Why is AKL lagging so far behind in sales?

[jennypenny]

I realize that AKL is big. And I know that BLT has a lot going for it. But they are priced accordingly, especially at the resale level. I'm not sure why AKL is selling so poorly.

 

[mouseaider]

I would say it's mostly because of the location.

Would you rather walk to a park or have to bus to all of them.

We bought in at BWV because of being able to walk to two parks. It's a great location. Just a thought !

 

[tgropp]

I have enjoyed my 2 stays at AKL but I would not make it my home resort due to its location. Not that its bad but I enjoy my VWL contract due to its location on Bay Lake and MK and my BCV contract with its Location. Its just not my cup of tea, but I can see why people love it.

 

[FindingFigment]

1) Having to take busses everywhere or drive.
2) Being heavily themed can be seen as more of a novelty (it's a place I'd want to stay but not all the time)
3) It's big enough that getting in at the 7 month mark is easy enough that buying there isn't important unless you want a value or CL room.
4) Dues are higher than the other Direct sale options: AKV - $5.02; SSR - $4.51 and BLT - $3.90

Those are my guesses.

 

[sweetdana]

Agree location location location. .. ..and MF too..

The bus to MK with standing room only after a long park day is tough. With a cranky DD6 a few bags of goodies and a stroller.. it is worse.

On every trip we only we go to AK 1 day. Even on a 8-12 day trip. The bus doesn't bother me at all to AK it is quick enough, but the bus everywhere else is 15 mins longer than any where.

Having the option of the THV or BLT for 11 month window is an easy pick over AKV (for me). The fact of the MF and the likeliness they will increase over time with caring for the animals adds even more reason to select one of the others.

 

[disneynutz]

Marketing. For reasons that only Disney knows, once BLT was built, DVD put most of it's sales effort towards BLT. Special presentations, lunches, and on site Guides.

Bill

 

[CMOORE185]

I will agree that marketing is a big reason. Also when I went to an event at doorway to dreams about 1 1/2 years ago the sales person pushed BLT over SSR and AKL.

 

[CMOORE185]

I will agree that marketing is a big reason. Also when I went to an event at doorway to dreams about 1 1/2 years ago the sales person pushed BLT over SSR and AKL.

I will add that this suprises me because I believe BLT sells itself easier than the other two for reasons stated above. Maybe they want the monorail resort sold so they can start on the GF DVC.

 

[crisi]

I will add that this suprises me because I believe BLT sells itself easier than the other two for reasons stated above. Maybe they want the monorail resort sold so they can start on the GF DVC.

That might have to do with the way the accounting works. It may be that the money used to build out SSR or build VAKL was cheaper money - they need to get rid of the BLT note first. Or it may be due to internal politics - the land BLT sits on could have been used for a ton of things - someone within DVC won a battle to get it used for DVC by saying "this thing will make us a mint" - now they've got to make that happen. They may feel that with BLT being so visible, they need it to "sell out quickly even in a recession" to make DVC continue to look attractive - they can "hide" the non-sold out state of SSR (they DID build more rooms) or VAKL easier since they aren't in anyone's face - but EVERYONE going to Disney sees BLT and the guides can point to it and say "even in a down economy it sold out in X years." (No need to mention we've been selling SSR for eight years now).

AND, because SSR and VAKL have been selling longer, there are more affordable resale options out there for those resorts. While everyone isn't aware of resale options, some people are, and lots of affordable resale options are going to make DVD held points sit longer.

 

[cvjw]

For my family, I would not buy any points at AKV because of the maintenance fees. We love Kidani Village, it is in our top 3 favorite DVC resorts, but the maintenance fees scare me. Having to pay to take care of the savannah, and all of the animals that live there could get very expensive. I love to stay there, and so far have been able to get our desired reservations at 7 months or less four different times.

 

[mdsd8700]

I think that location and the MFs are the main reason. We have stayed at the hotel prior to owning DVC and loved it and would like to stay again. However as another poster said it didn't appeal as a home resort.

 

[Ramsfan28]

I would say it's mostly because of the location.

Would you rather walk to a park or have to bus to all of them.

We bought in at BWV because of being able to walk to two parks. It's a great location. Just a thought !

+1

That is the main reason I bought at BLT - the location!

