Is now the time to lobby for DVC annual pass discounts?

[crisi]

DeeP,

While I agree that amoungst the Disney fans here, most probably spend enough time at Disney to justify an AP, I'd be shocked if that were the case amoungst the majority of DVC members. I suspect that there are far more 150 point owners who go down for five days once a year. Or every other year for a week.

The resale contract I didn't buy was 150 OKW points - owned by THREE families! I think that sort of arrangement - a shared contract - is far more common than is represented on these boards.

 

[CaptainMidnight]

I suspect that there are far more 150 point owners who go down for five days once a year.

And of course, don't forget us Vero Beach and Hilton Head owners doing combination vacations, thosew using thier points for cruises or other alternatives. I'd like to take the rafting trip down teh Grand Canyon someday. I also heard a rumor of a family going to a WDW DVC resort who didn't go into the parks every single day there were there. It's probably not true, but....

Cheaper passes may encourage more use, a model would need to be developed to test that theory, all of us are just guessing...

 

[trainfun]

Lots of good thoughts in posts above.

Some more to consider: Disney won't do this unless it can be convinced that it will make them more $.

Right now Disney is advertising value resorts at $55/night in our local paper (Newsday). Meanwhile DVC resorts are very busy. Having many of those good DVC'ers buy Ap's would be extra revenue for Disney, because most folks would hit the parks twice on one pass.

We have never bought LOS passes, we always use AP's so we can go in late July one year, early July the next. Our kids have seen the parks a zillion times, but we still like to go in for a dinner at EPCOT, fireworks, etc. We cherry pick our park time to avoid crowds and heat. The second year is extra revenue for Disney because we'd go to Vero or Hilton Head if we didn't have the AP.

So, I see this as a money maker for Disney.

To convince them someone with many more posts and who is well known on the boards could start a poll of how many DVC'ers use annual passes.

Also, if Disney gave a significant discount on the passes and made a commitment to do so for 10 years, then DVC could use this as a selling point. When DVC sells lots of points, those profits must show up on Disney Corp.'s bottom line. So, a significant AP discount could become a major DVC sales tool and help drive Disney Corp profits. If it is a "win-win" then it could happen.

Remember, many of us bought DVc with young kids, who are now older. They like to see the parks every few years, but if their parents had AP's for the family, the chances of more park visits would increase.

In a faltering economy this could provide a boost for Disney, even if only 5-10,000 DVC'ers took advantage.

 

[MrShiny]

I agree there is little economic incentive for Disney to provide pass discounts. They would act more as an incentive to buy DVC, and it doesn't appear Disney needs that. Now discounts on food and merchandise do make sense, since these are optional things. If you are going to stay in a DVC property, you are probably going to go to the parks, so you'll buy some sort of pass. They incent the one that makes them the most, the Unlimited (which forces yo to pay for park admission every day). Now you have a kitchen and probably a bunch of WDW merchandise already, so it is possible for you not to spend on those things relatively easily. And as they are high margin items, the discount is overweighed by the additional profit.

The thing that would prompt Disney to discount passes is if DVC sales slowed. With BCV 60% sold and Saratoga Springs on the way, that doesn't seem like it's happening.

 

[anniet]

Disney might need us in their parks more than one might think.....

http://www.orlandosentinel.com/busi...oct06,0,5006130.story?coll=orl-news-headlines


I would be very interested in a Poll to see how many days people spend in the parks.

I spend two weeks a year in the Orlando area, and maybe 4 days in the Disney Parks.

 

[Maistre Gracey]

Don't forget to figure all the people Disney would lose money on.

For example, my wife and I buy a PAP every year. Although we don't go to the parks in the morning, we eat every dinner at either the parks, or a resort. We also usually shop after dinner.

We take advantage of our DC/renewal rate for our PAP, and any discounts offered on meals. We do not let meal discounts dictate where we eat.

In other words, we spend the money already...if DVC gives us a discount on PAPs or meals, they will get less of our money.

I know this may be the opposite of many here, but there are also many members like us. The amount they would lose on members like us must be factored in.

 

[crisi]

Same thing with a discount on stuff - only profitable for Disney if you spend the same amount of money - or are convinced having the discount is such a deal you spend more. If you use your discount to save money - go out to dinner the same number of times at the same places, buy the same t-shirts - Disney loses money on the deal.

While there are certainly all three types of people out there (those that would spend the same and get more for it, those that would spend even more since they are getting a deal, and those that would buy the same stuff - just cheaper), its a mystery to me what the mix would be and if it would be more profitable.

And there is the margin question. While there are certainly things at Disney carrying high margins, I am unconvinced that we are being soaked at every turn. I find most sit down restaurants to be fairly competatively priced to what I pay for a similar meal at home, most clothing to not be marked up dramatically from what I pay at home (I don't shop for clothes at Wal-Mart though - but I'm not getting Wal-Mart quality from Disney either).

The current DVC discounts seem to be used as crowd control measures - lets move DVCers to some very good but less popular restaurants. This helps create buzz on the restaurants, and frees up the more popular restaurants.