Disney's Long Term DVC Strategy

I think there is plenty of interest for a DCL/DVC product. I'm not a lawyer, but the logistics of dealing with a moving asset, extensive maintenance schedules, international laws, etc. might make it complicated.
I think (from Disney’s perspective) they already have things covered— they can let owners use their points (at a terrible conversion rate) to cruise when they want— they also sell a member cruise at extremely high prices, not sure they want to undercut either by introducing a better (for owners) DVC Cruise product. If anything, I think they’d expand to a second (shorter?) member cruise to fill cabins during slow seasons.
 
Longterm I think DVC will:

Continue their efforts to differentiate resale and direct. Resale points are all now restricted one way or another.

Blue card perks will continue evolving in ways that more precisely tie to type of points used and level of engagement. The more frequently direct points are used and the more areas spending occurs, the more opportunities to access the best of DVC perks.

Because I also think their moves are all aligning with the eventuality of point washing.

Over the last decade:

2016 - Resale restricted from blue card

2019 - Resale restricted from trading into all other resorts

Post 2020 - rofr activity diminished

2023/2024/2025 - Changes made to Moonlight Magic to improve control of distribution

2024/2025 - Welcome Home Weeks added

2025 - MMB added

2026 - $500 CAF added to resale purchases

UK people are probably familiar with slowly, slowly, catchey monkey. The monkey here is selling the conversion to direct. It’s almost like they can pull something else to sell out of thin air. Instead of only selling contracts they could also start selling the difference between resale and direct to existing resale owners.

It makes me wonder about adding on. In 10 years how much will it matter if half my points are resale? Will I end up wanting to be full direct and willing to pay to make that happen? Would it be cheaper to buy direct today than buying resale today and point wash later? My guess is: Probably, very likely, and yes lol.
 
It makes me wonder about adding on. In 10 years how much will it matter if half my points are resale? Will I end up wanting to be full direct and willing to pay to make that happen? Would it be cheaper to buy direct today than buying resale today and point wash later? My guess is: Probably, very likely, and yes lol.
Agree with you on longer term strategy.

Point washing must be very expensive if it’s cheaper to buy direct today when there’s often a $40+ gap between direct and resale.

I personally don’t have a need for more points amid all the uncertainty (both DVC’s, economy generally, and my own schedule uncertainty!) and difficulty getting rooms I want when I want to travel. With my kids at peak school/sports activity age, it’s hard to book 11mo out and it’s a lot of work to try to find good rooms on shorter notice…but if I was buying, I still don’t think I can justify more than $25 between direct and resale, as I already have 2x the points I need for Y-card membership… but if I needed 25-50 points more to reach “tier 2 y-card” perks, I’d be pulling that trigger pretty fast.

(Edited to add: assuming T2 perks was something like guaranteed MM entry or an extra special DVC Elite event I really wanted to add…not getting more points for current MMB level perks)
 

It makes me wonder about adding on. In 10 years how much will it matter if half my points are resale? Will I end up wanting to be full direct and willing to pay to make that happen? Would it be cheaper to buy direct today than buying resale today and point wash later? My guess is: Probably, very likely, and yes lol.
I'm thinking you might be right on that. I would like to hope that point washing would be in the $25/pt amount, but I think it's much more likely to be in the $50+/pt range, if it's ever offered at all.
 
I'm thinking you might be right on that. I would like to hope that point washing would be in the $25/pt amount, but I think it's much more likely to be in the $50+/pt range, if it's ever offered at all.
I agree. Any point washing system will be designed to discourage a resale + wash strategy. They want you to buy direct from an actively selling resort because that's where they make the most money. I think we effectively see how expensive Disney thinks a point wash should be with the recent CCV and SSR "flash" sales. Both of those indicate about a $70/point spread if you take average resale prices of CCV and SSR and compare it to the incentive price offered (not factoring in magical beginnings).

Notably, that's about the same spread between RIV direct and resale prices (if you buy enough RIV points and break up the contract enough, you can probably get that spread even a little less than $70/point).

So, buy an actively selling resort with a longer contract and better incentives or buy resale and point wash for more money and a similar loss in value if you ever sell?
 
Point washing must be very expensive if it’s cheaper to buy direct today when there’s often a $40+ gap between direct and resale.

Very good point! Current price gap can be quite large depending on resort. Some are $60 or $80pp, or low as $20 PVB.
I should’ve been more clear about that and which resorts we had been considering. Maybe resale BLT or CCV as SAP+, AKV or SSR as mostly SAP for 1BRs at 7 months, or Poly Direct on a good incentive round (resale price is too high for me to consider today). Got me thinking about direct flash sales getting some sold out resorts in the $135-$150pp range. Would doing one of those or a good Poly round be better than any 5 of those resale today plus eventually point washing them?

it’s hard to book 11mo out and it’s a lot of work to try to find good rooms on shorter notice

Add we have similar issues in this department. Maybe the ability to book restricted resorts helps with this, but maybe even better is for us not to add-on and instead use WDW bouncebacks to book some trips.

