- Sep 17, 2020
Yes, but Disney seems to be making the calculation that they are converting hotel rooms (in prime properties) to DVC properties. That tells me, Disney’s metrics indicate profitability can be increased by shifting people to DVC instead of one-night stays.
They're only prime properties to us. These hotels (which I would argue are what make Disney World special) were built in a different era where you "go big or go home." They're huge and full of theming, but costly to run and take up a lot of land. Pre-COVID Disney couldn't fill these "Deluxe" hotels rooms consistently without discounting them substantially.
They're flipping them to DVC to get rid of inventory, offload maintenance costs on aging buildings and prop up resort P&Ls. It's not because they want week long stays from DVC guests. They want to sell 1/2 the number of rooms at twice the price per night of a pre-COVID stay.
Before the Polynesian was converted, those outer buildings would be half full on a typical stay (excluding the holidays). Grand Floridian was even worse. Wilderness Lodge was priced per night as almost the same as a moderate (just slightly above resorts like French Quarter and Riverside).
More demand with less supply equates to higher prices. Higher prices equates to more revenue. Add in lower expenses (less labor, less maintenance costs because now DVC members are helping pay, less amenities like boats, tours, transportation, etc.) to that higher revenue and you've got yourself a Chapek post-COVID business plan.
Cherish these properties. Eat at their restaurants and buy merchandise at their specific stores so Disney has the metrics to keep those amenities open.
We will never see anything like them again from The Walt Disney Company.
As for 2042, they're going to have to offer something. They need the maintenance dues and can't have all those points expiring in one swoop. Now, that's not to say the extension won't come with restrictions.