- Apr 4, 2014
Not at $110/point to buy and turn back around at $150. But drive the price down to $50/point and resell “new” at $160 and the economics of reselling start to look very different.To meet demand? Sure they could, through ROFR. They just don’t think the profit margins are worth their time.
That probably won’t happen with the L14 contracts but might be the goal of the new contracts going forward. How much is a Riviera resale worth versus say a Poly resale that can be used at 14 resorts?
Wyndham recently discovered that taking back points for free and reselling then as “access” points at full value is a great deal for them. By and large it gave owners an “out” to dump off their timeshares and Wyndham another stream of revenue.
The profit margin for resell is more trouble for DVC than its worth. Now. But if they bend the value curve on resell enough, that could change.