Price Increases Mid January

[glamdring269]

To clairfy, do you mean members who rent their points out, or the people who enjoy the benefit of renting should be boiled in oil?
I don't believe I have ever seen you post anything like that before?
Is someone else posting in your name, or are you joking, Scrooge style?

You need to read the post again. It's in reference to the thoughts of DVC Neighborhood.

"DVC Neighborhood is full of misinformation... AND anyone who rents points" implies that to be the tongue in cheek representation of DVC neighborhood group think.

 

[skippytx]

I'm trying to join that FB group now, I love me some drama and ridiculousness.

 

[Mumof4mice]

The official notification doesn't mention Riviera resale purchasers only being able to book their home resort. One would assume they could trade amongst the DVC2 resorts, if and when they're launched. I'm not convinced Disney is aiming to destroy resale value of future resorts so they can make a quick buck by exercising ROFR and reselling the contracts. Isn't the theory on these boards that the purpose of ROFR is partially to control the resale price floor to support direct sales?

 

[wishicouldgomoreofte]

You need to read the post again. It's in reference to the thoughts of DVC Neighborhood.

"DVC Neighborhood is full of misinformation... AND anyone who rents points" implies that to be the tongue in cheek representation of DVC neighborhood group think.

Thanks. With your help I see now now she was referring to that group's attitudes, not her own.
It sure didn't look like anything I remember her posting before.
What is that group?

 

[JETSDAD]

I'm trying to join that FB group now, I love me some drama and ridiculousness.

I've done that twice thinking it would be fun to watch but both times it just made me feel sad for the human race. No more.

 

[4luv2cdisney]

@skippytx BLT INCREASE

https://disboards.com/threads/to-anyone-contacting-their-guide-today.3727842/

 

[Ben E N]

The official notification doesn't mention Riviera resale purchasers only being able to book their home resort. One would assume they could trade amongst the DVC2 resorts, if and when they're launched. I'm not convinced Disney is aiming to destroy resale value of future resorts so they can make a quick buck by exercising ROFR and reselling the contracts. Isn't the theory on these boards that the purpose of ROFR is partially to control the resale price floor to support direct sales?

I agree. I know that some reputable news sites have stated that, but it is a huge divergence from what they have done in the past. I would be shocked if this is the way things will actually are when they do start selling points later this year. I would expect it to be something more along the lines of resale contracts being limited to the first 15 resorts and not future ones from there.

 

[skippytx]

I've done that twice thinking it would be fun to watch but both times it just made me feel sad for the human race. No more.

Hmm... Maybe I'll cancel the join request. I was in one of the larger groups for a bit and the snarkiness and cliquishness was too much.

My wife is in a couple and the number of "We just bought 50K worth of DVC points, how does this work exactly?" posts are horrifying.

@skippytx BLT INCREASE

https://disboards.com/threads/to-anyone-contacting-their-guide-today.3727842/

Thanks!

 

[Wakey]

The official notification doesn't mention Riviera resale purchasers only being able to book their home resort. One would assume they could trade amongst the DVC2 resorts, if and when they're launched. I'm not convinced Disney is aiming to destroy resale value of future resorts so they can make a quick buck by exercising ROFR and reselling the contracts. Isn't the theory on these boards that the purpose of ROFR is partially to control the resale price floor to support direct sales?

Someone did a chat with DVC who confirmed resale at Riviera will only work at Riviera and resale at all resorts going forward will only work with that resort.

They don’t want to build another resale market. This is a hit they are prepare to take to kill and eat resale. Also they can reverse it if the cost benefit becomes more cost than benefit.

 

[Ben E N]

Someone did a chat with DVC who confirmed resale at Riviera will only work at Riviera and resale at all resorts going forward will only work with that resort.

They don’t want to build another resale market. This is a hit they are prepare to take to kill and eat resale. Also they can reverse it if the cost benefit becomes more cost than benefit.

As we know, though, DVC guides can be as misleading as bus drivers at times, especially for sales that are not set to happen for months. I'm not saying that it won't happen the way it is being reported, just that my jaw would drop quite significantly. It would mess up the system way too much.
People would still buy resale at Riviera, especially if it is cheap enough. Once enough people do that, it essentially takes it out of the exchange system, devaluing the newer resorts that get sold. It just feels like Disney would be shooting themselves in the foot.
For all we know, they have not made any decision one way or another on this and just threw a rumor out there to see what the response might be.

 

[Wakey]

As we know, though, DVC guides can be as misleading as bus drivers at times, especially for sales that are not set to happen for months. I'm not saying that it won't happen the way it is being reported, just that my jaw would drop quite significantly. It would mess up the system way too much.
People would still buy resale at Riviera, especially if it is cheap enough. Once enough people do that, it essentially takes it out of the exchange system, devaluing the newer resorts that get sold. It just feels like Disney would be shooting themselves in the foot.
For all we know, they have not made any decision one way or another on this and just threw a rumor out there to see what the response might be.

Well we will see but I saw the chat and the whole blurb looked official, including some of the badly worded sentences on the current notice on my dashboard.

