The possible trust?

[SL6827]

How does a DVC trust benefit Disney moreso than the current way to purchase?

 

[BaybeeYoda]

Not sure how to answer your question but a trust would avoid probate in Florida. A trust would benefit your heirs, and not affect Disney either way.

 

[The Jackal]

It allows them to group numerous resorts getting you 11 month priority at multiple resorts. I don’t see it going well. Let’s say there was 1 million points from AUL, 2 million from RIV, 1.5 million from HHI. Odds are the RIV points would go faster than the rest, since it’s on theme park property. Once those are gone you’ll have to wait till 7 months to try to get RiV or other on site properties.

 

[SL6827]

I was just thinking about why Disney would want to go this route?

 

[tjkraz]

It allows them to group numerous resorts getting you 11 month priority at multiple resorts. I don’t see it going well. Let’s say there was 1 million points from AUL, 2 million from RIV, 1.5 million from HHI. Odds are the RIV points would go faster than the rest, since it’s on theme park property. Once those are gone you’ll have to wait till 7 months to try to get RiV or other on site properties.

It doesn't change the overall makeup of rooms available with DVC. It really just shuffles the deck in terms of priority booking.Today, members seem generally pleased with how they are able to use their points. We can speak derisively of the off-site locations but Aulani is only about 10% of all DVC points and HHI + Vero are less than 5% combined. The near-park destinations are growing via Grand Floridian, Disneyland Hotel, Poly and FTW cabins.

In terms of booking success, I think it probably goes something like this:

1) Deeded owners will have the greatest chance of securing what they want at 11 months, but only for one resort
2) Trust owners have next greatest chance for success at 11 mos, for the multiple resorts included in the Trust
3) Then you (presumably) have both groups competing for whatever remains at 7 months

The trust would add both points and owners in similar proportions. It's not throwing the entire system on out whack. It's really a question of whether you prefer the security of booking one resort with less competition or access to multiple resorts, admittedly with greater competition for the absolute highest-demand accommodations.

I'm giving DVC the benefit of the doubt in assuming they won't deliberately set the Trust up to fail. In your hypothetical above, 2.5M of the 4.5M points put in the trust are from non-park destinations. I don't see that happening.

 

[Chuck S]

Well, one way is that they could open new resorts within the trust, and remove older resorts. And while the trust could be limited in time, it likely would be perpetual, and there are some people that think a timeshare SHOULD be forever, Personally, I like that DVC ownhership has an end date, and I don't have to worry abopout future heirs trying to sell it, or make payments forever after I'm gone.

Another way it could benefit Disney is that they wouldn't have to do as much bookkeeping, the dues and taxes could be uniform throughout the trust, since you wouldn't own as specific resort.

If they do go with a trust, I don;t see how they could apply it to the already existing resorts,

 

[tjkraz]

I was just thinking about why Disney would want to go this route?

It's probably a simpler product to market. Right now, DVC has to promote multiple Home resorts, all with their own cost, ending date and dues. It's a lot of information for buyers to pour over. The Trust would be a single product with access to multiple resorts.

I think it also positions them to better deal with the expiring contracts as 2042 grows closer. Values will inevitably decline and people in greater numbers will probably start abandoning contracts. Those contracts (and the associated availability) could perhaps be rolled into the trust. And when it comes time to re-sell resorts like Vero and Hilton Head, it's much easier to make them part of the trust than to find 10K+ owners who are willing to make them a Home resort.

 

[Chuck S]

It could also be that Disney is trying to figure out what to do in 2042, when several resorts will be in need of refurbishment and whether to continue operating them as individual resort, especially assuming they would need refurbishments to bring them into the norm for whatever technologies are available at the time, and OKW would liikely need to add elevators, if they do a major refurbishment.

 

[Sandisw]

It just lets them transition from a component site plan with deeded ownership to a non specific plan that people into for access to multiple resorts.

I think it allows them to set up new resorts going forward to be in more control of them, as well as continue to have restrictions when someone sells it on the resale market.

They may have found, over the past few years, when they have had multiple resorts for sale, that the total of all sales seems to be doing much better than individual resorts.

Lumping them together allows a consistent price and incentives and might entice buyers so they have more than one resort to access early.

