November Direct Sales

[davidl81]

I want to see what the AUL #’s are. I have said before if they were serious about selling it out. Make the price attractive and people will buy. $133 pp for 300 points was a very good deal.

AUL is interesting in a way. We all think it’s a DVC failure because it’s been 10 years and still not sold out. My guide had a little different take (for what it’s worth), his thoughts were that the DVC unsold inventory almost always sells out on the cash reservation side especially from Asian travelers, so it is generating a lot of cash flow. I’m sure the business model was not for it to just be a cash resort, but it’s not like a ton of rooms are just sitting empty not generating revenue.

 

[DVCPAT]

AUL is interesting in a way. We all think it’s a DVC failure because it’s been 10 years and still not sold out. My guide had a little different take (for what it’s worth), his thoughts were that the DVC unsold inventory almost always sells out on the cash reservation side especially from Asian travelers, so it is generating a lot of cash flow. I’m sure the business model was not for it to just be a cash resort, but it’s not like a ton of rooms are just sitting empty not generating revenue.

Exactly…. What’s the hurry? Let inflation drive up the costs and profit from both income sources. It’s like having rental real estate that generates income and greatly appreciates during inflationary times. It’s like having your cake and eating it too.

 

[nuhusky123]

Exactly…. What’s the hurry? Let inflation drive up the costs and profit from both income sources. It’s like having rental real estate that generates income and greatly appreciates during inflationary times. It’s like having your cake and eating it too.

I think this model works well for aul given dvc only has the one property and Hawaii will attract tourists Who want the Disney experience. it appeals to me for sure

wdw is a different beast as there is a surplus of rooms to sell. While dvc may be happy to sell excess inventory for a nightly rate this model won’t work for gfv2, especially given Disney had a hard time filling gf hotel rooms pre gfv2

 

[Bearval]

Slightly lower than October...

https://dvcnews.com/dvc-program/financial/news-34867/5189-direct-sales-remain-flat-november-2021
DVD relies on foot traffic in the parks and hotels for the sales people , with the lower than normal park visitors I am sure DVD is not surprised by the lower than normal sales numbers.

 

[DVCPAT]

I think this model works well for aul given dvc only has the one property and Hawaii will attract tourists Who want the Disney experience. it appeals to me for sure

wdw is a different beast as there is a surplus of rooms to sell. While dvc may be happy to sell excess inventory for a nightly rate this model won’t work for gfv2, especially given Disney had a hard time filling gf hotel rooms pre gfv2

Disney reduced all amenities pre gfv2 which affected occupancy. I compare Disney to alcohol … people will consume when happy or sad. Inflation changes everything… Disney will lead in raising prices to the consumer.

 

[nuhusky123]

Yes amenities were decreased but Disney has always had a hard timing putting butts into gf beds

im Not talking gfv but the pay per night hotel beds

if gf was selling out every night (they are not) they would not be converting an entire hotel building into dvc

disney can’t afford to let gfv2 sit unsold like aul Is really my main point

 

[sndral]

No. They will bill you in installments. It’s a nice perk because with our Disney Visa it gave us an Adirondack month as we did it over 30 days not 90. But still those 7 months allowed us to pretty much save For the total price and then didn’t have to touch the savings account at all!

Autocorrect rides again! Sometimes I wonder which keys I actually hit, when I see what autocorrect guessed my typing was supposed to state.

Haha - I read the first comment & thought dang, why isn’t Chase offering me an Adirondack [chair] a month?

 

[davidl81]

I think this model works well for aul given dvc only has the one property and Hawaii will attract tourists Who want the Disney experience. it appeals to me for sure

wdw is a different beast as there is a surplus of rooms to sell. While dvc may be happy to sell excess inventory for a nightly rate this model won’t work for gfv2, especially given Disney had a hard time filling gf hotel rooms pre gfv2

Yes WDW is a completely different situation. If all deluxe resorts were open and almost always sold out, then sure the AUL model would work there. But the deluxe rooms are not all sold out and DVC resorts that are not selling out are not really brining in new revenue on cash rentals since there are other unrented rooms on property.

You do have to start to wonder what effect has DVC had on overall deluxe reservations though. There are a lot of DVC members now who are not booking deluxe rooms, they are booking DVC rooms. At some point that has to effect deluxe room bookings.

