If you’ve been to Disney World in the last decade, you’ve probably noticed a trend in their new hotel offerings.
From the Riviera Resort to the upcoming Island Tower at Polynesian Village Resort, Disney seems to be laser-focused on building Disney Vacation Club (DVC) resorts. But is that the right decision? Well, it appears that the signs are pointing to the fact that Disney World is building the wrong hotels.
As we were saying, Disney seems to be all-in when it come to only building DVC resorts. But here’s the kicker — according to their own Q4 report, DVC sales are down. So why is Disney doubling down on DVC resorts when the numbers suggest a different strategy might be needed?
Alright, let’s dig into the details.
DVC Is NOT the Problem…Or Is It?
When one of our team members recently chatted with a Cast Member about purchasing DVC, they noticed something odd. The Cast Member wasn’t hyping up the shiny, new resorts. Instead, they were promoting older, classic DVC properties like Saratoga Springs and Old Key West.
Now that makes us wonder: Is the issue really that DVC demand is low, or is it that Disney is creating resorts that don’t match what their audience actually wants?
Are DVC Resorts Too Niche?
DVC resorts are undeniably gorgeous, but let’s be real. They’re not for everyone. They cater to a specific demographic: the travelers who visit Disney regularly, can afford the upfront cost (plus annual dues), and are committed to vacationing at Disney for years to come.
Meanwhile, there’s a whole segment of Disney fans like younger families, singles, or budget-conscious travelers who are craving affordable yet immersive experiences. When was the last time Disney built a moderate or value resort?
What Disney Should Be Doing
Instead of catering to this broader audience, Disney keeps investing in DVC properties, which might be alienating a chunk of their fan base. If they asked us, they might want to consider:
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- More Unique Themes: Look, as we said, the DVC resorts are beautiful, but they are starting to feel a little same-y? They could definitely use some energy when it comes to the theming.
- Budget-Friendly Options: Why not create a value resort that brings the magic without breaking the bank? The demand for affordable, Disney-themed stays is still high. You can see it by how often places like the All-Star Resorts sell out.
- Balance DVC with Traditional Resorts: I can understand that in Disney’s mind, DVC generates long-term revenue, but they can’t forget about their other more casual guests who fill park attendance numbers, buy food, and would splurge on a resort stay if it was within their price range.
The Bottom Line
At the end of the day, it feels like Disney is in a weird spot right now. With DVC sales dropping, doubling down on new DVC resorts feels like a potentially risky move, which begs the question, why not diversify? Instead of putting all their eggs in the DVC basket, they could be building resorts that cater to a wider range of guests.
In the meantime, keep it right here at AllEars and we’l keep you updated on all the latest Disney news!
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What kinds of hotel do you think Disney World should be building? Let us know in the comments!
Dollars and Cents/Supply and Demand – how does Disney manage crowds so that the park experience is enjoyable without reducing the “at capacity” volume level or requiring reservations? A lot of the articles and buzz are about unacceptably long lines for rides, meal reservations being unavailable because they fill up so quickly, etc., all leading to complaints that it is hard to enjoy the park experience due to crowds. We’ve already seen that it is just about impossible to go to the parks and be spontaneous due to crowd size. Thus, Disney doesn’t need to build more value or moderate resorts to attract more guests. Building higher priced hotels and increasing ticket prices will give Disney them the same financial return while attracting fewer people. Thus it is a way to limit crowds without surrendering revenue and profit. While it makes the parks more enjoyable for those who can afford the trip it means that Disney has become akin to a luxury item available only to the few. Unless they build new parks to increase capacity and spread out the crowds, prices will have to increase and they will have to focus on those willing or able to pay more for the overall experience.
Even though I’m a DVC member, I’m all for lower-priced and moderate resorts. The new ones are way too fancy. I absolutely love the theming of the Pop resorts and Art of Animation. To me, that’s what Disney is. Even as an adult, I want to see bright colors and fun bold designs. I want Disney animation obvious around the hotel, not hidden in portraits. That’s what kids remember too.