Why Doesn’t Disney Build Value or Moderate Resorts Anymore?

[JJZMgailey]

It has been over 12 years since Walt Disney World opened Disney’s Art of Animation Resort and more than 21 years since the debut of Disney’s Pop Century Resort. In many ways, Pop Century was the last true value resort Disney built. While Art of Animation is technically classified as a value resort, the vast majority of its rooms are family suites—accommodating more guests but at prices that rival those of deluxe resorts. With rates typically ranging between $400 and $700 per night, it hardly fits the budget-friendly category many associate with the term “value.”

Read the rest of this great article over on the DIS and weigh in with your thoughts!

https://www.wdwinfo.com/walt-disney-world/why-doesnt-disney-build-value-or-moderate-resorts-anymore/

 

[matt and beth]

Because they can build a DVC property and make $1 trillion

 

[thanxfornoticin]

And even Art of Animation was the continuation/completion of phase 2 of Pop Century. The shell of the structure was already in place and sat empty for awhile. So it seems even longer than that since a new moderate.

I expect most of it has to do with the success of DVC. They've actually gone the other direction is a way, taking an area of 'moderate' CBR to build Riviera, for example. Plus the days of $99 per night value rooms are long gone, aren't they? What's value now, $250 per night?

 

[Gabby01]

My guess is that it's about the money. It can't cost Disney that much more money to maintain a Deluxe resort than a Value resort (at some point a room is a room), which means that the Deluxe resort, which is much more expensive to stay at, is more profitable for them.

In that case, why build Values to begin with? Because people who are unwilling or unable to pay Deluxe prices would otherwise stay offsite, in which case Disney gets nothing.

However, there are many guests who could stay at a Deluxe if they wanted to, but might choose to stay at a Value instead if they think it's a better value for their money. Disney wants to encourage those people to choose Deluxe (more profitable), hence the limited Value options.

Again, just my speculation!

 

[OKW Lover]

I'd guess that they see the market already satisfied with the current offerings.

 

[SL6827]

I believe that Early Entry will eventually go the way of Extended Evening hours at night for Deluxe hotel guest because the Deluxe category/DVC will be all that Disney will build going forward.

 

[DizneyFamof4]

These 2 lines say it all and I totally agree with this statement.
"Disney has pivoted away from targeting middle-class families in favor of attracting higher-spending guests. The focus is on maximizing per-guest revenue, and that means prioritizing deluxe resorts and experiences with premium price tags."

 

[SL6827]

These 2 lines say it all and I totally agree with this statement.
"Disney has pivoted away from targeting middle-class families in favor of attracting higher-spending guests. The focus is on maximizing per-guest revenue, and that means prioritizing deluxe resorts and experiences with premium price tags."

Yep!

 

[Anthony1971]

Disney learned in the earlier 2000s and again during Covid just how important DVC is….. Even said by Disney during the 2000s…. We own for over 20 years and some still think (and will continue to) it’s an exclusive club. It’s a timeshare period. With that use or lose your points and the money paid for dues and maybe even your buy in if it gets to that point…. You agreed to pay dues you are on the hook go during good times…. Great… not a working ride in the parks and no one wants to go… bad economy…. Fill in the blank… here is your dues bill I hope you enjoy your stay.
Building more value or moderate will just make Disney discount… enough to attract an offsite person, I doubt it as offsite has to sell for less or they will have no guests. Could Disney put a lot of offsite out of business, yes, but what about the one Disney park only in the middle of a universal or sea world or? People.
When one sees no discounts and 95% capacity all year Disney will build more. Not sure this what 98% want to see. I will give 2% maybe more to those who book at whatever and don’t look back I have met them and great for them BTW everyone should have a little bit of this.

 

[summerlvr]

And even Art of Animation was the continuation/completion of phase 2 of Pop Century. The shell of the structure was already in place and sat empty for awhile. So it seems even longer than that since a new moderate.

I expect most of it has to do with the success of DVC. They've actually gone the other direction is a way, taking an area of 'moderate' CBR to build Riviera, for example. Plus the days of $99 per night value rooms are long gone, aren't they? What's value now, $250 per night?

I paid $87/night (Passholder rate) at All Star Sports last month, so deals are still out there.

 

[DL1WDW2]

Brilliant decision to convert the areas that guests prefer to not have their “ room “ and then convert area to DVC …to share Costs
Makes you wonder why stock has fallen below $100.

