Disney’s timeshare division, Disney Vacation Club (DVC), has experienced incredible growth since it first began in 1991, and it has become the highest-rated in the world, with one of the largest resale markets in the industry. An appealing aspect of DVC has been that in its resale market, owners could sell their contracts for some of the highest rates in the timeshare resale market. Disney has long denied resale customers access to using their points for non-DVC hotel rooms, cruise ship tickets, or other items that DVC owners who purchase directly through Disney have access to, but that hasn't stopped the DVC resale business from exploding. In 2016, Disney made its first dramatic moves into discouraging purchases via the resale market when they stopped offering the Membership Extras to those who purchase DVC via resale. These extra perks include special events, discounts at Disney stores and resorts, and various other benefits. Then last year, Disney again refined the Membership Extras requirements. Now, Disney is cracking down on the resale market in ways that may cause many to question the value of purchasing via resale. Beginning this month, resale contracts purchased for the current 14 DVC resorts can only be used at those 14 resorts. Moving forward, contracts purchased for any new resort, including the two currently in development at WDW, via the resale market will only be able to be used at a specifically deeded resort. Of course this comes less than a week after Disney rolls out a $6 per point increase for DVC contracts. This likely means that those wanting to rid themselves of their Disney timeshares will struggle to sell them for what they owe, which may in turn increase the number of contracts that are foreclosed upon. That, along with a possible increase in those opting for the buyback route instead of selling their contracts via a third party will mean Disney could see significant increases in the number of contracts that return to the company. This would give Disney the ability to sell more full contracts long-term. All the new restrictions only apply to members who purchase pre-existing contracts via third parties. DVC is made up of fans who spend tens of thousands of dollars to ensure that they will vacation with the company for decades to come. The changes mean these fans now might not be able to escape the contracts they made with Disney and instead forcing foreclosure or buybacks that won't cover the full amount of what the customers owe.
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