DVC Resale ROFR

[Maria_Ohana]

I'm seeing so many people passing ROFR (CONGRATULATIONS). Just curious as to why it seems like everything is passing. I haven't seen any posts where Disney practiced their ROFR since the beginning of the year. Thoughts? Speculations?

 

[wnielsen1]

The reason is Disney has decided to deploy their capital elsewhere (or they are just holding on to it - which is probably more likely).

 

[Sandisw]

For whatever reason, they have decided they don’t need or want the points back inventory for either sales, cash rentals, or OTU points

So, no need to spend money

 

[Jlo85]

My guess is it was the CEO change. Iger wants to pad the books a bit to restore confidence. So he's being stingy with how Disney spends money.

 

[tom1944]

My guess is it was the CEO change. Iger wants to pad the books a bit to restore confidence. So he's being stingy with how Disney spends money.

He could also pad the books by cutting the price on direct and increasing sales there.

 

[naman1221]

He could also pad the books by cutting the price on direct and increasing sales there.

At the risk of devaluing the product which is something Disney tries very hard never to do.

 

[tom1944]

At the risk of devaluing the product which is something Disney tries very hard never to do.

Depends on if padding the books with cash is a greater issue than short term value of direct sales.

Besides the various incentives was there ever a period where the actual direct price was reduced because direct sales were stagnant?

After 911
During the Great Recession
Covid closure

I was not following this market during any of these events, so I have no idea if they did.

 

[sndral]

Depends on if padding the books with cash is a greater issue than short term value of direct sales.

Besides the various incentives was there ever a period where the actual direct price was reduced because direct sales were stagnant?

After 911
During the Great Recession
Covid closure

I was not following this market during any of these events, so I have no idea if they did.

Much like the price of Disney hotel stays never goes down, DVC direct prices don’t either. Discounts as a % off, as reduced ticket prices, or as ‘free’ food lower the price of cash stays & incentives as a % off or developers credits lower the costs of a direct buy during tough economic times.

 

[havoc315]

Why is simple:
The primary purpose of ROFR is for Disney to reacquire points that can be sold direct.
Right now, demand is low... Disney already has an over-supply. They have offered rather large incentives on sold-out resorts like BLT.
So Disney can't sell the points they already have... No reason to use ROFR to obtain more points.

 

[Maria_Ohana]

Why is simple:
The primary purpose of ROFR is for Disney to reacquire points that can be sold direct.
Right now, demand is low... Disney already has an over-supply. They have offered rather large incentives on sold-out resorts like BLT.
So Disney can't sell the points they already have... No reason to use ROFR to obtain more points.

Makes sense

 

[ClaraOswald]

Why is simple:
The primary purpose of ROFR is for Disney to reacquire points that can be sold direct.
Right now, demand is low... Disney already has an over-supply. They have offered rather large incentives on sold-out resorts like BLT.
So Disney can't sell the points they already have... No reason to use ROFR to obtain more points.

Do we have any idea of they've purchased back any contracts from VGC lately?

 

[Epcot Forever Forever]

Besides the various incentives was there ever a period where the actual direct price was reduced because direct sales were stagnant?

No. Incentives have gotten better as needed. Booked Pricing of active resorts has never gone down.

 

[Leight19]

Why is simple:
The primary purpose of ROFR is for Disney to reacquire points that can be sold direct.
Right now, demand is low... Disney already has an over-supply. They have offered rather large incentives on sold-out resorts like BLT.
So Disney can't sell the points they already have... No reason to use ROFR to obtain more points.

I generally agree with this but the confusing part to me was last year how aggressive rofr was when sales were already weak. I recall discussions where people were finding a single resale agent was having more points taken in rofr for ssr in 1 month then Disney sold in 6months. At the time I recall many threads and even some discussion on dvcfan channel of people speculating something had to have been going on to explain why Disney bought so much.

Fast forward a relatively short time (6 months) and Disney has gone from buying back at $145 a point to letting contracts go through at <$90. Even if they just did it simply for inventory being aggressive 6 months then buying nothing for 6 months cost them way more to buy those points then moderate purchases for 12 months. Something else has to have been going on to explain the pattern but I doubt we’ll ever know.

 

[Bearval]

I'm seeing so many people passing ROFR (CONGRATULATIONS). Just curious as to why it seems like everything is passing. I haven't seen any posts where Disney practiced their ROFR since the beginning of the year. Thoughts? Speculations?

Recession fears plus DVD has too many unsold direct points for new resorts or future resorts to unload (AUL, GFV, RIV, PVB and the one coming in California.) Disney doesn't want to get stuck holding all these points plus ones from already sold out resorts.

 

[Epcot Forever Forever]

I generally agree with this but the confusing part to me was last year how aggressive rofr was when sales were already weak. I recall discussions where people were finding a single resale agent was having more points taken in rofr for ssr in 1 month then Disney sold in 6months. At the time I recall many threads and even some discussion on dvcfan channel of people speculating something had to have been going on to explain why Disney bought so much.

Fast forward a relatively short time (6 months) and Disney has gone from buying back at $145 a point to letting contracts go through at <$90. Even if they just did it simply for inventory being aggressive 6 months then buying nothing for 6 months cost them way more to buy those points then moderate purchases for 12 months. Something else has to have been going on to explain the pattern but I doubt we’ll ever know.

It would be possible to compare Disney direct sales of sold out resorts with actual ROFR data (plus surrenders and foreclosures) using the OC database. I think if we looked back to like 2018 it would be interesting to see total net sales vs purchases by resort. That would allow us to understand if there’s a huge discrepancy between sales and ROFR as claimed when viewed over a longer time frame. Because it might have just been a blip.

 

[Brett Wyman]

At the risk of devaluing the product which is something Disney tries very hard never to do.

Have direct prices ever dropped in the history of DVC?

 

[Sandisw]

Have direct prices ever dropped in the history of DVC?

Base price no. But incentives can get better or worse.mute exception is when sold out resorts of SSR and VGF went back into active sales..then it matched the other resorts in that status.

 

[Lucky Wall-E]

I generally agree with this but the confusing part to me was last year how aggressive rofr was when sales were already weak. I recall discussions where people were finding a single resale agent was having more points taken in rofr for ssr in 1 month then Disney sold in 6months. At the time I recall many threads and even some discussion on dvcfan channel of people speculating something had to have been going on to explain why Disney bought so much.

Fast forward a relatively short time (6 months) and Disney has gone from buying back at $145 a point to letting contracts go through at <$90. Even if they just did it simply for inventory being aggressive 6 months then buying nothing for 6 months cost them way more to buy those points then moderate purchases for 12 months. Something else has to have been going on to explain the pattern but I doubt we’ll ever know.

I wonder about this too. It wold make more sense to be consistent with ROFR.

So was Disney trying to drive up resale prices to be closer too direct sales to help sell the direct points because at one point the difference between direct and resale was only a couple dollars per point. This happened with VGF if you already were a dvc member and bought at least 200 points right when they first started selling.

I was wondering if they would do this again right before the sale of the Poly Tower if they think people might not buy direct?