Future of Member Benefits - What do you think will happen?

[AdamsMum]

I think all future resales will be restricted to that resort only for the new owners. It will really lower resale prices and demand for those resorts. While (for a time) raising value of the original 14 that have the longer expiration dates.

I think the lowering of the resale prices by a substantial amount would interfere with their ability to sell direct at the ever increasing prices. I believe keeping the resale prices higher makes it seem reasonable to buy direct for the perks. Say resale is 50% of direct it would make resale much more attractive even if they can only stay at their home resort. Remember these are new buyers and they haven't experienced the freedom/flexibility that longer term owners have. Who knows? It's natural behaviour for us to speculate about the future.

 

[TexasChick123]

I keep going back to something that was pointed out about Aulani. Their resale is about half of where direct is currently selling and they buy back nothing. I wish I knew their plan. Maybe it’s to pick up resale on the cheap. Maybe, against all odds, resale will stay high even at Riviera. I don’t think they really buy back anything at a resort that is actively selling. I know the goal for the time being is to reduce competition with resale across the board. How this will actually play out remains to be seen...

 

[spacepoints]

It's going to be an interesting ride. I too bought into DVC for the resort variety, and have enjoyed the membership perks. Curious if they do a tiered system how they will work with the points already bought direct and resale with the various restrictions...

 

[KAT4DISNEY]

I keep going back to something that was pointed out about Aulani. Their resale is about half of where direct is currently selling and they buy back nothing. I wish I knew their plan. Maybe it’s to pick up resale on the cheap. Maybe, against all odds, resale will stay high even at Riviera. I don’t think they really buy back anything at a resort that is actively selling. I know the goal for the time being is to reduce competition with resale across the board. How this will actually play out remains to be seen...

Disney has the best success and interest from consumers at their #1 destination - WDW. Resorts there are onsite which nobody else (well, except 4 Seasons and then there's Bonnet Creek and the Swan/Dolphin....) but nobody else is onsite. There are fans of the other 3 offsite resorts but it's a whole different market with different drivers and competition that Disney has not done much to compete with and resale does have to compete with.

 

[Bearval]

I keep going back to something that was pointed out about Aulani. Their resale is about half of where direct is currently selling and they buy back nothing. I wish I knew their plan. Maybe it’s to pick up resale on the cheap. Maybe, against all odds, resale will stay high even at Riviera. I don’t think they really buy back anything at a resort that is actively selling. I know the goal for the time being is to reduce competition with resale across the board. How this will actually play out remains to be seen...

I don’t think Aulani is sold out yet. Once it is sold out DVD will do some ROFRs if they get people on a waitlist and then they will only buy back contracts that will allow them to meet or beat the profit margin for selling DVC.

 

[TheMick424]

It's going to be an interesting ride. I too bought into DVC for the resort variety, and have enjoyed the membership perks. Curious if they do a tiered system how they will work with the points already bought direct and resale with the various restrictions...

The perks, even though small in some cases, help to build good will with members and entice new buyers who want to feel like they are getting something special. You are certainly right though...it will be interesting to see what happens next.

 

[KAT4DISNEY]

I don’t think Aulani is sold out yet. Once it is sold out DVD will do some ROFRs if they get people on a waitlist and then they will only buy back contracts that will allow them to meet or beat the profit margin for selling DVC.

Very true - it's never been normal for DVC to do many, if any, ROFR's on resales of resorts they are in current sales on. They make far more on their direct sales and have the points available to sell so why stockpile more.

 

[TexasChick123]

Very true - it's never been normal for DVC to do many, if any, ROFR's on resales of resorts they are in current sales on. They make far more on their direct sales and have the points available to sell so why stockpile more.

This is why if you want to pick up Riviera on the cheap without fear of ROFR, you should do it when they’re still selling it directly. That makes a GIANT assumption that resale will be cheap, but there’s always hope...

 

[Bearval]

This is why if you want to pick up Riviera on the cheap without fear of ROFR, you should do it when they’re still selling it directly. That makes a GIANT assumption that resale will be cheap, but there’s always hope...

Yes, that would be the best time to buy a resale, once it sells out they will start exercising ROFR for contracts that they can repackage and make the same profit margin as “new” direct sales.