Just for fun, what could Disney do to incentivize direct purchases?

[VdoesDisney]

Disney has repeatedly adjusted direct prices to keep them in the neighborhood of 50% above resale.

The thing is they don’t care about selling the sold out resorts. It’s a small income stream with worse margins than you may think.

They want to sell Riviera and Aulani and meet whatever direct demand there is for everything else, but they’re not trying to generate that demand - that’s why you can’t even get on the VGC wait list.

Riviera seems downright bargain priced when compared to VGF, BCV and Poly, and that’s on purpose.

So you’re saying they basically don’t want to compete with themselves? Meaning they want to steer direct buyers to RIV and, for that reason, it doesn’t make sense for them to make anything else look appealing or competitive?

 

[Sandisw]

These all seem relatively easy and low cost for Disney and I agree they would be significant incentives, heavily discounted friends and family tickets during low seasons would likely make a huge difference.
I would love a guaranteed discount for extension or purchase of my resort in 2042 but I honestly don’t think they’re thinking that far ahead, keep in mind most executives have about a 10 year tenure, they are themselves not incentivized to think about 2042

Just remember, anything outside of the condo itself has to be negotiated with another division. It means they have to take the hit in loss in revenue.

So, it’s not as easy as it might seem because DVD doesn’t control. That is the reason why we don’t have special privileges to get an AP right now because DPEP division makes those decisions.

Not saying membership perks can’t include that for owners...just that anything that involves a third party can not be guaranteed without their approval.

 

[Sandisw]

So you’re saying they basically don’t want to compete with themselves? Meaning they want to steer direct buyers to RIV and, for that reason, it doesn’t make sense for them to make anything else look appealing or competitive?

Correct. The goal is always resorts in active sales. I think the discount on sold out resorts right now is a strategy that is only there because of capped capacity in the parks and no ability to do the presentations at the sales center like preCocid.

If we had not had the pandemic,I do not believe you’d see this. IMO It’s a temporary sales strategy.especially since Reflections would still be on the docket for completion.

 

[CastAStone]

So you’re saying they basically don’t want to compete with themselves? Meaning they want to steer direct buyers to RIV and, for that reason, it doesn’t make sense for them to make anything else look appealing or competitive?

Correct. The goal is always resorts in active sales. I think the discount on sold out resorts right now is a strategy that is only there because of capped capacity in the parks and no ability to do the presentations at the sales center like preCocid.

If we had not had the pandemic,I do not believe you’d see this. IMO It’s a temporary sales strategy.especially since Reflections would still be on the docket for completion.

And if I recall correctly, most of the discounted sold out resort sales have been going to existing owners. This has been a temporary strategy to help retain their good employees and manage their cash flow. I also think the cancellation of Reflections has meant that for the first time in ages they don’t have a WDW property ready to go when the current property sells out, so there’s a little bit less pressure than normal.

Normally it’s a disaster for a timeshare if they can’t sell out their property in a few years. Look at Aulani - its sales continue to be worse each year than the year prior, and at this point it clearly is just never going to sell out. So in normal conditions, they will do anything they can to avoid that.

 

[OKW Lover]

Disney has repeatedly adjusted direct prices to keep them in the neighborhood of 50% above resale.

Or has the resale market adjusted prices to be about 50% of the direct cost?

 

[heynowirv]

What about free resort refillable mugs for the length of your stays?

I like it, but it still wouldn't make me pay those ridiculous Diect sale prices.I'm sorry I just can't justify direct sale prices at this point.

 

[lovin'fl]

For every 100 points bought direct you would get 7 day non expiry tickets for 4. Buy 100 you get 4 7-day non expiry, 200 you get 8 7-day non expiry, 300 you get 12 7-day non expiry. Max of the 12 7-days maybe.

 

[VdoesDisney]

Correct. The goal is always resorts in active sales. I think the discount on sold out resorts right now is a strategy that is only there because of capped capacity in the parks and no ability to do the presentations at the sales center like preCocid.

If we had not had the pandemic,I do not believe you’d see this. IMO It’s a temporary sales strategy.especially since Reflections would still be on the docket for completion.

This is where Disney is sending mixed signals IMO, they’re simultaneously not interested in selling the “sold out” resorts, while also seemingly trying to deter people from resale.

 

[TCRAIG]

Just remember, anything outside of the condo itself has to be negotiated with another division. It means they have to take the hit in loss in revenue.

So, it’s not as easy as it might seem because DVD doesn’t control. That is the reason why we don’t have special privileges to get an AP right now because DPEP division makes those decisions.

Not saying membership perks can’t include that for owners...just that anything that involves a third party can not be guaranteed without their approval.

Oh yeah - I know each slice of the Disney empire is its’ own division - I’m just ‘blue skyin’

 

[cruisehopeful]

Same as cash financing for a year.
One free AP without any blackout dates.