 

[Pyxie]

And even Art of Animation was the continuation/completion of phase 2 of Pop Century. The shell of the structure was already in place and sat empty for awhile. So it seems even longer than that since a new moderate.

I expect most of it has to do with the success of DVC. They've actually gone the other direction is a way, taking an area of 'moderate' CBR to build Riviera, for example. Plus the days of $99 per night value rooms are long gone, aren't they? What's value now, $250 per night?

You can often get the All Stars for around $150 per night (even less with certain discounts) and Pop often ranges between $150-$200 per night. Not $99, but definitely not $250 either.

 

[thanxfornoticin]

Shows how long it's been since we've stayed there. I just know I've seen folks talking about AS resorts in the $200s - possibly those are last-minute, most expensive situations. Thx

 

[baggs32]

No one will ever know for sure but here's my two cents. Moderate and value resorts are absolutely gigantic and you can always find a room in one of them. Therefore why would they build more when they can't even fill the ones they already have? DVC is a different animal and should not be grouped with any other category in this context because they are money printing machines for Disney and the more they build the more points people will buy just to stay in that shiny new building. Until that behavior slows or stops, expect more DVC buildings to pop up everywhere.

The last non-DVC deluxe to be built was what, AKL in the late 90s right? If they can't fill the deluxe resorts either then again, they have no reason to build more and as long as they keep updating them frequently I see no issue with not adding any more to the portfolio. I will avoid staying in a deluxe villa at all costs and fortunately I've never had an issue finding a room I want in a deluxe any time of the year. Hence my theory.

They can build all the DVC villas they want for all I care. If only building those recently is a concern to anyone then go ahead and buy your points and join the "fun". That means more room in the non-DVC resorts for the rest of us!

 

[Jnaquin4]

It all comes down to what makes the most profit. That's the name of the game in business.

 

[SteveH]

It's not about the Magic it's all about the Money.

 

[Dave006]

Why Doesn’t Disney Build Value or Moderate Resorts Anymore?

Simple, Disney does not feel that they need increased capacity in the Value or Moderate range. If and when they need capacity then maybe they will add additional capacity.

The Deluxe resorts have long experienced issues filling rooms to the capacity that Disney needed to keep them profitable and that's why the WL, AKL, and even the Polynesian converted portions of the resorts to DVC. Even BLT was built at the CR resort and replaced the North Garden wing. The Villas at the Grand Floridian started and new add on building and then added converted exiting building to DVC units.

The recent expansion of the Polynesian resort with the Island tower, the Tower was added to the existing Poly DVC. The new Lakeshore Lodge (formally Reflections) will be part of the Cabins at Ft. Wilderness DVC.

Only the Rivera is a "new" DVC only resort sort of since it was build on a section of moderate CBR space.

Dave

 

[OKW Lover]

It all comes down to what makes the most profit. That's the name of the game in business.

That's certainly accurate. But the measure of that is a bit more nuanced as they consider adding capacity in value/moderate resorts and the potential for increased attendance and theme park spending.

Simple, Disney does not feel that they need increased capacity in the Value or Moderate range. If and when they need capacity then maybe they will add additional capacity.

This! I have no doubt that they carefully track availability at each resort at each level. They know what is the most popular and what they need.

 

[SL6827]

Simple, Disney does not feel that they need increased capacity in the Value or Moderate range. If and when they need capacity then maybe they will add additional capacity.

The Deluxe resorts have long experienced issues filling rooms to the capacity that Disney needed to keep them profitable and that's why the WL, AKL, and even the Polynesian converted portions of the resorts to DVC. Even BLT was built at the CR resort and replaced the North Garden wing. The Villas at the Grand Floridian started and new add on building and then added converted exiting building to DVC units.

The recent expansion of the Polynesian resort with the Island tower, the Tower was added to the existing Poly DVC. The new Lakeshore Lodge (formally Reflections) will be part of the Cabins at Ft. Wilderness DVC.

Only the Rivera is a "new" DVC only resort sort of since it was build on a section of moderate CBR space.

Dave

There is even talk about the possibility that Disney might convert more rooms at AKL to DVC at some point. They must be having trouble filling those rooms at sky high pricing.

 

[SL6827]

With rack rates being artificially inflated to sky high prices now, Disney's 30-35% discounts at Deluxe resorts won't cut the cheese no longer. A sale price of $500-$600 is a joke.