Riviera Sales and the Effect on Resale Restrictions

[pkrieger2287]

Today over on DVC Fan, our numbers guru Peter Scheidle takes a look at the sales data of Disney’s Riviera Resort and the effect resale restrictions may be having on the resort.

https://dvcfan.com/2020/01/21/riviera-sales-and-the-effect-on-resale-restrictions/

 

[Sandisw]

Very interesting. I think that until it is closer to the time Reflections comes on board and if the sales for RIV don’t meet with what they want, you may see something in a change of how they market Reflections and deal with RIV.

I still think they will go the route of allowing resale to do some direct purchases to make resale points eligible. But JMO.

 

[Matty B13]

Do we know what the percentage of points sold so far, compared to the total points at the resort?

 

[Minniesgal]

I could see them stopping selling classic resorts direct before they remove the restrictions.

 

[Sandisw]

I think they have sold about 13 to 15%.

 

[EYL]

I don't mean to sidetrack this thread, but how does DVC determine the total number of points available when a new resort is built? Just wondering if there's a formula or if it's out of the air...

 

[crvetter]

I don't mean to sidetrack this thread, but how does DVC determine the total number of points available when a new resort is built? Just wondering if there's a formula or if it's out of the air...

They essentially make it out of thin air in the sense that it is whatever DVC wants the points per night per room to be. So basically DVC has a "base year" calendar, which contains the maximum number of weekends, etc. They then set the point cost per night per room, then determine the entire year cost for each room type (lock off two bedrooms count as two bedrooms, not the studio or 1 bedroom). Then they multiply by the number of rooms and add up the total cost of the resort, then finally they are legally only allowed to sell 51 of the 52 weeks out of the year (thus they take 51/52 of the total cost and register that with the state of Florida as the number of points they will sell).

 

[Erik Rhoda]

I could see them stopping selling classic resorts direct before they remove the restrictions.

I don't think they would ever do that. In order to protect the resale price they ROFR the contracts if need be. If they buy them they want to resell them. Also If you look at the chart of sales just for SSR (linked by OP) they are selling a significant number of classic resort points per month.