Incentivizing direct purchase over resale

[KrzyAsian]

I think the only viable long-term option will be #3.

Further increasing the gap between direct vs resale with intangible benefits will probably be the only way to strengthen direct sales without devaluing current inventory/points. I agree that making the benefits based on tiers (number of points) would really only benefit the big pocketed 500+ point club. But if you start increasing direct benefits with intangible benefits (especially if they're park-related), I think it will encourage more to start buying direct. They've already started with adding these lounges, meet and greets, etc.

Examples:

1) Complimentary/Discounted Lightning Lanes (Like DLR, but better)
2) Discounted Dining Plans (like Welcome Home Weeks)
3) Discounted Park Tickets (like MMB)
4) Early booking windows for reservations
5) Early access to Festival Booths
6) Priority Walk-Up Dining Availability
7) Priority Access to Skyliner/Bus/Monorail
8) Dedicated Entrance during peak hours

Small things individually, but together ends up making a strong case to go direct if you plan on combining your DVC stay with park tickets.

Edit: forgot a word

 

[VGCgroupie]

I think the only viable long-term option will be #3.

Further increasing the gap between direct vs resale with intangible benefits will probably be the only way to strengthen direct sales without devaluing current inventory/points. I agree that making the benefits based on tiers (number of points) would really only benefit the big pocketed 500+ point club. But if you start increasing direct benefits with intangible benefits (especially if they're park-related), I think it will encourage more to start buying direct. They've already started with adding these lounges, meet and greets, etc.

Examples:

1) Complimentary/Discounted Lightning Lanes (Like DLR, but better)
2) Discounted Dining Plans (like Welcome Home Weeks)
3) Discounted Park Tickets (like MMB)
4) Early booking windows for reservations
5) Early access to Festival Booths
6) Priority Walk-Up Dining Availability
7) Priority Access to Skyliner/Bus/Monorail
8) Dedicated Entrance during peak hours

Small things individually, but ends up making a strong case to go direct if you plan on combining your DVC stay with park tickets.

These are actually all super great things they can offer. And most cost them 0 dollars.

 

[KrzyAsian]

These are actually all super great things they can offer. And most cost them 0 dollars.

That was the thought behind the suggestions.

I mean DVC is a unique timeshare company in the sense that they have this GIGANTIC asset of being associated with the theme parks. So why not lean into it and start offering things that the people over at Hilton and Wyndham would be dying to offer? And yes, most of these things wouldn't cost a thing except maybe some additional labor.

 

[Mirabell Rose]

I mean…. they are building a new hotel at WDW…. at least one as part of Disneyland FWD… and maybe another WDW hotel conversion at some point…. so, they pay attention….

DVD builds new and sells. Disney the parks IMO doesn’t pay attention to DVC members.

We are waiting to hear for sure if DVD will be the new Lakeshore Lodge. Disney has not said yet one way or the other. Lots of speculation here that it will be. It may. No official word on conversion to DVD.

 

[J-Dog]

The question between Options #1 and #3 is "what is it worth to Disney"?

Maybe the long-term viability of DVC will diminish if resale tanks, as other timeshare companies have seen, but that's a long-term problem, and the short-term gain of scaring people into buying direct to avoid restrictions may be worth it to DVD. We don't know.

On the other hand, we all want them to add more perks, but none of us know how much that actually adds value for DVD in terms of customer acquisition costs. In other words, does adding more perks directly contribute to more sales or not? Maybe DVD knows that the sucker who visits the DVC booth at MK while on vacation, and barely even thinks about it before buying, is their target audiance - and for those people, intangible perks barely move the needle as far as thier buying decision. We don't know.

 

[Sandisw]

While it is true that RIV has the same home resort exclusivity period, I think what many of us are concerned about is as more and more owners are locked in resale, they will feel pressure to book right at 11mo or even walk, etc…so it will look more like BWV than it does today. I tend to be pretty on top of it at BC and VGC, but for VGF, I rarely book at 11mo, let alone walk, knowing eventually I can get in somewhere I like/tolerate…restricted resale owners won’t be able to use banked points at all if they get locked out of the resort.

But if they bought it, doesn’t that mean they want to stay there exclusively?