Tricky tricky. I’m not sure what to do 😅
 
Oooooh... interesting to think this one through. Only accessible by cruise, or some other way? The idea of dues there boggles my mind. We live on a barrier island and have had insurance companies decide not to renew our policy just because of where we live.
I agree with Castaway - too remote. But with Lookout Cay it’s really just a secluded part of Eleuthera, which has 2 (small) airports and some luxury resorts. They could do it here. Look at this place for example:

https://thecoveeleuthera.com/getting-here/
 
Heck, Disney already sold off the land where the Vero expansion was supposed to happen.
Sure, but I think there are a few reasons why that might not be the end for Vero:

1. When they failed to build Phase 2 that land was basically rendered useless - given the dues subsidized portion... It's kind of amazing they held onto it as long as they did...

2. Had Vero Beach Phase 2 been built, I think It would have been kind of a disaster... The amount of amenities on property would have been overwhelmed. Vero Phase 2 did include an additional pool, but it would have really overwhelmed the other spaces like Green Cabin Room, Wind and Waves, the Feature Pool, etc. Remember, it was built at a time that they thought a resort the size of OKW just needed Olivias and the Gurgling Suitcase... at least the GCR is indoors! (Green Cabin Room, not Grand Ceremonial house!). The smaller room count made the resort into the tranquil beautiful treasure it is in the DVC portfolio now...

I wish the DVC Times Square and Newport Villas had been built... I think they may have become the Crown Jewels in the DVC resorts... Alas...
 
I think there is plenty of interest for a DCL/DVC product. I'm not a lawyer, but the logistics of dealing with a moving asset, extensive maintenance schedules, international laws, etc. might make it complicated.
I do wonder when DCL has their next cruise ships sailing in the 2027-2030 timeframe, if they may oversaturate the market and then start offering a better DVC trade value in the $18-20/pt range. If they did that now, I'd be buying points and likely cruising more. Even if they only offered the higher trade value on their older ships, I'd do it.
 
Sure, but I think there are a few reasons why that might not be the end for Vero:

1. When they failed to build Phase 2 that land was basically rendered useless - given the dues subsidized portion... It's kind of amazing they held onto it as long as they did...

2. Had Vero Beach Phase 2 been built, I think It would have been kind of a disaster... The amount of amenities on property would have been overwhelmed. Vero Phase 2 did include an additional pool, but it would have really overwhelmed the other spaces like Green Cabin Room, Wind and Waves, the Feature Pool, etc. Remember, it was built at a time that they thought a resort the size of OKW just needed Olivias and the Gurgling Suitcase... at least the GCR is indoors! (Green Cabin Room, not Grand Ceremonial house!). The smaller room count made the resort into the tranquil beautiful treasure it is in the DVC portfolio now...

I wish the DVC Times Square and Newport Villas had been built... I think they may have become the Crown Jewels in the DVC resorts... Alas...
Sure, but I think there are a few reasons why that might not be the end for Vero:

1. When they failed to build Phase 2 that land was basically rendered useless - given the dues subsidized portion... It's kind of amazing they held onto it as long as they did...

2. Had Vero Beach Phase 2 been built, I think It would have been kind of a disaster... The amount of amenities on property would have been overwhelmed. Vero Phase 2 did include an additional pool, but it would have really overwhelmed the other spaces like Green Cabin Room, Wind and Waves, the Feature Pool, etc. Remember, it was built at a time that they thought a resort the size of OKW just needed Olivias and the Gurgling Suitcase... at least the GCR is indoors! (Green Cabin Room, not Grand Ceremonial house!). The smaller room count made the resort into the tranquil beautiful treasure it is in the DVC portfolio now...

I wish the DVC Times Square and Newport Villas had been built... I think they may have become the Crown Jewels in the DVC resorts... Alas...
This is great info. I hope you’re right and it sticks around. It definitely has a following. Despite being in a sleepy part of the coast, and you rarely hear anyone regret going.
 
This is great info. I hope you’re right and it sticks around. It definitely has a following. Despite being in a sleepy part of the coast, and you rarely hear anyone regret going.
I still think it will be gone in 2042... but there are some glimmers of hope listed above...

Ten years ago, I think I would have a different view... but now Disney isn't interested in anything that could be a "distraction" or "hobby" - unlike the Eisner years...
 
