Tiered Benefits

[Tiger926]

This whole idea does not sit well with me at all...

If you want to reward your most loyal guests with various perks that might save them money, or, encourage them to buy recreation packages, or eat at different restaurants, than that is a great idea. Give discounts on tickets or restaurants to all DVC members as a way of saying thanks for the huge amount of money they have and will spend over a lifetime of DVC vacations. But, once you start classifying and ranking members based on points, you have then set up a system that seeks to pit members against one another.

This type of system has been outlawed in various countries around the world for a reason. It is not inclusive at all...

Knowing Disney though, I see it as a way not to reward members, but as a way to encourage or incentify members to spend more on points and memberships. If it were truly to reward members, then all members would qualify for all perks, irregardless of point totals, and a tiered system would not even be proposed.

What a bad idea, but, I am going to reserve judgment until the actual program is announced. I'm not going to get my knickers in a twist, as none of us really know what the heck DVC is proposing at this point.

Tiger

 

[DVCPAT]

I'm surpirsed that no one has even brought up the possibility of "instant fastpasses" or something liked that linked to the tier of points one has. We allready know that Disney has patents for a system that would link fastpasses to the type of resort, ie: value, moderate, deluxe, etc, so why not link the fastpass system with the number of points one has. The more points you own, the more "instant fastpasses" one is entitled to each trip. Just a thought.

Make sure you read the fine print before considering an add-on. Disney can discontinue any perk at anytime while your dues will continue through the life of your contract. Disney is probably seeing a trend of multiple contract owners selling because of cutbacks. I’m considering selling and keeping one small contract for whatever perks remain.

I think our country is going to make some economic adjustments in the near future that will have a negative impact on Disney’s bottom line. The positive side will be greater discounts for non DVC owners.

 

[disneymath]

Don't forget us Canadians are currently precluded from getting anything for referrals. I assume we would still get the shaft if they go to a tiered loyalty systems that is based on points and referrals.

I realized that too - and agree with you that it likely won't change under a tiered loyalty system - I chose not to mention it in my original post b/c it just wasn't funny!!!

(Then again, could you imagine the headlines if the Canadian legislation barring referral benefits changed b/c it was Disney ... now that would be hilarious!)

 

[Dean]

It will be interesting to see what they end up offering. I would hate to see them offer a booking advantage to people with larger point amounts.

I could see them offering minimal benefits to those who have less than the intial buy in of about 150 points. I have to say that it was a bit of a pet peeve of mine that someone with 50 points can take advantage of that AP discount (get APs for yourself, your spouse and a couple of kids, and you will quickly safe enough to pay your annual dues).

It will be interesting to see everyone's reaction to the rollout of this program.

IF they do this it has to be substantial enough to get a certain number of people to ante up for retail more than do now and likely, to get current members to open up their wallets as well, not all but enough to matter. A few discounts and perks will not do this. Ultimately you MUST create fear in a certain subset of members and/or potential members to make such programs successful.

This whole idea does not sit well with me at all...

If you want to reward your most loyal guests with various perks that might save them money, or, encourage them to buy recreation packages, or eat at different restaurants, than that is a great idea. Give discounts on tickets or restaurants to all DVC members as a way of saying thanks for the huge amount of money they have and will spend over a lifetime of DVC vacations. But, once you start classifying and ranking members based on points, you have then set up a system that seeks to pit members against one another.

This type of system has been outlawed in various countries around the world for a reason. It is not inclusive at all...

Knowing Disney though, I see it as a way not to reward members, but as a way to encourage or incentify members to spend more on points and memberships. If it were truly to reward members, then all members would qualify for all perks, irregardless of point totals, and a tiered system would not even be proposed.

What a bad idea, but, I am going to reserve judgment until the actual program is announced. I'm not going to get my knickers in a twist, as none of us really know what the heck DVC is proposing at this point.

Tiger

The reason to do this would not be to say than you but to get people to spend more money with DVD than currently do,plain and simple.

