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

[tidefan]

Free bottle of Beverly to every purchaser...

 

[meanwoodwhite]

The best and easiest is to give real DVC discounted park tickets not that bogus +2 day offer that anyone could get on 3rd party ticket sites.

The funny thing is the made it blue card only, which probably made it easier for resale buyers as we could go online and purchase it in seconds while DVC required you to ring up to buy tickets like it was 1985 and wait an hour on hold.

Why they want to stop a percentage of your customer base (resale) buying your product baffles me.

I just don't think they are very good at incentives.

 

[DVCSunDevil]

I just don't think they are very good at incentives.

This pretty much sums it up. Although to be fair, DVC is kind of restricted on what incentives they can do based on the membership contract. Almost all of the ideas in this thread are "perks", which can go away at any time. The simplest and most obvious method to incentivize direct sales is a big reduction in price (not happening). The one idea in this thread that isn't "perk" related is Sandisw's idea of converting matching resale points to direct. That idea would be "permanent" and couldn't be taken away. That idea would be great for resale owners, but it wouldn't really mean much to those that are either already full direct members or those first time DVCers that are about to buy. It's a tough situation, but it's fun to come up with ideas! Personally, I would not buy direct based any incentive that revolved around "perks"...it would need to be something that is guaranteed for the life of my membership.

 

[New Mouse]

If you really want to differentiate interest and effect booking patterns, have many more dvc after hours events during this off peak booking periods.

The parties are one of the coolest perks but one per park per year does nothing to move the needle.

 

[AdamsMum]

And I could never lock myself into the 'forever' deals.

I agree, the end date is one of the best things about DVC. IMO

 

[meanwoodwhite]

This pretty much sums it up. Although to be fair, DVC is kind of restricted on what incentives they can do based on the membership contract. Almost all of the ideas in this thread are "perks", which can go away at any time. The simplest and most obvious method to incentivize direct sales is a big reduction in price (not happening). The one idea in this thread that isn't "perk" related is Sandisw's idea of converting matching resale points to direct. That idea would be "permanent" and couldn't be taken away. That idea would be great for resale owners, but it wouldn't really mean much to those that are either already full direct members or those first time DVCers that are about to buy. It's a tough situation, but it's fun to come up with ideas! Personally, I would not buy direct based any incentive that revolved around "perks"...it would need to be something that is guaranteed for the life of my membership.

I agree my 100 points would have cost $10,000 more buying direct. No "perk" is worth 10 grand and nobody could convince me otherwise.

 

[DVCSunDevil]

I agree my 100 points would have cost $10,000 more buying direct. No "perk" is worth 10 grand and nobody could convince me otherwise.

Without. A. Doubt! I saved $20k on my 200 BCV resale contract that I closed on in 2020. No amount of "perks" would have influenced me to go direct, unless it was 75% off park tickets guaranteed for the life of my membership (which I guess wouldn't be a perk because it is guaranteed). All of the current perks combined don't carry the monetary significance to make up for the $20k saved.

 

[VdoesDisney]

Without. A. Doubt! I saved $20k on my 200 BCV resale contract that I closed on in 2020. No amount of "perks" would have influenced me to go direct, unless it was 75% off park tickets guaranteed for the life of my membership (which I guess wouldn't be a perk because it is guaranteed). All of the current perks combined don't carry the monetary significance to make up for the $20k saved.

Same here, saved over $10k going resale, I wonder why they fight resale so aggressively if they are really not making significant efforts to make direct a better choice, the current perks are largely meaningless and, as many have said, cannot be counted on for the life of your contract.

 

[New Mouse]

Same here, saved over $10k going resale, I wonder why they fight resale so aggressively if they are really not making significant efforts to make direct a better choice, the current perks are largely meaningless and, as many have said, cannot be counted on for the life of your contract.

Its a balance. They need resale to a degree as they dont have enough product or infrastructure assuming everyone bought direct.

Resale is also a huge way to market direct, especially when comparing it to other time shares.

 

[Sandisw]

Same here, saved over $10k going resale, I wonder why they fight resale so aggressively if they are really not making significant efforts to make direct a better choice, the current perks are largely meaningless and, as many have said, cannot be counted on for the life of your contract.

I think they are plying the long game and in 2019 it was the beginning of starting a new DVC product.

In 20 years, these differences will be a lot more impactful. To me, they were willing to give up short term potential sales, especially with current owners in exchange for setting the stage for the future resorts.

