DVC Problems?: Chicago/NYC Sales Office to Close

[mgf]

I think this is relevant to the parks and future resort development, particularly because I have heard that NY and NJ send the largest share of guests to WDW. It seems like an odd move given the current and rumored future expansion of DVC properties. Could it be that Disney thinks these markets are tapped out? Could sales in general be stalling? With the poor occupancy numbers resort wide, might Disney halt all future stand alone DVC plans in favor of easier to market add-ons?

Disney to close sales center
Disney's time-share arm has decided to close both of its remote sales centers in the U.S.
Disney Vacation Club, which is based in Celebration, says it will close its "Doorways to Dreams" sales center on New York's Long Island on Nov. 3.
The move comes a few weeks after Disney announced plans to shutter its other sales center, in suburban Chicago. That location, the first Disney Vacation Club sales center to open away from Walt Disney World, will shut down Sept. 14.
Disney Vacation Club also operates a sales center at Tokyo Disney in Japan, which is a key market for Aulani, Disney's hotel and time share in Hawaii.

http://articles.orlandosentinel.com...disney-california-adventure-walt-disney-world

Thoughts?

 

[NoChesterHester]

If DVC sales plummet the Parks and Resorts income numbers will look even worse going forward.

 

[GrumpyFan]

Hard to say really. It may just be a change in direction for their sales strategy. I'm guessing they're going to concentrate more on Internet and perhaps even TV and inside the parks. However, I don't think they're hurting. This may also point to them slowing down on building new DVC properties too.

 

[menamechris]

I wouldn't be surprised if DVC sales were beginning to stall, personally. There will come a time when that well will run dry. Those who are interested will have bought; those who have no interest will have passed it up countless times. I think we may be reaching that point. And given the stale nature of the parks in recent years, coupled with the runaway pricing - I think most guests will be increasingly hesitant of commiting themselves to DVC. Just my opinion...

 

[devoy1701]

Hard to say really. It may just be a change in direction for their sales strategy. I'm guessing they're going to concentrate more on Internet and perhaps even TV and inside the parks. However, I don't think they're hurting. This may also point to them slowing down on building new DVC properties too.

from what we've heard and been seeing thus far, DVC building (atleast at WDW) doesn't seem to be slowing down. Though maybe the projects in the works are being shelved for the time being (Poly, Ft Wilderness, Epcot). The Northeast (NYC in general) I assume is a HUGE market for them, so it is definitely an interesting move.

 

[MouseDreaming]

Living near the one in Chicago, I can tell you that one never made sense to me. It's a store front in a mall, and I never saw anyone in there. They also had a kiosk in the center court of the mall. Always left me scratching my head.

 

[devoy1701]

Living near the one in Chicago, I can tell you that one never made sense to me. It's a store front in a mall, and I never saw anyone in there. They also had a kiosk in the center court of the mall. Always left me scratching my head.

I agree. Although I hate it, the best time to try to convince someone to buy into a $15k-$30k timeshare is in the middle of their vacation when they're surrounded by "magic." Not sure if having a store front in the mall could ever have the same effect except for those already planning on making the purchase.

 

[JWG]

I don't see this as anything more than a change in direction under the new leadership of VP BIlby. I would be surprised if those stores, other than generating awareness, really offered anything beneficial to DVC. To the above, I don't head over to Old Navy for some cargo pants and then decide to drop $30k on a timeshare. I think they were more beneficial for existing members to stop in at to "feel" a piece of home.

 

[majortom1981]

This has nothing to do with sales of dvc in whole. Its probably due to not many people buying their points at the stores. Most dvc members and people buying points do it at the parks. No need to keep these dvc offices open if everybody buys their points at the parks themselves.

Also they seem to be doing better with dvc mall kiosks then Full blown in mall stores.

 

[samshem]

Seems to me this is just a cost savings initiative more than sales slipping. As others have mentioned, they probably got next to no sales from these locations. If they are doing it for just awareness, it would seem a much more cost effective method would be to put kiosks in existing Disney Store locations. They would probably see more traffic as well given people are in there for other things anyway.

 

[captainkidd]

I wouldn't be surprised if DVC sales were beginning to stall, personally. There will come a time when that well will run dry. Those who are interested will have bought; those who have no interest will have passed it up countless times. I think we may be reaching that point. And given the stale nature of the parks in recent years, coupled with the runaway pricing - I think most guests will be increasingly hesitant of commiting themselves to DVC. Just my opinion...

