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Problems with Aulani lead to executive firings and halted sales
by Scott Smith
Aug 19, 2011
A financial problem at the new Aulani resort in Hawaii has led to the firing of three executives and halted sales of the time-share properties at the resort. The president of Disney Vacation Club, Jim Lewis, along with Disney Cruise Line's senior vice president and CFO Jim Heaney and a former financial director for DVC, Lawrence Smith, were all forced out last week after Disney concluded that the dues that were to be charged for Aulani's time-share properties were too low to cover the cost of maintaining the resort. Disney has said that the operating costs of Aulani were underestimated and that the mistake was unintentional.
Sales of the time-share properties were halted on July 9th so that Disney could resubmit the proper documentation to the Hawaiian government to correct the annual dues mistake. There were fears that, if sales continued at the current low rate, Aulani would run into a major financial crisis and dues would have to be raised drastically, causing a backlash from customers. A spokeswoman for Disney has said that customers who have already bought into Aulani's time-shares will receive "a credit toward their annual dues equal to the difference between the original quoted amount and whatever higher price Disney sets now."
Disney has appointed Claire Bilby, a former senior vice president of distribution marketing and Asia Pacific sales, to run Disney Vacation Club.
http://www.wdwinfo.com/news/General...ead_to_executive_firings_and_halted_sales.htm
by Scott Smith
Aug 19, 2011
A financial problem at the new Aulani resort in Hawaii has led to the firing of three executives and halted sales of the time-share properties at the resort. The president of Disney Vacation Club, Jim Lewis, along with Disney Cruise Line's senior vice president and CFO Jim Heaney and a former financial director for DVC, Lawrence Smith, were all forced out last week after Disney concluded that the dues that were to be charged for Aulani's time-share properties were too low to cover the cost of maintaining the resort. Disney has said that the operating costs of Aulani were underestimated and that the mistake was unintentional.
Sales of the time-share properties were halted on July 9th so that Disney could resubmit the proper documentation to the Hawaiian government to correct the annual dues mistake. There were fears that, if sales continued at the current low rate, Aulani would run into a major financial crisis and dues would have to be raised drastically, causing a backlash from customers. A spokeswoman for Disney has said that customers who have already bought into Aulani's time-shares will receive "a credit toward their annual dues equal to the difference between the original quoted amount and whatever higher price Disney sets now."
Disney has appointed Claire Bilby, a former senior vice president of distribution marketing and Asia Pacific sales, to run Disney Vacation Club.
http://www.wdwinfo.com/news/General...ead_to_executive_firings_and_halted_sales.htm
