The future of DVC, regardless of Comcast.

[KNWVIKING]

***"The vast majority of people in this country don't want to plop down twenty-grand and be forced to go to WDW every year for the next half century."***

I can't speak for the vast majority, but I know DVC can't build resorts fast enough to keep up with demand. the economy,9/11, SARS, terror,war and realality tv have had no affect on sales The only stumbling block so far is the Comcast situation right now. Some posters on the DVC board have stated they are being a little more cautious, taking a wait and see attitude.

***"B) Like Disney isn't make a good profit off your "maintenance fees" now?"***

They are only taking a couple points as profit. Marriott will not be able to increase that margin.

***C) Imgine how much Marriott will make off everything else (from boat rentals to "special vacation offers just for our most magical members") to all the trapped DVC members.***

How would they be more profitable then what WDW/DVC is doing now ? And in reality, no company is going to get rich renting water mice.

***D) "I'm sorry, but other members are have booked all the rooms for the dates you've requested. But we do have a room available for a slight "convenice fee" upgrade."***

This could happen, but on a very limited scale. And again, they aren't going to get rich with "convence fees".

***So you convince someone who to buy your new Aspen development with the idea they can go to WDW when they want to. In other words, Marriott builds where ever they want but can still "sell" WDW***

But they can do this already thru RCI or II.

 

[lenshanem]

If Marrioot bought DVC and added that to theri timeshare network how woudl that effect DVC members? Woudl they keep the same system for us or make us switch to their sysytem? Can they do that? (Anyoen knwo from our paperwork?) Woudl it be hard for us to book at the DVC properties then if it is open to all Marrtt timeshare owners?

 

[*Robin*]

Adding to that Shan, I'd like to know if it would also open all Marriott resorts to DVC owners?

Just curious...we've been considering DVC for a very long time, and are seriously reconsidering now.

 

[raidermatt]

I haven't studied the contract on this, but my understanding is we only bought the rights to stay at our home resort, so that is all that is guaranteed. I don't believe a sale would void anything that is contractually guaranteed, like consistent point values.

However, certainly other Marriott owners would have access to the WDW DVCs. On the plus side, I think its likely DVC owners would have access to the Marriott properties.

I'm not sure how Marriott handles "home resort" priorities, and exchanges to and from more and less popular choices. I have some of their material at home... if I can find it tonight I'll see if that's addressed.

Bottom line, would it be harder to book? My GUESS is that there would still be a priority system for DVC owners to book at DVCs. However, I would suspect it would get more difficult to book on short notice. I could be wrong on that, however, as Marriott does have some other desireable properties. I'm guessing Marriott owners may be asking the same questions...

They are only taking a couple points as profit. Marriott will not be able to increase that margin.

The point is, SOMEBODY wants to be in the business of making those few points. We know Marriott does. Certainly if Disney does, they won't sell.

I'm just not confident that's the case.

If Disney wants out, the only question is the price.

And, as AV said, who says some of the non-DVC resorts wouldn't be part of the deal?

 

[KNWVIKING]

I realize the properties could be sold by ME. But I'm just not convinced the return would be sweet enough for any potential buyer.

 

[DVC-Landbaron]

KNWVIKING

You are totally confusing me. When this thread first started you said that Disney would be NUTS to sell DVC BECAUSE it is soooooooooo lucrative! As in:

Why would Disney/ME ever want to sell this cash cow ?

And now you say:

But I'm just not convinced the return would be sweet enough for any potential buyer.

Make up your mind and I’ll gladly debate, but it’s very hard trying to hit a moving target!!

WHICH IS IT!!!!!!????

 

[lenshanem]

http://www.disboards.com/showthread.php?s=&postid=4910362#post4910362

I started a thread on the DVC board smilar to this to see what people wodul say. Thought i'd make reference.

 

[KNWVIKING]

You have convinced me that ME is desperate enough to try and sell DVC for the quick fix, regardless of the cash cow it has been. You win that arguement.

But that quick fix price would have to be high enough to bail him out , but it is my belief that that price would be too high for Marriott to consider. The big, up front cash has already been made by DVC.

 

[raidermatt]

These kinds of transactions happen all the time... Think about the mortgage industry, where some are interested in servicing, and some only in booking. Some change their minds.

Collections... some handle their own, some sell off to somebody else to do it.

Whatever the profit is on the existing DVCs, there will always be an appropriate selling price that would satisfy both parties.

Again, it all boils down to strategic direction.

 

[KNWVIKING]

Mortgages always work off thin margins though. There are very few "cash cow" opportunities with mortgages.

The timeshare industry though needs that up front cash infusion that comes from selling points,weeks or whatever system they use. The dues always pay the overhead & provide a couple points profit and then the resort tries to up sell various items & events to add to the bottom line. I guess it would all boil down to the selling price.

 

[raidermatt]

I guess it would all boil down to the selling price.

Yes, as well as what is included in the deal (such as other non-DVC resorts).

I agree on the up-front sales point, but I really believe Marriott would view this as a way to sell other properties in their club. Also, the right to build more WDW properties (or buy them from Disney) could also be part of it. After all, if the demand is there, as it appears to be, certainly both Disney and Marriott would want to take advantage of it.

