Disney’s time-share business took a hit from credit turmoil in 2009

[CR Resort Fan 4 Life]

http://thedailydisney.com/blog/2009...mpact-on-disneys-time-share-business-in-2009/

 

[Chuck S]

It means that Disney now has the loans rather than bundling them and selling htem off for instant income. That has been reported ever since the mortgage meltdown, so it isn't shocking. No doubt all other timeshare competitors have also been affected. It may be tha Disney will simply stop building new DVCs for a while, until the economy improves and they sell off a little more inventory.

 

[CarolMN]

Thanks for posting the link.

While the "hit from the credit turmoil" was not a surprise to me, the amount of the DVC contribution to Disney's bottom line certainly was!

Any slip at Disney Vacation Club could have broader implications for Disney’s parks-and-resorts division, where the time-share unit has become an important growth engine. The theme-park division accounts for more than a quarter of Disney Co.’s total revenue.

Morgan Stanley estimates that Vacation Club accounted for as much as 20 percent of the profit growth for Disney Parks and Resorts in fiscal 2008. Disney itself credited higher time-share sales with helping offset declines elsewhere in its parks unit during the first quarter of fiscal 2009; total revenue for Parks and Resorts fell about 4 percent during the quarter from a year earlier, less than many analysts had expected.

Vacation Club contributes about 10 percent of the parks-and-resorts unit’s total profit, Staggs said during the December analyst conference.

 

[CR Resort Fan 4 Life]

Thanks for posting the link.

You're welcome.

 

[DVCconvert]

And this is all nearly completely irrelevent when compared to the company's committment to capital improvements over the next few years.