 

[drusba]

I own at AKV and like staying and owning there so the following comments are not from an outsider looking in. I agree the marketing has had a factor along with the fact that because BLT is around, it becomes harder to sell an outlier resort. However, there are other issues.

AKL came on the scene a number of years ago with big fanfare and Disney even built curiousity demand by making it seem so special that you either had to stay there or have a restaurant reservation to even go to the hotel. That all worked for a while but as time passed, AKL became one of Disney's more problematic resorts in renting. Did not do too bad but was not doing anywhere near as expected either. They dropped having to have a reservation there just to get in at all and hardly anyone even noticed.

Its main problem was then and is now the preceived location disadvantage. The thing is that is more perception than reality. The resort is designed to make you feel like you are far away from everything else. Though you are a distance from three parks, the bus service is good and the trips are not long and you are only an 8 minute bus ride to AK. I also own at BWV and its bus service is abysmal, has always been abysmal, has never improved, and probably will always be abysmal, and it often takes much longer to get to and from MK than it does for AKV. But BWV has no occupancy problems becuase it is right next to two parks.

Even SSR, perhaps because it is on the east side near DD and there are lots things in the area, does not have the degree of perceived location problem as AKV. Another issue is restaurants. I like all the restaurants at and they are in my best at WDW list (except the counter service restaurant which is decent counter service). However, there are many who cannot stomach at all any of the Northern African type dishes that are served in the restaurants. They also serve more regular fare but for many, those restaurants are ones they might try once but never again. Net result: to be a AKV owner, you have to (a) get over the perceived location issue, (b) like the sense created of resort seclusion, and (c) like the food served at the restaurants. That is not a combination you get from most potential buyers.

 

[dizfan]

Marketing. For reasons that only Disney knows, once BLT was built, DVD put most of it's sales effort towards BLT. Special presentations, lunches, and on site Guides.

Bill

Marketing has a lot to do with it. Sales people tend to focus on two factors.
1) What's new
2) What's the promotion for.

When Kidani opened in May 2009, AKV sales had already been going on since Feb 2007.
Along comes opening 3 months later, becoming the new kid on the block.

On top of that, the location makes it so every person who rides the monorail from MK to TTS, Poly, GF goes past BLT. Every person who rides the bus to/from MK can see BLT.

It's scary to think DVD will have opened Kidani, BLT, THV, VGC and Aulani in a span of less than 30 months. All during a bad economy. (By the time Aulani is completed that's somewhere around 25 million new points added to the sales system).

 

[LIFERBABE]

It's the drums!

Love AKV! But I agree, opening Jambo and then Kidani almost 2 years later, took the steam out of things. I believe this was a mistake for DVD.
When BLT opened with similar floor plans as Kidani, with lower dues (albeit, higher points) and better location, not to mention, AKV always shared the spotlight with THV and VGC.

BLT opened all at once and sales and member meets were held in TOWL. I would say definitely location, but overall, I prefer AKV over BLT.

 

[ChiSoxKeith]

It's scary to think DVD will have opened Kidani, BLT, THV, VGC and Aulani in a span of less than 30 months. All during a bad economy. (By the time Aulani is completed that's somewhere around 25 million new points added to the sales system).

But they've already sold out VGC and BLT should be sold out this year (they are now in the home stretch).

Once BLT sells out the sales force will marshall behind Aulani, AKV, and THV.

Even if they announced a new DVC resort today (which nobody expects them to do) it would take years for that property to come online and the sales force will be concentrating on closing out AKV and THV in the interim.

 

[dizfan]

But they've already sold out VGC and BLT should be sold out this year (they are now in the home stretch).

Once BLT sells out the sales force will marshall behind Aulani, AKV, and THV.

I was simply pointing out that DVD introduced Kidani (~7.25 million), BLT (~5.62 million), THV (~0.8 million?), VGC (~1 million?), Aulani (~11.4 million) in 3 years time

DVD sells about 3 million points a year. Adding 26 million in 3 years, caused a bit of a marketing problem for DVD.

Even if they announced a new DVC resort today (which nobody expects them to do) it would take years for that property to come online and the sales force will be concentrating on closing out AKV and THV in the interim.

