I agree with this completely. However, I interpret it differently. If the economy continues to spiral down the toilet then room rate discounts are going to be plentiful and long-lasting. This will greatly impact the break-even analyses that we have all performed, especially if the discounts come in the first few years of ownership. The game remains the same but it's being played in a completely different venue. We need to start changing our thinking when it comes to our analysis of the value of DVC.
100% true. That’s the upper limit. If they drop prices ours would drop too.
Essentially it’s a question of - can we offer something better for less? If they can stay at AKL for $800. Well our points for an equivalent stay isn’t going to rent for more than $600.
I used a 25%off rack rate as my maximum during calculations. Partly because 20% can frequently be had, and partly because it had to be meaningful enough for the renter to take the risk.