Rumor: Disney Vacation Club Raising Sold-Out Resort Prices

[VianSa]

What were the price increases?

I only asked about AKL, the increase is $10/ point

 

[VianSa]

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

No sorry, only for AKL. I paid $176/point on a 100 point contract. Insane compared to the $78/point 220 point resale contract we picked up in 2017. But if you are ready to buy then that is what matters most, I say.

 

[Yinn]

Seems to be just about $10 across the hoard. That’s nowhere as bad as it seemed from the post

 

[Brianstl]

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.

I don't think Disney cares about resale prices. They don't view the resale market as a true competitor. They view people renting DVC points out as a competitor, but not the resale market itself a competitor. They view the direct prices at other WDW DVC resorts as their main competition to getting people to buy direct at Riviera.

 

[SecondEventuality]

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.

it's already having an effect on us...we aren't buying a BCV small contract because the value isn't there at $17 PP. There is a human being on the other side that isn't getting our money, buying their contract. I feel so disappointed - for me, for them!

And this is before the increase, that's TODAY, as we live and breathe.

given that prices have gone up 2x in the same year, which has never happened before, they restricted resale for Riv, they increased direct min to be 100 only, something has to be the works to squeeze resale.

Just my take as a potential new resale buyer deciding not to buy because the deal isn't there any longer and looks to be even worse come next week.

 

[sethschroeder]

But that's only true if Disney raises DVC without raising it's cash rooms. The dollar amount stinks, but think about inflation.

Nah because I think Disney in general is on the edge of losing people. It only works if people purchase it. If they ruin the WDW brand by making more people go every 3-5 years as opposed to every 1-2 years you will lose additional visitors who may choose to purchase DVC.

Think about it this way if you were evaluating what to do and see 3 increases in 18-ish months to tickets, food, and rooms/DVC then you add on top of it an economy rumored to be going in to a recession (or possibly even in a recession at the time) there is a much higher chance you completely pass on the idea.

Personally what Disney should be doing is allowing DVC members to add-on a ticket/dining plan package to their membership that has a buy-in and then yearly fee which is capped on rate increase. It would also only be active when staying on your own points (thus making it required that they all be direct and ones that you purchased).

$100/point upfront plus $50/point yearly.

It would cover up to the room occupancy and only be Deluxe Dining Plan (or possibly its only Quick Service and then the others are an upcharge).

 

[TinkerKeeks]

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!!

I just did the same thing!

 

[VianSa]

I just did the same thing!

Congrats!!

 

[CanadaDisney05]

it's already having an effect on us...we aren't buying a BCV small contract because the value isn't there at $17 PP. There is a human being on the other side that isn't getting our money, buying their contract. I feel so disappointed - for me, for them!

I wouldn't feel too sorry. Either someone else will buy it or they'll lower the price to the real market price

 

[montreid]

wonder if ROFR going to bump too now.

 

[Soap_1984]

I am still wondering why they would increase the number of contracts they take in rofr, they can own 100% but if they aren't going to sell them because they raise prices to insane rates, don't they have to pay the dues on those points if they are just holding them?

The strategy makes no sense. To me it only makes sense that they are looking to raise sales at riviera vs direct at sold out resorts and they probably won't rofr much at all any more. Why they would load up on points for old resorts they aren't going to sell is beyond me. Why would anyone buy direct at vgf or bcv; the ability to stay at Riv and a few perks they can remove at any time isn't worth $100/pp (especially because many/most people here own already and have perks/can stay at Riv on a portion of their points).

 

[crvetter]

I am still wondering why they would increase the number of contracts they take in rofr, they can own 100% but if they aren't going to sell them because they raise prices to insane rates, don't they have to pay the dues on those points if they are just holding them?

So there is a few things about the Dues that DVC pays. DVC pays dues on the points it owns and holds for their use (the 2% minimum they hold is for their use, it's not really for maintenance as commonly quoted, maintenance is why only 51 out of 52 weeks is sold) and any other points they wish to own. Now DVC has inventory they haven't sold yet (bought through ROFR, foreclosure, new declaration) they do not have to pay dues on these because they offered a developer guarantee to the association. What this basically means is that if the association is short in it's actual costs after all the members and DVC pays their eligible dues then they will make up the difference. This guarantee really has a large impact on the new resorts and much much less so on the older resorts since the points that DVC doesn't pay dues on is so minuscule.

