DVC News-Dec 25 Sales

[DanCali]

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

It was just an example of how a resort with a favorable points chart (like Boardwalk) can command a higher price than it otherwise might (given the 2042 expiration in that instance).

So if the argument was that more Poly points were sold because Poly's points chart is less user friendly, I'd actually argue that (everything else equal) a more user friendly points chart at Riviera should lead to higher developer Riviera prices than at Poly. But of course "everything else equal" doesn't hold since restrictions are different, dues are different, location is different etc.

 

[Carouselofplanning]

I kind of feel like I’m being gaslit a bit here by the “restrictions don’t matter” crew. IMO, some of it is Stockholm Syndrome.

Restrictions don’t matter to most uneducated direct buyers….. but they sure as heck matter.

This 100%

 

[muppets3d]

DVC doesn't sell restricted points, they're only sold on the resale market.

 

[Sandisw]

I kind of feel like I’m being gaslit a bit here by the “restrictions don’t matter” crew. IMO, some of it is Stockholm Syndrome.

Restrictions don’t matter to most uneducated direct buyers….. but they sure as heck matter.

As one who says they don’t matter, why do they have to matter the same to all?

And there is no need to be critical as we all get to decide how to vote it without being said we have an issue.

Resale value? Risky to buy using that as a factor, no matter the resort.

Availability? We aren’t guaranteed any specific room or date….restrictions don’t change that…

Sales? Obviously the impact wasn’t enough for DVD to reverse so they don’t think they have a meaningful impact.

What we do know is that over the life of sales, RIv is around 70k and PVB tower is around $79k…if I did my math correct.

This notion that RIVs sales are where they are simply because of restrictions and nothing else is not accurate.

No way RIV would be outselling PVB tower if they didn’t have them.

So, where does that leave us? Owners deciding what matters.

 

[airjay75]

And, TBH, as an owner of a lot of direct RIV points, I sort of wish I saw evidence that resale restrictions hurt direct sales. If there were clear and convincing evidence that they did, then maybe there would be hope that they'll eventually roll them back, and my points would suddenly be worth a lot more if I ever decided to sell them. I don't think that is going to happen.

 

[Sandisw]

And, TBH, as an owner of a lot of direct RIV points, I sort of wish I saw evidence that resale restrictions hurt direct sales. If there were clear and convincing evidence that they did, then maybe there would be hope that they'll eventually roll them back, and my points would suddenly be worth a lot more if I ever decided to sell them. I don't think that is going to happen.

To add to this, DVD holds all the cards when it comes to even resale.

They have taken back a contract as high as $98/pt, while they still have points to sell.

Obviously, owners who buy resale RIV have a different product…but if they are buying it, they know it.

 

[Sandisw]

It’s too bad there is no way to track VDH sales anymore. It would be interesting to see how that is going.

 

[davidhr]

I usually don’t engage in these discussions because they lead nowhere. My take on restrictions is that they affect direct sales, but not in the way most people here think.

I think we all agree that the idea behind restrictions is to incentivize potential buyers to buy direct. But here is where I deviate from what most people think. Restrictions are not aimed at all buyers, just resale buyers. A potential buyer will do their research and find out about restrictions, and that will make them think about whether resale is the way to go. Some won’t care too much; some will definitely have FOMO and go buy direct. Now that buyer who knows about restrictions reaches out to a guide, and they have two options (three if they like cabins): Riviera and Polynesian.

What do you guys think that person is going to get? A person who knows more about DVC than the average purchaser. The unrestricted resort.

So in my opinion, the restrictions are not hurting Riviera direct sales in a significant way (resale prices are definitely impacted). The restrictions are increasing total direct sales. And for now, the unrestricted resort is the one benefiting the most from that.

There’s no way for us to know if this is true or not. We have no way of knowing how much they’d be selling without the restrictions. What we know is that there are no indications they are going to get rid of them. That means they’re either extremely stubborn, or they have the data to feel they’re working.