2025 DVC experience/thoughts - Great rental deals and APs

[Tatebeck]

They dont have to align, but if they were to have went with DVC at the Yatch, the point values would have clearly been worth at least double of what the Beach Club are. And that wouldn't have looked good on the side of Disney. And yes, the 40 years time line most definitely would come into play as well.

There is no way that it would be double. I would easily bet all 1000+ of my points on it (even if that meant paying dues on 2000 points )

The highest point chart resorts are the ones on the monorail and close to Magic Kingdom like VGF and Poly and those are around 40-70% more (1.4x-1.7x) most of the year. (Outside of a few weird dates or using the outlier that is the cheapest standard view BWV rooms). A Yacht club DVC would fall somewhere between. Probably close to RIV point charts if I had to guess. Which I would be fine with, and probably still buy.

The Yacht Club is also a convention resort, it would interfere with convention sales (which are good, a friend of mine is sales rep and the YC sells quite well).

But the convention rooms and convention tickets are sold at cheaper rates. Even if they are selling a lot of conventions, they would make more money if they could fill the rooms with normal hotel guests or DVC. Just because convention sales are good doesn't mean that Disney will keep doing them or that it would be in Disney's best interest.

They could also convert part of the hotel, leaving part for conventions/regular cash guests of course. Maybe that would increase the competition for some smaller conventions and allow them to increase the average money brought in by a convention guest

 

[Mle8308]

There is no way that it would be double. I would easily bet all 1000+ of my points on it (even if that meant paying dues on 2000 points )

The highest point chart resorts are the ones on the monorail and close to Magic Kingdom like VGF and Poly and those are around 40-70% more (1.4x-1.7x) most of the year. (Outside of a few weird dates or using the outlier that is the cheapest standard view BWV rooms). A Yacht club DVC would fall somewhere between. Probably close to RIV point charts if I had to guess. Which I would be fine with, and probably still buy.

But the convention rooms and convention tickets are sold at cheaper rates. Even if they are selling a lot of conventions, they would make more money if they could fill the rooms with normal hotel guests or DVC. Just because convention sales are good doesn't mean that Disney will keep doing them or that it would be in Disney's best interest.

They could also convert part of the hotel, leaving part for conventions/regular cash guests of course. Maybe that would increase the competition for some smaller conventions and allow them to increase the average money brought in by a convention guest

They may not make as much money from room revenue for a convention guest, but they have a generous profit margin on the food and beverage component of the conventions. They fill the rooms at a lower rate, but the amount that is charged for F&B (which is a part of the contract) is a lot, they make quite a bit on this. More than they would make by selling the just rooms at a discount to regular guests (and most rooms are discounted now most of the year). With a convention guest, they get guaranteed room and F&B revenue, many times for 3 meals plus breaks, and often after hour events. I'd never say never to a DVC conversion, but I don't think it's likely any time soon.

 

[Tatebeck]

They may not make as much money from room revenue for a convention guest, but they have a generous profit margin on the food and beverage component of the conventions. They fill the rooms at a lower rate, but the amount that is charged for F&B (which is a part of the contract) is a lot, they make quite a bit on this. More than they would make by selling the just rooms at a discount to regular guests (and most rooms are discounted now most of the year). With a convention guest, they get guaranteed room and F&B revenue, many times for 3 meals plus breaks, and often after hour events. I'd never say never to a DVC conversion, but I don't think it's likely any time soon.

I don't know. Conventions are a good way to try and help guarantee that rooms are sold, but I don't think it is as good as DVC. Once sold out, DVC rooms operate at near 100% of capacity, which I would think is better than they can get with conventions. When Covid shut everything down, DVC was still paying for their resorts and were the first thing to come back, not conventions. And when those DVC rooms are at 100% capacity, those people have to eat too

I would imagine that the conventions get a bulk discount on the food as well as the rooms, right? Do you think that Disney makes the same or significantly more money off of food from conventions than the same rooms operating at 100% capacity as DVC? I personally can't imagine that they would. Converting to DVC helps increase occupancy, and they can still do what they want with any other rooms, whether that be normal priced hotel guests now that capacity would be decreased on the hotel side or still use it for conventions.

