ok now I'm mad

[dianeschlicht]

Nothing is free, and everything comes at a price. Should I expect our contractor to buy my groceries since I paid him 7 figures to build my house? I doubt he would go for that idea. It's really the same with DVC.

 

[DrTomorrow]

Talking about Disney marketing, Dining Plan and AP discount, of minor interest is this thread from the News & Rumors board about Universal's attendance. A few quotes:

Universal Orlando overcame a steep drop in attendance last year -- which it blamed in part on Walt Disney World's aggressive marketing -- to earn record profits.

Universal offered several reasons for the smaller crowds: [...] And Disney's big 50th-anniversary promotion and new flexible ticket plans lured people away.

Universal hopes to boost attendance this year with a new advertising campaign, its own flexible ticket plan and a "kids get in free" deal.

Several industry observers said the company needs to, because attendance is the driving factor of theme-park income. (emphasis added).

 

[sajetto]

Talking about Disney marketing, Dining Plan and AP discount, of minor interest is this thread from the News & Rumors board about Universal's attendance. A few quotes:

I know this is just a little OT, but you really do have to seriously consider Disney's genius marketing. I've noticed that Universal has tried its hardest to come back with the same attack with "kids stay and eat free", but also if you look at their website they have a "compare to Disney" page where they show how Universal is soooo much better than Disney Along with those stupid commericals where the bratty kid says "Sure, I liked fairy tales....when I was five."

 

[LIFERBABE]

I agree with Doc and Saje

Getting you there is half the battle. Just like Vegas. Once they get you, then they need to keep you. If you have free meal ressies every night, you aint goin nowhere!

We did "free" dining last year, we tipped more, we drank more and we were in a restaurant every night.

I just wish people would compare DVC resorts on points to Deluxe CRO packages. If they do the math based on that, they will find they are coming out cheaper renting points.

Value Resorts and Mods are not even close to DVC studios.

And the tickets are not included in this package, they are full priced.

I also agree that we are not owed anything. If you want to pay rack rate for a Deluxe Resort and pay Gate Price for MYW tickets, feel free but I dont think DVC should give that to us.

 

[CarolMN]

...(snip)...
I just wish people would compare DVC resorts on points to Deluxe CRO packages. If they do the math based on that, they will find they are coming out cheaper renting points........

Doesn't bother me if people don't think renting points is a good deal. The fewer people renting, the longer I can procrastinate and still end up with a reservation at my beloved home resort!

Best wishes -

 

[twister]

So only cash paying customers get the plan?

I pre paid my cash stays with DVC, or atleast that is what the guide told me I was doing when I wrote out the 15k dollar check.

 

[Chuck S]

So only cash paying customers get the plan?

I pre paid my cash stays with DVC, or atleast that is what the guide told me I was doing when I wrote out the 15k dollar check.

Actually not all cash customers can get the free dining, only those paying rack rate (non-discounted).

Let's do a comparison. Rooms start at $269 per night at SSR (plus tax). Given the current price of $98 per point divided by the number of years remaining on the contract that comes to about $2.09 per point. Now add the dues, I'm not sure what they are at SSR, so I'll guess $4.25 for a total of $6.34 per point this year. A studio in September for one week is 95 points for a total outlay (room only) of $602.30

Now $269 for 7 nights would be $1883.00. Add (again I'm guessing) 11% room tax for a total of $2090.13 for a difference of $1487.83. I did try to verify the cash figures on the Disney website, but they are showing no availability, but it did say rooms START at $269 at SSR.

$200+ per day for "free dining". I wouldn't complain too loudly. And that includes two weekend nights, stays of Sun to Fri would save a great deal more. Even adding the DVC dining plan for two adults, you're still saving over $900.

 

[twister]

You are totaly ignoring the fact of giving Disney 15k up front and in advance. I doubt if most people had that 15k stored in a coffee can collecting no intrest, nor do I think Disney hasn't invested that money and gotten a return on the investment.

 

[Chuck S]

OK, 1487.82 less the cost for a dining plan for two adults is: $955.97. Or, an annual return of 6.37%. Sounds like a good ROI to me. Many "investments" pay less than that.

Now, we wouldn't use the dining plan, it doesn't fit our dining style. So, for the $1487.83 for room only, we're getting the equivalent of a 9.91% annual return. And that would be for new SSR purchasers.

In reality, we are getting a much higher return as we purchased at $51.50 per point.

