Price Increases Mid January

[4luv2cdisney]

I wonder how many contracts already sitting in ROFR and submitted this next week will pass? I read one resellers saying they took back nearly 30 percent last month. If they are announcing a big price increase, there will likely surge in demand resulting in even higher but back

 

[Wakey]

I feel like I read something in the POS about an amount that is charged related to the exchange system. Man, I'm tired of reading that POS but might have to find that. IF so, then there will have to be different dues calculations for them, at least initially, or maybe their POS will be modified in somehow change that aspect.

I think there’s a good chance this will be in an entirely new club.

 

[KAT4DISNEY]

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.

The one bit I do feel they continually forget when they do these timeshare moves - DVC resorts (at least WDW and DL) are located next to the reasons that most people inherently buy the product (even if they don't realize it) - Disney parks. Their only competition when it gets down to it is Disney hotels. As long as the value is better than staying at Disney onsite hotels they just can't do enough to remove the resale competition with anyone who is buying for the inherent value. There will always of course be those that apparently don't care and just get good feelings from being a part of the "Club" but the true value is also why DVC resale can remain as healthy as it does. Go Disney Parks! Don't screw it up!

 

[Wakey]

I wonder how many contracts already sitting in ROFR and submitted this next week will pass? I read one resellers saying they took back nearly 30 percent last month. If they are announcing a big price increase, there will likely surge in demand resulting in even higher but back

Apparently resale agents are already having a large surge.

 

[JETSDAD]

Apparently resale agents are already having a large surge.

It's probably going to be a crazy couple of weeks for them and then we'll see what happens after that.

 

[GrumpyInPhilly]

If Rivera resales do in fact drop to a very low price and the resort itself is pretty nice, wouldn't there be a set of buyers for those cheap points from those that are already grandfathered in (assuming DVC didn't ROFR them all)? We could use our grandfathered points at our home resort and to sleep around at the other 13 "original" resorts and then use the really cheap Rivera resale points to stay there?

 

[KAT4DISNEY]

It's probably going to be a crazy couple of weeks for them and then we'll see what happens after that.

In 2011 it was a huge surge. And resale prices dropped and dropped as owners wanted to get rid of them contracts for the fear of what was going to happen to the value. There was a pretty decent lead time for people to prepare. In the final few days I would have been able to buy OKW at $40/pt - zero negotiating. I got BWV for $50/pt - zero negotiating and there were quite a few other deals out there. Curious to see if sellers will have the same sort of frenzied actions this time.

 

[JETSDAD]

In 2011 it was a huge surge. And resale prices dropped and dropped as owners wanted to get rid of them contracts for the fear of what was going to happen to the value. There was a pretty decent lead time for people to prepare. In the final few days I would have been able to buy OKW at $40/pt - zero negotiating. I got BWV for $50/pt - zero negotiating and there were quite a few other deals out there. Curious to see if sellers will have the same sort of frenzied actions this time.

I had figured prices might spike over the next week as buyers rush to grab grandfathered contracts...I wasnt around for the 2011 change but if that happens I will certainly be buying lol.

 

[chiisai]

Apparently resale agents are already having a large surge.

Large surge in people listing their contracts for sale, or buying?

 

[Wakey]

Large surge in people listing their contracts for sale, or buying?

Buying, an agent on a Facebook page said it started immediately. If I was selling I’d make it expensive and guarantee to return paperwork by 1/18.

 

[KAT4DISNEY]

I had figured prices might spike over the next week as buyers rush to grab grandfathered contracts...I wasnt around for the 2011 change but if that happens I will certainly be buying lol.

Yeah, it went the opposite way in 2011. A seller can try and increase but supply/demand and there's a good supply of resale contracts out there now. Then if the sellers get worried the market will lose buyers after the change? Then it's better to sell now vs later. We'll see. I'd guess there will be some who list at higher amounts hoping to catch resale buyers who want to be grandfathered in. It could get interesting next week or the middle of the month for those who really want to sell but haven't yet.

