Aulani price increase on the horizon

[DVCNews]

Disney Vacation Club plans to soon raise the base price for Aulani, Disney Vacation Club Villas from $120 per point to $135 per point.?

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[wdrl]

I wish I understood DVD's pricing strategies. In Aulani's case, I don't think that customer demand is driving the price upward. I have very limited data on sales at Aulani, but for the 12 months ending July 2011, I show Aulani only average 337 deeds per month. By comparison, BLT averaged 900 deeds for that same period. Perhaps Aulani sales will jump now that the resort is open and the reviews have been very positive. But will monthly sales triple over what was sold during its first year? I doubt it.

When the Aulani project was given the green light by the Disney Corporation several years ago, I'm sure it was expected that it would attain certain goals on costs, profits, Return on Investment, etc. But it seems there have been several factors working against Aulani, factors that weren't foreseen when the project was green lit years ago: The Japanese earthquake and tsunami, the continuing weakness of the U.S. and global economies, the suspension of sales for two months. There could be a lot of pressure on DVD to meet the financial goals that were set years ago. Hence, DVD might be trying to follow a pricing schedule that might have been set back in 2008 rather than deal with the economic realities of today.

Another factor that might affect Aulani's price is that it, unlike the other DVC resorts, has to compete with other timeshares in its neighborhood. At Ko Olina, there are two Marriott timeshares adjacent to Aulani and it might be easier for prospective buyers to do some comparison shopping. How many WDW visitors look at the DVC but then go over to Bonnet Creek to see what Wyndham has to offer?

I also think that when DVD prices one resort, it considers how it might affect sales at its other resorts. In 2010, it priced OKW and SSR as low priced alternatives to BLT and saw sales increase dramatically for both resorts. Perhaps pricing Aulani at $135 a point is part of a larger strategy to position AKV for better sales?

Like I say, I don't understand much about DVD pricing strategies.

[denlo]

I'm baffled by a price increase for Aulani. What is the DVC thinking, raise the prices and they will come?

We just met a neighbor that is a travel agent and she was mentioning how Disney is offering $150 prices per night at Aulani and if you reserve four nights you got the fifth night free. I realize that those specials are for the hotel portion and not the DVC villas, but I also haven't heard of a single member not get the reservation for their desired dates either, including those booking at the 7 month mark.

The only thing I can think of is that the DVC plans to run more specials and by raising the prices the discounts will look better to people that don't read this forum.

[KNWVIKING 2.0]

I view Aulani the same as I do HHI and VB: Without a Castle, sales are going to be difficult. I imagine eveyone would love to visit Hawaii at least once or twice in their lifetime, but it will never be an every year destination much less a multiple times per year trip.

HHI and VB have a massive east coast population within an easy days drive or a quick, relatively inexpensive flight, and it still took them years to sell out at steeping discounted prices. I think it will actually be worse for Aulani.

[DisneyGeek]

I think it will actually be worse for Aulani.

I agree, especially since the potentially lucrative Japanese market may be suppressed some by natural disaster recovery. Perhaps a large Duffy presence at Aulani would help!