 

[lenshanem]

Is there an actual rumor that marriott might buy DVC and/or soem WDW resorts or is this something that was just brought up in the thread?

 

[morphi]

I've got a question about on-going profits that Disney derives from DVC that I hope you guys can answer. How does Disney (or another company if they buy DVC) get any money from existing DVC memberships.

I understand they can make SOME money from the financing charges for those members who financed their DVC purchase. But what other sources of revenue are there?

Don't the dues simply cover costs and nothing more? Aren't the dues limited to exactly cover the operating, maintenance, tax, etc. charges associated with the resorts? If so, then how can a buyer make any profit by buying DVC from Disney?

It's also my understanding that the points charged for booking a non-DVC WDW resort (e.g., Grand Floridian) is always calculated to exactly break-even (in the medium-term) with the money DVC gets by then renting out the vacant DVC rooms that those points were not used to rent.

What am I missing?

 

[DisneyKidds]

AV has stated that he has heard rumors that Marriott has shown interest in the Disney resorts. That is enough to make me consider it a viable rumor. How likely a rumor is another question.

As for someone, especially an outfit like Marriott, buying DVC - I think it would be an attractive option even if the margins on the existing resorts are thin. Marriott is used to that as it is what they do. Those "thin" margins are where they make a lot of their money so to them it is attractive. ME could justify the sale by calling the margins thin, as they are certainly thin enough to be somewhat lost in a mega media conglomerate. I also agree that WDW resorts would be one hell of a feather in the Marriott Vacation Club cap, even if they provided next to no margin. Add in the fact that any sale would probably provide rights and opportunity to build new resorts (Eagle Pines) as well as finish selling SSR.............I think their is plenty to attract a buyer. Throw in the possibility of purchasing the whole lot of Disney resorts and it could be very attractive to an outfit like Marriott. As has been said, it could all come down to price.

I really hope DVC and the Disney resorts remain as part of a Walt Disney Company that continues to operate as an independant entity long into the future. If that doesn't happen I guess I'd be happier with someone like Marriott buying DVC than someone else. They are a nationally recognized, high end brand with experience operating a premier timeshare service. It would seem the DVC contracts are (hopefully) strong enough to assure no major changes in point structure, as well as to maintain a home resort preference for DVC owners. Beyond that I could live with being able to take advantage of the Marriott network of properties. Hell, if I were to consider another timeshare it would be Marriott's.

Here's to hoping the dream scenario of Eisner out, white knight in, independant Philosophy focused Disney (including resorts) sailing into the sunset. Ah...........to dream.

 

[G.Tyler]

I have a question regarding DVC. I thought someone once told me that one of the best features of DVC ownership was that unlike most timeshares, we have actual deeded interest which gives the general membership a voice in its direction. I've been a member for years but for logistical reasons I have never attended one of our annual meetings but I did have the impression that we were protected under Florida law in regards to real estate ownership/interest, and that the board and the general membership would have a say if an organization such as Comcast or anyone else should try to initiate a spin-off. I don't know that any of what I have posted here is correct, I'm asking.

 

[lenshanem]

I also agree that WDW resorts would be one hell of a feather in the Marriott Vacation Club cap, even if they provided next to no margin.

That si what sucks. Say we keep our proirity booking window for our home resort, but after that it opens up to all DVC owners AND Marriott owners. Thus, we DVc owners woudl almost be forced into booking our ressies that far in advance with no hpes of booking eleswhere or changing our dates if we needed to cause Mariott owners will have filled up all our DVC rooms.

 

[lenshanem]

I wnet and checked out Mariott's tiemshare site. Their resorts look very nice. I do wonder how they wodul value our points comapred to their's. Do they evn have studios? I kept seeing oen and two bedrooms.

 

[raidermatt]

Many timeshares don't have studios... can't say which of Marriott's do, if any. I know we were told by our DVC guide that when we did an exchange through DVC, we would likely need to book a 1-bedroom, but since we haven't done an exchange, I don't really know if that's true. (She could have been just trying to get us to buy more points...)

I'm with DK... I'd like to see DVC remain under Disney's umbrella. (Actually, if Disney is going to stay in this timeshare thing, I'd like to see them build or buy some properties in other "premier" locations).

However, if someone is going to buy them, I think Marriott is about as good as we could hope for.

We've actually started to look at their Maui resort, which looks very nice... that's why I have some promotional materials at home. However, I pulled a Homer and forgot to look at it last night... DOH!

 

[KNWVIKING]

***However, if someone is going to buy them, I think Marriott is about as good as we could hope for.***

We stayed at the new Marriott resort on I-Drive a couple years ago and went thru the sales presentation. Had we not had two boys in college we may have purchased there. It would compliment our DVC membership very nicely. Marriotts program does have some unique features.

 

[lenshanem]

I ahve to say I wnet to Marriott's timeshare website and it looked quite nice. We only have 200 poinst though. I'm curious how they wodul value our DVc points. It might be we ahve too littel poinst to effectively be able to book vacatiosn within their sysytem?