This doesn't make a whole lot of sense to me. Like I say below “I don’t think Disney ever thought people would EVER sell a DVC membership.” That’s what’s driving this, keeping people in their contracts.
I think if anything this will increase the resale market for the existing 14 resorts and when they start to be on the market depress resale for new resorts. I also think it’s going to slow sales of new resorts in the short term.
I just bought an SSR Contract yesterday. I found a 160 point contract at $95 a point. Disney is probably going to buy it with ROFR but it was a deal I couldn't pass up. My purchase will expire when I would be 100. I'll probably be dead by then and with no kids, I will go to my brother who will sell it at whatever he gets for it. Another resale.
I think Disney was/is marketing to younger families, hence the 50 year deeds. They were thinking people would buy in their 20's or 30's and wouldn't need it when they were in their 70’s or 80's and their kids would buy a new contract. I think a lot of people are buying in their 40's, 50's and even their 60’s and the deed expiration doesn't affect them all that much, or they don't care all that much about the membership "perks". There are a lot more resale contracts available because people want to sell them, for whatever reason. I don’t think Disney ever thought people would EVER sell a DVC membership. I think Disney is trying to squelch resale as much as they can because it doesn’t fit into their “vision” for DVC – buy it once, buy it for life, never sell it.
What they are going to do when they start to sell Reflections or Riviera? Sure they can push that resale of Reflections or Riviera can't exchange into the original 14 resorts so you want to buy direct. Are they going to say to the purchasers that they can’t resell them since they won’t have much value? Are a lot of people are going to say forget it and head to resale to purchase an existing 1 of 14 properties which still have value because they have exchange privileges? I think so especially since some of them have 40 or more years left on their contracts.
With the exception of OKW, Aulani, Vero Beach and Hilton Head, the rest of the resorts are extremely nice (not that those I listed aren’t) because they are located near a destination; a theme park, Disney Springs or a Water Park. Who’s going to buy a Riviera resale contract when they can’t do much with it? Who on here, based on what they have seen or heard, prior to this announcement, actually was looking forward to Reflections or Riviera? One is a high rise hotel and one is lakeside, both near nothing? I’d stay at Animal Kingdom before I stay at either of these and I don’t like Animal Kingdom. People are going to buy a contract at 1 of the 14. There always seems to be several hundred on the market. Granted, over time, as expiration dates near, a contract’s value will lessen but it’s been used a heck of a lot too.
Walt had said they will always have room to do anything but looking at a map that really isn't the case. I wrote this in another thread; they can't build all that much more; they are running out of room. They can build maybe 6 more resorts and if they build 6 then all really couldn't be exclusively for DVC. And most of them would be outliers, none of them would be in a prime spot. The NE corner is used for "backstage stuff". There is some land along with the southwest corner but it wouldn't be prime space for a resort. And I'm pretty sure they want to keep some land for another theme park, whatever it may be. Maybe they can build 6 more resorts and it would take 20 years and that’s without a recession.
I think this is going to come back and bite Disney in their behind. They are thinking they are going to kill the resale market. They aren’t at least until sometime in the 2030’s. I would imagine that at some point Disney is going to have to enter the resale market. Granted they would probably only buy back points at .80 on the dollar but they will guarantee they will buy a contract back after a predetermined number of years.
I think if anything this will increase the resale market for the existing 14 resorts and when they start to be on the market depress resale for new resorts. I also think it’s going to slow sales of new resorts in the short term.
I just bought an SSR Contract yesterday. I found a 160 point contract at $95 a point. Disney is probably going to buy it with ROFR but it was a deal I couldn't pass up. My purchase will expire when I would be 100. I'll probably be dead by then and with no kids, I will go to my brother who will sell it at whatever he gets for it. Another resale.
I think Disney was/is marketing to younger families, hence the 50 year deeds. They were thinking people would buy in their 20's or 30's and wouldn't need it when they were in their 70’s or 80's and their kids would buy a new contract. I think a lot of people are buying in their 40's, 50's and even their 60’s and the deed expiration doesn't affect them all that much, or they don't care all that much about the membership "perks". There are a lot more resale contracts available because people want to sell them, for whatever reason. I don’t think Disney ever thought people would EVER sell a DVC membership. I think Disney is trying to squelch resale as much as they can because it doesn’t fit into their “vision” for DVC – buy it once, buy it for life, never sell it.
What they are going to do when they start to sell Reflections or Riviera? Sure they can push that resale of Reflections or Riviera can't exchange into the original 14 resorts so you want to buy direct. Are they going to say to the purchasers that they can’t resell them since they won’t have much value? Are a lot of people are going to say forget it and head to resale to purchase an existing 1 of 14 properties which still have value because they have exchange privileges? I think so especially since some of them have 40 or more years left on their contracts.
With the exception of OKW, Aulani, Vero Beach and Hilton Head, the rest of the resorts are extremely nice (not that those I listed aren’t) because they are located near a destination; a theme park, Disney Springs or a Water Park. Who’s going to buy a Riviera resale contract when they can’t do much with it? Who on here, based on what they have seen or heard, prior to this announcement, actually was looking forward to Reflections or Riviera? One is a high rise hotel and one is lakeside, both near nothing? I’d stay at Animal Kingdom before I stay at either of these and I don’t like Animal Kingdom. People are going to buy a contract at 1 of the 14. There always seems to be several hundred on the market. Granted, over time, as expiration dates near, a contract’s value will lessen but it’s been used a heck of a lot too.
Walt had said they will always have room to do anything but looking at a map that really isn't the case. I wrote this in another thread; they can't build all that much more; they are running out of room. They can build maybe 6 more resorts and if they build 6 then all really couldn't be exclusively for DVC. And most of them would be outliers, none of them would be in a prime spot. The NE corner is used for "backstage stuff". There is some land along with the southwest corner but it wouldn't be prime space for a resort. And I'm pretty sure they want to keep some land for another theme park, whatever it may be. Maybe they can build 6 more resorts and it would take 20 years and that’s without a recession.
I think this is going to come back and bite Disney in their behind. They are thinking they are going to kill the resale market. They aren’t at least until sometime in the 2030’s. I would imagine that at some point Disney is going to have to enter the resale market. Granted they would probably only buy back points at .80 on the dollar but they will guarantee they will buy a contract back after a predetermined number of years.
However, you have to use more points to book the same room starting in 2020 pretty much across the board. I know there are exceptions, but I have yet to see someone say, "This reallocation actually helps me!" even though someone, somewhere was helped.
It's an Epcot resort like PVB is an Epcot resort. It's within transportation distance of Epcot like all resorts are. Following that rational Pop, AoA and CBR are now referred to as Epcot resorts? Marketing will call it an Epcot resort - I'd expect nothing else.
