Jan 19, 2019 - The day the magic died

[DougEMG]

I think that we can safely say that Disney has now officially killed the magic with DVC and turned it into every other timeshare out there. From now on, the magic words should be "Buyer Beware".

 

[ziravan]

Honestly I thought that was 4/4/16.

 

[bobbiwoz]

Magic died for me when they allowed walking. I was most concerned about BCs at Vero Beach, but I have always gotten one when I wanted.

 

[s.r.disney nut]

Am I missing something?

 

[Brett Wyman]

Am I missing something?

Beginning January 19, anybody who purchases a resale contract for one of the 14 original Disney Vacation Club resorts will be limited to staying at those resorts.

That means that anybody who buys a resale contract after January 19 would not be able to use their points to stay at Disney’s new Riviera Resort or at the new Reflections- A Disney Lakeside Lodge at Walt Disney World or future DVC properties.

Once sales for the Riviera Resort begin, those who purchase a contract for that resort on the resale market will be limited to staying only at that resort.

 

[Queen of the WDW Scene]

Everyone has always said how amazing DVC is. Glad I didn't listen since it really looks like its going down the tubes as of late.

 

[Deb & Bill]

I thought it was 2006 or so. When Jim Lewis was still around. But they are working really hard to kill that goose that laid the golden eggs. When DVC raised the price of direct points to $100 (Feb 2007) or higher was when we said no more. Just enjoy the points we have.

 

[SpaceMountain77]

Everyone has always said how amazing DVC is. Glad I didn't listen since it really looks like its going down the tubes as of late.

Disney Vacation Club is not going down the tubes. These are the actions of a publicly traded, diversified multinational mass media and entertainment conglomerate committed to shareholder return.

 

[DougEMG]

Honestly I thought that was 4/4/16.

That was a flesh wound, this latest announcement is a stab to the heart of the original concept of DVC.

 

[ziravan]

In April 2016, DVC killed the idea that DVC is "a club" by distinguishing between members and second-hand "purchasers".

My contention at the time was that this was short-sighed behavior, even in the context of providing shareholder value.

One of the main values of DVC is the perception that it's not just another timeshare. Hell, it's a club. That perception leads to a level of trust in purchasing. That's true for the uninitiated buying high on pixie dust while visiting the parks. It's true of us here, evaluating the resale potential to mitigate the risk of purchasing.

It's not just some timeshare; it's Disney.

To the extent that DVC continues to devalue that trust, they devalue what I would consider to be a considerable advantage of their timeshare approach. Timeshares are considered sleazy by a significant number of people for a reason. The timeshare industry as a whole has earned that reputation.

Disney being a notable exception.

Until now.

Once DVC decided, as a business priority, that DVC isn't a "club" but a full-on timeshare and should be exploited with all the angles and sales techniques that has given the industry its reputation, that's when "the magic" died. 2019 is just a continuation of what they started in 2016.

 

[Mikey15]

While the change does diminish the value proposition a little bit for people like me looking at buying resale, and portends a future tiering system, I have to ask...

...what actually changed for current owners? Current owners can use their (7-month) points at all 14 resorts, and Riviera, and (apparently) Reflections when they're built. That part hasn't changed. The only changes affect people buying resale in the future. Did you buy in speculating that point prices would go up? Is this really going to affect the point prices for the existing 14 (with the prime real estate) that badly?

That means that anybody who buys a resale contract after January 19 would not be able to use their points to stay at Disney’s new Riviera Resort or at the new Reflections- A Disney Lakeside Lodge at Walt Disney World or future DVC properties.

 

[sleepydog25]

You're correct, SpaceMountain--Disney is simply doing what other companies have done, heck, what they've done for many, many years. The key, however, is perception. Disney used to make the attempt at Oz curtain, to mask the cold-sided nature of business under the guise of the ultimate, family-oriented vacation. They built their reputation as being better than the industry standard, parlaying that good will into fantasy lands and dream fulfillments. Somewhere along the way, and one could argue endlessly where it began, Disney opted to forego the curtain and curtail the magic. It was occasionally baby steps, and other times, full on hard-core "we want a bigger piece of the pie" moments. Again, you're correct in the implication that Disney has the right and the correct compunction to improve their bottom line as they see fit within legal standards. What's a bigger piece of the picture to me is that in doing so, they have dropped the mantle of besting the industry standard and decided to settle for simply meeting industry standard, albeit with Disney style. . .meaning they can charge a premium. Can they do this? Sure. Should they? In their eyes, I'm sure the answer is still yes. However, for me, the Disney "experience" is now more of a facade. I no longer share Disney with my friends. I no longer recommend DVC. I no longer believe Disney ultimately has the customer in mind (if they ever did is certainly debatable, but I believed they did at one point). In short, I no longer trust Disney. When a company loses trust from its customers, that signals a decline in value. Will my views and those of many others change their ways? Of course not. Still, I can now opt to continue making Disney less a part of my life and celebrations going forward. It's a drop in the bucket--in the ocean--but it's a significant signal to me, for me.

