Why did Disney change the rules?
Image: DisneyYou may wonder why this rules change only applies to resales. The answer is simple. Disney receives no money from resales purchases. Conversely, a buyer receives the same primary benefit of DVC membership from resales ownership. They get that ability to stay at Disney’s Deluxe resorts for “free,” using only their DVC points.
Disney must discourage potential customers from using the resales market whenever possible. Otherwise, they’d lose out on a tremendous amount of business. After all, Disney charges MUCH more for the same points purchased directly.
At the time of publication, a direct ownership interest in DVC costs roughly $50 more per point and sometimes much more. You’ll pay thousands of dollars more for a direct contract than one bought on the resales market. Savvy shoppers know that buying directly borders on a waste of money.
Disney changes the DVC program rules on occasion to alter this perception. They provide more benefits to direct members while eliminating them for resales buyers. It’s annoying and causes the latter group to feel like second-class citizens in the DVC program.
Does Disney have something else in mind?
Image: DisneySome speculation suggests that the Riviera and Reflections could become part of a new group, a kind of DVC 2.0. While I believe people are getting ahead of themselves on this point, I’ll quickly explain the concept.
Many timeshares have changed over time, devaluing the membership benefits of longtime members. They’ve created a second class of their timeshare program, preventing early joiners from benefiting from the introduction of newer resorts. It’s a shady practice, the kind that gives timeshares such a terrible reputation.
Over the years, Disney has eschewed any and all connections to standard timeshares. Their sales agents aren’t even allowed to describe DVC as a timeshare due to the negative stigma attached to that word. Hopefully, the fears of a DVC 2.0 are unfounded for this reason.
Image: DisneyOtherwise, Disney’s done precisely what low-class timeshares are prone to do, reducing the quality of membership for long-term members. It’s something to watch carefully in the coming months and years. We likely won’t know for sure until Reflections opens in 2022.
In the interim, this is a terrible look for Disney. They’ve just damaged the perceived DVC value of the Riviera before it even opens. They’ve also left a sour taste in the mouths of hundreds of thousands of DVC members, many of whom purchased via direct resales.
Disney’s gambit is a dangerous one that actively alienates loyal customers. It seems like an unforced error to me, something that looks good on a spreadsheet but has no positive outcome for a business.
Comments
Disney doing whats good for Disney at the expense of dvc purchasers who may have fallen on hard times. Why should people be demonized for selling something they bought anyway
I think there is a solid work-around for this... just buy direct from Disney. I mean if you can’t afford it, then you can’t afford it and I hope you enjoy Art of Animation. If you are going into DVC with the ideas of selling, then you’ve got it all wrong. The amount of money saved buying resale over buying direct is not that big of a difference. Because, over the lifetime of your contract, the vast majority of money spend will come from the dues. Dues are the same whether you buy direct or resale or if it’s willed to you. Run the numbers.
If you buy Riviera directly from Disney you still get to stay there or any other DVC resort, assuming rooms are available. This only effects those who purchase after market
Disney isn't "devaluing" long term customers initially. Actually, they are benefiting. If you have a contract prior to 1/19/19, you can (for the time) access every DVC resort with your points. You bought Hilton Head at $50/point? guess what, you actually are better than the new guy at Riveria who bouht at $192 a point. You can both access the same properties, but they are paying 4x the cost for it.
They ARE hurting the people who want to use DVC as a monetary investment, compared to a vacation one. How long do people hold onto their contracts? usually long enough for their kids to enjoy the vacations. But once they get "out of the Disney age" you could always flip the DVC and break even, maybe even make money, depending on the market. So really, this makes it so potential buyers have a strong vested interest in staying on property. And this is what I think Disney wants.
They want the family that will be back year after year. Sure the hotel is "free", but with that, you need food. You are at the parks, so you are buying tickets/APs. You are going to be a "superfan" So you'll be taking part in the hard ticket events. Doing backstage tours. Maybe even paying for a VIP Guided park tour. And then the souvenirs.
All that does add up. They are looking for the long term investment.
From that, Disney wants resales done, or at least done through them. You can buy a resale contract through Disney, but as you said, it's more than on any of the other resale sites. Is it worth it to buy Riveria on resale at $100/ point and only ever be able to stay there, or buy on Resale from Disney at $175, but stay at ANY DVC Property. Disney wants that money.
So really, the 2n'd class owner will be "New Resort Resale Owners" New onwers get all the perks. Legacy onwers still get the perks of "New" ownership. Resale "legacy" owners still have a better value than any of the DVC2.0 resale owners.
It'll be interesting to see how this plays out for Disney. They may either have to change the rules, or offer new DVC at a lower cost/point to get people to bite. But then if the new price is say $150/point, and people were paying $175-192 for Poly, Wilderness Lodge..etc. that could stractch the legacy owners.
No idea why the shock for resales. They have been minimizing resales for years through limiting benefits. If you buy directly from Disney you don't have a problem. If you don't, you got it at a discount and with proper research you know what you are getting into. They didn't ruin it for all DVC members, they changed it for resale DVC members.