Email about direct incentives and price increase coming

[JGINPL]

Received an email today about direct incentives. (Solicitation) When reading the email it states:
Hurry! The price-per Vacation Point increases from $195 to $201 at AULANI Resort and Disney’s Riviera Resort on 2/6!

We think a price increase on direct is coming to all resorts at that time?

 

[M:SpilotISTC12]

As I was reading your post I got the very same email. Interesting that they would raise the price. For two resorts that are not selling as fast as they hoped, I'm a little surprised.

 

[sethschroeder]

Called it was just thinking end of January so off by like a week or two.

 

[sethschroeder]

As I was reading your post I got the very same email. Interesting that they would raise the price. For two resorts that are not selling as fast as they hoped, I'm a little surprised.

Again they were selling Riviera at a pace which would have had it sell out when Reflections launched. They are still selling a primary chunk of points through RIV/CCV at the same rate 70%+ of direct points sold monthly that has always been the rate for like the last 10 years.

So I don't agree they are not selling as fast as they hoped. Any sales org is going to always want to sell faster but it seems it was right in line with projections until COVID and has been doing "well" in comparison even as sold out resorts are getting discounts.

I think there was even a chart showing RIV was outselling Poly and CCV basically every single month until shutdown occurred. If you have data showing bad sales or information stating they were behind in numbers happy to see it but it seems normally its just a statement with no actual data backing it up.

 

[M:SpilotISTC12]

I'm sure there is data stating that it was selling better than perceived. I only said that with my only source being the podcast. They were stating that it wasn't selling as fast due to the resale restrictions and this was before COVID. I could be completely wrong but I thought I heard it there.

 

[Sandisw]

I'm sure there is data stating that it was selling better than perceived. I only said that with my only source being the podcast. They were stating that it wasn't selling as fast due to the resale restrictions and this was before COVID. I could be completely wrong but I thought I heard it there.

Many keep speculating that but to be honest, I think that is all it is. Unless someone is a DVD executive who has knowledge of their expectations we are all guessing.

Given it’s a different product, those resale restrictions do not seem to be something that has had a major impact on sales.

And, if you look at what people have been willing to pay on the resale market...higher than many of us ever expected, even for the initial ones...leads one to believe people are willing to own restricted resorts.

If DVD is raising prices, then right now, they are satisfied with whatever target it is hitting. And, I have mentioned, the rooms not declared into DVC are there for Disney to use for cash stays, which, in turn, allows them to delay opening other deluxe resorts,

I bet DVD sales have taken a back seat to the WDPR divisions goals for onsite room bookings...JMO.

 

[BrianR]

Price increase is to throttle direct sales a bit so they have something to sell until another property gets online, otherwise the whole sales model falls apart. Plus if they need to get more sales they can just run the discount promos with a bigger $ off per point.

 

[sethschroeder]

I'm sure there is data stating that it was selling better than perceived. I only said that with my only source being the podcast. They were stating that it wasn't selling as fast due to the resale restrictions and this was before COVID. I could be completely wrong but I thought I heard it there.

They are pushing a narrative because they want resale restrictions removed. Also their "sources" within DVC may simply be talking about stretch goals as well. If you ever worked in Enterprise sales there is typically 3 sets of goals; what is projected, what needs to be hit to make the directors boss happy, and what you have to hit to make C-Levels happy.

I just point to RIV basically accelerating in point sales after opening and being on pace to sell out with the opening of Reflections as being in line with DVC management expectations. Not sure why people think DVC would want a gap between RIV selling out and REF launching (if COVID had not happened).

RIV vs Other Resorts from @i<3riviera
RVA vs. VGF - VGF spike out of the gate (first 3 months) then RIV outsold and actually bypassed total points sold before WDW closure
RVA vs. CCV - RIV outsold CCV every week except like 1 or 2 until WDW closed
RVA vs. BLT - BLT outsold RIV increasingly (BLT was first ever MK DVC and a higher minimum point requirement)
RVA vs. PVB - RIV outsold all but 3 weeks until WDW closed
RVA vs. BRV - RIV first month sales, BRV months 2-9 (prior to RIV opening), then RIV outsold after actually opening
RVA vs BCV - BCV first month spike then in line with RIV

 

[MJ NH]

Since I was only going to add 50-80 points at RIV, I guess I will do it before ground hogs day. All the incentives seemed to be for 100 points or more.

 

[Brian Noble]

For two resorts that are not selling as fast as they hoped

Another explanation is that DVD doesn't share this assessment.