Tiered Benefits

[kdzgon]

delete

 

[dizfan]

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!

Correct me if I'm wrong, but I believe dues are not a significant profit for Disney. Most of the dues go toward maintaining properties, cleaning services, rehabs, etc.

The profit for Disney is in selling the points for as much as possible.

 

[kdzgon]

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.

I agree - wouldn't that be nice if it were to return <sigh>...never happen, I know...ironically, it was available when you almost NEVER heard the words "discount" and "Disney" in the same sentence.

 

[disneygrandma]

Being from Nebraska, we don't get anything for referrals, either. Until not long ago, we couldn't buy DVC by phone, mail, etc directly from Disney. We could only purchase points if we were on property. Currently, we can only buy points at the new resorts if we're at home. So, if we want to add on at WLV, for instance, we have to be on property to buy direct, or go thru resale. So its sounds like we could really be penalized without any referral credit, and only being able to buy resale.......unless we're on Disney property.

 

[Tara]

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.

Where in the contract does it say that they will "never" do that?

 

[drusba]

Correct me if I'm wrong, but I believe dues are not a significant profit for Disney. Most of the dues go toward maintaining properties, cleaning services, rehabs, etc.

The profit for Disney is in selling the points for as much as possible.

As to dues you are mostly correct. Dues need to be based on actual operating and other costs relating to the resorts and not costs plus any profit. But that does not mean there is no profit built into the dues structure. The key item is the Management Fee, a set percentage (12.5%) of the rest of the annual budget; the percentage cannot change but as overall dues increase, the total amount of the mangement fee increases. That is used partly to pay for MS services but it is likely the total amount exceeds what is needed for that purpose (including because a significant portion of the breakage income also goes to pay for MS services) and thus ends up as a profit to DVD. Perfectly legal. It is formally a "cost," the management fee, but clearly a means for DVD to make money (and doing so assures Disney has the incentive to remain as manager of the resorts and not sell any off to other companies)

 

[Dean]

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.

I think it's a certainty that DVC won't do any FF type programs on their own (unless Disney does it also). I don't think the CC qualifies. Realistically, this is unlikely to be a good thing for many owners though it's likely some will benefit. Given the past activity on this BBS about "minor issues" (valet parking, reallocation), this could be quite entertaining. I predict quite a few posts referring to illegal, can't be done, etc; but in the end, it'll be whatever it is and in the long run we won't have much or any say. We'll also see those post that they will complain, call member satisfaction, etc, like DVD will simply stop if they do. In the end we'll all adapt and some will sell.

 

[toocherie]

I but in the end, it'll be whatever it is and in the long run we won't have much or any say. We'll also see those post that they will complain, call member satisfaction, etc, like DVD will simply stop if they do. In the end we'll all adapt and some will sell.

Dean--never say never. We got the coffee cups back in studios!!!!

 

[Sammie]

I think it's a certainty that DVC won't do any FF type programs on their own (unless Disney does it also). I don't think the CC qualifies. Realistically, this is unlikely to be a good thing for many owners though it's likely some will benefit. Given the past activity on this BBS about "minor issues" (valet parking, reallocation), this could be quite entertaining. I predict quite a few posts referring to illegal, can't be done, etc; but in the end, it'll be whatever it is and in the long run we won't have much or any say. We'll also see those post that they will complain, call member satisfaction, etc, like DVD will simply stop if they do. In the end we'll all adapt and some will sell.

Ok this is the part I agree with but dislike. I can take the truth. I despise that they now make these decisions and hide it under the guise of member feedback etc, etc.

Honestly I would be more accepting if they would just be upfront and honest and say, its about sales, and whether you like it or not your options or adapt or sell.

At least that would be the truth, which actually I can handle.

 

[Dean]

Dean--never say never. We got the coffee cups back in studios!!!!

A big difference in my book. The reality is that DVC could, and I say should, have more in the studio, not less. They will never do a FF type of program on their own, they might do it tied to a general program. But what they will do will likely either be much ado about nothing OR it will be something that a lot of people don't like.

Ok this is the part I agree with but dislike. I can take the truth. I despise that they now make these decisions and hide it under the guise of member feedback etc, etc.

Honestly I would be more accepting if they would just be upfront and honest and say, its about sales, and whether you like it or not your options or adapt or sell.

