A small Add on Contract from different resort benefits versus issues

[malba2366]

If they're smart they'll require the minimum new purchase contract size to qualify.

They may do this, but then they may lose sales. I really think Disney is in the mode of maximizing revenue right now. They need to make a buck wherever they can to offset the rapid changes to the cable tv landscape and their cash cow (ESPN).

Eventually I think we will see a lot more upsells in the park as well such as premium viewing areas for fireworks, premium fastpasses and continued increases in dining prices, room rates and park tickets.

Also, I see them rapidly increasing their demand based pricing and charging extra for high demand dates. All the data they collect from magic pass allows them to make very accurate predictions about prices that the market will bear.

 

[Dean]

They may do this, but then they may lose sales. I really think Disney is in the mode of maximizing revenue right now. They need to make a buck wherever they can to offset the rapid changes to the cable tv landscape and their cash cow (ESPN).

Eventually I think we will see a lot more upsells in the park as well such as premium viewing areas for fireworks, premium fastpasses and continued increases in dining prices, room rates and park tickets.

Also, I see them rapidly increasing their demand based pricing and charging extra for high demand dates. All the data they collect from magic pass allows them to make very accurate predictions about prices that the market will bear.

There are lots of nuances and possibilities here. They could cont the sales but require that one have a minimum number of qualified points going forward to receive the perks. Maybe they say you can have 25 but if you want the perks you have to buy 50 or even 100. They may lose a few 25 points sales but would gain sales on the larger numbers. If they made it 50 or even 100 minimum to get the perks I think they'd sell far more points than those that would just say to heck with it that would have bought 25. Of course the purpose of the program is to not let resale buyers have the perks with resale points and push the to retail. Allowing one to buy resale then giving them easy and relatively cheap access by buying 25 points doesn't do this very well. Plus the smaller contracts are inherently more expensive for the system.

 

[seascapemvy]

There are lots of nuances and possibilities here. They could cont the sales but require that one have a minimum number of qualified points going forward to receive the perks. Maybe they say you can have 25 but if you want the perks you have to buy 50 or even 100. They may lose a few 25 points sales but would gain sales on the larger numbers. If they made it 50 or even 100 minimum to get the perks I think they'd sell far more points than those that would just say to heck with it that would have bought 25. Of course the purpose of the program is to not let resale buyers have the perks with resale points and push the to retail. Allowing one to buy resale then giving them easy and relatively cheap access by buying 25 points doesn't do this very well. Plus the smaller contracts are inherently more expensive for the system.

I know this was not needed since all my 350 DVC resale points were purchased a couple of years ago, but I thought it would be a good idea just in case anything else comes down the road to buy a small upgrade directly from DVD so I called and purchased 25 direct points for SSR. They had them available for my February Use year. I am happy to know I have a direct contract from DVD and do not think I will lose future benefits.

As for the future I do not think DVC will cut extras and in fact will probably add more. 2042 is not too far away and that is when they get back the vast majority of OKW, and all of BWK, BCV and WL1. They will want to sell them again and keep selling new resorts in the meantime. They can continue to negotiate discounts from the parks and restaurants still make a fortune. However, in the future I worry about the minimum upgrade being increased to 50 points to qualify for member extras. I do want some points at WL2 but wanted to make sure I get in on all the extras.