DVC magic band is now Direct only

[Sandisw]

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.

They obviously don’t see it as counterproductive to differentiate because they have been doing it for 10 years now.

I guess I just don’t get why it bothers anyone when they know DVD wants membership extras to be for a certain group of DVC owners.

Personally, don’t care who has one but also don’t care if they are limiting it to just those who are DVC Y

 

[Nursemanit]

They obviously don’t see it as counterproductive to differentiate because they have been doing it for 10 years now.

I guess I just don’t get why it bothers anyone when they know DVD wants membership extras to be for a certain group of DVC owners.

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.

 

[MICKIMINI]

Maybe the restriction on shop Disney is more to allow only direct to buy from home vs resale having to do onsite?

Perhaps and much easier to enforce. I just found it interesting that the CM didn't even ask for my DVC info (I'm blue and white card). When I pulled out my phone she waved her hand and just gave me the discount. She had no idea if I owned DVC at all... I have seen that the resort stores are a bit more lax in the past, however don't expect an AP or DVC discount at a restaurant without proof!

In the past week or so we've been at Kona Cafe, Steakhouse71, Topollino's, Story Book Table, Space 220 and some QS's and all look closely at your AP/DVC credentials.

 

[Sandisw]

Perhaps and much easier to enforce. I just found it interesting that the CM didn't even ask for my DVC info (I'm blue and white card). When I pulled out my phone she waved her hand and just gave me the discount. She had no idea if I owned DVC at all... I have seen that the resort stores are a bit more lax in the past, however don't expect an AP or DVC discount at a restaurant without proof!

In the past week or so we've been at Kona Cafe, Steakhouse71, Topollino's, Story Book Table, Space 220 and some QS's and all look closely at your AP/DVC credentials.

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???

 

[tjkraz]

Agree or disagree, DVC believes that any moves which benefit direct sales will work in their favor. That equipping Guides to say "look at all this extra stuff you get access to if you buy from me" outweighs the number of prospective owners who will respond "yeah, but you're driving down the value of resale so I refuse to participate." The typical DVC buyer is still Average Joe who is having fun on a trip--maybe staying cash at a DVC property or renting points. Someone who goes into a sales pitch, figures out how to make the cost fit into their budget, and buys with little-to-no consideration for resale. Most people buy a timeshare because they wish to use it, not because it sports a sound exit strategy.

Merchandise restrictions are interesting because it's likely to cost shopDisney some number of sales. But as long as it represents another check box they can put on a list of "things you only get when buying direct", Disney may view it as a net win.

Over the years there have been times where members expressed frustration that popular merchandise items weren't limited to members-only.

 

[AstroBlasters]

I have never understood why resale purchasers think that DVC doesn't need to protect their product. Resale is their competition. It is in everyone's best interest for DVC to be able to continue to sell direct contracts. I also understand the appeal of saving money buying resale.
This change to a magic band might be a testing of the ability to make it work for future items, who knows. It's no different than other restrictions to those that choose to not buy direct. I mean at this point anyone buying resale knows what to expect.

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.

 

[Rick195275]

I didn’t read the entire thread but I didn’t see it mentioned. I am a resale owner, I can stay at Riv but don’t have a blue card so I fall somewhere in the restricted groups. I have a stay coming up in April booked on points, when I go into the pre arrival magic bands I can order the one being discussed here. Maybe it’s just for people staying on points but that seems strange too.

 

[kilik64]

I didn’t read the entire thread but I didn’t see it mentioned. I am a resale owner, I can stay at Riv but don’t have a blue card so I fall somewhere in the restricted groups. I have a stay coming up in April booked on points, when I go into the pre arrival magic bands I can order the one being discussed here. Maybe it’s just for people staying on points but that seems strange too.

You bought in that 3 year window where they restricted blue card (4/2016) until they said you cant stay at new resorts including Riviera, (1/2019).

 

[tjkraz]

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?

Sure, but they want it both ways. When someone buys resale, Disney gets some amount of theme park and dining revenue for years to come. When someone buys direct, Disney gets years of theme park and dining revenue PLUS a one-time bump of an additional $30K. (More if buyers finance, buy larger contracts, etc.)

Currently this DVC direct revenue stream amounts to $25-30 million per month just for the Florida resorts and Disney intends to sustain it.

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?

The history of the timeshare industry suggests few buyers give any thought to resale values before buying.

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.

On sold out resorts, the price disparity is artificial. DVC deliberately charges high rates because low point supply and low demand means they can turn a decent profit on each unit. Those prices are also intended to nudge buyers to the new resorts, which are much greater profit centers for DVC. Bay Lake Tower direct points are priced at $265 only because DVC would prefer people buy Riviera or Grand Floridian, and they're going to pay thru the nose if they insist on BLT.

Resale rates for actively selling locations typically hovers around 15-20% below retail.

 

[sethschroeder]

Because it is petty and counterproductive

I still don't understand this thought process. Its a fluff perk that Disney has created to show why people should buy direct. One of them is exclusive merch at this point such as this magic band.