I think there is a reason that they keep going the DVC route instead of just building hotels, I think it is the most stable and profitable for them

 

[SL6827]

I don't know. Conventions are a good way to try and help guarantee that rooms are sold, but I don't think it is as good as DVC. Once sold out, DVC rooms operate at near 100% of capacity, which I would think is better than they can get with conventions. When Covid shut everything down, DVC was still paying for their resorts and were the first thing to come back, not conventions. And when those DVC rooms are at 100% capacity, those people have to eat too

I would imagine that the conventions get a bulk discount on the food as well as the rooms, right? Do you think that Disney makes the same or significantly more money off of food from conventions than the same rooms operating at 100% capacity as DVC? I personally can't imagine that they would. Converting to DVC helps increase occupancy, and they can still do what they want with any other rooms, whether that be normal priced hotel guests now that capacity would be decreased on the hotel side or still use it for conventions.

I think there is a reason that they keep going the DVC route instead of just building hotels, I think it is the most stable and profitable for them

It is the most stable amd profitable for them, absolutely. I just wonder after 2042 if they might add a DVC building onto the Yacht Club? Would make for a more crowded SAB!

 

[Mle8308]

I don't know. Conventions are a good way to try and help guarantee that rooms are sold, but I don't think it is as good as DVC. Once sold out, DVC rooms operate at near 100% of capacity, which I would think is better than they can get with conventions. When Covid shut everything down, DVC was still paying for their resorts and were the first thing to come back, not conventions. And when those DVC rooms are at 100% capacity, those people have to eat too

I would imagine that the conventions get a bulk discount on the food as well as the rooms, right? Do you think that Disney makes the same or significantly more money off of food from conventions than the same rooms operating at 100% capacity as DVC? I personally can't imagine that they would. Converting to DVC helps increase occupancy, and they can still do what they want with any other rooms, whether that be normal priced hotel guests now that capacity would be decreased on the hotel side or still use it for conventions.

I think there is a reason that they keep going the DVC route instead of just building hotels, I think it is the most stable and profitable for them

As I mentioned in my previous post, a good friend of mine is in convention sales at WDW (I am also a former CM who worked in both resorts and parks), and I know the amount they charge for F&B, it's a lot. Business bookings are often charged more than social bookings (which are still expensive, look at wedding costs). They more than make up for any room discounts offered to convention guests in F&B revenue. F&B may be discounted depending on the number of guests, but it's still very expensive. DVC definitely benefits Disney or else they wouldn't do it, but it has to be a balance. And I'm not sure what the amount of room revenue per night DVC brings in versus a room at rack or even a discounted rate. I think of when I rent DVC points, I pay about $320 a night for a Poly studio (fall, not prime season). That same DVC studio is $815 per night on the WDW site for the same dates. If I weren't renting that room, at a certain point, it would revert back to Disney to sell. And make a lot more money, even with a discount. Might be apples to oranges, not sure. I do wonder what Disney thinks the right amount of DVC rooms versus regular rooms is the right mix? If Disney converted a lot of YC rooms to DVC, they would be rather limited in the number of rooms they could offer for conventions, which is nice revenue. I agree that in more difficult times, DVC is more stable occupancy, but not for DVC sales. When the economy tanks, most people aren't buying timeshares (or even going on vacation). But again, I'd never say never! All interesting things to think about!

 

[Sandisw]

As I mentioned in my previous post, a good friend of mine is in convention sales at WDW (I am also a former CM who worked in both resorts and parks), and I know the amount they charge for F&B, it's a lot. Business bookings are often charged more than social bookings (which are still expensive, look at wedding costs). They more than make up for any room discounts offered to convention guests in F&B revenue. F&B may be discounted depending on the number of guests, but it's still very expensive. DVC definitely benefits Disney or else they wouldn't do it, but it has to be a balance. And I'm not sure what the amount of room revenue per night DVC brings in versus a room at rack or even a discounted rate. I think of when I rent DVC points, I pay about $320 a night for a Poly studio (fall, not prime season). That same DVC studio is $815 per night on the WDW site for the same dates. If I weren't renting that room, at a certain point, it would revert back to Disney to sell. And make a lot more money, even with a discount. Might be apples to oranges, not sure. I do wonder what Disney thinks the right amount of DVC rooms versus regular rooms is the right mix? If Disney converted a lot of YC rooms to DVC, they would be rather limited in the number of rooms they could offer for conventions, which is nice revenue. I agree that in more difficult times, DVC is more stable occupancy, but not for DVC sales. When the economy tanks, most people aren't buying timeshares (or even going on vacation). But again, I'd never say never! All interesting things to think about!

To add, these are different divisions with their own profit and loss statements and goals.

So, I am with you. I don’t see them giving up convention business for DVC when they don’t need to because they still have space in that area with BCV and BWV to keep DVC in the area.