Earning My Ears
- Aug 7, 2017
why has Aulani not sold all of their DVC points- is it not a desired location? I’ve been there 4 times and love it.
As a functional monopoly at WDW, they can charge what they want for “deluxe” accommodations. In a true open market, where people can pay as much for better accommodations, Disney prices just don’t fly.Disney has not done well with non-park locations.
I agree. Just the wrong location, along with lots and lots of competition, much of it costing less, and nothing particularly 'Disney' about it. Disney is famous for Entertainment/Movies/Cartoons/TVs and for the Parks. Where is Hawaii in there? Being "Disney" doesn't make Aulani worth the extra cost and with Aulani being 'out of position,' they have some real problems.As a timeshare option the Aulani is sitting on the wrong side of Oahu. The Japanese target market prefer to buy closer to Waikiki. The American market prefer to buy at WDW for the 11 month advantage. At least this is the general consensus straight from the guides at Aulani.
See my comments above. Disney is NOT a resort in Hawaii. Disney is 'Disney,' and Aulani, Hawaii is NOT Disney. Also the fact that they simply did not realize how competitive the market is, and how much the Hawaiian rules and regulators would add to their costs.Disney has not done well with non-park locations. Aulani is in the wrong space, hit an exchange rate bad time and then there was the regulatory issues.
Aulani will sell out in 2025.
You have put it perfectly.As a functional monopoly at WDW, they can charge what they want for “deluxe” accommodations. In a true open market, where people can pay as much for better accommodations, Disney prices just don’t fly.
Do you remember that scene in Christopher Reeve’s Superman where he steps inside a kryptonite chamber and loses all is super powers?
Disney is Superman in Orlando. Step outside that bubble and Disney becomes Clark Kent getting his *** handed to him by a trucker at a diner.
All of these items keep the sales at Aulani slow:
- Many members don't want to buy Aulani because they live east of the Mississippi.
- Other members use the points they already own because it is easy to book at the 7 month mark.
- The dues at Aulani are expensive.
- The resort is crowded and packed during the popular periods when families travel.
- Then there are those that think Disney mean the parks and Aulani just doesn't have enough 24 hour entertainment for them.
- The Japanese market and economy is poor. It is still suffering due to the 2011 Tsunami and earthquakes.
There are better resorts on Oahu, let alone in the islands.
You have all hit on part of 'The Problem,' but the main thing to keep in mind is that Aulani is FULL of problems. Many of them. I really don't understand why some fool (more than one, certainly) greenlighted this. They all deserve to be fired. Some of them have been.Here's what I think the main issue is - they hardly market it. You're not going to sell when you don't mention it.
Disney onsite timeshares sell well to those on vacation and they've probably always been very complacent about sales. The onsite practically sells itself on pixie dust. Offsite would take more because it doesn't have the pixie dust floating around it but they don't do anything extra - actually they seem to market it much less. With as little as they do about it I'd have to assume they don't particularly care or feel a need to sell it too fast.
Is it better for DVD to hold out for uneducated buyers at these (direct) prices or just go on a fire sale and unload these points? I get that DVD/Disney can still rent out the inventory of villas it "owns" for cash, but if cash demand is so high (enough to provide a steady stream of revenue), why not just "convert" them to hotel inventory and consider the resort sold?It makes no sense to buy direct from Disney now. They are asking $188/pt with a $20/pt discount with resale being around $100/pt. There is only 42 years left. There is a realestate transfer tax for sellers. There is also a hotel use tax. I thin the other posters are correct with why it didn’t do so well initially. It sounds like a good idea but when you get down to the details it’s expensive to get there and a long trip for most people. I have also looked at the available reservations within the 7 month window and it seems like their is plenty of availability.
I thought about buying resale because the cost per point per year is very good and using them at WDW within the 7 month window.
Might not be legally able to do the conversion to hotel rooms. Also, how would they decide which studios, 1 bedrooms, 2 bedrooms, and other units to covert, I'm sure some owners would be very upset if their typical unit was in short supply due to the conversion.Is it better for DVD to hold out for uneducated buyers at these (direct) prices or just go on a fire sale and unload these points? I get that DVD/Disney can still rent out the inventory of villas it "owns" for cash, but if cash demand is so high (enough to provide a steady stream of revenue), why not just "convert" them to hotel inventory and consider the resort sold?