June 2022 Direct sales

[Sandisw]

Looks like a decline again. But the gap between VGF and RIV is under 6k. So, they seem to be almost evenly split now.

I think if DVD is looking for something to stay the course with restrictions, this data is going to help them justify that move.

Regardless both those resorts combined did bring them over 130k in sales which isn’t too shabby given today’s economic climate.

Average contract size seems to be slightly larger for RIV around 190 over VGF which was closer to 175.

Sales at sold out resorts are pretty low but seem consistent among them.

https://dvcnews.com/dvc-program/fin...ect-dvc-sales-continue-to-soften-in-june-2022

 

[Hoppy-tn]

Wonder if there will be better incentives in a few days?
guess we will find out

 

[Sandisw]

Very possible since incentives were better than May and didn’t help much.

RIV did slightly better though with an extra 5k so it helped that resort but not VGF.

 

[pianomanzano]

Wonder if there will be better incentives in a few days?
guess we will find out

I think they're slightly worse than the current ones, unless they don't update them before the current ones expire (source: https://dvcnews.com/dvc-program/fin...ing-improves-via-early-summer-2022-incentives)

 

[Ruttangel]

Effectively the increase of AKV/SSR and OKW all now $200 it’s killed the direct sales at those resorts by pushing their sales to VGF/RIV, sales pretty weak overall for June

 

[havoc315]

Looks like a decline again. But the gap between VGF and RIV is under 6k. So, they seem to be almost evenly split now.

I think if DVD is looking for something to stay the course with restrictions, this data is going to help them justify that move.

Regardless both those resorts combined did bring them over 130k in sales which isn’t too shabby given today’s economic climate.

Average contract size seems to be slightly larger for RIV around 190 over VGF which was closer to 175.

Sales at sold out resorts are pretty low but seem consistent among them.

https://dvcnews.com/dvc-program/fin...ect-dvc-sales-continue-to-soften-in-june-2022

What’s interesting is that RIV sold more new master contracts than GFV.

So now that we have gotten past the initial surge of GFV buyers, we are seeing GFV and RIV are about equally popular with new buyers.
At least with RIV priced slightly lower than GFV, and with a slightly longer contract, it makes them about equally popular.

 

[Royal Consort]

I think if DVD is looking for something to stay the course with restrictions, this data is going to help them justify that move.

If they were ever going to remove restrictions, it would have been done by now. They will use their incentives lever to speed up sales as needed with enough room to remain profitable.

Removal of restrictions just feels like hope now, not a likely scenario.

 

[Sandisw]

If they were ever going to remove restrictions, it would have been done by now. They will use their incentives lever to speed up sales as needed with enough room to remain profitable.

Removal of restrictions just feels like hope now, not a likely scenario.

Oh, I agree…I think they are here to stay..but with data like this, it just makes it easier for them to stay the course…which I think means more likely Poly tower has them.

 

[Sandisw]

What’s interesting is that RIV sold more new master contracts than GFV.

So now that we have gotten past the initial surge of GFV buyers, we are seeing GFV and RIV are about equally popular with new buyers.
At least with RIV priced slightly lower than GFV, and with a slightly longer contract, it makes them about equally popular.

Yes, and also means that effective pricing can work to offset any potential issues buyers have with restrictions.

And, if you look at the fact RIV went up and VGF down, it means a lot of that initial sales data was pent up demand.

 

[savvy101787]

Effectively the increase of AKV/SSR and OKW all now $200 it’s killed the direct sales at those resorts by pushing their sales to VGF/RIV, sales pretty weak overall for June

Isn’t this what DVD tries to do by implementing these changes? They want to push contracts at the open resorts to clear inventory.

 

[Royal Consort]

My take away is this: WDW vets like what they know. GF is established and therefore beloved. New visitors are unlikely to have an attachment to certain resorts. This results in more openness to Riviera without preconceived bias and therefore more master contracts sold. Riviera can closely match VGF in popularity with the new purchaser market.

From the phenomenal initial VGF sales, DVD will have exhausted the add-on market. Most new purchasers will not care and just buy what's available in an affordable price point.

Incentives are a more important driver of sales than restrictions (or lack thereof).

