What else can Disney do to discourage buying Resale?

[Dean]

It seems Disney really wants to discourage buying resale for obvious reasons, however, one of the perks of DVC is that it somewhat holds it’s value. If it becomes too difficult to resell a contract will it also hurt direct sales? Would Disney ever consider further restrictions on resale contracts such as eliminating the 11month window for home resort, or only allowing use of your points at your home resort?

There are lots of things they could do, as noted, the change in reservation window directly is not one of them. However, they could institute a VIP system that would give waitlist priority, add fees for banking/borrowing and waive them for qualified points, etc. There isn't ever going to be enough they can do by simply adding to those who are qualified, they'd have to hurt those that aren't more to differentiate further. IMO the resale value of this equation is far overestimated. They don't want you to be able to sell, all they want is to sell retail as high as possible. In some cases they may go hand in hand but don't have to. Many other timeshares sell quite well when you can buy resale for free. I'm helping a friend as we speak acquire more bluegreen points where the party that's giving up the points paid $15K and paid off a loan just last year. He's giving them away AND paying for the transfer fee.

 

[Dean]

Legally, they can restrict pre-4/16, or all resale, with no notice.

Legally they could restrict anyone they want that didn't buy retail but I don't think they will.

 

[_auroraborealis_]

Legally they could restrict anyone they want that didn't buy retail but I don't think they will.

Will they? Probably not. But at the same time, speculation of what they might do in the future needs to take that into account. Disney COULD add a benefit and restrict it on resale regardless of date of deed.

 

[Jason@dvcstore]

It seems Disney really wants to discourage buying resale for obvious reasons, however, one of the perks of DVC is that it somewhat holds it’s value. If it becomes too difficult to resell a contract will it also hurt direct sales? Would Disney ever consider further restrictions on resale contracts such as eliminating the 11month window for home resort, or only allowing use of your points at your home resort?

If Disney figures out a way to keep 100% of its owners it could eliminate the resale market.

Keep your ownership for 5 years get this.....
Keep your ownership for 10 years get this.....
Keep your ownership for 15 years get this.....

 

[Ben E N]

Think I should start a new thread titled "Why would Disney want to eliminate the resale market, or why would they would they want to keep it strong and healthy?"

I personally can think of a lot more reasons why it benefits Disney than hurts them, but would love to hear feedback from others. I feel like this thread jumped right into the "resale is bad for Disney" camp without stopping to think about why they would want to do it.

 

[Matty B13]

Think I should start a new thread titled "Why would Disney want to eliminate the resale market, or why would they would they want to keep it strong and healthy?"

I personally can think of a lot more reasons why it benefits Disney than hurts them, but would love to hear feedback from others. I feel like this thread jumped right into the "resale is bad for Disney" camp without stopping to think about why they would want to do it.

Yeah, I'm one of the people who would not have bought into DVC if it wasn't for the strong resale market. My parents were completely horrified by the very mention of owning a timeshare because of all the people they knew that had lost a lot of money owning timeshares. They would never buy one. It took a lot of research on the current value of DVC to convince me that it was just throwing my money away.

Also, it doesn't seem like good business to be hurting your "owners". I'm not sure what the percentage of "owners" are resale, but I'm sure it is growing with the internet and now that some resorts are 25 years into ownership. I like Jason@dvcstore's idea of some kinda loyalty plan, but it would have to be guaranteed benefits to own direct for those years.

 

[Dean]

Think I should start a new thread titled "Why would Disney want to eliminate the resale market, or why would they would they want to keep it strong and healthy?"

I personally can think of a lot more reasons why it benefits Disney than hurts them, but would love to hear feedback from others. I feel like this thread jumped right into the "resale is bad for Disney" camp without stopping to think about why they would want to do it.

The reality is they don't want you to be able to sell but to think you can. They want the perception of a resale market without actually having one. Obviously there's a balance.

 

[Ben E N]

The reality is they don't want you to be able to sell but to think you can. They want the perception of a resale market without actually having one. Obviously there's a balance.

Ok. With two responses within an hour, I will take that as a sign that this deserves its own thread. I will start one and put my thoughts into it.

 

[Dean]

Ok. With two responses within an hour, I will take that as a sign that this deserves its own thread. I will start one and put my thoughts into it.

If you search you should find other threads on the subject as it’s been discussed a number of times.

 

[Ben E N]

If you search you should find other threads on the subject as it’s been discussed a number of times.

Eh. Oh well. Didn't hurt to throw the thoughts out there, as I felt this thread jumped right into assuming they wanted to without thinking about why.

 

[Dean]

Eh. Oh well. Didn't hurt to throw the thoughts out there, as I felt this thread jumped right into assuming they wanted to without thinking about why.

It's usually predictably down the lines of those that think what's in it for them and those of us that take a more company oriented view.

 

[Ben E N]

If Disney figures out a way to keep 100% of its owners it could eliminate the resale market.

Keep your ownership for 5 years get this.....
Keep your ownership for 10 years get this.....
Keep your ownership for 15 years get this.....

The more I think about this, the more I think it would be the best way to go for Disney. People who are selling generally fall into one of three categories. They either have to sell due to finances, and there is nothing you can really do to stop them. Others just tire of Disney and want to try something else with their money, or are selling because they can make a profit off of their purchase. Disney can do something to try to hold on to those people. A private dinner and party at the California Grill for all 10th year owners, direct or resale, may be enough to get people to hold on to their points just long enough to do that. Then at 15 years, they get a special tour with the animals at AK, and so on. It couldn't be anything way too pricy, but also has to be enough to get people to hold on to their points.
Then the less people selling, the higher the resale prices would be. This would drive more traffic back to direct, which would help to pay for the anniversary incentives.

 

[crisi]

I wouldn't make a special trip to Orlando for a ten year anniversary party. My vacation time and airfare dollars are far too valuable for any sort of "yea, rah rah" event like that. I don't think I'd go if it overlapped our planned trip.

I suspect DVCers who sell fall primarily into two camps - those whose kids have outgrown Disney and those who can't afford it any longer. And I'm willing to bet that as college hits, the Venn diagram on those two groups does a lot of overlapping. Neither group is likely to be enticed to stay. The people who would go to a ten year anniversary event are the type of people who are keeping their DVC.