 

[Ben E N]

Well we will see but I saw the chat and the whole blurb looked official, including some of the badly worded sentences on the current notice on my dashboard.

I feel like I am watching my across the street neighbor powering up a flamethrower to remove some dead brush. It has no impact on me one way or the other, but I hope for their sake I'm seeing things wrong, because I can see it ending poorly for them.

 

[Brian Noble]

Historically, resale prices have been driven more by direct pricing than anything else.

This is not true. During the Great Recession, resale prices dropped significantly, but direct pricing didn't change all that much (even with incentives accounted for.)

Resale prices are driven by supply and demand. Right now, demand for WDW vacations is high, which drives up DVC rents which helps soak up excess owned points keeping them off the secondary market. When travel demand slackens*, expect to see more contracts for sale and (after any pent-up demand is satisfied) a softening of prices.

*: It is when, not if.

 

[_auroraborealis_]

If you read the notification, the only possible outcome is Riviera resale can only book Riviera.

"Once sales of Disney’s Riviera Resort begin, Members who purchase a resale of Riviera will only be able to stay at Disney’s Riviera Resort in the DVC network. Those Members will still have access to RCI.”"

 

[Mumof4mice]

If you read the notification, the only possible outcome is Riviera resale can only book Riviera.

"Once sales of Disney’s Riviera Resort begin, Members who purchase a resale of Riviera will only be able to stay at Disney’s Riviera Resort in the DVC network. Those Members will still have access to RCI.”"

Are you quoting dvcnews? This part isn't in the official member website notification.

 

[Ben E N]

If you read the notification, the only possible outcome is Riviera resale can only book Riviera.

"Once sales of Disney’s Riviera Resort begin, Members who purchase a resale of Riviera will only be able to stay at Disney’s Riviera Resort in the DVC network. Those Members will still have access to RCI.”"

That's not direct from Disney, though. Here is all they post on the DVC announcement:

"Effective January 19, 2019, only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts.

This change does not apply to contracts purchased prior to January 19, 2019. Contracts gifted to family members will continue to have the same Resort access as before the ownership transfer.

The eligibility rules for Membership Extras and RCI access remain unchanged.

The Buena Vista Trading Company Disclosure Guide has been amended accordingly."

 

[Bing Showei]

This is not true. During the Great Recession, resale prices dropped significantly, but direct pricing didn't change all that much (even with incentives accounted for.)

Resale prices are driven by supply and demand. Right now, demand for WDW vacations is high, which drives up DVC rents which helps soak up excess owned points keeping them off the secondary market. When travel demand slackens*, expect to see more contracts for sale and (after any pent-up demand is satisfied) a softening of prices.

*: It is when, not if.

I would argue the aberrations of pricing during the Great Recession was more influenced by the absence of ROFR than the supply and demand forces as you’re suggesting.

In a normal healthy economy, and what has been observed historically, when Disney increases direct pricing resale prices have followed in lock step.

 

[ELMC]

Someone did a chat with DVC who confirmed resale at Riviera will only work at Riviera and resale at all resorts going forward will only work with that resort.

They don’t want to build another resale market. This is a hit they are prepare to take to kill and eat resale. Also they can reverse it if the cost benefit becomes more cost than benefit.

But here's the thing...I don't think they're taking that big of a hit. Sure, the people on these boards are all over this. But what percentage of DVC buyers do you think we are? I would argue an insignificantly small percentage. The majority of "in the Magic" decision makers buying DVC are not asking about resale. And even if they are, DVD will probably spin this change as being good because you can't get the same thing resale that you can get by buying direct. I think this is a very low risk move by Disney, reaction on this board notwithstanding.

 

[ELMC]

I would argue the aberrations of pricing during the Great Recession was more influenced by the absence of ROFR than the supply and demand forces as you’re suggesting.

In a normal healthy economy, and what has been observed historically, when Disney increases direct pricing resale prices have followed in lock step.

I'm not so sure I would agree with this. I did a lot of DVC buying at the tail end of the Great Recession and the competition just wasn't there. A dearth of buyers meant that great contracts weren't being competed for and sellers were forced to discount if they wanted to sell. The economy was terrible and not many people had money to buy. Those who did reaped the rewards.

Your second point, however, does seem to hold true. Let's hope we stay in a healthy economy!

 

[Mumof4mice]

The people these new rules are going to hit hardest are direct Riviera/Reflections buyers who have to sell before any of the future DVC2 halo resorts (possibly new Epcot resort, BLT South, Poly tower?) come on line.

One could make the argument that DVC's casual disregard for the welfare of the hapless newbie impulse buying Riviera, casts doubt on their character and predicts future persecution of resale owners. It could be a fair decision to cash out - people who bought as recently as 12-18 months ago could probably make a painless exit now if they wished to.

For now, our family is in watch-and-wait mode. Not dumping our contracts in a fire sale at this point. Realistically the restrictions are unlikely to significantly impact DVC1 owners at least until the 2042 resorts bite the dust. There's a fair chance that Riviera and Reflections could be the OKW and SSR of DVC2, and excluding those resale points from booking the current resorts could end up being advantageous for current owners.