Bold Prediction: Riviera allows trading-in points?

[BlackTea]

I always have the opinion that Disney is well aware the value of a healthy resale market for their vacation club business. Recent example, hope not just me reading things this way, the hike in direct sale price in Jan. Since most existing resorts are sold out, their gain from such an action is minimal, thus to me, it was intended to soften the blow to the resale market introduced by the resale restrictions. It was a combo, and based on what I saw in the past month, things seem to have balanced out pretty well.


With this said, buying resale of Riviera means you can only stay with Riviera? This basically will destroy Riviera resale…and doesn’t seem to fit into their views. So I am guessing, a big and bold guess, there is another half of the policy hasn’t been announced yet…they may use Riviera to experiment, allowing direct owners to trade-in their points back to Disney.


Via ROFR, Disney has been closely monitoring resale market, and they have all the data points regarding how long an owner holds onto their contract, how much new users are willing to pay to become owner, how much they will accept to get rid of the ownership, and how the aging of resorts impacting the sales, etc.. It is obvious the whole thing could be a huge cash cow to capture, sell, trade-in, mark-up, resell, then repeat…


If this is the direction that DVC is about to go, then I’d bet a very high price on Riviera point…229?


Just some idea…for entertainment…

 

[GoofyDisneyDaddy]

Your post doesn’t make any sense to me. Maybe I’m just not following.

Disney already has this through ROFR. ROFR is basically trading in your points to Disney, but Disney gets to choose whether it wants to accept the trade or not. And if Disney's “Trade in” price wasn’t as good as the resale market price, then an owner should put on the market. Disney could become a broker, but this far has expressed no desire to get into that business and I don’t see that changing.

 

[_auroraborealis_]

They also will buy them back without ROFR. They offer laughable rates, but they will do it.

I think it important to note that DVC has new leadership right now. Leaning on history is not necessarily valid when there is executive turnover.

 

[GrumpyInPhilly]

Welcome to the DIS BlackTea.

 

[KAT4DISNEY]

I always have the opinion that Disney is well aware the value of a healthy resale market for their vacation club business. Recent example, hope not just me reading things this way, the hike in direct sale price in Jan. Since most existing resorts are sold out, their gain from such an action is minimal, thus to me, it was intended to soften the blow to the resale market introduced by the resale restrictions. It was a combo, and based on what I saw in the past month, things seem to have balanced out pretty well.


With this said, buying resale of Riviera means you can only stay with Riviera? This basically will destroy Riviera resale…and doesn’t seem to fit into their views. So I am guessing, a big and bold guess, there is another half of the policy hasn’t been announced yet…they may use Riviera to experiment, allowing direct owners to trade-in their points back to Disney.


Via ROFR, Disney has been closely monitoring resale market, and they have all the data points regarding how long an owner holds onto their contract, how much new users are willing to pay to become owner, how much they will accept to get rid of the ownership, and how the aging of resorts impacting the sales, etc.. It is obvious the whole thing could be a huge cash cow to capture, sell, trade-in, mark-up, resell, then repeat…


If this is the direction that DVC is about to go, then I’d bet a very high price on Riviera point…229?


Just some idea…for entertainment…

One thing is that DVC choose to go the route with their timeshare where a buyer actually owns a deeded real estate portion. That real estate is tied to a land lease that expires on a certain date. So they end up restricted on some key components reselling just like any other owner.

I don’t know if you saw the information in the updated multi site POS but they are leaving options open where an additional purchase or fee might be paid that will remove restrictions from points purchased via resale.