100 pt Direct Blue Card Minimum September 17,2019

[Louis morrell]

There was around 3-4 weeks notice, at least, last time. If this is true, a 9 day warning is awfully quick.
It also doesn't make a ton of sense. Why increase it 200% last time, but only 33% this time? A lot of work for minimal benefit, especially considering the other resale restrictions regarding DVC2 already put into place.

I think you are correct. They announced early to mid January last year. I was actualy at Disney when they announced the change. I was not reading forums so we missed it for a week or so. That's why it seamed shorter to me.

 

[Ben E N]

Just trying to read the tea leaves here.
There must have been some meeting where they discussed that too many people were going the hybrid route, despite the restrictions on resale points and the super high direct sales cost for sold out resorts.
I don't see why they would care if they sold 100 75-point contracts or 75 100-point ones. This then indicates that this new requirement is meant to drive more sales to Riviera, which must be struggling bad enough that they have to do more to drive sales there.
I'll be interested to see the next publically available sales data for Riviera. I do not expect it will look good.

 

[kboo]

A 100 point minimum prices out the biannual studio/1br crowd.

This makes sense. Although I do wonder if it will have any actual effect on competition for studios at studio-heavy resorts.

This may also be some recession hedging. They are going after the new members who are trying to decide between 75 points direct v. 100 points resale.

e.g.
SSR:
100 points direct gets you all access to old and new DVC resorts: $16,000
or for the same amount of $ you could get around 160 points via resale, have to go through ROFR, maybe be buying a stripped contract, have higher closing costs, no "welcome home" booking, etc.

OKW: **
100 points direct: $15,600: end date 2057
or 155-160 points, end date 2042

Even BLT, which has a much higher direct v. resale differential:
100 points direct - 22,500
or 155 points for the same cost, resale. true that's 50-60% more points, but they'll sell shiny membership extras as being worth more.


**will the bottom fall out of the OKW 2042 resale market? DVD can repackage the points and sell them all with a 2057 end date.

 

[EYL]

Is there a confirmation to this, or is this being reported by any other outlet? I'm hoping that this isn't true since I was going to wait until next year to purchase 75 points direct. If true, it'll be 75 points resale... Disney will have lost my money.

 

[hlhlaw07]

There was around 3-4 weeks notice, at least, last time. If this is true, a 9 day warning is awfully quick.
It also doesn't make a ton of sense. Why increase it 200% last time, but only 33% this time? A lot of work for minimal benefit, especially considering the other resale restrictions regarding DVC2 already put into place.

It was actually 2 weeks. They posted the notice on February 11, and the change took place on February 25.

 

[Marionnette]

Is there a confirmation to this, or is this being reported by any other outlet? I'm hoping that this isn't true since I was going to wait until next year to purchase 75 points direct. If true, it'll be 75 points resale... Disney will have lost my money.

I don’t see it being discussed on other DVC forums. That doesn’t mean it’s untrue. It could just be unconfirmed at this time.

I was going back and forth between selling a 65-point resale contract that I own and purchasing. 75-point direct contract solely for the purpose of having direct benefits once my older, grandfathered contracts expire. But then I thought, I’ll be darn near 100 when that last grandfathered contract expires! Let my kids get their own direct points if that’s what they want when they’re around 70!

 

[Ben E N]

It was actually 2 weeks. They posted the notice on February 11, and the change took place on February 25.

That sounds about right. It was such a flurry of activity then it probably felt longer.

 

[Yinn]

Just trying to read the tea leaves here.
There must have been some meeting where they discussed that too many people were going the hybrid route, despite the restrictions on resale points and the super high direct sales cost for sold out resorts.
I don't see why they would care if they sold 100 75-point contracts or 75 100-point ones. This then indicates that this new requirement is meant to drive more sales to Riviera, which must be struggling bad enough that they have to do more to drive sales there.
I'll be interested to see the next publically available sales data for Riviera. I do not expect it will look good.

Ironically, there's much simpler and effective ways to drive sales for Riviera.

1) Eliminate the new resale contract that restricts it to just Riviera. This would draw existing, knowledgeable members.

2) The dues need to be reduced. I'd gladly sacrifice the extra points or financial incentives to have a $1.00 per point reduction in annual dues. It's within 25 cents of Hilton Head, which isn't doing well either.

Realistically, those going resale and hybrid are value focused. If they went 100 point minumum, the math may not support a hybrid approach. For me at least, a 100 point minimum would cause me to avoid direct altogether.

 

[skippytx]

RIV's dues are probably over estimated like they did with Copper Creek. CCV's dues actually went down a tiny bit the 2nd year, and only went up 10 cents so far from day 1. They're doing the same thing with Riv I bet. Other resorts are seeing larger increases, where those increases were priced into the dues at the new resorts.

 

[aoconnor]

I wonder if this means they're raising the minimum direct purchase in general to 100 points?

It would be odd for them to keep the minimum direct buy-in at 75 points, but not have those people get benefits.

 

[EYL]

I don’t see it being discussed on other DVC forums. That doesn’t mean it’s untrue. It could just be unconfirmed at this time.

