Price Increases Mid January

[Ben E N]

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.

I can't comment on what will make other people interested in buying in. Personally, free APs for life for me and all of my family and friends, plus an extra 3 fastpasses a day would be enough to get even me to buy a few more points direct. Short of that, and I would have to look at resale value before making such a big purchase. I don't buy cars just because they look nice. That may be part of the equation, but how much they retain their value is another part. I took into account the value of BLT resale when I bought in, and if that value was very minimal, it would probably have scared me away.
If this is really happening, Disney had to account for potential buyers such as myself and had to either have come up with a fallback for them like "If you decide to sell, we will buy it back at 85% of your buy-in cost", or something along those lines, or they figured out that most of their direct sales are emotional purchases anyway and are more in the mindset to sucker people into committing tens of thousands of dollars than to actually build lifetime customers.

 

[4luv2cdisney]

Has anyone confirmed the price increase?

 

[Chuck S]

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

Uh, no, there would have to be interusage agreements in place. The current "club" agreement allows for the interusage of points at all DVC resorts. Riviera would need to be either a separate entity unto itself, the flagship of a new crop of DVCs (DVC II) or part of our current "club" agreement.

 

[TheMick424]

I can't comment on what will make other people interested in buying in. Personally, free APs for life for me and all of my family and friends, plus an extra 3 fastpasses a day would be enough to get even me to buy a few more points direct. Short of that, and I would have to look at resale value before making such a big purchase. I don't buy cars just because they look nice. That may be part of the equation, but how much they retain their value is another part. I took into account the value of BLT resale when I bought in, and if that value was very minimal, it would probably have scared me away.
If this is really happening, Disney had to account for potential buyers such as myself and had to either have come up with a fallback for them like "If you decide to sell, we will buy it back at 85% of your buy-in cost", or something along those lines, or they figured out that most of their direct sales are emotional purchases anyway and are more in the mindset to sucker people into committing tens of thousands of dollars than to actually build lifetime customers.

I'm guessing that most people aren't being as thoughtful and rational about it as you are (and I mean this as a compliment). Realistically they are marketing to a generation that has serious FOMO.

 

[Chuck S]

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

Yes...that can not change, it is part of the interusage agreements, unless a resort withdraws from the DVC system completely.

 

[Wakey]

If correct this probably answers the long debated 'can they restrict resale buyers to their own resort'. Answer was no. They have set Riviera up in its own club. That's why Riviera Resale buyers can only stay there, and may be able to stay in Reflections, but I imagine they will limit the latter from the off- effectively destroying the Resale market values for new resorts going forward. In 40 years time, Resale will not be an attractive proposition at all. They must have figured out that people buying direct will not take into account that the contract will be worth much less resale.
Personally I wouldn't touch it with a bargepole.

 

[4luv2cdisney]

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.

Agree. Most people aren't thinking about what happens when they sell. All the original DVC purchasers had no previous data to make them feel warm and fuzzy about resale values and they got great incentives.

 

[Ben E N]

I'm guessing that most people aren't being as thoughtful and rational about it as you are (and I mean this as a compliment). Realistically they are marketing to a generation that has serious FOMO.

Agreed. When I was there over the past four days, I paid attention to how many DVC booths they had, and how many people were just casually chatting with the guides. It was an incredible amount, all with signs saying "Save 50%!" "Join in the Magic!", etc. DVC is very nice, and I am loving it, but FOMO is a scary reason to spend that much money.

 

[4luv2cdisney]

Another thought....

I predict this devalues resale on all the later end date "original resorts". With each resort that expires, you eliminate oPtions. So, approaching 2042, as values for the 2042s drop, so will the others. Not to the same level of course, but...

 

[Brian Noble]

Prediction:

This will not materially impact Riviera sales, but Riviera will suffer significantly in resale value (as likely will all future resorts, assuming Disney continues this playbook*.) The second part is obvious: a prospective resale purchaser can buy at Riviera, and stay only there, or buy anywhere else and stay anywhere but Riviera.

I know which one I'd buy, and which one most people would buy.

There will still be a market for Riviera; for some folks, staying anywhere in a Disney-owned/managed resort is better than not, and even if Riviera ends up the least popular, it is still better than nothing for that slice of the market. If it can be had at a value, so much the better.

The first part---that it won't materially impact sales---is less obvious, but I think it is inevitable. Timeshare is an aspirational purchase. The typical buyer is on vacation, having the time of their lives, and is told that they can bottle this magical feeling for decades to come and save money! That sounds great. Very few are thinking about what happens when the kids outgrow it, what happens if they lose a job, get divorced, or any one of a number of other things happen. Very few have any idea that the secondary market exists, what the price points are, etc.

And, even if the resale value of Riveria approaches zero, that's not a problem for DVD and sales. It isn't a problem for Wyndham, Bluegreen, Diamond, or any of a number of other timeshare developers. It won't be a problem for DVD. They might lose some sales on the margins, but that's okay. And, the value won't go to zero; it will still be supported by market rate rents as long as there is still demand for Disney vacations. If that demand falls, though...well all bets are off.

*: It will be interesting to see if each new resort is standalone on resale, effectively creating a family of individual "clubs" with limited cross-stay rights, or this is DVC-II. I am betting the former, but we will see.

 

[galaxygirl76]

I'm just fascinated with all this (bad) news coming out a month after the annual meeting, where there was no peep about any of the things that have come out the last few weeks.

 

[_auroraborealis_]

Additional prediction:

None of the 2042 resorts are offered extensions. All will be remodel and new sale, to join the "no-no resale!" association. An extension would not allow them to re-do points charts or move associations.

 

[Madame]

Uh, no, there would have to be interusage agreements in place. The current "club" agreement allows for the interusage of points at all DVC resorts. Riviera would need to be either a separate entity unto itself, the flagship of a new crop of DVCs (DVC II) or part of our current "club" agreement.

And you’re 100% sure of that are you...? I truly hope you’re right, but « trust no one » seems apt advice.

I’m assuming part of bumping up the points for studios & 1bds is to make other resorts less attractive & push the new « club » then. All done in the members’ best interests though...

 

[Wakey]

Additional prediction:

None of the 2042 resorts are offered extensions. All will be remodel and new sale, to join the "no-no resale!" association. An extension would not allow them to re-do points charts or move associations.

Totally agree. They have decided to 'lance the boil' of resale once and for all, with the new club.

 

[Madame]

Totally agree. They have decided to 'lance the boil' of resale once and for all, with the new club.

They’re ridiculous. Part of the sales pitch for paying such a high ppp is the healthy resale market.

 

[_auroraborealis_]

Totally agree. They have decided to 'lance the boil' of resale once and for all, with the new club.

I personally always thought the hopes of (cheap) (any) extension on BWV or BCV were misplaced. BRV extended to match CCV was the only possibility I thought even remotely hopeful, and even that wouldn't be done cheap.

 

[chiisai]

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.

Yeah, I’m no longer considering Riviera points now, unfortunately.

 

[cde48]

I would stay away from any direct purchase, at any of the new resorts. This devalues the (new) membership tremendously.

 

[pkrieger2287]

Disney has lost any chance of convincing me to add points at a new resort now. Happy with the amount we have and will ride out our “grandfathered” status.

 

[we"reofftoneverland]

Wow, not sure we want to buy the 75 direct points needed for "privileged" membership anymore. First the dues, now this. I think we'll just make it work without the annual pass discount.