DVC News-Dec 25 Sales

[eticketplease]

I don't think that's it; there were also more deeds sold at PVB (the article lists the totals).

I haven’t read the article yet but does it account for people splitting up contracts? This could account for more poly deeds as well with people thinking long term assuming that PVB will continue to return a decent return if the need arises.

 

[DanCali]

One potential reason I had not thought about before, but would be another simple reason to explain the difference in PVB and RIV sales numbers - you just need more points at PVB for most room categories. By my math, if you set aside the Penthouse 2 BRs, Bungalows, and GVs, equivalent accommodations at PVB can range from 15% more points at PVB to up to 45% more points at PVB for a full week. So, last month PVB sold about 34% more points than RIV - how much of that is simply because, your average PVB buyer, when sitting with their guide and determining how many points they wanted, looked at the points chart and said, well, I want enough for 1 week per year in this room - oh, and maybe I want to make sure I have enough for preferred or theme park view every other year if I bank or borrow a few of my points. If you're sitting with a guide and looking at the RIV points chart, you simply don't need as many points.

But wouldn't that reason be an argument that RIV is more desirable on that front specifically, and therefore merits a price premium?

After all, you read many times that people are willing to pay relatively high resale prices for some 2042 resorts (eg BWV) because the points charts are user friendly and rooms are cheap to book. If it costs less to book once you own it, you'd think that (everything else being equal) the upfront price would be higher in equilibrium.

 

[byurick]

This thread is about direct points, not sure why you're bringing up resale.

 

[eticketplease]

But wouldn't that reason be an argument that RIV is more desirable on that front specifically, and therefore merits a price premium?

After all, you read many times that people are willing to pay relatively high resale prices for some 2042 resorts (eg BWV) because the points charts are user friendly and rooms are cheap to book. If it costs less to book once you own it, you'd think that (everything else being equal) the upfront price would be higher in equilibrium.

@airjay75 was pointing out that on average you need 15% less points to book a room at RIV compared to PVB which could skew the numbers to PVB favor as to book that same room you would theoretically need more points.

They are discussing direct as @byurick pointed out so they are all priced at the same PPP.

Yes it's possible some may have paid less with incentives but we can't get that information from the article.
The farthest breakdown I can see is there were 497 deeds totalling 82,321 for PVB and of those there were 7 25 pointers, 1 600, 1 510 and 1 500 point contract so for all we know the rest could be contracts that don't qualify for incentives.

The same is true with RIV as there were 351 deeds totalling 61,237 points and there were 3 500 point deeds out of that 351. So the remaining 348 could have all had incentives or not we just don't know.


We do know is PVB sold 17% more deeds for15% more points then RIV.