Non-theme park DVCs

[LAX]

I know AUL has taken longer than DVD would like to sell out, but how did HHI & VBR fare in terms of meeting their respective targets? I had been to AUL once prior becoming a DVC member and really enjoyed it. Based on its popularity, I am surprised to learn that DVD has been struggling with AUL sales (perhaps they have been pricing it too aggressively?).

In any event, I wish DVD would plan more non-theme park DVCs as it was really AUL that helped me commit to DVC. I figure if I ever get tired of the theme parks, I can always count on enjoying AUL (being on the West Coast). Perhaps others might feel with same with HHI and/or VBR. Hence, additional non-theme park DVCs may actually help DVD attract more potential members even if they are not fans of the theme parks.

LAX

 

[erionm]

Vero Beach was supposed to be larger than it is.

 

[disneynutz]

While many love the off-site DVC resorts, for the same points you can stay at WDW with all that it has to offer. Seems like a no brainier to me.

Bill

 

[Disney Dad ADL]

I would be on board with more non-theme park DVCs as well, but I do think they are a difficult sell for a couple reasons.

1. Expensive - There are many timeshares and hotels in Hawaii, it's difficult to convince the general public that Aulani is worth the added expense. Why not pay half as much and buy Marriott instead right next door in Ko Olina? The added expense is a much easier sell at WDW, since it's integrated into the whole WDW experience.
2. Lack of flexibility - DVC is not as flexible in terms of locations vs other timeshares. Basically only 5 locations: Hawaii, HHI, VB, WDW, and Disneyland. Using RCI exchange with DVC is possible, but it's a poor value compared to other timeshares who can exchange into RCI for much cheaper.
3.Because of the above, people who buy DVC are people who love Disney by necessity. The problem is, Disney-lovers will tend to buy VGC or WDW resorts and try to get in to AUL at 7 months, rather than trying to get into WDW at 7 months and risk getting shut out of WDW during high demand seasons. I'm on the West coast, so Aulani is definitely high on my list. But if I'm going to put down $30,000 on a timeshare, as a Disney fan it's hard for me to pass up VGC for Aulani (so we purchased at VGC).

Interestingly, the only way to fix this problem is to build MORE non-theme park DVCs because it makes DVC more attractive to folks who are only borderline Disney fans. If there were locations in Vegas, Tahoe, New York, Yellowstone, Mexico, etc, then DVC will draw more people who would be not be concerned about lack of options at WDW during Food and Wine. However, that's an expensive and risky bet for DVC to make, and it seems that they have given up on that for now. Maybe once they've decided WDW is oversaturated with DVC, they will start looking outward again.

 

[Simba's Mom]

I know AUL has taken longer than DVD would like to sell out, but how did HHI & VBR fare in terms of meeting their respective targets? I had been to AUL once prior becoming a DVC member and really enjoyed it. Based on its popularity, I am surprised to learn that DVD has been struggling with AUL sales (perhaps they have been pricing it too aggressively?).

In any event, I wish DVD would plan more non-theme park DVCs as it was really AUL that helped me commit to DVC. I figure if I ever get tired of the theme parks, I can always count on enjoying AUL (being on the West Coast). Perhaps others might feel with same with HHI and/or VBR. Hence, additional non-theme park DVCs may actually help DVD attract more potential members even if they are not fans of the theme parks.

LAX

If I remember right, HHI took considerably longer to sell out than originally predicted (and hoped). Too bad, because I'm with you-I wish DVD would plan more non-theme park DVCs. In my opinion, it's a shame that HHI was a disappointment sales-wise. For us, it's our favorite resort (yes, even counting WDW).

 

[BillPA]

Vero took 'forever' to sell, it was so poor that they only built about 40% of what was planned. It still took years to sell out.

 

[miTnosnhoJ]

I have heard somewhere that Aulani was built anticipating demand from not only the USA, but also China and Japan. For various reasons, including the economy, the demand from China and Japan has not materialized as much as they thought it would.

 

[tjkraz]

Going forward, DVC will promote RCI trades as the vehicle for non-park stays. The non-park locations cost more to develop (land alone is pricey in premier vacation locales; Disney owns the land at WDW and DL) and they sell much slower than WDW resorts.

Hawaii is sort of a "if they can't do it there, they can't do it anywhere" destination. And it isn't going as well as they'd hoped.

Most people buy a Disney timeshare for Disney theme parks. And people who are drawn to the non-park locations could find a much better timeshare system to fit their needs. There aren't enough people willing to be OWNERS at the off-site DVCs who are also willing to pay the high Disney prices and buy into a system that's 80% theme park locales.

 

[LAX]

It's interesting to hear that all 3 non-theme park DVCs have been disappointing to varying degrees (at least in the eyes of DVD). If DVD was indeed counting on Asian buyers to sell out AUL, that sounds like a perfect set up for failure. I mean if East Coast residents talk about going to HI in general (let along AUL) as such a travel endeavor, how can one expect those from China/Japan to be coming on an annual basis? I do realize there are some members residing in Europe, but I hope DVD didn't count on them to sell out the East Coast DVCs.

Well, I bought DVC based on what it currently has to offer, basically accommodations when I visit WDW & DL as well as the occasional AUL/HHI/VBR visits. I am certainly not counting on more non-theme park DVCs in the future.

