Will all the new lands and rides bump up DVC price?

jodifla · Nov 23, 2015

My bet is yes.

It feels like DVC prices are only going to go higher with all the building, and little to sell at WDW.

mrsjoannh13 · Nov 23, 2015

Seems logical. I would imagine Star Wars land could bring in a whole new group of die-hard fans.

southerngirl528 · Nov 23, 2015

Looking at the remarkable number of price increases over the last several years for DVC, I don't think it would matter if they were NOT building new stuff. They would still do plenty of price increases. :rolleyes:

Minniesgal · Nov 23, 2015

I'm not sure how much higher they can go and still be viable

southerngirl528 · Nov 23, 2015

I absolutely agree, Minniesgal, and I am a diehard DVC member. The membership has been wonderful for my brood, but IMHO the membership is not as amazingly different from the rest of the world of timeshares as it once was. I think DVC is pretty much like any other higher end TS with its offerings now. The Concierge Collection used to have some truly outstanding, even legendary offerings and though they were pricey points-wise, they were NOTHING like as ridiculously expensive as they now are. Bleh!

disneynutz · Nov 23, 2015

southerngirl528 said:
Looking at the remarkable number of price increases over the last several years for DVC, I don't think it would matter if they were NOT building new stuff. They would still do plenty of price increases.

Exactly!!

Bill

southerngirl528 · Nov 23, 2015

I absolutely agree, Minniesgal, and I am a diehard DVC member. The membership has been wonderful for my brood, but IMHO the membership is not as amazingly different from the rest of the world of timeshares as it once was. I think DVC is pretty much like any other higher end TS with its offerings now. The Concierge Collection used to have some truly outstanding, even legendary offerings and though they were pricey points-wise, they were NOTHING like as ridiculously expensive as they now are. Bleh!

hopeful4fl · Nov 23, 2015

The price of DVC will (in the long run) rise proportionally to the increase in room rack rates, which in turn will pivot in Disney trying to get a ROI in all the development they are doing. I know this is semantics, but I, along with several DVC people I know did a lot of math in cash rates vs points before deciding to dive in

. I see no end to the rise in cash rates that Disney will keep on demanding.
In the end, I think the Disney brand, along with their policies of ROFR will ensure DVC prices either go up or stabilize so as not to take a loss at point of sale.
At this time, I see no downside to people already holding DVC points and think the ceiling is a few years away. The real factor will be about a decade later, when we start coming (relatively) close to the expiration of several resorts.

cwdefouw · Nov 24, 2015

DVC does not need external factors such as new rides and attractions for any motivation to raise prices. They will always raise prices simply because they can, until they simply can't raise them any higher due to a long term reduction in demand. We bought in 16 years ago and added on pretty regularly though-out the 2000's, when they were offering much better incentives and increases were a little slower due to a poor economy. For us pricing has gone beyond what we are willing to pay for more points. However, there are apparently plenty of new and add-on buyers for every new resort that opens. Consequently pricing will continue to go up regardless of what happens with the other Disney attractions.

ziravan · Nov 24, 2015

The economy is cyclical and resale prices will come down during the next downturn, same as the last. That said, the trend line is way up. We paid $84/point for BCV not very long ago. I recently mentioned to DW that we could prob sell it for $120, her response: "Not a chance!" (That she'd be willing to sale.)

I think, economically though, the middle class is being steadily squeezed out. I don't mean just at Disney, but globally. I think Disney's pricing strategy recognizes that. TWDC seems to have adopted a strategy of marketing to higher income clients.

So long as the parks are full this isn't a bad strategy. Add in all the extra events they are charging now, and IF Disney is still in reach of the middle class at all, it's once in a lifetime.

I think that move (catering to a higher income crowd) is what's driving both the new development and DVC pricing. One isn't causing the other, they are both byproducts of Disney's audience reach.

I think you see that everywhere at Disney now - catering to somewhat higher than middle class income. Disney Springs isn't designed for people tapped out to be at Disney at all. No, it's designed to capture more discretionary income for people who have that sort of income.

disneynutz · Nov 24, 2015

My guess is that Disney expects increases in revenue and DVD has to keep increasing the point price to hit their required numbers or explain why they didn't.

New construction projects have to show an expected profit within a certain time or again DVD, (Potrock) will be meeting with Iger to explain why they didn't.

:earsboy:

Bill

supersnoop · Nov 24, 2015

disneynutz said:
My guess is that Disney expects increases in revenue and DVD has to keep increasing the point price to hit their required numbers or explain why they didn't.

New construction projects have to show an expected profit within a certain time or again DVD, (Potrock) will be meeting with Iger to explain why they didn't.

Bill

I think they're more interested in margin than revenue. If they just wanted revenue, they'd lower the price and sell more points. Right now, they probably have five years worth of PVB points available at current pricing.

ziravan · Nov 24, 2015

supersnoop said:
I think they're more interested in margin than revenue. If they just wanted revenue, they'd lower the price and sell more points. Right now, they probably have five years worth of PVB points available at current pricing.

I agree except they prob have 3 more years worth of Poly. They're selling 80k points a month on average, so about a million points per year with about a years' sales under their belt and its a 4 million point resort.

But 3 more years should be plenty of time to get to VWL II sales. I think the goal is to always be selling WDW.

I don't think they're particularly interested in selling Poly any faster than they are right now.

Of course, for their purposes, that means Poly will be a success.

yitbos96bb · Nov 26, 2015

jodifla said:
My bet is yes.

It feels like DVC prices are only going to go higher with all the building, and little to sell at WDW.

They were going to grow higher regardless of new lands or not. They are going up $3 pp next week in fact

BWV Dreamin · Nov 29, 2015

Is this accross the board or just for select resorts? Higher than $170/pt?

ziravan · Nov 29, 2015

BWV Dreamin said:
Is this accross the board or just for select resorts? Higher than $170/pt?

Poly and Aulani are going up for current members from $165 to $168 on Dec 3.

That price already went up for non-members on Nov 3.

BWV Dreamin · Nov 29, 2015

To my knowledge VGC, VGF, and BLT are already at $170/pt. I wonder if there will be another price hike prior to any VWL II announcement..... :smooth:

bigtony777 · Nov 29, 2015

So glad we got in on a resale when the prices were way down in 2011. We have gotten great use out of it and could sell for a good profit right now if we wanted to.

ziravan · Nov 29, 2015

BWV Dreamin said:
To my knowledge VGC, VGF, and BLT are already at $170/pt. I wonder if there will be another price hike prior to any VWL II announcement.....

My guess is yes. If I had to guess VWL II pricing, I'd guess $175 intro to members, $180 with official rollout.

minnie-apple-mouse · Nov 30, 2015

One thing for sure is all the new lands and rides will not cause dvc prices to drop.

Will all the new lands and rides bump up DVC price?

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