If you know you want to be at a resort, then why wouldn’t you book it at 11 months?

I mean shouldn’t all of us always assume that home resort owners will be booking with the advantage we have?

Don’t many owners book home resorts at 11 months just to be sure they have a reservation in case they can’t trade?

I think what restrictions will do, though, is have people choosing resorts they want to stay at, maybe enhancing the need to own where you are comfortable staying.

I don’t see any situation where a RIV owner will ever be locked out of the home resort booking at 11 months…may need to be a different room size or view, but not shut out.

Any owner, at any resort, who waits too long, can risk not being able to book. If a one waits to book with restricted points, then that is on them and if one doesn’t want or can’t book as soon as possible when the window opens, then it’s not a good choice.

Obviously those who value trading may see a shift in options, but for the owners of resale points restricted, we bought them because we don’t want to trade.

ETA: Which, to bring back to topic, may move more buyers to direct so they have more flexibility, which is why DVD wants resale to be seen as inferior.

 

[Brian Noble]

And most cost them 0 dollars.

That was the thought behind the suggestions.

They don't incur direct expenses. But that is not the same as "does not cost Disney anything." For example, several end up giving up revenue on things they are already selling.

That doesn't mean one couldn't do them, and some of them are fascinating (early access to festival booths, etc.) But they are not "free".

 

[KrzyAsian]

They don't incur direct expenses. But that is not the same as "does not cost Disney anything." For example, several end up giving up revenue on things they are already selling.

True, but I was suggesting those discounts since they already offer them in some capacity. So I figured the loss of revenue would be negligible and might even be a loss leader to entice more spending.

For example, say they gave away one LL for stays on points and the family decides, "Hey, this was actually worth it. Let's buy the Multi-LL for another day of our trip." or "We'll be able to go for 1-2 additional days with the discount." which will lead to more spending for food etc.

Or another one I just thought of: Allow DVC members to use the refillable resort mugs IN the parks too.

All of this increases DVC visibility in the parks and basically acts as advertising by regular folks to non-DVC visitors. I can definitely see people in the parks asking:

"How come they get to use that line?"
"What allows them to get in early?"
"Why do they get to refill their mugs here?"

The bigger FOMO they manufacture, the more people would buy direct.

 

[Flash_Sloth]

Resale restrictions are doing a great job of differentiating what you get with a direct purchase vs. a resale purchase. Just look at the resale pricing of RIV. But that is giving some bargain hunters quite an incentive to buy resale RIV. They may prefer the flexibility of staying elsewhere, but because of the discount of the resale prices, begrudgingly accept those restrictions.

My brain is wobbling with the possibilities of how this is going to play out in the long run. It definitely puts resale owners at a disadvantage when life events pop up and a reservation has to be canceled or rescheduled on short notice. All owners are on equal ground during the 11 month window.

If there is a very popular resort that has resale restrictions, it could be horrible for resale owners if they ever need to change their plans in the 7 month window. Heck, my VGC points are not restricted, but if I need to change or make a reservation within 7 months, there are slim pickings remaining. I'm a little surprised that VDH resale contracts are so expensive when they'll probably have similar 7 month availability once the resort is sold out.

 

[AstroBlasters]

DVD builds new and sells. Disney the parks IMO doesn’t pay attention to DVC members.

We are waiting to hear for sure if DVD will be the new Lakeshore Lodge. Disney has not said yet one way or the other. Lots of speculation here that it will be. It may. No official word on conversion to DVD.

When was the last time Disney built a resort that wasn’t DVC?

 

[PolyRob]

When was the last time Disney built a resort that wasn’t DVC?

I would say technically Pop Century so 2003? Art of Animation opened later in 2012, but it was originally planned as the second phase of Pop. It was delayed and rethemed after 9/11.

 

[Brian Noble]

I’m pretty sure it was Gran Destino. Not a complete resort but substantial new cash inventory.

 

[Mirabell Rose]

When was the last time Disney built a resort that wasn’t DVC?

Star Wars Galactic
That doesn’t confirm it. Feel free to speculate. It becomes a fact when Disney releases it.

