Disney's Long Term DVC Strategy

[muppets3d]

Thinking about this some more...

The biggest problem might not even be the direct revenue loss. The biggest problem might be a very large advertising ecosystem that consistently and loudly explains that Disney's Deluxe rooms are only worth Moderate room rates.

Well, Disney can solve that by continuing to tear down moderate resorts and converting them to DVC/deluxe resorts. DVC pays for the resort construction and owners pay for the ongoing maintenance.

 

[muppets3d]

Have we seen this at other sold out DVC resorts? I'm a newer owner, so genuinely curious. The others *to me* all seem to have retained their high quality bar.

There are always changes, some good and some bad, but I don't think DVC in general has the attitude of "we've already got your money" like a lot of timeshare developers do.

I mean all one has to do is look at the huge glow-up the Grand Floridian is getting and you'll see that Disney doesn't let their properties decline just because they have a new building to sell (and in the Grand Floridian's case, the new building is literally right next door with a walking path to it).

 

[VGCgroupie]

All the resorts do. Don't you see the character RV parked at the porte cochere when you're staying?

Ive never seen characters at the resorts at WDW only DLR. I didnt think they did this at WDW.

 

[VGCgroupie]

Thinking about this some more...

The biggest problem might not even be the direct revenue loss. The biggest problem might be a very large advertising ecosystem that consistently and loudly explains that Disney's Deluxe rooms are only worth Moderate room rates.

Yep. And now with AI people are creating super eye catching advertising to stay deluxe at moderate prices. Disney usually goes after people using their IP for creations, maybe this will push them over the edge.

 

[muppets3d]

Ive never seen characters at the resorts at WDW only DLR. I didnt think they did this at WDW.

It's not something you can set your watch by, but general in the mid-to-late afternoon you'll see them in the resort lobby. 1-5pm give or take. I've seen them at every resort I can think of, even the values.

 

[cruisehopeful]

Ive never seen characters at the resorts at WDW only DLR. I didnt think they did this at WDW.

I've seen it in several YouTube videos. It was random, then it was on the activities calendars and I think it went back to random.

 

[VGCgroupie]

It's not something you can set your watch by, but general in the mid-to-late afternoon you'll see them in the resort lobby. 1-5pm give or take. I've seen them at every resort I can think of, even the values.

I've seen it in several YouTube videos. It was random, then it was on the activities calendars and I think it went back to random.

Awesome this makes me happy!

 

[muppets3d]

Awesome this makes me happy!

My first trip to Jambo I was taking a photo of the lobby and turned my phone camera around to take a selfie and Chip was behind me! Had no idea the characters were there at the time

 

[VGCgroupie]

My first trip to Jambo I was taking a photo of the lobby and turned my phone camera around to take a selfie and Chip was behind me! Had no idea the characters were there at the time

Amazing. My addiction to staying on property came about because every time we checked into DLH/GCH my son hung out with characters. When he was 3 he sat and watched TV with Pluto for a good 15 minutes!

 

[IsDVCForMe?]

My first trip to Jambo I was taking a photo of the lobby and turned my phone camera around to take a selfie and Chip was behind me! Had no idea the characters were there at the time

Same. Took my child to the lobby to do something, which I can’t remember what, but next thing you know Donald Duck, Goofy, and Pluto showed up. They loved it!

 

[Brian Noble]

WDW has been experimenting with more sponteneous character interactions, and having some pop-ups at the Resorts has been part of that. I don't believe it is yet a regular thing. I'm 95% sure that I've read this is happening at a few Resorts other than RIV.

 

[Judique]

Only got through about half of these posts but man this is good. Have to keep looking back at past threads

Woke up middle of night last night and started reading cause I couldn't get back to sleep.
Around page 10 or I realized it was last years thread, but I've kept reading anyway, waiting for more DVC Strategy while wading through the 'discounts' pages.

Usually I figure out a zombie thread quicker....

 

[Sandisw]

First off, I will admit I know nothing about those resorts.

If they were to get extended, would resale buyers be able to use them until their extended dates? Kind of like OKW-E.

In order to even consider to extend, there would have to be an incentive to do that.

The way they did OKW is not something they’d do again because there is a very good chance that it was not done correctly, either by contract standards or the law.

DVD has no reason to extend. They can just create new and with the ability to use the trust they set up, it gives them even more incentive to use that model to create new.

 

[Mirabell Rose]

In order to even consider to extend, there would have to be an incentive to do that.

