Strange cruise add-on experience

[lovedvc]

I purchased AKL this past weekend on the Magic it was buy 100 points get 20 free for the lifetime of the timeshare, it worked out to $106 per point. I thought that was pretty good considering I paid $96 per point 3 years ago for BLT.

 

[ELMC]

I purchased AKL this past weekend on the Magic it was buy 100 points get 20 free for the lifetime of the timeshare, it worked out to $106 per point. I thought that was pretty good considering I paid $96 per point 3 years ago for BLT.

It's interesting to point out that this promotion bucks the typical timeshare trend of "it's never going to be less than it is right now". The fact of the matter is that with this pricing structure, AKV direct points purchased using this promotion were technically less expensive than AKV direct points purchased in the months prior. This is fairly rare, and I'm wondering what the reason for it is. Could AKV sales not be living up to expectations?

 

[GOOFY D]

It's interesting to point out that this promotion bucks the typical timeshare trend of "it's never going to be less than it is right now". The fact of the matter is that with this pricing structure, AKV direct points purchased using this promotion were technically less expensive than AKV direct points purchased in the months prior. This is fairly rare, and I'm wondering what the reason for it is. Could AKV sales not be living up to expectations?

They billed it as a 20th anniversary limited special (that ended on June 15). If AKV was not living up to expectations, I am not sure why they would be raising the point purchase price from $130 to $135 on July 1.

 

[CMOORE185]

It's interesting to point out that this promotion bucks the typical timeshare trend of "it's never going to be less than it is right now". The fact of the matter is that with this pricing structure, AKV direct points purchased using this promotion were technically less expensive than AKV direct points purchased in the months prior. This is fairly rare, and I'm wondering what the reason for it is. Could AKV sales not be living up to expectations?

I have got to believe AKL has not lived up to expectations. It seems it has been for sale forever and has still not sold out. It has always sold for less than BLT, which sold much faster. I do not know what it is about AKL that does not make it attractive to buyers.

 

[disneynutz]

I have got to believe AKL has not lived up to expectations. It seems it has been for sale forever and has still not sold out. It has always sold for less than BLT, which sold much faster. I do not know what it is about AKL that does not make it attractive to buyers.

Well AKL couldn't stay booked with cash guests so they turned the 5th floor into DVC rooms. Then they built Kidani and expected that magically people would love the location???

Bill

 

[luv2sleep]

Interesting. I wonder why they would raise the purchase price (didn't it just go up?) if it wasn't selling well?

 

[tjkraz]

I have got to believe AKL has not lived up to expectations. It seems it has been for sale forever and has still not sold out. It has always sold for less than BLT, which sold much faster.

AKV has 65% more rooms than BLT so all things being equal, it would take longer to sell. AKV started selling in Feb '07 so about 5.5 years now. BLT has been selling for nearly 4 years. No great surprises there given the greater size.

But the cost disparity does speak to a greater demand for BLT by the public.

I do not know what it is about AKL that does not make it attractive to buyers.

Same as anything else. When given multiple options, people choose what they like best based upon location, style, amenities, cost, etc.

We've stayed at Kidani a couple of times and like it just fine. But it's not a resort I have ever felt compelled to own. Others feel differently and choose to own there.

Interesting. I wonder why they would raise the purchase price (didn't it just go up?) if it wasn't selling well?

"Selling well" is a deceptive term. Just because one product sells fewer units than another doesn't mean it is overpriced or should be branded a failure.

When McDonald's raises prices on its burgers, they don't just increase prices on the Big Mac because that's what they sell the most. Honda doesn't limit its price increases to just the top-selling Civic. Disney doesn't raise ticket prices for the Magic Kingdom alone.

 

[CMOORE185]

"Selling well" is a deceptive term. Just because one product sells fewer units than another doesn't mean it is overpriced or should be branded a failure.

When McDonald's raises prices on its burgers, they don't just increase prices on the Big Mac because that's what they sell the most. Honda doesn't limit its price increases to just the top-selling Civic. Disney doesn't raise ticket prices for the Magic Kingdom alone.

Your analogy does not quite work because BLT did increase in price while AKL and SSR did not, and in fact I think actually went down in price at one point. I remember a BLT price increase while AKL and SSR were selling for $99 per point.

 

[tjkraz]

Your analogy does not quite work because BLT did increase in price while AKL and SSR did not, and in fact I think actually went down in price at one point. I remember a BLT price increase while AKL and SSR were selling for $99 per point.

