Disney (DVC) Points System Restricting Resales ...

[SueDonJ]

Something interesting over on the TUG DVC forum: New Resale Restrictions - now confirmed by DVC

Disney Vacation Club's point system is different from Marriott's in that DVC points are sold with a home resort, with reservation windows of 11 months at the home resort and 7 months at all others. But for the first time they're implementing resale restrictions effective 1/19/19:

- "only Members who purchase directly from Disney will be able to use their Vacation Points at the 14 existing Disney Vacation Club Resorts or future Resorts—such as Disney’s Riviera Resort or Reflections – A Disney Lakeside Lodge. Resale contracts purchased for the existing 14 Disney Vacation Club Resorts will only be able to exchange Points into those 14 Resorts."

This is worth watching/knowing when you consider that the Marriott DC governing docs allow for similar internal exchange restrictions, and some Marriott sales reps are only too happy to threaten that it may happen someday.

(I don't want to be responsible for double-posting so please join the conversation there.)

 

[Big Matt]

So I guess that means that they are limiting a secondary market for new resorts. It would seem that it would then create a much more active rental market over time for the new resorts.

 

[CalGalTraveler]

Each system is devaluing in their own way. For HGVC they are creating "by Hilton Clubs" (bHC) in major cities such as NYC which gives the rest of the HGVC system only a small last minute window to book the leftovers from owners. However they recently expanded the window from 45 days to 60 days for regular HGVC owners because it was perhaps too restrictive.

The other way that HGVC is devaluing is by assigning much higher point values to reserve the newer resorts so they are less accessible to legacy HGVC owners and resale buyers. However this is easily resolved by buying another inexpensive resale for < $8k and about $1000/year which keeps the MF paid and the system solvent by avoiding defaults on legacy units. Legacy owners and resale buyers can also reserve the older resorts for the same point values so you only need to buy another resale if you want access to the newer resorts.