A dear friend recently emailed me for some feedback. The subject was the Disney Vacation Club (DVC), and they were asking for advice on whether they should join. I knew that they were passionate Disney fans, because we’ve vacationed at Walt Disney World with them before. Still, I don’t fully recommend DVC across the board. Frankly, it’s not for everyone. I wrote this guide for people like my friends, ones who love Disney enough to consider DVC membership. Here are the five pros and one serious con of joining DVC.
You get a great deal over time
Image: Disney
Let me throw out a couple of caveats in advance. I am (obviously) a DVC member. I am not being paid by anyone to write about this program. I simply believe in the value of this particular deal. My brother sold me on it, and now I’m passing along the same wisdom to others. Okay, with that out of the way, let’s get started.
The basics of DVC haven’t changed since its inception in 1991 and certainly not since this article I wrote in 2014. Still, misconceptions exist, primarily because Disney doesn’t control their message well. Have you ever considered joining DVC? If not, you likely either A) Don’t visit Disney theme parks enough to become a member B) Believe that you can’t afford it or C) Don’t want to tie yourself down with the equivalent of a timeshare. All of these are valid reasons, and we’ll evaluate each one. Let’s hit the basics first, though.
When you purchase DVC membership, you’re agreeing to buy a set number of points that you’ll exchange for a stay at one of Disney’s finest hotels. You’ll get the most value if you use them at theme parks, although a couple of other options exist that are discussed in the final pros section. What you’re doing is buying a guarantee that you can stay at a Disney theme park for a fixed cost. That may not seem like much, but the value is tremendous.
The current minimum to join DVC via direct sale (i.e. purchase from Disney) is 50 points. The company pushes Disney’s Polynesian Village Resort (Poly) as the home resort right now. What that means is you’ll have the ability to book at this property four months before any other at Disney, a valuable advantage. To own at Poly, you’ll pay $176 per point. For this particular DVC property, the newest one, you also have to buy 100 points. That’s a hefty investment of $17,600.
Note that you can buy cheaper. My home resort is Disney’s Old Key West Resort (OKW). The base price for this property is $140, and you only have to purchase 50 points, a total of $7,000. Just like that, I’ve already saved you $10,600! Okay, I kid. Paying $7,000 is still a lot of money. What do you get for that amount? You’ll own at your resort until at least 2047, which is roughly three decades from now. You could own until 2066! When you buy a DVC membership, you’re locking up a set number of DVC points for several decades. Whether you plan to visit Disney a lot or not almost borders on irrelevant. The points don’t diminish in value, which means your membership interest will offer the same advantages years from now as they do today. You’re investing in your future. And that means…
You’ll always have a room at Disney as your children grow
Image: Disney
I don’t know you, I don’t know your health history, and I don’t have access to any actuarial tables. My hope is that Google cures death, and we all look back and laugh at this article in 2070. When you buy into a program that could last until 2066, however, let’s be honest that you’re not just doing this for yourself. You’re sharing something with your children.
DVC membership is a deed that you can pass down from generation to generation. A person in their 70s today could feasibly buy points now that their grandchildren will use for vacations with their great-grandchildren. That’s a warming thought at an advanced age. You’re buying into the future of your family in a novel way.
Image: Disney
Your points will have the same relative value in the 2060s as they do today. The 150 points that buys you a week at Poly now should book a week’s stay for your grandchildren decades from now. While Disney does modify the points chart some from year to year, the variances are modest. The company wants everyone to feel comfortable that their ownership interest maintains value over the years.
In fact, one of the surprising aspects of DVC is that your value might grow over time. When my family bought points, Disney was selling at $80 per point. The same contract would cost $140 per point today. That’s 75 percent growth over a few years. I wish my investments performed as well as my DVC contract. Now, I couldn’t sell my ownership interest for that right now, but that’s a benefit to new customers for reasons I’ll explain in the section after next. But first…
You get discounts that counteract some of the expenses
Image: Disney
In 2016, Disney >modified the DVC program in a way that was more beneficial to people who purchase directly from the company. Potential buyers who choose the option in the next section won’t enjoy these benefits, so please keep this in mind. It’s only for those who buy straight from Disney.
The benefits offered to DVC members are generally discounts on various products, services, and meals. For example, many Disney restaurants offer savings of 10-20 percent off a meal to a person who presents their DVC membership card. The same is true at several Disney retailers, even including DisneyStore.com. They also provide percentage discounts on park tours. While the savings aren’t huge, every little bit adds up at Disney. I like to think of the DVC 20 percent meal discount as paying for the tip of my server. And the store discounts mean that my wife can buy 20 percent more stuff for the same price. I’m sure some people would see it as getting the current amount of stuff for 20 percent less, but she doesn’t think that way.
Note that Disney’s Membership Benefits exist beyond discounts. They also host member events, a special tour of Soarin’ Around the World, and the DVC Lounge. The last benefit is my current favorite. At the DVC Lounge, you can escape the hustle and bustle of a crowded day at Epcot, sneaking off to an air-conditioned area. Disney provides free beverages and USB chargers. So, you can cool off while recharging your smart device. All of these benefits are great. The question is how much they’re worth to you. And that’s because…
Savvy shoppers can save money
Image: Disney
What’s changed about DVC membership over the last couple of years is the price. Critics of Disney, even those who otherwise love the company, note that the cost of everything is increasing at a near-constant pace. Something that was affordable only a couple of years ago may exceed a person’s budget today.
