Computer Magic
Well-Known Member
I wonder when Disney will implement a policy to stop people from renting their points.I'm replying to your post here because you bring up some interesting points about DVC but I'm going to have to veer completely off the topic of the other thread ("FP+ only Toy Story Midway Mania") in order to discuss them, which I am glad to discuss on this thread, which is about DVC.
I respectfully suggest you look at DVC from a cash flow perspective. Look at it from Disney's perspective.
To Disney, it does not matter what someone paid for a DVC membership back in (for example) 2008. That money is gone. Disney spent that cash long ago; for construction & maintenance, to pay Cast Members, for executive bonuses, as stock dividends, or as stock repurchases. (This year alone, Disney spent over $6 billion buying back its own stock.) Those managing WDW in 2014 don't give a hoot about cash flow in 2008.
They care about cash flow in 2014.
In 2014, someone who is a DVC member at Bay Lake Tower (BLT) paid $4.78/point in Maintenance Fees (MF).
In the summer of 2014, it took 139 points to rent a Bay Lake Tower standard view Studio. Someone who is a DVC member at BLT paid $94.92/night in 2014 to stay within walking distance of the Magic Kingdom.
Disney was counting on that family to buy theme park tickets, dine at WDW restaurants, and purchase WDW souvenirs.
However, after visiting WDW for 6 years and seeing how little has changed at the theme parks, they've become bored. Ticket prices are up an average of 25% since 2008 and, frankly, they just don't see the value anymore.
Meanwhile, Universal has been adding a ton of attractions since 2008. A 4-day Uni ticket costs $156 while a 4-day WDW ticket costs $294. Why not give Uni a try?
If that DVC member decides they want to skip Orlando this year, then they rent their DVC points through David's DVC Rentals and make a tidy profit. David's is just begging DVC members for points. David's rents these out at $14/point, meaning a non-DVC member can either pay Disney's $583/night rack rate to stay in a Tower Room at the Contemporary, or pay David's $278/night to stay at Bay Lake Tower.
And you wonder why David's is begging for more points to rent.
Rather than pay WDW $4081 for a week's stay at the Contemporary, that same family pays David's $1946.
Disney's cut of this? The exact same $664 they would have gotten from that DVC member, had that DVC member even bothered to visit WDW.
Disney just lost $3417 ($4081 - $664) in revenue (which happens to be almost pure profit, by the way) because of that DVC member who supposedly is "locked in".
That's the problem Disney is facing today.
These DVC members most definitely are not "locked in".
And Disney most definitely has a problem.
Disney is offering that DVC member a $199 4-day ticket this year not only to get that DVC member back into the theme parks, but to stop them from renting out their points and costing Disney $3417.
Funny, I was just now looking at the inflated 30% room rate discount thought, and said I wonder if I could just rent points.