Direct Minimum Increase for DVC Perks Confirmed

[pkrieger2287]

https://dvcfan.com/2020/10/19/direct-minimum-increase-for-dvc-perks-confirmed/

 

[Ruttangel]

https://dvcfan.com/2020/10/19/direct-minimum-increase-for-dvc-perks-confirmed/

And the perks are?
Roughly $80 a point difference from direct to resale, so you have to save $10k somewhere on 125 points

 

[Cabius]

And the perks are?
Roughly $80 a point difference from direct to resale, so you have to save $10k somewhere on 125 points

Same as they ever were: over enough people and enough years, AP discounts could make that up. Otherwise you’re paying for intangibles, and for the hope of non-guaranteed perks (lounge access, special events).

These perks come out of DVD marketing budgets, which are tied to new sales. Over time, as they sell more and more properties, there are more and more direct members eligible for perks, but the marketing budget presumably stays fairly flat.

This means that we should expect to see direct member perks grow less valuable and/or more scarce over time as they spread the same marketing budget across an increasing swatch of buyers.

I wouldn’t be shocked if i’m 5-10 years we’re all on here complaining that the direct perks are limited to direct purchases with ing the last 5 years or something like that.

 

[Ruttangel]

Same as they ever were: over enough people and enough years, AP discounts could make that up. Otherwise you’re paying for intangibles, and for the hope of non-guaranteed perks (lounge access, special events).

These perks come out of DVD marketing budgets, which are tied to new sales. Over time, as they sell more and more properties, there are more and more direct members eligible for perks, but the marketing budget presumably stays fairly flat.

This means that we should expect to see direct member perks grow less valuable and/or more scarce over time as they spread the same marketing budget across an increasing swatch of buyers.

I wouldn’t be shocked if i’m 5-10 years we’re all on here complaining that the direct perks are limited to direct purchases with ing the last 5 years or something like that.

I understand all of that, I just don’t see how they can increase it when they are currently offering no perks....,.including AP

 

[striker1064]

I understand all of that, I just don’t see how they can increase it when they are currently offering no perks....,.including AP

They've never increased perks in the past either. They stayed the same when the minimum went from 25 to 75, and again from 75 to 100, and people still will make some fuzzy math work to justify the perks. But I agree, no AP and no guarantee of its return is particularly egrigous, but this is the long game for DVC, and my hunch is sales will continue the way they always have previously.

Look at how many people suddenly needed to buy prior to the minimum increasing to 125 so they could get the perks. Know what DVC needs to do to get sales rolling again in a few months? Leak an increase to 150 points minimum.

 

[skippytx]

I understand all of that, I just don’t see how they can increase it when they are currently offering no perks....,.including AP

People keep paying for those direct points, so why not. The FOMO around here regarding the blue card is very real.

Full disclosure I bought direct points to get a blue card a few years ago, but you only needed 25 when I purchased. I would not have purchased 75, 100, or 125 direct points for the blue card.

 

[Great3]

Not even 1 day of warning of the changes coming this time except for the rumors we been hearing on here. I am afraid all future changes are just going to happen the day of, without any announcements / fanfare.

Great3

 

[ScubaCat]

They've never increased perks in the past either.

They did increase the savings on DVC vs public APs though. (done by jacking up the public AP price.) If you look back a few years, it only saved $200 per pass. Now it's more than double that.

 

[robinb]

They've never increased perks in the past either. They stayed the same when the minimum went from 25 to 75, and again from 75 to 100, and people still will make some fuzzy math work to justify the perks. But I agree, no AP and no guarantee of its return is particularly egrigous, but this is the long game for DVC, and my hunch is sales will continue the way they always have previously.

Look at how many people suddenly needed to buy prior to the minimum increasing to 125 so they could get the perks. Know what DVC needs to do to get sales rolling again in a few months? Leak an increase to 150 points minimum.

IMO, the whole process of buying DVC is "fuzzy math".

That being said, the difference in price between APs for the general public and DVC members is now about $400 each. A family of 4 will make up the $10K difference in about 6 years on APs alone and they get to enjoy the other perks as well.

 

[skeeter31]

I sure do miss the days of a length of stay park pass when staying using DVC points. That was the best perk they ever had. We used that so many times.

 

[Sandisw]

Same as they ever were: over enough people and enough years, AP discounts could make that up. Otherwise you’re paying for intangibles, and for the hope of non-guaranteed perks (lounge access, special events).

These perks come out of DVD marketing budgets, which are tied to new sales. Over time, as they sell more and more properties, there are more and more direct members eligible for perks, but the marketing budget presumably stays fairly flat.

This means that we should expect to see direct member perks grow less valuable and/or more scarce over time as they spread the same marketing budget across an increasing swatch of buyers.

I wouldn’t be shocked if i’m 5-10 years we’re all on here complaining that the direct perks are limited to direct purchases with ing the last 5 years or something like that.

