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Thread: Direct Sales Dip to Lowest Point in 19 Months

  1. #1
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    Default Direct Sales Dip to Lowest Point in 19 Months

    Disney Vacation Club's direct sales for July 2018 were down nearly 30% from its 6 month average and 20% year-over-year.



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    I think you may see more of this because a lot of the sales of these points happen at the parks and the variable pricing table that has been put in play that the busiest times of year may not have as many guests as in the past. I know that it has always fluctuated but i think you may see more of the up and down depending on price point for that time of year. I wonder also if down the pike if you don't see some of the sales suffer because there are to many resorts for sale at once?

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    Quote Originally Posted by fireshot25 View Post
    I think you may see more of this because a lot of the sales of these points happen at the parks and the variable pricing table that has been put in play that the busiest times of year may not have as many guests as in the past. I know that it has always fluctuated but i think you may see more of the up and down depending on price point for that time of year. I wonder also if down the pike if you don't see some of the sales suffer because there are to many resorts for sale at once?
    I'm not sure what the connection is between DVC sales and Park attendance. Overall, Park attendance continues to creep up: The latest quarterly financial report from Disney stated Park attendance was up 1%. However, Resort occupancy was down 2% , which Disney stated was due to reduced room inventory from room refurbishment and conversions. With many different variables in play, I think its difficult to correlate DVC sales to whether the Parks are busy or not.

    Sales haven't suffered in the past because there were multiple resorts being actively marketed at the same time. VGF and PVB overlapped for a time, and then PVB and Copper Creek overlapped. But Disney was able to finish off sales for the older resort before shifting its full attention to the newer resort. Currently, Copper Creek and Aulani are the only resorts that Disney is marketing at this time. Given that Aulani is basically a "West Coast" product, I doubt that it is mentioned that often by the Guides during a DVC tour at Walt Disney World.

    True, Disney now has 14 DVC resorts that it can sell. But for all practicable purposes the only resort(s) the prospective buyer looks at is the resort (or two) that Disney is marketing at the time. Its not like a prospective buyer is shown brochures on all 14 resorts. So I doubt if sales will ever suffer because a buyer has "too many choices."






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    Ever since becoming an owner last year I love these reports. Thank you for your work with this.
    I do have a question.
    Any idea how many points are remaining at Aulani?

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    Quote Originally Posted by wdrl View Post
    I'm not sure what the connection is between DVC sales and Park attendance. Overall, Park attendance continues to creep up: The latest quarterly financial report from Disney stated Park attendance was up 1%. However, Resort occupancy was down 2% , which Disney stated was due to reduced room inventory from room refurbishment and conversions. With many different variables in play, I think its difficult to correlate DVC sales to whether the Parks are busy or not.

    Sales haven't suffered in the past because there were multiple resorts being actively marketed at the same time. VGF and PVB overlapped for a time, and then PVB and Copper Creek overlapped. But Disney was able to finish off sales for the older resort before shifting its full attention to the newer resort. Currently, Copper Creek and Aulani are the only resorts that Disney is marketing at this time. Given that Aulani is basically a "West Coast" product, I doubt that it is mentioned that often by the Guides during a DVC tour at Walt Disney World.

    True, Disney now has 14 DVC resorts that it can sell. But for all practicable purposes the only resort(s) the prospective buyer looks at is the resort (or two) that Disney is marketing at the time. Its not like a prospective buyer is shown brochures on all 14 resorts. So I doubt if sales will ever suffer because a buyer has "too many choices."
    i was thinking that a lot of there business is from the park and pulling in guests from walking and talking at the kiosks.

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    They could turn these numbers around fairly quickly if west coast guides were not forced to push underperforming Aulani points at guests in Anaheim. My understanding is that the (DVC) waiting list for Grand California Villas points is so long that they stopped taking names for it. Given that DVC owns almost 100 of the standard hotel rooms in the additional wing that was added for VGC, a simple conversion would allow them to start selling a property that buyers actually want on the west coast.

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    Quote Originally Posted by Jaugie View Post
    Ever since becoming an owner last year I love these reports. Thank you for your work with this.
    I do have a question.
    Any idea how many points are remaining at Aulani?
    Thanks for reading the sales articles.

    I wish I could include the Aulani numbers in the sales reports, but sales information is not currently available. Aulani deeds are recorded by the Hawaii Bureau of Conveyances but only limited data is available on its website. Since May 2017, HBC no longer displays the number of points tied to each deed.

    Although sales data isn't available for Aulani, there is one indicator that tells us how sales are going for Aulani. Before any points can be sold to the public, Disney must declare residential units for the DVC inventory. The resort has 467 vacation homes but the 2018 Estimated Operating Budget for Aulani shows that the DVC resort budget is for only 251 vacation homes. This means that only slightly more than half of Aulani has been declared for the DVC inventory. This tells me that, at best, only half of Aulani's 11.5 million points have been sold to the public.

    Its going to be a long time before Aulani is sold out.






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    Default Re: Direct Sales Dip to Lowest Point in 19 Months

    Thanks for sharing the news and data. It's good to see something fairly objective, even if some of the time-related factors confound the cause/effect.

    +1 for any efforts to convert more space at Grand California (Anaheim) for DVC members. Our family LOVES the SoCAL parks and we'd like to be able to use our DVC points more easily than currently. Nice if they could find a way to more seamlessly offer rooms at Paradise Pier or DLand Hotel. In the past, trying to use DVC points to get a room + concierge access at PP was more complex than Hawkeye Pierce getting a new pair of boots.

    See you on the savanna!

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    Quote Originally Posted by dwelty View Post
    They could turn these numbers around fairly quickly if west coast guides were not forced to push underperforming Aulani points at guests in Anaheim. My understanding is that the (DVC) waiting list for Grand California Villas points is so long that they stopped taking names for it. Given that DVC owns almost 100 of the standard hotel rooms in the additional wing that was added for VGC, a simple conversion would allow them to start selling a property that buyers actually want on the west coast.
    Where does the ownership of 100 rooms come from? That is the first that I have ever heard that.

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    Quote Originally Posted by Meh View Post
    Where does the ownership of 100 rooms come from? That is the first that I have ever heard that.
    It is written in the Public Offering Statement and Declaration. But I thought it was little more than 100.

    Edit: I found the figure in the 2018 Notice of Annual Meeting for VGF. It shows 203 hotel units. https://disneyvacationclub.disney.go...Notice-VGC.pdf
    Last edited by denlo; 08-13-2018 at 10:14 AM.
    --Denise

    Scheduled upcoming Disney trips:

    11/27-12/14/18 AKV Kidani Village
    2/19-2/22/19 - Bay Lake Tower
    3/10-3/14/19 - AKV Jambo House


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