How much do you think the blue card perks cost DVD?

Maistre Gracey

DIS Veteran
Joined
Apr 23, 2002
Just curious.... I’m guessing the only expenses are the Moonlight Magic events, and that may be significant.
I just can’t see where they actually pay for the gold pass benefit. I say that because there isn’t a department paying for the Florida resident pass benefits.
Possibly something toward food and merchandise, but that’s questionable as well.

Thoughts?
 

Sandisw

Moderator
Moderator
Joined
Nov 15, 2008
I am not sure but my understanding (and of course, could be wrong) is that the Gold Pass is a deal that was done with the Ticketing department of Disney (like any of the Florida resident passes), so I don't think DVD "pays" for the discount. It is just something that was negotiated as a deal for DVC members.
 

NoTime42

Mouseketeer
Joined
May 28, 2019
Midnight Magic and the Epcot DVC lounge would be real costs, but seem to be paid by marketing.

It will be interesting to see what happens with ticket prices in the future. It seems WDW didn’t like guests buying an AP for 1 trip, just for discounts (removed the child pricing, and now the current AP price.)
 
  • Chuck S

    DVC Co-Moderator
    Moderator
    Joined
    Feb 6, 2000
    I'm wondering if DIsney Parks charge DVC/DVD anything for the privilege of park ticket discounts. I doubt they need to pay for the merch and dining discounts perks, as it can be looked at as a way of boosting sales at those locations.
     

    crisi

    DIS Veteran
    Joined
    Feb 25, 2002
    I'm wondering if DIsney Parks charge DVC/DVD anything for the privilege of park ticket discounts. I doubt they need to pay for the merch and dining discounts perks, as it can be looked at as a way of boosting sales at those locations.
    My bet is that they do pay for - out of the marketing budget - the park ticket discounts. Disney runs every division on a separate P&L, and each executive is rewarded based off their P&L as well as company performance as a whole. There is negative incentive for me - the Parks President - to give your - the DVC/DVD President - members a discount - that makes it much harder for me to reach my own numbers and get my bonus. And it isn't like I can't count on that ticket revenue without the discount - you need it to drive direct sales while I'm fairly assured that most DVC members will buy tickets with or without the discount.
     

    Maistre Gracey

    DIS Veteran
    Joined
    Apr 23, 2002
    My bet is that they do pay for - out of the marketing budget - the park ticket discounts. Disney runs every division on a separate P&L, and each executive is rewarded based off their P&L as well as company performance as a whole. There is negative incentive for me - the Parks President - to give your - the DVC/DVD President - members a discount - that makes it much harder for me to reach my own numbers and get my bonus. And it isn't like I can't count on that ticket revenue without the discount - you need it to drive direct sales while I'm fairly assured that most DVC members will buy tickets with or without the discount.
    If that’s the case, what budget does Florida resident discounts come from?
     

    Chuck S

    DVC Co-Moderator
    Moderator
    Joined
    Feb 6, 2000
    If that’s the case, what budget does Florida resident discounts come from?
    Different circumstances, in lean times Disney depends on locals, they can decide to come to the parks or not. DVC on the other hand, can in some respects, be viewed as a captive audience. And as the park admission discounts applies ONLY to direct or grandfathered members, it is quite possible marketing is paying something for it, else it would apply to all members.
     

    RescueRanger

    Recovering Fastpass Superuser
    Joined
    Apr 3, 2003
    My bet is that they do pay for - out of the marketing budget - the park ticket discounts. Disney runs every division on a separate P&L, and each executive is rewarded based off their P&L as well as company performance as a whole. There is negative incentive for me - the Parks President - to give your - the DVC/DVD President - members a discount - that makes it much harder for me to reach my own numbers and get my bonus. And it isn't like I can't count on that ticket revenue without the discount - you need it to drive direct sales while I'm fairly assured that most DVC members will buy tickets with or without the discount.
    .
    The incentive is more people in the parks buying tickets. I hear this quite a bit on the boards, "Why should they give us anything because they already have our money?" The reason is this isn't targeting current members. It is used as an incentive for new sales. They can tell the prospective buyers that you get a discount on passes if you buy direct. If DVC can't sell out new resorts, that means less people going to the parks.
     

    crisi

    DIS Veteran
    Joined
    Feb 25, 2002
    .
    The incentive is more people in the parks buying tickets. I hear this quite a bit on the boards, "Why should they give us anything because they already have our money?" The reason is this isn't targeting current members. It is used as an incentive for new sales. They can tell the prospective buyers that you get a discount on passes if you buy direct. If DVC can't sell out new resorts, that means less people going to the parks.
    Right - and new sales are the DVD P&L, not the parks P&L. So my bet is DVD is compensating Parks for the discount.

    Florida resident discounts are a deal Parks cut with the state of Florida when the parks were built in exchange for some favorable zoning and tax deals. I mean the state functionally created Lake Buena Vista and Reedy Creek for Disney - in exchange Florida residents get some sweet deals.
     

    RescueRanger

    Recovering Fastpass Superuser
    Joined
    Apr 3, 2003
    Right - and new sales are the DVD P&L, not the parks P&L. So my bet is DVD is compensating Parks for the discount.

    Florida resident discounts are a deal Parks cut with the state of Florida when the parks were built in exchange for some favorable zoning and tax deals. I mean the state functionally created Lake Buena Vista and Reedy Creek for Disney - in exchange Florida residents get some sweet deals.
    You’re missing the point. The more rooms that are sold, the more tickets that are bought. So, parks does benefit from DVC sales. If rooms sit empty, parks is not making any money off of it.
     

    Brianstl

    Mouseketeer
    Joined
    Sep 8, 2019
    You’re missing the point. The more rooms that are sold, the more tickets that are bought. So, parks does benefit from DVC sales. If rooms sit empty, parks is not making any money off of it.
    Plus, the parks and DVD all fall under the Parks, Experiences and Products division umbrella.
     

    crisi

    DIS Veteran
    Joined
    Feb 25, 2002
    I was pretty sure DVD was a separate division. They have different executives at a President level. But discounts don't increase the numbers of bodies in parks significantly when it comes to DVC members. We are already a committed audience. The more rooms sold, the more tickets bought is not this years P&L, and P&L planning is VERY short term. (One of the issues with corporate America is its short term emphasis on the balance sheet).
     

    TiggerBouncy

    DIS Veteran
    Joined
    Mar 4, 2013
    My bet is that they do pay for - out of the marketing budget - the park ticket discounts. Disney runs every division on a separate P&L, and each executive is rewarded based off their P&L as well as company performance as a whole. There is negative incentive for me - the Parks President - to give your - the DVC/DVD President - members a discount - that makes it much harder for me to reach my own numbers and get my bonus. And it isn't like I can't count on that ticket revenue without the discount - you need it to drive direct sales while I'm fairly assured that most DVC members will buy tickets with or without the discount.
    I am more than happy to take resort only days if the part tickets are expensive enough. When they are cheap enough I may even pay for - and not use - all of my days just in case I might want to go to the park
     

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