The same is true of DVC. When I first discussed membership, you could purchase a direct contract for $110 per point at a theme park resort. That price is still available, but it’s only for offsite properties at Vero Beach, Florida, and Hilton Head, South Carolina. Both of these resorts are susceptible to higher maintenance fees due to hurricane issues. To buy DVC ownership at a Walt Disney World property, you’ll have to pay at least $140 per point. The resort that they’re pushing at the moment, Poly, is $176 per point. At Disneyland, the base price is $180 per point. That’s…a lot.
Image: Disney
The DVC resales marketplace works differently. While you won’t receive any Membership Extras by signing up this way, you’ll get a lot more for your money in terms of points. And points are what matters most about DVC membership. 100 points at $140 is an investment of $14,000. For that amount, you can purchase 200 (!) points via DVC resales.
This option may sound too good to be true. It circles back to the earlier fear that you can’t afford DVC membership. Here’s what you need to know. Disney has to honor certain state and federal guidelines with regards to selling an ownership interest in their resorts. The housing market includes stipulations that an owner has the right to give/sell their stake to someone else. So, Disney cannot stop the resales market, and that’s an opportunity for the savvy shopper.
Several sites offer DVC deeds for sale. They operate as a kind of secondary market no different to a real estate agent who only shows you existing homes rather than new ones. A couple of these resellers have even participated in DVC Roundtables here at Theme Park Tourist. They’re experts in their field, and they have full awareness of the current market value of a DVC ownership interest. By using one of them, something my family has done in buying a pair of contracts, you’ll get a lot more for your money than if you go through Disney.
Image: Disney
Having said that, there is a trade-off today that didn’t exist when my family joined. When Disney altered the rules of DVC ownership, they took away all membership benefits for people who buy through the used DVC contract marketplace. You’ll want to study the list carefully to decide if any of them matter enough to you that you’re willing to pay more.
I also suggest a slightly different tactic to friends. I point out that they can purchase via resale for cheap. Then, they can turn around and buy 25 points directly from Disney. The minimum points purchase requirement is lower for existing members. So, a clever buyer can get most of their points for less on the resale market and then gain the Membership Extras via a modest direct points purchase.
You have flexibility if you don’t want to go to Disney every year
Image: Disney
Have you stayed away from DVC since you don’t want to get locked into visiting the parks each year? One of the strengths of the DVC program is how much flexibility you have with point usage. You don’t have to spend every year at Disney. Your options are much more robust.
First of all, Disney offers a couple of resort options away from Disney theme parks. Disney’s Vero Beach Resort and Disney’s Hilton Head Resort are wonderful choices for folks who need to get some sand under their toes for a while. The Florida and South Carolina properties are both highly regarded but admittedly not convenient for people who live outside the south.
Image: Disney
The dream destination is in Hawaii. Aulani, a Disney Resort & Spa is the best resort in the entire state according to Hawaii Magazine. Conde Nast declares it one of the best 15 resorts for summer vacations. If you’ve ever fantasized about a once in a lifetime trip to Hawaii, your DVC points will negate the cost of a hotel stay, cutting the price of a vacation significantly.
DVC points have other uses, too. Let’s say that you don’t plan to travel to a Disney locale for an extended period. Your points don’t have to go to waste. Instead, you can sell them to a rental service or individual. You’ll get at least $11 per point and sometimes as high as $15, depending on the market at the time. Since you only pay a fraction of that amount on annual dues, you’ll actually make money on your DVC points during the years you don’t travel to Disney. You can use that money to mitigate the cost of your actual vacation plans. In other words, DVC points have value that supersedes the program. You can look at this investment as one that applies to all your future vacations, not just the ones at Disney!
The big con…
Image: Disney
Okay, I’ve hyped the positives to the best of my ability. Now, let’s address the dancing pink elephant in the living room. The con of DVC membership is the obvious one. It costs a lot of money. Maybe a few thousand dollars is nothing to you. Maybe it’s not. I’m not in position to say. What I know for certain is that my family feels like our lives are enriched by DVC membership. We were in a financial position where we could spend the money to join, pay it off quickly, and then enjoy the benefits of membership for the rest of our lives. We’re so satisfied with the system that we’ve discussed buying more points on several occasions, and I’m sure that we will at some point…probably more than once.
That’s our feeling on the matter.
Your situation is different and unique to you. When my friends asked me about DVC membership, I told both of them the same thing. I’m not comfortable spending anybody else’s money. The choice of joining is up to the individual. For some people, it makes sense. For others, using those thousands of dollars in other ways is more beneficial.
Image: Disney
What I can say for certain is that each time I write an article like this, someone says, “Ha! I’d join if you spotted me the $25k!” I’m hopeful that you’ve read the above, and it’s allowed you to view the program in a new way, one where you can minimize your investment while maximizing your enjoyment of each vacation from now on in perpetuity. There are ways to hack DVC membership to reduce the cost of ALL your future vacations, not just the DVC ones. It will still cost a few thousand dollars, though. That’s a lot of money to spend on trips you won’t take for years to come. So, please make an informed decision.
If you have additional questions about the program, please leave notes in the comments section. I’ll reply in kind.
