Possible DVC Profit Strategy?

[culli]

Read a few DVCMike strategy threads plus someone said we need a "hot topic" as things are getting borring. So while I was touring the Poly DVC and talking with a few members and CMs I had a few thoughts

• The crazy high points of Bungalows drives a great deal of points into the system for a few units
• Disney funds the creation of these units that have a strong possibility of being rented by CRO for a crazy amount (or at least to the avg or even above avg customer) assuming my theory that they will not be booked with DVC pts at full occupancy.
• If people are using pts for a day or so at the bungalows I doubt this will continue as probably a "one time event" - I could be wrong as most of the GVs are hard to book except maybe SSR
• To be honest the bungalows are pretty cool but I would much rather be drawn to GV.
• Only studio and bungalows at Poly drives any of those owners who want a 1 or 2 br to other DVC resorts making the 7 month window even more competitive
• If a majority of people are buying at the Poly with intentions of staying at the studios not the Bungalows there will a huge demand shift into the studios and other DVC reorts.
• People complain about SSR pts being used at other resorts but at least with SSR the pt stays are similar so even if last resort one could still get a room. This does not hold true for Poly pts.
• DVC can continue to fund these "luxury" experiments with little to no risk as the building and maint costs will be fully funded through DVC
• If this "luxury" building through DVC continues will availability at all resorts be an issue?

I could go on but I think the gist of my concern is obvious...anyone else feel this could be an issue?

 

[Brian Noble]

The last time someone looked at Bungalow availability, there really wasn't much. Someone is booking those units on points. It would be worth taking a look to see if that is still true.

In any event, I don't think DVC's profit strategy has changed, and it's the same as any other timeshare developer's. Keep construction cost below 20% of sales price, market strongly, and collect a comfortable fee on the management back-end.

 

[lawboy2001]

I agree that poly point charts will cause issues in booking. I always thought that the point values for nightly stays was based on some solid market research. Now it seems that Disney is manipulating the point charts to serve some agenda. When you total up the point values for a Poly bungalow stay, it's just ridiculous. For a week stay, you need about 1000 points...so your buy in would be about $160k, and annual costs of $6k...ie you spend $160k for the privilege of paying 900$ a night to stay in the bungalows. There is no way that that reflects market conditions. And don't anybody say oh bungalows are only for a night or two stay occasionally - people who buy DVC like flexibility but they want to stay longer than a night or two. There are hundreds of thousands of points whose owners will not be booking bungalows, but will be booking studios or other resorts. It will be a problem.

 

[dwight16]

Well there are a bunch of people who own 1000 points there is a thread on here some where.....your right no one is buying 1000 new points I would be surprised anyway if your that rich you can just pay cash and not give a crap. I mean points cost like 50 bucks back whe it started so people who added though out the years have enough to try but check it out in like 2 years when the novelty has worn off.

 

[disneynutz]

The last time someone looked at Bungalow availability, there really wasn't much. Someone is booking those units on points. It would be worth taking a look to see if that is still true.

In any event, I don't think DVC's profit strategy has changed, and it's the same as any other timeshare developer's. Keep construction cost below 20% of sales price, market strongly, and collect a comfortable fee on the management back-end.

Currently only 10 or less of the 20 bungalows are available for DVC bookings.

Bill

 

[Deb & Bill]

But the biggest problem with the bungalows is that they only have two real beds (one king and one queen). The rest are all portables.

 

[jekjones1558]

You raise good questions, culli. We have enough points to do a Poly bungalow but we have no desire to do so. We would prefer a GV for that many points. We also never do studios, even when we give room reservations to friends/family, so it seems not very likely that we will be staying at Poly. It would be fun to try it out because the first place DH and I stayed at WDW was a Poly room (about 100 years ago). Studios are a very popular choice for DVCers, so I know we are in the minority but I still think that it is too bad that there are no 1 bedrooms at Poly.

 

[Dean Marino]

Actually? This is a good thread. It's being brought up by people who CARE about Disney, even when they often don't care about themselves .
By pointing out hypothetical revenue loss situations? Perhaps those at WDW that SHOULD consider all this MIGHT consider all this (translation: I think we may very well have better Disney Managers on this board than Disney has in their offices).

 

[luckyman_apd]

I've always been concerned about the effect of Poly points and their effect on studios at other resorts ever since the points chart was released. 125 points a night? that's just ludicrous. I have 125 points a year...and boy do we stretch them. I would make me very sad if available at 7 months became next to impossible because DVD sold points that won't ever get used on those bungalows, but they pocket $ from the 1% that can afford $900 a night.

The thing is....you can stay in a bungalow in Bali for less than the replica at WDW.

 

[Deb & Bill]

DVD wants to sell points. They don't care about how the guests use them or if they even can use them. People see they can jam five in a studio and they go crazy. They might as well use that money to book a hotel room that sleeps five, like a moderate. At least they get two real beds in a moderate. They are actually getting more in a moderate than a studio. Except for a microwave.

 

[nabi]

 

[bwvBound]

Sorry for the slight thread detour ... your avatar reminded me of an image I saw recently on another forum.

 

[HookdonWDW]

We're also in the camp of those who own enough points to stay in a Bungalow, but wouldn't do it. Since we also RARELY stay in a studio, the Poly doesn't work for us...