New APs and DVC incentive

[ziravan]

I know this has been discussed in the past, but given how the current APs are structured, why doesn’t WDW let DVC members make monthly payments like FL residents.

I know generally why they don’t allow OOS to do so (harder to collect debts from out of staters so generally not worth it).

But. DVC is a different animal. It’s not like WDW isn’t already used to collecting monthly payments from DVC members (loans, dues). And it’s not like those members don’t have relationships with WDW that can’t be used to coax payments.

They already have the system for FL residents, they’re already used to including DVC members in at least some FL resident only passes, and they have sufficient “hooks” into DVC members to encourage payments.

Where’s the downside for DVC to allow monthly payments for members for APs?

 

[Sandisw]

I think that its the same reason for any OOS residence. Buying tickets is separate from your DVC ownership. One really doesn't have anything to do with the other.

That is not saying they can't find a way, but just that the risks are no different than other guest who don't reside in FL..

I will say though it would be a really nice thing if we could!!!

 

[Brian Noble]

My guess: the point of monthly payments (for the Company) is to spur impulse purchases. A Florida resident visiting the parks who realizes that for "a few dollars more" right now they can get an annual pass and can come back later might convert.

I'm not sure the same impulse-purchase levers are there for DVC Members.

 

[ziravan]

My guess: the point of monthly payments (for the Company) is to spur impulse purchases. A Florida resident visiting the parks who realizes that for "a few dollars more" right now they can get an annual pass and can come back later might convert.

I'm not sure the same impulse-purchase levers are there for DVC Members.

Maybe but I suppose my point is that since the new program isn’t nearly as beneficial for DVC members, a payment plan would be a very cheap way to make it more beneficial.

That wouldn’t answer an impulse-purchase lever but might go a little further to justify why someone would purchase 150 pts direct for an AP perk.

Right now, those numbers don’t seem to add up. Making APs a bit easier to purchase seems like a no-brainer cheap way to enhance that perk.

 

[Narcoossee11]

I THINK the way legally Disney see it is DVC is property that can be foreclosed on, tickets can not be done so easily .
You do have a good point though.

 

[Brian Noble]

Maybe but I suppose my point is that since the new program isn’t nearly as beneficial for DVC members, a payment plan would be a very cheap way to make it more beneficial.

I'm not sure having a payment plan for APs is going to make a material difference to someone who is considering making (at least) a four-figure down payment on a five-figure purchase.

I mean, it might, but it seems as though at the moment DVD doesn't think so.

might go a little further to justify why someone would purchase 150 pts direct for an AP perk.

I think a developer purchase is almost never justified strictly in dollars-and-cents terms---and that was true even in the "old" AP model.

Maybe where we differ is in our estimation of the degree to which the resale market influences DVD's ability to close sales. Even though I think it is a deal-breaker for me, my guess is that it's no more than a minor annoyance to the overall sales operation. That's very much the minority view this this corner of the DIS. But I believe that this forum is not representative of even the average member with years of ownership experience, let alone that member at the point at which they were buying in.

 

[glocker]

I would be interested to find out if, "technically" DVC owners are considered residents of FL since we officially own a real estate interest in the state. Maybe someone should push that so we can buy the other passes.

With the increase in new AP, this 21 year DVC owner will be selling after my AP expires.

 

[Sandisw]

I would be interested to find out if, "technically" DVC owners are considered residents of FL since we officially own a real estate interest in the state. Maybe someone should push that so we can buy the other passes.

With the increase in new AP, this 21 year DVC owner will be selling after my AP expires.

I believe, IIRC, that there is something in our contract that mentions were are not considered residents.

 

[twincruisers]

Where’s the downside for DVC to allow monthly payments for members for APs?

From a corporate perspective, if someone defaults on the loan with monthly payment plans, it's much easier from a legal and financial perspective to only have to deal with a few states (FL/CA/SC/HI) than with 50. Especially if you want to send to collections. The fact that it's a FL-only probably means Disney believes they have a higher chance of collections in FL whereas it may not be worth it everywhere else.

 

[kanerf]

If you have a zero interest rate offer on your credit card it would work out the same making monthly payments.

 

[Sandisw]

If you have a zero interest rate offer on your credit card it would work out the same making monthly payments.

Or, you do what I did, I paid upfront at first, and now make monthly payments to myself so when I renew it’s already paid for!

 

[CarolMN]

I think the reason is all the different state rules that would cover the monthly payment options. Way more trouble initiating & complying than any benefit to Disney.

 

[starry_solo]

I would be interested to find out if, "technically" DVC owners are considered residents of FL since we officially own a real estate interest in the state. Maybe someone should push that so we can buy the other passes.

With the increase in new AP, this 21 year DVC owner will be selling after my AP expires.

Owning property in a different state that you live in does not make one a resident of the state in which one owns property.

 

[ziravan]

Owning property in a different state that you live in does not make one a resident of the state in which one owns property.

Right but this is an internal designation. WDW could decide that it counts for their purposes.

UO already allows for payment plans. WDW doesn’t have to go all in to offer the benefit to DVC; they just need to re-define THEIR version of “resident”.

The real concern is one-time visitors buying a plan, making one payment, doing their trip and then defaulting. By definition, DVC members are coming back next year so that “one and done” scam is very low risk for this crowd.

 

[AaronEuth]

Buried in the ownership documents are specific pages that outline specifically that owning DVC does not make you a Florida resident.

 

[buzzrelly]

I heard Pete explain this on the show yesterday. He said that if they allowed OOS visitors to make monthly payments, some people would make one or two payments and then skip out…essentially getting a week's worth of park hopper tickets for a couple hundred bucks. That would have never occurred to me but made sense when he said it. There are definitely people who would be scamming a way to work the system.

 

[chicagodisneyguy]

I guess the$100k question is will allowing the passes to be paid monthly generate additional revenues that would greatly outweigh any potential liabilities? I would have to guess not. I just don't see the upside for Disney. I don't think paying monthly would really tip the scales of annual pass purchases to any great extent.

I also think that if given the option, a very large percentage of people who purchase APs would take advantage of paying monthly....because why wouldn't you take advantage of 0%? Disney gets all that $$$ upfront and I think they know DVC members who want AP will buy them upfront.

 

[Brian Noble]

I believe, IIRC, that there is something in our contract that mentions were are not considered residents.

That's true even in the hotel terms & conditions, and it is very important---Disney does not want anyone who is not also a Disney employee to be able to vote in Reedy Creek elections.

 

[Tyler's Dad]

Definitely the reason they don't offer payments to out of state guests is return on the tickets. If Disney let people make payments and I signed up in November, when I am going at the Holidays, what stops me from stopping making payments in January? I already had my long stay and used the tickets I needed.

Locals tend to go in shorter stays throughout the year. Getting the down payment and then the monthly payments from locals should cover multiple short stays. Do they get burnt by this by locals? I'm sure they do, but you can bet those same locals don't get to get APs in the future?

 

[ziravan]

Definitely the reason they don't offer payments to out of state guests is return on the tickets. If Disney let people make payments and I signed up in November, when I am going at the Holidays, what stops me from stopping making payments in January? I already had my long stay and used the tickets I needed.

Locals tend to go in shorter stays throughout the year. Getting the down payment and then the monthly payments from locals should cover multiple short stays. Do they get burnt by this by locals? I'm sure they do, but you can bet those same locals don't get to get APs in the future?

Being a DVC member is what stops you. That’s like doing an eat and dash at your local diner.

It’s why Florida residents won’t typically do so and the same logic applies to DVC. We are coming back…