 

[CraigInPA]

MMB is DVC's first foray into creating three tiers of DVC members:
1. White card
2. Blue card
3. Blue card with MMB (I'll refer to this as the "Purple card" level)
However, unlike other timeshare operators, it hasn't tied Purple card to the number of points. Instead, it's just an add-on you pay for annually. I expect this to change.

At some point, DVC will come out with automatic Purple card benefits (or maybe even more benefits at another tier) once you reach, for example, 300-400 direct points. I don't have access to actual statistics, but I suspect the average number of points to be around 200, with a bell curve stretching from 150 to 250. What's an extra 100 points when you get a $99 annual benefit or a benefit withheld from "lesser" card holders? LOL. Sadly, I suspect some people will add on due to FOMO, ignoring the economic reality.

 

[Kingkonig]

Sadly, I suspect some people will add on due to FOMO, ignoring the economic reality.

I have to imagine not many will purchase 100 direct points solely to get MMB benefits.

Might help push the scale from buying 150 to 200 direct though if that’s on the table. Disney benefits more when they have members staying on property - the psychology of a “free” (already paid for) vacation lowers the barrier to spending more once you’re already there. Something the cruise lines (not just DCL) learned in the years ramping up to Covid

 

[kilik64]

Disney did release it to some of their preferred media about the details on LSL, it 100% has a DVC component. Supposedly it'll be mixed hotel and DVC, but it for sure will have DVC involved.

I'll bet all the mickey bars you can eat that its accurately reported it will have DVC rooms.

 

[RMDVC24]

For me it is increasing the perks. The most common thing you read about when people discuss resale vs direct is that the perks are not worth the money. IMO, discounted park tickets for blue card members would be a home run! Merch and food discounts are nice, but they amount to peanuts compared to the difference in direct vs resale point costs. If they offered 10% - 15% off park tickets, it would be a no brainer for many, many people.

 

[Mirabell Rose]

Disney did release it to some of their preferred media about the details on LSL, it 100% has a DVC component. Supposedly it'll be mixed hotel and DVC, but it for sure will have DVC involved.

I'll bet all the mickey bars you can eat that its accurately reported it will have DVC rooms.

I directly asked 3 DVC reps about LSL two months ago. All said Disney had not released if there would be a DVC component. When I asked each if they hoped it did, one said no because they had too much inventory on the table already to sell, and the other two would only commit to they would see if it happened. It remains speculation until Disney announces. It reminds me of the talk about whether the Poly tower would be a new resort or added onto the current one. Most said new. It wasn’t. If you feel you have Disney figured out, play the stock market with your visions of the future and you can buy all the Mickey bars you want to eat each trip. Just let me know when the current Poly prices will bottom out so I can get a good deal.

 

[J-Dog]

I have to imagine not many will purchase 100 direct points solely to get MMB benefits.

Might help push the scale from buying 150 to 200 direct though if that’s on the table. Disney benefits more when they have members staying on property - the psychology of a “free” (already paid for) vacation lowers the barrier to spending more once you’re already there. Something the cruise lines (not just DCL) learned in the years ramping up to Covid

Yeah. I kind of agree. MMB is probably worth the $100 that it costs. Barely. At today's direct prices, that's 1/2 of a point.

The point of adding perks is to encourage people to buy direct, and the point of potentially adding tiered perks is to get people to add-on.

IMO, those perks are going to have to be WAY better than the $100 MMB perks to get many people to add-on.

 

[AstroBlasters]

I directly asked 3 DVC reps about LSL two months ago. All said Disney had not released if there would be a DVC component. When I asked each if they hoped it did, one said no because they had too much inventory on the table already to sell, and the other two would only commit to they would see if it happened. It remains speculation until Disney announces. It reminds me of the talk about whether the Poly tower would be a new resort or added onto the current one. Most said new. It wasn’t. If you feel you have Disney figured out, play the stock market with your visions of the future and you can buy all the Mickey bars you want to eat each trip. Just let me know when the current Poly prices will bottom out so I can get a good deal.

You do know that they’re legally not allowed to tell you any information about a properties not for sale, right?

Also, my memory is that the majority of people thought that the poly tower would be part of the original association…. as it was the most logical choice.

Sure, nothing is a done deal until it’s finalized, but I don’t think that pointing that out in a very direct way is very constructive to the conversation.