OTU cost increase to $17

[MaoriWhoLovesDisney]

According to my CM, this morning, Oct. 1, 2017, OTU points costs have been increased from $15 to $17 per point!

 

[Ben E N]

Makes sense to me. I was waiting for that to happen.
Rental rates I am sure will shortly follow, and then direct sales and resale prices will soon follow those increases.

 

[MaoriWhoLovesDisney]

I didn’t ask, but I wouldn’t be surprised if direct prices increased as well...

 

[Ben E N]

In tracking past increases, most have come in February. A couple have come in October, but I think many just went up 8 months ago, so I would be a bit surprised to see 2 increases in 12 months. I think one is coming soon for sure though, for a variety of reasons.

 

[BillPA]

I don't think direct points cost will go up until sales activity increase. Why raise the price when you can't sell what you have. When the new DVC goes on sale, you know they will add $5-8 a point to the current cost.

 

[Ben E N]

Yes, I do not expect them to rise at CCV or Poly, but the increase of OTU price has a ripple effect on other prices. It will drive more demand to rentals, which will raise their asking prices. This in turn will make resale look like a better deal, which will raise its prices.
Disney can then raise the prices of their sold out resorts, both to increase their margins on ROFR, and more importantly, drive sales to their soon to be 3 resorts that need to get sold out. $176-$180 a point does not sound so bad when BLT direct is going for $195 and BCV resale is $150. Also, people have shown that they are willing to pay $185/pt at BLT, as is evidenced by 4700 points being sold direct in August.

This is just wild speculation, so feel free to poke all the holes in it you want. There are also a lot of moving pieces in place, such as the strength of the economy, that can easily affect where things go.
The raising of OTU points by $2 a point does line up with the other steps happening, though.

 

[4luv2cdisney]

This worries me a bit. I did notice my guide kept saying BWV is "still $165/point" the last 2 times I've been on the phone with him. Yesterday, he was talking to me about my options for a different home resort with an Oct UY. I was thinking it was just to encourage me to buy yesterday with 2016 points. I hope it wasn't because a price increase is happening but he couldn't tell me. I'm hoping to get my Oct BWV points this week - thinking they have some contracts on hand, but just didn't have the 2016 points on them. Ugh.

 

[Ben E N]

Eh, don't let my "the sky is falling" speculation worry you. I have no insider information whatsoever, and guides have the specific job of trying to pressure you into sales. Even if prices do go up, I bet it's by no more than $5-$10 a point, and not in the too near future. More likely right before Riviera goes up for sale.

 

[peabody58]

Yep, just purchased 24 one-time use points for my BWV May 1 - 7, 2018 trip an hour ago. Was informed that effective today (Oct 1, 2017), one-time use points cost has increased $2 a point from $15/point to $17/point. That is a 13.3% increase, or $48 more for all 24 points. The DVC Advisor didn't even know about it until she arrived at work today. I'm still glad that the option is available and I'll get over the cost. On a positive note, they no longer need to transfer you to someone else to purchase one-time use points. Also my other reservation was 'held' until the new reservation was established; whereas in the past it was cancelled first and you hoped you could still get your new reservation. My dashboard was updated real-time and all points transactions verified correct before the 'official' reservation was locked in. Even got my room requests made and Standard Room Waitlist created. Very efficient and a wonderful DVC interaction.

 

[4luv2cdisney]

Eh, don't let my "the sky is falling" speculation worry you. I have no insider information whatsoever, and guides have the specific job of trying to pressure you into sales. Even if prices do go up, I bet it's by no more than $5-$10 a point, and not in the too near future. More likely right before Riviera goes up for sale.

Well, I got my points today and they were still $165, so I'm safe!

 

[Ben E N]

Well, I got my points today and they were still $165, so I'm safe!

Well you can rest easy being confident about one thing. Those prices weren't going to get any cheaper anytime soon!

 

[Tigger2ntinkerbell]

What is OTU??

 

[erionm]

What is OTU??

One Time Use Vacation Points

 

[_auroraborealis_]

Rental prices in home resort are already $18 at the major brokers. So this doesn't seem all that out of line, save that it's a 7 month only thing.