Confirmed:Classic Resorts To Increase to $130/pt. On March 20th

[tjkraz]

I haven;t run all the numbers so maybe this doesn;t make sense but it would seem to me that at the current price of points Ie 115 to 130 I was wondering when you could buy a second house (ie house or condo) in the area and never have an expiration to deal with. I know you have the maintenance of the house and insurance and maybe condo dues but it would seem that the real estate market might make this worth while to look at.

Depends entirely on what you're comparing to. You can spend a week in a Studio for under 100 points. Even at direct prices that's an up front payout of $13,000 or less plus monthly dues of $40-50. (Dues cover the equivalent of property taxes, insurance, utilities, cable TV, Internet, phone, condo fee, plus all housekeeping and maintenance.)

Obviously a condo will cost MUCH more than that...but would yield added benefits, too.

 

[mnra]

one of the things i guess i generally compare too is having a 2 bedroom unit. Back when i first purchased you had to buy at least 230. pts and i needed a two bedroom since we had 5 of us. Now I think they are willing to sell a lot less points to buy in and some of the resorts offer the ability of 5 people ab to stay in a one bedroom.

 

[bwvBound]

I haven;t run all the numbers so maybe this doesn;t make sense but it would seem to me that at the current price of points Ie 115 to 130 I was wondering when you could buy a second house (ie house or condo) in the area and never have an expiration to deal with. I know you have the maintenance of the house and insurance and maybe condo dues but it would seem that the real estate market might make this worth while to look at.

But if you do a house you have only that one location. With DVC points, you get not only WDW but also Anaheim, Hilton Head, Vero and Oahu.

 

[mnra]

true that you only have one location. i have tried to use my membership in the others spots and most of the time haven;t had much luck. don't get me wrong i love my membership and am so glad we purchsed when we did back in 1993. I would just think that if they told me it was going to be 75k or so I would have just walked away and said not for me but maybe the younger people make a lot more money and are willing to have this luxery.

 

[sandieb]

I haven;t run all the numbers so maybe this doesn;t make sense but it would seem to me that at the current price of points Ie 115 to 130 I was wondering when you could buy a second house (ie house or condo) in the area and never have an expiration to deal with. I know you have the maintenance of the house and insurance and maybe condo dues but it would seem that the real estate market might make this worth while to look at.

That is a thought - just for kicks I looked at condos in Celebration (Disneyish). The prices aren't too bad. However, part of the joy is staying on-site. I know I wouldn't want to fool with real estate from so far away. But for some it might make sense - you could probably get some return from rentals too.

 

[bwvBound]

true that you only have one location. i have tried to use my membership in the others spots and most of the time haven;t had much luck. don't get me wrong i love my membership and am so glad we purchsed when we did back in 1993. I would just think that if they told me it was going to be 75k or so I would have just walked away and said not for me but maybe the younger people make a lot more money and are willing to have this luxery.

Oh, I'm sorry to hear you've had troubles booking other locations! We've enjoyed visiting DVC locations at Vero, Grand Cal and Aulani.

FWIW, we do own a second home near our favorite (timeshare) resort destination. We've had it for just over 7 years and use it nearly every weekend. Having both "second home" and flexible timeshare together are a win-win in my book.

 

[Sur]

To put it in more relatable terms, if you have a 12 month supply of toilet paper in your closet and a store runs a 50% off sale, do you run out and get even more? The correct answer is "no" because you just don't need additional TP right now and there will ALWAYS be another sale. (If you answered "yes", please seek professional help.)

my father-in-law still has his stash from pre-dec 31, 1999.... i've never understood hoarding tp for impending disasters!

 

[intertile]

I just got off the phone with my guide discussing pricing concerning the new webcast. During our discussion, she told me ALL of the classic resorts were going up to $130/pt. on March 20. AKV would be increasing to $145/pt., and Aulani would be increasing, although I didn't write down what that price would be.

I was inquiring about VWL to see if it qualified for the promos listed on the webcast. She said no, but if I went on the waitlist, I could be guaranteed the current $102/pt.

My guide just called me 10 mins ago. I had asked him about this last week and he told me that he had not heard anything about this. He just called me back to tell him that they are in fact raising the prices come March 20th. There is nothing about additional restrictions, GFV pricing, or classic contract extension. So if anyone is thinking of adding on direct, now would be the time to get on the waitlist.

 

[bgraham34]

I dont see how them raising the prices are going to help them sell. I can tell you that extra $30 a point will knock me out of purchasing more points.

 

[BWV Dreamin]

My guide just called me 10 mins ago. I had asked him about this last week and he told me that he had not heard anything about this. He just called me back to tell him that they are in fact raising the prices come March 20th. There is nothing about additional restrictions, GFV pricing, or classic contract extension. So if anyone is thinking of adding on direct, now would be the time to get on the waitlist.

You are the second person today to now confirm these prices with your guide. Another poster on another board also had these price increases confirmed. Well, you heard it first here on the DIS!

 

[tjkraz]

I dont see how them raising the prices are going to help them sell. I can tell you that extra $30 a point will knock me out of purchasing more points.

The market for "sold out" resorts is largely limited to current members looking to add on in small quantities. The choice basically comes down to either paying DVC's high prices or waiting endlessly for a small contract to appear in the resale listings (and then hoping you're the first to have an offer accepted.)

Even before these price increases, DVC is already charging significantly more than resale. And they have a waiting list of buyers.

