Yeah, BLT has been falling hard. We’ll be sub-$100 in the next 12-18 months. ROFR is a paper tiger. All major corporations are slashing discretionary spending. Disney has multiple DVCs coming online adding to their existing active Direct. The last thing they’ll want is speculating with ROFR flips. I think the ROFR floor is more like a trap door. In a weak economy, it’ll be there as a bluff and it’ll pop up randomly to scare buyers, give confidence to sellers, and have brokers scoff at “lowball” offers being below their time.
Who knows, ROFR might be like 2020 where it disappears altogether. The confluence of Disney’s
comedy of errors and the deteriorating economy will make
DVC prices fall to levels you couldn’t dream of.
Let’s see: everyday I read of 7-12% layoffs at a new major company. Disney alienating large segments of their customer base with their political and social moves. DVC/park loyalists souring on the overall product. Social media “influencers” becoming stale in an over-saturated bubble. Marvel and Star Wars movies/spin-offs have exhausted all the low-hanging fruit. I watch the new Star Wars series and although I watch it I ask myself why? How far off the beaten path do people go—we’re at like the 8th derivative storyline.
What exactly is the sales pitch for DVC in a deep recession? Spend $50,000 up front for vacations you’ll break even on in a dozen years? At 12% interest, never? I love DVC, but prices are set by the marginal buyer. Anytime you’re selling something in tough times that people don’t have to own—it makes for a tough sale.
I also don’t buy into inflation and hotel prices going up. Just because Contemporary was $190/night 25 years ago and it’s $900 today doesn’t mean 25 years from now it’ll be $5000. It doesn’t work that way. Many families can swing $8-10k for that dream Disney vacation. Once you get above that, it becomes completely impractical. You get a sharp demand decay. You can argue in 1995 that $190 was high and any thought of $900 would be a no-way. But, saving $10k was doable in 1995 and today. In 2050, I don’t think the average Contemporary guest would be paying $30k for their vacation. The substitutions are far too many. You can justify paying a few thousand bucks more to stay on property, but not tens of thousands more in 2050z