The Economy and DVC

[MJS]

We love our DVC membership!!!

Every day it seems the economic news in the US gets more and more dire. (I could list what is going on with rising unemployment, company failures, bailouts, etc., but you get it). Disney seems to be feeling it with a declining stock price, all sorts of incentives for travelers, etc. Meanwhile, the DVC is opening new resorts, raising prices, etc. What am I missing???

 

[disneynutz]

DVD already has so much money invested in the new Mainland resorts that to postpone completion would cost even more money.

They play with the prices to create a feeling of perceived value and to generate sales due to the price increase threat. Usually they will increase prices and when sales drop off, they offer a discount incentive that reduces the actual price back to or close to the pre-increase price.

 

[tomandrobin]

Economics 101.....

The economy goes in cycles of expansion and contraction. The economy will pick back up, in some places it has not slipped a whole lot. In the long run, the new resorts will sell out. Hawaii is not suppose to be complete until 2011, that puts it smack in the middle of the next expansion of the economy. BLT is expected to open in September. This current recession is projected to start recovering sometime between June and the end of the year.

Also, the budgets for the new construction projects were in place before the economy went into a free fall.

 

[kimberh]

The news said the other day, " This is why we call it cycles." I will say I was shocked to see the price increase that goes into effect on the 15th. There must be some money coming in from somewhere.

 

[jlewisinsyr]

Selling a permanent interest low also locks in your lower profit forever. Renting a room at a resort at a lower rate only decreases your profit in that annual period.

 

[Cruelladeville]

After 9/11, the only money that kept Disney solvent, was the money from DVC. We were really appreciated at that time, and castmembers would even shake your hand and thank you if they found you were a DVC member. Disney acknowleged the DVC division toward their bottom line being in the black, back then. They only were selling OKW and BW, too, so think about the money that DVC must have to spend now with 100,000 members!!!