Not selling Aulani? What's going on?

[tjkraz]

The number of savvy add-on owners looking to break contracts up into small bits is almost certainly in the noise.

It's not just the savvy owners who split up their contract, rather there are also current owners who:

1) Wish to add a small piece of the latest-and-greatest to their portfolio, and
2) Have made incremental add-ons following an initial purchase.

The former group consists of current members who are not breaking up contracts, rather they are simply buying 50 or 75 or 100 points for short stays or use every 2-3 years. I don't see that as a practical approach for Aulani.

The latter group consists of owners who bought AKV or BLT dating back to 2007, and have since decided to add-on in small amounts. Perhaps in response to the point reallocations. Perhaps due to incentives offered since the initial purchase. Perhaps because they wish to vacation more frequently.

Ultimately, I would propose that the Aulani population lacks all 3 elements which typically produce small contract sales: desire to split larger contracts, sub 160-point add-ons from legacy owners and sub 160-point add-ons from Aulani owners.

 

[Brian Noble]

Sure. But the fact that the average is *so close* to the minimum buy in suggests that the add-on people are small in number vs. the new purchasers.

If wdrl has archived the data, it would be easy to confirm at least for the two resorts tracked.

 

[wdrl]

When Aulani deeds first appeared on the Hawaii Bureau of Conveyances website, some deeds had an information line that displayed the number of points in the deed. Of 223 Aulani deeds recorded at HBC in July to September 2010, 127 deeds had such information lines.

The 127 Aulani deeds that displayed point information accounted for a total of 19,944 points, an average of 157.04 points. However, this average is skewed by a single deed for 1,224 points (the cost of a fixed week in an Ocean View Grand Villa for weeks 9-12 and 27-35). If that one deed is removed, the average drops from 157.04 points to 148.57 points. There were 18 deeds for 50 points and 15 deeds with 250 or more points.

In September 2010, HBC stopped posting the number of points on a deed's information line and I have not been able to track point sales at Aulani since.

One other item to consider: Since June 2, 2010, when the initial Declaration of Units at Aulani was made, I have not noticed any subsequent Declarations. By the way, I do not know how many Units were Declared with the initial Declaration. I know DVD declared at least 9 Units, but I do not know if it declared all 25 Units that comprise Phase 1.

 

[Brian Noble]

If wdrl has archived the data, it would be easy to confirm at least for the two resorts tracked.

Sorry, I was thinking of BLT and AKV. Aulani hasn't been around long enough for a "normal" purchasing pattern to emerge. For example, it would not surprise me to see the fraction of add ons go down over time after the pent-up demand of current membership is satisfied.

For AKV and BLT, something like inter-quartiles would be interesting. Only if it is easy though.

 

[wdrl]

For AKV and BLT, something like inter-quartiles would be interesting. Only if it is easy though.

Sorry, but I don't have that type of information readily available. There are a lot of things I wish I tracked, like the percentage of add-ons vs. master contracts, but there is a limit to how much time I can devote to this obsession of mine.

 

[nyisles84]

.

 

[Brancaneve]

Does anyone have any recent news? After our add on was stalled, I am dying to know what is going on with our contract.

 

[BeccaG]

Last I heard from my source, they are still not selling Aulani at Disneyland. From what I hear, this has decreased their numbers overall (duh) and they are failing to meet their targets by huge margins

 

[Longhairbear]

Last I heard from my source, they are still not selling Aulani at Disneyland. From what I hear, this has decreased their numbers overall (duh) and they are failing to meet their targets by huge margins

Is that just the California sales of DVC, or overall sales?

 

[BeccaG]

Is that just the California sales of DVC, or overall sales?

I think it's everywhere, but since different states have different laws, I guess other states could be selling. However, from my understanding its the Hawaii end of things holding it all up, so I would guess it is everywhere, unless someone knows otherwise....Also, if one or two folks have purchased, those could be points that were previously spoken for whose original buyer rescinded their right to purchase...

