Will DVC Ever Offer to Upgrade Resale to Direct

[manayunkmoose]

I am new to DVC but I do not understand why Disney does not offer to upgrade resale points purchased to direct points. It seems like it would not cost them anything and be a source of income. Using Saratoga as example. There is no way I am going to pay the 60ish dolor a point difference to by direct, it is just not worth it. So Disney never going to see that money. However, tell me I can upgrade my points for $10 to $25 a point that is something I most likely would take advantage of.
Seems like they are leaving money on the table.

Moose McAllister

 

[Doublea]

That would be them giving an incentive to buying resale. I can't see that happening.

 

[anomamatt]

If they ever do, I would be VERY surprised if the upgrade cost was less than the difference in price between resale and direct. I doubt it will ever save anyone money, because there is no way DVC will incentivize buying resale.

 

[jarestel]

Unless the "upgrade" price brought the total purchase price to where direct was, they would have no interest in annoying the vast majority of members who bought and paid direct prices. And then, there would be no advantage to buying resale. So it's not likely DVC will ever offer a discounted avenue to achieving direct status, there's just nothing in it for them.

 

[skippytx]

Curious what value you would be getting out of paying another 10 to 25 dollars a point for the "perks"?

 

[KAT4DISNEY]

I think it'll come when DVC feels they've fully tapped the restriction end. If they don't feel they can get any more out of that they'll start getting money from a model that allows people to make their non-qualified points fully qualified. It is industry standard, yes? Or at least common and DVC seems bound and determined to follow that model now.

 

[manayunkmoose]

Curious what value you would be getting out of paying another 10 to 25 dollars a point for the "perks"?

To me the only value would be the ability to use points at Riviera and Reflections or any new resort

 

[Katie L]

I absolutely think this is something they are considering for the long game. But definitely not $10 a point... somewhere between $25 and $50... is my guess.

 

[Maistre Gracey]

It wouldn’t make sense to do it less than the average difference between resale and direct.

 

[Fred M]

You never want your direct purchase DVC members feeling like they got a worse deal than resale purchase DVC members. At a minimum they would have to charge the difference between your particular resale contract and what the direct purchase price from Disney was back then. And then what? Do they adjust for inflation? Because a $40 per point difference back in 2007 is not $40 per point in today's dollars, it's $49.50 per point. Do they assess you a penalty for the interest Disney could have made had you paid them directly when you did your purchase? Finally, why would they because if you're that interested in being a direct purchase member, they can get you for $18,800!

I can see Disney offering an "upgrade" for resale purchasers.

 

[Doberge]

They'd undercut their own direct resales by offering a cheaper way to play.

 

[Brianstl]

I think they will someday offer an upgrade to resale through a direct purchase of an extension of the current contract. That extension will have the same resale restrictions as Riviera.

 

[disnikki08]

Maybe they could offer the upgrade and require that you purchase a certain number of points at a new resort in one transaction.

 

[Unlimited N2O]

I can see them offering the upgrade to someone who has held their resale for a lengthy period of time, say 10-15 years. It is a way to get those who would otherwise not stress having the direct benefits. The stipulation could also deter new buyers looking to get direct benefits on the cheap, as it would require a lengthy time investment

 

[Katie L]

To expand on my thoughts. Maybe not to make points fully qualified - but to allow booking at new resorts. I think that they want a piece of the resale market. I think the 'can not book at any resort other than the one bought' rule at Riviera is not tanking sales enough for them to rescind and I think their path forward - especially once there are more new resorts out there - is an upgrade path to booking all resorts. No, it's not going to be the same price as direct. It will give them a piece of the resale market without having to pay dues by ROFRing everything.

DVC is really about getting tens of thousands of people to cover the maintenance of their hotels and guarantee they (or whomever they rent to) will be there yearly for the next 50 years. The value prop for owners SHOULD just be nicer accommodations at a more reasonable price - but some people buy in on the 'club' touchy feely stuff and various other pixie dusted concepts.

 

[skier_pete]

I also believe they will do it eventually especially as there are more and more owners who are "stuck" at a single resort. But I agree the bridge price will likely be $30-50 a point, not $15.

 

[TexasChick123]

I definitely think they’ll do this. It’ll be pricey though. The people who will do it and feel that it’s worth it are those who’ve owned for a number of years and bought in at a lower price point. Example:

- bought restricted BLT at $145pp in 2019 when direct was $225pp
- current DVC price is now $250pp in 2024, for example
- offer to upgrade for $75pp plus some arbitrary admin fee (maybe $200)
- current BLT resale is going for $165pp in 2024

This is only a “deal” for those who bought resale years earlier. If you bought resale “today” in 2024, then it is the same as going direct, so why not buy direct and avoid all the resale headaches? That’s what I think may happen anyway.

 

[AvidDisReader]

On one of the other Discussion threads it has already been pointed out that the new POS on RIV does indeed have language that would allow Disney to convert a Resale contract to being same as Direct. As others have speculated, it probably will not be cheap.

 

[CanadaDisney05]

It wouldn’t make sense to do it less than the average difference between resale and direct.

They would have to charge less than the "average difference between resale and direct". If they didn't then there would be zero benefit to buying resale, and the program would fall apart.

IMO, it would work in Disney's favor to find a price point somewhere between resale and direct. This way, Disney does not have the cost (maintenance fees) and opportunity cost (using the funds elsewhere) of having to ROFR. They simply make an easy profit without any real investment.

 

[CanadaDisney05]

They'd undercut their own direct resales by offering a cheaper way to play.

It wouldn't matter. If Disney offered an "upgrade" at the time of purchase of a resale contract, its a win for Disney. Its basically free money. They don't have the cost the admin cost of selling sold out resorts, they don't have to pay maintenance fees on inventory of sold out resorts, and they don't have the opportunity cost of tying up their cash in inventory of sold out resorts.

People that want to buy the new resort have no choice on the resale market. Plus the draw for someone who is considering the active resort to buy an older sold out resort on the resale market loses its appeal if you have to pay an "upgrade fee".

IMO this is their long term plan. Marriott and other timeshare companies already basically do it.