DVC non-restricted environment

[Bjaiken77]

A lot of stuff was taken away, suspended, restricted, or re-planned due to COVID. What do you think DVC sales reps will be working with to pitch direct purchases once DVC is operating in a non-COVID restricted environment?

 

[M:SpilotISTC12]

Nothing. The demand is there and they don't even have to offer you anything. Disney has all about been taking away not giving. I don't expect many perks to return. The only direct incentive from here on out will be the ability to stay at future resorts.

 

[Brian Noble]

What do you think DVC sales reps will be working with to pitch direct purchases once DVC is operating in a non-COVID restricted environment?

Fundamentally the same thing they've always used: the chance to bottle the "vacation magic" feeling the tour guests are in the middle of at an affordable monthly payment.

 

[Bjaiken77]

Nothing. The demand is there and they don't even have to offer you anything. Disney has all about been taking away not giving. I don't expect many perks to return. The only direct incentive from here on out will be the ability to stay at future resorts.

Thats am interesting take. True, they don’t have to do anything at the moment. I do think stuff will start coming back. I also think new stuff will be created while other stuff never comes back.

I know Disney very focused on the bottom line, but if you don’t care at all about your customers, that, too, starts to eat at your bottom line. Offering the same AP price of a Florida resident seems like a no brainer to me. That’s not going to come at much of a cost, and you know DVC members are only going to be there for a finite amount of time (avoids clogging up the parks).

 

[Bjaiken77]

Fundamentally the same thing they've always used: the chance to bottle the "vacation magic" feeling the tour guests are in the middle of at an affordable monthly payment.

I think there are more tangible, objective things coming. I bought both resale and direct without being in the park. While affordability is a nice incentive, DVC makes sure those resorts are full consistently. That’s a two way relationship.

I think you have to have a long term game - not just thinking about a period when people are dying to get out of their house. You need to sell, and have people keep coming back, when it’s hot as well as in the middle of an event like an economic recession. To do that, I think you need to give sales reps additional tools. You also need people to go home and tell their friends about how great it is to be part of DVC. I think you have to give them more than discounted lodging. However, that’s why I raised the question. That’s pretty much all we are getting now.

 

[Grumpy Mouse]

Nothing. The demand is there and they don't even have to offer you anything. Disney has all about been taking away not giving. I don't expect many perks to return. The only direct incentive from here on out will be the ability to stay at future resorts.

So what you're really saying is their "sales angle" will be ignorance of the resale market - since the chance of future resorts is on par with me winning the lottery.

 

[Bjaiken77]

So what you're really saying is their "sales angle" will be ignorance of the resale market - since the chance of future resorts is on par with me winning the lottery.

I’m not just looking at it in terms of direct vs resale. However, my opinion is that Disney is much more aware of the impact of resale (as evidenced by RIV resale restrictions) than others on this board. I’m looking at it in terms of this being an opportunity to provide more to some of your most hardcore, returning visitors. I can be pretty cynical about Disney, but I still believe providing DVC members with an extra special experience is important to them, even if it’s for no other reason than the bottom line.

A lot of stuff ended because of COVID. I’m sure that was an excuse to end some things. However, I don’t think they are going to cut it back to bare bones. I expect us to get things over the next three months that we don’t have now.

 

[M:SpilotISTC12]

So what you're really saying is their "sales angle" will be ignorance of the resale market - since the chance of future resorts is on par with me winning the lottery.

I mean do really expect them to not open another resort in the next 5-10 years?

 

[Sandisw]

I think they looked at short and long term goals, and adjusted them based on what happened vs what they had thought they could do.

Sales for RIV in April were 88k...I don’t consider that bad in this environment...they sold more when adding all resorts.

So, I think that as more of the regular things come back.fireworks, etc..they will go back to capitalizing on the. experience over lifetime visits.

I would love to see some more perks, but if they don’t happen, then for Me no big deal..the only one I hope returns...I think it will..is the AP discount.

 

[Grumpy Mouse]

I mean do really expect them to not open another resort in the next 5-10 years?

Depends on how long Chapek is CEO.

I think he and the rest of senior management see all of the growth opportunities in DMED - not in DPEP; certainly all of the growth opportunities of the stock price - which is what will give him (personally) the greatest return on his stock options. Honestly I think they view the parks as one big cost sink - and they kind of are as they are very labor intensive; it takes many, many, CM to deliver the magic year after year. Labor costs can be tremendous.

Building new resorts from the ground up is a ridiculously expensive undertaking; and then you need a legion of new CM's to staff and maintain the thing. A much more cost effective model is the expansion or refurbishment model of existing resorts; construction costs are significantly less as is the incremental labor required for maintenance and general staffing. I'm amazed they hadn't thought of it before - and I expect it to be the default expansion model going forward - like the recently announced VGF2.

And if some are right on this board - resale members will also get to utilize these expansions.

