Disney's Long Term DVC Strategy

[Sandisw]

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.

Except there are no downsides to the trust model from DVD 's perspective. It can be set up to operate exactly like the current resort's operate, but provide DVD the ability to do things that are harder to do in the leashold model.

There is a huge downside to DVD to continue the 2042 resorts as is....but then again, I don't agree that when these resorts transtion back to DVD that all the 2042 owners will stop going to Disney, won't have already bought other resorts and won't be lining up to buy the new resorts that replace them.

Both BWV and BCV have a hotel side to them, so nothing to stop them from closing some of that down in 2039, renovating them to DVC, and begin selling those so that they open Feb 1st, 2042.

It will be interesting to watch how this unfolds.....and the first test for the trust model will be LSL....so at least we might have insight in the next year if this model is the way they might be headed....

 

[Cfabar1]

RIV has character drop bys?

they have int he past... we have a fond memory of Chip and Dale observing our infant daughter sleeping in the RIV lobby...

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).

The Grand Floridian is also a cash resort instead of a pure DVC....

 

[DebbieB]

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

Boardwalk last fall. They seem to come out on rainy days when people are hanging around the resort.

 

[Genie+]

Boardwalk last fall. They seem to come out on rainy days when people are hanging around the resort.View attachment 1057748

How cute!

Boardwalk is the resort I’ve see the most characters. We’ve seen them by the lobby elevators (villas side), in the lobby, and out by the green too. It’s always been between 1-4pm.

One morning we saw a commercial being filmed on the green. They had a Disney family of 4 skipping past the Art Store holding ice creams. It was adorable. That happened ~10am iirc.

 

[Mirabell Rose]

Except there are no downsides to the trust model from DVD 's perspective. It can be set up to operate exactly like the current resort's operate, but provide DVD the ability to do things that are harder to do in the leashold model.

There is a huge downside to DVD to continue the 2042 resorts as is....but then again, I don't agree that when these resorts transtion back to DVD that all the 2042 owners will stop going to Disney, won't have already bought other resorts and won't be lining up to buy the new resorts that replace them.

Both BWV and BCV have a hotel side to them, so nothing to stop them from closing some of that down in 2039, renovating them to DVC, and begin selling those so that they open Feb 1st, 2042.

It will be interesting to watch how this unfolds.....and the first test for the trust model will be LSL....so at least we might have insight in the next year if this model is the way they might be headed....

The convention center by Yacht Club makes it harder to close down a significant number of the rooms at the boardwalk resorts and not suffer a loss from the conventions. Vero and Hilton Head seem perhaps to be the 2042’s that more easily could just drop owners 1/1/42 since they don’t have the effect on Disney parks that the boardwalk resorts have. Disney could actually just sell those off.

There are downsides as well as upsides to both DVC owners and DVD in a trust model. I’m not convinced that is the long term strategy. Disney doesn’t just follow a logic model anyways as we’ve seen many times with DVD. I remember all the logic models as to why Poly Tower would be it’s own resort like CCV was it’s own resort…except in the end it wasn’t.

 

[Sandisw]

The convention center by Yacht Club makes it harder to close down a significant number of the rooms at the boardwalk resorts and not suffer a loss from the conventions. Vero and Hilton Head seem perhaps to be the 2042’s that more easily could just drop owners 1/1/42 since they don’t have the effect on Disney parks that the boardwalk resorts have. Disney could actually just sell those off.

There are downsides as well as upsides to both DVC owners and DVD in a trust model. I’m not convinced that is the long term strategy. Disney doesn’t just follow a logic model anyways as we’ve seen many times with DVD. I remember all the logic models as to why Poly Tower would be it’s own resort like CCV was it’s own resort…except in the end it wasn’t.

We will wait and see, but extending the 2042 resorts is something I’m 99.9% sure won’t happen.

 

[cruisehopeful]

We will wait and see, but extending the 2042 resorts is something I’m 99.9% sure won’t happen.

Disney is a money making machine. There's no way they'll extend current owners on those low point charts. If anything, they'll refurb and sell it on a new point chart, closer to Poly Tower, I'd bet.

 

[Mirabell Rose]

We will wait and see, but extending the 2042 resorts is something I’m 99.9% sure won’t happen.

However I did not state Disney would be ‘extending the 2042 resorts. Your words.
My remarks was:

‘I think DVC and Disney will need a major accommodation for the 2042 owners to keep them.’

I am 99.9% confident in this remark.

 

[Judique]

Well here I am waking up after midnite again.

As a 2042 owner of 4 resorts that will sunset on January 31st, 2042, it suits my long range plan. I won't be extending and if family decides they want to own, that's on them. Mine are grown and launched and all capable of acquiring DVC if that's what they want to do. None of them really show much interest. Yes, they love a family vacation with me but they also do lots of other trips.

Many owners of 2042 resorts already have moved forward and also own resorts with later expiry dates. LSL is coming online soon and will also be a 'later' option to buy into. And with 15+ years to go there is time to develop another resort and possibly sell out before 2042.

I believe Vero and HH will be sold off, HH will probably be scooped by Marriott. Vero, I don't know - maybe that property probably won't even continue as a resort. The ocean is eating away at the coast as we speak and the beach has to be replenished.

BWV will be rebuilt in some way and it will be interesting to see what direction it goes in. I would imagine that to go along with higher point charts there would be significantly upgraded rooms, maybe even some footprint changes depending on how the economy at the time is treating Disney.

BCV will be easier. Smaller and with the dubious allure of SB, it will probably just get a refurb and sell out quickly.

 

[Chili327]

Disney is a money making machine. There's no way they'll extend current owners on those low point charts. If anything, they'll refurb and sell it on a new point chart, closer to Poly Tower, I'd bet.

I’m sure by then it will blow well past the Poly charts!

 

[Sandisw]

However I did not state Disney would be ‘extending the 2042 resorts. Your words.
My remarks was:

‘I think DVC and Disney will need a major accommodation for the 2042 owners to keep them.’

I am 99.9% confident in this remark.

My initial comments were related to extensions and DVD moving toward using a trust model in the future as the way forward, including what will happen after the 2042 resorts close was a good option for them to deal with things.

Maybe I misunderstood your comments but I don’t think Disney is at risk of losing the 2042 owners simply because those resorts expire, especially since I have always said I think DVD will continue to build new resorts.

 

[Sandisw]

I’m sure by then it will blow well past the Poly charts!

When DVC first started with saying “save 70%” off your future vacations. So, points charts had to take that in to consideration.

Then it went to 50%, and now I don’t even think they market it that way.

So, the charts will definitely be higher but I do think it’s going to still relate to cash rates and Poly does cost more than those locations.

 

[mkatsy]

Mine are grown and launched and all capable of acquiring DVC if that's what they want to do. None of them really show much interest. Yes, they love a family vacation with me but they also do lots of other trips.

I 1,000% agree with this. Mine are grown as well and can’t jump fast enough at an opportunity for a DVC “all inclusive” get away, which is of course “all inclusive” because I’m there I see zero chance of them investing their own money in DVC, they have many other destinations that they enjoy.

 

[Brian Noble]

Then it went to 50%, and now I don’t even think they market it that way.

They sure do. The splash page for how DVC works says Save 50% or More in big bold letters.
https://disneyvacationclub.disney.go.com/explore-membership

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