What does the future hold for DVC?

[disneynutz]

I wonder whether it's more profitable for Disney to rent out deluxe rooms for the $200/night convention rates or turn them into DVC and sell points. That would be interesting to see the numbers.

Apparently the numbers makes conversion to DVC a profitable choice. Even after conversion, Disney has DVC units that they use for cash guests so it's a win, win for Disney.

There are a lot of DVC rooms available on Orbitz.

Bill

 

[Disn3yVision]

Part of me wonders if they are making these astronomical point requirements (such as with the bungalows) because they are accounting for the fact that many people will just rent points to stay in them? As renting has become more popular Disney could be finding a way to monetize that. By using rented points people are getting a signicant discount on the rooms and DVC is still getting their money on the price we paid on the upfront purchase (especially considering how expensive direct points are now)...

 

[disneynutz]

Part of me wonders if they are making these astronomical point requirements (such as with the bungalows) because they are accounting for the fact that many people will just rent points to stay in them? As renting has become more popular Disney could be finding a way to monetize that. By using rented points people are getting a signicant discount on the rooms and DVC is still getting their money on the price we paid on the upfront purchase (especially considers how expensive direct points are now)...

I think that Disney is expecting that the high point rooms will not get booked by DVC owners and that they will use them for cash guests. Again a win, win for Disney.

Bill

 

[tjkraz]

I think that Disney is expecting that the high point rooms will not get booked by DVC owners and that they will use them for cash guests. Again a win, win for Disney.

Bill

So you don't think that members are willing to pay 120 points per night for Bungalows...or renters approx $1500. But you believe Disney has a healthy supply of cash guests willing to pay $2000-2500 (plus 12.5% tax) per night?

(Incidentally, the bungalows are already fully booked about 130 of the next 210 nights.)

 

[KAT4DISNEY]

I wonder whether it's more profitable for Disney to rent out deluxe rooms for the $200/night convention rates or turn them into DVC and sell points. That would be interesting to see the numbers.

I think both are profitable and Disney will keep doing both. One is much more an upfront in the pocket vs a long term steady income so probably very difficult to compare.

 

[disneynutz]

So you don't think that members are willing to pay 120 points per night for Bungalows...or renters approx $1500. But you believe Disney has a healthy supply of cash guests willing to pay $2000-2500 (plus 12.5% tax) per night?

(Incidentally, the bungalows are already fully booked about 130 of the next 210 nights.)

I think that DVC has some owners who don't mind spending mega points others maybe for one or two nights, I also know that Disney has high cash paying guests who don't mind paying thousands per night for a unique destination. The Four Seasons seems to be doing well.

The bungalows are booked but we don't know by who and not all are declared yet.

Bill

 

[tjkraz]

I think that DVC has some owners who don't mind spending mega points others maybe for one or two nights, I also know that Disney has high cash paying guests who don't mind paying thousands per night for a unique destination. The Four Seasons seems to be doing well.

The bungalows are booked but we don't know by who and not all are declared yet.

Bill

Obviously Walt Disney World attracts some very affluent guests. Disney itself operates dozens of suites and THOUSANDS of deluxe hotel rooms which cost every bit as much as Four Seasons. Nevertheless, this idea that high bungalow pricing is part of some scheme to force them back to CRO 60-days out is growing more ludicrous by the day.

75% of the bungalows are declared and only 30% of points at the Poly are sold. It stands to reason that as it continues to sell, Poly will attract buyers who are drawn to the bungalows.

Meanwhile, bungalows will also be booked by owners of the dozen other DVC properties--a process that has been occurring program-wide for the last 25 years.

 

[Sur]

I honestly think Disney should create another theme park location- spread it out to spread out the people. California and Florida have been ideal, weather-wise, but there must be other locations for PARKS, not just accommodations.

We like to go to DL for diversity, and will consider Disney Shanghai, but Disney Paris' reputation kept us away. Keep the same magic in a new location and people will come.

 

[DougEMG]

Another resort in Dl would be nice, then we might actually be able to go there.

I'm not in favour of any more off site resorts though. I'm not convinced that Disney can compete without the parks. Also I'm worried that most people buying an offsite resort will actually want to spend more time at WDW than at an off site resort.

 

[Sur]

Another resort in Dl would be nice, then we might actually be able to go there.

I'm not in favour of any more off site resorts though. I'm not convinced that Disney can compete without the parks. Also I'm worried that most people buying an offsite resort will actually want to spend more time at WDW than at an off site resort.

Not just a resort (Vero, Aulani, Hilton Head) but a new location with PARKS attached- whatcha think?

 

[tjkraz]

Not just a resort (Vero, Aulani, Hilton Head) but a new location with PARKS attached- whatcha think?

It would be nice in many regards, but I don't think today's Walt Disney Company has any interest in doing that.

From an investment standpoint, they would have to spend literally billions of dollars on infrastructure improvements before a single attraction was built. Roads, utilities, land acquisition, construction of hotels and other services...the list is endless.

Meanwhile a third park in the US would cannibalize attendance from both Florida and California. This wouldn't all be "new business" for the Disney parks. Many of the guests who visit this theoretical third resort destination are people who would have otherwise gone to DL and WDW. In other words, Disney's operating expenses would increase (3rd US location) while revenues would remain similar to what they currently get from just 2 locations.

All things considered, we guests will be better off if Disney continues to invest in WDW and DL. Rather than spending $1 billion on roads and sewers for some park in Missouri, I'd rather they spend that money on new attractions in Florida or Cali.

 

[Disn3yVision]

Well I don't know about the licensing situation but it seems inevitable they will make a marvel park eventually... Maybe they'll do it outside of Cali or Florida ( although I doubt it)?

 

[moericus]

Well I don't know about the licensing situation but it seems inevitable they will make a marvel park eventually... Maybe they'll do it outside of Cali or Florida ( although I doubt it)?

Universal Studios has some kind of Florida state theme park exclusivity for Marvel Superheroes. Shame... rather have that than Avatar-land.

 

[moericus]

Meanwhile a third park in the US would cannibalize attendance from both Florida and California. This wouldn't all be "new business" for the Disney parks. Many of the guests who visit this theoretical third resort destination are people who would have otherwise gone to DL and WDW. In other words, Disney's operating expenses would increase (3rd US location) while revenues would remain similar to what they currently get from just 2 locations.

This is true for Disney's large-scale parks. Because you have to pick a well-populated state with warm weather all year-round to justify the expense. But they could theoretically do a smaller-scale park with less overhead somewhere in the North. South of The Wall hopefully.

 

[bwvBound]

Expect to see Marvel at DCA starting next year ...
Link: http://micechat.com/125382-disneyland-guardians-of-the-tower/

Well I don't know about the licensing situation but it seems inevitable they will make a marvel park eventually... Maybe they'll do it outside of Cali or Florida ( although I doubt it)?

 

[Maistre Gracey]

Regardless of how they expand, one thing is certain. They will over expand.

That has been the Disney way... Think "Millionaire" going to seven days. They always over do a good thing.

MG