 

[sleepydog25]

While the change does diminish the value proposition a little bit for people like me looking at buying resale, and portends a future tiering system, I have to ask...

...what actually changed for current owners? Current owners can use their (7-month) points at all 14 resorts, and Riviera, and (apparently) Reflections when they're built. That part hasn't changed. The only changes affect people buying resale in the future. Did you buy in speculating that point prices would go up? Is this really going to affect the point prices for the existing 14 (with the prime real estate) that badly?

Nothing changes much for current owners, no. However, let's say you're going to buy Reflections when it opens for close to $200 pp, and let's say that five years later you have a huge financial hardship and want to unload your contract. Who will want to buy it knowing that if they go via resale market they can only stay at Reflections? That means you either take a bath from resale or you take a bath from Disney who ROFRs. While I didn't buy into DVC in order to resell it later, I knew that if something were to happen, I could likely sell it at a reasonable price down the road. If I were buying now, knowing my options were very limited would cause me to say, "no thank you." It's more complex than my scenario, but it's still a generalization that fits.

 

[BillPA]

Where can I get those rose colored glasses that you see DVC as a good thing these days?

 

[jimim]

Yes a lot of changes over the years. Good and bad.

Our points have served us well over the years so far.

We bought into this with saved cash knowing thst we would get nothing out of it down the road except our savings on rooms and passes. We never ever went into this with the though of coming out ahead if we got rid of it. We pretty much figured when we didn’t want it anymore or it became a burden to us we would just dump it for whatever.

For now it still serves its purpose and the restrictions on our resale contract don’t affect us cause it’s the first set. It’s upsetting to see these new ones cause they r very very harsh I feel.

Will we buy more points? If we need more and the restrictions at the time don’t impede how we want to vacation. Ya I will.

But overall it’s been kinda downhill somewhat over the past 2 years or so. More in the parks vs on the dvc side.

Just my thoughts. It’s sad cause it’s Disney but ya I get it they r still there to make money. Not many other companies r out there that hold the emotional value that Disney holds for so many people out there.

 

[iheartglaciers]

Nothing changes much for current owners, no.

It does impact current owners who want/need to sell. The impact now isn't that great, but once the original resorts start expiring, there are far less resorts in the pool for resale buyers. So it will affect the resale price at some point down the line.

 

[thebigman65]

Some people will be "Henny Penny the sky is falling"....some people will be "DVC is the best ever!"....to each his own. I prefer to take a median approach and realise that there are pretty few options to contest anything Disney does, and believe me, they have all their ducks in a row before proceeding with anything....as a publicly trade corporation, they are always going to look toward their bottom line and to try and maximise profit and find new revenue streams.....none of us have to like it, but for me I go in with eyes wide open and still have lots of fun and good family vacations with my DVC.....that as of now has not changed, even with the latest changes.

 

[jade1]

So if they had simply "stopped" building more DVC Resorts after BLT/AKV/POLY/GF/CCV (which expire after 2060 and 2066), this would be the same result?

 

[iheartglaciers]

So if they had simply "stopped" building more DVC Resorts after BLT/AKV/POLY/GF/CCV (which expire after 2060 and 2066), this would be the same result?

Until the resorts start expiring. Even without Riviera and Reflections, if they decided to start this new resale rule when they repackaged the expiring resorts, it would have the same impact on the later resorts in their later years. For example, in the last few years of my CCV contract, I would only have Poly and VGF available in the pool if the others were taken out once they expired.

I have a mix of grandfathered resale and direct CCV points, so my pool will be bigger. But not for my buyer if I sell down the line.

 

[Chancery8]

However, for me, the Disney "experience" is now more of a facade. I no longer share Disney with my friends. I no longer recommend DVC. I no longer believe Disney ultimately has the customer in mind (if they ever did is certainly debatable, but I believed they did at one point). In short, I no longer trust Disney.

I agree. I'm known as the Disney fanatic to all my friends and acquaintances. For years, I've touted how amazing and magical Disney was to anyone and everyone who would listen. I was like an unpaid spokesperson for Disney. To the point where I became the go to person whenever anyone was planning a Disney vacation (old coworkers have called me up years later and parents of my kid's classmates have reached out to me before). However, with all the negative changes in the last few years (astronomical price increases for everything and the push to make the parks consistently crowded-overcrowded year round), Disney is definitely losing the magic. We'll still go because we drank the koolaid years ago and Disney owns us (for now...we'll see how much more of this downward spiral we can tolerate), but I can't in good conscience recommend Disney to people the way I did before. In fact, I've actually started discouraging families who are on the fence about it, because it just cost to much for what it is now. I can't praise Disney, knowing how awful it could potentially be for a newbie family, and then have people not trust my judgement anymore...the way I no longer trust Disney either.