Big Direct Price Increases Coming

[agie65]

I see a lots of buybacks coming soon!

OKW, SSR on hot seat for few months, recently AKL got ROFRed at $85/pp

 

[dvcdream4fld]

It's possible that disney could raise prices and increase the length of contract.

 

[DizBub]

DVC is reportedly going to convert hotel rooms at Wilderness Lodge. BCV and BWV are rumored to be doing the same. Oddly enough these 3 resorts are going up to $155 pp. Coincidence? I think not.

Hopefully they will be selling extended contracts and offering current owners the chance to extend also.

 

[dvcdream4fld]

My thoughts for what it's worth. Disney increases prices and converts more hotel rooms at existing DVC resorts. By taking deluxe hotel rooms away, the hotel room inventory goes down making rooms more valuable allowing disney to charge more. The new dvc converted room don't offer the same "bright and shiny" as poly or vgf, so disney also offers longer contracts to sell the existing properties which also gives existing dvc reason to extend their contracts. Seems to me the best way to transition to a new generation of dvc owners for existing dvc.

 

[DVCjuggernaut]

If anything, I suspect this will only reinforce the resale market rather than cause a price increase in the short term. It makes resale a better deal. In the long-term, people who bought VGF at these higher prices will want to sell back higher for a decent return, but that's years down the line...if ever.

 

[chalee94]

It's possible that disney could raise prices and increase the length of contract.

The new dvc converted room don't offer the same "bright and shiny" as poly or vgf, so disney also offers longer contracts to sell the existing properties which also gives existing dvc reason to extend their contracts.

you might want to read this thread:

http://www.disboards.com/showthread.php?t=3357645&page=2

it's not remotely as simple as: "DVC decides to increase the length of the contract."

the OKW extension was a trainwreck and continues to have some questions as to whether it was even legal...i don't share your optimism on the probability of extensions, even if disney wanted to do it...

 

[jerseyduke]

Och, why would anyone buy a 2042 resort at those prices instead of something with 50 years on it? Makes no sense to me.

Exactly!
at 155, a 2042 resort is 5.54 per point per year. at 180 VGF is 3.75 per point per year!
Not to mention, in 2042 the first is worth Zero. the VGF will still be worth something.

 

[jerseyduke]

DVC is reportedly going to convert hotel rooms at Wilderness Lodge. BCV and BWV are rumored to be doing the same. Oddly enough these 3 resorts are going up to $155 pp. Coincidence? I think not.

Hopefully they will be selling extended contracts and offering current owners the chance to extend also.

I think there are strong rumors for the Wilderness Lodge. I have never really looked at the cost in cash for Boardwalk, but WL is cheaper than beach club, so why not? also I have heard there are occupancy issues with WL, but I do not know if that is true.

 

[JimMIA]

Och, why would anyone buy a 2042 resort at those prices instead of something with 50 years on it? Makes no sense to me.

To me, a much better question is: "Why would anyone pay those prices direct when they can get the same points for half that price (or less) buying resale?"

I think the answer to both questions is that some people will simply not buy any way other than direct -- and they will pay whatever Disney charges. There is no financial logic to it; it's not a financial decision for them.

 

[MountainMouse]

To me, a much better question is: "Why would anyone pay those prices direct when they can get the same points for half that price (or less) buying resale?" I think the answer to both questions is that some people will simply not buy any way other than direct -- and they will pay whatever Disney charges. There is no financial logic to it; it's not a financial decision for them.

Lack of knowledge is a factor as well. While it may be hard to grasp some folks don't know there is a resale market and some that do know about it don't trust it. People learn about DVC at the parks or on cruises and make impulse purchases based on biased financial numbers they are presented. Some wise up in time to rescind and some live with the decision.

 

[bellablue2]

Long time owners would know much better than me, but I think an increase in direct prices would result in an increase in resale costs. Not dollar for dollar but an increase.

i am among those that think resale prices will rise shortly. i have been in the market recently, and i see demand for resale contract as very strong now.

 

[bellablue2]

Och, why would anyone buy a 2042 resort at those prices instead of something with 50 years on it? Makes no sense to me.

i don't think that is the objective...it's to make the newer resorts look like the better bargain.

 

[MountainMouse]

i am among those that think resale prices will rise shortly. i have been in the market recently, and i see demand for resale contract as very strong now.

I haven't watched the resale market to really know, but it certainly appears that demand has risen. I pay most attention to BLT since that's where we purchased and there are fewer contracts available and when you do see a reasonably priced one it goes quickly. Probably just a temporary surge for resale but interesting that direct sales had such a bad November while it looks like resale is strong.

 

[jerseyduke]

i don't think that is the objective...it's to make the newer resorts look like the better bargain.

Probably, I know November sales were weak, but BWV, BCV, and VWL (the three that went up 25$) sold a TOTAL of 1427 points in November. 35,675 would be the total additional profit at the 'new prices' They would have gotten twice as much raising VGF 1$ per point (71,922)

This is a posturing move.

 

[luckyman_apd]

The only thing that makes sense or really matters is the price of new resorts. It sucks for anyone waiting to buy a SOLD OUT resort...but they are sold out. It's not like Disney is stuck with a ton of inventory and then raising the price on something they can't unload. With VGF pushing towards the back end of sales and Poly coming around the corner....raise the price of the old, so the new looks like a bargain. It makes perfect sense. I highly doubt they have a big cash flowing from sales of sold out resorts by waiting list. But with a slew of potential Poly buyers around the corner....Hey look at this New Resort! Get at this price now while it's discounted....After all, the other resorts are selling at $XX. Marketing 101

 

[cbnsoul]

Talked to our guide today. The price increases are going to happen on January 6 as reported. Interestingly, there will be no wait list price guarantees, unlike the last time the "sold out" resorts had a price increase. If you don't have the points by 1/6, the price will go up, even if you are on the wait list. He also said that the guides had a meeting about the Poly last week but couldn't offer any additional details (yet).