Resale Restriction

[EM Lawrence]

Another question about the new resale restrictions at RR. I am not currently a DVC owner, but considering a resale purchase. I’ve been reading a lot of threads and gathering tons of useful information. (Thanks for that!) My question has to do with whether it is possible for the resale restrictions that are now part of RR to be added to currently existing resorts in the future? Does the contract language allow for that in any way? If I purchase a resale Poly contract, will the rules potentially change so that if I ever decide to sell, the next buyer would only be restricted to Poly?

 

[Sandisw]

No, the current language does not allow for them to add that restriction to the current L14 resorts as they entered into the BVTC with different rules,

We anticipate that all future resorts will have it.

 

[mustinjourney]

Another question about the new resale restrictions at RR. I am not currently a DVC owner, but considering a resale purchase. I’ve been reading a lot of threads and gathering tons of useful information. (Thanks for that!) My question has to do with whether it is possible for the resale restrictions that are now part of RR to be added to currently existing resorts in the future? Does the contract language allow for that in any way? If I purchase a resale Poly contract, will the rules potentially change so that if I ever decide to sell, the next buyer would only be restricted to Poly?

the overwhelming thought is that they cannot retroactively change the existing resorts.

Plus -- if they could have done it -- I'm pretty sure they would have already done it.

 

[EM Lawrence]

Thank you! That is helpful to know.

 

[Drewferin]

No... The current resort are locked in without restrictions since they arent apart of the wording in the closing documents. Future resorts like Reflections will also probably have restrictions unless this financial downturn changes DVCs mind. Remember a Poly resale contract can only book the origional 14 resorts and not Riviera at this point.

 

[ELMC]

the overwhelming thought is that they cannot retroactively change the existing resorts.

Plus -- if they could have done it -- I'm pretty sure they would have already done it.

Exactly, and this is what is making people react so poorly to the restrictions. The existence of another option, unrestricted resale points, makes new DVC properties unattractive by comparison. Since they can't change the old resorts, there's only one thing to do, and that is ride it out. Like a pp said, we expect that all new resorts going forward will have these restrictions and in the matter of a short 22 years it will start to become the new normal. Now they just have to sit and wait.

 

[Drewferin]

I'm starting to really believe that the horrible stock market and the COVID 19 virus concerns by travelers will really hurt disney financially. This scenario might allow DVC to take away the restrictions and claim it's to increase confidence in Disney due to virus/ economy. This wont be their #1 choice, but they will do anything to improve sales of Riviera. The Feb and March DVC sales data will be VERY important.

 

[DVCSunDevil]

Another question about the new resale restrictions at RR. I am not currently a DVC owner, but considering a resale purchase. I’ve been reading a lot of threads and gathering tons of useful information. (Thanks for that!) My question has to do with whether it is possible for the resale restrictions that are now part of RR to be added to currently existing resorts in the future? Does the contract language allow for that in any way? If I purchase a resale Poly contract, will the rules potentially change so that if I ever decide to sell, the next buyer would only be restricted to Poly?

They cannot add those restrictions. The language currently in the contract states that you can use your points at the original 14. Who knows if they will add it to future contracts.

 

[DVCSunDevil]

I'm starting to really believe that the horrible stock market and the COVID 19 virus concerns by travelers will really hurt disney financially. This scenario might allow DVC to take away the restrictions and claim it's to increase confidence in Disney due to virus/ economy. This wont be their #1 choice, but they will do anything to improve sales of Riviera. The Feb and March DVC sales data will be VERY important.

I don’t see Disney making any changes to DVC because of coronavirus. It is temporary. Disney is not going to make adjustments that would have a long lasting impact due to a short term issue.

 

[Sandisw]

I'm starting to really believe that the horrible stock market and the COVID 19 virus concerns by travelers will really hurt disney financially. This scenario might allow DVC to take away the restrictions and claim it's to increase confidence in Disney due to virus/ economy. This wont be their #1 choice, but they will do anything to improve sales of Riviera. The Feb and March DVC sales data will be VERY important.

That would mean that they believe the restrictions are hurting sales, So far, it is not and sales are doing well.

I would venture if sales slow down and they believe its due to other factors that you mention, they will raise incentives instead.

If sales slow for direct, I’d get resale takes a hit as well. They made the change to L14 the way they did because legally they had to keep Trades with other L14

 

[Soap_1984]

I also think sales are going to be brutal for a while due to coronavirus; I don't know how much dvc they sell on cruise ships (it may be immaterial) but they will drop to 0 there for the next couple months. With fewer people traveling etc and the markets the way they are, I'm quite certain the sales are going to fall off a cliff.

I hope they get rid of a restrictions, but to be honest I don't think that's a logical response and is unlikely unless the poor sales continue psst the point of the virus. Everyone knows a lack of sales in the next while is almost certainly due to this dumb virus everyone is, somewhat irrationally, panicking about.

 

[ELMC]

That would mean that they believe the restrictions are hurting sales, So far, it is not and sales are doing well.

I would venture if sales slow down and they believe its due to other factors that you mention, they will raise incentives instead.

If sales slow for direct, I’d get resale takes a hit as well. They made the change to L14 the way they did because legally they had to keep Trades with other L14

I agree completely. What we've seen from Disney in the past is that they rarely stop using the stick, they just add more carrots. And more sticks.

