I mean at this point, why is anyone buying direct?

[Cfabar1]

the direct sales drop is a fairly straight correlation between the date that $10 increase kicked in which was also when the decent RIV incentives ended and minor VGF incentives started… I just think $217 is too near the limit of your average sit on the fence buyer who just walks on by

Absolutely it is. We knew we wanted DVC and initially thought we’d go direct. When we learned it was over 30k to do so, we decided to go resale.

We probably would have bought direct if we could have bought 50-75 points direct at that price or a lower pp cost at 150. It felt like too much a gamble.

 

[Stank]

I get that in general it's a horrible idea to buy direct, and I would never buy a new car but... Can someone check my math here? Comparing fully stacked resale with the same UY, without negotiating, buying direct is an extra $6825 with current incentives on a 175 point contract (a little less on 150 points). Let's assume in 20 years I decide I'm done and resell. If I spread that Blue Card fee over 20 years, I get $341.25/year, and attend a few Moonlight Magic events yearly and make use of the lounges every opportunity I can, is it worth it to not have to go through the stress of negotiating, ROFR, and the ability to actually have points in my account this week and start planning a Welcome Home trip without getting close to worrying about banking deadlines and closing dates? I get that if I sell earlier, it won't make sense and if I'm blessed to still be travelling in my '90s, I'd be laughing... I would just hate to "leave the lot" staring at depreciation but what's the true value of the Blue Card? (I currently have AP & Disney Visa so not including those benefits)
TIA!!!

Direct makes sense if you’re absolutely sure you’ll hold DVC long-term. The benefits definitely are apparent with full resorts flexibility at 7 months, confidence you’ll be locked into and ride the wave of future Direct benefits, and be able to flex a Blue Card for lounge access with friends/family. Moonlight Magic is big benefit if it lines up schedule-wise, or if you’re a local.

You may hit a stumbling block with potential paywalling of DVC benefits with Direct “plus” if Disney chooses to further monetize. Just remember it’s a lock for Resale to be treated as third class/stepchildren in any future scenario.

Direct is like a $500/year premium credit card; Resale is the $0/year option. In many cases it’s more trouble than it’s worth, but for some there’s definite value—you just have to work harder to make sure you’re getting that value—and remembering to net out that membership cost from the value you’re receiving. Personally, as I get older, I fret less about the absolute best deal. With DVC, I build in an “irrational/emotional” buffer. Ultimately, DVC on paper doesn’t need to necessarily break even with me. If it’s close, I’m happy. I get to walk to my hotel a few minutes from Magic Kingdom at 10 PM instead of the dreaded 45 minute trek with crowds. An offsite hotel is far cheaper than DVC. But it’s also costing you an hour or two per park day.

Also, with Direct you’re able to get a loaded contract with points ready to use. If you’re comparing Direct with the cheapest resale option, often that resale is the most marketable (lowest cost per point) because you have to wait a year to vacation.

 

[Ruttangel]

Absolutely it is. We knew we wanted DVC and initially thought we’d go direct. When we learned it was over 30k to do so, we decided to go resale.

We probably would have bought direct if we could have bought 50-75 points direct at that price or a lower pp cost at 150. It felt like too much a gamble.

I think Disneyland is more of a 3-5 day stay every other year and in that scenario 150pts is too many when they launch VDH, they could even keep the member perk limit at 150 but allow people to buy less

 

[Jayunit09]

Direct makes sense if you’re absolutely sure you’ll hold DVC long-term. The benefits definitely are apparent with full resorts flexibility at 7 months, confidence you’ll be locked into and ride the wave of future Direct benefits, and be able to flex a Blue Card for lounge access with friends/family. Moonlight Magic is big benefit if it lines up schedule-wise, or if you’re a local.

You may hit a stumbling block with potential paywalling of DVC benefits with Direct “plus” if Disney chooses to further monetize. Just remember it’s a lock for Resale to be treated as third class/stepchildren in any future scenario.

Direct is like a $500/year premium credit card; Resale is the $0/year option. In many cases it’s more trouble than it’s worth, but for some there’s definite value—you just have to work harder to make sure you’re getting that value—and remembering to net out that membership cost from the value you’re receiving. Personally, as I get older, I fret less about the absolute best deal. With DVC, I build in an “irrational/emotional” buffer. Ultimately, DVC on paper doesn’t need to necessarily break even with me. If it’s close, I’m happy. I get to walk to my hotel a few minutes from Magic Kingdom at 10 PM instead of the dreaded 45 minute trek with crowds. An offsite hotel is far cheaper than DVC. But it’s also costing you an hour or two per park day.