 

[Gf77]

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[Sandisw]

I'm not an overly litigious person, but I would be first in line with a lawsuit over this. If you want direct, contractual rights (not perks which can come and go), such as booking into all current and future resorts, you need to buy direct. That's not only part of the marketing, that's in the contract. I know you hate Riviera, but you're going to have to buy direct to hate it and still stay there.

For incentives that would be less contentious, I'd like to see direct perks involving AP, FP and priority on-resort ADR.

The documents when they put the restrictions in specifically give them the ability to make these kind of changes if they want.

They can remove, put back and even add some level of cash type program. So, they made sure to cover bases for making changes to restrictions for points.

 

[Gf77]

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[Sandisw]

Are you talking about section 7 of the Purchase Agreement (Other DVC Resorts)? I'm reading it differently than you are, if so- if not, what section are you referring to? What if I told you I could have you sign a legal contract exempting me from any damages if you get injured on one of my rides, and also that that very same contract would never hold up in court? I think that's the nuance you sometimes forget- it can be in a contract and be completely shot down in court. If contracts were the final say, we'd have a lot less civil lawsuits.

There is a document you sign when you buy RIV that specifically discuses the changes made in 2019 for resale restrictions on both that and L14.

I don’t have my contract right now but it states all the updates. It may or may not be the section you are looking at so I’ll check when I can and add it.

Obviously people can fight anything. But, the fact that owners acknowledge that is a term of the POS means it’s an element that restrictions can be eliminated or some level of other program can occur.

Not sure what reason someone would have to argue that DVD can not change the status of resale points if someone purchased a matching set of direct points.

But since this is getting us a little off topic let’s maybe save for a different time.

 

[Gf77]

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[Judique]

Pretty sure their ideal buyer for direct doesn't even know about resale.

I think that was true at one time, but not so much so now. Too much info out there.

 

[DVCSunDevil]

It seems Disney has been focused on disincentivizing resale but what if instead they made it much more appealing to buy direct? Here are my thoughts on things that would move the needle:
- Great financing terms, many car companies now offer 0%-2.9% financing in order to attract buyers, I bet if Disney offered similar terms they would probably even double direct sales.
- Fast Pass tickets
- 10-20% bonus points for your first year (I know they usually throw current UY, say 2020 points in there but that feels no different than getting a loaded contract with banked points).
- Complimentary annual perks, maybe bike rentals, or a credit for lyft?

What do you guys think would be a real incentive to go direct? vs sticking to their fear based tactics against resale

That’s a tough one because remember that perks are not guaranteed. At first glance I would say that unlimited fast passes would be tempting, but then if that perk went away in a few years I would be really mad. It would have to be written into the contract that it isn’t a perk but rather “guaranteed” for the life of my ownership. Even then, it probably wouldn’t be worth the difference in price at many resorts (I saved $20k buying resale...fast passes wouldn’t be worth $20k IMO).

 

[RoseGold]

I'm not an overly litigious person, but I would be first in line with a lawsuit over this. If you want direct, contractual rights (not perks which can come and go), such as booking into all current and future resorts, you need to buy direct. That's not only part of the marketing, that's in the contract. I know you hate Riviera, but you're going to have to buy direct to hate it and still stay there.

For incentives that would be less contentious, I'd like to see direct perks involving AP, FP and priority on-resort ADR.

I did read through my Poly documents, and it was pretty clear that it can change the fringe benefits to whoever and whenever they want. I do think DVC could print some Blue Cards, if they wanted to. I mean, historically you did get the benefits with resale purchases.

RIV documents maybe not, so maybe you can't stay at RIV. Maybe I should read the RIV documents. I'm sure it says they can let whatever kind of points they want book there and pretty much do what they want. I mean, that seems to be the theme.

Because DVC's official marketing information, and the information from my guide explicitly stated that buying direct is the only way to have access to the current resorts + Riviera.

Then your guide has no idea what he is talking about because that has never been true. Grandfathered resale is included, so is cash, so is gratuitous transfer, there are lots of ways to get access that aren't buying direct.

I would argue that RIV resale's restrictions are pretty clear, but there's lots of O14 grandfathered resale that is in the middle ground and has been for a long time.

 

[DVCSunDevil]

Allow owners of resale to buy an equivalent number of direct points to a contract they own and all points become eligible for use at all resorts.

I have 100 restricted points, and then I buy 100 direct, I now get to use all 200 at RIV and future resorts.

Oooooh, that is a good one. It would be expensive for me (200 BCV points), but if I was looking to add on it would make me at least consider buying direct much more carefully. Especially if those direct points don’t have to be at your current resort. In that case I would be much more inclined to buy direct.

 

[Gf77]

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