# This is why Disney is so expensive



## TravelTime (Nov 8, 2018)

After our recent stay at Aulani with Disney Vacation Club points, we received this in the mail...


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## Dean (Nov 8, 2018)

That's small potatoes.  The single night reservation option, high profit expectations on their side, transportation and union are much larger factor of many.


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## pedro47 (Nov 9, 2018)

Those items costs Disney .000001 to produce from China.


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## TravelTime (Nov 9, 2018)

This package probably costs a couple dollars. Remember it is not just production...there’s a lot that goes into designing these beautiful pieces and there’s also postage. But this is the least of what they send me. I get mail from Disney everytime I make a reservation and cancel it, which is all the time. Even if production is cheap, the postage adds us. No one else sends me so much beautiful mail.

My point is not the mail. That alone is not what makes Disney expensive. It is the total branding and the way Disney handles every aspect of their product. Marketing and direct mail is just one aspect that I used as an example. Every touchpoint with Disney is flawlessly executed compared to other companies. I do not get thank you cards from Westin or Marriott after vacationing with them. I am lucky if they even credit my account correctly with what I deserve.

BTW, I personally get a warm and fuzzy feeling from the Disney mail, even while I realize how wasteful it is. I especially love the artwork they send me sometimes.


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## rickandcindy23 (Nov 9, 2018)

You are correct that everything Disney does has a special touch.  I also get a smile on face with Disney mail, except when the DVC bill arrives.  

Rick and I both love Disney because we are of that era, the Wonderful World of Disney era, with Walt Disney himself, we always wanted to go as kids.  We were born in 1955, the year Disneyland opened.  

We didn't go until we were 21.  Our parents could never afford trips like that.  We didn't have kids yet, and we already bought a house and two cars.  We could afford to go, and so we did.  We drove, and we stayed at a very moderate hotel on Katella.  

This was one promise we made to ourselves, that our kids would know Disneyland and Disney World, and Rick was always the one who arranged the trips.  Then around 1996, I started doing all of the planning.


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## Iggyearl (Nov 9, 2018)

TravelTime said:


> I get mail from Disney everytime I make a reservation and cancel it, which is all the time.



Maybe this type of behavior is causing Disney to incur unexpected costs?


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## bnoble (Nov 9, 2018)

It's important to remember that Disney is a company that makes money by selling happiness. They also deliberately position themselves as a mass-market brand that is nevertheless aspirational. That's a difficult trick, but they've pulled it off.

So, if their fees are marginally higher because they send pretty postcards, that's all part of the business model. But, these things increase costs _marginally_, and they are no more expensive than other name-market brands that I've seen.


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## TravelTime (Nov 9, 2018)

rickandcindy23 said:


> You are correct that everything Disney does has a special touch.  I also get a smile on face with Disney mail, except when the DVC bill arrives.
> 
> Rick and I both love Disney because we are of that era, the Wonderful World of Disney era, with Walt Disney himself, we always wanted to go as kids.  We were born in 1955, the year Disneyland opened.
> 
> ...



Awe...what a sweet story!


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## TravelTime (Nov 9, 2018)

bnoble said:


> It's important to remember that Disney is a company that makes money by selling happiness. They also deliberately position themselves as a mass-market brand that is nevertheless aspirational. That's a difficult trick, but they've pulled it off.
> 
> So, if their fees are marginally higher because they send pretty postcards, that's all part of the business model. But, these things increase costs _marginally_, and they are no more expensive than other name-market brands that I've seen.



In the timeshare world, Disney’s cost is astronomically higher but it’s worth it. DVC is the only timeshare that actually goes up in value.


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## vacationhopeful (Nov 9, 2018)

... ..


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## bnoble (Nov 9, 2018)

For now.


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## mj2vacation (Nov 9, 2018)

Mere pennies in cost, but with the guest retention that Disney has, it’s priceless!


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## TravelTime (Nov 9, 2018)

I am glad no one here cares about “pennies” in marketing costs. Folks in the other timeshare threads are up in arms about 6 sales offices at Westin. I thought that was silly and I am an owner there too.


