Price Increases Mid January

[BillPA]

Does that mean the new DVC resorts, Rivera etc, will be a 'new' DVC2? Such that owners of the new DVC2 will not be allow to use the original DVC resorts? Or will Disney just stick it to us again? Potential owner BEWARE of what you are buying and pay attention to what DISNEY is doing to us 'old timers'.

 

[TheMick424]

We went to a DVC presentation at SSR today and our guide told us the same thing. Direct price increase and resale points will be restricted from booking at new resorts.

Ugh...not good at all. Praying there will be some grandfathering if this is true. We bought resale this past year and have our first trip coming up. This is giving me a sour taste in my mouth and a pit in my stomach. Not to mention the potential devaluation...

 

[Ben E N]

We went to a DVC presentation at SSR today and our guide told us the same thing. Direct price increase and resale points will be restricted from booking at new resorts.

I'm not saying that it won't or can't happen, just that it sounds more like the same old sales tactic more than an actual threat. Unless new properties are leaps and bounds better than current offerings (and no offense to Rivera and River Country, but those locations are not as ideal as BCV and BLT), it would only act to restrict new buyers from being able to book at more resorts. A Rivera direct buyer would only be able to stay there because all the resale buyers would either stay at their own resort or swap to other old ones, not letting the Rivera buyers into the loop.

 

[MamaBear12]

Ugh...not good at all. Praying there will be some grandfathering if this is true. We bought resale this past year and have our first trip coming up. This is giving me a sour taste in my mouth and a pit in my stomach. Not to mention the potential devaluation...

This *almost* convinced us to buy direct today, but I’m not sure if paying almost double is really worth the ability to book at the new resorts.

 

[_auroraborealis_]

They have been spreading that poo for a while, and I seriously doubt it.

It is seriously legally difficult to restrict like that, particularly when it comes to BVT.

 

[JenniferYoung44]

I bought 75 BWV direct from Sisney this week and my guide mentioned a price increase coming soon but not an exact number. He didn’t mention the resale restriction rumor

 

[we"reofftoneverland]

Would that be for new buyers of resale? It seems like they could not do that retroactively to previous resale buyers. This is getting crazy.

 

[ScubaCat]

You mean to tell me that timeshare salespeople (sorry *cough* ... "Guides") would spread unsubstantiated rumors in an attempt to dissuade you from buying from someone else? Say it ain't so! Next time I suggest confirming this with an appropriately experienced bus driver just to be absolutely sure.

I suppose something like this is theoretically possible (legalese notwithstanding), but I don't see the benefit to DVD. On the other hand, they've surprised me before, so who knows...

 

[zavandor]

While they cannot differentiate resale from direct on key things, the POS gives them a lot of power. There is explicit mention of a "preferential list" that could allow people to book earlier than others: if you buy 300 points direct at Riviera, you can join the VIP club and book one week before others at 11 and 7 months. How does it sound, tempting?

 

[keaster]

Would that be for new buyers of resale? It seems like they could not do that retroactively to previous resale buyers. This is getting crazy.

Usually when they add restrictions to resale buyers, previous buyers are grandfathered in so it doesn't affect them; the restrictions apply to resale buyers going forward.

 

[Chuck S]

They have been spreading that poo for a while, and I seriously doubt it.

It is seriously legally difficult to restrict like that, particularly when it comes to BVT.

I'm not sure they can restrict points from being used at a new DVC resort, unless the new resort is not part of the current DVC system of resorts. Which could mean they are indeed creating DVC II ... but how many prime locations at WDW are left for new DVC II resorts? It seems a bit late in the game for that. I would've expected them to wait until the current resort leases expire, and as they are refurbished and resold (assuming here that they will be) creating DVC II at that time, and moving the current resorts into that system as they are refurbished upon lease expiration.

 

[Matty B13]

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.

 

[Bearval]

I'm not sure they can restrict points from being used at a new DVC resort, unless the new resort is not part of the current DVC system of resorts. Which could mean they are indeed creating DVC II ... but how many prime locations at WDW are left for new DVC II resorts? It seems a bit late in the game for that. I would've expected them to wait until the current resort leases expire, and as they are refurbished and resold (assuming here that they will be) creating DVC II at that time, and moving the current resorts into that system as they are refurbished upon lease expiration.

I imagine they could start a “new”category where you can only book outside of your home resort if your points are direct purchase. Everyone who has points now would be grandfathered and all new contracts sold by DVC would have this in the language. DVC could then exercise their ROFR and issue these under the nw language.

 

[Ben E N]

I imagine they could start a “new”category where you can only book outside of your home resort if your points are direct purchase. Everyone who has points now would be grandfathered and all new contracts sold by DVC would have this in the language. DVC could then exercise their ROFR and issue these under the nw language.

I don't mean to overly poo-poo this possibility, but it would really hurt DVC more than help them make direct sales. If resale buyers are restricted to only staying at HHI or Aulani, then that means that those rooms will fill to almost capacity for those buyers. DVC guides would no longer be able to sell the possibility of staying there as being a real likelihood. Also, if those resorts sold for $1 per point, then it would act to lower the direct sales value, because $180 per point would be too extreme in comparison. It would hurt resale buyers, yes, but the value of DVC as a whole even more.

When I bought mostly resale a year and a half ago, my guide shared the same rumor with me. In response I said "Great! That means I would be able to rent out points to my home resort and would then just rent points from somebody else at a resort I want to stay at!" Working around that silly restriction would not be that difficult.

 

[CarolMN]

I imagine they could start a “new”category where you can only book outside of your home resort if your points are direct purchase. Everyone who has points now would be grandfathered and all new contracts sold by DVC would have this in the language. DVC could then exercise their ROFR and issue these under the new language.

There isn't anything in the contract that would allow them to treat owners differently based on how they acquired their points. I question if even grandfathering the current owners would be legal.

Even if they could do what you suggest, it would almost certainly destroy the resale market. How many would buy knowing they couldn't resell, and at what price point? (It wouldn't be anywhere near where it is today). Such a restriction would also significantly limit the ability to trade into other resorts. The "club" (trading) aspect is a huge selling point.

 

[_auroraborealis_]

It would hurt resale values across the board. And if resale could only stay at home resort, kiss getting into BCV, BWV, VGF or VGC on your $200 Riviera points goodbye.

 

[Wakey]

I too am sceptical that could legally do this, and don’t believe it. To do this would trash the resale market and basically finally make DVC just like every other timeshare. It would also immediately devalue all of our holdings substantially.
To do this would be placing short term profits over long term viability for the business being able to sell the points it does, for the price it does.

 

[Madame]

Meh, I wouldn’t put it past them. & 90% of members would find it justified and oh so excellent. They seemingly can do whatever they want without challenge. Whatever we’re fine at BCV & SSR, 2 of our favourites.

 

[Drewferin]

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.

 

[4luv2cdisney]

Meh, I wouldn’t put it past them. & 90% of members would find it justified and oh so excellent. They seemingly can do whatever they want without challenge. Whatever we’re fine at BCV & SSR, 2 of our favourites.

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.