 

[Breyean]

The market for "sold out" resorts is largely limited to current members looking to add on in small quantities. The choice basically comes down to either paying DVC's high prices or waiting endlessly for a small contract to appear in the resale listings (and then hoping you're the first to have an offer accepted.)

Even before these price increases, DVC is already charging significantly more than resale. And they have a waiting list of buyers.

But this also indicates there's an untapped market opportunity for them here.

If they could get enough points at certain closed resorts, say OKW, then they could do a soft sell of that resort as a cheaper alternative to the new currently marketed resorts. You know. A family takes the tour but balks at the price at VGF (soon) and instead of losing ANY sale, the guide whips out an OKW brochure, plays up all the great features and lower price, plus the fact that it's a "closed" resort, but hey, for you, we can get you points there.

Just a thought.

 

[wdrl]

But this also indicates there's an untapped market opportunity for them here.

If they could get enough points at certain closed resorts, say OKW, then they could do a soft sell of that resort as a cheaper alternative to the new currently marketed resorts. You know. A family takes the tour but balks at the price at VGF (soon) and instead of losing ANY sale, the guide whips out an OKW brochure, plays up all the great features and lower price, plus the fact that it's a "closed" resort, but hey, for you, we can get you points there.

Just a thought.

DVD has already used that strategy in the last few years. In early 2010, DVD positioned OKW as a low cost alternative to BLT and AKV, which at that time had base prices in the $112-$120 range. DVD lowered the price of OKW from $101/point to $90/point and sold over 100,000 OKW points in a year (see http://dvcnews.com/forum/showthread.php?7956-OKW-Sales-Data-for-12-Months&p=98349#post98349 for more information).

When its inventory of OKW points ran short by early 2011, DVD positioned SSR as its low cost alternative to BLT, AKV, and Aulani. If I recall correctly, SSR was priced at $95, which was much cheaper than the other resorts being actively marketed at that time.

Currently, DVD appears to be using Boardwalk Villas as a low cost alternative to AKV and Aulani. BWV sales jumped in January 2013 (see http://dvcnews.com/index.php/dvc-program/financial/2198-monthly-sales-data-for-january-2013) and preliminary data indicates BWV sales have more than doubled in February 2013.

 

[BWV Dreamin]

Well I think this news is going to really bump up the rental prices. Also, look for an initial run on resales.

 

[tjkraz]

But this also indicates there's an untapped market opportunity for them here.

If they could get enough points at certain closed resorts, say OKW, then they could do a soft sell of that resort as a cheaper alternative to the new currently marketed resorts. You know. A family takes the tour but balks at the price at VGF (soon) and instead of losing ANY sale, the guide whips out an OKW brochure, plays up all the great features and lower price, plus the fact that it's a "closed" resort, but hey, for you, we can get you points there.

Just a thought.

Perhaps. Depends upon how many points they can realistically re-acquire at profitable levels. Back when there was only a $25-30 spread between direct and resale prices, I doubt there was much money to be made at all re-selling those points. When you add up administrative costs, legal costs and all sales overhead (including compensation), how much would realistically be left as profit from those transactions?

But with these price increases, the spread could grow to $60-70 on many resorts.

$130 per point for SSR or OKW really isn't much of a "value" offering when you have AKV at $145 with incentives. (Assuming they don't introduce incentives at older resorts...which is a possibility.)

I think this is more about feeding the member need for add-ons. Those 25-30 pt resale contracts are still extremely hard to come by--and priced much higher than a 150+ point contract.

What DVC could do better is to publicize the availability of older resorts...at least to current members. Want to add 25pts at BWV? You either spend months poring over the resale listings or simply write a check for $130 per.

 

[z28wiz]

Here is the new prices and oh boy on some.

Effective March 20, 2013

Villas at Disney’s Grand Californian Hotel: $165 per point
Aulani, Disney Vacation Club Villas: $145pp
Disney’s Animal Kingdom Villas: $145pp
Disney’s Beach Club Villas: $130pp
Disney’s BoardWalk Villas: $130pp
Disney’s Old Key West Resort: $130pp
Disney’s Saratoga Springs Resort & Spa: $130pp
Villas at Disney’s Wilderness Lodge: $130pp
Disney’s Hilton Head Island Resort: $115pp
Disney’s Vero Beach Resort: $115pp

 

[Mystery Fan]

I just saw this and thought I would share.
http://www.dvcnews.com/index.php/dvc-program/financial/2215-massive-price-increases-on-march-20

The rumors are true...ten of the eleven Disney Vacation Club properties will see their prices go up effective March 20, 2013. DVC had previously announced increases at Disney's Animal Kingdom Villas and Aulani, Disney Vacation Club Villas. But word has since emerged that increases will also follow for nearly every other property. New rates are as follows:

Villas at Disney's Grand Californian Hotel: $165 per point
Aulani, Disney Vacation Club Villas: $145pp
Disney's Animal Kingdom Villas: $145pp
Disney's Beach Club Villas: $130pp
Disney's BoardWalk Villas: $130pp
Disney's Old Key West Resort: $130pp
Disney's Saratoga Springs Resort & Spa: $130pp
Villas at Disney's Wilderness Lodge: $130pp
Disney's Hilton Head Island Resort: $115pp
Disney's Vero Beach Resort: $115pp

 

[JKMJ441724]

Wow. I wanted to do an add-on but I guess I will be doing that resale.

 

[bwvBound]

Link to existing conversation, currently at 10 pages:
http://disboards.com/showthread.php?t=3072130

 

[thptrek]

Did I miss BLT new prices?