100 Point RIV for $135

[ClemTig]

This is true, but they might have a studio or two to rent for cash and 12 bungalows to rent. For some reason they know they need a higher ratios of studios, but do not make resorts with more.

Probably trying to get DVC members to burn points faster for higher room rate.

 

[tellingson]

Wow! I sure wish the point value on 1-bedrooms reflected the rack rate. I would be much happier booking them. I feel like the 1-bedrooms cost double the studio points or even more and I'm struggling to figure out why. The rooms are definitely nicer but not twice as good. Additionally going from a 1-bedroom to a 2-bedroom is super inexpensive and so we typically just opt for that and just take another family with us. We could book studios, but with young kids, its nice to have a separate room.

 

[ehh]

Probably trying to get DVC members to burn points faster for higher room rate.

What does that get Disney?

In addition to making more breakage income for every point converted to a studio cash booking, Disney also doesn't benefit from members actually using their points. In an ideal world for Disney, we all buy our hundreds of points per year and then never use them (and Disney cuts back staffing and maintenance to accommodate the lack of occupancy).

Poly has 380 rooms, a 360/20 split between studios and bungalows.

If Disney has 30,000 breakage points to convert to cash bookings at the Poly this year, they have a full range of options, but these are the two extremes:
Extreme 1 - Breakage is All Bungalows

• About 30 weeks of bungalow bookings (1 bungalow for 30 weeks, or 3 bungalows for 10 week, or 10 bungalows for 3 night, etc.). For perspective, there are over 1,000 Poly bungalow weeks in a year.
• $630k-830k in breakage income
• Popular and point-accessible studios book up reliably, so maximal points are used.

Extreme 2 - Breakage is All Studios

• About 200 weeks of studio bookings (4 studios for 50 weeks, or 50 studios for 4 weeks, or 350 studios for 4 nights). For perspective, there are roughly 19,000 Poly studio weeks in a year.
• $880k-1.26m in breakage income
• Some bungalows might remain empty due to points requirements being out of reach of many/most owners. This reduces points used and leads to more breakage. Maybe they also get to save on housekeeping costs.

I know which I would prefer if I were running the Poly. More likely it's close to original points distribution (74% studio / 26% bungalow), but I would be surprised if it didn't heavily lean toward more studio bookings, if they're allowed to deviate from original points distribution.

 

[CaliAdventurer]

Wow! I sure wish the point value on 1-bedrooms reflected the rack rate. I would be much happier booking them. I feel like the 1-bedrooms cost double the studio points or even more and I'm struggling to figure out why. The rooms are definitely nicer but not twice as good. Additionally going from a 1-bedroom to a 2-bedroom is super inexpensive and so we typically just opt for that and just take another family with us. We could book studios, but with young kids, its nice to have a separate room.

The sleeping arrangements may not be different bug the functionality is definitely twice as good. It’s a completely different vacation practically, IMHO. But yeah, we’re needing to conserve our VGC points so its studios for us this year and man those points seem so much higher.

 

[sethschroeder]

The maintenance fees will be higher rest assured and it has been stated in some other threads but RIV does not pay for the Skyliner.

How do you know? Is their any legal paperwork or MF breakdowns?

Also is it possible that it will pay for the Skyliner just not yet since it just opened?

 

[Drewferin]

Contract pending @ 135 it appears...

 

[€lairebear]

Talking about riviera resale, did anyone see the riviera contract that is in sales pending status at dvcresalemaket? It pended are 144pp. Not sure when it went on sales pending status however the contract was listed on 2/3/2020. I wonder how much it was sold for. I guess we won’t find out until next month.

 

[TexasChick123]

Contract pending @ 135 it appears...

I’m pretty sure I saw someone say it went that first day within an hour of being listed. You know how great Fidelity is about updating their website...

