Lost Leader: DVC and Adventures by Dis

[cmark]

My letter to member services explains the mess:
Dear Sir or Madam:

On Thursday, August 14, 2009, I called member services about the newly released Adventures by Disney trip to Ecuador and Galapagos Island leaving on June 16-June 25, 2009. I was informed that it would be 594 points per person. I called today to book the trip for my wife and me only to be told that the early booking rate is no longer available. As you are aware, the early booking sheet says that early booking must be done 120 days out. Although it is subject to availability, the trip is still available, but the discounted rate is not.

Then this is not an early booking rate: but a loss leader. (which is illegal under the consumer protection laws in Georgia (my state) and Florida (DVC’s state). I have followed up with Adventures by Disney. This trip is not full: less than 12 people have booked. It only became available to anyone (cash or DVC) on August 1. Yet they say that the early booking rate is no longer available: only 16 days after starting to market the trip. Neither parts of Disney have taken the loss leader off their websites. The loss leader is still being actively used to mislead consumers into contacting Disney for this trip.

I expect to have the trip booked for us at the rate stated today and on Thursday: 594 vacation points each for a total of 1,188 points. I expect a timely response to this demand.

From a marketing stand-point, lost leaders are inconsistent with the excellent reputation that the Disney family has for its vacation businesses. In fact, as a stockholder of Disney, I am disappointed that any division of my company would engage in such conduct.

I must also add that the DVC staff that handled my concerns were very professional! They understood my concerns and did everything in their powers to resolve the issue to my satisfaction. However, they could not (after repeated phone calls by them) get the Adventures by Disney group to correct the lost leader and honor their offer.

I hope that you will be able to resolve this matter.

 

[vicki_c]

Loss leader pricing is not illegal as far as I know, but that's not what you're describing.
http://en.wikipedia.org/wiki/Loss_leader_pricing

I think you are talking about bait and switch, in which one item is offered for sale, but there really aren't any (or many) of those items available at the price offered.
http://en.wikipedia.org/wiki/Bait_and_switch

Likewise, advertising a sale while intending to stock a limited amount of, and thereby sell out, the loss-leading item advertised is legal in the United States. The purveyor can escape liability if they make clear in their advertisements that quantities of items for which a sale is offered are limited.

I hope they are willing to do something for you, but I assume if they did, it would be to maintain your goodwill, not because they're worried about doing anything illegal.

 

[rhodymom]

My letter to member services explains the mess:
Dear Sir or Madam:

On Thursday, August 14, 2009, I called member services about the newly released Adventures by Disney trip to Ecuador and Galapagos Island leaving on June 16-June 25, 2009.

How did you call them on August 14, 2009?

 

[cmark]

Maybe I am too frustrated to think right! Bait and switch, loss leader, August 14, 2009! Ok, don't beat me. Understand my frustration at being told to spend 114 more points for the same vacation! That will cost me going back to WDW at all for a year if we take the higher rate. So my frustration has me crazy.

This is not fair.

 

[JimMIA]

I don't know whether Florida law would take issue with what you ran into or not, but I certainly would not use any online website as a source of legal advice. Laws - especially consumer protection laws - vary too much from state to state.

Here's a link to the Florida Division of Consumer Services. I think they are the appropriate agency to call in Florida. If they are not precisely the right agency, they will know who is and can refer you.

 

[bobbiwoz]

Perhaps it's like the airlines when only a certain number of people get the lowest rates, and those seats are already booked. I don't know how we can check that some members have already gotten that discounted rate.

All I can offer is best wishes and some Pixie dust.

Bobbi

 

[justloveit]

I am sorry for your frustration and am sending lots of best wishes and pixie dust!

 

[vicki_c]

I don't know whether Florida law would take issue with what you ran into or not, but I certainly would not use any online website as a source of legal advice. Laws - especially consumer protection laws - vary too much from state to state.

Here's a link to the Florida Division of Consumer Services. I think they are the appropriate agency to call in Florida. If they are not precisely the right agency, they will know who is and can refer you.

Just to be clear -- I didn't intend to suggest that Wikipedia was the source for legal advice!! I just believe that the OP was confused by the terminology and wanted to look up a quick definition of the terms -- that's all! From my own (non sanctioned by any state!) legal knowledge, what the OP ran into is not illegal, even in Florida, just irritating!

 

[CarolMN]

I couldn't find the points chart for the ABD "Ecuador and Galapagos Island" on the website.

But the last sentence of the "fine print" on the early booking chart for the other ABD trips says that Program terms and conditions are subject to change without notice.

I hope DVC figures out a way to give the OP the price that was originally quoted, but given that sentence, I don't think any law requires them to do so.

 

[wdw1972]

You don't have a leg to stand on. It's like airfares - you check today & see a certain price, then go back tomorrow to book & it might not be there. Disney hasn't done anything illegal - you simply lost out by waiting. It doesn't matter if only 12 people have booked or 112 people.

Sorry you lost your "deal" - but you surely can't expect anything from Disney on this!

 

[CraftyMouse]

You don't have a leg to stand on. It's like airfares - you check today & see a certain price, then go back tomorrow to book & it might not be there. Disney hasn't done anything illegal - you simply lost out by waiting. It doesn't matter if only 12 people have booked or 112 people.

Sorry you lost your "deal" - but you surely can't expect anything from Disney on this!

Well said.

 

[flexsmom]

DCL pricing works the same way. Looking on the website, there are ranges of pricing for each stateroom category, with the lowest for each designated as or known as "early booking discount". That said - as the ship fills, or as each category fills, the pricing tiers automatically jump up in their pricing system. On the day that the Panama Canal crossings for this year were announced (one done in May and one in August), the pricing jumped tremendously from the beginning of the day to the end of the day as the ship filled. It was sold-out by the end of the first day, I believe - and only those first VERY early people got the "early booking discount".

It appears that the ABD pricing is done the same and it is tiered as the trips fill - and from one day to the next, you ended up in the next tier.

Airlines do the same thing with frequent flyer miles - XX miles for a first class ticket today, but as soon as the total number they want to give away for that amount are gone, then it's YY number just seconds later for the next person looking at the same flight.

I don't think this is uncommon, and I also don't believe this is an example of a loss-leader, since I would go out on a limb and say there's no loss associated with even the lowest price price people pay who got the Early Booking price.