Tiered Benefits

[ftballfan7]

The first of the year has come and gone, and the buzz on the tiered memberships/benefits has died down. Is there still buzz being heard from those in the know, or has it gone away?

 

[Dizny Dad]

As of this morning:

Disney Vacation Club is set to unveil a Direct Purchase Benefit program in which some destinations will be withheld from those purchasing points on the secondary market.

Under the new program terms, only points purchased directly through Disney Vacation Club sales agents will be eligible for use toward the Disney Collection, Adventurer Collection and Concierge Collection. These ancillary programs feature destinations such as Disney Cruise Line, Adventures by Disney, the Disneyland Hotel and Paradise Pier in Anaheim, Disney's Polynesian and Grand Floridian resorts at Walt Disney World, international hotels at Disneyland Paris, Tokyo Disneyland and Hong Kong Disneyland and more.

In order for resale contract purchases to be eligible for all Member Getaways, the purchase closing must occur by March 20, 2011. As such, all prior resale purchases will also remain eligible for use toward the full slate of Disney Vacation Club destinations.

Resale point purchases which close after March 20 will be ineligible for use toward the Disney, Adventurer and Concierge Collections. Such resale contracts will be valid only for use at the 11 Disney Vacation Club resorts as well as the World Passport Collection which features trading opportunities through RCI and the Buena Vista Trading Company.

Point origination will be tracked down to the contract level. A DVC member with points acquired via a combination of direct and reseller purchases (acquired after 3/20/11) will only be able to use the direct purchase points toward the Disney, Adventurer and Concierge Collection destinations.

All owners will remain subject to the same booking guidelines for Disney Vacation Club resorts. Reservations can be secured 11 months from arrival at one's Home resort and 7 months from arrival at non-Home resorts regardless of whether the points were purchased directly or via a reseller.

 

[jimmytammy]

Interesting

I have a friend interested in buying DVC and this will be info to share with him.

 

[dianeschlicht]

Interesting

I have a friend interested in buying DVC and this will be info to share with him.

Yes, I have friends this would affect also, so I'll be advising them to purchase direct as well. Unfortunately, I HOPE they have OKW points available, because that's where my friends want to buy.

 

[cseca]

this sucks...

I was hoping for tiered benefits instead of this resale limitation junk...
Well, I guess this seals it... chances of future addons have gone poof!

 

[locodemickey]

so if we were thinking of selling off one of our contracts, we'd better do it now or it looks like it will be very hard to sell?

 

[BEASLYBOO]

Wow! This penalizes everyone in one form or another. People with huge contracts who may want to downsize in the future will have a challenge selling those points. As far as resale purchases, it wouldn't change my decision to purchase since my whole intent is to use them strictly at the Orlando DVC resorts. When I go to France I have no interest in staying at EURO Disney, nor do I find it cost effective to use points for cruising. People will have to weigh the cost of buying direct against how they plan to use their points.

Interestingly it mentions 11 resorts, I wonder if it will also prohibit stays at the 12th, 13th when they come along?

 

[laura-k]

Wow!
Interestingly it mentions 11 resorts, I wonder if it will also prohibit stays at the 12th, 13th when they come along?

This is a really good question also
I was just watching for a good match on the resale market for a add on and am very motivated to move when i find it ,but I really wonder what this means in the future if i want to downsize ??
Seems like resale prices would drop ??

 

[epd0407]

My opinion.... They just screwed all the people who purchased direct. Seems like a Bonehead Move....

 

[RobDoc]

The changes announced today are NOT part of the Tiered Loyatly Program mentioned by DVC President Jim Lewis at the DVC Annual Meeting last month. He stated that DVC was getting ready to roll out a Tiered Loyalty Program that would include direct purchase as well as member referrals when asked about whether DVC had ever consider such a program.

No details of such a program have been released (either at the meeting or as of today) but todays announcement said nothing about a Loyalty Program.

 

[myxdvz]

My opinion.... They just screwed all the people who purchased direct. Seems like a Bonehead Move....

How is it screwing those who purchase direct? I can see how it screws those who got from the resale market but can't see the issue with direct buyers.

If I remember correctly, when I purchased, it was very clear that DVC says to NOT buy to re-sell, or because of Hawaii... so there was never a promise that status quo will continue as is.

Another thread was asking why people will buy direct vs resale. This seems to be one very good reason now.

 

[Maistre Gracey]

How is it screwing those who purchase direct? I can see how it screws those who got from the resale market but can't see the issue with direct

The future resale value of my direct purchases just went down the tubes.

MG

 

[myxdvz]

The future resale value of my direct purchases just went down the tubes.

MG

That assumes people buy to resell. I remember specifically in the contract that one shouldn't purchase a DVC member for future resale value, or because a property is being built in Hawaii.

