Bob Iger on CNBC

[mjc2003]

Said today that they are seeing an increase in spending by park visitors, and are beginning to cut back on discounted rooms and packages. Mentioned "deep discounts" over the last few years, and suggested that the discounts going forward are going to be scaled back considerably.

For those who post and say that they don't know if DVC is right for them b/c they've been getting 30% off rooms or free dining, it'll be interesting to see what removing these discounts does to the DVC resale market. Will people who haven't bought in recent years b/c of the cash discounts suddenly come back to the DVC table?

 

[Micca]

Interesting point. I'm not certain the people who rely on deep discounts are potential DVC customers. I think the deep discount folks are those who live paycheck to paycheck and can only afford a WDW vacation with the discounts.
Not that the DVC is comprised of people rolling in dough (I'm not!) but we may be in just a slightly more stable financial condition. And hey, if you're a DVC-er who IS rolling in dough, let's hangout

In any case, let's hope Mr. Iger sees some kind of financial recovery among guests. That would be wonderful

 

[Snurk71]

While we weren't dependent on deep discounts before we bought dvc, we were used to getting them for many years at GF. We paid rack the last couple years before going DVC. While losing the discounts didn't force us to DVD (it was location when BLT and vgf came on that made the deal for us), losing the discounts confirmed it was the right deal to put our names on the line.

 

[keishashadow]

Said today that they are seeing an increase in spending by park visitors, and are beginning to cut back on discounted rooms and packages. Mentioned "deep discounts" over the last few years, and suggested that the discounts going forward are going to be scaled back considerably.

For those who post and say that they don't know if DVC is right for them b/c they've been getting 30% off rooms or free dining, it'll be interesting to see what removing these discounts does to the DVC resale market. Will people who haven't bought in recent years b/c of the cash discounts suddenly come back to the DVC table?

No, they'll probably wait it out unless they were seriously considering purchasing DVC.

my translation: packages will have more restrictions (# of days on a ticket etc.) and pin codes will increasingly roll out for projected low booking periods instead of what seemed to be swing towards general public codes this year.

OP thanks for posting, didn't see thisinteresting.

 

[DebbieB]

It's seems they have been saying this for 2 or 3 years and it really hasn't happened.

That's probably one of the best things about DVC, not have to be worried about when discounts come out or if your dates will be included.

 

[Caren90]

Disney just reported HUGE quarterly earnings, so this may have something to do with them scaling back on the discounts.

Stephen

 

[Longhairbear]

All this is being debated on another site in a thread that went totally off track.
However part of the news on that thread was that 5 new DVC's will be coming along in our future.

 

[spiceycat]

All this is being debated on another site in a thread that went totally off track.
However part of the news on that thread was that 5 new DVC's will be coming along in our future.

where the thread and what are the 5 new DVC's where will they be?

 

[Chuck S]

where the thread and what are the 5 new DVC's where will they be?

Given the history of of Disney cancelling projects, even after they are announced (National Harbor, Newport Beach, Eagle Pines)...anything at this point is speculation.

I would say they may be looking in Mexico, Colorado, maybe Northern California...but again, all just guesses based on some old surveys.

 

[keishashadow]

I'm a day behind reading the WSJ but an article there yesterday: Zap! Superheroes Lean on Supporting Cast

The superheros are being credited with lifting WDCo to highest value in recent history. Avengers took in $1.5 billion in ticket sales which trivializes John Carter's losses.

3rd quarter results projected to be $.92 up from $.77

Disney's broadcast entertainment properties provided 2/3rds of operating income in the 1st half of this fiscal year vs theme parks 18%. I don't recall how much the theme parks contributed same time last year but in the interest of 'fact-checking' thought i'd post.

 

[zavandor]

I would say they may be looking in Mexico, Colorado, maybe Northern California...but again, all just guesses based on some old surveys.

I've read also rumors about a Disneyland Hotel DVC in DLR.

 

[Missyrose]

It's seems they have been saying this for 2 or 3 years and it really hasn't happened.

That's probably one of the best things about DVC, not have to be worried about when discounts come out or if your dates will be included.

I think we've already begun to see gradual changes. In years past the AP discount on rooms during slow periods typically was 40 percent, we've seen those top out at 30 percent this year, similar changes have been made to pin codes, as well (we've seen a lot more pin codes that are only good for 10 or 20 percent off deluxes).

I believe the reason Disney remains wedded to free dining is because they lose out on far less money than they do when giving customers a percentage off their room.

 

[DebbieB]

Disney has been smart with "free dining". They have widdled it away a little at a time so that people still think they are getting the same great deal. Room prices have gone up, they took away the appetizer, they took away the tip, took away the regular plan from the value resorts. So it's not the same deal you got 5 years ago.

 

[DizzyStitch]

I'm one of the folks who went on free dining for a few years. This year I started to price my 2013 vacation and becasue we now go in June I decided it was time to stop hoping for a discount and get one that will always be there. I am currently working on purchasing points for SSR. I cannot wait until next June to go back!

 

[RCharnay]

Disney just reported HUGE quarterly earnings, so this may have something to do with them scaling back on the discounts.

Stephen

We've had a few shares of stock for 25 years (we want to support Disney but--the shares have characters on them so--it was a cute birthday gift for the kids) and it is now in the plus column. For years it was a losing stock.

 

[mjc2003]

Interesting point. I'm not certain the people who rely on deep discounts are potential DVC customers. I think the deep discount folks are those who live paycheck to paycheck and can only afford a WDW vacation with the discounts.

Not sure about this at all. There is a distinction between those who rely on discounts and those who take advantage of them. I think in general, WDW is an expensive vacation and not really a common one for people living paycheck to paycheck. Even if you get a room at BC for 30% off, that's still probably $2500 for a week. Then park tickets, food....probably $4000-$5000 for a family for a week. That's more than most paychecks! I am not talking about value or moderate, I'm comparing apples to apples, people who stay at Deluxe Disney hotels with the discounts.
I think the people who are taking advantage of the discounts are just practicing good sense. It doesn't mean you don't have money in the bank if you take advantage of a discount.

I'm really referring to those who didn't buy over the last few years b/c the cash discounts were too attractive. I'm actually in that category, I'll explain below.

While we weren't dependent on deep discounts before we bought dvc, we were used to getting them for many years at GF. We paid rack the last couple years before going DVC. While losing the discounts didn't force us to DVD (it was location when BLT and vgf came on that made the deal for us), losing the discounts confirmed it was the right deal to put our names on the line.

Sort of what I would expect to be the case with several people on the fence. I don't think losing discounts is going to cause people to suddenly start exploring DVC, but those who know about it might give it another look.

I'm one of the folks who went on free dining for a few years. This year I started to price my 2013 vacation and becasue we now go in June I decided it was time to stop hoping for a discount and get one that will always be there. I am currently working on purchasing points for SSR. I cannot wait until next June to go back!

Bingo! Basically what I am talking about. Without the discounts as a given, here is somebody who bought DVC.


I should have mentioned this in my OP, but we held off on DVC for 2 years b/c of the cash offers. In 2009 we had some crazy deal, I forget exactly what it was but I think it was buy 4 nights get 3 free? Then in 2010 we had a 40% off room offer. We had begun to explore DVC in 2009, but these deals were too good to pass up. Eventually we bought in 2011. I guess I was curious as to how many folks were on the fence about DVC and will now make the push if the discounts are all but eliminated (save for rare instances during off times).