Purchasing a Stripped Resale

[gharter]

I really don't think it is that sinister. I think there are 2 main purposes:

1) Fill waitlists at a profit for DIS
2) Prevent ultra low price deals from going to customers.

That may be a side effect of it, but I don't believe that is why it exists.

While being very new at this, I would agree.
From a business view, this makes sense. I think Disney uses ROFR to keep the value of the resorts high. As a buyer, I obviously want to get the best deal that I can. However, as an owner, and if I ever need/wanted to sell, I want the value to be as high as possible. If there are too many cheap deals going through, it also makes it much more difficult for Disney to sell direct.

 

[Dean]

I really don't think it is that sinister. I think there are 2 main purposes:

1) Fill waitlists at a profit for DIS
2) Prevent ultra low price deals from going to customers.

That may be a side effect of it, but I don't believe that is why it exists.

The main purpose of ROFR is to drive people to buy retail and the method they've used over the years is to purposefully make it difficult to know where to draw the bar. They really don't make any more on a purchase and resell than they do on the new retail, usually not nearly as much. Certainly preventing the fire sale is one of the ways that ROFR functions in driving people to retail.

 

[DisDadDVC]

The main purpose of ROFR is to drive people to buy retail and the method they've used over the years is to purposefully make it difficult to know where to draw the bar. They really don't make any more on a purchase and resell than they do on the new retail, usually not nearly as much. Certainly preventing the fire sale is one of the ways that ROFR functions in driving people to retail.

Maybe I'm just splitting hairs. I agree Disney wants to drive people to retail. I just think they do it by ROFRing to fill waitlists and keep the gap between retail and resale reasonable. Not that they are deliberately taking some contracts to confuse people or freak them out into buying direct. At least that's not the "main" reason for ROFR. You say tomato, I say tomato.

 

[Dean]

Maybe I'm just splitting hairs. I agree Disney wants to drive people to retail. I just think they do it by ROFRing to fill waitlists and keep the gap between retail and resale reasonable. Not that they are deliberately taking some contracts to confuse people or freak them out into buying direct. At least that's not the "main" reason for ROFR. You say tomato, I say tomato.

Historically their main approach with ROFR has been to drive people to resale by keeping them guessing, not that they are against making some money on the ROFR side as well. Of this I am 100% certain. Timeshares are notoriously resistant to selling resales competing against their newer projects. Plus they really won't make as much as many think on those resales. At the end of the day this is a volume business.