19 Jul Has Coronavirus Impacted Your DVC Purchase
The past year has been hard on everybody. Coronavirus seemingly came out of nowhere and proceeded to shut down society.
Since then, negative headlines have dominated social media, causing people to worry about their investments.
As a Disney Vacation Club member, you know that tourism declined dramatically in 2020 and early 2021.
As such, you’re wondering about the uncomfortable question that almost seems petty to ask.
Is your Disney timeshare vacation being affected by the Coronavirus shutdown? Here’s what you need to know.
Let’s Talk about Disney during the Pandemic
Let’s be honest. Your most significant concern involves the change in the value of your ownership interest.
You know that last year was rough on everyone, especially those in the hospitality industry.
You’ve likely heard about mass layoffs and realize that only Walt Disney World has reopened thus far.
Some of you may be worried enough that you’re thinking about selling a DVC timeshare privately. And I don’t blame you.
After all, Disneyland will finally join Walt Disney World by reopening on April 30th, more than 13 months after the Happiest Place on Earth closed.
That much downtime may worry you about your DVC contract’s value, especially if you bought it at Disney’s Grand California Hotel & Spa.
So, let’s take this opportunity to evaluate Disney’s current status.
I suspect that you may want to sell your Disney Vacation Club timeshare by the time I’m done. The news is that shockingly positive.
You see, there’s a factor you’re not considering, and that’s the overwhelming momentum of The Walt Disney Company.
Sure, the pandemic caused a temporary setback, but Disney recovered in style.
The week after Coronavirus shut down society in 2020, the company’s market cap fell to $168 billion. A year later, it reached $357 billion. Yes, that’s more than double.
Disney pivoted toward a streaming service model and has reaped the rewards. Meanwhile, the perception of the company has improved mightily.
Fans admire how Disney managed the crisis and have indicated that they’re more passionate than ever about returning to the parks.
In fact, internal surveys suggest that the next two years could get crazy at Disney theme parks due to unprecedented demand.
I say that before I factor in the 50th anniversary celebration coming to Walt Disney World in October. That birthday party will last until 2023.
Let’s Talk about DVC during the Pandemic
Meanwhile, Disneyland fans are ravenous about returning to the parks. Downtown Disney has experienced maximum capacity on many occasions.
To wit, demand for A Touch of Disney crippled the company’s online system for a while.
What does this mean for you as a program participant? Before I’m through, you may wonder how to sell a timeshare, as there’s a profit-taking opportunity.
Allow me to explain.
DVC doesn’t work like a standard timeshare. The original strategists for this program knew about the overall perception of timeshares…and it wasn’t great.
So, Disney went out and created its own thing, a unique blend of timeshare practices and special Mickey Mouse magic.
With DVC, you possess flexibility that you wouldn’t have with timeshares.
You buy the number of points that makes sense to you at the resort you prefer.
Then, you can stay at that resort as often as your DVC points will allow. And that’s why you’ve never thought about how to sell a Disney timeshare.
You’re happy with the program and don’t understand how much your investment has appreciated in value.
As such, you’re reading this while worrying about how much money you lost on your DVC contract during the pandemic.
Here comes the record scratch moment. Odds are good that your DVC membership has increased in value over the past 15 months!
Let’s Talk about Current DVC Membership Value
I’m not joking, even though I know it sounds too good to be true.
Disney laid off thousands of people because they were so tight on cash. And the parks were closed for many months! How did DVC go up in value?
Well, the answer lies in the brilliance of the program. It’s always proved recession-proof, and now we can add pandemic-proof to that statement.
Before COVID-19 shut down society, the average DVC contract sold for about $130 per point. I’m using some sloppy math here, but it’s accurate enough.
For statisticians, we could also use the median, which would be in the upper $130s, but let’s avoid being so math intensive.
Lately, those numbers are closer to $136 per point and $149 per point. What has changed?
That’s the strange part. While many households have unfortunately suffered mightily during the pandemic, others have saved more money than ever.
People haven’t had to pay for transportation and related costs. So, they didn’t spend money on gas or oil changes or bus/train fare.
Similarly, restaurants, movie theaters, sports stadiums, and concert venues closed for the body of a year.
A large number of Disney fans had no place to direct their disposable income.
However, the one thing they could do was plan for a happier tomorrow.
Let’s Talk the Future of DVC
So, some of the forward-thinking folks purchased DVC contracts, knowing full well they couldn’t use the points for the time being.
Instead, these new members are stockpiling DVC points in anticipation of the end of the pandemic…which is coming soon.
At the current pace, 70 percent of Americans should receive a complete vaccination by the end of June.
When that happens, Walt Disney World and Disneyland can return to business as usual.
Disney knows this better than anyone, and I can prove it. Even though the premise struck some as ridiculous, DVC recently increased prices!
Yes, direct purchases for Disney’s Riviera Resort and Aulani, Disney Vacation Club Villas, both crossed $200 for the first time. This happened in February.
Ask yourself this question. Would Disney raise rates if it didn’t expect people to pay those prices? Of course not!
DVC’s management team perceives the program as undervalued right now! And their pricing always causes ripple effects for resales.
For this reason, the value of your membership just went up yet again! You can tell this by looking at our listings page.
Do you notice how many of those contracts show as “Sale Pending”? The DVC marketplace is arguably hotter than it’s ever been.
Disney fans possess a ravenous appetite for the parks. Now that fate has kept them away for too long, they’re ready to come back in droves.
The Positive Way Coronavirus Has Impacted Your Purchase
For these reasons, your contract hasn’t dropped in value during the pandemic like you’ve feared. Instead, it’s more valuable than ever.
If you don’t plan to visit the parks anytime soon, you should sell your contract.
The value is at/near record highs, but this bubble could burst. DVC was already experiencing inventory issues before Coronavirus.
Also, over the past year, DVC has prevented people from borrowing all their points as a way to control resort capacity.
Well, those unused points must go somewhere. So, inventory will turn into a glaring problem in late-2021, 2022, and 2023.
Guests will flock to Walt Disney World and Disneyland to bring back the magic in their lives.
This much demand will make a visit harder for you. Conversely, it’ll make moving your contract much easier. It’s a seller’s market right now.
This thought leads to another question. How do you sell a DVC timeshare? Just get in contact with DVC Resale Experts!
You can call or email the company with details about your DVC contract. Our experts will take it from there!