Rumor: Disney Vacation Club Raising Sold-Out Resort Prices

[SecondEventuality]

High-pressure sales have never worked on me, so while I think the iron is hot right now for resale, I'm not biting. It looks like things have worked out for current DVC owners for a long while and resale has reaped so much, but it's clear they are shifting things for a reason and I don't want to be holding my bag 10-15 years from now with a long contract. Not a gamble I'm willing to take, long term. I'm not putting my hands near it, even if it means losing out on a great deal by getting in now while I still can. Nope, running the other way and will watch that great deal pass by, waving the entire time. We are willing to pay more for a shorter contract, lowering our risk.

 

[Yinn]

It's so interesting to see the perspectives on this. When I researched prior to purchasing, I realized that it's a snowball. Those who bought 10 years ago - regardless of when 10 years ago was; got a deal. Even if it was direct. Some examples, BLT was $120 Direct and is averaging $149/pt resale as of Sept 2019. AKV: was $112 Direct vs $114 Resale as of Sept 2019. Sure there's inflation and time value of money, etc. But even with that you have to admit as an owner, it's not a bad deal. It's basically a 2.5% compounded annually increase - that's more than inflation in that timeframe and even beats out a CD rate in that timeframe. So if you were a 10 year buyer/holder then sold, it would have only cost annual fees to pay for your 10 years of vacation.

I just bought Poly at $128/pt. While I plan on using it and not considering it as an investment, I wouldn't be too upset if this causes my resale value to climb. If in 10 years I get sick of Disney, want a new resort, or wahtever it is and want to sell it for $182/point; I'd only have to sell it for $160/pt for a 2.5% return - or slightly better than a CD rate. Raising prices along the way just helps me out.

Of course we can say - well at some point DVC isn't worth it. But that's only true if Disney raises DVC without raising it's cash rooms. The dollar amount stinks, but think about inflation. It's only expensive if it's outpacing everything else. If everything goes up by 10%, it'll normalize. And if everything goes up 10% and Riviera stays at it's current, it'll look like a deal. Sure it's demand levers primarily targetted at protecting Disney; but it has some very real effects on current and future owners as well. These are the things that prevent your purchase from being on a TUG board being listed for $1.

 

[anomamatt]

I hadn't seen it even taken either, but just last week on the ROFR thread someone had theirs taken. Then another person mentioned how they had one taken recently... So that's two! I was pretty surprised at that.

Interesting, I have not paid attention to it recently. Given they have inside info, if they are ever going to ROFR VGC, it would be smart to buy back ROFRs immediately prior to a $/point increase (then hold and resell after the increase).

Given all the things that resourceful disboarders track, I'm sure someone has looked at whether there is an ROFR spike (across all resorts) prior to direct price increases. I would bet ($1) that there would be.

 

[MinnieInVA]

I'm always amused at the VGC direct price. I've been on the waitlist for 2 years now and they never have points. (I want a 25 point contract, which is why I'm willing to go direct). I've been on the waitlist for any UY and 25 points. My guide calls me 1-2 a quarter to tell me I'm still on the list (and tries to get me to buy something else, which sometimes I do, haha). But they don't ROFR it (ever) and they don't sell contracts but maybe 1 every few months. Why have a direct price at all?

Disney ROFR'ed one of my VGC attempts last month, and they grabbed a bunch more. I've since had another VGC pass ROFR, so maybe they're done grabbing for now?

 

[Brianstl]

Disney ROFR'ed one of my VGC attempts last month, and they grabbed a bunch more. I've since had another VGC pass ROFR, so maybe they're done grabbing for now?

And if I recall correctly, none of them were "cheap" price per point resale contracts.

 

[VianSa]

Received this information directly from Pete a short time ago...

Rumor: Disney Vacation Club Raising Sold-Out Resort Prices

Just confirmed with my rep, prices increase starting today. He said if you buy and place a deposit in the next 4 days then they will honour the old prices. That being said, we purchased our first direct contract today!!