Things like MM come out of marketing. Things like the AP pricing is a deal made with Parks and Resorts to offer to money. Similar to them selling third party brokers tickets at a discount.

Same with the discount on shopping and dining...those are not part of a marketing budget, but separate contracts for those,

So, DVD can work with other divisions to offer discounts without having to impact marketing. The reason things like MM have to come out of that is because they are run specifically by DVD and therefore, can’t use any money generated by dues since it’s not open to all members.

 

[poofyo101]

Not even 1 day of warning of the changes coming this time except for the rumors we been hearing on here. I am afraid all future changes are just going to happen the day of, without any announcements / fanfare.

Great3

We have known this was coming for 2 months or so.

 

[Sandisw]

I understand all of that, I just don’t see how they can increase it when they are currently offering no perks....,.including AP

You can still get an AP if you canceled a pass or one expired right now. And it is at DVC pricing.

it’s not DVC in control of when they start again but it is still a perk for when WDPR begins selling t to all.

I am not sure why people keep saying it’s not a perk when it is and has not been removed. It is simply delayed. And who knows. Maybe new direct buyers will get some advance ability to purchase like they do with Welcome Home reservations until it’s open to general public.

I think we will see it back in the next month or two for 2021.

 

[ScubaCat]

I think we will see it back in the next month or two for 2021.

That's probably right. I suspect it has (partially) to do with the inability to park hop. Technically they're not able to offer what you're paying for, so suspending new sales avoids that problem. People that already had them got plenty of notice and can cancel for a refund. But that's another discussion altogether! (There's a nice big thread on this in the theme park forum)

As far as DVC is concerned, the DVC gold/platinum passes will likely come back as soon as they're for sale again. As to whether that's worth 125 direct points... that'll certainly be debated for the rest of my life (hah). Hopefully something else cool is coming along that'll justify the increase, but I wouldn't hold my breath.

 

[striker1064]

They did increase the savings on DVC vs public APs though. (done by jacking up the public AP price.) If you look back a few years, it only saved $200 per pass. Now it's more than double that.

Yep, and I definitely feel like that's a marketing trick.

IMO, the whole process of buying DVC is "fuzzy math".

That being said, the difference in price between APs for the general public and DVC members is now about $400 each. A family of 4 will make up the $10K difference in about 6 years on APs alone and they get to enjoy the other perks as well.

This is also fuzzy math because it assumes 1) the AP will even come back at all, 2) that the family is going often enough to make the AP cheaper than single day tickets, 3) that they're not taking extra trips just to make the AP worthwhile, 4) that the AP will remain available, and 5) that it will always be a tangible discount.

 

[Great3]

We have known this was coming for 2 months or so.

I mean officially, announce on Thursday that the change will happen on Monday, etc.. not just rumors, or something the guide said. It doesn't matter, DVC will continue to do what they want to do, it's their business.

Great3

 

[robinb]

This is also fuzzy math because it assumes 1) the AP will even come back at all, 2) that the family is going often enough to make the AP cheaper than single day tickets, 3) that they're not taking extra trips just to make the AP worthwhile, 4) that the AP will remain available, and 5) that it will always be a tangible discount.

I am pretty certain APs will come back and any family who is buying direct points for the AP discount has already decided that they will use APs. It's certainly a gamble that the discount might go away, but since it's a focus of their direct purchase marketing campaign I don't think it will go away any time soon.

 

[BrianR]

And the perks are?
Roughly $80 a point difference from direct to resale, so you have to save $10k somewhere on 125 points

Not sure where you're pulling $80 a point difference other than buying direct at what I'm presuming is a "sold out" resort vs. resale.

The prior incentive deal had multiple resorts within $30 of its resale equivalent per point depending on the point amount you're buying. It's easy enough to get that value out of some of the blue card perks at that delta. Now the over $100 a point for VGF vs resale that was going on for a while not a chance...

 

[DVCanonymouse]

Not sure where you're pulling $80 a point difference other than buying direct at what I'm presuming is a "sold out" resort vs. resale.

The prior incentive deal had multiple resorts within $30 of its resale equivalent per point depending on the point amount you're buying. It's easy enough to get that value out of some of the blue card perks at that delta. Now the over $100 a point for VGF vs resale that was going on for a while not a chance...

Really? At the minimum for blue card level (100-125 points?) Which resorts? My math did not work out that way!

 

[Ruttangel]

Not sure where you're pulling $80 a point difference other than buying direct at what I'm presuming is a "sold out" resort vs. resale.

The prior incentive deal had multiple resorts within $30 of its resale equivalent per point depending on the point amount you're buying. It's easy enough to get that value out of some of the blue card perks at that delta. Now the over $100 a point for VGF vs resale that was going on for a while not a chance...

For 100 points there were no incentives and Limited for 125
RIV $195 selling for $110
AUL $195 selling for $90
CCV $220 selling for $140
AKV $186 selling for $105

Etc....