DVC magic band is now Direct only

[AstroBlasters]

Yes and no.

"Raving fans" don't tend to spend at the same rate as infrequent guests. Bob Chapek drove this point home more aggressively than others, but it's always been the case. To use your numbers, yes you may spend $100k in food and merchandise over the next 39 years. However, if Disney can instead lure 39 separate families to visit 1x per year, collectively they will spend a lot more than $100k. A LOT more. That's why Disney still has 25,000 hotel rooms rather than converting them all to villas and lowering prices to make DVC affordable to more.

Disney Parks and resorts aren't a resource with unlimited supply. To some extent, Disney chooses to cull the crowds in the interest of finding a balance between price and experience. (Heck, if they were just worried about getting bodies thru the gate, they could cut ticket prices in half immediately. But we both know it's more complicated than that.)

In the end, what they do is a choreographed process of juggling infrequent guests, locals, DVC owners and other groups to find a reasonable mix.

Once DVC points are sold, SOMEONE is going to use them. You can choose to use your points at Aulani, Bay Lake Tower, Hilton Head or any other location. Or you can rent them. Or you can sell them. SOMEONE will use those points. But without a steady stream of new sales, there's no reason for DVC to exist...at least, not the marketing component. Without future sales, there are no new resorts and no member perks. (Perks aren't some generous "thank you gift to our best customers!", they're incentives to buy and keep DVC points.)

Today there are still timeshares sold "new" for thousands of dollars which immediately lose the vast majority of their value. This is a policy that DVC could alter at any time if it backfires. But history suggests most people don't give any consideration to future resale value before buying direct. As such, whatever perks or benefits Disney can add to the list of reasons to buy from them stand to boost the product.

I work in finance, so I get it. I don’t have an issue with separate lounges, discounts, and events at the properties because those come out of the upfront buy in and not the dues.

I’m also West Coast based, so paying more for “Membership Extras” that are focused at WDW really doesn’t make sense.

But this thread was specifically about a DVC MagicBand, not all of the other “Membership Extras. Taking a MacgicBand and then actively making it restricted after it is released is IMO an example of the wrong people in management.

They spend millions a year on advertising and should want more walking billboards around the parks and properties making people wonder if they should learn about “Disney’s Best Kept Secret”.

 

[Sandisw]

There is a huge difference between the sales division wanting to spend money/service people who buy directly from them, like the Epcot lounge, and taking an existing product and preventing some members from purchasing it ( which is petty).

I, like you, have both direct and resale. I just think this practice is reinforcing the worst of DVC. Without resale buyers we would have no exit plan for these points so we should all be pro-resale.

All I can say is that I didn’t go in with resale value as part of making DVC be the right product for us.

So, I am honestly indifferent to what the changes DVD decides to make in terms of resale vs direct pros and cons.

Maybe I am in the minority but this just doesn’t seem like a big deal, especially when it’s only shopDisney that is restricted.

 

[SL6827]

When I mentioned artificial scarcity above, what I mean is, because they don’t have real, significant perks to offer blue card members-like APs, tables in wonderland-they have to create things that feel like perks. Which mostly seems to be we are going to take something everyone used to have access to or that used to be free and we will now make it restricted and treat it like a new perk. And again, I’m a blue card member myself.

Exactly. They are offering direct buyers nothing of value with perks.

 

[Wiltony]

I work in finance, so I get it. I don’t have an issue with separate lounges, discounts, and events at the properties because those come out of the upfront buy in and not the dues.

I’m also West Coast based, so paying more for “Membership Extras” that are focused at WDW really doesn’t make sense.

But this thread was specifically about a DVC MagicBand, not all of the other “Membership Extras. Taking a MacgicBand and then actively making it restricted after it is released is IMO an example of the wrong people in management.

They spend millions a year on advertising and should want more walking billboards around the parks and properties making people wonder if they should learn about “Disney’s Best Kept Secret”.

When they turn stuff like this on, there will always be some product out there already that is affected like this. Just because this was out previously and then restricted doesn't mean the people in management did anything wrong. If not this, then the next thing would have been affected and we'd all be hollering about that instead.

 

[AstroBlasters]

When they turn stuff like this on, there will always be some product out there already that is affected like this. Just because this was out previously and then restricted doesn't mean the people in management did anything wrong. If not this, then the next thing would have been affected and we'd all be hollering about that instead.

I think that the wrong people are in management if something as small as restricting a DVC MagicBand gets signed off as being aligned with the brand goals and customer experience.

