OKW Going Up to $180 PP

[Jimmy Geppetto]

Just got word that OKW is going up to $180 pp effective today! WOW!

 

[DVChris]

That’s a $10 increase! Based on the latest direct sales report, the demand is there. My guess is they will not have incentives for OKW with the demand so high.

 

[Marionnette]

DVC Resale Market reported a 27% ROFR'd rate for OKW in August. And some OKW owners have reportedly gotten emails from DVC offering to buy back their contracts. I'm not surprised that the direct price went up.

 

[dvc lover 1970]

Wow!! They are trying to push direct to RIV.

 

[Jimmy Geppetto]

Wow!! They are trying to push direct to RIV.

That’s an interesting perspective. I never looked at it that way. Makes sense.

 

[Yinn]

That’s an interesting perspective. I never looked at it that way. Makes sense.

So what's the bottom look like right now? OKW/SSR @ $180 and AKV @$186? That sets a floor of ~$125-$130/pt. That seems to match up with the recent ROFR reports.

 

[dvc lover 1970]

That’s an interesting perspective. I never looked at it that way. Makes sense.

I dont think RIV sales are where they would like them. If they make the cost difference between the older resorts and RIV smaller more people would probably go with RIV despite the restrictions. I think it's a mistake on Disney's part. I think they will only drive more to resale. Those who will buy direct will no matter, those who want resale will no matter, however those on the fence may now only go resale. The value is not there for direct anymore.

 

[RoseGold]

Wow!! They are trying to push direct to RIV.

Nah, they're just holding the spread. Resale set this pricing.

 

[mrsdoubie]

Man I got in right under the wire with OKW. We bought for $167 pp.

 

[The Jackal]

DVC Resale Market reported a 27% ROFR'd rate for OKW in August. And some OKW owners have reportedly gotten emails from DVC offering to buy back their contracts. I'm not surprised that the direct price went up.

It’s not just for OKW contracts. They also sent them to SSR and AKV and possibly others. They are trying to buy most back at lowers than ROFR rates.

 

[brazzledazzler]

Is it normal for direct prices to go up on resorts multiple times in a 12 month period? A 10 point increase seems steep.

 

[Yinn]

Is it normal for direct prices to go up on resorts multiple times in a 12 month period? A 10 point increase seems steep.

It’s happened several times before. A $10/pt increase isn’t that steep. Back in 2019 they basically did a $10/pt increase on all resorts.

 

[Frederic Civish]

Just got word that OKW is going up to $180 pp effective today! WOW!

Unbelievable. On the other hand, I have told people, over and over, that DVC is a GREAT investment, IF you plan to go to DIsney very often. You use your DVC to stay at some great locations, and, after you use it for 5, 10, 20, or more years, you can probably sell it for what you initially paid for it, OR MORE, even considering inflation. That has been my experience.

When Disney raises their prices, for DVC (or other things too) it does make me mad. But then I realize they have just raised the bar on DVC and now my ownership is worth more.

 

[jbreen2010]

Is it normal for direct prices to go up on resorts multiple times in a 12 month period? A 10 point increase seems steep.

my guess is with current inflation they had to adjust. 170 to 180 is about 5% inflation. I am also wondering if people really aren’t buying riviera the way that they want, the other thing they can do is increase the prices of the cheaper resorts to make riviera look more promising. They sent an email yesterday with some incentives and I think if you buy 150 or more riviera points it was like ~$10 or so off a point - so really putting riviera at the same playing field as OKW.

 

[Frederic Civish]

my guess is with current inflation they had to adjust. 170 to 180 is about 5% inflation. I am also wondering if people really aren’t buying riviera the way that they want, the other thing they can do is increase the prices of the cheaper resorts to make riviera look more promising. They sent an email yesterday with some incentives and I think if you buy 150 or more riviera points it was like ~$10 or so off a point - so really putting riviera at the same playing field as OKW.

I wanted to buy Riviera, until I stayed there and until DIsney put in their restrictions on resales. Now I don't really care to stay there again, and I certainly am not interested in buying there. I wonder how many people feel like I do. It seems to me that Riviera sales have been a bit soft, but I don't know. I don't think they are in the category of 'Aulani soft' but I don't think they are great, either.

