
The newest contemporary Mexican-themed restaurant joining Disney Springs has a new name. Tablas Frontera will delight friends, family and food-lovers with exciting flavors and a contemporary Mexican experience. Warm colors, an open kitchen and a lively atmosphere frame an inviting exploration of the many delights from the kitchen of renowned chef Rick Bayless. The delicious, enticing presentation of grilled meats, seafood and vegetables served on planks (tablas) promote sharing and togetherness.
Homecoming — Florida Kitchen and Shine Bar by Chef Art Smith will showcase farm-to-fork cuisine inspired by the Sunshine State. The menu will feature Southern favorites like homemade pimento cheese, deviled eggs, low country shrimp and grits, and fried chicken.
As Guests enter Town Center around The Spring area, they will be warmly greeted at the Welcome Center, a place where Guests can relax and take in the beauty of the clear water with lush landscape along the water’s edge. Themed to early Florida settlements, the architecture around The Spring is based on timber frame structures that were once used in the citrus and ranching industries.
Over in the Marketplace, Fulton’s Crab House will open a new concept this fall. The re-imagined restaurant will welcome Guests with a bow to stern update including interiors reflecting the crisp luxury of modern yachting, and new spaces include a lushly appointed rooftop lounge overlooking Disney Springs, outdoor waterfront bar featuring a “build your own” fish boil and private dining areas. The new menu stars fresh seafood with an oyster shucking bar, Florida stone crab and Alaskan king crab, with hearty steaks and chops, as well as classic and curated cocktails.
In addition, Bibbidi Bobbidi Boutique will move from its current location at World of Disney into a new and expanded location near Once Upon a Toy in the Disney Springs Marketplace. Guests ages 3-12 will receive the royal treatment, getting made up like their favorite Disney princess with the help of their own Fairy Godmother-in-Training. This country parlor-inspired location will include an expanded salon to welcome royal attendees and a uniquely designed photo room to capture memories.
Join the discussion in on our DVC Boards.
On February 25th, the first of two “Disney Vacation Club 25 and Beyond Bash” events at the Magic Kingdom took place. This complimentary event was exclusive to Disney Vacation Club Members and their guests.
Below, our special guest Amy Bashor (MinnieMomofOne) gives us her experience of this special 25th anniversary event.
Typically, when I hear the words “Disney” and “free” in the same sentence, I get skeptical. You can imagine my surprise when the Disney Vacation Club announced a special 25th anniversary celebration that would open the Magic Kingdom for a complementary party for members and guests for two nights in 2016!
As additional details rolled out about the event, we learned that Members would be have to make reservations to get into the party. There was no fee, however there were a limited number of reservations available. DVC members staying on property could bring up the number of guests listed on their hotel reservation. DVC members not staying on property could book for themselves and up to a total guests total. All DVC members and guests with a party reservation would be given complementary Magic Kingdom access starting at 7pm on party night.
I called and reserved five spots as soon possible the first day the reservations opened. The spots went quickly and the event was “sold out” well before the first party night. However, DVC is doing several other Members Only events in 2016. If any of these are of interest, one key learning from these Magic Kingdom parties is to .
Arriving at the Magic Kingdom just after 7pm for the first party, we saw others checking in the middle of the gate area. Cast Members asked to see a DVC member card and photo ID. This was used to verify reservations via Cast Member iPads.
Once checked in, Cast Members standing just past the gate area gave wrist bands to party guests. Just like the holiday Halloween and Christmas parties, these bands identified who was eligible to ride rides, meet characters, buy merchandise and, well, even be in the park for the party. Other Cast Members standing nearby gave out special Magic Kingdom maps to show which attractions were open for the evening, locations for character meets, spots to enjoy the complimentary refreshments and various other details such as where to meet DVC executives.
While it is strongly preferred the entire party check in together, we found on the first night it was possible to check in different members of the group separately. This was not efficient and I do not recommend it. Get your group together for the check in! While we checked in at 7 at the front gate, there were other options. The DVC resorts had check in from 6:30 till. For those already in the park, there was a third option for checking in at TomorrowLand. Basically, check in was quick and easy with DVC card and photo ID.
Most of the Tomorrowland and Fantasyland rides plus the Haunted Mansion were open for the event. The Seven Drawfs Mine Train had waits of 40 minutes or more posted throughout the evening. Most of the rest of the rides were walk-on waits of 10 minutes or less. In the three hours of party time, we did 12 of the 13 ride that were open.
In addition to short lines, the party featured tables of chips and cookies plus water and lemonade. There were even all you care to enjoy ice cream and hot chocolate options. Many rare characters, including Robin Hood, Friar Tuck, Little John, Darkwing Duck, Wreck-In Ralph & Vanellope von Schweetz, Lanchpad Mcquack, Louis the Alligator, Daisy de la Cruz, Cadaver Dans and Baymax, attended the party. I understand Flynn Rider, Naveen, Phillip and Charming were meeting with their princesses as well. Belle was meeting in her blue village dress but neither the Beast nor Gaston seemed to make an appearance. Mickey, Minnie, Pluto and Goofy were attired in some retro outfits and helped dance the night away in Tomorrowland.
