Value DVC Timeshares Coming?

[CarolMN]

There has been talk about the possibility of DVC Value Resorts being added. Rumor has it that DVC has requested an allocation of the new Animation rooms for a DVC value offering. The point requirements would be low, as would the MFs. Apparently there is substantial demand within existing members, and it will open up another entire market focus. It seems there are a number of DVC members that would book Sun-Thurs nights, move to value resorts for Fri & Sat nights and then back to DVC rooms on Sun for more nights. Quite a number of "value-price oriented" DVC'ers were up in arms over the point re-allocations from weekends to weekdays and called to voice their extreme disapproval.

Any thoughts? With the new replacement of Jim Lewis, who is sales oriented, maybe this possibility is not so far fetched?

Everyone seems to be jumping to the conclusion that this means DVC will sell points in the new resort. It could also mean that the Art of Animation rooms would be added to the Disney collection. If Disney really has gotten a lot of requests from members to stay at a value resort on weekends, this would be an additional carrot for buying direct.

I agree with Finally DVC - the most likely explanation for the request is to add Animation Family Suites to the Disney Collection.

I don't see Disney building a value DVC when they can make more money building the Deluxe versions.

 

[hakepb]

Just looking at the numbers, the 2012 rack rates for Art of Animation family suites are not that much lower (I guess I expected half price) than Deluxe rooms (seems to be an average of $100/night less than AKL Savannah view)

Basically a DVC "value suite" would have to be at a similiar or lower point cost than an OKW studio to be a decent buy, and I'm not sure a room with 2 bathrooms would have any lower dues than an OKW studio..

And at least with the Music ones, Disney discounts them less often (per Mousesavers) and the "suite" usually costs more than 2 adjoining Value rooms. So I'm thinking Disney is really enjoying the profit of those cash suites, and does not need DVC right now.

 

[Dean]

I'm looking at this from a different angle, from a sales perspective. There is a following for the value resorts. Why not market a DVC to these people? Would this be the start of a tiered system?

I don't know if it'll happen or not but I have my doubts. One issue is that they would essentially be competing with their more expensive product. I think it'd be difficult to structure such a situation that was a direct part of DVC but they could structure a separate but linked product. Marriott tried this a number of years ago with the Horizon's project I believe you are familiar with. For those that don't know, it was a step down product that was somewhat cheaper aimed at younger families. What they found was that people that were going to buy a timeshare, would buy at the higher price more easily than the lower price because they still perceived a better overall value. Now I believe Marriott made a number of mistakes that contributed to the issue, not the least of which was they overpriced it. I realize Disney is a somewhat different scenario but not as much as many would think.

Everyone seems to be jumping to the conclusion that this means DVC will sell points in the new resort. It could also mean that the Art of Animation rooms would be added to the Disney collection. If Disney really has gotten a lot of requests from members to stay at a value resort on weekends, this would be an additional carrot for buying direct.

IMO, there are MANY ways this could be structured but most reasonable ones would make a value not directly part of the current DVC system. For those that are interested in such an issue, they should go back and search out the old and lengthy threads on this subject. One major point is that I think most people will underestimate the points requirements for such a venture and thus overestimate the "savings" involved.

 

[Brian Noble]

Lots of counters against your statements.

You are convinced, but you appear to be nearly the only one.

If you are right, feel free to come back and tell us all you told us so. I will not be holding my breath.

 

[joeandmel]

I can't see how they can offer a dvc at a value resort. First would it be intergrated with the current DVC program? Second how could they charge $140 a point for a lesser place to stay, it wouldn't be cost effective to do this because you as the consumer is losing value on your money. Now if they offer it at a lower rate say $80 a point the person who just bought into BLT is losing money on there per point spending.

If they make it a DVC2 type of program then that might work, but they shouldn't be putting the two programs together.

 

[DHar]

they might change the rules so that you can only stay at your home resort....being able to book and stay at another resort is considered a "perk", and like any other "perk", can be done away with at any time........

 

[tjkraz]

they might change the rules so that you can only stay at your home resort....being able to book and stay at another resort is considered a "perk", and like any other "perk", can be done away with at any time........

That's never going to happen. If Disney did that, they would lose the ability to market the entire program of resorts.