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## Cyberc (Nov 16, 2018)

I guess one of the reasons why Disney send these post cards packages is first of all they are selling Aulani and have a hard time doing it. A big if not the biggest part of the developer cost when selling timeshares is marketing. 

When sending out 500 post card packages at a cost of $1,000 if only 0.125% is buying points to stay there then it’s still worth Disney time and money. 

You have to spend money to make money.......


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## JohnB3 (Nov 19, 2018)

IDK about only stays where they are actively selling, I've gotten postcards after an AK stay as well as Aulani and the Disney Cruise, my daughters love to get the mail after a trip


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## TravelTime (Nov 19, 2018)

JohnB3 said:


> IDK about only stays where they are actively selling, I've gotten postcards after an AK stay as well as Aulani and the Disney Cruise, my daughters love to get the mail after a trip



I agree. I think it is customer retention and the warm and fuzzy feeling. Even though I started this thread, I must admit I enjoyed getting this package from Disney. I like cutesy mail especially when it is beautifully designed. I do not think the photos I posted did this package justice by the comments I got regarding cost estimates of .00000001 or made in China.


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## JohnB3 (Nov 20, 2018)

Agree we were at Aulani in August and got that piece as well it is well done


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## DannyTS (Nov 20, 2018)

i am not trying to be negative but a lot of these envelopes end up in drawers/boxes where they retire. A waste of paper IMO.


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## TravelTime (Nov 20, 2018)

DannyTS said:


> i am not trying to be negative but a lot of these envelopes end up in drawers/boxes where they retire. A waste of paper IMO.



You are right. That is why Disney is so expensive! That was the premise of my thread. They send out so much unnecessary mail to create a warm and fuzzy feeling. Like I said, sometimes they even send me artwork. Everytime I make and cancel a reservation, I still get a 10 page color booklet with my itinerary. The amount of beautiful mail I get from Disney every year is a lot. If any other timeshare wasted this much money on mail and had a separate line item in their budget, everyone on TUG would be up in arms. Disney probably hides it in a corporate budget somewhere but it probably does somehow get charged back to timeshare owners. I should read my association documents this year and look at the marketing budget. Disney is having 6%-10% MF increases this year. Frankly, I am not super cost sensitive and I am not the type to micromanage a successful corporation in how they do business. This is just food for thought.


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## bbodb1 (Nov 20, 2018)

FWIW: I know this thread is more on the DVC point of view, but everything Disney touches is far too expensive.  Look at the cost of tickets to WDW
https://www.travelandleisure.com/trip-ideas/disney-vacations/disney-world-ticket-costs-over-time


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## TravelTime (Nov 20, 2018)

bbodb1 said:


> FWIW: I know this thread is more on the DVC point of view, but everything Disney touches is far too expensive.  Look at the cost of tickets to WDW
> https://www.travelandleisure.com/trip-ideas/disney-vacations/disney-world-ticket-costs-over-time



It is demand driven. If people stop going, prices will drop. Start a Facebook and Twitter campaign to bad mouth Disney so people will not go, then ticket prices will drop. Otherwise, if you think it is too expensive, vote with your feet.

I agree that Disney is completed overpriced. It is a unique magical experience that for some uncanny reason, people are willing to pay a lot for. Those cute characters touch peoples hearts unlike any others.

The other thing to keep in mind is that you are comparing when WDW first opened and had virtually no real following to now that it is one of the most valuable brands in the world and the demand is off the charts. It makes sense that ticket prices would go up by an exponential amount in 50 years for a sensationally successful experience. If you compare a daily ticket at WDW to a daily ski pass, a ticket to a concert or a major sporting event ticket, WDW no longer seems completely out of line actually.

I am not trying to defend Disney but just bring some perspective to this.


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## Panina (Nov 20, 2018)

DVC has consistently found the sweet spot.  Their timeshares are highly desirable and at retail they have been a better buy then most other timeshares as they have resale value.