Some of the larger resorts that are sold direct (once officially sold out) you will see that the developer guarantee did kick in (for instance it has happened at SSR).

 

[Soap_1984]

So there is a few things about the Dues that DVC pays. DVC pays dues on the points it owns and holds for their use (the 2% minimum they hold is for their use, it's not really for maintenance as commonly quoted, maintenance is why only 51 out of 52 weeks is sold) and any other points they wish to own. Now DVC has inventory they haven't sold yet (bought through ROFR, foreclosure, new declaration) they do not have to pay dues on these because they offered a developer guarantee to the association. What this basically means is that if the association is short in it's actual costs after all the members and DVC pays their eligible dues then they will make up the difference. This guarantee really has a large impact on the new resorts and much much less so on the older resorts since the points that DVC doesn't pay dues on is so minuscule.

Some of the larger resorts that are sold direct (once officially sold out) you will see that the developer guarantee did kick in (for instance it has happened at SSR).

Got it thank you for the information. That has raised more questions but I will spare them to avoid going way off topic.

It will be interesting to see what the strategy actually is and how it plays out; i can't really figure out the logic behind it.

 

[SL6827]

So them raising the price twice in one year for the first time ever seems like they might be really desperate? And the $50 increase, was that a typo, or miscommunication or a real possibility?

 

[SL6827]

What this basically means is that if the association is short in it's actual costs after all the members and DVC pays their eligible dues then they will make up the difference. This guarantee really has a large impact on the new resorts and much much less so on the older resorts since the points that DVC doesn't pay dues on is so minuscule.

What do you mean if the association is short on its cost? I have not really read much about this topic.

 

[crvetter]

What do you mean if the association is short on its cost? I have not really read much about this topic.

Well your dues are just an estimate of the upcoming year. So they try to be as accurate as possible. However, in years they are over estimating the dues (vs the actual costs) they add that to the reserves. In years that they estimated below the actual cost someone needs to come up with the shortage. So DVC offers a developer guarantee that they will cover the shortage if it exists in exchange for not having to bay the dues on the points they are selling (only the points they are selling not anything else). Granted as I stated the sold out resorts they hold very little points for sale in them so really it's to the member's advantage that they do this.

 

[Fred M]

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?

If they announced that for an extra $10 a point we all could actually buy an add-on at VGC, then that would be news! We're in the same boat. Resale contracts go so fast that they are impossible to get and direct sales are zilch!

 

[Jenniebee]

I was just reading some comments on a DVC Facebook page and I think I see what is going on.

Many people still do not want to buy resale, are not interested in it, and do not even want to consider it. The are hung up on blue card/white card and what benefits you don't get, the limitations, etc.. Which is all valid, I get it. But then with direct prices at the sold out resorts going up so high, the natural conclusion will be to buy at what is currently being promoted, ie. Riviera.

Everyone here is like "but there's resale", but I am suspecting the GP does not really consider it a serious alternative.

 

[gatordoc]

If they announced that for an extra $10 a point we all could actually buy an add-on at VGC, then that would be news! We're in the same boat. Resale contracts go so fast that they are impossible to get and direct sales are zilch!

Sorry to hear this has become such a problem. We were able to add on direct at VGC in 2017, with our use year of choice. Not sure whether the fact that we already owned VGC points had anything to do with it, though, or that we started the process on a Disney cruise. We went to the first-day member event, and the guide there announced that he could get points for any resort. So I made an appointment to meet with him, and at that meeting told him what I wanted at VGC. He said he’d see what he could do, and true to his word, I got a call from him a couple of months later offering me the exact number of points and use year I wanted. Jumped right on it with no regrets.

 

[JasonDDN]

So them raising the price twice in one year for the first time ever seems like they might be really desperate? And the $50 increase, was that a typo, or miscommunication or a real possibility?

I think the $50 is the total for the year. Total of the Jan increase and the one occurring nov 1st. BCV has gone up $50 with both increases. That’s what I assume they were referring to.