May 2024 Direct Sales Up

BeachClub2014 said:
Yikes is right! It'll be interesting to see what dvc does with the marketing of this resort to address the abysmal sales. There has to be some yet unveiled plan.
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This is my thinking…while I do agree with others that maybe the cabins were thrown to DVC on purpose, there is something long term they are going to do and we don’t know it….

I still predict it’s the trust and future resorts will be added, especially since it does seem they are being booked by non owners, and every non owner who is booking is freeing up other inventory for DVC to rent for cash.
 
intamin said:
I’m ready for River Country 2.0 :p

I have to wonder though if this will discourage DVC from further foraying into the moderate resort world seeing how poorly sales are going but again maybe they don’t care since they can sell them for cash..? ¯\_(ツ)_/¯
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It does seem like an interesting approach to the moderate resort DVC world, doesn't it? I can think of many other options that would have been better, if that was their intent.
 
Sandisw said:
This is my thinking…while I do agree with others that maybe the cabins were thrown to DVC on purpose, there is something long term they are going to do and we don’t know it….

I still predict it’s the trust and future resorts will be added, especially since it does seem they are being booked by non owners, and every non owner who is booking is freeing up other inventory for DVC to rent for cash.
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Not going to worry about DVC
This was interesting post in the camping forum a few years ago :

IMG_6541.png
 
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SugarSweetLee said:
Woof! The 1000 pointer single deed for Riviera is an interesting choice.
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"Woof" is right! Understanding the ability to split direct contracts is essential. I have to think this buyer had no idea that was possible. Imagine having a 1K contract with resale restrictions. How narrow is your buyer pool for that large of a purchase?
 
Eh I really think it’s just this simple, Disney just wanted to let some shmucks er I mean fans help pay the capital cost of replacing the cabins. The trust had to be used due to the logistics of the cabins AND they wanted an easy way to tie them into reflections 2.0 later.

Occums razor.
 
This triggered a conversation we had with our Guide Dillon. We talked about OKW, blah blah blah. But then he said he had a guy purchase a huge amount of points and with the "sale" and refund thing, he ended up paying nearly half. I want to say it was like $50,000 or close, when all said and done. I was like Whoa. Glad that guy likes it there.
 
Sandisw said:
https://dvcnews.com/dvc-program-men...t-from-strong-old-key-west-demand-in-may-2024

Whomever guessed around 50K for OKW was spot on!!!

Wonder what DVD might do next!!!
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The OKW refresh program was a good way to generate cash for the DVD division. Buying resale contracts in the 60-80's per point then reselling direct points for almost double. Even if not quite double at least 50%+ profit. And they essentially got to sell the points twice: first the original sale and then second the ROFR / resale. This also increased the annual dues funds coming in to the resort. I'd be curious to hear the DVD inside chatter about how this went.

The refresh also helped manage the OKW cliff edge of 2042 with more members edging to the 2057 mark and more on par with expirations for Animal Kingdom, Aulani, and Bay Lake.

Makes me think DVD will look at this refresh model for the 2042 resorts of Beach Club, Boardwalk, and Boulder Ridge (all WDW resorts). Don't know for sure but doubt this is the long-term plan for Vero or Hilton Head. As for the WDW 2042 resorts, DVD will be able sale at a higher price point. Would love to see a Beach, Board, and Boulder fire sale. The triple B's.

The one thing I'm not sure about is does the contracts / deeds allow for expiration years to extend like OKW from 2042 to 2057?

We took the jump and got in late for OKW. I think after Magical Beginnings our net price per point was around $135. I would have considered more but the refresh program went so well DVD started restricting to max 249 point purchases. The extra points we picked up allows us to target 2 bedrooms consistently plus easier striking range for the 3 bedrooms. And since they are direct, we just used some of the OKW points for a stay at VDH early next year. We have VDH points but like all DVC'ers used our annual allotment up!

Edit Update: Best part for the Magical Beginnings, it was $20/pt for 2023 points.
 
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MartyParty said:
The OKW refresh program was a good way to generate cash for the DVD division. Buying resale contracts in the 60-80's per point then reselling direct points for almost double. Even if not quite double at least 50%+ profit. And they essentially got to sell the points twice: first the original sale and then second the ROFR / resale. This also increased the annual dues funds coming in to the resort. I'd be curious to hear the DVD inside chatter about how this went.