LAX

 

[tjkraz]

If DVD was indeed counting on Asian buyers to sell out AUL, that sounds like a perfect set up for failure. I mean if East Coast residents talk about going to HI in general (let along AUL) as such a travel endeavor, how can one expect those from China/Japan to be coming on an annual basis?

Hawaii publishes some pretty detailed visitor statistics. Nearly 20% of all visitors to the islands are from Japan. Eastern US arrivals are just a couple percentage points higher. And the Japanese have the highest average per-day spending of any group.

It's a major vacation destination for the Japanese. I cannot offer any insight regarding actual sales to that demographic group, but from the outset there was plenty of reason to believe they would be drawn to Aulani.

 

[DenLo]

from Research & Economic Analysis-Hawaii.gov
Hawaii’s economy depends significantly on conditions in the U.S. economy and key international economies, especially Japan. According to the May 2016 Blue Chip Economic Consensus Forecasts, U.S. real GDP is expected to increase by 1.8 percent in 2016, 0.7 of a percentage point lower than the 2.5 percent growth rate projected in the January 2016 forecast. For 2017 the consensus forecast predicts an overall 2.3 percent growth in U.S. real GDP.

According to the May 2016 Blue Chip Economic Consensus Forecast, real GDP growth for Japan is now expected to increase 0.6 percent in 2016; 0.5 of a percentage point lower than the growth rate projected in the January 2016 forecast. For 2017, the consensus forecast now expects an overall 0.6 percent growth rate for Japanese real GDP.

I think DVD was expecting the Japanese to invest their monies into Aulani. And based on our vacations there it seems to be very popular with Japanese guests. I just don't think as many Japanese as DVD was hoping for are willing to invest as much as they have done in the past with the Yen's value being so low and their other economic woes.

 

[BillPA]

Aulani came up for sale about the time Japan was hit with that big earthquake that caused the reactor meltdown. That really hurt their economy. I would think that would have had a large negative impact on luxury spending like DVC.

 

[hakepb]

Aulani came up for sale about the time Japan was hit with that big earthquake that caused the reactor meltdown. That really hurt their economy. I would think that would have had a large negative impact on luxury spending like DVC.

Perhaps Disney should not work on other resorts. The Grand Californian opened in 2009 after California was majorly it by the housing bubble "pop"

 

[tjkraz]

Aulani came up for sale about the time Japan was hit with that big earthquake that caused the reactor meltdown. That really hurt their economy. I would think that would have had a large negative impact on luxury spending like DVC.

The Fukushima reactor meltdown was in March 2011. Surprisingly it didn't seem to have any impact on tourists visiting Hawaii from Japan. Total arrivals by air from Japan by year:

2010: 1.24M
2011: 1.24M
2012: 1.47M
2013: 1.52M
2014: 1.51M
2015: 1.50M

Total visitor days has risen by a similar degree, from 7.28 million days in 2010 to 8.77 million in 2015.

There certainly could be other economic factors at work. And demand has flatlined in the last few years. But in the immediate wake of Fukushima, there was no obvious decline in the Japanese desire to visit Hawaii.

 

[LAX]

Hawaii publishes some pretty detailed visitor statistics. Nearly 20% of all visitors to the islands are from Japan. Eastern US arrivals are just a couple percentage points higher. And the Japanese have the highest average per-day spending of any group.

It's a major vacation destination for the Japanese. I cannot offer any insight regarding actual sales to that demographic group, but from the outset there was plenty of reason to believe they would be drawn to Aulani.

I understand HI as a destination is one of the more popular ones amongst Japanese tourists. My point was if one were to fly 8-9 hours to vacation, there are lots of destinations to choose from (starting from Japan). Not to mention there would likely be the desire to travel less in some years. Thus, it's a lot to expect a family to travel 8-9 hours one-way to AUL on a yearly basis. Perhaps my vacation preference is very different from others, but I likely won't travel to WDW (only about 5-6 hours away) annually even now that I am a member. It's nice (and important) to have other options closer to home, which is obviously not the case for the Japanese unless you count the "Disney/Concierge/World collection" of resorts.

LAX

 

[Bunless]

As a west-coaster...
I would love more DVC properties at Disneyland so that we could actually use points there on occasion.
Also, wouldn't a San Diego property be great?

 

[LAX]

As a west-coaster...
I would love more DVC properties at Disneyland so that we could actually use points there on occasion.
Also, wouldn't a San Diego property be great?

Any new non-theme park DVC would be a great addition for me!

LAX

 

[chalee94]

As a west-coaster...
I would love more DVC properties at Disneyland so that we could actually use points there on occasion.
Also, wouldn't a San Diego property be great?

This is basically the problem, though.

Lots of us want more options for trading "on occasion". But DVC is finding that few people want to actually buy in to those offsite locations...

(And there is also the side effect of offsite owners potentially adding to the crowd to book WDW at 7 months out. )

 

[Soccerluvinmama]

As a west-coaster...
I would love more DVC properties at Disneyland so that we could actually use points there on occasion.
Also, wouldn't a San Diego property be great?

I would LOVE another property at Disneyland!

 

[Bunless]

We originally wanted to purchase at DL, but misunderstood a couple of things and ended of buying at Saratoga Springs. Probably the one big mistake that we've made in our married life. If they were to have another Disneyland DVC, we would jump on the chance.