For me at my age the numbers do not make sense. If I was 20 years younger in my 30’s I would possibly get a week as I am a big Disney fan.  

Now if they keep going up they might surpass that sweet spot but as in other systems there are always buyers that pay the retail price with no questions asked.  

And my guess is these buyers love any freebie they get in the mail from them.


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## bbodb1 (Nov 20, 2018)

TravelTime said:


> It is demand driven. If people stop going, prices will drop. .. I am not trying to defend Disney but just bring some perspective to this.



I hear you, TravelTime - your point is spot on.  We went to WDW once when our kids were young and have not been back since.  In part because of the cost but also in part that Universal attractions were much more popular with our kids. I know Disney has tried to modernize and keep pace with Universal for the early teen years age group but in doing so have raised prices so much that I think they have list a significant number of people to future visits.  I still think everyone goes once, but the number of repeat visits from those out of state is likely to drop until ticket prices decline.  At least that's my opinion.  Obviously, Disney is not filing for Chapter 7, 13 or any other related type of protection yet.


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## bbodb1 (Nov 20, 2018)

Panina said:


> DVC has consistently found the sweet spot.  Their timeshares are highly desirable and at retail they have been a better buy then most other timeshares as they have resale value.
> 
> For me at my age the numbers do not make sense. If I was 20 years younger in my 30’s I would possibly get a week as I am a big Disney fan.
> 
> ...



Panina,
What does a resale week cost these days in DVC?  Just a rough guess if you would please.


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## TravelTime (Nov 20, 2018)

bbodb1 said:


> Panina,
> What does a resale week cost these days in DVC?  Just a rough guess if you would please.



Resale costs are easily found at https://www.dvcresalemarket.com/.


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## TravelTime (Nov 20, 2018)

We bought into DVC for some kids we were planning to adopt. It fell through at the last minute. I was thinking of selling our points but for some odd reason, I have not yet. So my DH and I have been visiting. We went to WDW last summer and stayed at AK, BW and Poly. Then we went to Aulani. In the Spring, we are going to BLT, AK and VGF. We are in our 50s. Never in a million years would I imagine I would be going to Disney. I have been to Hawaii 8 times. I have traveled all over the world to amazing upscale places. Yet I am loving Disney. The customer service and theming are really high quality. I actually like Aulani better than anywhere I have stayed in Hawaii and that is saying a lot since we have stayed at places like Grand Wailea and Fairmont Orchid. Aulani is the most Hawaiian resort I have stayed at in the islands of Hawaii. Disney knows how to create an “authentic” experience that the Hawaii resorts do not know how to do.


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## Panina (Nov 20, 2018)

bbodb1 said:


> Panina,
> What does a resale week cost these days in DVC?  Just a rough guess if you would please.


Last time I looked $95 to $160 for each point in Orlando depending on which resort, that was a few months back.  For example if you wanted a standard one bedroom in Saratoga for a week that would cost you between  164-304 points based on the week.


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## TravelTime (Nov 20, 2018)

Panina said:


> Last time I looked $95 to $160 for each point in Orlando depending on which resort, that was a few months back.  For example if you wanted a standard one bedroom in Saratoga for a week that would cost you between  164-304 points based on the week.



Panina is reporting the buy in cost. MFs for 2019 at WDW/Orlando are about $7 a point on average. 2019 MFs are here: https://www.dvc resale market.com/blog/proposed-2019-disney-vacation-club-annual-dues/ so you can compute the cost to stay for a week in a villa depending on the size unit you rent.

Keep in mind that DVC is one of the few timeshares where you may breakeven or possibly even get an increase on your buy in costs. That is why I am not so concerned about how much I paid, other than the opportunity cost of money.


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## Cyberc (Nov 21, 2018)

bbodb1 said:


> Panina,
> What does a resale week cost these days in DVC?  Just a rough guess if you would please.



Disney dont sell weeks (except for the few fixed they have sold) they mainly sell points and then you go book whatever type of room and view you want. You would also pay your annual dues according to the number of points you have.


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