Think Twice Before Purchasing a Resale - New DVC Policy Set to Take Effect in March

[Maleficent's Dad]

Just came across this from DVC News...

Disney Vacation Club is set to unveil a Direct Purchase Benefit program in which some destinations will be withheld from those purchasing points on the secondary market.

Under the new program terms, only points purchased directly through Disney Vacation Club sales agents will be eligible for use toward the Disney Collection, Adventurer Collection and Concierge Collection. These ancillary programs feature destinations such as Disney Cruise Line, Adventures by Disney, the Disneyland Hotel and Paradise Pier in Anaheim, Disney's Polynesian and Grand Floridian resorts at Walt Disney World, international hotels at Disneyland Paris, Tokyo Disneyland and Hong Kong Disneyland and more.

In order for resale contract purchases to be eligible for all Member Getaways, the purchase closing must occur by March 20, 2011. As such, all prior resale purchases will also remain eligible for use toward the full slate of Disney Vacation Club destinations.

Resale point purchases which close after March 20 will be ineligible for use toward the Disney, Adventurer and Concierge Collections. Such resale contracts will be valid only for use at the 11 Disney Vacation Club resorts as well as the World Passport Collection which features trading opportunities through RCI and the Buena Vista Trading Company.

Point origination will be tracked down to the contract level. A DVC member with points acquired via a combination of direct and reseller purchases (acquired after 3/20/11) will only be able to use the direct purchase points toward the Disney, Adventurer and Concierge Collection destinations.

All owners will remain subject to the same booking guidelines for Disney Vacation Club resorts. Reservations can be secured 11 months from arrival at one's Home resort and 7 months from arrival at non-Home resorts regardless of whether the points were purchased directly or via a reseller.

[Aurora]

Yikes! What a lot of added red tape. The secondary market must be that much of an enormous financial loss for Disney if they're willing to increase the administrative cost and aggravation of tracking this stuff.

I don't really know if these programs are enough of an incentive, though, for people to forego the resale market. Are the differences in price per point enough for people to buy from Disney just for the chance at possibly staying at one of these resorts in the future? I have my doubts.

[Goofy4TheWorld]

Wow! I am SOOOO glad I decided against buying into the DVC!

[DonLefNY]

I've been a member for 10+ years and have never traded into the Disney Collection, Adventurer Collection and Concierge Collection.
I purchased to stay in DVC units.

[Hammer]

Well, guess I'm not going to buy the additional 50 points I was looking at possibly purchasing! No way I'm going to pay over $20 more per point (as incentives don't count for purchases under 100 points) to buy points through DVC. If they would lower the price of contracts for properties to closer match the prices in the resale market, people wouldn't be so quick to go to a reseller.

[DizneyRox]

My take?

The value of points on the resale market is going to plummet because of these now devalued points. It might pick up now and until the deadline, but afterwards the value of the points will drop further than they have.

This will allow Disney to buy back contracts at even lower rates than they do now, possibly forcing more to then buy points from Disney.

If anyone has any other insight into why these points would not be eligible for these same perks I'm listening. Remember, these were already sold at higher prices once before by Disney. They got their money already and continue to get maintenance fees on those points.

I do agree though the value of the perks being removed really isn't a big deal. Those are a poor use of points in terms of value.

[Aurora]

My take?

The value of points on the resale market is going to plummet because of these now devalued points. It might pick up now and until the deadline, but afterwards the value of the points will drop further than they have.

This will allow Disney to buy back contracts at even lower rates than they do now, possibly forcing more to then buy points from Disney.

If anyone has any other insight into why these points would not be eligible for these same perks I'm listening. Remember, these were already sold at higher prices once before by Disney. They got their money already and continue to get maintenance fees on those points.

I do agree though the value of the perks being removed really isn't a big deal. Those are a poor use of points in terms of value.

That's a possibility, but in general, I don't think the "added value" of buying through Disney will be enough of an incentive for most people to buy at dozens per point more. RCI is still in the picture, so I think most buyers will see there's not much value lost by buying resale.

[DVC Mike]

From DVCmember.com

New Policy Announced for Re-sale Purchases
Disney Vacation Club® has announced a new policy that limits access to certain Member Getaways exchanges for Ownership Interests purchased on the secondary market (also known as the re-sale market).