The refresh also helped manage the OKW cliff edge of 2042 with more members edging to the 2057 mark and more on par with expirations for Animal Kingdom, Aulani, and Bay Lake.

Makes me think DVD will look at this refresh model for the 2042 resorts of Beach Club, Boardwalk, and Boulder Ridge (all WDW resorts). Don't know for sure but doubt this is the long-term plan for Vero or Hilton Head. As for the WDW 2042 resorts, DVD will be able sale at a higher price point. Would love to see a Beach, Board, and Boulder fire sale. The triple B's.

The one thing I'm not sure about is does the contracts / deeds allow for expiration years to extend like OKW from 2042 to 2057?

We took the jump and got in late for OKW. I think after Magical Beginnings our net price per point was around $115. I would have considered more but the refresh program went so well DVD started restricting to max 249 point purchases. The extra points we picked up allows us to target 2 bedrooms consistently plus easier striking range for the 3 bedrooms. And since they are direct, we just used some of the OKW points for a stay at VDH early next year. We have VDH points but like all DVC'ers used our annual allotment up!
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The ground lease has to be extended in order for it to apply to the other 2042 resorts.

After the mess of OKW, it is very unlikely to happen since it was forced on owners because DVD did it unilaterally. And they are now stuck with the fallout

The bigger reason I don’t see it is the point charts. Now way they want those to continue and any extension would do that.
 
DVC Gma said:
This triggered a conversation we had with our Guide Dillon. We talked about OKW, blah blah blah. But then he said he had a guy purchase a huge amount of points and with the "sale" and refund thing, he ended up paying nearly half. I want to say it was like $50,000 or close, when all said and done. I was like Whoa. Glad that guy likes it there.
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435 points would’ve been around $50k. Without any incentives ($205pp) would’ve been ~$90k.

The nice thing about OKW sale was the more manageable buy-in cost and extended contract. The higher dues eat into the savings over time though. The aspect that didn’t appeal to me was trading out those points to higher point charts (RIV, VGF, PVB), and being able to trade into alot of OKW inventory with lower dues elsewhere.
 
Sandisw said:
The ground lease has to be extended in order for it to apply to the other 2042 resorts.

After the mess of OKW, it is very unlikely to happen since it was forced on owners because DVD did it unilaterally. And they are now stuck with the fallout

The bigger reason I don’t see it is the point charts. Now way they want those to continue and any extension would do that.
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Thanks Sandisw...
 
jcolvin5 said:
"Woof" is right! Understanding the ability to split direct contracts is essential. I have to think this buyer had no idea that was possible. Imagine having a 1K contract with resale restrictions. How narrow is your buyer pool for that large of a purchase?
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Either they don't know it was possible, or they are in a financially confident enough position not to worry/care? If you're buying 1000 points in one shot, I do think you'd be more likely to fall into the latter category (or maybe both, simultaneously).
 
BeachClub2014 said:
It was an AI-controlled Bot owned by a mega rental broker LLC that went rogue and committed Aunt Edna from Iowa to the contract, thinking it was for the Poly Tower in a new association. I read that on FB and saw it on YouTube so it must be true. :P
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Imagine if the DVC rental bots were the first AI to gain sentience and plot the elimination of all humans... I'm just sayin

1718896204468.png
 
intamin said:
I have to wonder though if this will discourage DVC from further foraying into the moderate resort world seeing how poorly sales are going but again maybe they don’t care since they can sell them for cash..? ¯\_(ツ)_/¯
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I think CFW is just a weird choice to dip their toes in moderate type accommodations. What they really should've done is make a DVC 2.0 with just moderates. Start with POR or CSR or better yet both and convert a few buildings to a new iteration of DVC. Make it so the points are not transferable between the two systems to maintain integrity of the original. Eventually Disney can have a ton of their hotel rooms constantly booked and having members pay for all expenses.
 
TheDailyMoo said:
I think CFW is just a weird choice to dip their toes in moderate type accommodations. What they really should've done is make a DVC 2.0 with just moderates. Start with POR or CSR or better yet both and convert a few buildings to a new iteration of DVC. Make it so the points are not transferable between the two systems to maintain integrity of the original. Eventually Disney can have a ton of their hotel rooms constantly booked and having members pay for all expenses.
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Do they have issues filling the Moderates like they do the Deluxe?
 
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