 

[dizkrazkate]

Hi Everyone! More of a disboards lurker. Anyway, were just at Aulani and took the sales presentation on Thursday 7/28. It is indeed true that no one is actually selling points at Aulani, at least as of that day. Our guide, Andrea, told us that there was going to be some sort of legal change to the purchase contract. She did not know what that change was (or at least she wasn't going to tell me), or when it would be finalized so that they could sell. She was obviously hoping it would be done on or before opening on the 29th.

If you are interested in photos of the actual finished room, or some more details of the resort I have a full report/review of the resort on my blog, found in my siggie.

 

[ocmommy]

Thanks for the photos faith-trust. I can't wait to get there in December!

 

[Shelly F - Ohio]

Well I guess from Fridays actions by Disney to fire Jim Lewis we know why the sale of Aulani was halted. Seems Hawaii did not give Disney the legal right to sell time-shares in their state yet he did it anyway.

 

[tjkraz]

Well I guess from Fridays actions by Disney to fire Jim Lewis we know why the sale of Aulani was halted. Seems Hawaii did not give Disney the legal right to sell time-shares in their state yet he did it anyway.

Well, he's undeniably taking the blame for whatever screw up occurred with Aulani. Exactly what mistakes were made, when those mistakes were discovered (and by whom), and what specific directives he may have given are still open to speculation.

 

[TisBit]

Well, he's undeniably taking the blame for whatever screw up occurred with Aulani. Exactly what mistakes were made, when those mistakes were discovered (and by whom), and what specific directives he may have given are still open to speculation.

Again, we don't even know if it was due to Aulani that he was fired. The sales issue for the resort is not necessarily a "new" problem and has been going on for some time. While it is the most likely scenario....there are way too many other reasons people can get fired on the spot than even one major screw up like that. We are not even sure that DVC really did screw it up and not legal or even it being on Hawaii's end.

Jim Lewis was very involved in the timeshare industry and could have likely violated some conflict of interest clause in his employment agreement. Not to mention all the other things in the news that seem to bring down major politicians, businessmen, etc.

Most likely, we will never know the true "reason" for his termination, unless he goes public....which I doubt because I am sure he has a confidentiality clause tied into some sort of severance package.

 

[nytimez]

Well I guess from Fridays actions by Disney to fire Jim Lewis we know why the sale of Aulani was halted. Seems Hawaii did not give Disney the legal right to sell time-shares in their state yet he did it anyway.

Well, he's undeniably taking the blame for whatever screw up occurred with Aulani. Exactly what mistakes were made, when those mistakes were discovered (and by whom), and what specific directives he may have given are still open to speculation.

Again, we don't even know if it was due to Aulani that he was fired. The sales issue for the resort is not necessarily a "new" problem and has been going on for some time. While it is the most likely scenario....there are way too many other reasons people can get fired on the spot than even one major screw up like that. We are not even sure that DVC really did screw it up and not legal or even it being on Hawaii's end.

Jim Lewis was very involved in the timeshare industry and could have likely violated some conflict of interest clause in his employment agreement. Not to mention all the other things in the news that seem to bring down major politicians, businessmen, etc.

Most likely, we will never know the true "reason" for his termination, unless he goes public....which I doubt because I am sure he has a confidentiality clause tied into some sort of severance package.

Sales of their newest and possibly most expensive property on indefinite hold? The buck stops with J. Lewis on that one -- if he wasn't involved, he should have been. And if he was involved, it happened anyway.

Considering that this is the biggest screw-up in the entire history of DVC, he has to be accountable. Every day they can't make sales on Aulani is costing the company big money -- not to mention the fact that the eventual resolution will almost certainly involve a great big fine.

 

[TisBit]

Sales of their newest and possibly most expensive property on indefinite hold? The buck stops with J. Lewis on that one -- if he wasn't involved, he should have been. And if he was involved, it happened anyway.

