DVC sales growth ideas

[Ruttangel]

Just had a few ideas if I was at Disney I might consider to stimulate sales/cash.
Any jump out for you?

1. Allow contract extensions to 2057 for 2042 properties i.e. $25ppt
2. Create a short window of Resale to Direct upgrade, Condition could be that had to be DVC member prior to 1/1/20 and range $25-40ppt to account for current resort direct pricing difference
3. Removing restrictions on RVA contract
4. A new category of Annual Passes, 10 yr or even matched to DVC contract term. Could finance at same time as property.
5. Reduce direct benefit point threshold back to 50pts
6. All members receive 50% discount on all food for next visit before 1st Dec 2020. Has to be member staying.
7. Create their own transfer of points portal for members with admin fees.
8. Switch current Direct cash incentives to point incentives, 10% extra points after 150pt, 20% over 250.
9. Do nothing
10. Put prices up on everything

 

[Aussie RJ]

I think at some point DVC will offer a point 'upgrade' for restricted contracts, if they don't submit and remove the resale restrictions. Although its way too early to start that game. On the whole restricted contracts would still be quite a small group.

 

[_auroraborealis_]

Not a chance of 1. The legal issues of OKW make it clear this is not an option. When you extend the land lease, all contracts extend. Whether someone pays or signs or not.

 

[disneykim17]

#2 is a nice idea except that say you purchased a 100ppt resale contract at $110 = $11,000 and then say Disney wants to charge the $25-$40ppt then you would be paying an additonal $2,500-$4,000...double-dipping for the same 100 points. I would opt not to pay the additional fee and would prefer to keep my contracts as is. Now, if you purchased that 100 point contract then I would be willing to only pay $100 to upgrade from resale to direct.

 

[sethschroeder]

Not a chance of 1. The legal issues of OKW make it clear this is not an option. When you extend the land lease, all contracts extend. Whether someone pays or signs or not.

I could see them doing a separate contract. Everyone points to OKW but thats because of how that language was created. Instead they could sell a contract that is signed now, you pay for now, has a requirement of owning a 2042 expiration contract, but is completely separate.

Would they? Probably not though because its just too far in the future for Disney to plan for.

 

[sethschroeder]

4. A new category of Annual Passes, 10 yr or even matched to DVC contract term. Could finance at same time as property.
I am 100% on board with this. It could even be limited to when you are staying on points.


7. Create their own transfer of points portal for members with admin fees.
What? We already have the ability to transfer points for free so I am not sure why there would be a fee?

 

[Sandisw]

Honestly, I think right now, with only having RIV to sell as it’s main property, they will simply offer great cash discounts for bookings and not worry about sales right now.

Different divisions for most of what you mention. I think the long range plan for the 2042 resorts is to change up things in terms of points per night, so I do not see any extensions of the ground lease because as soon as they do, they are stuck with It.

 

[CastAStone]

Just had a few ideas if I was at Disney I might consider to stimulate sales/cash.
Any jump out for you?

1. Allow contract extensions to 2057 for 2042 properties i.e. $25ppt
2. Create a short window of Resale to Direct upgrade, Condition could be that had to be DVC member prior to 1/1/20 and range $25-40ppt to account for current resort direct pricing difference
3. Removing restrictions on RVA contract
4. A new category of Annual Passes, 10 yr or even matched to DVC contract term. Could finance at same time as property.
5. Reduce direct benefit point threshold back to 50pts
6. All members receive 50% discount on all food for next visit before 1st Dec 2020. Has to be member staying.
7. Create their own transfer of points portal for members with admin fees.
8. Switch current Direct cash incentives to point incentives, 10% extra points after 150pt, 20% over 250.
9. Do nothing
10. Put prices up on everything

#6 I'm not sure would add revenue. I don't think finances are factoring into DVC members staying home. Also the glut of points isn't really Disney's problem to solve. They will do what things that don't cost them money but i don't see them doing things that do; they don't have to solve it. It hurts owners, not them.

I could see them offering tangible things as incentives, whether limited merch, APs, free MNSSHP or MVMCP tickets, whatever they need to do. If they did throw in an AP, I couldn't see them offering APs beyond 2 years at most, more likely 1.