 

[twister]

Many long term investments get higher then 9.91%. What if the person bought SS points and borrowed money from Disney? The math doesn't look so good then.

My point is simply, that DVC member do pay cash for their rooms, they just pay up front in exhange for a pre paid discount.

Here is my 15k I'll give you 800 more evey year and I'll come to your park and spend more money.

 

[Chuck S]

But your point isn't valid, even you admit we are getting "discounted" rooms. Under those terms alone we are not eligible for free dining. And looking at a daily average of $86.04 for a week in a SSR studio using points vs. $269, that is a 68% discount.

 

[twister]

Yes we get a "discount" if we give Disney 15k dollars and promise to give them 600-800 more each year.

 

[Sammie]

I agree with Chuck. It may be "free" but it isn't without cost. On top of that, I'm not sure all that many people could actually eat all that "free" food, particularly in September when it is still plenty hot. I know if it were our family, half of the free meals would never get used. I suspect Disney is counting on that.

Something else to consider. Free Dining is offered during the peak of Hurricane Season, which I am sure has something to do with when they offer it.

What happens to the free dining, when the restaurants are closed and you are stuck in your room. Will Disney bring you a free packed lunch?

 

[bicker]

Yes we get a "discount" if we give Disney 15k dollars and promise to give them 600-800 more each year.

Yup. We just broken even last year, so it takes several years for that discount to pay off, but from now on, for us, it's all gravy.

 

[Caskbill]

You are totaly ignoring the fact of giving Disney 15k up front and in advance. I doubt if most people had that 15k stored in a coffee can collecting no intrest, nor do I think Disney hasn't invested that money and gotten a return on the investment.

Disney doesn't have that money either. They used it to construct the resorts in the first place.

That's what timeshares are all about. Construction costs, sales costs, Furnishings, Landscaping, Support structures, Roads, Lights, Waterways, Land, taxes, legal documents....and so on. All paid for by the initial buy-in by the members.

Remember, by law, DVC cannot make a profit. If any money was left over and later invested, those returns must go back into the association, not into Disney's pockets.

 

[dianeschlicht]

Disney doesn't have that money either. They used it to construct the resorts in the first place.

That's what timeshares are all about. Construction costs, sales costs, Furnishings, Landscaping, Support structures, Roads, Lights, Waterways, Land, taxes, legal documents....and so on. All paid for by the initial buy-in by the members.

Remember, by law, DVC cannot make a profit. If any money was left over and later invested, those returns must go back into the association, not into Disney's pockets.

Thanks for posting this, Bill! It is a great way to explain that DVC is a timeshare and operates as such. THanks for putting it into the RIGHT words!

 

[CarolMN]

...(snip)...Remember, by law, DVC cannot make a profit. If any money was left over and later invested, those returns must go back into the association, not into Disney's pockets.

i don't think this is quite true. Disney cannot "mark up" most operating costs (for our dues), but I'm very sure that the Developer (Disney) did/does make a profit on the construction of the resorts.

Best wishes -

 

[cobbler]

So only cash paying customers get the plan?

I pre paid my cash stays with DVC, or atleast that is what the guide told me I was doing when I wrote out the 15k dollar check.

Ok the way I see it, this is only being offered for 6 weeks out of the 52 weeks this year. And there are no guarantees this will ever be offered again.

So yeah I did give them $$ up front and dues every year but I am getting far superior accomodations. So what if I have to pay for dining while some of the others get it free for a small percentage (11%) of the year. I have the flexibility of going whenever I want and the othes will have to pay for it just like I do. And during that time I know I have a far nicer room.

And next year if they don't offer it, I am still doing good in my well appointed room.

 

[bicker]

The developer definitely made profit on the initial sale. The point is that that is the only part that the developer can make profit on. The developer cannot add a profit contribution to the dues (though the management company can charge a reasonable fee for its administrative services).

 

[TDC Nala]

The "free dining plan" is NOT a perk meant to favor one type of traveler over another. It's an incentive WDW is using to try and sell rooms at rack rate during the slowest time of the year, to travelers who are no doubt already skittish about hurricanes. They don't need to use it to sell rooms to DVC members. We're lucky to even have the dining plan available to us at all without having to buy park tickets to go with it.

If the free dining plan is a spectacular deal for you, by all means cancel your DVC reservation and book a package at rack rate. Unless you're renting...then you may have to have a chat with the member you're renting from.