Also, with Direct you’re able to get a loaded contract with points ready to use. If you’re comparing Direct with the cheapest resale option, often that resale is the most marketable (lowest cost per point) because you have to wait a year to vacation.

I agree. We debated going resale in april of 2022. We wanted to book a trip for November 2022 and knew it would be really tough once/if we closed in time. The difference at the time in Direct (225) and Resale (175) at CCV for the use year we wanted was $7,250.

My wife and I, with a very young family, decided that $157/year extra over 46 years was worth the flexibility to use future resorts and get the points right away. We also got the 2021 points to use for our first stay and spoiled ourselves!

I think in some cases direct is worth it.

 

[tom1944]

I agree. We debated going resale in april of 2022. We wanted to book a trip for November 2022 and knew it would be really tough once/if we closed in time. The difference at the time in Direct (225) and Resale (175) at CCV for the use year we wanted was $7,250.

My wife and I, with a very young family, decided that $157/year extra over 46 years was worth the flexibility to use future resorts and get the points right away. We also got the 2021 points to use for our first stay and spoiled ourselves!

I think in some cases direct is worth it.

I would agree with that.

When I started looking BLT was $275 and resale was $160 and trending down. I had not yet planned a trip.

Now with BLT under 140 I can see how you could buy direct

 

[hilltopper152]

I imagine it’s more about brand integrity. If Disney was willing to do it, and they might have been under Chapek, I’d expect the price to be $100 to $130 per point. No way it’s anywhere near $20.

Interesting. I thought $20 was pricey for very little non guranteed benefits. Thats a pricey option just so I can use points at RIV. The created this riff and I don't think I want to pay them for such a crappy upgrade of services. Economically the AP part may get families to bite for that or more. $100 is crazy. 15k for a 150 point contract would just crash the price of resale and basically incentivize nobody use it which seems like the opposite of what they would want.

 

[intamin]

Interesting. I thought $20 was pricey for very little non guranteed benefits. Thats a pricey option just so I can use points at RIV. The created this riff and I don't think I want to pay them for such a crappy upgrade of services. Economically the AP part may get families to bite for that or more. $100 is crazy. 15k for a 150 point contract would just crash the price of resale and basically incentivize nobody use it which seems like the opposite of what they would want.

100 dollars or more I could see. Why would they give the people who bought resale a bargain compared to people who bought outright from them? You have people who bought OKW for 80 pp resale, 20 pp to upgrade when they were selling OKW for 160 or however much it was would be a giant slap in the face to people who bought direct.

 

[hilltopper152]

100 dollars or more I could see. Why would they give the people who bought resale a bargain compared to people who bought outright from them? You have people who bought OKW for 80 pp resale, 20 pp to upgrade when they were selling OKW for 160 or however much it was would be a giant slap in the face to people who bought direct.

20 and 100 are big differences. 100 means they drive resale down more and make price point even more attractive to opt for and I imagine there isn't many resale buyers looking to pay that much to get perks. The perks aren't a great selling point to begin with for direct. Most people buying direct just need the instant gratification of points and exactly what they want. Secondly, the ability to use at new resorts. 100 pp basically allows me to take old resale points and use at RIV??? Might as well buy RIV resale at that point.

It comes down to whether they want to actually make money on this or just have an option for the few. I also do not believe DVC cares about a slap in the face to anyone. I do not view them as the best when it comes to taking care of their owners.

 

[Bearval]

20 and 100 are big differences. 100 means they drive resale down more and make price point even more attractive to opt for and I imagine there isn't many resale buyers looking to pay that much to get perks. The perks aren't a great selling point to begin with for direct. Most people buying direct just need the instant gratification of points and exactly what they want. Secondly, the ability to use at new resorts. 100 pp basically allows me to take old resale points and use at RIV??? Might as well buy RIV resale at that point.

It comes down to whether they want to actually make money on this or just have an option for the few. I also do not believe DVC cares about a slap in the face to anyone. I do not view them as the best when it comes to taking care of their owners.

What I can see Disney trying to do is charge a fee per point at the 7 month window for you to use restricted points at the “newer” resorts and this will not be cheap. My question is , if this was to occur where would that money go? Right into disneys pocket or would a percentage go to the MFs of that resort to lower the costs for its members?

 

[hilltopper152]

What I can see Disney trying to do is charge a fee per point at the 7 month window for you to use restricted points at the “newer” resorts and this will not be cheap. My question is , if this was to occur where would that money go? Right into disneys pocket or would a percentage go to the MFs of that resort to lower the costs for its members?

