"Charging" Guests - how much?

[afoeckler]

We're planning a vacation in November 2009 for our first stay at the Kidani Village (just bought into DVC a couple weeks ago). We are planning on trying to book a 3 bedroom villa (I know I have to call first thing at 11 mos. out - we'll have enough points by combining points from this year and next year) for a group of 11 people - including (1) my family of six (2 adults and four boys under 9); (2) 2 adults; and (3) an adult and her two children (both under 9). There is another couple who are DVC members who will be hosting a group of 5-7 people (including themselves) and likely looking at a 2 bedroom at the Kidani Village. It will, no doubt, be a blast (and very tiring - in a good way). I should mention that all "guests" are family members.

The broad concept that our "guests" will be paying for part of the room is understood by all and is not at issue. However, the amount has not been discussed and this is what I'm struggling with. How have others calculated how much to charge other? One way would be to calculate how much a point costs (total cost buy-in and dues over approximately 50 years divided by the number of points over those same years) and figuring out the approximate proportion of points each group would be using and figuring out the dollar amount that way. Another way would be to assume if the guests were not staying with us they would pay for studio or regular room at a different resort and "charge" that amount - we could even assume it would be a value or moderate resort to try and err on the side of being generous.

I'm not out to make money but want to be properly compensated for burning through more points than we would if we were not going with such a large group. Bottom line: what is fair and reasonable to ask our guest to pay for staying in very nice accommodations? What have others done in similar situations?

Al

 

[dianeschlicht]

Why not take the cost of mainenance for the two years of points you are using, and divide that cost between the family groups?

 

[lisaviolet]

Al,

You didn't ask for this - a differing opinion. And I'm going to come off as a little rude. Eeek. But I just don't get it. I really don't. I don't understand charging guests. And I never will.

To each their own. It's just been such a lovely part of my DVC experience - sharing it.

Oh boy. I just had to write it. A la I really tried to stop my fingers from typing and I just couldn't seem to stop them.

Nonetheless, I hope you have a wonderful time. Sounds like a terrific vacation.

Lisa

 

[CraftyMouse]

When we have accepted payment from our guests it has been for $100 or $125 per night. We figured that was a fair amount. In our situation we were splitting the stay with a family the same size as ours.

In your situation I would figure out your cost per point (purchase price divided by number of years until your points expire plus yearly maintenance cost per point). Then I would take the total cost for your grand villa, multiply it by the per-point cost and divide it by 11 (number of occupants). I'd then charge party #2 for 2/11ths and party #3 for 3/11ths of the total cash cost.

For example, say the total cost of the grand villa is 400 points and your per-point cost is $8. The total cash cost of the stay would be $3200. Divide that by 11 and you get, roughly, $291 per person. I'd charge party #2 $582 and party #3 $873.

 

[OKW Lover]

I'd charge them the same price for staying at your home away from home as you charge them for staying at your home. Seems fair.

 

[chatchdvc]

Brought my Aunt and cousin for 9 days in April 07.
They bought me a Mickey Christmas ornament in DTD.

(Guests do not pay, by my definition of the word)

 

[christianweecare]

I thought I would share what we have done with my sister's family. DH & I have invited my sister and her family to join us for WDW trips using our points. She has paid for our dining. She feels she comes out ahead since she doesn't have to pay for lodging and she feels like she is contributing to the trip. Just our experience--your experience may vary. It works for us.

 

[photobob]

You could check to see how much the points are renting for and go from there.

 

[CraftyMouse]

Brought my Aunt and cousin for 9 days in April 07.
They bought me a Mickey Christmas ornament in DTD.

(Guests do not pay, by my definition of the word)

It really is a personal issue. While some are able to bring guests along at no charge, others prefer to split the cost. In our case our guests insisted on paying us and would not have it any other way so we came to an agreement on cost. Other times we have taken friends and neither expected, nor received payment. Again, it's a personal issue. What is good for one is not always good for all.

 

[dizplanner]

While I didn't charge the one time I took extended family, I could afford it and I made the offer. (They did have to pay all their other expenses - airfare, tickets, food, one additional night after we split up - we went to Universal) I do understand people wanting to recover their costs and it sounds like your family is cool with this. However I do recommend that you figure this out before you book as they may choose to back out if the number you have in mind is higher than they were expecting and can afford. Also make sure they understand all the other costs to that they don't back out on you later if they realize it is too expensive for them.

For myself, for family that is on a trip with me, I would just try to recover my costs. So what I would do is take my purchase price plus excepted total interest if finacing and divide by the number of years available * number of points. This will give me an approximate cost per point of the purchase. This works out to about $2/point for me, but I bought via resale in 2004 at VWL for cash - your number will vary depending on your costs. Then we need to add the maintenance fees for the points being used. For simplification, I would probably just use the per point maintenance fee from last year. I'm just going to round up to $5/point. So I would charge $7/point. A week in a AKV GV in Nov (non-Thanksgiving) is 541 points - total cost $3787. Since you are sharing a room, I would do the prorating mentioned about where one party gets 2/11 ($689) and the other 3/11 ($1033) - you can modify this if one family gets a bedroom and the other is in the living room or something. (Do figure out where everyone is sleeping - make sure appropriate people are sharing a bed or bedroom.) Or another option is to assume you are paying half and the other families are each paying a quarter to make it simpler. ($947 each)

Another way some people look at this is "what additional points am I using to take extended family". Since you would have to get a 2 bedroom for your family, the delta is the difference in points between a 3 bedroom and 2 bedroom. This would be 246 points for the example. You then multiple this by the cost per point and divide between your guests. $1722 total - 2/5 = $689, 3/5 = $1033 which amazingly in this case works out to the same or $861 if split evenly. In general, it tends to come out to less and I don't like it as well because you are gaining one bedroom and stuffing in 5 more people and having to share - you are actually giving up something to add them, so it seems like worth getting a bit more from your guests.