Disney's success in marketing DVC is not simply based upon recurring stays in one location--it's about selling points at Bay Lake Tower (to pick one) which can also be used at BoardWalk AND Animal Kingdom Villas AND Aulani AND Hilton Head AND Vero AND Grand Californian.

Yes program rules do leave the door open but its likelihood is so remote that it's not even worthy of discussion. Disney has far, FAR more to lose than it would ever gain by restricting owners to their Home resort.

 

[lilpooh108]

Everyone seems to be jumping to the conclusion that this means DVC will sell points in the new resort. It could also mean that the Art of Animation rooms would be added to the Disney collection. If Disney really has gotten a lot of requests from members to stay at a value resort on weekends, this would be an additional carrot for buying direct.

I agree with your thoughts! Paradise Pier at DLR is definitely not within the same caliber as GCV, and is a part of the Disney Collection. I can see DVC allowing trades into Art of Animation in order to satisfy member needs.

I don't see DVC building value DVC collections in order to sell points at a cheaper price point. It cheapens the overall product and the profit margin will be small. They've been building up price increases to BLT to ready the public for $140+/PP for some time now. I don't see them backtracking on these prices simply to tap into a "new" market which may cannibalize their rental market for Value Resorts. Values are selling well enough without DVC.

Plus, $99 for SSR is a different situation. SSR is not priced at $99 in order to tap into a "new" value market. SSR has been on their books for quite some time now. I'm sure there developer costs, third party profit sharing agreements and carrying costs that we do not have details on. The price is lower in order to close this project out, and to get this project off their books.

 

[twinklebug]

I don't know if it'll happen or not but I have my doubts. One issue is that they would essentially be competing with their more expensive product. I think it'd be difficult to structure such a situation that was a direct part of DVC but they could structure a separate but linked product. Marriott tried this a number of years ago with the Horizon's project I believe you are familiar with. For those that don't know, it was a step down product that was somewhat cheaper aimed at younger families. What they found was that people that were going to buy a timeshare, would buy at the higher price more easily than the lower price because they still perceived a better overall value. Now I believe Marriott made a number of mistakes that contributed to the issue, not the least of which was they overpriced it. I realize Disney is a somewhat different scenario but not as much as many would think.

The value resort market is not a timeshare purchasing market. For the most part, the value-going folk are still getting their feet under them and although they love Disney just as much as the rest of us, are looking for the fullest Disney experience in the most inexpensive manner they can find. At this stage in their lives they typically do not plan out trips years in advance but are focused on the daily dollar.

Before anyone points out their aunt/uncle as potential buyers: Yes, there will be a few exceptions. There always are. But not enough to warrant developing a value timeshare.

 

[kristenrice]

I agree with your thoughts! Paradise Pier at DLR is definitely not within the same caliber as GCV, and is a part of the Disney Collection. I can see DVC allowing trades into Art of Animation in order to satisfy member needs.

I tend to agree with this. I think that if the AoA resort has a "DVC" component, it will be via the Disney Collection. If that is the case, I would assume that the point requirements for the suites would be more than a moderate but less than a deluxe. As with most of the resorts in the Disney Collection, it would not be worth it to me to spend that many points (and the $95 fee) on "lesser" accomodations, but it is nice to have the option.

 

[lilpooh108]

I tend to agree with this. I think that if the AoA resort has a "DVC" component, it will be via the Disney Collection. If that is the case, I would assume that the point requirements for the suites would be more than a moderate but less than a deluxe. As with most of the resorts in the Disney Collection, it would not be worth it to me to spend that many points (and the $95 fee) on "lesser" accomodations, but it is nice to have the option.

You know what's interesting is that for DLR resorts, DVC does not charge the $95 fee. I've always wondered why they charge it for members to trade into the WDW resort hotels. I agree with you that it's not worth it to trade into lesser accomodations with a fee. Perhaps some would use it if it means more availability during busier times (like F&W or Christmas/Easter).

 

[get_us_to_WDW]

Interesting!

