The VGF 2 pricing thread

[DVCsloth]

Hmm...my guide mentioned he couldn't wait to call me next week and knows I am not buying at that price. So, I am going with closer to RIV.

That makes sense, they want to sell as an alternative to Riviera. Pretty comparable resorts IMO. I do prefer VGF though.

 

[Brian Noble]

They're undoubtedly also aware that people are everything from unhappy to outraged by the recent push to charge more for lots less.

They do. not. care. The parks are full-to-bursting, and according to comments made during the most recent earnings call, the uptake rate of G+/ILL is higher than expected. The per-capita revenue (the amount each guest spends in the park each day, on average) was up 40% compared to the same quarter in 2019. That's just a phenomenal result, and suggests that they were completely correct to further monetize the theme parks.

 

[nuhusky123]

My DVC guide reminded me that VGF was selling at $255 when I asked if he had any idea what the VGF2 pricing would be. Then, he said we'd have to wait and see. Sounded to me like he was hinting it would be closer to $255.

My read of this is the guide has no dang clue

 

[kmedina]

Hmm...my guide mentioned he couldn't wait to call me next week and knows I am not buying at that price. So, I am going with closer to RIV.

That would be nice. Could have been his way of underpromising and overdelivering, because I will buy VGF resale if VGF2 comes in at $255 or higher.

 

[nuhusky123]

They do. not. care. The parks are full-to-bursting, and according to comments made during the most recent earnings call, the uptake rate of G+/ILL is higher than expected. The per-capita revenue (the amount each guest spends in the park each day, on average) was up 40% compared to the same quarter in 2019. That's just a phenomenal result, and suggests that they were completely correct to further monetize the theme parks.

What will be very interesting is how are the parks doing in two years.

I argue the parks are full because of massive never seen before pent up demand where many people didn’t take vacations due to covid. I count myself in that list and will do three trips to wdw this year when ive not gone once since covid

there Are of course those doing their once in a lifetime wdw spend all my money trips

and the final camp are those doing wdw because they want a vacation and typically go to Europe or some such locatio but for covid reasons don’t want to travel overseas

when these conditions subside will wdw demand remain, will all these non Disney fans continue to go post covid or have they been turned off because of all the penny pinching

ive got my popcorn for the 2024 fiscal year report

 

[Her Dotness]

I said: "They're undoubtedly also aware that people are everything from unhappy to outraged by the recent push to charge more for lots less."

The reply:

They do. not. care.

Ummm, that's what I meant in saying this in reference to the guide suggesting to "keep an open mind."

We must do that because Disney freakin' well isn't keeping one about our concerns.

And undoubtedly, we should keep an open mind as opposed to shutting off the prospect of buying more points, because the guide's job is to...well, you know.

Innerestin' times, as I said--that only Disney is really enjoying, given recent financial reports.

 

[Nabas]

They do. not. care. The parks are full-to-bursting, and according to comments made during the most recent earnings call, the uptake rate of G+/ILL is higher than expected. The per-capita revenue (the amount each guest spends in the park each day, on average) was up 40% compared to the same quarter in 2019. That's just a phenomenal result, and suggests that they were completely correct to further monetize the theme parks.

To be clear, for Disney's first fiscal quarter, Domestic Per Capita Guest Spending increased by 10% from 2018 to 2019, 1% from 2019 to 2020, and 30% from 2020 to 2021.

So yes, it's up by more than 40% (!!!) but it's up from 2018, not 2019.

Sorry in advance if I come across as a know-it-all. That is not my intention. But I did want to clarify for anyone who might be interested in the details.

And yes, that is a phenomenal result.

What's really interesting is that Domestic hotel occupancy is still sitting at only 73%, a historically terrible number for Disney. (In the last quarter before COVID, it was 92%.)

I'm not sure what this means for DVC, other than it might explain why VGF2 is being converted any why we might see more DVC conversions in the future.