You can do the same but use $10-12 per point which would be what they would pay if they rented points.

Other people use the "what would they pay if they didn't have me". Since each of the families can fit in one room, I would probably use the value room rate subtract 15% AAA discount and add 12.5% tax which comes to $101 times 7 nights or $707. A moderate would be $1138.

You also need to talk to your other host family. What are they charging? Will there be problems if you charge one way and they charge a different way? Do you need to combine both of your extra costs and prorate to the families and prorate the dollars between you?

 

[bearpele]

we host my inlaws (4 adults) every year for one week in a two bed room. They pay for our plane tickets and dining for the entire stay. It works out to be one way to reimburse us. Again, we did get into DVC so that our daughter could have lasting memories of vacations with her grandparents.

 

[canwegosoon]

Since you keep using "Guest"is "" I figure you are just refering to family that way. I also am guessing that they have offered to cover their expenses. Iwould use the method dizplanner suggested.
BUT-I have never charged family members(and I have booked seperate studios incase they have needed to cancel). For one set we got nothing-no thank you card or anything. From another group of 3 we got a $100 giftcard. Totally unexpected. We had told everyone that this would be a freebee on us.

I have never charged family to stay with us at our summer house, but I have rented our summer house to family that bring their friends for a week w/o us.

 

[Kathi OD]

When we take guests it's under the assumption that we don't want anything in return. If they insist, then we just say buy us a dinner one night. Everyone has to handle this how they feel is best for them.

 

[ctydisneyfan]

Now I understand the delema but don't understand the concept. You state they are familymembers? Would you charge these family members to stay at your home? I know that may seem rough but, you really need to think in terms of your personal feelings.

If you invite them as a guest...then your choice but the concept of the DVC as I understand is to share the mouse. Now with that said. I can tell you my experience. Although we are fairly new DVC members, I have enjoyed the choice to share my timeshare. The old saying is give more and receive more... I have had the experience to share and not charge but have gotten much in return... my guests have always responded to my kindness with purchasing a dinning plan for all of us, coupled with a generous gift basket when we returned home. If not that then, always something...not one has ever just taken for granted my generousity of accomadations for free...

Your generousity is going to depend on your relationship with the parties coming with you. Family, Friends, etc...this all makes the difference.

But if you are going to charge, I agree with another in that you would be fair to charge the cost of the MF's for the two years usage of points. This way its a freebee for you and still reasonable for the guest.

Good Luck

 

[NedsTJ]

I'm going down in October for a week. Getting a 2 bedroom unit, and invited some friends down. (wow...I got used to just going down without plans...little did I know what I started...but that's for another thread!) Anyway, I'm only asking for 1/2 the amount that we have to pay cash for, since we were waitlisted for one night, but covered it with a cash ressie. If they offer more, or offer a dinner, that's fine but I'm not asking or expecting anything. Just glad that I can share the Disney with others.

 

[WALTSAGOD]

Tough call, I wouldn't really want to charge, but If treating would cost your immediate family two or three years of points, bank & borrow, then your treat means that you don't go yourself as an immediate family for the next couple of years, correct.

 

[disney dumbo]

You could check to see how much the points are renting for and go from there.

I agree... going rental rate would be a fair value... as you said these folks agreed to share the expense. Seems a big demand for rental points... I'd say you could easily base it on that and show them proof! When you tell them regular rate of the room... they will KNOW they are getting a good deal... THANKS to you!!! (and none of the risk of renting from a stranger... and not having to put out much big bucks earlier like you did.)

I also think it gives them some "ownership" of the reservation. A post on this same page where a good friend walks on reservation right before checkin... no time to rebook... points are lost. When people put money down... they get serious. Explain it's nonrefundable.

 

[kikiq]

We just returned from a family trip. My Dad is used to paying but we told him this time that he wasn't paying for the room. We paid for his park hopper. He paid for several dinners and my DDs used his airline passes (reduced fare) to get to Orlando. My DB/DSIL wanted to pay something so we settled on a portion of this year's MF.

 

[Cruelladeville]

I guess I am going to sound a bit negative here, but your "guests" are not guests if they are paying for the room, IMHO. Now, if they invited themselves along, and you felt you had no choice, then charge them, or else they will always be inviting themselves and using your points. It all depends upon who invited whom. Generally, my "guests" pay for our food, but if they don't, it's no biggie. I absolutely draw the line at people inviting themselves, so I find it easy to say no. The only exception are my children, who often invite themselves along on our trips, which is OK, since they helped buy the points that are part of my contract.

 

[CraftyMouse]

I guess I am going to sound a bit negative here, but your "guests" are not guests if they are paying for the room, IMHO. Now, if they invited themselves along, and you felt you had no choice, then charge them, or else they will always be inviting themselves and using your points. It all depends upon who invited whom. Generally, my "guests" pay for our food, but if they don't, it's no biggie. I absolutely draw the line at people inviting themselves, so I find it easy to say no. The only exception are my children, who often invite themselves along on our trips, which is OK, since they helped buy the points that are part of my contract.

I see no problem with everyone pitching in for part of the room. I think that posts like this only make those who choose to accept money from their "guests" feel guilty for doing so. The bottom line is that what works for one might not work for another. We never charge my parents when they travel with us but we have accepted money from friends with whom we've shared a villa and I have no regrets about that. They would have had to pay for a room somewhere else and I would have used less points had they not stayed with us so it worked out for all of us. There's no right or wrong here.