Constant price hikes, devalue DVC?

[SL6827]

Will the constant price hikes ever start to devalue DVC for new buyers?

 

[2Lunds]

Just the opposite IMO. Locking in your costs now (ie - pre-paying by purchasing something like DVC) seems like a great way to get a handle on price increases (for accommodations at least).

 

[Wiltony]

Eventually, but only indirectly. For the time being, Disney and DVC are as popular as they've ever been. Once Disney pricing starts to finally hit that point of elasticity where it drives demand down, DVC value will follow, but we haven't hit that point yet.

With impending recession and ongoing price hikes, I would venture to guess it's coming.

 

[SL6827]

Just the opposite IMO. Locking in your costs now (ie - pre-paying by purchasing something like DVC) seems like a great way to get a handle on price increases (for accommodations at least).

Right, for lodging anyways. But I meant for all the other cost involved.

 

[Sandisw]

I don’t know if it will ever devalue it in the sense that it should always give you a great benefit for cheaper ways to stay onsite in the deluxe resorts.

However, if demand for those going to Disney goes down then buying DVC might not make sense if they don’t want to visit on a regular basis.

I think the beauty with DVC is to allow for the park visits to take a different feel because one will be back over and over.

 

[SL6827]

Ya, devalue it in regards to people not visiting near as much.

 

[DebbieB]

I think not having an Annual Pass available would turn me off. I bought enough points for a 1 bedroom twice a year, an AP was essential, I’d time the following year trip right before it expired, so 3 trips.

 

[SL6827]

I think not having an Annual Pass available would turn me off. I bought enough points for a 1 bedroom twice a year, an AP was essential, I’d time the following year trip right before it expired, so 3 trips.

Exactly. Can't imagine owning enough DVC points for a few trips each year and not having an AP. I would have had to sell the contract.

 

[RichVIII]

It could most impact (in my opinion) DVC rentals. Yes, will people still be interested in saving money for their accommodations, you bet. Can Disney with more flexibility discount rooms to adjust, you bet. The challenge I see are families who get priced out or simply see themselves going less because of the increased costs. That said, everyone complains about how they are going to change the behavior and they don’t. I would also argue that DVC is truly a luxury purchase for those with more disposable income. Yes, people stretch or take loans but with the average buy in now 30k+, there is still some elasticity for the DVC buyer.

 

[DL1WDW2]

Disney has become less of a Value over the years . But glad to have & keep my points . It helps to monitor the point charts for value. But worry about maintenance dues & increases.
Doyou think the one time use points will increase next ?

 

[CarolMN]

......... everyone complains about how they are going to change the behavior and they don’t.

Agree! And when those who do change, there are others who take their place. So far, demand is not slowing down.

DVC will retain its value as long as there is demand for the parks and on site hotel prices remain high.

 

[bobbiwoz]

I think not having an Annual Pass available would turn me off. I bought enough points for a 1 bedroom twice a year, an AP was essential, I’d time the following year trip right before it expired, so 3 trips.

I think that without the ability to purchase APs, the willingness to buy points to go more than once a year decreases.

 

[2Lunds]

I think that without the ability to purchase APs, the willingness to buy points to go more than once a year decreases.

Good point - we're already contemplating another contract to facilitate a second trip, and the AP will be a big factor for consideration.

 

[Anthony1971]

Long term if DVC overbuilds compared to demand it will drop. Where that demand ends is anyone's guess. Prices become to high, People just lose interest in going, Disney doesn't maintain as at once did, or just as above they just plain overbuild. In the short term the prices will drop like a rock as they did in the mid-late 2000's and it took a while to recover. DVC is real estate and considered a Condo which is the first and biggest drop and last to recover in Real Estate becuse they are managed as defaults happen the remaining may need to cover the lost amounts so potentially maintence can go way up or the buildings are not miantained properly. But this like all cycles in the past will return. On the Flip there were people who bought DVC on the cheap and sold a few years later for a profit.... and a more that bought that wanted DVC for the long haul and got a great deal.