 

[mustinjourney]

I agree completely. What we've seen from Disney in the past is that they rarely stop using the stick, they just add more carrots. And more sticks.

and sometimes they'll take away the carrots too.

 

[RescueRanger]

That would mean that they believe the restrictions are hurting sales, So far, it is not and sales are doing well.

I would venture if sales slow down and they believe its due to other factors that you mention, they will raise incentives instead.

If sales slow for direct, I’d get resale takes a hit as well. They made the change to L14 the way they did because legally they had to keep Trades with other L14

Accept that sales are not doing well. If you watched the podcast the other day, you would see that Pete and the others were talking about how at the current rate of sales that it would take 7-8 years to sell out. I can assure you that Disney does not want to have RR on the market that long. It will interfere with Reflections. If sales don’t pick up soon, I think Disney will have to do something. And no, Disney will not base decisions on Coronavirus. That is a temporary problem.

 

[jarestel]

Accept that sales are not doing well.

It's funny how two people can watch the same thing and come away with different impressions. I remember Pete Werner saying on multiple occasions that it's too early yet to make any definitive judgements on how well RR is selling but by June we may have some clearer indications. At this point everyone is reading the tea leaves and pretty much seeing what they want to see.

 

[Drewferin]

My point is simply: Covid 19 could be the scapegoat Disney needs to remove the resale restrictions. They blame the virus and move on like it wasnt their fault to begin with...

I agree this is most likely a short term problem (3 to 6 months) but that amount of time can really hurt the financial statements of Disney. When in financial distress companies look for creative ideas that dont cost them any money to bring in new sales.

 

[EYL]

Just a question of curiosity... Doesn't the language in RIV's POS that indicates that they can remove the restrictions at any time also mean that they can add it back as well? I will say that the restrictions alone are what turns me off about Riviera. But even if they remove it, can I trust Disney to keep it off?

 

[TexasChick123]

I don’t see Disney making any changes to DVC because of coronavirus. It is temporary. Disney is not going to make adjustments that would have a long lasting impact due to a short term issue.

Sadly, I agree. I think those restrictions are here to stay. The sooner we accept them and move on, the happier we’ll be. I don’t like them either, but this is a long term play. I wish they’d remove them, but I don’t have any hope of that happening now. If you adopt this attitude, then if they do remove them, you’ll be both shocked and happy rather than angry and disappointed if they don’t.

Accept that sales are not doing well. If you watched the podcast the other day, you would see that Pete and the others were talking about how at the current rate of sales that it would take 7-8 years to sell out. I can assure you that Disney does not want to have RR on the market that long. It will interfere with Reflections. If sales don’t pick up soon, I think Disney will have to do something. And no, Disney will not base decisions on Coronavirus. That is a temporary problem.

The resort has already sold over 16% of its points in the first 8 months of sales. The majority of those sales happened before the resort was open. The math doesn’t make sense saying it’ll take 7-8 years to sell out. My math is 4 years of it continued on at that pace. None of us knows what will happen now that the resort is open. Even if the sales are absolutely amazing in February, a stock market crash or boom will affect the sales in the following months. Everyone needs to let Disney worry about how the resort is selling. Who cares other than just curiosity? I live to look at the numbers and am so appreciative of those who are tracking it, but it doesn’t really affect me. I’m not the one holding all those points, Disney is.

 

[Sandisw]

Accept that sales are not doing well. If you watched the podcast the other day, you would see that Pete and the others were talking about how at the current rate of sales that it would take 7-8 years to sell out. I can assure you that Disney does not want to have RR on the market that long. It will interfere with Reflections. If sales don’t pick up soon, I think Disney will have to do something. And no, Disney will not base decisions on Coronavirus. That is a temporary problem.

I disagree that sales are not doing well, My review of them leads me to determine they are just fine right now.

It May be a different opinion than what you watched, but that is all an opinion as well. . First 10 months compared to other resorts like VGF, CCV and I believe PVB are competitive. Given how different the product is, it’s holding its own,

 

[mustinjourney]

Accept that sales are not doing well. If you watched the podcast the other day, you would see that Pete and the others were talking about how at the current rate of sales that it would take 7-8 years to sell out. I can assure you that Disney does not want to have RR on the market that long. It will interfere with Reflections. If sales don’t pick up soon, I think Disney will have to do something. And no, Disney will not base decisions on Coronavirus. That is a temporary problem.

I have a feeling that RIV show was recorded several weeks ago, so that might be why your numbers are artificially low. I could be wrong -- but I think they also estimated that there were like 8 million points, when the figures I'm reading show about 6.7 million.


Latest numbers are showing fairly strong sales once the resort opened.

Boosted by its strong sales in January, Riviera has now sold 1,080,166 points, about 16% of the resort’s 6.7 million total points. Its average during its first 10 months of sales of 108,017 points is more than the initial 10-month averages for the Grand Floridian (106,570-point average), Disney's Polynesian Villas & Bungalows (76,909-point average), and Copper Creek Villas & Cabins (62,267-point average).

https://dvcnews.com/index.php/dvc-p...4867/4695-direct-sales-strong-in-january-2020