jw24
Well-Known Member
People pay outrageous prices for their own personal reasons.
Couldn't have said it better myself.
People pay outrageous prices for their own personal reasons.
The six year old would probably be even happier to stay at the All-Stars or AoA. Kids love those places. Or the Nick hotel.I agree...I didn't say anything about the "best". Disney may be near the top of expensive, but certainly not near the top of "best". Wanting and being able to afford what you want doesn't always mean it has to be the best quality or the best value.
Just try telling a 6 year old that staying at a Four Seasons is a better value than waking up and looking at the Magic Kingdom each morning. People pay outrageous prices for their own personal reasons.
Then I would have to assume that it does not bother anyone in WDW management that rooms at the Poly are sitting empty? By the way, don't prices on rooms go up in August?There's a reason why plenty of rooms are available even on short notice.
Couldn't you go to Hawaii for those prices and get the real thing? Atmosphere.I cannot think of a bigger waste of money. A thousand dollars (after taxes) for 1 night in a lagoon NON-theme park view room at a 40 year old hotel. That's during holiday season. But even during the dead season of September you will pay $790 after taxes, again for a standard non-theme park view room.
Seriously, you could stay at the Wilderness Lodge and with the savings eat at Victoria and Alberts every night of your stay. Or you could stay at, say, Coronado Springs and basically have everyone's tickets and meals paid for. And those are two very fine hotels.
WDW occupancy rates have been declining for several years. IMHO, this is mostly due to the economy but events at Uni haven't helped either. Nor has WDW's failure to build anything to attract new guests.Then I would have to assume that it does not bother anyone in WDW management that rooms at the Poly are sitting empty? By the way, don't prices on rooms go up in August?
Then why charge those prices. I know. Because they can. If you price to where it is more affordable maybe it would get filled. The sad thing is it's like states do, raise taxes to recoup or generate revenue (New York city, Chicago, many others) . Then businesses move out. Sorry, not trying to stir politics. But there comes a point where you price yourself out of business. Even the supposed discount on rack rate is a farce at WDW. I stayed at BWV on rental points. If it had not been a half way decent price for eight nights, I would never have stayed there. 6 to 8 nights at Poly? My sensibilities kick in.WDW occupancy rates have been declining for several years. IMHO, this is mostly due to the economy but events at Uni haven't helped either. Nor has WDW's failure to build anything to attract new guests.
Last year, WDW rooms ran at about 80% occupancy. There are about 5600 Deluxe Resort rooms, 7500 Moderate Resort rooms, and 10,600 Value Resort rooms with Value Resorts having the highest occupancy rates. Occupancy rates would be much lower except a large increase South American business in recent years has helped Disney, something Burbank truly appreciates, as does the Orlando economy.
Because occupancy rates tend to be lower for Deluxe and Moderate Resorts, the difference between an 85% vs. 80% occupancy rate represents roughly $100M in annual profit not being captured so, yes, the declining occupancy rates bother TWDC management. This of it this way. It costs TWDC less than $30 to service an occupied room (mouse cleaning, water, electricity, etc.). With the Poly going for over $400/night many nights, every unoccupied room represents a lot of lost profit.
WDW's pricing structure is impressively complex now, with over a dozen seasons. This year, May 31 to July 13 is "Summer" season, July 14 to August 17 is "Value 2" season, and August 18 to September 26 is "Value 1" season.
From a business perspective, it bothers me that WDW management is willing to convert highly profitable rooms at a resort as popular at the Polynesian to DVC. Occupied rooms at the Polynesian represent a tremendous revenue stream.Then why charge those prices. I know. Because they can. If you price to where it is more affordable maybe it would get filled. The sad thing is it's like states do, raise taxes to recoup or generate revenue (New York city, Chicago, many others) . Then businesses move out. Sorry, not trying to stir politics. But there comes a point where you price yourself out of business. Even the supposed discount on rack rate is a farce at WDW. I stayed at BWV on rental points. If it had not been a half way decent price for eight nights, I would never have stayed there. 6 to 8 nights at Poly? My sensibilities kick in.
Again, if they would only change there pricing structure.From a business perspective, it bothers me that WDW management is willing to convert highly profitable rooms at a resort as popular at the Polynesian to DVC. Occupied rooms at the Polynesian represent a tremendous revenue stream.
DVCs are a different beast. Their profit (ignoring foreclosure and ROFR) is one-time only. Due to timeshare laws, annual Maintenance Fees can be charged at cost only. Long-term, an occupied cash room is much more profitable than a timeshare. Why turn presumably highly profitable existing rooms into DVC? To me, the best explanation is that the Poly's occupancy rate is down significantly and WDW management doesn't see it fully recovering any time in the foreseeable future.
