DVC Board BrainTrust's Opinion ?

[TiggerFreak]

Could it be that as DVC membership grows, that the DVC management may change the lais'sez faire attitude they display regarding how the rest of the company treats and takes for granted the DVC membership. Maybe a large and ever increasing membership could give them some clout, seeing that DVC is portrayed as one of the still profitable arms of the Kingdom.

 

[Werner Weiss]

Actually, for the most part, DVC members are treated no better and no worse that any other on-site WDW guests.

In a few cases -- such as pool hopping to most WDW resort pools, free (tip only) valet parking at DVC resorts that have valet parking, and discounts at Disney Stores without having to be a Disney Club member -- DVC members enjoy additional benefits that aren't even available to guests at the Grand Floridian paying $500 per night.

Beyond that, it becomes a business issue for Disney. Sure, we all want better theme park admission discounts. But until somebody can build an irrefutable business case that by charging less, Disney will actually make more money, there's no reason for better discounts to happen.

The increased point costs for Disney cruises and Disney Collection resorts is because the DVC points that we turn in are now worth less to Disney in terms of needing that inventory for cash guests and how much those cash guests are willing to pay for nights at DVC resorts. Given the vacancy rate at WDW and the closed hotels, I'm glad that Disney hasn't suspended cruising on points and staying at Disney Collection and Concierge Collection properties.

I'm not sure that the rest of the company really takes DVC members for granted.

 

[Dean]

I agree with your sentiment, I'd like to see more goodies. While there are some advantages within DVC (other than the resorts), there are other benefits extended to other groups to which DVC is not included. Actually, my suspicion was that as DVC membership grows, WDW is less likely to offer benefits like discounts. I do think that DVC can bargain better for things included in the club like DCL, CC, DC options but it would require them standing up to other WDW components for our benefit, something I haven't seen them willing to do.

 

[DVCajun]

I'd love to see more discounts, including (or most of all) a park pass discount, but I don't see it happening. While I know it happens, most of us didn't buy into DVC so we could visit Universal while we're there.

 

[TiggerFreak]

Wouldn't an arm of the company that is one of the sole revenue producers, exhibiting significant growth, with a solid profit model have some potential for more influence?

 

[Werner Weiss]

Originally posted by TiggerFreak
Wouldn't an arm of the company that is one of the sole revenue producers, exhibiting significant growth, with a solid profit model have some potential for more influence?

Influence for what? Please identify some specific benefits or recognition that DVC management should obtain for DVC members. And please explain what DVC management should do to make it worthwhile for the other Disney entities to provide such benefits or recognition. Thank you.

 

[TiggerFreak]

Just a few disjoint thoughts.

I'm not as organized in my thoughts as others on the boards but for what it's worth:

Influence:
Stop siphoning profits from Parks and DVC to finance the exploits of upper management. Since the loss of Mr Wells, the company has suffered in vision and purpose. The company has lost focus, maybe DVC can show that the concepts of value and exemplary customer service still are the best way to produce a profitable product.

Customer demand:
I see the DVC membership as a group that understands and identifies with the belief set that made Walt Disney the company that others used as a standard in entertaiment and service.

Benefit:
Give DVC members a reason to visit the parks for the 50th time.
If they didn't have to support ABC, ..., maybe we would see some of the magic the likes of those marvels residing in Yesterland. MISSION:SPACE shows promise of being on a par with the standards of the past.

 

[Dean]

Originally posted by TiggerFreak
Stop siphoning profits from Parks and DVC to finance the exploits of upper management. Since the loss of Mr Wells, the company has suffered in vision and purpose. The company has lost focus, maybe DVC can show that the concepts of value and exemplary customer service still are the best way to produce a profitable product.

DVC is essentially a not for profit organization, not that much different than a coop. DVD of course makes a lot of money but we'd never see it regardless.

 

[Doctor P]

My opinion is that as DVC grows the chances of benefits at WDW goes down because the "cost" goes up. On the other hand, I agree that the possibility of benefits outside WDW with exchange companies and other companies may go up.

 

[TiggerFreak]

When I said DVC, maybe I miss-spoke(-typed?), can we agree to lump all the facets of DVC,DVD, any of the other DV?'s into one phrase? Any suggestions.

 

[chris1gill]

In theory I agree with you TiggerFreak, but I have always believed that quite the opposite will and is happening as DVC grows... I agree with some of the other items posted... as membership grows, the "cost" of giving these "perks" grows... To Disney, we are a captive audience, they've got us hook, line & sinker... why give us park pass discounts? They know we'll pay the $$$ anyways (for the most part)... As for our exchanges to The Disney Collection & the Cruise, with the vacancy rate at the WDW resorts right now, there's no way they want us using our points for that reason... more than likely they will not be able to rent the room, except if they offer a 40% discount...

 

[Caskbill]

Originally posted by TiggerFreak
When I said DVC, maybe I miss-spoke(-typed?), can we agree to lump all the facets of DVC,DVD, any of the other DV?'s into one phrase? Any suggestions.