 

[TexasChick123]

Talking about riviera resale, did anyone see the riviera contract that is in sales pending status at dvcresalemaket? It pended are 144pp. Not sure when it went on sales pending status however the contract was listed on 2/3/2020. I wonder how much it was sold for. I guess we won’t find out until next month. View attachment 474712

I think it sold for $139pp shortly after listing. The seller took her offer immediately. Someone on another board bought it. I think I’m matching up this one to the correct buyer from the info she reported.

 

[Soap_1984]

I know there is limited supply at the moment so prices at Riv resale are bouyed, but if the price remained at or above $140 it will be interesting to see what happens; I am not sure how it benefits disney if the only effect is people can just stay at their home resort? If people buy I resale they clearly don't care about "qualifying" points since they went in knowing they could only stay in Riv. Of course they could mess with the points charts and make booking certain rooms very difficult.
I never entertained the idea that prices may not be affected, makes me concerned with what they will do next to try and crush the value of everyone's contract if the resale restrictions aren't effective (or effective enough).

 

[Sandisw]

I know there is limited supply at the moment so prices at Riv resale are bouyed, but if the price remained at or above $140 it will be interesting to see what happens; I am not sure how it benefits disney if the only effect is people can just stay at their home resort? If people buy I resale they clearly don't care about "qualifying" points since they went in knowing they could only stay in Riv. Of course they could mess with the points charts and make booking certain rooms very difficult.
I never entertained the idea that prices may not be affected, makes me concerned with what they will do next to try and crush the value of everyone's contract if the resale restrictions aren't effective (or effective enough).

What we don’t know, though, is if the buyer already owns qualified points,

If they do, then owning RIV only isnt as a big of a deal vs, someone who only owns RIV resale points.

 

[TexasChick123]

The person who bought the one for $139pp does own other qualified points.

I honestly didn’t even think about what Disney may do if the restrictions don’t depress the value enough and the plan of selling the upgrade package doesn’t elicit a lot of buyers for it. I wonder if the feared separate booking windows for direct and resale will come to fruition at some point. Like most things, I’m sure they’ll grandfather in current owners and make it a change for new purchasers starting on “x” date if it comes to that. I sincerely hope not, but who knows what their plans are at this point.

 

[Sandisw]

The person who bought the one for $139pp does own other qualified points.

I honestly didn’t even think about what Disney may do if the restrictions don’t depress the value enough and the plan of selling the upgrade package doesn’t elicit a lot of buyers for it. I wonder if the feared separate booking windows for direct and resale will come to fruition at some point. Like most things, I’m sure they’ll grandfather in current owners and make it a change for new purchasers starting on “x” date if it comes to that. I sincerely hope not, but who knows what their plans are at this point.

I am not sure if they can do that or not in terms of different booking windows.

I think it’s too early to tell what these will settle at, but so far, the prices are higher than I though they would be.

For this buyer though, they ended up saving $56/ pt over direct, which is still a great deal!

ETA: What we do know is that so far, those priced at $140 or less go. Those listed higher are not..so it appears the sellers of the higher priced ones must be Willing to hold off

 

[jerseyduke]

The person who bought the one for $139pp does own other qualified points.

I honestly didn’t even think about what Disney may do if the restrictions don’t depress the value enough and the plan of selling the upgrade package doesn’t elicit a lot of buyers for it. I wonder if the feared separate booking windows for direct and resale will come to fruition at some point. Like most things, I’m sure they’ll grandfather in current owners and make it a change for new purchasers starting on “x” date if it comes to that. I sincerely hope not, but who knows what their plans are at this point.

Maybe most people do not care, but one factor for me when I bought my first contract direct was that the available data suggested I had a good out if i needed it (didn't like it, needed the cash, whatever) If I got the impression that this was going to lose 40% of its value the moment I bought it, I would have been a lot more hesitant.
There are a lot of people on here with contracts that they can now sell for a 'profit". Even my direct points, which are at VGF can be sold for a profit. I can not see DRR ever selling resale for more than its current price (at least not anytime soon), not that this is a reason to buy DVC (Speculation) but it sure is nice having something that held its value.

It will also be interesting to see what happens to the price when there is a decent supply of contracts on the resale market, not just a handful. And with the number of points in the resort, that day will come.

