The changes aren’t all bad news!
Image:DisneyWith projected traffic increases for all parks, the rack rates for resorts should rise at a corresponding rate. The DVC program is a part of that system, even if it’s a bit different in practice. Those rooms should go up in price to reflect the increase in demand.
Disney’s valuing the three monorail resorts at a cost of $190 - $220 per point, and it’s not unreasonable. They have the best logistics of Walt Disney World participants. Similarly, Disney’s Grand Californian is the only current option for the Disneyland version of Star Wars Land. In 2019, Disney Riviera Resort will open close to Disney’s Caribbean Beach Resort, and it will be right beside the Disney Skyliner, the new transportation system. Guests here will ride a gondola straight to Disney's Hollywood Studios. Given the above, you can expect this DVC property to start at the highest price ever for a participant. Why does that matter?
Image:DisneyCurrent DVC owners benefit each time the prices go up. The value of DVC ownership goes up in tandem with these per-point cost increases. Thanks to the resales market, DVC members always have the ability to drop out of the program. Selling points works generally the same as any other real estate transaction. You list your ownership interest with a resales company (i.e. a specialized real estate agent), they find a buyer for your points, and you sign a transfer of ownership contract. Disney has Right of First Refusal, which means they have the right to buy your points for the same amount for which you agreed to sell to the buyer. That’s how they repurchase points. But you’ll get the amount you expect no matter who the buyer is.
What’s impressive about DVC is how consistently ownership has beaten the rate of inflation. Just over the past several years, Disney’s Old Key West has gone up in resale value from $71 in 2014 to the $90 range in 2018. That’s a 26.8 percent increase over four years, more than five times faster than the rate of inflation for that time. Literally every DVC property has seen improvement over the past few years.
Image:DisneyDVC members benefit from this increase in a specific way. If the constantly increasing costs of a Disney vacation bother you at any time, you can sell your ownership interest and exit the program. You’ll make out like a bandit in the transaction as well, at least if you’ve been a member for a while. The value of your DVC contract is likely to exceed what you paid for it unless you bought direct from Disney less than five years ago.
That’s the beauty of DVC versus a regular timeshare. In addition to the value of the Disney brand name, this is the rare annual vacation program that has consistently beaten the cost of inflation over the years. Its value has increased proportionally over time.
Guests who aren’t currently members are understandably worried about the increase in price. These vacationers still have a backup plan, though. The contracts on the resale market are cheaper. You have a narrow window between now and the debut of Star Wars Land to buy a DVC ownership interest before prices spike there, too. DVC isn’t for everyone, of course, but the recent price changes demonstrate just how much Disney believes that the program has been undervalued in the 2000s.
Image:Disney
Comments
I'm okay with price increases at DVC. It is still relatively inexpensive comparatively. My only issue with the expansion of DVC is that it is becoming very difficult to find reservations if you are not a DVC member. Pretty much every resort is now part of DVC. I feel as if you are being forced into becoming a member. I have gone to Disney World at least twice a year since the late 90's and it has become more and more difficult to book rooms unless it is last minute.