 

[sschu717]

There has been talk about the possibility of DVC Value Resorts being added. Rumor has it that DVC has requested an allocation of the new Animation rooms for a DVC value offering. The point requirements would be low, as would the MFs. Apparently there is substantial demand within existing members, and it will open up another entire market focus. It seems there are a number of DVC members that would book Sun-Thurs nights, move to value resorts for Fri & Sat nights and then back to DVC rooms on Sun for more nights. Quite a number of "value-price oriented" DVC'ers were up in arms over the point re-allocations from weekends to weekdays and called to voice their extreme disapproval.

Any thoughts? With the new replacement of Jim Lewis, who is sales oriented, maybe this possibility is not so far fetched?

With all the murmuring of tiered memberships/perks, this would make sense.

 

[Dean]

The value resort market is not a timeshare purchasing market. For the most part, the value-going folk are still getting their feet under them and although they love Disney just as much as the rest of us, are looking for the fullest Disney experience in the most inexpensive manner they can find. At this stage in their lives they typically do not plan out trips years in advance but are focused on the daily dollar.

Before anyone points out their aunt/uncle as potential buyers: Yes, there will be a few exceptions. There always are. But not enough to warrant developing a value timeshare.

I tend to agree with you overall but there are lots of caveats. I do think it's possible for them to generate a marketable product but I also think the biggest 2 reasons not to are that it would be in direct competition with their more profitable product and related to that, it'd be hard to make enough profit at that level OR it would be more overpriced than the current DVC system is.

they might change the rules so that you can only stay at your home resort....being able to book and stay at another resort is considered a "perk", and like any other "perk", can be done away with at any time........

That's not likely but if a value DVC (or similar system) were to come about, it would be possible for them to play with the options such as in a tiered membership situation.

 

[majortom1981]

I think it would work .There is already VALUE Rooms at animal kingdom lodge. If the grand floridian dvc turns out to be a kind of deluxe section then adding more value rooms would make sense also.

Keep in mind that the value rooms at jambo house fill up quick.

 

[edk35]

This just has problems written all over it...... BIG TIME......... AT LEAST TO ME. Not to mention there are people that talk trash about DVC on these boards... gosh forbid...they add a "lower class" division of DVC. This is going to be a wild ride...if it is true.

 

[bobbiwoz]

I think it would work .There is already VALUE Rooms at animal kingdom lodge. If the grand floridian dvc turns out to be a kind of deluxe section then adding more value rooms would make sense also.

Keep in mind that the value rooms at jambo house fill up quick.

The value rooms in Jambo house are in a top notch resort. I'm getting a smaller room and that's the value. I don't like the idea of a value DVC and don't think it will happen.

Bobbi

 

[DVCconvert]

Boy!!!

If there IS ever a dvc value resort....Deb & Bill will be ALL OVER this!!!
Buying points, holding parties and serving Kool Aid to the masses!!!

Kewl!!!!

 

[edk35]

Lots of counters against your statements. We don't really know what Disney wants. We know they want people making MF's towards resorts. Why would Value resorts be excluded from that thinking? MF's offset Disney's costs.

We don't know what price Disney would sell at. Why $75? The family suites are direct competition with the newer deluxe resorts accomodations wise. Some people are tired of waiting and watching for promos. Pop and now maybe the newer Arts of Animation will be enough of a draw that people simply don't want to pay the increased deluxe prices.

It takes time for Disney to feel the effects of discontentment, so 3 years is not a long time for them to be responding to it.

The loans requirements have gotten a lot stricter. The more you want to borrow, the squeaky cleaner you have to be. So lower buy in prices bode well for the not so credit worthy.

Really, I could go on and on...(how have you been Tim? )

I don't think the newer family suites can compare to the newer deluxe accomodations. Well at least not the one at ASMU. I don't know what the new resort will be like. We stayed in one of the ASMU family suites on Thanksgiving night when we could not get our 8th night at SSR that Thanksgiving trip. We moved over there for that last night. It was the first time we had stayed at a value and after having a 2 br. at SSR it was ....well let me say....not our cup of tea at all. I can see where these value suites are great accomodations for some families and for those that like to stay at the value resorts and need/want more space..... however I do not see them comparing to moderate or deluxe accomodations in the least.

 

[Brian Noble]

Well at least not the one at ASMU.

The AoA suites look like a solid improvement over the ones at ASMu, at least.

http://disneyparks.disney.go.com/bl...f-animation-resort/?CMP=SOC-WDWFY11Q4FBDM0021