Yikes...wouldn't that be fun. According to my paperwork we have no fewer than the following entities:

BVTC - Buena Vista Trading Company, a Florida corporation, its successors or assigns.

DVC - Disney Vacation Club Management Corp., a Florida corporation, its successors and assigns.

DVD - Disney Vacation Development, Inc., a Florida corporation, its successors or assigns.

LBVC - Lake Buena Vista Communities, Inc., a Delaware corporation authorized to do business in Florida.

RCID - The Reedy Creek Improvement District, a political subdivision of the State of Florida.

TWDC - The Walt Disney Company, a Delaware corporation, its successors and assigns.

Now, apparently DVD owns the land as lessee and leases it to LBVC as lessor.

BVTC is an external exchange company which exchanges use of the property to DVC who in turn manages use of said property by Club Members.

BVTC, DVD and DVC are all subsidaries of TWDC.


No wonder we have so many lawyers..

 

[DVCajun]

 

[doubletrouble_vb]

I think Disney will give DVC more discounts. But the question is...will you want to use them?

You give people discounts to get something. At the start DVC gave people park passes to buy DVC. They went big to get the attention of the buying public to buy DVC. Well now they've got that attention.

The only reason to give DVC'ers anything beyond what they have now is to get more people using whatever it is they want to promote. So I would say look for:

Discounts to the Spa at Disney Institute, discounts for golf, discounts for cash stays at Vero Beach or Hilton Head in the off season, discounts for whatever restaurants they want to promote...maybe even a discount to once upon a toy (for a little while).

To be honest I wish they would just give us a Disney Club card...and then include in the newsletter whatever additional benefits we might get beyond Disney Club. That way we'd get a pretty good magazine in addition to Vacation Magic and it would remove some of the discounting confusion that exists now.

 

[Johnnie Fedora]

For internal Disney exchanges like the DC, I think the 2001 points chart was more fair as an exchange value. It encourged DVCers to use DVC resorts, but didn't gouge as it does now. We seem to assume that a DC room would always be occupied by a cash paying customer for rack rate. I doubt that is the case, many probably go empty as certain times of the year.

Why not just assign a fixed dollar value to our points and let DVC members take advantage to the "going rate for a DC room" i.e. AP discount or whatever?? Why do DC weekends cost more for an exchange, when the cash rate is the same??
Answer: Because Disney makes out much, much better.

 

[joepoe]

Originally posted by Johnnie Fedora
...Why not just assign a fixed dollar value to our points and let DVC members take advantage to the "going rate for a DC room" i.e. AP discount or whatever?? Why do DC weekends cost more for an exchange, when the cash rate is the same??
Answer: Because Disney makes out much, much better.

I think it is Disney's best interests to keep the exchange rate as reasonable as possible as an incentive for new people to buy in. I am also sure that Disney DOES compute some kind of value per point for the exchanges.

Think about it. What difference is it to them whether they sell a cash ressie on a cruise or take points? If they take points, then they have more nights at the DVC resorts to rent out. If they make less money on a night at BWV (as an example) than a night on a cruise ship, they will raise the number of points required to book a cruise night. Believe me, if a cruise night was worth less than a BWV night, the points per night would come down!

The ability to exchange is a nice alternative. It gives members an option to use points to stay someplace other than a DVC resort, but it is not something Disney would do without evaluating the relative values of a night's stay.

 

[croach]

I awlays agree that if you are a loyal customer the seller should recognize that and make you feel like it is worth it. GIve you something extra, discount something, do something to make you feel "special."

That said what reason do they have to give you special discounts? They already have you. They know you are coming to the park or you will lose your points and then lose the value of buying into DVC. How often do you go to a resort at WDW and not go to the parks

The discounts are for those who they have to entice to come. Why do you think you can always seem to find discounts on rooms at Disney(mousesavers for example).

The DVC is great if love Disney and want to go there alot but I wouldn't expect to much special treatment.

 

[caveat lector]

As a finance guy, which supports a sales organization, I can say that patterns determine strategy. Translation: If Disney identifies a ratio whereby a significant number of DVCers are venturing off property to other venues, they will address it. They have the data, it's just "doing the math." If, as people have posted, they have a captive audience, there is no need.

In theory, putting the VB and HH argument aside, we are annual visitors to the park. So, unless the parks change, we will see some degradation in the desire to pay continually rising prices for the same experience. I'm beginning to fit into this category. I still get excited about visiting the Mouse's House, but no longer have to see everything and do every park. I've started to look for new experiences that my (almost $50/day/person) money can buy (i.e. Clearwater Beach, Kennedy Space cent, Universal Studios, etc.). IMHO, if they were to offer me a discount, I'm sure I could easily be swayed back to my "schedule of old."

Do they have to do that because I own at DVC...Absolutely not

Would i like them to do it?.....Absolutely

Would it benefit them?.....Absolutely

Would eveybody react that same as me?.....Probably not

 

[Dean]

DVC uses around $5 per point as the exchange rate or they did in the past, though the recent increases makes me wonder if they reduced that by $0.50 ir $1 pp in the last year.