Can you still get it somehow? Sure.

They however will use it in their sales pitch of these great things you get when you buy from Disney.

So its actually completely productive to what they are trying to do. Its no different than tons of other things in the world where you need a specific membership to get access to things.

 

[sethschroeder]

taking an existing product and preventing some members from purchasing it

Was this magic band sold to everyone historically and only recently labeled as blue card only? How I read it this was a new magic band released that released on shopdisney as blue card.

 

[sethschroeder]

Don’t you want more people wearing your merchandise to get non-DVC members around the parks to want to learn more?

Except there are options out there for people? There is tons of DVC merch that is not specific to DVC owners still. I could see your point if all DVC merch was removed but at this point it seems to be a single magic band?

I view it as they will let marketing roll out their normal line but in addition we will do an extra thing or two for this specific group (DVC here but APs get their own stuff as well).

 

[tjkraz]

Was this magic band sold to everyone historically and only recently labeled as blue card only? How I read it this was a new magic band released that released on shopdisney as blue card.

When that specific MagicBand was first introduced in Sept/Oct, there was no direct buy restriction. This is definitely something that was added in the last couple of weeks.

 

[AstroBlasters]

Sure, but they want it both ways. When someone buys resale, Disney gets some amount of theme park and dining revenue for years to come. When someone buys direct, Disney gets years of theme park and dining revenue PLUS a one-time bump of an additional $30K. (More if buyers finance, buy larger contracts, etc.)

Currently this DVC direct revenue stream amounts to $25-30 million per month just for the Florida resorts and Disney intends to sustain it.


The history of the timeshare industry suggests few buyers give any thought to resale values before buying.


On sold out resorts, the price disparity is artificial. DVC deliberately charges high rates because low point supply and low demand means they can turn a decent profit on each unit. Those prices are also intended to nudge buyers to the new resorts, which are much greater profit centers for DVC. Bay Lake Tower direct points are priced at $265 only because DVC would prefer people buy Riviera or Grand Floridian, and they're going to pay thru the nose if they insist on BLT.

Resale rates for actively selling locations typically hovers around 15-20% below retail.

I understand what you are saying, I just think it is small minded thinking from Disney.

The biggest competition in the travel industry is every other destination in the world where my family could be spending money, not resale. If I hold my Aulani contract until expiration in 39 years then I will have spent $204k in dues (+inflation) and countless tens of thousands more dollars more on food and merchandise at the hotel. If I use the points to stay near a theme park, that could easily be nearly another $100k in tickets and food/merch over the next 39 years.

That money could be going somewhere else. Don’t they want to create as many “raving fans” as possible that will come back year after year and entice others to think about doing the same? I just don’t see why they would want to make anyone feel “second class” so they can get a one time bump when it could reduce overall lifetime spending by more than the upfront buy in. But then again, managers only care about this years bonus….

 

[AstroBlasters]

Except there are options out there for people? There is tons of DVC merch that is not specific to DVC owners still. I could see your point if all DVC merch was removed but at this point it seems to be a single magic band?

I view it as they will let marketing roll out their normal line but in addition we will do an extra thing or two for this specific group (DVC here but APs get their own stuff as well).

IMO they are stepping over dollars to pick up quarters. If I’m not good enough to buy your magic band, then I don’t need any other DVC merch.

 

[sethschroeder]

That money could be going somewhere else. Don’t they want to create as many “raving fans” as possible that will come back year after year and entice others to think about doing the same? I just don’t see why they would want to make anyone feel “second class” so they can get a one time bump when it could reduce overall lifetime spending by more than the upfront buy in. But then again, managers only care about this years bonus….

Issue is people like Chapek are in charge where a short term bump is what they are after to hit their number, look good, and make money.

Its harder to get people who look at the company like their own and want to see it grow long term even if it means losing out on a short term bump.

 

[sethschroeder]

IMO they are stepping over dollars to pick up quarters. If I’m not good enough to buy your magic band, then I don’t need any other DVC merch.

From a marketing perspective the money spent on a couple shirts or MB long term likely is absorbed into other WDW areas and they get a large portion of that money regardless.

Their goal with something like this is net total dollars incoming increasing.

It doesn't mean they are accurate in proceeding this way but that is where its coming from.

 

[tjkraz]

I understand what you are saying, I just think it is small minded thinking from Disney.

The biggest competition in the travel industry is every other destination in the world where my family could be spending money, not resale. If I hold my Aulani contract until expiration in 39 years then I will have spent $204k in dues (+inflation) and countless tens of thousands more dollars more on food and merchandise at the hotel. If I use the points to stay near a theme park, that could easily be nearly another $100k in tickets and food/merch over the next 39 years.

That money could be going somewhere else. Don’t they want to create as many “raving fans” as possible that will come back year after year and entice others to think about doing the same?

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.

 

[limace]

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.

 

[KAT4DISNEY]

lol - just another time when DVC actually helps some to not spend money. Much like when they began restricting non-direct points from being used for the Disney collections.