I agree 100%.

That's not a knock against DVC, but the simple fact is, they're now charging as much as $165 per point. Room rates continue to rise as well, but I've always said, DVC can't rise at the same rate. Eventually, they will price themselves out. As is, less and less people are staying on property every year. But those numbers would pale in comparison with those who don't feel comfortable making a long term commitment.

 

[ParentsOf4]

I agree. Although I hate it, the best time to try to convince someone to buy into a $15k-$30k timeshare is in the middle of their vacation when they're surrounded by "magic." Not sure if having a store front in the mall could ever have the same effect except for those already planning on making the purchase.

I agree. Spur-of-the-moment buyers in the middle of their vacations are the easiest customers for DVC direct sales. Handing them free Fast Passes to use on their current trip, feeding them snacks, and letting them actually see the rooms works wonders in closing the deal. These advantages are lost with remote sales offices. With so many DVC resales now available and with the advent of the Internet, the average consumer (i.e. anyone not at WDW) is going to have a much easier time researching a possible DVC purchase from home rather then sitting down at a store in a mall. The lure of free Fast Passes really does pull people in!

 

[bstiles]

This is what happens when companies get greedy. Not to mention when you don't add anything of substance to any of your parks in more than 5 years. Word of mouth travels fast. Can they right the ship? That remains to be seen, but at the time the brand is damaged to these people. The hard part going forward is trying to convince these people that there are going to be fresh new things to do every year or at the least every other.

 

[steve2wdw]

I bought into DVC (over 10 years ago) at $60 per point and to me, THAT makes it a huge value. At todays per point prices, I can't figure how anyone would find DVC attractive.

 

[devoy1701]

I bought into DVC (over 10 years ago) at $60 per point and to me, THAT makes it a huge value. At todays per point prices, I can't figure how anyone would find DVC attractive.

You don't know how many times we've tried too. We had thought about buying into DVC for a good 4 year stretch from 2008-2011. We peobably would have bought in 08 if our financial sitution was right and weren't also looking to buy a house, and every year after the prices would go up and it was that much easier to say no.

This is what happens when companies get greedy. Not to mention when you don't add anything of substance to any of your parks in more than 5 years. Word of mouth travels fast. Can they right the ship? That remains to be seen, but at the time the brand is damaged to these people. The hard part going forward is trying to convince these people that there are going to be fresh new things to do every year or at the least every other.

Agreed. And unfortunately we probably won't ever see a price correction with DVC. Maybe some more resort specific discount deals or 10-25% more free points with purchase, but I think Disney has priced out the market with the remaining DVCs and are kind of wondering what the heck they're supposed to do now. No way I would ever buy at more than $90-$100/point range and that would have to include something like 1-year of free points or some other big promo.

What is the current offering now?

 

[captainkidd]

I bought into DVC (over 10 years ago) at $60 per point and to me, THAT makes it a huge value. At todays per point prices, I can't figure how anyone would find DVC attractive.

That's the most logical, honest post I've ever read by an owner.

 

[jakeman]

That's the most logical, honest post I've ever read by an owner.

So the numerous people on this site that have told you time and time again that DVC doesn't work for everyone were not being honest or logical?

 

[captainkidd]

So the numerous people on this site that have told you time and time again that DVC doesn't work for everyone were not being honest or logical?

I didn't say that. However, the majority of people are all or nothing when it comes to DVC. Both owners and non-owners.

And no one has to tell me DVC doesn't work for everyone. I think I was able to figure that out on my own.

 

[midwest_mice]

As a DVC member, I can see why they would want focus on people actually in the "magic" when they try selling them the timeshare, worked on us!
But all honesty, as a DVC member, there are only a few perks like saving on an annual pass and such, but we never can get the free dining plan or reduced park tickets(unless it's an annual pass). The plus side is we can stay in a 1 or 2 bedroom if we want to save money and make some of our own meals and a quick taxi ride to Winn Dixie grocery store.
All in all I am pretty happy with DVC, but they could throw a few more perks our way, knowing that we likely will be visiting at least once a year for the next 30 something years.

 

[jakeman]

I didn't say that. However, the majority of people are all or nothing when it comes to DVC. Both owners and non-owners.

And no one has to tell me DVC doesn't work for everyone. I think I was able to figure that out on my own.

Is that a promise there will be no more DVC themed threads from you?