#5 would also likely reduce revenue, not increase it.

#2 is interesting. But my best guess is stronger incentives in the 100-200 point range on Riviera, Aulani, and maybe CCV for new members at some point.

 

[Deb & Bill]

With #2, I could see them offering this as long as you paid the difference between what you paid for resale and what the direct price is right now.

DVC is only going to make money for DVC. All the other park divisions will not give DVC freebies. So no free or cheap dining and no free or cheap park admission.

 

[RoseGold]

#5 is actually interesting and might actually make me hold my nose and buy RIV, which is not something I have said before.

 

[becauseimnew]

If they reduced direct benefits to 50pt, we would buy direct, but then they would have to reduce the minimum point purchase to 50pts.

 

[iflyjetzzz]

The only thing I see them doing is offering more temporary incentives to direct buyers.
I expect the next round of incentives (after current ones expire Sep 16) to be better than current incentives unless sales pick up significantly.

The problem I see around the bend is the lack of ROFRs from DVC will almost certainly cause resale prices to fall. They need to ROFR at least a few resales in order to not let the gap between direct and resale get too wide.

 

[CLE2WDW]

The problem I see around the bend is the lack of ROFRs from DVC will almost certainly cause resale prices to fall. They need to ROFR at least a few resales in order to not let the gap between direct and resale get too wide.

So true. If I’m a patient buyer I definitely am low balling as many offers as I can to look for a steal of a contract. I wouldn’t want to be a seller in this market... especially if I have a stripped contract due to the borrowing restrictions.

 

[Sandisw]

The only thing I see them doing is offering more temporary incentives to direct buyers.
I expect the next round of incentives (after current ones expire Sep 16) to be better than current incentives unless sales pick up significantly.

The problem I see around the bend is the lack of ROFRs from DVC will almost certainly cause resale prices to fall. They need to ROFR at least a few resales in order to not let the gap between direct and resale get too wide.

Except the vast majority of direct buyers don’t even know about the resale market....so not sure it plays as big of a role as we think for initial sales.

 

[iflyjetzzz]

Except the vast majority of direct buyers don’t even know about the resale market....so not sure it plays as big of a role as we think for initial sales.

The DVC resale market is huge. If the difference between direct and resale widens, it will tip more of those who know about resales in that direction.
Since DVC sent out direct incentives to every DVC owner, resale prices will need to adjust to be closer to direct pricing with incentives.

 

[Sandisw]

The DVC resale market is huge. If the difference between direct and resale widens, it will tip more of those who know about resales in that direction.
Since DVC sent out direct incentives to every DVC owner, resale prices will need to adjust to be closer to direct pricing with incentives.

Yes, it is but the number of DVC owners and new buyers out there that buy direct and have very little knowledge of it is still quite large.

 

[tjkraz]

3. Removing restrictions on RVA contract

This isn't intended to be some unnecessary "gotcha" for people buying direct. It's intended to boost sales. (e.g. "the only way you can use your Riviera points at other DVC resorts is if you buy direct from me!")

And we should probably recognize that there's a *chance* it has served that intended purpose.

 

[CLE2WDW]

This isn't intended to be some unnecessary "gotcha" for people buying direct. It's intended to boost sales. (e.g. "the only way you can use your Riviera points at other DVC resorts is if you buy direct from me!")

And we should probably recognize that there's a *chance* it has served that intended purpose.

Didn’t convince me. Especially considering that legacy DVC’ers can still book there without restriction.

 

[iflyjetzzz]

Didn’t convince me. Especially considering that legacy DVC’ers can still book there without restriction.

And there will be companies that rent out points which will allow you (for a fee) to exchange your L14 points for a RIV reservation.
Also, those RIV resale purchases can do the same thing - trade their RIV points for an L14 booking. through the rental companies. Plus I wouldn't be surprised to start seeing such trades showing up in the trades section of forums ... 'I have resale RIV points and would like to exchange points/reservations into an L14 resort.'

 

[tjkraz]

Didn’t convince me. Especially considering that legacy DVC’ers can still book there without restriction.

If you knew anything about DVC before you toured and/or purchased, then you aren’t representative of the target market for direct sales. Like most timeshares, DVC isn’t going after the educated consumer.