DVC Deal to an Upgrade at SSR !

[CarolA]

Again, I have no problem that Disney gives away these perks. My problem is that why aren't DVC members getting at least comparable perks (if not more - we deserve it - we spend more, we promote more, we've invested more).

"We deserve it" Hmm.. why? We paid for a timeshare. Disney delivers. Anything else is bonus, not "deserve"

 

[Queenofthecastle]

I VERY MUCH doubt that, other than DVC members, other Disney guests will spend $175,000 on accommodations alone between now and 2054.

No, these guests will definitely not spend that much between now and then, but Disney sure wants them to and what better way to get those guests to spend that much than to give them a taste of DVC? These guests are already a captive audience, it should be like shooting fish in a barrel.

 

[Chuck S]

I VERY MUCH doubt that, other than DVC members, other Disney guests will spend $175,000 on accommodations alone between now and 2054.

It depends upon how you define guest, I suppose.

If you define it per hotel room...then the cash Deluxe guest will spend much more than that. 12 nights per year (which is about what 160 points will get in a studio) , at $400 per night = $4800. Multiply that times 50 year and you are looking at $240,000 just for the room. Now figure in the increasing cost if the room, and it will certainly be in the $275,000 plus range for the 12 nights of use of a CR room over the course of 50 years. It makes no difference financially to Disney (or any other business) whether that $275,000 comes from one person or 50 different people over the course of the years, as long as the room is rented.

In fact, the $175,000 from a DVC membership may not come from one single member, either, as contracts can be sold to other people. Remember, that over the course of the years, DVC dues have, on occasion, though rarely, gone down.

I am also curious how you arrive at the $175,000 figure. Figuring the $16K buy in for 160 points, and even $8 per point dues per year, that is $80K, not $175K. Also figure that over the course of 50 years, the cash visitor in a deluxe room, on a once in a lifetime trip, is more likely to splurge on the more expensive restaurants and try to do everything that Disney has to offer in that 12 day stay, rather than take the more relaxed approach to vacationing that DVC provides, and the "extra" spending for meals and souvenirs is a wash at best, and more likely higher with the cash visitors over the same period, as DVCers can prepare meals in their room.

Now, a Value resort room, at $100 per night, over 50 years, 12 night pers visit, will yield $60K (or only $20K less than DVC). So yes, basically, DVC members are getting a Deluxe studio for about the same price as POP. To make that $175K figure relevant, you must also figure that cash room costs will increase by 5% per year, or that a Value room at POP will cost $1000 per night when your DVC contract ends. Deluxe rooms would cost $4000 per night.

And no one has yet explained how Disney giving an upgrade, or more perks to other guests, detracts from their DVC stays or experience.

 

[DebbieB]

There's no argument as to WHY Disney's doing this. Of course, they're trying to get more members.

My beef is where is OUR love? - WE paid to build and maintain these awesome resorts so that Disney can give them away as perks to perpetuate the cash machine known as DVC.

Where is OUR free dining? Where are OUR upgrades to a larger room or a better view?

They don't owe us any "love". The owe us what is in the contract we signed. I consider the $100 AP discount a huge perk (and it's beyond what is in the contract, so it is a "perk").

Disney and DVC are a business. Free dining fills up empty rooms at a slow time of year in lieu of offering large room discounts. There's no business reason to offer it to DVC members, they don't make money by filling up the member rooms. It would cost them to provide the free meals, resulting in a business loss.

Regarding the Hilton Head promotion I mentioned, it was at a time when they were trying to complete the points sales and sales were slow (people were buying at the WDW resorts instead). The resort has low occupancy in Feburary, so they had empty rooms. They did offer the same promotion to DVC members who did not own points at Hilton Head, I remember getting a card in the mail.

 

[Chuck S]

Doing a little more math. Figuring a 5% annual increase in room prices, a 12 night stay at a Value resort that costs $100 per night now ($1200) will bring in $225,630 over the same 48 year time period, and a deluxe room that cost $400 per night now ($4800 for 12 nights) will bring in $902,521.

 

[Deb & Bill]

Basically, they had empty rooms at SSR and OKW. They had packed resorts at the values and moderates. They could fill the SSR and OKW rooms that were empty with the guests that they had at the values and the moderates and then sell the empty value and moderate rooms again. If they can't sell the SSR and OKW rooms to begin with, why not fill them up at a lower cost (better than leaving them empty) and sell those other rooms a second time.

 

[Brian Noble]

My beef is where is OUR love? - WE paid to build and maintain these awesome resorts so that Disney can give them away as perks to perpetuate the cash machine known as DVC.

This is pretty easy to understand, if you think about it for a minute.

Disney has your money. While you might view it as you owning a piece of Disney, in reality, Disney owns you---or, at least your vacation attention for the next 40 some-odd years. You've got those points coming, every year, whether you want them or not, so chances are good your coming to Orlando every year, until you sell off or decide to start using II, etc.

Disney needs to do next to nothing to keep you coming back. They spent all their time selling you up front. They don't need to sell you any more.

The cash guest, on the other hand, is a fleeting thing. They might decide next year to go to the Rocky Mountains, or the beach, or any one of hundreds of other vacation destinations. Disney has to sell a cash guest every single time they come, over and over again.

