jade1
I spend half my money on WDW, and waste the rest.
- Joined
- Dec 30, 2001
To decrease risk profile. Why hold the risk of empty hotel rooms during an economic downturn if you can get someone to take that risk for you with an extremely Disney friendly contract? The margins maybe lower, but you are offloading a tremendous amount of economic risk. In addition, while it is almost impossible for someone to compete with Disney's theme parks, it is much easier to compete in the market of Orlando hotel rooms.
You know my drum beat on this, Disney sold DVC to the regulars that previously filled the deluxe rooms. Now they have to convert deluxe rooms to DVC to reduce deluxe inventory. Which in turn further shrinks the deluxe customer pool.
Very wise and accurate depiction. This is exactly what has been going on down there.
WDW has the guests (DVC owners) building, converting and maintaining the resorts-as well as keeping them full.
If WDW did not have the DVC program, they would be footing the bill for all hotel builds, additions, refurbishments and have to foot the bill for upkeep.
Then a down turn would be far much more impactful, as the rooms sit empty besides all the investment.