New owners can now buy 50 points from Disney

[Mickey'sApprentice]

DVCNews.com is reporting that you can now purchase 50 points directly from DVC. This is only for the resorts in active sales.

What do you think?

We have a small DVC contract (100 points) and could see how some people would enjoy a 50 point contract. I am concerned that owners might become upset that 50 points don't buy much.

 

[Chuck S]

I think a large number of small contracts is bad for the general ownership and will make booking more difficult because you'll have more and more members competing for the same reservations.

For instance, say 10% of the membership want to book studio the first week of December. If there are 300,000 members with 300 points each, then 30,000 people will try for those finite number of rooms. Now say, instead, that there are 600,000 members with 50 points each. So 60,000 would be competing for the same number of rooms.

And with more and more smaller contracts that will obviously book Sun night to Thurs night stays, it will almost certainly lead to more point reallocations in the future. Making that 50 point membership just about worthless.

 

[disneynutz]

I think that sales must really be slow or Disney wouldn't have lowered the buy in to 50 points.

The new owners who were required to buy 160 points must feel like they have been stabbed in the back. I wish Disney would keep the same deal for all.

Bill

 

[Garthilk]

Wow, this is quite suprising. Especially as I had just purchased very recently. Especially considering Hawaii.

 

[Nikisha421]

Things must be really hard on the boulevard...n e way I think that it would be rather difficult to get a reservation if those 50 point contract owners are banking and borrowing there points to make a reservation:urgh:

 

[AirGoofy]

I think they are only doing the buy-in at the certain resorts, i.e., not going to get a 50 point contract for Beach Club. But, one of the perks in adding on a small contract (25 or 50) to your existing contract, by going through Disney, you get the points immediately and they get added to your same use year.

 

[Mickey'sApprentice]

I think a large number of small contracts is bad for the general ownership and will make booking more difficult because you'll have more and more members competing for the same reservations.

For instance, say 10% of the membership want to book studio the first week of December. If there are 300,000 members with 300 points each, then 30,000 people will try for those finite number of rooms. Now say, instead, that there are 600,000 members with 50 points each. So 60,000 would be competing for the same number of rooms.

And with more and more smaller contracts that will obviously book Sun night to Thurs night stays, it will almost certainly lead to more point reallocations in the future. Making that 50 point membership just about worthless.

I don't understand why this is a problem. Yes, there will be more people with points, but there won't be anymore points. If anything, the phone lines will be busier.

With that said, it could effect maintenance fees. My thought is that Disney is getting in on the small contract business. This won't be something that they actively market. They still want to sell 160 point contracts, but will now be able to sell fewer points.

I admit that dh and I would have bought in 2002 had DVC been willing to sell me 75-100 points.

 

[Chuck S]

I don't understand why this is a problem. Yes, there will be more people with points, but there won't be anymore points. If anything, the phone lines will be busier.

The phones will be busier, with more people vying for a hard to get reservation. That means every members odds of getting a particular desired reservation go down. It means increased "demand" for those nights, and a likely reallocation to the point charts, as Disney is supposed to adjust the charts to balance demand.

 

[bookwormde]

I think they have learned for the resale small contract purchasers that once you get someone in the door with a samll contract they are very likely to add on. With the exception of high demand says I can to see it having much of an impact.

bookwormde

 

[arthur06]

Could they get into a situation where people with 160 or more points get the 11/7 window and people with less might get a 10/7 window?

 

[Chuck S]

Could they get into a situation where people with 160 or more points get the 11/7 window and people with less might get a 10/7 window?

I'm not sure that that is possible, likely all owners at a particular resort would have the same booking windows. But, it could certainly lead to more reservation "walking" at the 11 month window by those with more points.

 

[dis-happy]

It kind of pulls the rug out of resale. Many people go that route in order to start with a smaller contract. By offering the current resorts they are getting those sales (whereas the sold out resorts can languish on the market and not affect DVC). Actually, it follows many of Disney's previous operations; by offering ME it effectively squashed private aiport transportation.

 

[Maistre Gracey]

I think a large number of small contracts is bad for the general ownership and will make booking more difficult because you'll have more and more members competing for the same reservations.

For instance, say 10% of the membership want to book studio the first week of December. If there are 300,000 members with 300 points each, then 30,000 people will try for those finite number of rooms. Now say, instead, that there are 600,000 members with 50 points each. So 60,000 would be competing for the same number of rooms.

And with more and more smaller contracts that will obviously book Sun night to Thurs night stays, it will almost certainly lead to more point reallocations in the future. Making that 50 point membership just about worthless.

Yup... This is a potential mess.

MG

 

[nunzia]

It kind of pulls the rug out of resale. Many people go that route in order to start with a smaller contract. By offering the current resorts they are getting those sales (whereas the sold out resorts can languish on the market and not affect DVC). Actually, it follows many of Disney's previous operations; by offering ME it effectively squashed private aiport transportation.

I agree..I got into the system this way..very small resale..then added on in chunks that worked for me, never getting that 160 master. If I had been pushed into starting out with 160 and now saw I could get in for less (if the money was a bit hard and I didn't think I need that many points) I would be upset. I also feel like Disney is feeling the pinch having a hard time getting people in at 160.

 

[Mickey'sApprentice]

The ability to walk reservations helps large point owners get that hard to get reservation.

I wish DVC would really counsel small contract buyers about the ins and owns of ownership for the small buyer.

I always say...schedule trips for early in your use year!! BEWARE!! If you only get 1 fixed week of vacation every year.

 

[disneynutz]

It kind of pulls the rug out of resale. Many people go that route in order to start with a smaller contract. By offering the current resorts they are getting those sales (whereas the sold out resorts can languish on the market and not affect DVC). Actually, it follows many of Disney's previous operations; by offering ME it effectively squashed private aiport transportation.

I am sure that is one of the reasons that Disney has decided to lower the buy in to 50 points. Just like they are now letting Members buy up to 15 points for cash.

Folks think Disney is wonderful without thinking about how this will change the existing balance of ownership, the affects on the resale market, and the affect on Members who want to rent a few of their points.

Bill

 

[Chuck S]

I am sure that is one of the reasons that Disney has decided to lower the buy in to 50 points. Just like they are now letting Members buy up to 15 points for cash.

Folks think Disney is wonderful without thinking about how this will change the existing balance of ownership, the affects on the resale market, and the affect on Members who want to rent a few of their points.

Bill

Just to clarify, it is $15 per point for a one time use, up to 24 points. It is not a purpetual buy in, more like a transfer.

 

[dis-happy]

Just to clarify, it is $15 per point for a one time use, up to 24 points. It is not a purpetual buy in, more like a transfer.

Is it one time use, or one time per use year? Guess I should pay more attention to membership changes.....

 

[Chuck S]

Is it one time use, or one time per use year? Guess I should pay more attention to membership changes.....

Both, actually.

They can be used one time, not banked, and it has been reported that if you cancel the reservation they are used for, you lose them...they do not go into your account; and you can "buy" them once per use year.

 

[ToddyLu]

I noticed a couple of days ago, on the sales chart for 2010, on DVCNews.com, that sales this year where in line with sales in 2006. Seems like the contracts are not selling like they want. I don't think I am upset about the 50 point buy in---we need 210 (which we bought last year) for our stay. However, it may have helped us buy in several months earlier when I first started doing my research, then we could have added on with less up front cost. Oh well, times are hard on everyone.