I think the right management philosophy would be “How do we make this thing so valuable that no one would ever want to sell it?” “How do we get those people to come back year after year and provide such a magical experience that we will win the overwhelmingly majority of their allocated vacation dollars?” “What are the additional revenue streams of in theater movie going, streaming Disney+, merch, etc that those people will spend over their lifetime on our IP once back at home if they have that experience?” If they can figure that out and execute on it then the free market value of DVC will rise to be a lot closer to the direct value. There would always be a premium because of the instant gratification of direct vs the time and uncertainty of buying on the open market.

 

[Brett Wyman]

Just got one 2 days ago at the resort. I’m resale but from years ago with blue card. Don’t know if that means anything. I like it. It’s white with just the little blue and grey mickeys.

Im resale only, ever. And was able to buy one at the discounted rate as part of our next room stay.

 

[Wiltony]

I think that the wrong people are in management if something as small as restricting a DVC MagicBand gets signed off as being aligned with the brand goals and customer experience.

I think the right management philosophy would be “How do we make this thing so valuable that no one would ever want to sell it?” “How do we get those people to come back year after year and provide such a magical experience that we will win the overwhelmingly majority of their allocated vacation dollars?” “What are the additional revenue streams of in theater movie going, streaming Disney+, merch, etc that those people will spend over their lifetime on our IP once back at home if they have that experience?” If they can figure that out and execute on it then the free market value of DVC will rise to be a lot closer to the direct value. There would always be a premium because of the instant gratification of direct vs the time and uncertainty of buying on the open market.

Yeah, but at some point they might just be going after quantity here -- things to expand the long list of "member perks" to incentivize direct-buy over resale. I don't think it's much more complicated than that.

 

[Wiltony]

Im resale only, ever. And was able to buy one at the discounted rate as part of our next room stay.

That's how I got mine, too. (Though I am a blue-card holder with a mix of resale and direct.)

 

[AstroBlasters]

Yeah, but at some point they might just be going after quantity here -- things to expand the long list of "member perks" to incentivize direct-buy over resale. I don't think it's much more complicated than that.

I think you are 100% correct. I just believe it is lazy and short sighted.

 

[Airb330]

the Disney website

Which still barely works on a good day. But someone in IT coded for this? Sheeshhhhhhhh.....!

 

[BamaGuy44]

Because resale is not their competition, 100% of the available points are sold direct. Wyndham, Hilton, and Marriott are the competition. If there was no resale market - Disney would not be able to sell at anything near 207 a point. Resale makes DVCD money in propping up the value.

Disney obviously disagree with your analysis, or they wouldn't be creating strict restrictions on resale purchases.

Resale is absolutely competition to them. Until Wyndham, Marriott, etc start putting up time shares next to the theme parks, DVC really has no direct competition from them, IMO. How many people even look into other time shares when considering DVC? No way to know but I'd wager the percentage is single digits.

Do DVC wish resale didn't exist at all? Probably not, I'd guess they see it as a necessary evil, since a robust resale market does help prop up the price as you say. But other time shares seem to sell just fine, despite the poor resale market.

 

[tjkraz]

But this thread was specifically about a DVC MagicBand, not all of the other “Membership Extras. Taking a MacgicBand and then actively making it restricted after it is released is IMO an example of the wrong people in management.

If your only objection is regarding merchandise being limited to direct buyers, then yes, I agree it's a little silly.

Though, as I pointed out, members have voiced frustration in the past that shopDisney was not restricting sales of certain DVC items to members alone.

 

[HIRyeDVC]

Wow, Disney has drawn a line in the sand

 

[Wiltony]

I'm looking forward to the day they check your blue-card status before you can use the TV in the rooms!

 

[Ensusieasm]

Bout time, I don't want it saying welcome home to you resale purchasers either!

Ouch! Um, if there were no resale purchasers your direct purchase would not have any value should you ever decide to sell it.

 

[Sammie]

This just seems like poor business logic to me. Isn’t the point of DVC to keep people coming back to Disney properties to spend money year after year AND lock in a future generation of future Disney fans? Does resale pay any less dues, which is the largest expense over time? Don’t you want more people wearing your merchandise to get non-DVC members around the parks to want to learn more? Doesn’t having a robust secondary market give people a degree of confidence that they can take the plunge with a direct purchase because there is a way to get some money back if future life events change?

IMO, what Disney should be doing is using innovation and creativity to come up with ways to make the product so good that there isn’t such a huge discrepancy between the direct price and the actual free market price.