If you want to see a great, well themed, well done 'European type resort' go to Portofino over at universal. Spend a good hour or three wandering the place, looking at all the pools, getting lost in the hallways, finding the gardens, and sipping coffee on the Plaza, and see what someone can REALLY do with a European type theme. I think Disney has FAILED with Riviera.

 

[davidl81]

my guess is with current inflation they had to adjust. 170 to 180 is about 5% inflation. I am also wondering if people really aren’t buying riviera the way that they want, the other thing they can do is increase the prices of the cheaper resorts to make riviera look more promising. They sent an email yesterday with some incentives and I think if you buy 150 or more riviera points it was like ~$10 or so off a point - so really putting riviera at the same playing field as OKW.

Yes I think this price increase (just like the SSR increase) is mostly about getting RIV sales up. RIV sales are below where DVC needs/wants them to be and the data shows that SSR and OKW were really chipping away at RIV sales. The question to me though is are RIV sales lower than they want because of restrictions and the option of buying lower cost direct SSR/OKW, or is it a pricing issue where $201 a point direct is for right now too high?

 

[Sandisw]

Yes I think this price increase (just like the SSR increase) is mostly about getting RIV sales up. RIV sales are below where DVC needs/wants them to be and the data shows that SSR and OKW were really chipping away at RIV sales. The question to me though is are RIV sales lower than they want because of restrictions and the option of buying lower cost direct SSR/OKW, or is it a pricing issue where $201 a point direct is for right now too high?

The sales for RIV were pretty strong before COVID. Now, the entire sales of DVC has slumped in terms of totals for all resorts and that for sure has to do with COVID. We do not know what the goals are for RIV but I am pretty sure that the targets they once had changed when the pandemic hit and Reflections went by the wayside.

As I mentioned before, I think we need to see a few more months of sales and the % of total to know whether its the resort. The fact that they continued the August incentives, with no "bonus" like they have been tends to indicate that are happy enough with its sales that they didn't need to "add more".

And, the base price of $201 is not being paid, except by those adding on under 100 points. New buyers are paying less due to incentives. But, now that both SSR/OKW are closer in price to RIV, it will be interesting to see what occurs. New buyers were still choosing RIV over those two by a large percentage. I still believe those that went with SSR/OKW were doing so because of price alone.

September sales should be out pretty soon, and we will see what happened for total DVC!

 

[ILoveMyDVC]

Just got word that OKW is going up to $180 pp effective today! WOW!

Oh boy, I have two contracts at the last stage of ROFR - 130/pt extended

 

[fumanchu2488]

The sales for RIV were pretty strong before COVID. Now, the entire sales of DVC has slumped in terms of totals for all resorts and that for sure has to do with COVID. We do not know what the goals are for RIV but I am pretty sure that the targets they once had changed when the pandemic hit and Reflections went by the wayside.

As I mentioned before, I think we need to see a few more months of sales and the % of total to know whether its the resort. The fact that they continued the August incentives, with no "bonus" like they have been tends to indicate that are happy enough with its sales that they didn't need to "add more".

And, the base price of $201 is not being paid, except by those adding on under 100 points. New buyers are paying less due to incentives. But, now that both SSR/OKW are closer in price to RIV, it will be interesting to see what occurs. New buyers were still choosing RIV over those two by a large percentage. I still believe those that went with SSR/OKW were doing so because of price alone.

September sales should be out pretty soon, and we will see what happened for total DVC!

As an existing owner who was looking for a small add on at RIV I agree and understand buyers. The 150 point minimum makes an initial buy in over $30,000. That is a real tough pill for people to swallow and probably pushes people to smaller resale contracts.

 

[Sandisw]

As an existing owner who was looking for a small add on at RIV I agree and understand buyers. The 150 point minimum makes an initial buy in over $30,000. That is a real tough pill for people to swallow and probably pushes people to smaller resale contracts.

Exactly. So at this point it’s really hard to say that RiVs sales numbers are because people don’t want the resort.

Way too many factors involved right now thst are impacting things. As I mentioned prior to Covid it was doing well.