 

[Brian Noble]

that's what I meant in saying this in reference to the guide suggesting to "keep an open mind."

My bad! Time to work on my reading comprehension.

yes, it's up by more than 40% (!!!) but it's up from 2018, not 2019.

Also my bad. I either misread the quote or it was mis-transcribed.

 

[Brian Noble]

What's really interesting is that Domestic hotel occupancy is still sitting at only 73%, a historically terrible number for Disney

That could be down to staffing limitations.

 

[Nabas]

That could be down to staffing limitations.

I think staffing is part of it.

In addition, Disney under Chapek seems determined to stop offering hotel discounts. So we've had big price increases and few discounts, encouraging more offsite stays.

And no doubt COVID hindered hotel occupancy in a quarter when Omicron started to spike.

Still, I really think Chapek is directing his staff to push through aggressive price increases while simultaneously pushing to reduce room discounts.

Once we are past staffing and COVID issues, much, much higher hotel prices will continue to impact hotel occupancy.

I suspect that VGF2 is simply the first of several post-COVID DVC conversions.

 

[DisneyMom_3]

I'm not sure what this means for DVC, other than it might explain why VGF2 is being converted any why we might see more DVC conversions in the future.

If they would convert some rooms at Yacht, I would definitely consider adding on there! Of course, I want larger villas than just studios. So probably highly unlikely, but a girl can dream!

 

[nuhusky123]

I think staffing is part of it.

In addition, Disney under Chapek seems determined to stop offering hotel discounts. So we've had big price increases and no discounts, encouraging more offsite stays.

And no doubt COVID hindered hotel occupancy in a quarter when Omicron started to spike.

Still, I really think Chapek is directing his staff to push through aggressive price increases while simultaneously pushing to reduce room discounts.

Once we are past staffing and COVID issues, much, much higher hotel prices will continue to impact occupancy.

I suspect that VGF2 is simply the first of several post-COVID DVC conversions.

There is our next great debate. Which hotel converts rooms to become the next resort studios. And yes this means rooms with no microwave or fridge

I’ll maintain resort studios will be the future expansion opportunity for dvc in the near term

resort studios are nothing but money makers for Disney. They can sell them as dvc and when not used by dvc members sell them for cash rates and it’s an identical setup to a hotel room. It’s literally printing cash for Disney with almost no cost. Executives must be salivating at their capex sheets and can only imagine there is a line a mile long of executives begging to be the next gfv resort studio conversion

my vote - YC is next

 

[SusieQ93]

and the final camp are those doing wdw because they want a vacation and typically go to Europe or some such locatio but for covid reasons don’t want to travel overseas

when these conditions subside will wdw demand remain, will all these non Disney fans continue to go post covid or have they been turned off because of all the penny pinching

That’s a really good point about domestic travel. I’d thought of all the other reasons you listed for why it’s so popular right now, but for some reason this last point hasn’t occurred to me.

it will definitely be interesting to see what happens in a few years and I think we’ll see at least a bit of a leveling in demand. I do think that Disney just continues to grow in popularity. Even before all this it had become “there’s no slow time at Disney World anymore.” My generation grew up during the Disney renaissance when Disney was insanely popular. Disney was of course popular with generations before, I just think it’s super popular with adults in the millennial/gen Z generations and more accepted that it’s not just for kids among us. I tend to find the “Disney is for kids” comments I get when I talk about going on Disney trips always come from the older age groups. I don’t want to offend anyone! I of course know there’s lots of avid Disney fans of all ages, that’s just been my personal experience. My in-laws I know find my Disney fandom (and I’m sure the fact that we got married at Disney World) ridiculous.

As for the nickel and diming, I wonder if newer guests even realize what all was included before? Most of the time when I help coworkers and friends with trips, they have zero clue about any of the benefits/programs (like old fast pass), so maybe new guests won’t really know any better to be dissatisfied with paying for thing like Genie+ and IAS Or about magical express, etc.

