I suspect Riviera must not be selling as well as they hoped it would

[Madame]

I'm not sure they have legal grounds to take away access to Club DVC resorts on resale contracts. However, by requiring all new Riviera owners to sign away resale access to other DVC resorts, they are effectively the ONLY group of contracts that is signing into the madness that has been created in the last 3 months.

Exactly this.

 

[ljmiii]

I bought SSR resale to save money. The plan was always to buy a small direct contract when I worked out where I liked for home resort priority but CCV and Poly are too hard to get studios...

If you want to buy direct to get the member perks, stay in a studio, and can only book 8 or 9 months in advance I would suggest buying 75 pts at SSR. I know it's not the most exciting resort but buying direct there would seem to best fit your needs. If you wanted to do split stays then AKL, OKW, and maybe even BRV (formerly VWL) would make sense.

 

[TexasChick123]

Exactly this.

The resale restrictions themselves don’t apply to new direct owners. They apply only to resale owners. Direct owners only have standing to challenge with regards to resale value, which we don’t know the full impact yet, and there are all kinds of issues with suing because your resale value dropped.

However, resale Riviera owners would absolutely have standing to challenge the restrictions like allowing others to book at 7 months at their resort, having substantially different terms, etc. They are the ones affected with regards to their rights.

In summation, I completely agree that Riviera looks to be the start of DVC 2. However, that would mean that Riviera and any future resort would be a part of this new DVC 2. That means Riviera, Reflections, BWV 2, and BCV 2 would also all be members. Therefore, no DVC 1 members direct or resale would have to be afforded the right to trade into DVC 2. They could restrict that ability to trade into DVC 2 only to direct owners of either DVC 1 of DVC 2 or be really strict and make it only direct owners of DVC 2. I’m not advocating this at all, but they’d be within their rights to do it.

 

[ljmiii]

I wish they would’ve started a DVC 2. That would’ve at least made sense...

They could’ve even said all resale purchases prior to January 19, 2019 are grandfathered. Going forward, only direct can trade into DVC 1 and DVC 2.

DVD's problem is that either they could add Riviera to BVTC with substantially similar rules to the 'original 14' or not. When rumors began to circulate that the rules for Riviera would be substantially different it was assumed that Riviera would be the start of a new trading company - the first of the DVC 2 resorts.

But instead they decided to brazen it out and give Riviera owners the ability to trade into BVTC and restrict resale owners of the existing resorts. Only time will tell if they are successful...but I do find it interesting that the excerpts from Riviera's docs that I've read seem to say that they have no idea either.

 

[Madame]

The resale restrictions themselves don’t apply to new direct owners. They apply only to resale owners. Direct owners only have standing to challenge with regards to resale value, which we don’t know the full impact yet, and there are all kinds of issues with suing because your resale value dropped.

However, resale Riviera owners would absolutely have standing to challenge the restrictions like allowing others to book at 7 months at their resort, having substantially different terms, etc. They are the ones affected with regards to their rights.

In summation, I completely agree that Riviera looks to be the start of DVC 2. However, that would mean that Riviera and any future resort would be a part of this new DVC 2. That means Riviera, Reflections, BWV 2, and BCV 2 would also all be members. Therefore, no DVC 1 members direct or resale would have to be afforded the right to trade into DVC 2. They could restrict that ability to trade into DVC 2 only to direct owners of either DVC 1 of DVC 2 or be really strict and make it only direct owners of DVC 2. I’m not advocating this at all, but they’d be within their rights to do it.

I understand that. I was agreeing with the statement that Riviera retail buyers are fully aware of what they are signing up for. The POS spells out that resale is restricted and that it will potentially impact resale value for retail buyers.

No one will challenge the DVC vs DVC II thing. I had to argue with someone on FB that, no, DVC could not charge higher MF to resale buyers. His argument was Disney can do what it wants b/c lawyers and deep pockets. People will believe anything.

 

[CaliAdventurer]

All those small contracts and the 24 Tower Studios. Gonna be EPIC.

The same studios everyone said weren’t fit for habitation when revealed!

 

[_auroraborealis_]

The same studios everyone said weren’t fit for habitation when revealed!

I'm telling you. The resort after Reflections: A Disney Rehab Clinic will be Kapuseru Hoteru: A Disney Capsule Hotel.

"Enjoy the unique immersive theme of our new capsule DVC. Lay back and relax, and look at Disney cartoons streaming on the virtual window on your ceiling. Each room enjoys access to a shared bath and mini-kitchenette on the end of each hallway."​

Points will start at $200 per point, but each capsule will sleep 2, with connecting units available to accommodate up to 6.

 

[ljmiii]

I had to argue with someone on FB that, no, DVC could not charge higher MF to resale buyers. His argument was Disney can do what it wants b/c lawyers and deep pockets. People will believe anything.

You could mention that Disney’s crack team of lawyers came up with the resale ‘restriction’ that only deeds sold by DVD before 1/19/19 could book at Riviera...in other words every DVC deed in existence (aside from Riviera). But it is FB...so I’m not sure it’s worth the effort

 

[ScubaCat]

Points will start at $200 per point, but each capsule will sleep 2, with connecting units available to accommodate up to 6.

Unfortunately there will be only 24 total capsules for 10 points per night along with 256 cabins on the water starting at 185 points per night. So, small contracts could be frustrating. (I'd buy a guaranteed week in a capsule, just to be safe.)