I personally think these expansions will be at the core of the next direct vs. resale battle - but I could be wrong.

 

[Bjaiken77]

I’d love for more expansions along the VGF2 line to come about. Some of us who are just becoming more financially stable never had a chance to buy into some of these great existing resorts. That, of course, assumes they either lower the purchase price and/or extend the deed.

 

[Bjaiken77]

I also want to add that it’s an opportunity to add-in more pay as you use perks. I know people are not feeling super confident about TIW coming back, but I like that model of perk. For some people, it will benefit. Others have no use for it.

The same can be said for Magical Express ending. Some people loved it and will find a substitute. Others never used it and drove their own car or rented one.

I still think they are going to find ways to differentiate DVC goers from occasional travelers. The expectations and needs are just different. With a clean slate due to relatively no perks over the last year, this is a good chance to try things.

 

[M:SpilotISTC12]

still think they are going to find ways to differentiate DVC goers from occasional travelers. The expectations and needs are just different. With a clean slate due to relatively no perks over the last year, this is a good chance to try things.

This would be nice. I'm a Disney pessimist. Just in the last year alone the demand has opened Pandora's (or chapek's) box of cheapness. They stripped everything and people want it more than ever. I mean how many times have you heard die hard fans say "if they ever do x, y and z I'm never coming back!" But guess what they still go back. DVC is no different.

 

[Bjaiken77]

This would be nice. I'm a Disney pessimist. Just in the last year alone the demand has opened Pandora's (or chapek's) box of cheapness. They stripped everything and people want it more than ever. I mean how many times have you heard die hard fans say "if they ever do x, y and z I'm never coming back!" But guess what they still go back. DVC is no different.

That is true. And I’m a Disney cynic as well. I’ve been going for close to 45 years. I remember when they’d let certain public service occupations bring their families in for free in the evening (I did that as a kid). It’s done nothing but get more expensive and less special treatment.

But still…I’m not so cynical (yet) that I believe Disney doesn’t care about repeat visitors who are going to consistently spend a lot of time and money at the resorts. Also, these people are going to be the best marketing agents for Disney and DVC. That’s what DVC members are, in a nutshell. I think that matters to them.

 

[Deb & Bill]

Thats am interesting take. True, they don’t have to do anything at the moment. I do think stuff will start coming back. I also think new stuff will be created while other stuff never comes back.

I know Disney very focused on the bottom line, but if you don’t care at all about your customers, that, too, starts to eat at your bottom line. Offering the same AP price of a Florida resident seems like a no brainer to me. That’s not going to come at much of a cost, and you know DVC members are only going to be there for a finite amount of time (avoids clogging up the parks).

They will only do stuff that won't affect their bottom line. They need to pay for tickets, dining, etc to the other Disney parts of the company if they plan on giving stuff away. Cheap Chinese goods like backpacks, bags, etc will happen first with new sales. Existing owners who aren't buying anything new won't get anything at all that requires a cost to DVC. Disney already has them paying the annual fees, plus the new owners buying all the stuff.

 

[sethschroeder]

Nothing. The demand is there and they don't even have to offer you anything. Disney has all about been taking away not giving. I don't expect many perks to return. The only direct incentive from here on out will be the ability to stay at future resorts.

Incorrect they are still posting certain perks exist just on hold. At a certain point they need to remove them or offer them again or they run some legal risks.

Best example is biggest perk of all which is discounted APs. It's still in the Disclosure Agreement which was updated in January.

 

[M:SpilotISTC12]

Incorrect they are still posting certain perks exist just on hold. At a certain point they need to remove them or offer them again or they run some legal risks.

Best example is biggest perk of all which is discounted APs. It's still in the Disclosure Agreement which was updated in January.

They can remove and add perks at any time with or without cause.

 

[sethschroeder]

Building new resorts from the ground up is a ridiculously expensive undertaking

Which has little to do with a new DVC.

I expect it to be the default expansion model going forward - like the recently announced VGF2.

SSR, Poly, CCV all are new resorts in existing buildings.

VGF could have been a new resort even but they decided to merge it since it still has 40 years left.

Further expansion at AKV in a few years time or Beach Club or any other place is likely to be a jew resort with new rules.

 

[sethschroeder]

They can remove and add perks at any time with or without cause.

Except as stated they are still putting them in legal description paperwork which was updated.

They cant keep them in that paperwork and marketing materials forever and simply never offer them....

It was stated nothing would return. My point is most of it never left and no sales are being done without saying how AP is still a benefit.

 

[M:SpilotISTC12]

It was stated nothing would return. My point is most of it never left and no sales are being done without saying how AP is still a benefit.

I don't think you're understanding what I'm trying to say. Whatever perks have been suspended won't come back. They don't need to give us any perks because we will just go back anyway.

In what part of the contract says we are entitled to AP perks?