Do declining DVC point sales signal a shift in sales strategy?

[DVC Mike]

Looking at the total number of points sold by Disney Vacation Club from 2011 on, it is very apparent that there is a distinct downward trend in the number of points being sold by DVC year over year.

Over the same period, the cost per point to purchase direct from DVC has been going up and the point charts for the most recent DVC resorts show point inflation (it costs more points to book a reservation than it does at older resorts).

The inflated point charts and the falling quantity of points being sold also indicates a decline in the number of new DVC members that Disney Vacation Development is pulling in each year.

This seems to signal a shift in the sales strategy for DVC when compared to prior years. They are less focused on a volume business (more points at a lower price) and more focused on a smaller volume business at a higher price.

So, even though they are selling less points, they have a greater profit margin on every sale. Their strategy of converting existing hotel rooms into DVC units (at PVB and likely WL) reduces capital expenditures - decreasing the cost of the goods they are selling, resulting in a higher profit margin.

Perhaps their options for building more DVC units at WDW are growing smaller - at least in terms of the "low hanging fruit" where they can add DVC onto existing Deluxe resorts - and they realize their volume business is not sustainable, or at least not the best approach.

Point sales fell from 2.47 million in 2011 to 1.70 million in 2014.

I am excluding Aulani and VGC.

[John]

Well, it's the old economics... do I sell a ton of candy bars at a lower price, or do I sell a perceived premium bar at a higher cost to make the same amount.

Could it be that the market is saturated? It's been around long enough for resale to have a pretty big impact as well. For example, rather than buying new - it was a steal for us to buy in at an existing resort (Hilton Head) at a reasonable price. Not to mention the fact that we bought 60 points - which you can't do thru Disney.

Even Melanie from this site did the same buying in at HHI because of the cost.

Both of us know because of the number of units and the size now of DVC, you can most always find a room at OKW or SSR any time you need one.

[Hammer]

Well, it's the old economics... do I sell a ton of candy bars at a lower price, or do I sell a perceived premium bar at a higher cost to make the same amount.

Could it be that the market is saturated? It's been around long enough for resale to have a pretty big impact as well. For example, rather than buying new - it was a steal for us to buy in at an existing resort (Hilton Head) at a reasonable price. Not to mention the fact that we bought 60 points - which you can't do thru Disney.

Even Melanie from this site did the same buying in at HHI because of the cost.

Both of us know because of the number of units and the size now of DVC, you can most always find a room at OKW or SSR any time you need one.

Like John and Melanie, I also bought both of my contracts using resale ( Timeshare Store). I got a great price on both of my contracts, especially my second at OKW. The price was comparable to what John and Melanie paid for HHI. I never book at the 11 month mark, so I went with the best deal rather than resort location.

I also believe the market is saturated, but I also think people don't do their homework when they purchase DVC and end up selling it as it isn't what they thought it would be. They buy on impulse when they are down there.

[baldburke]

Like John and Melanie, I also bought both of my contracts using resale ( Timeshare Store). I got a great price on both of my contracts, especially my second at OKW. The price was comparable to what John and Melanie paid for HHI. I never book at the 11 month mark, so I went with the best deal rather than resort location.

I also believe the market is saturated, but I also think people don't do their homework when they purchase DVC and end up selling it as it isn't what they thought it would be. They buy on impulse when they are down there.

We purchased on resale too! It's a good cost savings if you plan to visit WDW (or their other properties) regularly.

[JMTStone]

I know with our current number of points, its going to be very hard for us to book Floridian or Poly DVC.

We also bought resale using the Timeshare store for our second batch of points (50) for AKV or use our original resort (SSR) and end up there for 11 month and sometimes we are lucky and get to wait list or transfer immediately where we like the best (Boardwalk, Beach Club) without paying too much in points.

We would have never bought DVC if it weren't for a bonus check or two. I don't understand financing it. But we have made it work for us.

I don't see putting any more of my bonus checks to Poly or GF though. Not unless I saw them on resale at the same time for a good price. DVC has priced me out of the newest resorts in COST and POINTS.

[WiltonJohn]

Shrinking middle class in America. The affluent have the money. The middle is watching their wallets.

Sell to the more affluent.

Simple.

The middle will still want to go... but will pay for individual trips when they save enough.

best,

..................john