Had the events of 2020 not happened, there would be two new resorts vs one in the works that could be given the same rules as RIV.

Obviously game plan is adjusted so we shall see. I think the direct price per point before incentives at $201 for a new resort is close to what I’d say is a ceiling.

 

[CSLucas]

I think they are plying the long game and in 2019 it was the beginning of starting a new DVC product.

In 20 years, these differences will be a lot more impactful. To me, they were willing to give up short term potential sales, especially with current owners in exchange for setting the stage for the future resorts.

Had the events of 2020 not happened, there would be two new resorts vs one in the works that could be given the same rules as RIV.

Obviously game plan is adjusted so we shall see. I think the direct price per point before incentives at $201 for a new resort is close to what I’d say is a ceiling.

Absolutely agree on the long game. As you have pointed out other places, DVC in 2042 is going to look SO different, and the resale restrictions going forward are going to solve this resale v. direct problem nicely for Disney since it will be a completely different product (so they really won't even be competing). I for one don't really see any meaningful perks coming out in the next few years (but I do hope I am wrong and it is fun to brainstorm!).

Do we know that direct sales are hurting? My guide was perfectly happy to put me on the VGF waitlist and even recommended that I just wait for the points instead of buying RIV (which was my backup plan), so it doesn't seem like they are pushing guides to get that one sold out quickly.

 

[Sandisw]

Absolutely agree on the long game. As you have pointed out other places, DVC in 2042 is going to look SO different, and the resale restrictions going forward are going to solve this resale v. direct problem nicely for Disney since it will be a completely different product (so they really won't even be competing). I for one don't really see any meaningful perks coming out in the next few years (but I do hope I am wrong and it is fun to brainstorm!).

Do we know that direct sales are hurting? My guide was perfectly happy to put me on the VGF waitlist and even recommended that I just wait for the points instead of buying RIV (which was my backup plan), so it doesn't seem like they are pushing guides to get that one sold out quickly.

The latest report I read on www.dvcnews.com
for March sales seem to be okay, given what has occurred. Without having a WDW resort in the works, and being able to use the undeclared inventory at RIV for cash stays...I really don’t think they have the same sell out goals they did when Reflections was on the table,

Having stayed there last month, we talked to several different people who were there the week before Easter as cash guests, and they we’re loving it. One group had even paid rack rate for a 2 bedroom for 4 nights and asked lots of questions about buying in for DVC.

So, right now, it seems they are content with whatever people want to buy, including sold out resorts!

 

[justadreamaway77]

I am hoping that the current deal they did is a sign we may get this more often. From all the posts here and elsewhere that I have seen...not to mention it’s impact on call wait times...it seems like a success!!!

except you had to buy 4 to get 2 free. We just go to the parks 1-2 times a visit (depends on the length) so I don't want a bunch of park days. I'd be happy with 10-15% off ticket prices. So I could decide how often I want to go to the parks. I don't want Disney to make that decision for me.

 

[Sandisw]

except you had to buy 4 to get 2 free. We just go to the parks 1-2 times a visit (depends on the length) so I don't want a bunch of park days. I'd be happy with 10-15% off ticket prices. So I could decide how often I want to go to the parks. I don't want Disney to make that decision for me.

I simply meant that giving us a similar deal that was offered for cash stays may be a good sign that other types of discounts could be negotiated with DPEP.

Of course, it didn’t work for everyone. I needed a 3 plus 2 free so had to go a different route.

 

[thebigman65]

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.

This! .......

 

[AliceAnn]

How about once a week, or more, a direct buyer wins a nights stay in The Cinderella Castle Suite.

 

[VdoesDisney]

The latest report I read on www.dvcnews.com
for March sales seem to be okay, given what has occurred. Without having a WDW resort in the works, and being able to use the undeclared inventory at RIV for cash stays...I really don’t think they have the same sell out goals they did when Reflections was on the table,

Having stayed there last month, we talked to several different people who were there the week before Easter as cash guests, and they we’re loving it. One group had even paid rack rate for a 2 bedroom for 4 nights and asked lots of questions about buying in for DVC.

So, right now, it seems they are content with whatever people want to buy, including sold out resorts!