 

[luvdisneyland]

It definitely feels like they’re shooting themselves in the foot with the resale restriction. Yes, I bought anyway, but I bought less than I would have without the restriction to mitigate risk.

Also, the boards are filled with people who say they’d buy RR direct if the restriction was removed. Do they really not realize that the resale restriction was more a deterrent than a selling point? I, for one, have no plans to use my RR points anywhere except RR. I bought direct because the incentives were good, and I like what I’ve seen about the resort. The fact that I can use these points elsewhere at 7 months isn’t all that appealing when paying direct prices.

Exactly! I honestly don't know what Disney is thinking!

 

[luvdisneyland]

I suggest everybody start the slow drip of complaining openly to guides. This may work in time if sales aren't very good they are forced to eliminate the restrictions.

I'm on it! LOL

 

[luvdisneyland]

I'm telling you. The resort after Reflections: A Disney Rehab Clinic will be Kapuseru Hoteru: A Disney Capsule Hotel.

"Enjoy the unique immersive theme of our new capsule DVC. Lay back and relax, and look at Disney cartoons streaming on the virtual window on your ceiling. Each room enjoys access to a shared bath and mini-kitchenette on the end of each hallway."​

Points will start at $200 per point, but each capsule will sleep 2, with connecting units available to accommodate up to 6.

You crack me up!

 

[ScubaCat]

Exactly! I honestly don't know what Disney is thinking!

Contrary to the perception you get reading these threads, it's not hurting sales at all and will likely be a significant boost to their bottom line. If resale gets depressed, they'll buy back many of the contracts via ROFR and resell them for a much bigger margin.

 

[_auroraborealis_]

Contrary to the perception you get reading these threads, it's not hurting sales at all and will likely be a significant boost to their bottom line. If resale gets depressed, they'll buy back many of the contracts via ROFR and resell them for a much bigger margin.

This. DIS can be an echo chamber of sorts. If you want to descend into a whole 'nother world, there are entire groups where they are proclaiming how this is the best thing DVC has ever done and they need to restrict ALL resale further.

 

[LAX]

Contrary to the perception you get reading these threads, it's not hurting sales at all and will likely be a significant boost to their bottom line. If resale gets depressed, they'll buy back many of the contracts via ROFR and resell them for a much bigger margin.

I don't think the resale restriction has any positive effect on direct sales as many people whom DVD is targeting probably have no clue about the restriction (at least not until they have already forked out the dough). The question is how many points is DVD willing to buy should the resale price at DRR nosedive (not a certainty at this point), especially if it's still actively selling the resort.

LAX

 

[ozliz]

If you want to buy direct to get the member perks, stay in a studio, and can only book 8 or 9 months in advance I would suggest buying 75 pts at SSR. I know it's not the most exciting resort but buying direct there would seem to best fit your needs. If you wanted to do split stays then AKL, OKW, and maybe even BRV (formerly VWL) would make sense.

I have thought about this but it is not really worth it for the perks. I had thought about a small contract for the 11 month priority somewhere (just for rare visit not the more frequent ones) when they upped the minimum from 25 to 75 and I understood the system better I decided it wasn’t worth the extra $nto do this direct rather than resale. I’m going to keep trying all the resorts and may change my mind again later. Also my exchange rate sucks right now so no buying more until that changes.

 

[RamblinWreck]

It's never been 100 minimum as far as I know. I went last week and the gal again told us it was a 75 point minimum. It sounds to me like he gave you the wrong information, and left you the VM saying "they're now making the minimum 75" to cover his own mistake. I too would have bought more direct without resale restrictions.

I know that for people who were already owners the minimum was only 25

I had multiple different people confirm that the minimum Riviera purchase I could make as a non-owner was 100.

I was told that CCV had a minimum of 75 though. Maybe it is just something they do as time goes on.

But they were very adamant that the requirement for Riviera would never be dropped. Until they called me two weeks later to tell me the great news!

 

[Bing Showei]

But they were very adamant that the requirement for Riviera would never be dropped. Until they called me two weeks later to tell me the great news!

Not suggesting that sales aren’t flagging, but this is only one guide who insisted that the policy won’t ever change. Maybe he was selling like a rockstar and was riding high on the pent up demand for a non-2042 Epcot resort. Maybe banked on buyers eventually caving for the additional 25 points as a personal sales strategy and overplayed his hand.

Again, I wouldn’t read too much into this. All indicators so far are that sales are going well and the restrictions have not had as great of an impact as some of us here would prefer.

Strip the restrictions and it’s a great looking resort at the best entry price point currently. Factor in that resale is not even part of the average buyer’s vocabulary and you can get a sense for why Disney probably doesn’t care as much about the resale restriction’s impact as we do here in our little DISboard bubble.

 

[rg35]

Many here assume resale restrictions are hurting sales, but DIS isn't representative of the DVC/WDW population as a whole.

Many (most?) DVC retail purchasers/owners aren't well educated about the product and make impulse purchases while on vacation.

 

[zavandor]

Many here assume resale restrictions are hurting sales, but DIS isn't representative of the DVC/WDW population as a whole.

Many (most?) DVC retail purchasers/owners aren't well educated about the product and make impulse purchases while on vacation.

Uneducated guests do not care about resale restrictions because they don't even know resale exists. Those people will buy regardless.
Resale restrictions are for those who are aware a resale market exists, can be scared by the restriction but do not realise they might hurt them when they're going to sell. I'd say they're aimed to those who check on their phones, see a resale market exists and equiry to the "guide". He'll tell them resale is a vastly inferior product and they'll sign without further questions.