The difference in cost to the DVC owner and the cash guest reflects this, though. Because Disney only needs to sell you once, you are actually getting a pretty good deal. A new purchaser at AKV might have a cost basis of about $10 per point, amortizing the purchase cost at 5% annually over the 50 year lifetime. This makes gives an equivalent room rate of about $171 a night for a week's stay in an AKV Savannah View room during Magic season. Comapre that to a cash guest, who'd be paying anywhere from $290-$430 per night for a regular (non-studio) Savannah view room during the same time.

Discounting will bring the cash guest's cost down some, but generally not below the owner's cost.

 

[jarestel]

Empty rooms have no value to Disney. DVC members have already paid for their rooms, so whether we actually occupy them or not is irrelevant to Disney's (resorts) bottom line. But rooms that CRO can rent need to be rented, at whatever price, to avoid a total loss on the room for the night. If a DVC member wanted to rent (for cash) the same room, I'm sure they would get the same deal.

I would also agree that most people would place higher value and desirability on a Polynesian MK view room than they would on a DVC room that only offers more space. Location, location, location!

 

[pixie08]

Basically, they had empty rooms at SSR and OKW. They had packed resorts at the values and moderates. They could fill the SSR and OKW rooms that were empty with the guests that they had at the values and the moderates and then sell the empty value and moderate rooms again. If they can't sell the SSR and OKW rooms to begin with, why not fill them up at a lower cost (better than leaving them empty) and sell those other rooms a second time.

I think that pretty much sums it up

 

[TenThousandVolts]

I have NEVER heard of DVC doing this.

Anyone?

i HAVE NEVER HEARD OF DVC doing this either- but just for the record- a 2 bdrm at HHI in Feb. is pretty cheap to begin with. Under $200 I think.

 

[CarolA]

i HAVE NEVER HEARD OF DVC doing this either- but just for the record- a 2 bdrm at HHI in Feb. is pretty cheap to begin with. Under $200 I think.

There's a reason

I did get the "cheap" offer for a timeshare speil at HH. I can't recall the exact details but they were good. However, it was the middle of winter LOL!

There also used to be a coupon the Birnbaum's book with great rates there. Once again when NO ONE wants to go to HH. (I just looked the 07 book had 20% off coupons for both HH and VB.)

And if DVC has ANY sense no one who ever posts on the DIS will get an "upgrade" That would star an entire subculture trying to jockey for "when's the best check in time to get and upgrade" and "DVC didn't upgrade me and I got what I reserved and I am MAD" LOL!

 

[cincinmouse]

As far as I'm concerned, just another slap in the face to the loyal DVC members who built and maintain these resorts, with OUR money, for Disney.

Yes, they're Disney (DVC's) rooms to do with what they want. But, when they upgrade from a value or moderate ($99-129/nite - many times less) to a DVC Studio ($250+/night) or a 1BR ($400+/nite) it cheapens the brand. Why aren't they upgrading people from Grand Floridian, Contemporary, or Poly?

Plus, last year, they were upgrading people from value that were on the free dining plan! So, for $99 a nite, your family of 4 got to eat for free AND stay in a studio (or 1BR if you complained) in DVC!

But, they can't upgrade US, because that's a different set of points. Bull. You an use those points for outsiders, but you can't use them for US?!? Swap the points around so WE get some upgrades (from Studio to 1BR, or 1BR to 2BR, etc), and give the outsiders the swapped points.

Other than the AP discount, there's really nothing special. No upgrades, no free dining... we get a few minor discounts (5-10%) on things, but in order to get THAT perk, we have to spend more money - so, it's really a perk for Disney.

They up our exchange fee, they take away our dishes(?!?)...

I'm all for giving some perks to guests, but instead of rewarding those of us who are they loyal, spending thousands every year, they're giving these awesome deals to one-time visitors.

Where's OUR love?

(and I know they don't OWE us anything, but they don't owe any of the OTHER guests anything, either. Spread some magic our way.)

Have you looked at other timeshare companies? DVC is first and will always be a timeshare company. Even though Club is part of the name it is still a timeshare company not a country club and membership does not have to have any privileges, just your annual point allotment each year. Every timeshare company uses the owners money to build and maintain the resorts. I researched many other timeshare companies before purchasing DVC.

Most if not all other timeshare companies do not offer any of these types of perks. One of the reasons I purchased DVC was they never have the type of specials that you always see at some of the other timeshare properties in Orlando. Also, if you purchase direct from the developer your property value drops by 50% before the ink is dry. Disney is the only timeshare company that really inforces the ROFR to keep prices up. (which is to their benefit also) Why would I purchase a Starwood property in Orlando when I can just go on the internet and stay at a 1 bedroom for 150/night which has a buy in just as high as Disney and can find a property listing on EBay for $4,000. They do this to get you hooked and is a typical timeshare practice.

This is usually never possible at Disney. But one is a great while due to excess inventory of exchanged points for II, DCL, etc I will not begrudge them that because as mentioned in previous post they can always decide to pull the plug on trades. I bought DVC because of my family size I need a 1 bedroom and was not about to pay the 400+ per day rate every year. Now the day I can go to disney.com and book a 1 bedroom at SSR for 150/day in the middle of June, or go to EBay and buy 160 SSR points for $5,000 and pass ROFR then I will be OUTRAGED. Until then everyone should just CHILL and enjoy your vacations.