Yeah, I don't mean to imply anything else other than news like this typically spreads like wildfire and I've only seen it here. I'm remaining hopeful that it's due to an aggressive Guide wanting to make a sale to the OP. But with all he changes DVC has made through the last few years, I wouldn't be surprised for a moment.

 

[PolyRob]

I wonder if this means they're raising the minimum direct purchase in general to 100 points?

It would be odd for them to keep the minimum direct buy-in at 75 points, but not have those people get benefits.

You can actually buy as low as 50 points direct as a new member right now at certain resorts.

 

[aoconnor]

You can actually buy as low as 50 points direct as a new member right now at certain resorts.

That's true- I guess with regards to the new resorts then. Would just seem odd that they'd sell a new buyer 75 points at Riviera but wouldn't consider them a member.

 

[T-i-double-guh-er]

I’m on the phone with my guide now. He said he has not heard anything about an increase in the minimum points required for the blue card. Doesn’t necessarily mean it’s not true though.

 

[Ben E N]

Ironically, there's much simpler and effective ways to drive sales for Riviera.

1) Eliminate the new resale contract that restricts it to just Riviera. This would draw existing, knowledgeable members.

2) The dues need to be reduced. I'd gladly sacrifice the extra points or financial incentives to have a $1.00 per point reduction in annual dues. It's within 25 cents of Hilton Head, which isn't doing well either.

Realistically, those going resale and hybrid are value focused. If they went 100 point minumum, the math may not support a hybrid approach. For me at least, a 100 point minimum would cause me to avoid direct altogether.

Those would both cost Disney money, though. Further squeezing resale buyers does not.

 

[Lumpy1106]

You know, if they dropped the minimum back to 25, I'd probably buy them. 100 min? Hard pass...

 

[BWoody]

You know, if they dropped the minimum back to 25, I'd probably buy them. 100 min? Hard pass...

Agree with Lumpy. If it went back to 25 I would buy tomorrow. 50, I might buy at some point. 75, I doubt I will buy. 100, hard no.

 

[T-i-double-guh-er]

Agree with Lumpy. If it went back to 25 I would buy tomorrow. 50, I might buy at some point. 75, I doubt I will buy. 100, hard no.

Yeah, we’re kind of on the fence at 75. Much less likely at 100. Maybe that’s what they want though, to close the “loophole.”

 

[DebbieB]

Ironically, there's much simpler and effective ways to drive sales for Riviera.

1) Eliminate the new resale contract that restricts it to just Riviera. This would draw existing, knowledgeable members.

2) The dues need to be reduced. I'd gladly sacrifice the extra points or financial incentives to have a $1.00 per point reduction in annual dues. It's within 25 cents of Hilton Head, which isn't doing well either.

Realistically, those going resale and hybrid are value focused. If they went 100 point minumum, the math may not support a hybrid approach. For me at least, a 100 point minimum would cause me to avoid direct altogether.

1) That could cause a mess. There's already been a resale sold for a rumored $100/point. I would scream foul if that was me.

2) A dues reduction would have to be accompanied by a reduction in the operating budget. They ran into legal issues at Aulani for under estimating dues.

 

[KAT4DISNEY]

This makes sense. Although I do wonder if it will have any actual effect on competition for studios at studio-heavy resorts.

This may also be some recession hedging. They are going after the new members who are trying to decide between 75 points direct v. 100 points resale.

e.g.
SSR:
100 points direct gets you all access to old and new DVC resorts: $16,000
or for the same amount of $ you could get around 160 points via resale, have to go through ROFR, maybe be buying a stripped contract, have higher closing costs, no "welcome home" booking, etc.

OKW: **
100 points direct: $15,600: end date 2057
or 155-160 points, end date 2042

Even BLT, which has a much higher direct v. resale differential:
100 points direct - 22,500
or 155 points for the same cost, resale. true that's 50-60% more points, but they'll sell shiny membership extras as being worth more.


**will the bottom fall out of the OKW 2042 resale market? DVD can repackage the points and sell them all with a 2057 end date.

But it's going the wrong way, isn't it?. Requiring a higher minimum for the benefits makes the difference between resale/direct or a hybrid seem worse. At least with 75 you have more of a chance of people going thru the hybrid points hoops. 100 points? That's another 25 points worth of value you need to achieve to make it worthwhile. As always there will be those who don't care about the money but they likely are already buying 100 pts+ direct and never considering resale. The resale buyer who looks at the difference and was on the fence would now have an even tougher time justifying the upcharge. It's the ones on the fence they would have to be hoping to get and essentially raising the price for benefits wouldn't seem to be apt to make them jump on the direct wagon.

If anything the 2042 contract appears better because justifying the direct requirements would become more difficult for those who are on the fence.

Also, this could be bad for studios. As the Hybrid cost becomes more then those that decide they have to have the benefits may stop at 100 pts - deciding that's good enough and they'll make it work vs 75 direct plus another resale contract because those funds went to DVC direct. Of course as I mention I see the potential to make resale more attractive if this happens with the increase making it easier to pull direct off the table and putting the money towards a resale contract.