 

[Brian Noble]

Disney under Chapek seems determined to stop offering hotel discounts. So we've had big price increases and no discounts, encouraging more offsite stays.

All of his time at the helm has been during the pandemic. I wouldn’t read too much intent into anything just yet…particularly given the fact that there is a discount out right now. It’s a flat rate off so not quite as generous as the last but again…pandemic.

 

[nuhusky123]

That’s a really good point about domestic travel. I’d thought of all the other reasons you listed for why it’s so popular right now, but for some reason this last point hasn’t occurred to me.

it will definitely be interesting to see what happens in a few years and I think we’ll see at least a bit of a leveling in demand. I do think that Disney just continues to grow in popularity. Even before all this it had become “there’s no slow time at Disney World anymore.” My generation grew up during the Disney renaissance when Disney was insanely popular. Disney was of course popular with generations before, I just think it’s super popular with adults in the millennial/gen Z generations and more accepted that it’s not just for kids among us. I tend to find the “Disney is for kids” comments I get when I talk about going on Disney trips always come from the older age groups. I don’t want to offend anyone! I of course know there’s lots of avid Disney fans of all ages, that’s just been my personal experience. My in-laws I know find my Disney fandom (and I’m sure the fact that we got married at Disney World) ridiculous.

As for the nickel and diming, I wonder if newer guests even realize what all was included before? Most of the time when I help coworkers and friends with trips, they have zero clue about any of the benefits/programs (like old fast pass), so maybe new guests won’t really know any better to be dissatisfied with paying for thing like Genie+ and IAS Or about magical express, etc.

I would like go to Asia, I have plans to do all the other Disney parks around the world and I have my hotel loyalty points set aside to afford ritz Carlton luxury for the duration of my travels. But I’m not traveling overseas until there is more certainty I won’t get stuck there

so until then, all my money goes to wdw

 

[Nabas]

All of his time at the helm has been during the pandemic. I wouldn’t read too much intent into anything just yet…particularly given the fact that there is a discount out right now. It’s a flat rate off so not quite as generous as the last but again…pandemic.

Chapek's reputation predates his tenure as Disney CEO.

 

[Her Dotness]

As for the nickel and diming, I wonder if newer guests even realize what all was included before? Most of the time when I help coworkers and friends with trips, they have zero clue about any of the benefits/programs (like old fast pass), so maybe new guests won’t really know any better to be dissatisfied with paying for thing like Genie+ and IAS Or about magical express, etc.

They more than likely haven't a clue what a ripoff the rest of us tend to feel Genie+, etc. are.

That's the market Disney aims for to replace us old grouches who keep moaning, "It just ain't no more what it wuz back in ol' Walt's day. Nosirree."

The newcomers and one-and-dones are likely to be better moneymakers for Disney because everything is cool and exciting, so they're a lot more eager/willing to hand over mega-bucks. Particularly if your trip will likely be the only one you can manage, you'll risk spending more than you planned or perhaps should.

People do things they know aren't smart--and that's how Disney makes money.

 

[RamblinWreck]

I called my guide to ask if she knew anything about pricing.

She told me that if I have to ask, I can’t afford it.

 

[KAT4DISNEY]

They do. not. care. The parks are full-to-bursting, and according to comments made during the most recent earnings call, the uptake rate of G+/ILL is higher than expected. The per-capita revenue (the amount each guest spends in the park each day, on average) was up 40% compared to the same quarter in 2019. That's just a phenomenal result, and suggests that they were completely correct to further monetize the theme parks.

The cautionary part is that there was almost certainly a large pent up demand. People planned and then Disney started pricing things astronomically. People still went because they had the plans, were fed up with staying at home or were surprised at the increases once they showed up. But people planning in the next few years now where the pricing will be better known? That is going to be the gauge of how smart they were.

 

[KAT4DISNEY]

I called my guide to ask if she knew anything about pricing.

She told me that if I have to ask, I can’t afford it.

Time for a new guide????