Seems like they would just keep it for them. The cutting off of access is arbitrarily made up to encourage direct sales so I don't see any legal reason the profit would not just be kept. I think this idea seems very logical. Some variation of this is what I think is most likely to happen if ever. Maybe resale pays a fee for access at 5 months or something like that.

 

[tom1944]

Resale purchasers are getting a lot of the perks anyway.

 

[Sandisw]

What I can see Disney trying to do is charge a fee per point at the 7 month window for you to use restricted points at the “newer” resorts and this will not be cheap. My question is , if this was to occur where would that money go? Right into disneys pocket or would a percentage go to the MFs of that resort to lower the costs for its members?

Any pay for changing restricted points would go to DVC and BVTC..dues have to do with the operations of the resort and this additional fee would be to enhance exchanges for some owners.

The DVC resort agreement with BVTC already mentions that they can charge fees for exchanges and that is what this would be.

 

[hilltopper152]

Resale purchasers are getting a lot of the perks anyway.

What perks? Pool hopping?

 

[DonMacGregor]

Resale purchasers are getting a lot of the perks anyway.

???

 

[intamin]

20 and 100 are big differences. 100 means they drive resale down more and make price point even more attractive to opt for and I imagine there isn't many resale buyers looking to pay that much to get perks. The perks aren't a great selling point to begin with for direct. Most people buying direct just need the instant gratification of points and exactly what they want. Secondly, the ability to use at new resorts. 100 pp basically allows me to take old resale points and use at RIV??? Might as well buy RIV resale at that point.

It comes down to whether they want to actually make money on this or just have an option for the few. I also do not believe DVC cares about a slap in the face to anyone. I do not view them as the best when it comes to taking care of their owners.

Well I mean that's kind of the point. Disney is trying to separate the two and effectively kill the resale market over the long term because right now we have the legacy resorts. The O14. But as more time goes on resale will become less relevant because a lot of new owners are going to say I want to be able to try all of the resorts and not just my home resort unless that person absolutely loves their home resort. Remember, it's only been 4 years since they implemented the resale restrictions, they knew going into this this is a 20 year game at least until that first set of 2042 resorts expire. DVC can always step in and ROFR whatever they want once the price point gets too low on the resale market. But do you think Disney is trying to reward people who bought through the resale market like "Hey congrats on finding a great deal, here's a cheap upgrade to make your points just as valuable as the people who paid us significantly more". LOL. If you allow this conversion people will be like why did I buy direct in the first place then? And then people will say I'm just going to buy resale and then once Disney offers a cheap upgrade I'll do it. 20 dollars per point to upgrade is dirt cheap. I mean trust me I own 2 resale contracts and I hope you're right because I'd upgrade them so fast LOL.

 

[Bearval]

Any pay for changing restricted points would go to DVC and BVTC..dues have to do with the operations of the resort and this additional fee would be to enhance exchanges for some owners.

The DVC resort agreement with BVTC already mentions that they can charge fees for exchanges and that is what this would be.

I can see them doing this as soon as there is a good amount of restricted contracts in circulation and they begin to complain they can’t get a room at their resort because they waited to late to book. Disney can then say” for a modest fee of an additional $10 pp point that you are going to use you can book a room at OKW or AKL.”

 

[Sandisw]

I can see them doing this as soon as there is a good amount of restricted contracts in circulation and they begin to complain they can’t get a room at their resort because they waited to late to book. Disney can then say” for a modest fee of an additional $10 pp point that you are going to use you can book a room at OKW or AKL.”

That is my guess as well. Any point washing down the line will be a per reservation basis vs complete conversion to unrestricted.

That makes more sense to me because it still keeps the goals of restrictions in place…but gives owners with them an opportunity to exchange for that occasional trip.

 

[tom1944]

What perks? Pool hopping?

Discounts on purchases

 

[Sandisw]

Discounts on purchases

I realize you had good luck this past trip but that is not the norm and many people are not given them.

And, we know that mobile check out does it automatically but I when I did have a white card, and experimented, i was indeed denied until I pulled up my blue card.

My family member who is DVC N was also denied when visiting in the spring.

 

[Robbie Cottam]

That is my guess as well. Any point washing down the line will be a per reservation basis vs complete conversion to unrestricted.

That makes more sense to me because it still keeps the goals of restrictions in place…but gives owners with them an opportunity to exchange for that occasional trip.

Interesting point …..

If Disney were to charge a one time fee, of 10 dollars per point every time someone couldn’t find accompanying, it would totally invalidate and perceived savings of 20 dollars per point….