At least that would be the truth, which actually I can handle.

Unfortunately this is a no win situation. If any such company is brutally honest about such measures it costs them sales and likely a few high level heads that will roll. Think of it like the restaurant where the employees show up for work and it's closed with a note how to get their final paycheck. The possibilities here are endless but to affect sales, it has to be a program that gets people's attention. IMO, an enhanced referral program does not do that by itself, not even close. Maybe it'll end up being a minimal issue once the specifics are announced, we'll see. As I noted, it should be interesting.

 

[Sammie]

A big difference in my book. The reality is that DVC could, and I say should, have more in the studio, not less. They will never do a FF type of program on their own, they might do it tied to a general program. But what they will do will likely either be much ado about nothing OR it will be something that a lot of people don't like.

Unfortunately this is a no win situation. If any such company is brutally honest about such measures it costs them sales and likely a few high level heads that will roll. Think of it like the restaurant where the employees show up for work and it's closed with a note how to get their final paycheck. The possibilities here are endless but to affect sales, it has to be a program that gets people's attention. IMO, an enhanced referral program does not do that by itself, not even close. Maybe it'll end up being a minimal issue once the specifics are announced, we'll see. As I noted, it should be interesting.

Oh I agree it will be interesting,

 

[silmarg]

If they want something with impact, maybe make those with over XXX points get a free (or half price) AP. How about valet parking if you have over a certain number of points? How about an 11 month window for all resorts?

I could see free APs driving sales if someone were with in shouting distance in terms of points.

This will likely not impact me and my paltry 160 points... Just dreaming...

 

[staceymay00]

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.

 

[dizfan]

If they want something with impact, maybe make those with over XXX points get a free (or half price) AP. How about valet parking if you have over a certain number of points? How about an 11 month window for all resorts?

I could see free APs driving sales if someone were with in shouting distance in terms of points.

This will likely not impact me and my paltry 160 points... Just dreaming...

I agree free APs would entice some. However, many would still analyze if it's the free APs are worth enough to pay the extra for points and annual MFs.

If the theme parks division is separate from DVD/DVC, they may expect to be compensated for the APs.
Not positive, but I believe they couldn't increase MFs since it would be excluded from many. They could take it from the management fee portion they collect, but would they want to?
DVD could use the proceeds from selling points to pay for it, but again the question would be whether they want to subsidize the free APs for many years.

11 month window at all resorts would eliminate the 1 month booking advantage mentioned in the POS. While they may be able to do something legally, I don't think Disney wants the publicity that would come from this. It would certainly drive a lot of sales to SSR (same booking window as BCV owners, but much less per point, and lower dues).
Perhaps a 9-10 month non-home resort window, but again it would come with some publicity that Disney may want to avoid.

It will be interesting to see what they come up with.

 

[Tiger926]

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.

Thanks. We've looked into that, and will look into it again.

We actually put away a montly sum in our vacation account for dues, tickets, etc., so by January, we are good to go. We can play with exchange rates this way too.

Thanks, Tiger

 

[disneymath]

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.

Thanks for mentioning this ... it's definitely something to look into.

 

[NancyDVC]

Having been a member for so long, I received those free park passes for the first years of my membership. (Passes for half the number of people staying in your villa-4 people meant 2 passes, 8 people meant 4 passes.) When AK was opened our passes did not include AK.
The Theme Parks division was paid for all those passes. I believe the money came out of DVD not DVC but regardless it was paid. Remember when you look at your dues breakdown it includes things like transportation (aka buses) which is paid to that division.

 

[Dean]

If they want something with impact, maybe make those with over XXX points get a free (or half price) AP. How about valet parking if you have over a certain number of points? How about an 11 month window for all resorts?

I could see free APs driving sales if someone were with in shouting distance in terms of points.

This will likely not impact me and my paltry 160 points... Just dreaming...

Basically they have to have something that affects a certain number of owners and potential owners in a bad way enough to have them pull out the wallets, now or later. offering something that might be nice but doesn't force one to spend money isn't enough. Basically the change must incite fear in one way or another in the targeted group.

 

[Sammie]

Basically the change must incite fear in one way or another in the targeted group

Just practicing.

 

[Deb & Bill]

Just practicing.

Ooh, me too.

But I am real scared.