 

[Spark65]

How do you know? Is their any legal paperwork or MF breakdowns?

Also is it possible that it will pay for the Skyliner just not yet since it just opened?

There is a post around here from someone, I forget his name, goes to some of the meetings and is fairly well versed in the docs. Someone had made a statement about RIV paying for the Skyliner sometime last fall and he provided info where that was not the case. When I have time to look for it I will.
I know the poster is fairly well known, posts often and goes to annual meetings he also seems to be very knowledgeable in legalities so possibly a lawyer? Maybe?

 

[Spark65]

There are a lot of people on here with contracts that they can now sell for a 'profit". Even my direct points, which are at VGF can be sold for a profit. I can not see DRR ever selling resale for more than its current price (at least not anytime soon), not that this is a reason to buy DVC (Speculation) but it sure is nice having something that held its value.

How many years before your points were considered profitable by you?

 

[jerseyduke]

How many years before your points were considered profitable by you?

Well I bought in 2013. But the point/intent was never profit. The purpose was the vacations. It is just nice that I did buy something that I could sell today and get back my original purchase price. Probably a wash after commissions etc. That's my only real point. Time shares that can make that claim are few and far between, and its a nice aspect about DVC. Heck, most things do not hold their value, they depreciate. Of course I am not getting into Time value of money, lost income on principal used to purchase, etc. But essentially loaning my purchase price to someone since 2013, and in exchange, got one week a year (its actually more like 8 or 9 days) at the Grand Floridian for on average maybe 750$ a year (the average dues), and should I choose get all my money back? I'm cant complain about what I got!

Poly and CCV seem to be a bit below their direct price, and these are the first two that are doing that. Maybe its just more time needed. DRR looks to be reselling for below those 2 and there is no real supply yet.

While its not the intent or purpose, its nice when you can buy something, use it, and recover your costs. DVC was that. Hopefully it stays that. But with the cabins/bungalows and now the DRR resale restriction its questionable.


And my guess as to the poster you are referencing in your other comment is @DenLo, as he or she is very knowledgeable in these matters, but thats' just a guess.

 

[Brianstl]

There is a post around here from someone, I forget his name, goes to some of the meetings and is fairly well versed in the docs. Someone had made a statement about RIV paying for the Skyliner sometime last fall and he provided info where that was not the case. When I have time to look for it I will.
I know the poster is fairly well known, posts often and goes to annual meetings he also seems to be very knowledgeable in legalities so possibly a lawyer? Maybe?

RIV is paying for Skyliner. The portion of dues that covers transportation costs is far higher than any other resort.

https://www.disboards.com/threads/dvc-dues-for-gondola.3750065/post-60621339

 

[Maistre Gracey]

There is a post around here from someone, I forget his name, goes to some of the meetings and is fairly well versed in the docs. Someone had made a statement about RIV paying for the Skyliner sometime last fall and he provided info where that was not the case. When I have time to look for it I will.
I know the poster is fairly well known, posts often and goes to annual meetings he also seems to be very knowledgeable in legalities so possibly a lawyer? Maybe?

The way I understand it, RIV did not pay for the build, but does pay their share of operating costs.

 

[AKNOTTS66]

RIV is paying for Skyliner. The portion of dues that covers transportation costs is far higher than any other resort.

https://www.disboards.com/threads/dvc-dues-for-gondola.3750065/post-60621339

This reply by
aoconnor


"Transportation dues for Riviera are $1.34 per point which is exceptionally high (Poly and VGF are $0.65 and $0.46 respectively and those both share monorail costs). It's odd because gondolas are supposed to be cheap to run and CBR/Pop/AoA have over 5,000 rooms also sharing the costs. Perhaps they're being extra conservative and it will turn out to be less.

That is the primary reason Riviera's dues are so high. 2020 wages are likely also baked in, but the transportation line item is double or more the other resorts. "

It's hard not to believe Riviera is paying more for the skyliner than CBR/POP/AoA. How would transportation be over double if it was even?