Price increases

[dizfan]

Tim at DVCNews.com is reporting some price increases and discounts.

http://dvcnews.com/index.php/news-program-information-93/1396-significant-changes-to-dvc-pricing-and-discounts

Aulani still at $114/pt until Nov 1, when it goes to $120/pt.
BLT, AKV, and SSR now all at $120/pt base price.
No incentives for less than 100 points.
100-249 points and the incentive is $12/pt.
250+ points and the incentive is $18/pt.

In addition, Tim is also reporting a rumor that BLT will go to $130/pt effective December 1, 2010.
http://dvcnews.com/index.php/news-program-information-93/1397-blt-to-130-in-december

 

[skelfbsfb]

I take it the recession hasnt hit Disney yet. Dont understand why they are putting prices up, you would think that they would reduce to encourage people to buy from them instead of resale.

 

[drusba]

There is new change not yet reflected on that site, BLT is going to $130 per point Dec 1. That does not appear to be a "rumor" anymore since some here have confirmed that in calls with sales reps.

 

[jlewisinsyr]

I take it the recession hasnt hit Disney yet. Dont understand why they are putting prices up, you would think that they would reduce to encourage people to buy from them instead of resale.

Although reducing the price seems an obvious avenue to generate sales it will forever reduce the income as well. It's not like a hotel where the next night they can change the price and every night there after. Once the points are sold, the opportunity is lost forever (short of ROFR and recapture of points). It makes sense for Disney to increase their prices if they feel confident they can keep at least some level of sales.

 

[Brian Noble]

Dont understand why they are putting prices up, you would think that they would reduce to encourage people to buy from them instead of resale.

Because most people who buy timeshares do so on impulse. They do no research in advance, and have no idea that the resale market exists or what the price point might be. A few will discover it after the fact and rescind, but surprisingly, not many will do so in time.

 

[TiaMaria]

I take it the recession hasnt hit Disney yet. Dont understand why they are putting prices up, you would think that they would reduce to encourage people to buy from them instead of resale.

However, Disney can turn around and ROFR any resale contract they want - or all of them if they want, and then turn around and sell it for what they want.

 

[Stephen121795]

I think the resale market for buyers of DVC

 

[Brian Noble]

Disney can turn around and ROFR any resale contract they want - or all of them if they want, and then turn around and sell it for what they want.

Unless they have unlimited capital---or unlimited demand for new developer sales---this isn't as easy as it sounds.

 

[kenny]

Yep, sales rep confirmed BLT increase on 12/1 to $130 plus if you finance starting 11/1 the rate is going up as well.

 

[jdg345]

It sounds to me like maybe they are trying to create a run on sales just before the Holidays start up. Announcing a price increase might be all that is needed to get people on the fence to jump.

 

[got4boys]

Does anybody know whether the price of OKW is going to change?

Peggy

 

[DenLo]

Does anybody know whether the price of OKW is going to change?

Peggy

No one has mentioned any price changes at OKW. My DH is wondering if the DVC plans on leaving OKW as the lower priced resort so they have something else to offer potential buyers.

The DVC News still list OKW for add ons as:

$101 base price; 25-point minimum purchase
(Discounts available equal to approximately $11 off per point)

That brings it down to $90 per point and you get the extended use year. Still higher than resale though.