 

[Dean]

Your post made me laugh ... and then I thought ... for those of us from Canada with this range of points, nothing changes! (We HAVE to pay lump sum ... they don't just ASK us too! )

Don't forget us Canadians are currently precluded from getting anything for referrals. I assume we would still get the shaft if they go to a tiered loyalty systems that is based on points and referrals.

Depending on the set up such a program could help those currently precluded from referral rewards by allowing them to get credit where they currently do not now.

 

[manning]

Do as we do now. Use DVC as lodging and spend our money else where.

 

[Tiger926]

IF they do this it has to be substantial enough to get a certain number of people to ante up for retail more than do now and likely, to get current members to open up their wallets as well, not all but enough to matter. A few discounts and perks will not do this. Ultimately you MUST create fear in a certain subset of members and/or potential members to make such programs successful.

The reason to do this would not be to say than you but to get people to spend more money with DVD than currently do,plain and simple.

I'm sorry, Dean, I'm not sure what you mean? If you are saying that it's Disney's way of trying to get people to buy more points, then I agree, as I mentioned it in my response. I really think that is Disney's purpose, and might work for some, but for the majority, I can't see it working. Extra points, means extras dues, and so the rewards in a tiered system would have to be pretty substantial to make up for that.

Tiger

 

[Dean]

I'm sorry, Dean, I'm not sure what you mean? If you are saying that it's Disney's way of trying to get people to buy more points, then I agree, as I mentioned it in my response. I really think that is Disney's purpose, and might work for some, but for the majority, I can't see it working. Extra points, means extras dues, and so the rewards in a tiered system would have to be pretty substantial to make up for that.

Tiger

Other systems have successfully put the squeeze on both current members to ante up AND new buyers to be "forced" to go retail. There really is ONLY one reason to make such changes, for the potential for more sales than the status quo. When sales were easy it didn't matter, now that sales are tough, everyone is looking to cut expenses AND prop up sales. There is one more side of the equation that hasn't gotten much press though I've talked about it some, that is sales technique. We've seen some hints of higher pressures but I predict we haven't seen anything yet.

 

[mic_KY_mouses]

The hilarity of this thread has kept me from getting too uptight about the upcoming changes, but I do hope they don't cause a huge gap between the "have" and "have nots". I think the small contract holders are just as important as the big ones and I don't want a hug, kiss, or a wink from Jim. I know accommodations are what we own, but I don't like the differentiation programs like this cause....we shall see. My 210 points is feeling smaller by the moment.

 

[Kuzco]

I'll reserve judgment until the program rolls out. I don't think this is necessarily a bad thing if the "perks" don't disadvantage smaller point holders in booking priority and non-home resort use as has been previously discussed in other threads. I wouldn't have a problem with better discounts or earlier check-ins, personally. Guess we will have to wait and see.

 

[DenLo]

Has anybody thought Disney is considering a tiered benefit program because it's becoming the norm in the travel industry? Many travelers have come to expect loyalty programs. I'm just surprised that Disney doesn't have a tiered benefit program for their cash guests.

 

[Tara]

Has anybody thought Disney is considering a tiered benefit program because it's becoming the norm in the travel industry? Many travelers have come to expect loyalty programs. I'm just surprised that Disney doesn't have a tiered benefit program for their cash guests.

This exactly. It's LONG been a complaint on these boards and elsewhere that there was no loyalty program at all.

 

[Deb & Bill]

This exactly. It's LONG been a complaint on these boards and elsewhere that there was no loyalty program at all.

But we're ALL loyal. And we ALL want these benefits. Some of us have been loyal longer than others.

Kind of like the Magic Kingdom Card Disney used to have in the past. Disney VISA doesn't come close to MKC.

 

[Tara]

But we're ALL loyal. And we ALL want these benefits. Some of us have been loyal longer than others.

Kind of like the Magic Kingdom Card Disney used to have in the past. Disney VISA doesn't come close to MKC.

And a loyalty program isn't going to make everyone happy. In general, a loyalty program is a double-whammy deal - it makes people feel better about spending on a brand, and it usually gets them to spend more, or at least focus their spending on that brand only (staying at Marriotts more often versus other chains, for example). A cash guest loyalty program would be designed to encourage more visits because that's how to get people to spend more cash. A DVC loyalty program ought to be designed to get people to buy more points, since that's how DVC brings in cash. Make no mistake that the primary goal is to bring in more cash, and often the way to get there is by giving the least benefits that will result in people spending more cash.