The way they did OKW is not something they’d do again because there is a very good chance that it was not done correctly, either by contract standards or the law.

DVD has no reason to extend. They can just create new and with the ability to use the trust they set up, it gives them even more incentive to use that model to create new.

The 2042 contract owners and all the money they spend visiting Disney is a huge incentive. Maybe there are a few rare owners who have bought into DVC at today’s prices, but they are rare indeed. DVC has been fed by past purchasers, and Disney by past and resale purchasers. Disney can’t dump older properties onto less expensive chains like a Hilton or Marriot when they are on Disney property given it has a limited footprint. And the 2042 owners are not in a trust model. So I disagree that they can just dump all those current repeat visitors 1/1/2042 and not pay dearly for it financially. This creates significant incentive. Business need both current and future customers.

 

[supercarrie]

There are always changes, some good and some bad, but I don't think DVC in general has the attitude of "we've already got your money" like a lot of timeshare developers do.

I mean all one has to do is look at the huge glow-up the Grand Floridian is getting and you'll see that Disney doesn't let their properties decline just because they have a new building to sell (and in the Grand Floridian's case, the new building is literally right next door with a walking path to it).

Exactly, that was what I was thinking. Putting aside the changes they have made to increase revenue, I haven't personally seen a dip in quality even at SSR or OKW. I don't see them suddenly doing that but open to hearing why someone else thinks that they might.

 

[Sandisw]

The 2042 contract owners and all the money they spend visiting Disney is a huge incentive. Maybe there are a few rare owners who have bought into DVC at today’s prices, but they are rare indeed. DVC has been fed by past purchasers, and Disney by past and resale purchasers. Disney can’t dump older properties onto less expensive chains like a Hilton or Marriot when they are on Disney property given it has a limited footprint. And the 2042 owners are not in a trust model. So I disagree that they can just dump all those current repeat visitors 1/1/2042 and not pay dearly for it financially. This creates significant incentive. Business need both current and future customers.

The trust set up can have them moving all that inventory into the trust and the create a plan to allow current owners and cash guests to use it.

At the same time, they can take some off line to renovate. Like they did with the cabins.

They the sell when properties when they are ready. They lose a lot of money not being able to sell new with points charts that reflect the cash rate.

I see absolutely no financial incentive for DVD to keep the 2042 resorts as is. To many other choices for them.

And, if those who own the 2042 today, who want to still own, will still have options to stay DVC or cash guests,,, it’s not like once those resorts expire those guests have no options to own or visit.

 

[OKW Lover]

The largest offenders have just doubled down and are buying even more contracts and renting even more rooms.

How do we know this?

 

[VGCgroupie]

How do we know this?

When you see them renting more rooms. And you see more deeds in many of their various entities. Seeing who is buying contracts is not hard to do.

 

[Chili327]

Universal is about to get the Disney fans if Disney keeps up these restrictions.

I love Universal. I’ve owned annual passes there several different times. Heck I even really like Regular Old Amusement Parks, having continuously had an all-parks season pass to Cedar Fair (now including Six Flags) for twenty years give or take.

I’m about as far from “Only Disney Will Do” as you can get.

And even *I* don’t believe this.

Agree. Once bitten, it’s hard to imagine.

Will BCV and BWV get extended?

Doubt it. I think they get re-built.

First off, I will admit I know nothing about those resorts.

If they were to get extended, would resale buyers be able to use them until their extended dates? Kind of like OKW-E.

Extend is highly unlikely, unless they figure out a way to do it completely.
But I do think they will have some kind of plan in place and available for purchase on crescent lake before 2042.

Aside from that point. Universal isn't the same as Disney. Disney has a hold on many people, there is something with the nostalgia that takes hold in a way that Universal cannot and will never be able to replicate.

Indeed the mousefield is strong.

 

[Mirabell Rose]

The trust set up can have them moving all that inventory into the trust and the create a plan to allow current owners and cash guests to use it.

At the same time, they can take some off line to renovate. Like they did with the cabins.

They the sell when properties when they are ready. They lose a lot of money not being able to sell new with points charts that reflect the cash rate.

I see absolutely no financial incentive for DVD to keep the 2042 resorts as is. To many other choices for them.

And, if those who own the 2042 today, who want to still own, will still have options to stay DVC or cash guests,,, it’s not like once those resorts expire those guests have no options to own or visit.

I’m not convinced the trust model will be the long term DVC strategy or that it will be successful for Disney. I am certain myself that dumping all the 2042 owners on 1/1/42 would be a huge financial hit to Disney for quite some time.