Back to resale as well.
I suspect this means that they are doing brisk enough sales at the 200-249 price point they didn’t need to reach to offer the extra $20/pt discount, particularly as they ROFR OKW points around $70-80/pt, they can now basically double their acquisition cost.
When an offer has me thinking about a direct purchase, that’s a strong offer.
They are talking about capping the purchase at 199 points with the linked incentives staying the same for that level. I hate to even repeat this because it's complete conjecture at this point.
Truth, you'd think them being able to turn "used" points into new (with the highest profit margin) would be all over resale, but i guess it just doesn't make as much sense on their own chalkboard.
DVD really needs to hire a few of us as consultants. We would have bought beach club direct around $200 (admittedly before I found this board) but at $275 we went to Aulani around $170 w/incentives (no MB)— If Disney got a lot of people buying their sold out resorts around $200, even $180, they could scoop up low prices in resale profit flipping to direct, raise resale prices by 25-50% across the board, and continue making money selling higher priced direct at new resorts easier.
I think they just don’t want to have a high volume of people buying the old resorts because they want to sell out the new resorts…. it’s the only reason I can think of…..
They don’t want to risk trading people from the active sales resorts, where they make a 70%-80% margin, to the sold out resorts, where they might make a 30% margin after all their transaction and carrying costs.
I would say you are a case study in why DVC shouldn’t change their strategy.
Wish I knew how to multi-quote, but will rely to both your last two posts here:I would say you are a case study in why DVC shouldn’t change their strategy.
I guess I think if Disney thought they made better money renting hotel rooms than selling DVC then they would build more hotels instead of DVCs. I think renting the rooms in the meantime is obviously a good idea, but all it does is ameliorate carrying costs. And if it’s pulling a guest who would have stayed at like Yacht Club and that YC room goes empty, than it’s not even doing that.
At the bottom of people’s posts there is a “+Quote”, if you click that on all the posts you want to respond to, they are easily accessible when you go to write your post. Right next to “Post Reply” it says “Insert quotes…” click that and all the posts you flagged are there, just “quote messages” or remove them as you want.
Remember that DVC doesn’t actually pay dues on the points they own, they just make up any shortfall in expenses after regular owners like us pay our dues. The more points Disney owns compared to us, the more likely there will be a shortfall that they’d have to cover. They turned WL rooms into CCV and BPK rooms into VGF and Ft. Wilderness Cabins into DVC CFW to move those operations and maintenance expenses from their responsibility to ours. Plus, if people stop traveling - e.g., after 9/11 and during Covid - owners are still responsible for maintenance and operations, whether the DVC resort rooms are full or empty.
This is why I think a serious downturn (either in the economy generally, or number of WDW guests specifically) is the main reason we’d see DVC dramatically drop prices beyond where they currently are at RIV/AUL/VDH… as long as they get those unsold points booked as hotel rooms, there isn’t a huge need to sell DVC properties quickly… assuming their corporate balance sheet looks OK.