The Poly has approximately 850 rooms. If I correctly understand @tikiman, it looks like they are converting about 150 rooms to DVC. That represents about 18% of the Poly's total capacity. To me, the DVC at the Poly suggests that the Poly's current occupancy rate is under 80% and WDW management sees a conversion to DVC as a way to recover lost revenue from those unoccupied rooms. In other words, WDW management has thrown in the towel and doesn't think occupancy rates will ever climb back to their once envious levels.
If I correctly understand @tikiman's previous posts, earlier plans for DVC were much bigger. In other words, many more rooms were slated for conversion. That makes my wonder if current Poly occupancy rates are much lower but Disney management backed off their more grandiose plans either because they got cold feet or are hopeful that Poly occupancy rates eventually will rebound somewhat.
I bet it's quite a bit lower than that. I had a friend in house cleaning, and she told me each person was required to clean 4 rooms per hour. And she was making almost nothing, like $10 an hour before gratuity. So you could say Disney spends $2.50 per room each day, and I guess twice that if the room is cleaned twice a day (can't remember if they do this like DCL does). Throw in a couple dollars or so for the chemicals and materials used to clean, and the utilities (which isn't much with Disney's extremely efficient system) and I bet it costs about $15 a day per room.Think of it this way. It costs TWDC less than $30 to service an occupied room (mouse cleaning, water, electricity, etc.). With the Poly going for over $400/night many nights, every unoccupied room represents a lot of lost profit.
Not quite sure where you have seen those rates. The GF is much higher for better view rooms than the poly.I cannot think of a bigger waste of money. A thousand dollars (after taxes) for 1 night in a lagoon NON-theme park view room at a 40 year old hotel. That's during holiday season. But even during the dead season of September you will pay $790 after taxes, again for a standard non-theme park view room.
Seriously, you could stay at the Wilderness Lodge and with the savings eat at Victoria and Alberts every night of your stay. Or you could stay at, say, Coronado Springs and basically have everyone's tickets and meals paid for. And those are two very fine hotels.
I bet it's quite a bit lower than that. I had a friend in house cleaning, and she told me each person was required to clean 4 rooms per hour. And she was making almost nothing, like $10 an hour before gratuity. So you could say Disney spends $2.50 per room each day, and I guess twice that if the room is cleaned twice a day (can't remember if they do this like DCL does). Throw in a couple dollars or so for the chemicals and materials used to clean, and the utilities (which isn't much with Disney's extremely efficient system) and I bet it costs about $15 a day per room.
I wonder how lucrative it would be for Disney if they ever decided to register with Priceline or implement a last minute discount program. I mean if a room is only costing $15-20 a day to service, isn't selling it for $200 a lot better than having it empty and making nothing?
Disney is already on priceline.
http://www.priceline.com/hotel/hote...0a364a050a201308051504198e3010222334&plf=PCLH
From a business perspective, it bothers me that WDW management is willing to convert highly profitable rooms at a resort as popular at the Polynesian to DVC. Occupied rooms at the Polynesian represent a tremendous revenue stream.
DVCs are a different beast. Their profit (ignoring foreclosure and ROFR) is one-time only. Due to timeshare laws, annual Maintenance Fees can be charged at cost only. Long-term, an occupied cash room is much more profitable than a timeshare. Why turn presumably highly profitable existing rooms into DVC? To me, the best explanation is that the Poly's occupancy rate is down significantly and WDW management doesn't see it fully recovering any time in the foreseeable future.
The Poly has approximately 850 rooms. If I correctly understand @tikiman, it looks like they are converting about 150 rooms to DVC. That represents about 18% of the Poly's total capacity. To me, the DVC at the Poly suggests that the Poly's current occupancy rate is under 80% and WDW management sees a conversion to DVC as a way to recover lost revenue from those unoccupied rooms. In other words, WDW management has thrown in the towel and doesn't think occupancy rates will ever climb back to their once envious levels.
If I correctly understand @tikiman's previous posts, earlier plans for DVC were much bigger. In other words, many more rooms were slated for conversion. That makes my wonder if current Poly occupancy rates are much lower but Disney management backed off their more grandiose plans either because they got cold feet or are hopeful that Poly occupancy rates eventually will rebound somewhat.
I love free dining.People getting "free" dining.
$1200 for a night at the Poly is insane. Even if you get some free Diet Coke and a view.Even holiday rates max out at $857 for themepark view room in a standard level room but club level gets up there in the holiday seasons and Peak Season rates being $1055 for Themepark View rooms and $995 for Lagoon view rooms. It maxes out at $1060 before tax for Themepark club level from 12/20 -012/31 but hopefully no one is paying full price.
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