Price Increases Mid January

[Ben E N]

Just a thought... Let's assume this rumor it 100% true for a moment.

I saw last night that a DVC resale company posted that Dec was an all time high for buy backs. Disney bought back 27% of all contracts. This was 55 contracts bought back of 204 sent for ROFR. If this rumor is true and resale values would dip considerably why would Disney spend money in Dec buying back contracts? They could have waited until after mid Jan and bought them back a lot cheaper. Disney isn't stupid and wouldn't waste money buying back contracts that would be devalued so quickly. From a Disney business standpoint this rumor and the Dec buy back percentage doesn't pass the good business logic in my opinion.

That data does line up with a direct sales price increase, though. If they buy back the low price resale, it makes going just a "little" higher to go direct make more sense in comparison to what's left in the resale market.

 

[Madame]

I am starting to think this - along with other recent DVC actions - is just in line with the way we do things in America these days. I will not elaborate for I think I would be violating board rules.

I was in the midst of helping a family member wade thru options and make a decision on a purchase. It was to be a wedding gift for her son. I do not even know what to recommend as of this morning.

Agreed. I would not purchase either resale or direct if I were just looking into DVC as a first time buyer right now. It’s just another timeshare with a higher price tag & proximity to theme parks.

 

[Wakey]

The price increases I am happy with- make mine worth more, and I am certainly buying no more after this point chart re allocation, as my trust has waned.

This alleged restriction- wow that would be a whole new ball game, as it would devalue my holdings instantly, hammering all of us and our resale values. I would never trust them again in any shape or form.

I still think it is a false rumour though as I have seen it bandied about for years.


BTW- which Facebook group was this mentioned on ?

 

[MamaBear12]

BTW- which Facebook group was this mentioned on ?

I’m not the OP, but I was told that resale would be excluded from booking new resorts by a DVC guide at the SSR sales center yesterday. She was trying to sell us direct points of course.

 

[SL6827]

Also, this would completely devalue the resale value of HH and VB along with Alauni. I could see those resorts selling for $1/point on the resale market if this restriction went into affect, just like every other timeshare.

I would most certainly buy myself some Hilton Head points for that.

 

[SL6827]

I don't put anything past Disney anymore.

 

[Wakey]

I’m not the OP, but I was told that resale would be excluded from booking new resorts by a DVC guide at the SSR sales center yesterday. She was trying to sell us direct points of course.

Thanks- such rumours have been put about previously, but I haven't seen so many people reporting they have been told it all at once- makes me very worried. I am struggling to see how they could allow legally, Riviera owners to book at an old resort, and not allow that resorts' owners to book at Riviera. Only way I can see it working is maybe a direct to direct exchange permitted, and then DVC effectively using breakage points or others of its holdings to facilitate transfers in.
Wonder if this casts new light on the lock off premium?

 

[_auroraborealis_]

The guides have been singing that song for at least 3 years now, by the way.

Guides... well, some of them lie.

 

[TheMick424]

The price increases I am happy with- make mine worth more, and I am certainly buying no more after this point chart re allocation, as my trust has waned.

This alleged restriction- wow that would be a whole new ball game, as it would devalue my holdings instantly, hammering all of us and our resale values. I would never trust them again in any shape or form.

I still think it is a false rumour though as I have seen it bandied about for years.


BTW- which Facebook group was this mentioned on ?

I will just say that it was the FB group of the large resale broker run by former DVC guides. The owner did not confirm the rumor, but said that he had heard it as well, which is what makes me more nervous than usual.

The prospect of creating a DVC 2 is interesting, but I think it would be very hard for Disney to market it as separate and distinct from the old DVC which people have come to know and has a strong brand. This seems like a very risky move to me from a business perspective, but what do I know.

 

[TheMick424]

Well...here it is: https://www.dvcresalemarket.com/blog/new-dvc-resale-restrictions-and-who-is-most-impacted/

 

[Wakey]

Blog up on the big broker website confirming this!

 

[Ben E N]

This seems like a very risky move to me from a business perspective, but what do I know.

A corporation as large as Disney has many different algorithms working together in order to figure out with an almost certainty what will happen when they make a decision. They wouldn't make a move that would disrupt one of their biggest cash cows not just as a resort, but as a corporation as a whole, without knowing that their risk was minimized as much as possible.
There are way too many possible negative outcomes for them to shoot from the hip and hope for the best. If they really were to do this, they would have already anticipated how people would respond, and would have determined that some other side of the coin was worth it to them.

 

[Rochester Disney Fan]

I wonder how soon the rumored Epcot DVC resort will be announced to appease all the new purchasers that there will be in demand places to stay if they sell.

 

[Wakey]

Would you buy Riviera knowing it can ONLY be used there on resale and is thus likely to be hammered on the resale market? No way I would.

 

[Madame]

LMBO
So. The points charts are messed with creating more inventory for DVC at legacy resorts & we can’t exchange into the new resorts, but you bet your butt they’ll be able to exchange into BCV / BWV etc with all those points. Bring on the Disney defenders now

 

[SL6827]

So for people who already have points, we can still use our points to stay at all resorts, right?

 

[_auroraborealis_]

Long term, this is really screwed up, though. Because if resale Riviera can only stay at Riviera, it means future buyers at Reflections: A Disney Rehab Lodge and future DVC won't be readily able to trade into Riviera, and etc.

 

[Ben E N]

So for people who already have points, we can still use our points to stay at all resorts, right?

According to that blog post, yes. Anybody buying in before 1/19/19 is good.
I'm still skeptical about the whole thing, though. It kills resale value of Riviera too much. That place is going to be hard enough to sell in the first place. We will have to wait and see, though, knowing that we are "grandfathered" in.

 

[SL6827]

According to that blog post, yes. Anybody buying in before 1/19/19 is good.
I'm still skeptical about the whole thing, though. It kills resale value of Riviera too much. That place is going to be hard enough to sell in the first place. We will have to wait and see, though, knowing that we are "grandfathered" in.

Well I read it like we were grandfathered in. And if you buy resale points in the future at a "classic" resort you can book the 14 "classic" resorts with those points, right?

 

[TheMick424]

According to that blog post, yes. Anybody buying in before 1/19/19 is good.
I'm still skeptical about the whole thing, though. It kills resale value of Riviera too much. That place is going to be hard enough to sell in the first place. We will have to wait and see, though, knowing that we are "grandfathered" in.

I wonder if they will be offering additional incentives to direct Riviera purchasers...I can think of a few ideas that could potentially swing people towards buying there, especially if they are swayed by emotion vs. finances.