Just to add to the HHI/VB discussion, it does seem like the trust gives them some options they might not otherwise have had with those two resorts. Weren't there some recent survey questions about HHI and giving direct purchasers some sort of priority booking in advance of 7-months but not more than HHI owners? I seem to recall thinking that maybe they are thinking about experimenting with HHI/VB and how they could add some sweeteners for booking one of those resorts for direct purchasers. Not exactly clear to me what they can do, but maybe there is something.

I mean, of course the better bet is to bet against HHI/VB, but 2042 is still a ways away, and I do think DVC becomes a somewhat less desirable product without some options outside of the parks. I suppose they can shift their emphasis to the options you can obtain through Interval International instead, but I do think having some non park options does help sell DVC. Enough to keep them around post-2042? Probably not, but I wouldn't rule it out completely.
 
Aulani is its own thing, capturing both the Tokyo and US Disney market. They changed from their original off property DVC model and “went big” with this resort. It’s been wildly successful.
Would it be way out of the question to put another on Maui?
I mean, plenty of land available right now, and they would obviously still be able to sell/rent rooms beyond DVC… or do you think that would that hurt Aulani?
 
Would it be way out of the question to put another on Maui?
I mean, plenty of land available right now, and they would obviously still be able to sell/rent rooms beyond DVC… or do you think that would that hurt Aulani?

They wont be doing this. While I love Aulani there is a reason it's not selling. I dont know the reason but no chance they gamble and build another in Hawaii. Also no chance they will build one on their cruise islands either. In fact while I would love for them to I dont think they will build another DVC not attached to a theme park.
 
Just to add to the HHI/VB discussion, it does seem like the trust gives them some options they might not otherwise have had with those two resorts. Weren't there some recent survey questions about HHI and giving direct purchasers some sort of priority booking in advance of 7-months but not more than HHI owners? I seem to recall thinking that maybe they are thinking about experimenting with HHI/VB and how they could add some sweeteners for booking one of those resorts for direct purchasers. Not exactly clear to me what they can do, but maybe there is something.

I mean, of course the better bet is to bet against HHI/VB, but 2042 is still a ways away, and I do think DVC becomes a somewhat less desirable product without some options outside of the parks. I suppose they can shift their emphasis to the options you can obtain through Interval International instead, but I do think having some non park options does help sell DVC. Enough to keep them around post-2042? Probably not, but I wouldn't rule it out completely.
Not in favor of giving non home resort direct purchasers priority booking over non home resort resale owners. You’ve created a delta between resale and direct with everything you’ve already done and sufficiently differentiated the two products. Congrats. Do you really need to do more to diminish resale? It’s like stomping on an animal once it’s already dead. Enough already! Eventually you tank the resale product so much you can’t help but realize they really clobbered their direct buyer by making sure they take an absolute bath when they need to sell.
 
Very good point! Current price gap can be quite large depending on resort. Some are $60 or $80pp, or low as $20 PVB.
I should’ve been more clear about that and which resorts we had been considering. Maybe resale BLT or CCV as SAP+, AKV or SSR as mostly SAP for 1BRs at 7 months, or Poly Direct on a good incentive round (resale price is too high for me to consider today). Got me thinking about direct flash sales getting some sold out resorts in the $135-$150pp range. Would doing one of those or a good Poly round be better than any 5 of those resale today plus eventually point washing them?



Add we have similar issues in this department. Maybe the ability to book restricted resorts helps with this, but maybe even better is for us not to add-on and instead use WDW bouncebacks to book some trips.

Tricky tricky. I’m not sure what to do 😅
I’ve asked guides about point washing and most have a sort of perhaps answer saying it would at least give them some money out of resale. I think it might happen if there’s a point where DVD really needs a quick cash infusion, because it would be a quick offer to treat those resale points like the grandfathered resale points. Maybe they test the waters with an offer like you can only wash resale for the same number of points you have or something like that, and then see how popular it is at their initial $$ cost they offer. If it’s popular they can start increasing the cost.
 
Not in favor of giving non home resort direct purchasers priority booking over non home resort resale owners. You’ve created a delta between resale and direct with everything you’ve already done and sufficiently differentiated the two products. Congrats. Do you really need to do more to diminish resale? It’s like stomping on an animal once it’s already dead. Enough already! Eventually you tank the resale product so much you can’t help but realize they really clobbered their direct buyer by making sure they take an absolute bath when they need to sell.
I hear you. I just mention it because it seems like Disney is thinking about how they might add ways to sweeten their direct product. Maybe there are reasons they would want to keep HHI/VB around - maybe not so much because they want to sell points specific to those two resorts, but because they want to provide even more incentives to direct point purchasers using those two resorts. Who knows - 2042 is still a ways away.
 

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