Disney Vacation Club (DVC) has been a popular choice for Disney enthusiasts who want to enjoy the magic of Disney resorts year after year. But a recent corporate filing with the State of Florida has sparked speculation that DVC may be considering a major shift in its vacation club product offerings. The creation of the Palmetto Trust Association, Inc., on August 11, 2023, which shares the directors and officers of Disney Vacation Development and many of DVC’s primary directors like Senior VP of Disney Vacation Club, Bill Diercksen, has set the rumor mill abuzz.
Trust-Based Ownership: A New Trend in Timeshares
Trust-based ownership is not a new concept in the timeshare industry. In fact, several major players in the market have already adopted this model. Companies like Wyndham and Marriott, for instance, have offered a trust product to “bundle” certain timeshare offerings or interests. For instance, Wyndham offers “Club Wyndham Select,” which allows members to deed interest or points into a select resort, and “Club Wyndham Access,” where members purchase a “certificate” for a certain amount of points providing access to a group of resorts. This essentially means buying into the “trust.”
This model has several benefits from a business perspective. It allows companies to manage their inventory more efficiently, as they can allocate resources across multiple properties rather than tying them to a single resort. It also offers potential benefits for customers, as it provides more flexibility and diversity in terms of available resorts and accommodations.
What a Trust-Based DVC Might Look Like
If DVC were to adopt a similar model, it could potentially start with multiple ‘home’ resorts in the collection, which could expand over time. Initial home resorts might include The Cabins at Fort Wilderness, Riviera, Aulani, Polynesian, and Disneyland Hotel, with others added as the trust grows. Instead of declaring new inventory into a single resort, DVC would declare inventory to become part of the trust. This would give owners in the trust 11-Month Home Resort booking availability at all the properties, points, and inventory owned by the trust. Furthermore, trust owners could also likely have 7-Month access to all Disney Vacation Club properties, similar to the current system.
This change could significantly impact the way DVC members plan their vacations. Currently, members who own a deed at a specific resort have an advantage when it comes to booking accommodations at that resort. With a trust-based model, this advantage might be extended to multiple resorts, making it easier for members to experience different Disney destinations.
Potential Costs and Considerations
The cost of ownership in the trust is currently unknown, and any estimates are based on assumptions and speculation. The ownership interest in the trust would likely need to be less than the total number of deeded years for a resort, but the trust offers more home resort priority. Do these balance out? Looking at Wyndham as an example, the Club Wyndham Access option, representing their trust product, has historically sold for a higher price than their traditional deeded interest product. DISboards users have estimated a possible $25 per point premium for ownership into the trust compared to the current deed interest. This could push prices to $250 per point or higher for ownership into a trust-based DVC product.
Looking Ahead: What Could This Mean for Future DVC Members?
As we move forward into 2024, it will be interesting to see how these rumors and speculations play out. If DVC does indeed choose to adopt a trust-based model, it could represent a significant shift in the timeshare industry. Due to Disney’s influential reputation, they have consistently provided value in the realm of timeshare purchases. However, this decision could further align them with the traditional timeshare business model we see from Wyndham, Marriott, and others.
It’s important to note that the details here are speculative, based on historical trends with other timeshares and insights from DISboards and other online forums. These potential changes could have a significant impact on how DVC operates and how members plan their vacations. However, until more concrete information is released, all we can do is speculate and wait.
No matter what happens, whether through traditional deeded ownership or a new trust-based model, DVC will likely continue to offer a premium timeshare product to members, providing unforgettable vacations at some of the most magical places on earth.
We’re eager to hear your thoughts on this timeshare trust rumor and what it might mean for the future of Disney Vacation Club. Share your thoughts in the comments below! Also, stay tuned to DVCFan.com for the latest Disney Vacation Club news and information and join in the conversation over in the DVC Fan Facebook Group.