I certainly can see me considering it if I can get Poly tower and RIV with the same 11 month window, as well as VDH, CFW and AUL, as a bonus.

 

[SL6827]

It just lets them transition from a component site plan with deeded ownership to a non specific plan that people into for access to multiple resorts.

I think it allows them to set up new resorts going forward to be in more control of them, as well as continue to have restrictions when someone sells it on the resale market.

They may have found, over the past few years, when they have had multiple resorts for sale, that the total of all sales seems to be doing much better than individual resorts.

Lumping them together allows a consistent price and incentives and might entice buyers so they have more than one resort to access early.

I certainly can see me considering it if I can get Poly tower and RIV with the same 11 month window, as well as VDH, CFW and AUL, as a bonus.

So it could make some resorts even more competitive to book than they are now?

 

[Sandisw]

So it could make some resorts even more competitive to book than they are now?

While I am still learning about how this works, I think that they will start with units that are added to the resorts to be sold as part of a trust, and those units will be different than the current ones that have already been declared.

But, yes, eventually, if they transition to not selling a deeded ownership into any resort, then evyeryone gets equal access to the rooms that match the units and points in the trust.

It is still a big unknown of how this will be set up with the current structure.

 

[tom1944]

Will there be a resale market for people who would want to sell their ownership in the trust?

If there is what limitations would the resale owner face?

 

[Sandisw]

Will there be a resale market for people who would want to sell their ownership in the trust?

If there is what limitations would the resale owner face?

We have no idea what restrictions they will put on it when sold…but, the documents that we have seen seem to indicate they are already thinking about it…

if I had to speculate…and it’s just that…I can see it being that when buying on resale market, you have no home resort booking advantage…just get to book all the resorts at 7 months or less.

Basically, they can set the POS for the trust with any rules it wants because people are no longer buying an ownership into any resort which means the rules of the resort POS for sale don’t apply…

 

[tom1944]

We have no idea what restrictions they will put on it when sold…but, the documents that we have seen seem to indicate they are already thinking about it…

if I had to speculate…and it’s just that…I can see it being that when buying on resale market, you have no home resort booking advantage…just get to book all the resorts at 7 months or less.

Basically, they can set the POS for the trust with any rules it wants because people are no longer buying an ownership into any resort which means the rules of the resort POS for sale don’t apply…

I think I could work with that stipulation of having a 7 month window if the trust included Riviera, Poly2, the Cabins and new resorts in the future.

I would not buy a large contract but enough exposure to have an opportunity to stay at those resorts periodically as part of a longer stay with my deeded points

 

[SL6827]

And Disney would pad their wallets with a big price increase?

 

[tom1944]

And Disney would pad their wallets with a big price increase?

I don’t have to buy.

 

[Sandisw]

And Disney would pad their wallets with a big price increase?

Not really….they will only be able to sell at a certain price before they lose sales.

But, I could certainly see them starting at the $230 to $250 base price, and then add incentives..basically, sell at the Poly tower or VDH price, but through in the others as part of it.

However, they are a business and get to decide at what level the market will support this new ve true.

 

[dioxide45]

The biggest benefit is the ability to sell out resorts that are selling slow. Mainly Aulani. They could declare the remaining Aulani units and start selling those as trust points in WDW with the dream that they can be used to book multiple resorts at 11 months and any resort at 7 months. I could see them putting a big resale restriction that perhaps resale trust points can't be used for 7 month reservations.

 

[DonMacGregor]

Looks like the new cabins will be at least partially in the trust (as well as having resale restrictions).

https://www.disboards.com/threads/ft-wilderness-cabins-becoming-dvc.3916819/post-65230641

 

[dioxide45]

Looks like the new cabins will be at least partially in the trust (as well as having resale restrictions).

https://www.disboards.com/threads/ft-wilderness-cabins-becoming-dvc.3916819/post-65230641

So it seems that the Palmetto Trust Association Inc was simply setup to facilitate the Cabins at Fort Wilderness and isn't some type of multi site trust timeshare program. Not that they couldn't add other units into said trust, but reading through the documentation, it seems that Palmetto is just for the Cabins and nothing more. Perhaps given that the cabins may be considered more like manufactured or modular homes requires or warrants a different type of arrangement than a built out DVC resort. So Palmetto in relation to a multisite timeshare trust was a big nothing-burger IMO.