Sure, we all want benefits, but we all aren't equally deserving of them. I'd love to have the same benefits as United 1K or Sky Miles Diamond level members. But I don't fly enough to qualify. Sure, I'm loyal to those airlines, but I'm not AS LOYAL as others. Why should I get what they get? Why shouldn't they get things that I don't?

I think this is yet another example of how people let their emotional connection to DVC interfere with how they think about decisions like a loyalty program. (especially a loyalty program that no one knows the details about yet_

 

[Tiger926]

Other systems have successfully put the squeeze on both current members to ante up AND new buyers to be "forced" to go retail. There really is ONLY one reason to make such changes, for the potential for more sales than the status quo. When sales were easy it didn't matter, now that sales are tough, everyone is looking to cut expenses AND prop up sales. There is one more side of the equation that hasn't gotten much press though I've talked about it some, that is sales technique. We've seen some hints of higher pressures but I predict we haven't seen anything yet.

Got it, and I totally agree! Tiger

 

[lisaviolet]

(We HAVE to pay lump sum ... they don't just ASK us too! )

Exaclty. DVC will gladly take our initial buy-in and additional add-ons, but they make us pay for our dues in one lump sum.

I haven't read the entire thread to see if this was talked about but you don't have to pay in one lump sum if you don't want to. I haven't been doing that for years. There are options.

RBC has an American branch - RBC Centura (they might have changed the exact name). It's not their US funds account. It's a US based account. I only state the dfference because some RBC employees get confused. And it comes with a VISA pocket check card which you can load whenever you want. There is a small fee for having under $700 at all times but other than that it's been a godsend for DVC.

It's changed the way I feel about the fees. I hardly notice them monthly. Lump sum in January - well it was noticed.

 

[photobob]

Could this in any way related to the discussions about buying resale vs. direct from disney? Instead of perks being taken away from resale buyers, perks being added to those who purchased direct.

 

[UConnJack]

A tiered perk/rewards program would be fine, as long at is didn't substantially change how owners could use their membership. IMO, booking windows should be sacred and something that should be the same for all members. I understand DVC can change booking windows at any time, which is fine and in the POS, but other that home resort preferences, I think any changes that gave people preferential booking windows would be infinitely unfair and completely at odds with how DVC was marketed to us. If there is any one move that could backfire on DVC, it would be this. I know that I, as well as most on this board, would go from proponents of DVC, to actively marketing against it.

 

[Sammie]

And a loyalty program isn't going to make everyone happy. In general, a loyalty program is a double-whammy deal - it makes people feel better about spending on a brand, and it usually gets them to spend more, or at least focus their spending on that brand only (staying at Marriotts more often versus other chains, for example). A cash guest loyalty program would be designed to encourage more visits because that's how to get people to spend more cash. A DVC loyalty program ought to be designed to get people to buy more points, since that's how DVC brings in cash. Make no mistake that the primary goal is to bring in more cash, and often the way to get there is by giving the least benefits that will result in people spending more cash.

Sure, we all want benefits, but we all aren't equally deserving of them. I'd love to have the same benefits as United 1K or Sky Miles Diamond level members. But I don't fly enough to qualify. Sure, I'm loyal to those airlines, but I'm not AS LOYAL as others. Why should I get what they get? Why shouldn't they get things that I don't?

I think this is yet another example of how people let their emotional connection to DVC interfere with how they think about decisions like a loyalty program. (especially a loyalty program that no one knows the details about yet_

I understand a loyality program, I understand that it is an industry standard and yes I get emotional when I am told emphatically that DVC is different from other timeshares and would "never" do anything that would not be available to every member.

If being lied to, makes me emotional, I will stick with emotional over the alternative.

 

[DVC SSR Owner]

DVC would be smart to offer a buy 3 get 1 free on points. They could sell the points quicker, sell more points, and lock more people into more dues!