What is going on with Disney parks?

[SaintsManiac]

Love love love Cabana Bay, too!

 

[Brianstl]

the oro

talking about that it it does stumble hard enough, I wonder how bad the resale market will take a hit. People will be trying to unload as quick as possible and cheap and I dont see Disney buying back all of the them, but the benefits of buying resale have been stripped pretty good in the past 5 years by Disney. I dont see them adding them back if a recession happens. Do they just burn money buying back contracts and points to bank them for the next economy rise to resell them or do you think they will let the market bottom out? For the current resorts they sell they can just offer better "promotional pricing" without hurting there non promotional price but for the older ones? Im not sure.

They will let the resale market bottom out. They aren't going to buy back points they can't sell in addition to the points they have to take back in foreclosure.

 

[firefly_ris]

Forgot to add AoA family suites in my last post. Oh Disney, you joker you.

 

[clarker99]

Cabana Bay is amazing - I am staying there just to go to SeaWorld since my kids wont get anything out of Universal parks but the pool area there is fantastic. I feel like AoA really highlights that people are willing to pay crazy prices for certain Disney things. There is no reason that rooms there should be closer in price to Riverside than the AllStars but they are. The gondola adds to it now but its still pricier than POP despite being the exact same resort and the prices have been out of whack since it opened so before most people on this board are claiming Disney got crazy with resort pricing. Disney has always been crazy with resort pricing.

I was pretty meh about Cabana Bay. My wife loved the in-house Starbucks, tho. We should of bit the bullet and stayed at a Uni deluxe.

 

[clarker99]

They will let the resale market bottom out. They aren't going to buy back points they can't sell in addition to the points they have to take back in foreclosure.

I am pretty sure DVC will not let things tank. If resale tanks then who will buy direct? Disney buys back points using ROFR to avoid people getting things below market value and keep the value for them and the members. The 2042 properties will be interesting but even if you buy for pennies on the dollar for 5years of use it will be cheaper than paying cash for rooms. If you are a seller in year 2040, you are prob still better off just renting your points out than selling for nothing.

 

[Mikey15]

View attachment 475283

Forgot to add AoA family suites in my last post. Oh Disney, you joker you.

If you need the extra sleeping surfaces, the extra bathroom, the extra privacy of a bedroom with a door, AOA actually isn't a bad deal in the world of Disney. You could get two rooms at Pop instead, but it definitely compares favourably to the cash price for a DVC 1-bedroom.

...What it doesn't compare favourably to is a week at a timeshare 10 minutes away, but nothing onsite does.

 

[dlavender]

I was pretty meh about Cabana Bay. My wife loved the in-house Starbucks, tho. We should of bit the bullet and stayed at a Uni deluxe.

For $179 I don’t know how you beat it, especially compared to AoA...

And uni keeps their pools open a lot later...

 

[dlavender]

View attachment 475283

Forgot to add AoA family suites in my last post. Oh Disney, you joker you.

I will never understand the pricing on those. At a value resort?!

 

[dlavender]

I am pretty sure DVC will not let things tank. If resale tanks then who will buy direct? Disney buys back points using ROFR to avoid people getting things below market value and keep the value for them and the members. The 2042 properties will be interesting but even if you buy for pennies on the dollar for 5years of use it will be cheaper than paying cash for rooms. If you are a seller in year 2040, you are prob still better off just renting your points out than selling for nothing.

Only problem is if too many people try to rent...

But it will be interesting to see how it plays out.

 

[Brianstl]

I am pretty sure DVC will not let things tank. If resale tanks then who will buy direct? Disney buys back points using ROFR to avoid people getting things below market value and keep the value for them and the members. The 2042 properties will be interesting but even if you buy for pennies on the dollar for 5years of use it will be cheaper than paying cash for rooms. If you are a seller in year 2040, you are prob still better off just renting your points out than selling for nothing.