 

[Aela]

We bought enough points for two trips a year, assuming APs would come back. Now it kinda blows. Our Christmas trip this year is going to be MVMCP and a number of days at the resorts pin trading and looking at the Gingerbread houses. If the weather is nice we’ll hit the water parks. Not worth shelling out for another set of tickets this year, if we can’t add AP again.

 

[tjkraz]

At today's prices, 250 points will set you back almost $50k. Before making that sort of commitment, people should be doing some soul-searching about whether they have the resources for travel, tickets, food and all other aspects of the vacation multiple times per year, for many years to come.

Probably the most unsettled right now are long-term members who bought hundreds, perhaps thousands of points at much lower prices years ago. There's no easy answer for lack of APs if you have a pattern of visiting 4 or 5 times per year.

But if we're talking about the future of DVC, I think there will be fewer people holding large numbers of points. Not just because of general price increases but because the cost of DVC itself has risen sharply. And there's nothing wrong with budgeting for one Disney trip per year.

 

[dwg]

At today's prices, 250 points will set you back almost $50k. Before making that sort of commitment, people should be doing some soul-searching about whether they have the resources for travel, tickets, food and all other aspects of the vacation multiple times per year, for many years to come.

Probably the most unsettled right now are long-term members who bought hundreds, perhaps thousands of points at much lower prices years ago. There's no easy answer for lack of APs if you have a pattern of visiting 4 or 5 times per year.

But if we're talking about the future of DVC, I think there will be fewer people holding large numbers of points. Not just because of general price increases but because the cost of DVC itself has risen sharply. And there's nothing wrong with budgeting for one Disney trip per year.

Yes, We have 250 points and you are correct about the 50K. I could never afford it now. We paid about 16K back in 2000. I believe our annual dues were under 1k but are almost 2k now. We have been paying dues with automatic withdrawals so really don't feel it but until recently did not realize dues have gone up that much. We enjoy staying in a DVC resort and wouldn't have it any other way as far as room accommodations but the amount of annual dues did give me pause.

Based on all of the changes being made recently including increased costs, cut backs in customer service, all around changes to what is involved in planning for a trip to WDW these days including paying extra for Genie+/LL and competing with open table to make ADR's at 60 days out ( I think my choices were limited on the WDW site at 60 days because of open table. Not sure.)

Anyway based on all these changes happening and the current costs of becoming a DVC member I do feel like something has to give. I do not think it will necessarily affect direct sales as those prices are set by Disney. I do think it will affect resales with the price of those dropping for all the reasons stated and the fact that Disney keeps stripping benefits from resale contracts.

Here is a related thread I started in the DVC Misc section based on a thread started in the main Park Section Forum that was started by Webmaster Jackie. Both are based on an article indicating that Disney does not value their legacy guests.

how-long-before-this-attitude-from-disney-devalues-dvc.3895516

 

[Maistre Gracey]

Long term if DVC overbuilds compared to demand it will drop. Where that demand ends is anyone's guess. Prices become to high, People just lose interest in going, Disney doesn't maintain as at once did, or just as above they just plain overbuild. In the short term the prices will drop like a rock as they did in the mid-late 2000's and it took a while to recover. DVC is real estate and considered a Condo which is the first and biggest drop and last to recover in Real Estate becuse they are managed as defaults happen the remaining may need to cover the lost amounts so potentially maintence can go way up or the buildings are not miantained properly. But this like all cycles in the past will return. On the Flip there were people who bought DVC on the cheap and sold a few years later for a profit.... and a more that bought that wanted DVC for the long haul and got a great deal.

DVC will overbuild… just like Disney overdoes everything good. One too many pirate sequels, and the every day vs once a week “Who Wants to be a Millionaire” show. They stretch everything that is successful a notch too far. Everything.
You can count on DVC resorts doing the same.

 

[bobbiwoz]

It’s a small thing, but things like this will help people feel special about being DVC. I remember Members Meets, and enjoyed going when I was there.

 

[Sandisw]

View attachment 710696
It’s a small thing, but things like this will help people feel special about being DVC. I remember Members Meets, and enjoyed going when I was there.

I agree! I wish I would be there!,,