 

[nuhusky123]

The problem Disney has with wdw is they are no longer the only deluxe level hotel provider

ten years ago if you wanted a quality room Disney was pretty much the only game in town

fast forward to today and the next five years and within a very short drive from wdw you can pick from

four seasons, jw, Waldorf and now a Conrad

go a bit further out and you have even more options. The supply in Orlando is insane and second in the us to only Vegas I believe

yes Disney and dvc have the advantage of the Disney bubble and on-site transit but in some cases that advantage is neutralized. Take ss, okw, akl for examples. You have to use a bus to get anywhere. If you can pay cash and perhaps you might choose the jw or four seasons over a Disney hotel

disney wins on the monorail loop but even in Epcot I’d pick the swan reserve over any Disney hotel. Cheaper and nicer IMO

 

[Vulnox]

The problem Disney has with wdw is they are no longer the oboy deluxe level hotel provider

ten years ago if you wanted a quality room Disney was pretty much the only game in town

fast forward to today and the next five years and within a very short drive from wdw you can pick from

four seasons, jw, Waldorf and now a Conrad

go a bit further out and you have even more options. The supply in Orlando is insane and second in the us to only Vegas I believe

yes Disney and dvc have the advantage of the Disney bubble and on-site transit but in some cases that advantage is neutralized. Take ss, okw, akl for examples. You have to use a bus to get anywhere. If you can pay cash and perhaps you might choose the jw or four seasons over a Disney hotel

disney wins on the monorail loop but even in Epcot I’d pick the swan reserve over any Disney hotel. Cheaper and nicer IMO

That's an aspect that makes dumping ME such an odd choice. It helps preserve your captive audience. The first time I went to WDW I was 10, and back then there was no ME or uber or whatever, I don't recall for sure but I am pretty sure my parents rented a car. But that let us stay wherever, and just drive to WDW. Fast forward to 2019 and we went with some friends who are basically annual WDW visitors, and they introduced us to ME and we just took it to Caribbean Beach Resort, didn't once think about a car or other transit our entire stay, and ME back to the airport. Now when we go in November we are discussing maybe renting a car, or what the other options are. But once you start paying for other options anyway, then Disney loses that captive audience aspect, people start seeing what else is available and heck, if I have to rent a car may as well save money and stay off site.

Won't be an impact for DVC owners, but I would think if even 10% of visitors give it more consideration it will be evident it was a mistake. I want to say time will tell, but I don't know if we will ever know if taking away ME actually hurts Disney's bottom line or on site visitor numbers, between Covid and that, the normal visitor numbers are all over the place compared to normal.

 

[nuhusky123]

That's an aspect that makes dumping ME such an odd choice. It helps preserve your captive audience. The first time I went to WDW I was 10, and back then there was no ME or uber or whatever, I don't recall for sure but I am pretty sure my parents rented a car. But that let us stay wherever, and just drive to WDW. Fast forward to 2019 and we went with some friends who are basically annual WDW visitors, and they introduced us to ME and we just took it to Caribbean Beach Resort, didn't once think about a car or other transit our entire stay, and ME back to the airport. Now when we go in November we are discussing maybe renting a car, or what the other options are. But once you start paying for other options anyway, then Disney loses that captive audience aspect, people start seeing what else is available and heck, if I have to rent a car may as well save money and stay off site.

Won't be an impact for DVC owners, but I would think if even 10% of visitors give it more consideration it will be evident it was a mistake. I want to say time will tell, but I don't know if we will ever know if taking away ME actually hurts Disney's bottom line or on site visitor numbers, between Covid and that, the normal visitor numbers are all over the place compared to normal.

Spot on, me kept the $ inside the Disney Bubble. With me gone that bubble has been smashed forcing customers to pay for transit. If you have a rental car I would bet 100% of those guests will now be tempted to at least drive off property. Quick trip to the outlet malls, universal, sea world, I drive etc.

perhaps it’s now worth driving off property for a meal. $ lost for disney

perhaps book a hotel off property. Even more $ lost for disney. By the way we love Kobe steakhouse (white sauce is awesome and Tijuana flats is fantastic)

yes you lose benefits, but Disney is now very much a rich mans vacation. Budget conscious customers may now think twice about being on property and deem $ saved well worth the loss of benefits which are becoming less and less anyway

 

[TinkAgainU]

I went to book my car for a January visit, and IMMEDIATELY thought to check offsite hotel rates. Although, to be fair, traveling with a dog this trip and WDW has few pet friendly options.

 

[The Jackal]

AUL is interesting in a way. We all think it’s a DVC failure because it’s been 10 years and still not sold out. My guide had a little different take (for what it’s worth), his thoughts were that the DVC unsold inventory almost always sells out on the cash reservation side especially from Asian travelers, so it is generating a lot of cash flow. I’m sure the business model was not for it to just be a cash resort, but it’s not like a ton of rooms are just sitting empty not generating revenue.

Disney does the same for the super point hungry PVB Bungalows. The owners pay to maintain them and Disney collects a lot of cash to rent them. But Disney has to shell out money to maintain the unsold rooms. Refurbishment will be coming up soon and DVC is going to have to shell out big bucks for that. Plus if it was sold out they would take in probably around $1,000,000,000 for what’s left. It’s gonna take them years to collect that in renting rooms. With all that cash I’m sure they would upgrade the website.