Member Services Furloughs/Layoffs

[kmorlock]

It will be interesting to see how this plays out...I would love the chance to try out another non DVC accommodation like Poly suites or the Ft. Wilderness cabins.

 

[Sandisw]

I mentioned this 20 days ago, but had it spread over two different threads., so I will consolidate it here.
I think the various divisions of TWDC will work this out if it benefits the corporate bottom line. Potentially, TWDC could increase profit if the resorts division gave rooms that would otherwise be vacant to DVC, since the people occupying those otherwise vacant rooms would spend a additional money on-property




Before someone criticizes this as violating GAPP accounting, there is no requirement in GAAP that intercompany transfers have to be at fair market value. The only requirement is that if segmented information is disclosed, the intercompany transfers between those segments has to be disclosed. Every CPA who graduated in the last 50 years took a managerial accounting course where transfer pricing was discussed, and those CPA's were taught that one solution is the one I described above. (They would all be taught something that violates GAAP).
Another less recommended solution is for upper management to require the selling division to sell at a specified internal price, even if that would lower the selling divisions internally reported profit, since the buying division would have an increase in internally reported profit that was greater, so the overall company bottom line would improve.

Correct. They could decide that. But they could just as easily decide to put put much bigger room discounts to bring guests in that spend that same money....in fact, maybe more.

The only difference that I see that might give DVC members the edge is they may visit without parks being open.

 

[dismedvc]

Correct. They could decide that. But they could just as easily decide to put put much bigger room discounts to bring guests in that spend that same money....in fact, maybe more.

The only difference that I see that might give DVC members the edge is they may visit without parks being open.

You are also correct, and there is a lot we do not know. Only Disney knows, or can estimate, what demand will be for cash rooms at various price levels, especially if the parks and resorts are not fully open. If the room discounts are large enough, DVC members who had points expire, or wanted to save their points, might even consider booking those discounted rooms for cash.

One thing I think Disney might be concerned about (to expand upon your reason why they "might give DVC members the edge") is if by offering bigger room discounts Disney attracts a lot of first time visitors, or visitors who have not been to WDW in years, but then provides those visitors with a "watered down" experience, those visitors might not return. Another category of visitors Disney might not want to attract by offering bigger room discounts, are visitors who were planning to visit sometime in the next few years at regular prices. By offering them deeply discounted rooms now, Disney may be forgoing a regular price visit in the near future. DVC members will be returning regardless, and DVC members also know what the full experience has been and hopefully will be again.

 

[Sandisw]

You are also correct, and there is a lot we do not know. Only Disney knows, or can estimate, what demand will be for cash rooms at various price levels, especially if the parks and resorts are not fully open. If the room discounts are large enough, DVC members who had points expire, or wanted to save their points, might even consider booking those discounted rooms for cash.

One thing I think Disney might be concerned about (to expand upon your reason why they "might give DVC members the edge") is if by offering bigger room discounts Disney attracts a lot of first time visitors, or visitors who have not been to WDW in years, but then provides those visitors with a "watered down" experience, those visitors might not return. DVC members will be returning regardless, and DVC members also know what the full experience has been and hopefully will be again.

Yeah, Personally, I do not see this happening. The point charts for Disney collection are high and I just don’t see them not only giving rooms for free but also agreeing to give more rooms based on a lowering of points,

However, I could see Disney agreeing to letting DVC members get a rooms at a substantial discount...ie:$150/ night for deluxe stays, etc,

But, I really believe the solution will involve only points options and things within our system that don’t require Disney to agree to give up potential revenue. if you read the other threads here on the DIS, plenty of cash guests ready to go as soon as they can. Many who go regularly.

But, we shall see.