Under the new policy, Members who purchase from anyone other than Disney Vacation Development, Inc., on or after March 21, 2011, will not be eligible to use those Vacation Points to make reservations within the Concierge Collection, the Disney Collection or the Adventurer Collection. Those Vacation Points will instead be valid only for reservations at Disney Vacation Club resorts, as well as for RCI® exchanges, Club Cordial and Club Intrawest.

The affected collections are special Member benefits programs offered by Disney Vacation Development, Inc., and are not part of Members' Ownership Interests. That said, Members who purchased on the secondary market prior to March 21, 2011, may use those Vacation Points for all Member Getaways.

[DVC Mike]

From the Orlando Sentinel:

In a bid to buttress its own sales, Disney's time-share business said Tuesday it will impose new restrictions on buyers who purchase their time shares from existing owners — rather than directly from Disney.

A Disney Vacation Club spokeswoman said customers who bought their time shares directly from Disney have requested such a change.

"Our members just felt that that they should get more benefits when they purchase through Disney Vacation Club than those who purchase on the secondary market," spokeswoman Diane Hancock said. She added that the change aligns Disney with other time-share operators who impose similar restrictions on resales.

But some company followers said Disney is trying to prop up its own direct sales, which stumbled during the global recession and credit freeze. Disney reported lower vacation-club sales during its 2010 fiscal year, which ended Oct. 2.

[DizneyRox]

From the Orlando Sentinel:

...
But some company followers said Disney is trying to prop up its own direct sales, which stumbled during the global recession and credit freeze.

Man, I couldn't even get a proper credit! hehe

[faline]

We bought resale and I don't think it would prevent us from being resale again - the restrictions they're talking about are ways in which we would be unlikely to use our points. Those who haven't done their research may feel like they're losing something - those who have will likely realize that this is not going to be the best use of points anyway and has minimal impact.

[Checkers]

We bought resale and I don't think it would prevent us from being resale again - the restrictions they're talking about are ways in which we would be unlikely to use our points. Those who haven't done their research may feel like they're losing something - those who have will likely realize that this is not going to be the best use of points anyway and has minimal impact.

We have a combination of both (resale & direct buy) but I agree with faline, this would not prevent me from buying resale again.

[Goofy4TheWorld]

The reason I continue to be thrilled that I passed on DVC is because I fear "what's next".

What "benefit" is Disney contractually required to allow no matter what?

Will you always be able to book at the 7 & 11 months windows, are those windows flexible or etched in stone?

What about the right to stay outside your home resort at all, is that untouchable?

Is free parking at your resort a right or just a temporay benefit waiting to be removed?

Way to many of the benefits Disney has used to pitch DVC appear to be written with pencil and may be changed at the drop of a hat (or the drop of a stock price).

[Hammer]

The reason I continue to be thrilled that I passed on DVC is because I fear "what's next".

What "benefit" is Disney contractually required to allow no matter what?

Will you always be able to book at the 7 & 11 months windows, are those windows flexible or etched in stone?

What about the right to stay outside your home resort at all, is that untouchable?

Is free parking at your resort a right or just a temporay benefit waiting to be removed?

Way to many of the benefits Disney has used to pitch DVC appear to be written with pencil and may be changed at the drop of a hat (or the drop of a stock price).

Exactly! What's to stop DVC from saying that only people who buy through them can book at the 11 month window? I could see them doing that. This move in and of itself does not affect me, but who says the next one won't affect me and my resale purchase.

[DizneyRox]

That they are now going to be able to differentiate between DVC points and resale is the real problem. Once that change is implemented, the sky is the limit on whatever rules they want to put around it.

As others have said, THIS change isn't that big of a deal, but the fact that it's possible is the real problem. Disney has demonstrated if they can, they will. Especailly if it possibly means increasing profits.

Also, the owner comments about wanting this I bet are a 100% COMPLETE LIE! As I said, the points were at some point purchased from Disney, resale points can't appear on the market by themselves. Disney got the cash for those at that time of sale, Disney's job was done! Who's fault is it that people don't find value in Disney's current offerings at their current prices!?

[Ian]

Overall, let me say first that I find this change fairly disturbing. Not so much for the change itself, but (as others have said) for what it signals in terms of just how much leeway Disney has with these contracts. It really makes me wonder what else is buried deep in the legalese we all signed up for?

Another thing I find very interesting is this ... although they're trying to claim this was a member driven change, we all know that's baloney. They're doing this to try and drive people to buy points directly from them, because the values are just so disparate between the secondary market and direct from Disney (which, really, should tell you something all by itself).