The poster I was responding to questioned why AKV went up when it wasn't "selling well."

Analogies aside, the fact is DVC will raise prices whenever they feel the market will bear it. There is no mandate to increase all resorts' prices at once, nor is there any obligation on DVC's part to only raise the resort which sells the most over any given period.

If DVC feels it can get away with charging $5 more for AKV points, they'll charge $5 more. If customers don't respond well to new prices they can introduce greater incentives, roll back the price or just ride it out hoping that demand will increase as time goes on.

 

[bobbiwoz]

Well AKL couldn't stay booked with cash guests so they turned the 5th floor into DVC rooms. Then they built Kidani and expected that magically people would love the location???

Bill

I was recently at Jambo, and I'm actually quite happy that DVC didn't buy all of the 5th floor rooms. I'm glad that most of the "value" area is still Disney's, as they are the ones facing the parking lot. There were lots of paying customers in those rooms.

 

[ELMC]

Interesting. I wonder why they would raise the purchase price (didn't it just go up?) if it wasn't selling well?

One reason that people have overlooked is that it is a built in call to action. Timeshares are mostly impulse buys and high pressure sales. Salespeople need to give people a reason to "act now" and an impending price increase is a huge motivator and a great sales tool for the salespeople.

 

[disneynutz]

One reason that people have overlooked is that it is a built in call to action. Timeshares are mostly impulse buys and high pressure sales. Salespeople need to give people a reason to "act now" and an impending price increase is a huge motivator and a great sales tool for the salespeople.

Works every time, so does free anything.

We met a couple at WDW who had just purchased a contract. They said that they went to the sales meeting for the free VIP Fast Passes and ended up buying. We talked for a few minutes and they gave us their passes. They said that the don't do many rides and that they thought that a Fast Pass was used for something else.

Now every trip to WDW I sit outside the sales center with a sign and hat panhandling for Fast Passes. (this part isn't true)

Bill

 

[tjkraz]

One reason that people have overlooked is that it is a built in call to action. Timeshares are mostly impulse buys and high pressure sales. Salespeople need to give people a reason to "act now" and an impending price increase is a huge motivator and a great sales tool for the salespeople.

Prices go up when DVC feels it can get away with charging more...not simply because they wish to give the sales staff a few weeks to use the "buy now to beat the increase" routine.

It's a good tactic for the sales staff to use but it isn't a driver of price increases.

 

[cdnsluvdisney]

One reason that people have overlooked is that it is a built in call to action. Timeshares are mostly impulse buys and high pressure sales. Salespeople need to give people a reason to "act now" and an impending price increase is a huge motivator and a great sales tool for the salespeople.

I've been to "high pressure timeshare sales presentations" before, but when going to the DVC Presentation, it was not the case at all for DVC. The staff were very friendly and casual and told us we had the entire week of our stay to decide (as we live in BC and can only buy when in the US from Disney direct). The price was the same in a week as it would have been if we bought that day. DVC doesn't need high pressured salespeople, the product sells itself!

 

[CMOORE185]

I've been to "high pressure timeshare sales presentations" before, but when going to the DVC Presentation, it was not the case at all for DVC. The staff were very friendly and casual and told us we had the entire week of our stay to decide (as we live in BC and can only buy when in the US from Disney direct). The price was the same in a week as it would have been if we bought that day. DVC doesn't need high pressured salespeople, the product sells itself!

I agree unless sales tactics have changed since I went through. DVC is the only timeshare I would have ever considered, so at least in my case the product sold itself.

 

[mjc2003]

Prices go up when DVC feels it can get away with charging more.

I don't think it's always this arbitrary or simplistic.

In my opinion, the recent price increases are less about getting away with charging more and more about are softening the blow of the forthcoming GFV pricing.

 

[tjkraz]

I don't think it's always this arbitrary or simplistic.

In my opinion, the recent price increases are less about getting away with charging more and more about are softening the blow of the forthcoming GFV pricing.

Many considerations go into such a decision but ultimately it's about charging as much as possible to maximize profits.

Yes, VGF will be expensive. And it will be expensive because Disney feels there will still be buyers ready, willing and able to purchase even at a high price point.

 

[CMOORE185]

Many considerations go into such a decision but ultimately it's about charging as much as possible to maximize profits.

Yes, VGF will be expensive. And it will be expensive because Disney feels there will still be buyers ready, willing and able to purchase even at a high price point.

I will patiently wait, and when this strategy fails I will buy it at the lower price, say if it falls into the $120's.