BWV, BCV, WLV Extension?

[mickeys girl 52]

I am considering adding on points. Does anyone no if any of the other resorts will be offering an extension like OKW?? My son believes they will because he thinks DVC is such a money maker for Disney. But if that is the case wouldn't they make more money letting the 2042 date run out than they could rent them out themselves and make all the profit? I was just wondering if any guides have said anything about the next DVC to get an extension.

 

[drusba]

They did it with OKW but then have not given any indication since that they will with other resorts. Not really known is how successful the extension was. Many reported getting it and just as many reported rejecting it but I don't know whether Disney evaluated the result as a success or failure. Which way they concluded could of course effect whether they will do it again for other resorts any time in the near future. Most likely they will eventually do it but it is a question of when and that could be many years from now. The assumption that they will be better off by letting the dates run and then making "more" money renting the units is likely not a driving consideration. If it were, they wouldn't sell any DVCs. DVC gives Disney large amounts up front in sales when a building is young (1. big profit up front). The building's operating and maintenance costs are then borne by the members and not Disney for all years of operation (2. Disney avoids paying those costs). Meanwhile Disney acts as the managing agent for the resort for which it gets paid a percentage (about 12%) of the dues (3. more profit while the resort is operating) and 4. It gets a large number of customers through DVC that they know are likely going to come every year and spend money at WDW This is a very good profit maker for them and they probably sometimes ask why they keep any rental hotels.

 

[Chuck S]

There may also be a difference in the long term plans for the various resorts. OKW is a free standing DVC resort, not associated with an accompanying Disney hotel. What if Disney plans to sell off managemet contracts at those hotels in the future, or lease out the properties like they did with the Disney Inn/Shades of Green. The timeshare addition could be a problem in those types of situations. Perhaps they simply want to leave their options open until closer to 2042.

 

[tjkraz]

I'm sure there will be ownership beyond 2042 for those older resorts. But what we really don't know is when extensions may be offered and for what duration.

The 15-year period of the OKW extension was a bit risky for DVD given that it's such a short term. If only 40% of owners accepted the offer, DVD will receive 60% of the resort's points for a period of only 15 years. And I doubt they will be very successful in marketing 15-year contracts to buyers.

Of course, with OKW consisting of many stand-alone buildings, I suspect DVD will have some room to operate come 2042. It wouldn't surprise me if they found a way to keep certain buildings intact for those who own through 2057 while creating a separate condo association for other buildings or re-developing the property.

If BWV, BCV, etc. are to be extended, my current thinking is that we will see full 50-year extensions offered sometime in the next 10-20 years. They'll be discounted somewhat but still quite expensive.

Really I view that as a win/win proposition for DVC. There are limited marketing costs involved (notices to the existing owners.) The price will certainly be higher than the present value of the extension years as was the case with OKW. Contracts that are not extended will revert back to DVC for full 50-year "new" sales in a few years, but the extension offer will help reduce the deluge of unsold inventory that would otherwise fall into their laps come February 2042.

Of course, offering extensions similar to OKW would help pad the sales numbers for a year or two. So from that perspective, it wouldn't surprise me if they announced extensions tomorrow. ;P

 

[DVC92]

No more than about 30% of OKW's points were extended. Whether that constitutes success is a matter of conjecture.

 

[Chuck S]

It wouldn't surprise me if they found a way to keep certain buildings intact for those who own through 2057 while creating a separate condo association for other buildings or re-developing the property.

No more than about 30% of OKW's points were extended. Whether that constitutes success is a matter of conjecture.

I don't see how they couldn't leave the entire resort intact, even if only 30% of the owners extended, since that ownership is legally tied to specific physical buildings. True, they could swap contracts with owners so the remainig owners only own specific buildings, but could they actually, legally, force any owner to swap deeded contracts under FL timeshare law?