 

[Brianstl]

Just confirmed with my rep, prices increase starting today. He said if you buy and place a deposit in the next 4 days then they will honour the old prices. That being said, we purchased our first direct contract today!!

What were the price increases?

 

[Yinn]

Just confirmed with my rep, prices increase starting today. He said if you buy and place a deposit in the next 4 days then they will honour the old prices. That being said, we purchased our first direct contract today!!

What did you buy? Congrats!

 

[SecondEventuality]

So that’s 2x in one year?

the prices are updated in the blog post, FYI

 

[pkrieger2287]

So that’s 2x in one year?

the prices are updated in the blog post, FYI

These are the prices we are hearing from most people at the moment. Being told they don't go into effect until October 31st, however. Still nothing confirmed by Disney or DVC in writing.

 

[pkrieger2287]

Just confirmed with my rep, prices increase starting today. He said if you buy and place a deposit in the next 4 days then they will honour the old prices. That being said, we purchased our first direct contract today!!

Do you have any more info on the prices? Can you call them back? Lol

 

[SecondEventuality]

Before the 1st increase at the beginning of the year (Jan 16, 2019), Direct price for BCV was: $185. Starting 10/31, will be $235.

Wow.

 

[SL6827]

So is this the norm for Disney, raising the prices twice in one year or has it just been like once a year before?

 

[_auroraborealis_]

So, like, the $50pp hysteria was clickbait. Gotcha.

 

[pkrieger2287]

So is this the norm for Disney, raising the prices twice in one year or has it just been like once a year before?

I looked through some history a little while ago and to the best of my knowledge could only find it being done once a year previously. So yes, this would be the first time it has occurred twice in a calendar year.

 

[SecondEventuality]

I'm happy for everyone that was able to buy/get in during the "golden age!" That's awesome!!!!

 

[ELMC]

I think they’re banking on the resale values increasing to a level comparable with Riviera. In fact, they must be, because DVD is not going to be exercising many ROFR’s if they need to resell it at an already insane direct price per point plus another $50 on top of it. It’s a big gamble. This could actually make resale values FALL if the ROFR monkey is put out to pasture.

Great point. This is a big gamble. If resale prices are established in relation to direct prices then this should cause resale prices to rise, thus narrowing the price gap between restricted resales and blue card direct at the newer resorts. This reduces the competition for direct and makes sales easier. HOWEVER, if resale prices are more closely tied to rack rates, then Disney will have to raise rack rates as well to justify higher resale prices to achieve this effect. Rack rates are already at an all-time high and also, good luck raising rack rates in a down economy (should that happen). All that said...this is all just theory. The resale market prices are determined by supply and demand. If higher prices lead to greater supply or if the demand is not there at higher prices, then resale prices will stagnate or even fall as you suggest. So basically what I'm saying is...who knows what effect this will have.

But I will say this...what they are doing is genius. They don't have strong inventory at any of the "sold out" resorts, so why not price them at $500 a point? It doesn't matter, they're not really selling them in any significant quantity. And as it has been pointed out by others, higher prices at legacy resorts serve as an amazing point of comparison for a very expensive $188 Riviera point. Now people are changing their tune and saying that Riviera at $188 has gone from expensive to a bargain. Genius. But not everyone is falling for it. The gamesmanship is very real, and I'm not playing.

 

[Jenniebee]

I'm happy for everyone that was able to buy/get in during the "golden age!" That's awesome!!!!

Seriously! I am just still kicking myself I did not buy in January before the resale restrictions went in. I am in ROFR now and praying praying praying it goes through before another "change" to anything.

They sure did not give a lot of lead time on this one.

 

[sethschroeder]

Ask where you are on the list. I’ve been on Green Bay Packers waiting list for 23 years. At this turnover rate it’ll be another 25-35 years.

Go Pack Go

Season ticket holder for the Packers and Brewers here

 

[VianSa]

What did you buy? Congrats!

Bought at AKL, September use year same as our resale contract.