I think it is WDW and not you. I could've made the exact same post.
-
Welcome to the WDWMAGIC.COM Forums!
Please take a look around, and feel free to sign up and join the community.
DVC prices per point increasing in March
- Thread starter WWWD
- Start date
I think it is WDW and not you. I could've made the exact same post.
captainkidd
Well-Known Member
It's not you. Something has changed. I noticed it in January. Quite honestly, I was bored at times. I was wishing I was at Universal.
Not to turn this into a ditch WDW thread, but there were several things for me that hurt the experience:
1.Crowds are insane at Magic Kingdom ALL THE TIME.
2.New Fantasyland looks like a cheap afterthought to compete with Harry Potter.
3.Prices of souveniers are an absolute ripoff.
4.Future World has become a joke. If it weren't for Spaceship Earth and Living With The Land, we'd never even step foot in that section of the park.
Obviously, some of these things have been issues for a while, but this past trip was more of a stop and smell the roses type of thing, and I guess the roses just didn't smell as good as I thought they would.
GoofGoof
Premium Member
I think DVC is probably more willing to hold on to points than a traditional timeshare company since there is an active cash rental market that they can tap into. If they hold 10% of the points I think they would be able to make extra rooms available for cash reservations through WDW reservations. Even if they offer them at a 50% discount to rack it's probably enough to cover the dues.
toolsnspools
Well-Known Member
It's an easy game of inventory shuffle. They maintain an inventory of points at each resort that can be used for renting to guests, selling to buyers, or holding during maintenance. It's a win from them because ROFR is a big selling point to people buying in. They advertise it as a way to keep prices high so people think the value of their timeshare can never go down. They also make a nice profit from turning around contracts. I'm sure the room stays can be gifted, and written off on taxes as well.
As for the higher prices, most timeshare companies have been doing the same thing for years. You only get their best price if you string them along for hours and threaten to walk multiple times. Disney generally takes the "Here's the price but have we got a deal for you today..." route. It's great for driving up impulse buys, which is something the industry lives on. I think they were advertising BLT prices at $120 when I bought in for $92. That's almost 25% markup, just for the sake of making it look like a good deal.
Regardless, they are doing all the right things. I checked e-bay and they are still holding BOGO deals on timeshares in Orlando. That's with the first contract essentially selling for closing costs. The fact that DVC timeshares have held most of their value in this market is amazing.
As for the higher prices, most timeshare companies have been doing the same thing for years. You only get their best price if you string them along for hours and threaten to walk multiple times. Disney generally takes the "Here's the price but have we got a deal for you today..." route. It's great for driving up impulse buys, which is something the industry lives on. I think they were advertising BLT prices at $120 when I bought in for $92. That's almost 25% markup, just for the sake of making it look like a good deal.
Regardless, they are doing all the right things. I checked e-bay and they are still holding BOGO deals on timeshares in Orlando. That's with the first contract essentially selling for closing costs. The fact that DVC timeshares have held most of their value in this market is amazing.
Be mindful of the Vero dues. Due to higher insurance premiums and other related costs, they are $2 per point higher than most others. Over 29 years of ownership, you're likely to pay much more than an owner of a higher priced resort like Saratoga Springs or Old Key West which has lower dues.
As for the discussion of new construction vs. ROFR, it's purely a numbers game.
As previously stated, DVC can build new for $20-25 per point. That includes ALL costs associated with the development--design, materials, physical construction, outfitting the rooms, etc. If they can build new for $25 and sell for $165, why in the world would they ever actively ROFR at $60 and re-sell for $130??? You don't jump over $140 to pick up $70.
Aggressive ROFR also puts them in the business of trying to actively market a dozen individual resorts rather than focusing efforts on just 2 or 3 (currently Animal Kingdom and Aulani.) Much more expensive.
DVC only recaptures 3K-4K points per month at older, "sold out" locations. With such limited supply, they can set prices pretty much anywhere and buyers will materialize. With smallish contracts (under 50 points) being virtually impossible to come by on the resale market, owners wishing to add points in small quantities really have no choice but to go through DVC.
And don't ever forget about the uneducated consumer. According to numbers I've gleaned from multiple Disney webmasters, less than 10% of all DVC members are actively involved in any sort of online community. There are hundreds-of-thousands of current owners--and millions of non-owners--who have no knowledge of the resale purchase process. And many who do know about resale concoct their own justification for buying direct.
The timeshare industry only survives by the graces of the uneducated. Most timeshares can be purchased for pennies--not pennies on the dollar....literally PENNIES--via ebay, but developers continue to build and successfully sell at five-figure prices.
Disney has created a frenzy and it is working announcing the price increase 3/20 now all older sold out resorts have waiting list months long! Not sure what people are thinking 115.00 PP for BWV, OKW, BCV is a deal??? Okay it is going up to 130.00 still??? Resale market the average was about 60.00PP. Since Disney caused the frenzy they have also exercised there ROFR on about 50 contracts in the past month (that I know of) at all different resorts including SSR! In one day one of the resellers had 15 taken. Of course I am trying to buy resale and had 1 taken last week - great contract but there will be more. They are good at what they do but I still cannot believe once people know about resale why they would pay direct pricing!
GoofGoof
Premium Member
That is crazy. It shouldn't be that surprising though. The DVC people are really good at sales. This push has to be related to GF points coming out. Can't wait to see how high they go for.
I am glad I bought resale at a time when Disney was not exercising ROFR. My purchase was smooth sailing. It has to be pretty disappointing to make it that far and have it fall through. Hang in there, I'm sure it will eventually work out.
Gabe1
Ivory Tower Squabble EST 2011. WINDMILL SURVIVOR
Depends upon what buyers are seeking.
If you want 150+ points at any resort, resale is the way to go. But if you only want 25-50 points at resorts like BoardWalk or Beach Club, good luck finding on the resale market. Those smaller contracts are extremely hard to come by, tend to fetch an inflated per-point price (compared to larger contracts), and the closing costs tend to jack-up the net payment too.
Also matching your Use Year tends to simplify point management in the long run. DVC will only sell you points which match your current UY. When buying resale, it's "take it or leave it" with regard to the available contracts.
I paid about $66 per point for my OKW purchase back in 1998. I feel like I got a good deal, but there's no way I would buy in to DVC at the prices they are charging now. For the first time in years, we don't have annual passes. Last month, for the first time ever, we didn't step foot in a Disney Park. Totally enjoyed our stay at the Wilderness Lodge (love that place, it's so gorgeous) and had some nice meals at various resort restaurants.
I think it's very difficult to put oneself in the place of a first time buyer today. You've been an owner for 15 years and were lucky enough to be offered such low prices. You have probably spent hundreds of days in the Disney parks over those years. You've witnessed the changes (or lack thereof.) Perhaps you have kids and have seen them grow from infants / toddlers to teenagers / college students over that time.
Many of todays buyers were teens themselves in the '90s. They are now out of college, starting families and discovering the Disney parks for the first time. They have no concept of paying $66 per point for OKW. (At least not direct.)
Even at $130+ per point, a DVC purchase is still justifiable. It will pay for itself in 8-10 years compared to discounted Disney hotel rates, and then you still have 40 or more years of deep savings.
Resale is obviously the big money saver. But even people who buy direct will still save on their Disney accommodations in the long run. It's just that they may end up kicking themselves for not discovering resale sooner.
