Cash specials "devalue" DVC?

[KMarie]

I'd like to hear everyone's opinion on this.

I am a member of DVC, and of The Disney Club. The Disney Club recently has sent me two what look like incredibly cheap deals to stay at HH. One was for a two-bedroom for $109 a night. The other was for a 1-bedroom for $89 a night. This was not connected to a DVC tour or any DVC promotion.

I know this is off season at HH, and the travel industry is suffering right now. But these rates seem to be a pretty good discount off the cash price for this time of year. Do you think this kind of discounting devalues HH, or DVC in general? My family had considered an add-on at HH, but we wonder whether it's a good idea when rooms can be had at deep discounts and our points seem to have more value at other DVC resorts.

What do you think the effect of such discounting has on DVC, if any?

KMarie

 

[JonHM]

Personally, I don't think that this de-values DVC at all. People also ask why buy DVC when they can get a room at All Stars for $49? Well, when you're talking about DVC, you have to think about the big picture. Once you've joined, you're pretty much locked in and inflation proof for the next 40 years. Sure, there may be some great cash discounts now, especially given the recession, but will you be able to get that same room for that kind of money 5 years from now, not to mention 10 or 20 years from now? People who pay that great rate for a week this year only get to take advantage of the resort now. You get to keep on taking advantage of your DVC resort year after year after year after year...

 

[caverill]

I always look at those "specials" as a great way for DVC to show their product. Once you stay in a one-bedroom, it is tough to go back.

I also believe it is a great way for DVC to sell unreserved rooms. Every room that is paid for with cash (that would have been empty otherwise), helps keep our dues low. Since these specials tend to occur "off season" and don't run into our reservation window, I don't have a problem with them.

 

[ZerasPride]

I appreciate the above two posters' comments as I am taking advantage of the Disney Club offer at Hilton Head next month and paying $115 a night for a 2 bedroom villa. I thought to myself, why should we join if we can get deep discounts like this? But your comments make a lot of sense - these deep discounts will not last forever but if I join when we go down next month, I'll have years to enjoy my DVC membership.

Looking forward to sampling DVC accommodations and the Hilton Head resort next month.

Lisa

 

[SJUGuy]

I just went on the HH promotial price that you are talking about. Part of that deal is that you have to go on a tour of the Vacation Club. I was there this past weekend and actually joined the club while I was there. The Cast Memeber that helped me told me that they are doing the promotions at HH to try and help it to sell out quicker. They figure if they can get people their that they will be able to sell out the HH Villas quicker. Thats what I was told at least... So the promotions are only temporary.

SJUGUY

 

[ZerasPride]

SJUGUY - this offer is not part of the timeshare promotion. This is a Disney Club discount that appeared in the lastest Disney Club magazine. You are not required to attend any presentation like the offer you took advantage of and that is what made me think DVC may not be such a good deal if you can keep getting discounts like this. But as I previously stated, that is a shortsighted view. These deep discounts will not be around forever.

The code for the one bedroom is $89 per night and the 2 bedroom is $109 per night. I had the one bedroom booked but then decided for a few dollars more I could really wow my husband and hopefully convince him to join. I'll know one way or the other in a few weeks when we are down there if any of my "persuasion" tatics worked!

Lisa

 

[SJUGuy]

ZerasPride - I understand that there is no tour on the promotion that you are taking. I mistyped and it made it sound like I was saying you were wrong about the tour. Sorry. But they are offering those promotions to try and show people what is offered to members of the vacation club. So even though you do not have to take a tour they are still trying to promote the club. They are very close to selling out HH and therefore offering promotions to bring people to the resort. So once they sell HH out they will no longer have those type of offers. Either way enjoy yourself because it is beautiful there and you will have a great time.

SJUguy

 

[mikesmom]

So, you figure if people have only stayed in a regular hotel room and then they stay in a 1 bdr, like they're NOT going to take the tour? Yeah, RIGHT! They'll get hooked just like the rest of us.

We had NO intention of joining DVC, we went after DS begged to stay on property "just once". The rest is history. And not a moment of regret (except that we didn't do it sooner).

 

[Dean]

HH is a seasonal resort area, it is hot in the summer and cold otherwise. You can usually rent a 2 BR at Marriott's Grande Ocean or Barony for less than the maintenance fees for the week. Many times, It's $300 or so for a 2 BR beachfront resort. For off season, even at $100 per night for a 2 BR, it's still no bargain though it partly depenpends on when it is.

 

[Pluto4President]

But keep in mind that these are just "special" rates. We'll have our DVC rates for the next 41 years.

 

[lyndon1]

Caverill is correct. The 109.00 and the 89.00 rate is the hook. After staying in the resort most people reconsider the value of 40+ years of even a better rate with the option of staying at all the current resorts and also the resorts planned for the future.

It is a wonderful time to be a DCV member.

Lyndon

 

[Granny]

In answer to the original post question, no I don't think the short term promotional rates will "devalue" DVC.

Think of the very nicest hotel in your area. Pretend they had a short-term promotion of $50 a night. Would you think less of the hotel?

Now if upkeep and service fell off and the price went down permanently....that's a lot different.

I think it would be great if they can finally close out HH and VB. Then they could concentrate on BCV!

 

[Doctor P]

In the short term, no I don't think these devalue DVC. If these deep discounts continue for years and survive various changes in economic conditions, they would make one start to question whether DVC is truly protecting one from price increases as much as we all expect. For now, I am willing to sit on my hand since I don't think these conditions will last very long.

 

[RobDoc]

Keep in mind that, as DVC/HH owners use their points for non-DVC reservations, the off-season cash rentals will be used to "pay" for those reservations. There will likely be cash discounts available to cover the costs of the non-DVC ressies.

Once the resort is sold out, I expect that these "deals" will be less frequent (since most are still offered by the sales staff), but there will still be some available- especially at 60 days prior.

 

[KMarie]

Thanks to everyone for their thoughts on this. We really enjoyed our visit to HH, and we will be going back. Whether we'll do an add-on there is still questionable, though, since we would never visit during the prime, summer season.

I do hope these kind of cash discounts are short-term and designed to do the things you all have brought up, such as boost business in the current economy, help promote DVC, and fill space at the 60-day mark. It has been suggested to me that the discounts could be a potential sign that the resort is in some kind of "trouble," or its future as a DVC resort is threatened in some way. I certainly anticipate that is NOT the case.

Thanks for the reassurance.

KMarie

 

[NFalzon]

For Member Services to match this discount price for a Member's Reservation? Not sure, but I seem to think I remember something like that posted here a while back...

Hmmm....
Nick

 

[paulhackett]

We were undecided about joining DVC so before we joined we took a deal 3 nights at broadwalk and 4 nights at vero beach ( or was it the outher way round ?) this was on a cash offer but had to do the tour at end and because of the exelant time we had we decided at the end of our stay we told them they did not nead to show us the 1 1/2 hour presentation we would sign there and then. It was the best thing we have done stayed at vero, broadwalk, villas at wildernes had a 7 night cruise.I find that if you have a taste of the true disney you will be willing to sign up for life. Cost to sign up $10,000 but have saved more and have had beter holidays as a result.So what if they are willing to try and fill rooms on a cash only bases people will sign up after tryin quality
PaulH