This is telling, though, in this sense ... Disney just raised prices for Bay Lake Tower points under the pretense that sales were too hot and needed to be cooled off some to allow them to retain enough inventory to sell until the next new property is available.

If that isn't true (as appears to be the case) it really leads me to believe that Disney World has become too dependent on this DVC revenue stream. That's kinda scary.

Now all that being said ...

I've been a member for 10+ years and have never traded into the Disney Collection, Adventurer Collection and Concierge Collection. I purchased to stay in DVC units.

ITA. I never have used my points for any of these purposes and I probably never will. This change, by itself, would not stop me from buying points resale.

[Goofy4TheWorld]

Press release from the future...

In response to member feedback, Disney Vacation Club members who purchased directly from Disney Vacation Development, Inc will receive additional perks while staying at a Disney Vacation Club resort using points. Under the new benefit program direct members will be provided Quilted Northern 3-ply toilet paper for use during their stay (scented rolls available upon request). Indirect members may, upon request, receive 2 rolls of Scott’s single-ply toilet paper for each 7-day period of stay. As part of Disney’s Green Initiative members receiving Scott’s single-ply toilet paper will also receive a special dispensing device, developed by Disney Imagineering in conjunction with Jiminy Cricket, which will dispense Scott’s single-ply paper one sheet at a time.

Indirect members wishing to reserve their paper allotment are encouraged to make this request 11 months in advance as supplies may be limited. Direct members need not make any requests unless you prefer scented paper.

Thank you and have a magical vacation!

**(3-ply toilet paper not available within the Concierge Collection, the Disney Collection or the Adventurer Collection)

I really should get to work....

[laprana]

I'm with everyone else who has said this change really doesn't affect them...it really doesn't affect me either because, so far, we have only ever used our points to stay at DVC resorts. However, we have talked about using them for a trip to DL and staying at the DL Hotel. We've purchased our points directly from Disney, so, for now at least, that's still a possibility for us. But who's to say that won't change in the future? Who knows? We've also talked about adding a small contract through resale in the future, if we could find the right one. While this change doesn't make me rethink purchasing resale, it does make me pause and wonder what other changes could be coming down the pike that really could make buying resale a bad idea for us.

What bothers me about all of this is that Disney is making this out to be a "benefit" for its members who purchase their points directly. It's not a benefit to them, it's a punishment to those who purchase resale. There's no extra added benefit to direct purchasers that wasn't there before...it's just that Disney hasn't taken it away from direct purchasers, yet.

I also think that saying this "is what the members wanted" is a load of bull. Are the majority of DVC members really worried and concerned about someone who purchased resale being able to take an Adventures by Disney trip or staying at the Poly? I really highly doubt it. I'm surprised Disney hasn't said that this is a result of one of their "surveys."

[Ian]

I also think that saying this "is what the members wanted" is a load of bull. Are the majority of DVC members really worried and concerned about someone who purchased resale being able to take an Adventures by Disney trip or staying at the Poly? I really highly doubt it. I'm surprised Disney hasn't said that this is a result of one of their "surveys."

Yeah, I don't think there's any doubt really. There's absolutey no reason for anyone to care who owns DVC points or how they use them. 200 points bought by someone resale can only go as far as the same points bought by someone from Disney. It's almost absurd to try and claim members wanted this.

The only possible even tenuous connection I could see is that I do believe DVC members have indicated they want more perks ... it wouldn't shock me if Disney twisted those survey results around to support this decision.

[Aurora]

The only possible even tenuous connection I could see is that I do believe DVC members have indicated they want more perks ... it wouldn't shock me if Disney twisted those survey results around to support this decision.

That is EXACTLY what i was thinking, Ian. I'm sure a light bulb went off over someone's head.

And per your above comment:

If that isn't true (as appears to be the case) it really leads me to believe that Disney World has become too dependent on this DVC revenue stream. That's kinda scary.

You really haven't thought before that WDW has become too dependent on DVC? Between 1990 and 2000, Disney opened 11 regular WDW resorts, 2 DVC resorts at Disney World, a theme park gate and a water park.

Between 2000 and 2010, they opened 2 regular resorts and FIVE DVC resorts at WDW, no theme parks and no water parks. I think they've known which side their bread's been buttered on for quite awhile.