Disney buys back the cheapest points they can that they have buyers for at sold out resorts. Disney does not buy back resale because they think the resale price is too cheap and is negatively impacting direct sales. If Disney thought they had to prop up resale prices to not hurt direct sales they would be actively using ROFR on Aulani resale contracts instead of letting the resale price average almost 50% less than the current direct price.

Cheap resale doesn't really hurt timeshare direct sales. If it did, all of the timeshare companies would be propping up their resale market by using ROFR on contracts that sell resale for pennies on the dollar. None of them do that.

 

[Mikey15]

I will never understand the pricing on those. At a value resort?!

I'm not sure why people are continually surprised that a larger 1BR, 2BA that sleeps 6 costs more per night than a smaller studio 1BA that sleeps 4 (with not much floor space left after the pull-down).

Mind you AoA is over $100/night more than ASMu family suites now. Skyliner tax.

 

[clarker99]

Disney buys back the cheapest points they can that they have buyers for at sold out resorts. Disney does not buy back resale because they think the resale price is too cheap and is negatively impacting direct sales. If Disney thought they had to prop up resale prices to not hurt direct sales they would be actively using ROFR on Aulani resale contracts instead of letting the resale price average almost 50% less than the current direct price.

Cheap resale doesn't really hurt timeshare direct sales. If it did, all of the timeshare companies would be propping up their resale market by using ROFR on contracts that sell resale for pennies on the dollar. None of them do that.

Disney never ROFR's resorts they are actively selling.

 

[Mackenzie Click-Mickelson]

If you need the extra sleeping surfaces, the extra bathroom, the extra privacy of a bedroom with a door, AOA actually isn't a bad deal in the world of Disney. You could get two rooms at Pop instead, but it definitely compares favourably to the cash price for a DVC 1-bedroom.

...What it doesn't compare favourably to is a week at a timeshare 10 minutes away, but nothing onsite does.

The fact that we have to preface that by saying "in the world of Disney"..kinda tells all lol.

 

[clarker99]

Only problem is if too many people try to rent...

But it will be interesting to see how it plays out.

There are still other members who can purchase points via transfers. The market is pretty efficient and members will actively avoid breakage. The majority of people will just use their points till the end of the agreement and be happy with all the years of vacations. Plus, there will likely be an increase in members (and the public) wanting one last stay at Beach Club or Boardwalk before things get taken back by Disney.

 

[Brianstl]

Disney never ROFR's resorts they are actively selling.

And why don't you think they do that? That don't do that because they don't need the points to sell and they don't believe the cheap resale price hurts sales. They only buy points when they have people to sell them to. They don't have a fair market price that they target for resale.

 

[firefly_ris]

If you need the extra sleeping surfaces, the extra bathroom, the extra privacy of a bedroom with a door, AOA actually isn't a bad deal in the world of Disney. You could get two rooms at Pop instead, but it definitely compares favourably to the cash price for a DVC 1-bedroom.

...What it doesn't compare favourably to is a week at a timeshare 10 minutes away, but nothing onsite does.

True. It's just the whole giant concrete box with no balcony and a table bed does not make me want to throw down 500 big ones a night. But obviously many don't share that sentiment which is fine.

 

[middlechild]

Can't wait for the discussion after UNITE HERE negotiates a minimum of 18 an hour...

 

[clarker99]

For $179 I don’t know how you beat it, especially compared to AoA...

And uni keeps their pools open a lot later...

It was about $240 a night for a standard pool view room over Easter 2019. Only 4 in our party. It was fine. The rooms need a refurb. We had fun but when we go back to Uni we will stay somewhere else. The Endless summer options are new and a nice price.

 

[Brianstl]

Can't wait for the discussion after UNITE HERE negotiates a minimum of 18 an hour...

Labor cost aren't the reason for the higher prices. With increasing labor cost Disney has double their income over the last five years at domestic parks and resorts. The prices keep going up because people are willing to pay them.

 

[snappy]

Labor cost aren't the reason for the higher prices. With increasing labor cost Disney has double their income over the last five years at domestic parks and resorts. The prices keep going up because people are willing to pay them.

agree. I think Disney must be putting some Disney koolaid in the freestyle machines.