Considering that this is the biggest screw-up in the entire history of DVC, he has to be accountable. Every day they can't make sales on Aulani is costing the company big money -- not to mention the fact that the eventual resolution will almost certainly involve a great big fine.

Again, without knowing details that is just speculation. It is entirely possible that this was a clerical error that was not entirely Disney's fault and they would have violated a specific law which carries a penalty. This is not cut and dry without knowing what the problem was.

Aulani is a new adventure for DVC. It is in a new state, has fixed weeks, etc. I am not saying that it isn't a screw up, but without knowing the details, we can't speculate. It would be something as simple as miscalculated point totals when the fixed weeks were put in. They could have found a problem within the POS and needed a legal review of it. None of these items would be contrary to law or push a fine. There have been a lot of screw ups in DVC and we would need to know what the problem was and if any action is coming before you can make any assumptions. I would bet that if they violated some Hawaiin law and Hawaii put a squash on sales, it would have splashed the news....as all of that would be part of public record. They obviously still fact finding or fixing something on the DVC end.

Don't get me wrong, this is a big mess up and could be as big as invalidating all the sales that have taken place, put a huge fine on DVC for every contract sold, etc etc. But we don't know that. Just like we don't know why Jim Lewis was fired, we can only make a guess based on our knowledge of the situation.

 

[nytimez]

Again, without knowing details that is just speculation. It is entirely possible that this was a clerical error that was not entirely Disney's fault and they would have violated a specific law which carries a penalty. This is not cut and dry without knowing what the problem was.

Aulani is a new adventure for DVC. It is in a new state, has fixed weeks, etc. I am not saying that it isn't a screw up, but without knowing the details, we can't speculate. It would be something as simple as miscalculated point totals when the fixed weeks were put in. They could have found a problem within the POS and needed a legal review of it. None of these items would be contrary to law or push a fine. There have been a lot of screw ups in DVC and we would need to know what the problem was and if any action is coming before you can make any assumptions. I would bet that if they violated some Hawaiin law and Hawaii put a squash on sales, it would have splashed the news....as all of that would be part of public record. They obviously still fact finding or fixing something on the DVC end.

Don't get me wrong, this is a big mess up and could be as big as invalidating all the sales that have taken place, put a huge fine on DVC for every contract sold, etc etc. But we don't know that. Just like we don't know why Jim Lewis was fired, we can only make a guess based on our knowledge of the situation.

People are reporting on other boards that they have been told they cannot buy Aulani at this time, including people ready to commit money for the purchase. If that's the case, this is neither simple nor would it compare on any level to any other screw up in the history of DVC. This is a cluster you-know-what in the grandest sense.

This isn't the first timeshare in the history of Hawaii, and it's not Disney first timeshare venture either. As complicated as it is, it's not unnavigable -- especially for a company with Disney's resources and experience.

 

[thepops]

Not to throw cold water on anyones plans but could whatever the problem is cause the current contracts to be invalidated? or delay the opening of the resort? Hopefully not, but if they were selling when they weren't authorized that could be a big mess.

 

[wbl2745]

Again, we don't even know if it was due to Aulani that he was fired. The sales issue for the resort is not necessarily a "new" problem and has been going on for some time. While it is the most likely scenario....there are way too many other reasons people can get fired on the spot than even one major screw up like that. We are not even sure that DVC really did screw it up and not legal or even it being on Hawaii's end.

Jim Lewis was very involved in the timeshare industry and could have likely violated some conflict of interest clause in his employment agreement. Not to mention all the other things in the news that seem to bring down major politicians, businessmen, etc.

Most likely, we will never know the true "reason" for his termination, unless he goes public....which I doubt because I am sure he has a confidentiality clause tied into some sort of severance package.

TisBit this is a really good point. We don't really know why is isn't there any more. The Orlando Sentinel actually used the word "fired" which seems bold if it were not the case. But true to form, no one is saying a world. If the Aulani sales problem in fact costs Disney a lot of money on the bottom line, that could certainly be the cause, but you're right, we just don't know.