The thing is many people including myself never gave the secondary market any consideration at all when we bought and still don't. As to DVD they are in the business to sell direct points and nothing else.
DVD can't expand on the dues, which is earmarked completely for specific usage and not development of new properties.

 

[Sammie]

Because it is petty and counterproductive - and it detracts from the value of the product as a whole. Why not let someone who wants a DVC magic band purchase one online? Why spend time modifying the shop Disney website when you have not fixed the 2FA? ( and I don't agree with the different staff different divisions BS)

If someone feels special because you purchased direct then they need to work on actually accomplishing something in life.

I don't think anyone feels special because they purchased direct but it certainly seems that some of those that did not feel bothered by it.
Maybe they need to learn to just chill and accept that for whatever reason, DVC has decided to recognize the difference and that those bothered made the decision to save money on resale knowing the limitations.

As to why DVC made the change to this magic band on Shop Disney only time will tell if it's a one and done or a test to see if they can expand it in the future.

I do know that now when you do online dining, it knows I get a discount and it was automatically applied, which was really nice as I always forget about it.

 

[MICKIMINI]

And just had another thought. Maybe they are trying to experiment with getting online systems to do restrict automatically?

I know when you do mobile order or shopping at the parks with self check out option, everyone gets the discount.

I wonder if this is just a way to see if their IT department..not the best..can make it work so we don’t have to show as much in the future???

Bring it! My purse gets a workout pulling out my phone and wallet and rearranging everything again and again...LOL!

 

[Maistre Gracey]

Disney obviously disagree with your analysis, or they wouldn't be creating strict restrictions on resale purchases.

Resale is absolutely competition to them. Until Wyndham, Marriott, etc start putting up time shares next to the theme parks, DVC really has no direct competition from them, IMO. How many people even look into other time shares when considering DVC? No way to know but I'd wager the percentage is single digits.

Do DVC wish resale didn't exist at all? Probably not, I'd guess they see it as a necessary evil, since a robust resale market does help prop up the price as you say. But other time shares seem to sell just fine, despite the poor resale market.

There are numerous Wyndham & Marriott timeshares very close to WDW. The closest being Bonnet Creek Resort which is *almost* on property.

 

[Disney mac]

Yes and no.

"Raving fans" don't tend to spend at the same rate as infrequent guests. Bob Chapek drove this point home more aggressively than others, but it's always been the case. To use your numbers, yes you may spend $100k in food and merchandise over the next 39 years. However, if Disney can instead lure 39 separate families to visit 1x per year, collectively they will spend a lot more than $100k. A LOT more. That's why Disney still has 25,000 hotel rooms rather than converting them all to villas and lowering prices to make DVC affordable to more.

Disney Parks and resorts aren't a resource with unlimited supply. To some extent, Disney chooses to cull the crowds in the interest of finding a balance between price and experience. (Heck, if they were just worried about getting bodies thru the gate, they could cut ticket prices in half immediately. But we both know it's more complicated than that.)

In the end, what they do is a choreographed process of juggling infrequent guests, locals, DVC owners and other groups to find a reasonable mix.

Once DVC points are sold, SOMEONE is going to use them. You can choose to use your points at Aulani, Bay Lake Tower, Hilton Head or any other location. Or you can rent them. Or you can sell them. SOMEONE will use those points. But without a steady stream of new sales, there's no reason for DVC to exist...at least, not the marketing component. Without future sales, there are no new resorts and no member perks. (Perks aren't some generous "thank you gift to our best customers!", they're incentives to buy and keep DVC points.)

Today there are still timeshares sold "new" for thousands of dollars which immediately lose the vast majority of their value. This is a policy that DVC could alter at any time if it backfires. But history suggests most people don't give any consideration to future resale value before buying direct. As such, whatever perks or benefits Disney can add to the list of reasons to buy from them stand to boost the product.

What I think is VASTLY undervalued or considered is not that new people spend more, because I am not convinced they do. DVC people right off the bat are paying $$$ in dues, which pay for taxes, upgrades to facilities, parking lots, salaries, etc. that Disney does not have to pay. If we all left, imagine how much money they would need from "new people" to make up the thousands I spend right off the bat, let alone the money they make from direct sales. All of this without us even being there. So to only look at meals, park, souvenirs is so short sided and was ultimately the business side that Paycheck never really understood. The other side is that when we are underappreciated, people openly come to us and say...why should we go. And I can tell you Disney has lost hundreds of new people attending in the last 2 years just from what I have shared with them. So, the Pay grab they made is hurting them, whether they know it or not.