Disney pricing the middle class out

[hcothren]

Our family looks at the trip being a luxury for our family...that we will not be able to afford to take but maybe 3 times before the kids leave for college.

 

[rkwier]

I would submit that, in reference solely to a park visit not including lodging, the "pricing out" is occurring in other theme parks as well. We live near a Six Flags theme park. For a one-day, Magic Your Way ticket at WDW, the price is $105. This price includes fast passes. A one-day ticket to Six Flags is $68.99, but does not include fast passes. For that option, you need to pay an additional fee of $40, $60 or $90. The $40 pass is worthless because you wait the same amount of time. The $90 obviously gives you the most benefit, but at a price. Whichever option you choose, the combined costs for a day at Six Flags for the same benefits exceeds those for a day at WDW. Add in the fact that Six Flags does not allow you to bring in your own food or drinks, including water, and that will also affect your costs. The majority of the dining areas at Six Flags also close around 5:00, which is a pain. The costs regarding dining are going to be unique to the needs of each family, but for us it is a factor.

 

[Planogirl]

I would submit that, in reference solely to a park visit not including lodging, the "pricing out" is occurring in other theme parks as well. We live near a Six Flags theme park. For a one-day, Magic Your Way ticket at WDW, the price is $105. This price includes fast passes. A one-day ticket to Six Flags is $68.99, but does not include fast passes. For that option, you need to pay an additional fee of $40, $60 or $90. The $40 pass is worthless because you wait the same amount of time. The $90 obviously gives you the most benefit, but at a price. Whichever option you choose, the combined costs for a day at Six Flags for the same benefits exceeds those for a day at WDW. Add in the fact that Six Flags does not allow you to bring in your own food or drinks, including water, and that will also affect your costs. The majority of the dining areas at Six Flags also close around 5:00, which is a pain. The costs regarding dining are going to be unique to the needs of each family, but for us it is a factor.

You can get a season's pass to Six Flags for little more than a one day pass though. It's a good deal - if only we liked Six Flags.

 

[rkwier]

You can get a season's pass to Six Flags for little more than a one day pass though. It's a good deal - if only we liked Six Flags.

Agreed, but I wanted to compare one day to one day. In my head, it was the closest "apples to apples" that I could come up with. We actually do have season passes to SF in Arlington since we can drive there (and I love the Texas Giant).

 

[lockedoutlogic]

That's a bad thing?

That's a serious question?

Are you familiar with the term "consumer"?

And honestly...your 22 shares aren't really a factor in this equation...no offense

 

[old lady]

They might have to chance their policy after China's busted market.

 

[minnie mum]

They might have to chance their policy after China's busted market.

Whaaaaat?????

 

[Josh Hendy]

Attendance is up, and at the same time prices are higher than ever for admission, food, hotels.

I'm baffled. Nearly everyone I know is deeply worried about stagnating salaries, under-performing investments, and severely rising costs of rent, food, tuition, property taxes, insurance, energy and so on.

I know a few oldsters with solid nest eggs (most of them thanks to gold plated government pensions) and they still do a lot of traveling ... cruises, safaris and so on. Once and a while they pop for a family vacation I suppose.

Other than that I can't think of who is going to Disney more and spending more. I'm thinking in terms of income polarization and the top 1% spending more at Disney. But the middle class? Soon they're going to be another scene in Spaceship Earth, a relic of the past. You could rip the last scene out of Carousel of Progress and plunk it down at the end of SE with the narration: "... and once for a brief time a large and optimistic middle class blossomed in the Western world, but were soon snuffed out in a catastrophe of inflation and debt ... " [cue smell of burning college diplomas]

 

[DDLand]

That's a serious question?

Are you familiar with the term "consumer"?

And honestly...your 22 shares aren't really a factor in this equation...no offense

I forgot I posted in this thread, well you finally responded.

I know what a consumer is.

In other news I'm unable to afford a fancy sports car, an Italian Villa, or to shop on 5th avenue.