 

[savvy101787]

And, if you look at the fact RIV went up and VGF down, it means a lot of that initial sales data was pent up demand.

Between that and the likelihood this data trend points to restrictions saying, the argument that RIV can’t retain resale value in the long-term looks more and more short-sighted.

 

[DVCanadian]

Average contract size seems to be slightly larger for RIV around 190 over VGF which was closer to 175.

Sales at sold out resorts are pretty low but seem consistent among them.

https://dvcnews.com/dvc-program/fin...ect-dvc-sales-continue-to-soften-in-june-2022

With avg contract size at VGF around 175 hopefully this will calm the people nervous that all the new buyers will start booking 1 and 2 bedrooms in VGF1, these are studio sized contracts and don’t go very far for booking 1&2 bedrooms.

 

[Sandisw]

Between that and the likelihood this data trend points to restrictions saying, the argument that RIV can’t retain resale value in the long-term looks more and more short-sighted.

I think once more resorts have them, it will level out since it won’t stick out.

But, 73K in sales for VGF is pretty typical of where RIV has been several different months over time. So, it again, I would say it supports they may pretty evenly matched and RIV with extra years, slightly lower point charts, and slightly better incentives can hold its own.

 

[Sandisw]

With avg contract size at VGF around 175 hopefully this will calm the people nervous that all the new buyers will start booking 1 and 2 bedrooms in VGF1, these are studio sized contracts and don’t go very far for booking 1&2 bedrooms.

Possibly, assuming those are all they bought. We did 300 but in two 150 point contracts so that kind of data doesn’t show anywhere

 

[Nabas]

For those interested in seeing the latest data charted:

 

[BruinEd03]

Between that and the likelihood this data trend points to restrictions saying, the argument that RIV can’t retain resale value in the long-term looks more and more short-sighted.

I’m not sure how this shows that Riviera can retain resell value. People that have bought Riviera aren’t really selling right now. The buyers of Riviera resale are most likely owners with points elsewhere, which aren’t affected by the resale restrictions (as they can book elsewhere with their other points). As that demand dwindles, and supply increases, it will be interesting to see how many buyers there will be.

Eg, if you’re a first time owner, would you buy Riviera resale? Doubtful.

 

[RamblinWreck]

With avg contract size at VGF around 175 hopefully this will calm the people nervous that all the new buyers will start booking 1 and 2 bedrooms in VGF1, these are studio sized contracts and don’t go very far for booking 1&2 bedrooms.

That kind of depends on how often you plan to travel and how long you plan to be there.

We bought 150 points a few years ago with every intention of primarily using them on VGF 1 bedrooms, at least for the first several years.

 

[DVCanadian]

That kind of depends on how often you plan to travel and how long you plan to be there.

We bought 150 points a few years ago with every intention of primarily using them on VGF 1 bedrooms, at least for the first several years.

Yes, that's exactly my point, with 150 points you can book 0 weeks per year in VGF 1 bedroom.
So you are either banking and borrowing or booking short stays. I don't see how that would put pressure on the 1 and 2 bedrooms at VGF.
In some of the threads related to the new studios there has been fearful speculation that the people buying new VGF points will put booking pressure on the 1&2 bedrooms. I don't believe it will be a significant issue. There are more likely to realize the small contracts they bought at VGF go a lot further at other resorts.

 

[Sandisw]

Yes, that's exactly my point, with 150 points you can book 0 weeks per year in VGF 1 bedroom.
So you are either banking and borrowing or booking short stays. I don't see how that would put pressure on the 1 and 2 bedrooms at VGF.
In some of the threads related to the new studios there has been fearful speculation that the people buying new VGF points will put booking pressure on the 1&2 bedrooms. I don't believe it will be a significant issue. There are more likely to realize the small contracts they bought at VGF go a lot further at other resorts.

People may choose to split stay. Not everyone travels a full week either. We don’t.

So, it’s too early to tell what and how this will impact booking patterns. I think we need to see how it goes with people liking the rooms and as I mentioned, there could be owners who broke contracts into smaller amounts but actually bought more like we did.

Even if some bought for every other year trip, it could still have an impact certain times of the year, like December.