It might affect SOME people who ignored that part of the contract and bought to resell, but I don't recall DVC promising that this contract will have a value over purchasing a vacation at <property> for 50 years.

Any other attributions people had on their contract is their own interpretation. It was never sold as an investment.

 

[Maistre Gracey]

That assumes people buy to resell.

Not really. I have been buying contracts since 2002 (I have roughly 19). I never intend to sell when I purchase, but as new resorts are introduced and other factors change, I enjoyed the freedom of selling.

I remember specifically in the contract that one shouldn't purchase a DVC member for future resale value, or because a property is being built in Hawaii.

All true, but that doesn't change my initial comment. The change still affects the direct buyers because resale has indeed gone down. I didn't "plan" on it staying at a certain level, but non the less this new policy has caused a decrease in value.

It might affect SOME people who ignored that part of the contract and bought to resell, but I don't recall DVC promising that this contract will have a value over purchasing a vacation at <property> for 50 years.

See above. It does effect every direct purchaser. That said, it would have been foolish to purchase if one was counting on a certain retained value.

Any other attributions people had on their contract is their own interpretation. It was never sold as an investment.

Again, see above. It's not an investment but the new policy still makes it worth less.

MG

 

[epd0407]

Not really. I have been buying contracts since 2002 (I have roughly 19). I never intend to sell when I purchase, but as new resorts are introduced and other factors change, I enjoyed the freedom of selling.


All true, but that doesn't change my initial comment. The change still affects the direct buyers because resale has indeed gone down. I didn't "plan" on it staying at a certain level, but non the less this new policy has caused a decrease in value.


See above. It does effect every direct purchaser. That said, it would have been foolish to purchase if one was counting on a certain retained value.


Again, see above. It's not an investment but the new policy still makes it worth less.

MG

I cant really answer it any better. One thing I did look at when looking into DVC WAS the resale. Im a realist and am quite certain that in 20 or 30 years Disney may very well be the last place I want to visit. I took comfort in knowing that of all time shares Disney has retained its value much better than others.

To say people dont buy as an investment I believe is not one the smartest comments I have heard. Any financial deal you make is an investment all be it one you may or MAY NOT make money on. I made my purchase with the intent on saving money in the long run then dump with minimal loss.

To end, I would rather pay 10k for an item that is now worth 50% on the resale market than pay Disneys 120 a point and make 50 back. Resale just became an even better choice "as its gotten even cheaper"

I really feel bad for young families who dont have a lot of money like my best friend who bought at BLT in August whos value has just plummeted.

 

[bookwormde]

Interesting,

Since these are truly ancilary services offer by Disney not part of the core DVC structure it likely allows them to probably skirt the regualtions since they can claim that is was not DVC initiated.

For myself I never thoght there was value in these ancilary programs (less expesive on cash and that they diverted a lot of DVC inventory to CRO so it made it harder to get reservation, especially since CRO has 11 month prioity if these points are used early like for cruises.

Quite honestly most people who have done enough research to be comfortable with purchasing resale already know that these offering are not a value, and have by purchasing resale have shown that they are at some level value concious, so I suspect the impact will be minimal.

I think is may well have more of a negative effect on direct sales since it may perceptually damage the brand by making DVC look like all the other timeshares whose values have gone almost to $0.

bookwormde

 

[epd0407]

I think is may well have more of a negative effect on direct sales since it may perceptually damage the brand by making DVC look like all the other timeshares whose values have gone almost to $0.

bookwormde

How about the perception that Disney changes contracts in the middle at their whim?

 

[culli]

How about the perception that Disney changes contracts in the middle at their whim?

What contract did they change in the middle, and what changes did they make? Unless you have a different contract then I have from Disney.

All the benefits they took away are a bad use of points anyway. However, I do think it opens the door for more distinction between resale and direct.

 

[epd0407]

What contract did they change in the middle, and what changes did they make? Unless you have a different contract then I have from Disney.

All the benefits they took away are a bad use of points anyway. However, I do think it opens the door for more distinction between resale and direct.

I didnt say they took anything away
I was just prompting discussion. I will say though from your own words they "took away benefits" regardless of weather you thought they were a bad use of points something that was there will be gone when you sell your contract.

 

[culli]

I didnt say they took anything away
I was just prompting discussion. I will say though from your own words they "took away benefits" regardless of weather you thought they were a bad use of points something that was there will be gone when you sell your contract.

1st I didn't buy to sell. However, although unlikely benefits could also be greater. I only bought for what was in the contract and not benefits as I knew they would change. Usually for the worse benefits change. I hope resale goes down further and further, I can then buy much more pts at a reasonable price and reduce my overall cost to stay at Disney.

I actually see this change as just a way for the guides to scare people into steering away from resale. Anyone who uses pts for what is being changed is not using their pts wisely and probably didn't buy resale anyway.