If you travel to Walt Disney World or Disneyland and are able to see or hear, you probably are familiar with Disney’s “Best” Kept Secret: Disney Vacation Club (or “DVC” as the cool kids call it). Disney Vacation Club prices are higher than ever in 2015, with the new Polynesian Bungalows being particular expensive both in terms of dollars and points, making many wonder whether buying into Disney Vacation Club is actually a good idea for their families. Maybe you’ve recently taken a Disney Vacation Club tour or heard a sales pitch and are now wondering if it’s actually as good as that emotional pitch made it sound.
If you’ve considered purchasing Disney Vacation Club, one of the biggest considerations, no doubt, is whether it makes good economic sense. Unfortunately, as with almost everything in life there is no definitive answer to this question that fits everyone. From a purely economic perspective, Disney Vacation Club will not make sense for a lot of people. However, it’s worth reading on to see if it makes financial sense for you, or if there are other compelling reasons for you to make the purchase.
As mentioned above, if your main reason for purchasing an interest in Disney Vacation Club is to save money, whether it’s a good deal for you depends of your party size and resort tier preference. Contrary to Disney’s claim that Disney Vacation Club will save you “70% off” of future resort stays, this is not actually the case. If this were true, do you really think Disney would actually be offering the program–and that it would be wildly profitable for the company? Sure, Disney might take a bit of a hit to guarantee that you will be a loyal customer for years to come, but 70% off?! As we all learned in grade school, if something sounds too good to be true, it probably is. Disney’s 70% savings number assumes things that aren’t realistic to reality, such as paying rack rate in the most expensive Disney hotels and no return on investment for the (unfinanced) money invested in Disney Vacation Club. Even assuming these things, I’m still not quite sure how Disney arrives at its 70% off number, especially in 2015 when DVC direct prices are substantially more than they were just a few years ago. I think it might be equal parts magic and advertising puffery, but I’m not entirely sure.
It’s also worth noting that Disney Vacation Club is a pre-paid vacation plan, which differs slightly from the traditional definition of a timeshare. In the strictest sense, Disney Vacation Club can be viewed as an asset, but not a tangible one. This is an important distinction to some people, but it doesn’t matter to a lot of people.
With that said, let’s take a look at the pros and cons of buying into Disney Vacation Club, and what you should think about before you decide whether to pull the trigger… (more…)