 

[zavandor]

I suspect it will have to be traded - 1 point in, 1 point out, otherwise I would think Resale owners who cannot stay in Riviera will say they have their own resources diminished with no reciprocal rights and have a legal case. Guessing here. That is why they have left current resale owners grandfathered (also to avoid the negative fallout) - there will be enough of them to guarantee trading in and out between the two clubs is covered points wise.

I agree there must be some form of regulated exchange between Riviera and the LegacyDVC resorts. Otherwise I cannot see how it could work legally.

Regarding a lawsuit, I'm starting to think the majority of DVC owners are too intoxicated by pixie dust. The reaction I got to my posts outside the DIS has been underwhelming at best. Maybe this will open a few more eyes.

 

[ckb_nc]

If Rivera resales do in fact drop to a very low price and the resort itself is pretty nice, wouldn't there be a set of buyers for those cheap points from those that are already grandfathered in (assuming DVC didn't ROFR them all)? We could use our grandfathered points at our home resort and to sleep around at the other 13 "original" resorts and then use the really cheap Rivera resale points to stay there?

Now this is a real interesting thought. Use my grandfathered points when I want cross the 10 onsite properties, get some cheap Riveria resale points exclusively for booking for Food and Wine/Not So Scary - basically a lock-in for October..My $70 a pt SSR is still looking good price for a few more years.

 

[Madame]

If Rivera resales do in fact drop to a very low price and the resort itself is pretty nice, wouldn't there be a set of buyers for those cheap points from those that are already grandfathered in (assuming DVC didn't ROFR them all)? We could use our grandfathered points at our home resort and to sleep around at the other 13 "original" resorts and then use the really cheap Rivera resale points to stay there?

I imagine they’ll ROFR the majority, but just wait until the economy tanks & scoop them up cheap. Won’t have to worry about resale value that way as the ROI will be fast.

 

[zavandor]

Wondering if the lockoff increase is due to this. Generating more points out of this air will allow to create extra points that can be deposited into the exchange system to trade with the new resorts.
It could be even shadier than I thought. They weren't after the breakage inventory, that is peanuts, they were after a way to make the new exchange system work.

 

[SL6827]

Glad I didn't buy in any more points than I did, for the moment anyways. But if those HH points ever get real cheap, LoL.

 

[Mumof4mice]

Was Drunken Monkey from the ROFR department promoted to Chief of Strategic Planning??

This is the first of the recent changes that gave us pause. We felt as long as DVC continued to offer a product that was acceptable to the masses (mean +/- 1SD?) it would be acceptable to us. Everything else has been papercuts; this is a major departure in business strategy. Restricting trade, unless they have news up their sleeves (like the new DLR DVC going ahead after all) can negatively impact Riviera direct sales. Disney hurting owners to benefit themselves at least makes logical sense. Disney doing bad business is worrying.

 

[SL6827]

What will Disney do next with DVC that will make them more money at the owner's expense? There is a no holds bar attitude now. They seem to be getting closer and closer to having the ethics and reputation of any timeshare company out there.

 

[jarestel]

I don't think Disney gives a hoot about resale prices except for how they impact direct sales. If DVD can make resales as unappealing as possible they can drive more folks to direct. But this is no different than any timeshare developer operates so except for having to rub the Disney pixie dust out of our eyes, there's nothing surprising about the latest round of restrictions. Does anyone think there won't be more resale restrictions in the coming years?

 

[Ben E N]

Let's be honest about this change as it is proposed - it really will have little to no impact on us currently. Those who are in the system are in the exact same shape as they were before. Those who buy in next month will only be missing out on one resort, and they could just rent out their points and then rent Riviera points to get in. In another 4-5 years, add another resort, but still not anything different.
This actually makes me excited to see if cheap resale points get cheaper once restrictions come into play. I would use those to stay at the 14 other resorts, and then my grandfathered points to stay at Riviera, if it is even worth the money. It has also convinced me to avoid ever buying direct points from Disney again, especially at any new resort.
Where this starts to get interesting is in 2042, but that is still 23 years away, so it is nothing to get too upset about.