Thanks for the link, I just read the Mach 2021 report and they talk about an increase in buybacks, with OKW being a primary target and several resort seeing an uptick, maybe it’s the way I am interpreting this but it seems to suggest a desire to sell those resorts direct, which is what makes no sense to me, I agree it seemed their long term plan was to have a very different DVC system in 2042, but what is the plan for the next 21 years? How will they sell their inventory of ROFR’d points without real incentives? Buyers are increasingly more educated about resale and have a better understanding of the lack of value associated with most current perks.

 

[Cabius]

I think part of the problem with perks and incentives is that every time they build a new resort, the cost of (most of) those perks grows, while the value pretty much stays the same.

For the 1st resort you sell, every marketing dollar you spend on membership extras goes directly to the people buying your product.

But for the 10th resort you sell, 90% of every marketing dollar you spend is going to the people who already gave you their money when you sold the first 9 resorts!

That discounted AP has the same value to a new direct buyer whether she's the only one who has it, or one of a million, but it costs Disney a lot more.

There are also the fixed-capacity extras, like membership lounges or Moonlight Magic events, where their costs are relatively capped because capacity is relatively capped. But for these, as membership grows these become more crowded and/or less available, which means that the value of the perks declines. (Of course, if an ill-informed new direct buyer doesn't know that, it still makes a lot of sense for DVC to lean hard on those extras in marketing!)

As some point, about 20 years from now, we'll likely see a slowdown in new construction as DVC just enters a cycle of renovating and re-selling resorts as they expire. Until then, I expect to see this dilution problem continue.

The one countervailing force here are the resale restrictions, since over time a percentage of contracts will sell out of the blue card pool, making membership extras more cost-effective for Disney to offer to drive sales.

I have to think that's a big part of their rationale here, not just to dilute the value of the resale contracts vs. direct purchase.

 

[Sandisw]

Thanks for the link, I just read the Mach 2021 report and they talk about an increase in buybacks, with OKW being a primary target and several resort seeing an uptick, maybe it’s the way I am interpreting this but it seems to suggest a desire to sell those resorts direct, which is what makes no sense to me, I agree it seemed their long term plan was to have a very different DVC system in 2042, but what is the plan for the next 21 years? How will they sell their inventory of ROFR’d points without real incentives? Buyers are increasingly more educated about resale and have a better understanding of the lack of value associated with most current perks.

Any points they own can be used to book DVC rooms and they offer them for cash. No different than any other owner. They also have more points to offer as one time use points too.

While not money for a sale, it’s money they can make using the points to reserve cash guests.

 

[DVCSunDevil]

I think part of the problem with perks and incentives is that every time they build a new resort, the cost of (most of) those perks grows, while the value pretty much stays the same.

For the 1st resort you sell, every marketing dollar you spend on membership extras goes directly to the people buying your product.

But for the 10th resort you sell, 90% of every marketing dollar you spend is going to the people who already gave you their money when you sold the first 9 resorts!

That discounted AP has the same value to a new direct buyer whether she's the only one who has it, or one of a million, but it costs Disney a lot more.

There are also the fixed-capacity extras, like membership lounges or Moonlight Magic events, where their costs are relatively capped because capacity is relatively capped. But for these, as membership grows these become more crowded and/or less available, which means that the value of the perks declines. (Of course, if an ill-informed new direct buyer doesn't know that, it still makes a lot of sense for DVC to lean hard on those extras in marketing!)

As some point, about 20 years from now, we'll likely see a slowdown in new construction as DVC just enters a cycle of renovating and re-selling resorts as they expire. Until then, I expect to see this dilution problem continue.

The one countervailing force here are the resale restrictions, since over time a percentage of contracts will sell out of the blue card pool, making membership extras more cost-effective for Disney to offer to drive sales.

I have to think that's a big part of their rationale here, not just to dilute the value of the resale contracts vs. direct purchase.

Hmmm, interesting point. I hadn't thought about that. So DVC actually may not mind (even encourage?) resales right now because it reduces the amount of blue cards that are out there. Thus reducing overall costs for "perks". The scenario where that wouldn't hold true is when a member who owns multiple direct contracts and decides to sell one or two, while keeping at least one. That member would still have their blue card. Still, a very large percentage of resales will result in one less blue card member given the current restrictions. That's an interesting way to look at it. The question is how much blue card perks cost WDW/DVC compared to the money DVC is losing on the sale of the contract. Like in my situation, I'm sure WDW/DVC would prefer to have the $20K I saved by buying resale rather than the money they will save by not giving me the blue card "perks".