My Jentasmic! column at StudiosCentral this week indulges in a little real estate speculation. I can’t claim to have any answers…but I do have a whole lot of questions!
Gas prices are high, airlines are cutting flights, and these days you can’t always check even a single suitcase at the airport without paying a fee. “Staycations” are apparently gaining in popularity, as evidenced not only by the coinage of the phrase, but also by local economic indicators. Everything points to vacation tourism going to hell in a handbasket… which doesn’t seem to bode well for timeshare values in Orlando. On the other hand, that certainly seems to be good news for prospective buyers, who might snap up some great bargains as cash-strapped owners sell, and as financial woes prevent others from buying in.
But what, if anything, will this mean for the value of Disney Vacation Club points? So far, the Orlando tourist economy seems to be holding up better than much of the nation, but some predict that won’t last. And of course, if the nation’s economy continues to falter, plenty of people may need to put their DVC points on the resale market, as airfares, gas prices, and job losses make vacations financially untenable (remember folks, those official unemployment statistics only count the people currently collecting benefits, which don’t include the long-term unemployed or the significantly under-employed).
Broke Hoedown 
My husband’s bribe for my going back to work is that we can buy into DVC. Now really, I can’t rationalize it, given that we probably wouldn’t go to Orlando every year and you seem to need to own if for a decade or so before it pays off. But really, who wouldn’t want to buy into the (supposed) Contemporary DVCs when they go on sale? And I don’t even like the Contemporary.
Personally, I think DVC will take some hits. I wonder how those who already own DVC shares will react once the Contemporary goes on sale? Will they sell their shares elsewhere? I guess since Disney has the right of first refusal, those shares won’t go for rock bottom prices, but it still should be interesting.
Clearly, I should think about the Bar more than I do about DVC.
My husband and I purchased into the Disney Vacation Club in 1993 – free passes until 2000 made it worth it. Plus the cost was sooo inexpensive at that time. We have since bought into Saratoga Springs, Beach Club Villas and Vero Beach. Needless to say we have almost 1500 points each year and continue to borrow. Our children, who are now adults, grew up going to Disney World – mostly once a year but as they got older, they would bring a friend and we would visit 2 or 3 times a year because we didn’t have to pay for accommodations and our passes were free until 2000. We would cook breakfast, grab something quick at the parks for lunch and would have a cookout for dinner. It was a cost effective vacation. As our family has grown, we decided to use the Concierge part – at first it was great, places like the Biltmore in Miami, Woodstock Inn in Vermont, etc. Now, those are disappearing as quick as the “free coffee for the 48 years” we were promised when we purchased. Unless you love Disney and plan on spending a good portion of your vacations there or where they own property, you won’t benefit from it. The short stays under intervals international are only available within 10 days of your arrival (that’s what I’m finding) and now they are enhancing Adventures by Disney which is a full package to other locations. I like to stay for a few days in a nice hotel say..in Boston or Miami, watch my daughter play college ball and go home. You can’t do that any more with DVC. I really think that we did benefit tremendously from it, and continue to use it for our trips to Orlando – California is limited – I like to book my vacations in advance. I’ll be in California next August – I can’t book anything yet. It’s a waiting game….plus I’m from NEW YORK – and each holiday the “locals” book Sunday to Monday (the holiday) one night. This means us who travel from other parts of the country cannot get that last night no matter how far in advance we book it. I think they need a 3 day minimum near holidays. the Contemporary does look nice but I can stay at the Contemporary hotel with my points one or two nights during a stay – why would I want to purchase into it? there is a secondary market for points which Disney generally hasn’t purchased back under the right of first refusal. They also retain at least 51% of the voting rights so any changes members want or do not want they vote down since they have the majority votes. You have to love Disney to purchase into this. Personally, I love Disney – just not the changes they have made to DVC over the past 10 years.
Thank you both for stopping by and commenting!