Recession Question

[AKNOTTS66]

I’d assume they have to let them fall at least temporarily.

do we think direct or resale? And when I say direct I mean more incentives?

 

[skippytx]

It will be interesting to see what happens in the next few months if DVD will allow prices to drop.

There is almost no chance they ROFR anything even close to reasonable in the near future. DIS is going to hurt short term, I like it long term, but weak summer movie releases, theme park profits will be way down this year, ESPN/ABC is going to underperform a ton due to decreased advertising revenue and cable subscriber losses. It's going to be a rough couple years, and I think ROFR will be slowed down a ton.

If I can grab another 160 BLT at 125 I'll jump on it in a heartbeat.

 

[MooseBucks]

do we think direct or resale? And when I say direct I mean more incentives?

I’m going to preface my statement with I’m horrible at picking stocks etc.

I’d assume they’re to let the resale price drop and reallocate the ROFR money into incentives for direct. Given the overall size of the Disney empire I’d guess they’ve been recession planning for some time and have some benchmarks for different incentives. I think some new DVC properties that may be in the works will be postponed but ready to go once the economy turns.

COVID-19 is a different beast for Disney than recent recession causes. If it isn’t contained and the fear keeps going it could cause a long term impact to Disney travel.

 

[mamaofsix]

Resale market aside, is there precedent for Disney ever dropping the direct price due to a downturn?

 

[skippytx]

Resale market aside, is there precedent for Disney ever dropping the direct price due to a downturn?

That won't happen. They'll offer incentives to lower the effective price, but I don't think they'll ever lower the list price.

 

[MooseBucks]

That won't happen. They'll offer incentives to lower the effective price, but I don't think they'll ever lower the list price.

Agree. I could see some larger incentives//Incentives on contracts for fewer points. I don't see the price being lowered though.

 

[KAT4DISNEY]

Resale market aside, is there precedent for Disney ever dropping the direct price due to a downturn?

I know of only one time a resort price was lowered during a pricing change and that was VB a few years ago. Large discounts happened during the 2008 recession.