However, the most special event was the special 11:30pm fireworks presentation. This was an unique show developed specifically for this event. It went for about 10 minutes and was the best fireworks show I have ever seen. We watched it from behind the castle in Fantasyland, which was somewhat like being part of the show as fireworks were going off in front and behind us. I can only speculate the view from main street was even more impressive. While the fireworks ended around 11:40, the party continued till midnight. As we were already in Fantasyland, we managed to ride It’s a Small World after the fireworks as well as just make it in to be the last guests of the evening on Haunted Mansion. It was lovely to walk out of a mostly empty Magic Kingdom.
The Disney Vacation Club 25 and Beyond Bash was a blast to attend. In fact, I need to go email my manager to see if I can take this Friday off to attend the second one just to make sure it was as much fun as I remember….
See you at the parks!
Amy
Read more in Amy’s Trip Report.
About the Author
Once Upon A Time, I fell in love with stories. That love of stories lead naturally enough to a Disney World addiction. I enjoy reading stories, blogs and books about Disney. Not too long ago, someone suggested I try writing my own Disney story. At first I laughed it off. Then I started tinkering with some ideas. Soon, I had a something I wanted to share. That turned into my first book, A Year of Disney.
Now the writing bug has bitten and won’t let go! My second book, Camping Disney, shares my family’s love of Fort Wilderness. It is based on our adventures in the Walt Disney World campground. If you have ever considered stopping by the Fort, this book shares how to have the most fun at the Fort for any kind of visit. With the second book published, I am hard at work on Book 3. If all goes exactly right, it will be available on Amazon this summer. To learn more, please drop by my blog or visit me on Facebook.
Here are the prices for theme park tickets at Walt Disney World, as of this morning.
Value tickets may not be used on the following blackout dates: March 19, 2016 to April 1, 2016; June 6, 2016 to August 11, 2016; December 15, 2016 to December 31; 2016; January 1, 2017 to January 2, 2017; April 8, 2017 to April 21, 2017; June 5, 2017 to August 10, 2017.
Regular tickets are not valid on the following blackout dates: March 11-31; April 1-2; May 27-31; June 1-30; July 1-23; November 20-27; December 22-31, 2016.
Peak tickets can be used any time.
Disney will be rolling out demand-based tiered pricing, where tickets would cost less on slower days and cost extra on dates when there tend to be too many people. Adjusting prices due to demand is common at hotels and airlines.
This strategy could help the Disney parks attract more visitors during slow days and prevent overcrowding during busier ones.
The Walt Disney Parks and Resorts chairman said last year that the company must “look at ways to spread out our attendance throughout the year” to “accommodate demand and avoid bursting at the seams.”
The tiered pricing system should help flatten out visitor attendance, and help distribute crowds more evenly throughout the year. Disney’s goal with tiered pricing is to keep the parks full but not jam-packed.
Such a strategy also opens up the market to more price-sensitive consumers on the lower end. On the other hand, some people will see this move as favoring those with more disposable income, as they can afford the flexibility of visiting Disney whenever they want, whereas lower-income consumers could be restricted to less convenient times.
Universal Studios Hollywood became the first major U.S. theme park to embrace demand-based pricing earlier this month, and Disney has tiered pricing at it’s non-US parks, such as Shanghai Disneyland and Disneyland Paris.
What of you think of tiered-pricing for Disney theme park tickets?
Before the social networking boom, online communities on discussion forums were the spaces that allowed people to interact, collaborate, share content, and learn from each other. In the past 10 years, Facebook, Twitter, Google+, and other social networks have grabbed some of the spotlight.
I started DVCinfo.com as an informational site with a Blog (and this is one of my blog posts). However, I wanted to build a community of DVC members. I was faced with the decision of whether to establish this community using a discussion forum or a Facebook group.
As I faced this question, it was obvious that the greatest strength of Facebook Groups is their cost (it’s free!) and the ease of set up. Anyone can set one up in a matter of minutes. However, I’ve found that engagement tends to be lower, less serious, and short term on Facebook Groups compared to forum communities. Perhaps that’s because it’s easier to scroll through Facebook mindlessly or just click the “like” button rather than actively engage in a conversation.
I’ve also found Facebook Groups to have less moderation, so I’ve seen gang attacks where members of a group attack someone with a contrary opinion.
On the other hand, discussion forums allow me to look at a list of thread titles that have had new activity since my last visit and choose which ones I want to read without having to scroll through everything that has already been posted.
If I want to return to a thread that hasn’t had recent activity, I can find it either by using the forum search feature, or scrolling through the thread titles of the appropriate sub-forum.
Facebook posts require endless scrolling through at least 5 responses for each thread. Once too much time has passed, the posts are nearly impossible to access unless I want to scroll down forever.
Although there are many thoughtful comments in Facebook groups, the ease of replying and the general Facebook comment culture results in a predominance of throw-away one-liners. If I do end up commenting on a popular thread on Facebook, I get bombarded by others’ comments on the thread.
There are clearly exceptions for each medium, but in general, I find that for a quick fix of attention, Facebook Groups work well, but for a more substantive discussion with users whose experience and track records I can more easily access, I prefer discussion forums.
That’s why I setup the DVC Boards at DVCinfo.com as a discussion forum.
What are your thoughts?
Feel free to:
