Hey Disney Vacationers! Disney Vacation Club (DVC) has been on a roll. With the recent announcement of Disney Lakeside Lodge at Disney’s Fort Wilderness Resort coming in 2027, DVC will have added seven new DVC resorts from 2017 to 2027. But why this rapid growth? Why is DVC so focused on adding resorts, particularly near Magic Kingdom? Let’s break down the DVC recent expansion of its resort portfolio.
The New DVC Resorts from 2017 to 2027
Since 2017, DVC has significantly expanded its offerings with the following resorts:
- Disney’s Copper Creek Villas and Cabins
- Disney’s Riviera Resort
- Grand Floridian Villas Expansion
- Disneyland Hotel Villas
- Fort Wilderness Cabins
- Polynesian Island Tower (Opening December 2024)
- Disney’s Lakeside Lodge (Coming 2027)
This impressive lineup not only grows DVC’s footprint but also raises questions about the strategy behind this rapid expansion.
It should be noted at the time of writing, DVC is usually very conservative with adding new resorts. Usually, waiting until the current resort membership is sold out before adding another resort. On some occasions there have 2 resorts options for Walt Disney World at one time. Right now, there are three options; Riviera Resort, Fort Wilderness Cabins, and the Polynesian Island Tower.
A Turning Point: The 2019 Resale Market Policy Shift
A pivotal change occurred before Disney’s Riviera Resort opened. On January 19, 2019, Disney Vacation Club implemented a policy that significantly impacted the resale market. Here’s the gist:
- DVC resale contracts submitted on or after January 19, 2019, for the original 14 DVC resorts, could only exchange into those 14 existing resorts.
- Resale restrictions on new properties: Resorts like Riviera, Disneyland Hotel Villas, Fort Wilderness Cabins, and potentially others allow resale buyers to stay only at their deeded resort, not at other DVC properties.
This policy essentially created two tiers of membership:
- Direct Purchase Members: Can stay at all DVC properties.
- Resale Members: Limited to specific resorts based on their contracts.
But that’s not all. After the 2019 policy shift, Disney Vacation Club became more proactive in making members—both new and existing—aware of an important option: DVC also offers previously sold-out resorts directly. The key difference? Unlike resale market contracts, direct resale contracts from Disney come without restrictions.
To sweeten the deal, DVC regularly runs promotions targeting existing members, allowing them to purchase these “resale” contracts at lower prices per point than Disney’s advertised rates. This strategy provides a competitive edge over third-party resale markets and further incentivizes members to stick with Disney when expanding their membership portfolios.
By effectively undercutting the traditional resale market with direct offers, Disney Vacation Club not only retains control over pricing but also reinforces the value of buying directly—whether it’s a new resort or a previously sold-out one.
Why DVC Wants to Shrink the Resale Market
The resale market has long allowed buyers to purchase DVC memberships at significantly lower costs than direct purchases. However, this undercuts Disney’s control over pricing and the perceived value of the product.
The DVC resale market offers an enticing option for prospective buyers, typically providing contracts at significantly lower prices than purchasing directly from Disney Vacation Development. Below is a detailed comparison of average resale prices versus direct prices as of October 2024, illustrating potential savings per point.
| Resort | Average Resale Prices (October ’24) | Direct Prices (Disney Vacation Development)* | Difference Per Point (Direct – Resale) | Percentage Savings with Resale |
|---|---|---|---|---|
| Animal Kingdom | $110 | $210 | $100 | 48% |
| Aulani | $99 | $225 | $126 | 56% |
| Bay Lake Tower | $136 | $275 | $139 | 51% |
| Beach Club | $145 | $275 | $130 | 47% |
| Boardwalk | $123 | $240 | $117 | 49% |
| Boulder Ridge | $108 | $215 | $107 | 50% |
| Copper Creek | $140 | $250 | $110 | 44% |
| Disneyland Hotel | $185 | $239 | $54 | 23% |
| Grand Californian | $242 | $310 | $68 | 22% |
| Grand Floridian | $167 | $230 | $63 | 27% |
| Hilton Head | $72 | $165 | $93 | 56% |
| Old Key West | $95 | $205 | $110 | 54% |
| Old Key West – Ext | $114 | $205 | $91 | 44% |
| Polynesian | $165 | $225 | $60 | 27% |
| Riviera Resort | $116 | $225 | $109 | 48% |
| Saratoga Springs | $99 | $205 | $106 | 52% |
| Vero Beach | $56 | $150 | $94 | 63% |
Here’s why Disney Vacation Club has been working to minimize resale market influence:
- Value Preservation: Resale prices can drop significantly below Disney’s direct pricing, which devalues the product.
- Direct Sales Advantage: With new resorts restricted from resale market exchanges, DVC can encourage direct purchases by emphasizing the exclusivity and flexibility of booking at all properties.
Disney’s Strategy: Buying Back Old Contracts
To maintain control over its inventory and extend the value of older contracts, Disney Vacation Club has been actively buying back contracts through its Right of First Refusal (ROFR) clause. This allows Disney to purchase resale contracts before they are sold to other buyers, often to resell them with extended deed expiration dates.
The following data from DVC Resale Market provides insight into buyback activity for 2024. Notably, there have been no buybacks for several resorts, including Aulani, Grand Californian, Riviera Resort, Bay Lake Tower, Beach Club, Boardwalk, Boulder Ridge, Copper Creek, Disneyland Hotel, Saratoga Springs, Vero Beach, and Hilton Head.
| Resort | Buybacks | Number Sold | % Bought Back |
|---|---|---|---|
| Animal Kingdom | 28 | 469 | 6.0% |
| Grand Floridian | 9 | 228 | 3.9% |
| Old Key West | 50 | 366 | 13.7% |
| Polynesian | 28 | 371 | 7.5% |
This data highlights Disney’s focus on Old Key West, which has the highest buyback percentage at 13.7%. This aligns with the strategy to extend the original 2042 expiration date to 2057, adding long-term value to its portfolio.
Why the Rapid Expansion?
Beyond curbing the resale market, the rapid addition of new DVC resorts serves several purposes.
1. Incentivizing Direct Purchases
The more new resorts DVC builds after 2019, the more compelling the case for buying direct. If resale buyers can’t access these newer resorts, the value of direct contracts increases.
2. Meeting Increased Magic Kingdom Demand
According to Len Testa of Disney Dish, proximity to Magic Kingdom is a key factor in DVC resort demand. The closer a resort is to Magic Kingdom, the higher its desirability.
And with Magic Kingdom’s major expansion on the horizon, demand for nearby accommodations is expected to skyrocket. Planned projects like Cars Land and Villains Land (expected to open between 2027 and 2029) are set to increase the park’s capacity by an estimated 16,000 guests.
Even if attendance doesn’t hit that number daily, the ripple effect will drive up demand for lodging. This is why DVC has prioritized expanding near Magic Kingdom.
3. Strengthening the Portfolio
Adding resorts like Riviera, Polynesian Island Tower, and Lakeside Lodge not only diversifies the portfolio but also allows DVC to capture demand from both new and existing members.
What’s Next for DVC?
With Disney Vacation Club’s rapid expansion, speculation about future projects is inevitable. Will we finally see a second tower at Disney’s Contemporary Resort? Only time will tell.
One thing is clear: Disney Vacation Club’s recent expansion isn’t just about building more resorts—it’s about shaping the future of the membership experience. Whether you’re a prospective buyer or a seasoned member, the strategy behind DVC’s growth is worth watching.
So, what do you think? Is DVC’s expansion a brilliant strategy or a challenge for existing members? Let’s discuss! Send your comments to @itsnatebishop on the socials.
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Meet the Author: Nate Bishop
I’m a die-hard Disney fan with 38 years of visits under my belt, having stepped into Disney World 120+ times. Proud to be a Disney Annual Passholder, a Vacation Club member since ’92, a Castaway Club Member, and a runDisney enthusiast. Oh, and I’ve graduated from the Disney College of Knowledge. Need Disney insights or planning tips? I’m your guy!
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