Assuming it takes 2.5-3 years to build, I do agree that starting a new WDW DVD would be wise of them. Provided they keep it quiet and it doesn't result in people opting to wait to purchase as opposed to buying in 2011/2012. For example, WDW has arguable two prime locations left (GF and Poly). If people saw construction going on in either area today, you can bet we would hear rumors that it's DVC. Maybe it would be, maybe it would not be. However, a portion of people would decide not to buy any DVC property, instead hoping for GF or Poly DVC in 2013/2014.

 

[tjkraz]

I was simply pointing out that DVD introduced Kidani (~7.25 million), BLT (~5.62 million), THV (~0.8 million?), VGC (~1 million?), Aulani (~11.4 million) in 3 years time

DVD sells about 3 million points a year. Adding 26 million in 3 years, caused a bit of a marketing problem for DVD.

That's a bit of an oversimplification, though. DVC started selling AKV as far back as February 2007. And obviously Aulani is designed to be in sales for many years to come.

They didn't expect to sell 26 million points in 3 years.

There was a period in 2008/2009 where the only points they had to offer (other than ROFR) were for incomplete resorts. That's not a good position to be in when selling a $20K product. Given construction lead times, they THOUGHT the units in the pipeline at AKV, SSR, BLT and VGC would simply meet demand in the '07-'11 timeframe. But the economy dealt them a setback.

Back to BLT, I also believe marketing is the single most influential factor. It's really the only WDW resort getting significant lip service at sales presentation. Some buyers have even reported that a Guide told them BLT was the only thing available despite their expressing an interest in AKV.

DVC wants to get BLT sold out as quickly as possible and as profitably as possible before the resale market kicks into high gear. Bottom line is you can ask $130 per point for BLT. You cannot ask $130 per point for AKV.

Once BLT is gone they'll have no choice but to double-back and push AKV and SSR. Sales rates will drive prices. Better to get those $130-140 prices for BLT now before resales have any chance to depress the market.

 

[MrShiny]

Yes, it is marketing - and once enough is sold to cover the initial investment, I think it becomes much less of a factor. While Kidani is big, the relative low cost of the first phase (just redoing existing rooms in Jambo) probably generated enough profit that Kidani didn't have to be a huge hit. So even though not sold out, I bet AKV has paid for itself.

VGC did dissappoint, as they honestly thought it would sell out in the first offereing, where only people who bought through the California channel of DVC could buy. That could have happened if the economy was booming, but still it was a bit of the same mind set that told them DCA would be a smash hit.

BLT is great based on the location, so should sell out. THV I think is really just an effort to sell through SSR. Great execution though, but the problem is buying at SSR won't in anyway guarantee you a THV.

Aulani will be the focus or a while. It will be interesting how much is sold in the Asian market - that's a whole new segment for DVC.

I wonder if the DC project will break ground. And of course there was the golf resort DVC announced in 2001 that never happened (but I think SSR filled that perceived gap).

I would expect them to maybe look at another WDW DVC only when Aulani is within a year or two of selling out.

Then of course there comes the time when deeds are up and things can start selling again - it'll be here before you know it! DVC will be 20 in October.

 

[laura-k]

For example, WDW has arguable two prime locations left (GF and Poly). If people saw construction going on in either area today, you can bet we would hear rumors that it's DVC. Maybe it would be, maybe it would not be. However, a portion of people would decide not to buy any DVC property, instead hoping for GF or Poly DVC in 2013/2014.

This is sort of what happened with us -I had looked into DVC years ago I think the buy in for point was like $14,800.00 ,It was a okay price at the time but I just wasn't sure then life happened and time went on and I watched as the other villas opened and the prices went up but still I told myself I would think about it and would just forget about it, even though my vacation expenses where escalating over the years and then it must have been 2007 I saw the construction I knew I had to have it regardless of the value of buying into one of the others -I think it started selling in 2008 I was going to wait for my early spring of 2009 trip to buy but I just couldn't wait finally in Oct. 2008 I called Disney on my own (I didn't have a guide) and said I wanted it (fortunately I had cash) so the whole transaction so seamed painless-
I guess I was thinking about the the whole thing and might have purchased at AKV but when I saw BLT I knew that was the place for me and would gladly wait -The only thing that would have made my choice tuff would have been a POlY DVC -