Such is life.

 

[theyoungs07]

Whaaaaat?????

Businesses in the US have leveraged the Chinese economy continuing to boom...and it isn't exactly happening. This will hurt US businesses/workers as well as Disney as they open Shanghai.

http://www.businessinsider.com/macquarie-chinas-economy-in-4-terrifying-charts-2015-8

 

[minnie mum]

Businesses in the US have leveraged the Chinese economy continuing to boom...and it isn't exactly happening. This will hurt US businesses/workers as well as Disney as they open Shanghai.

http://www.businessinsider.com/macquarie-chinas-economy-in-4-terrifying-charts-2015-8

Thanks for attempting to decipher the post I quoted. I'm not convinced that China's economic problems, and any attendant problems with Shanghai Park attendance ( still an unknown) have any direct bearing on the current discussion of Disney CURRENTLY raising prices at rates way ahead of most guests income growth. If anything, if Disney can't compartmentalize, and the US economy takes a big hit as well, it will only get worse. But given the latest report of Disney's 3rd quarter earnings, they can't be hurting yet.

 

[Planogirl]

Attendance is up, and at the same time prices are higher than ever for admission, food, hotels.

I'm baffled. Nearly everyone I know is deeply worried about stagnating salaries, under-performing investments, and severely rising costs of rent, food, tuition, property taxes, insurance, energy and so on.

I know a few oldsters with solid nest eggs (most of them thanks to gold plated government pensions) and they still do a lot of traveling ... cruises, safaris and so on. Once and a while they pop for a family vacation I suppose.

Other than that I can't think of who is going to Disney more and spending more. I'm thinking in terms of income polarization and the top 1% spending more at Disney. But the middle class? Soon they're going to be another scene in Spaceship Earth, a relic of the past. You could rip the last scene out of Carousel of Progress and plunk it down at the end of SE with the narration: "... and once for a brief time a large and optimistic middle class blossomed in the Western world, but were soon snuffed out in a catastrophe of inflation and debt ... " [cue smell of burning college diplomas]

I'm baffled too and have been for a while. I haven't seen much about credit card debt in a while and I hope that it's not increasing again. People tend to want what they want....NOW.

 

[lockedoutlogic]

I forgot I posted in this thread, well you finally responded.

I know what a consumer is.

In other news I'm unable to afford a fancy sports car, an Italian Villa, or to shop on 5th avenue.

Such is life.

If you know what a consumer is...then you know that steadily climbing prices for equal product is "bad" thing...

That was kinda a floater across the plate, wasnt it?

 

[::danielle::]

I'm baffled too and have been for a while. I haven't seen much about credit card debt in a while and I hope that it's not increasing again. People tend to want what they want....NOW.

I would guess that credit card debt isn't climbing yet. Rather people tend to take a "spend it while you have it" approach. When the economy starts to really tank the "buy it like you have it" credit card debt starts mounting. Sadly, "save it until you need it" is an archaic concept.

 

[Planogirl]

I would guess that credit card debt isn't climbing yet. Rather people tend to take a "spend it while you have it" approach. When the economy starts to really tank the "buy it like you have it" credit card debt starts mounting. Sadly, "save it until you need it" is an archaic concept.

Prices have gone up a lot for many necessary items though. Many salaries have been stagnant. Yet people still seem to buy new cars and the latest electronic gadgetry and so on. It feels like there's a disconnect somewhere.

 

[Joe in VA]

Two things are driving consumer spending, soaring stock prices and soaring home prices. People are making a ton of $ if they are invested in either, unfortunately it definitely seems like another bubble is being formed.

 

[BostonJP]

Prices have gone up a lot for many necessary items though. Many salaries have been stagnant. Yet people still seem to buy new cars and the latest electronic gadgetry and so on. It feels like there's a disconnect somewhere.

Not all prices have been going up though - for awhile it's been very easy to refinance mortgages for very low interest rates, and this past winter gas prices dipped below $2 a gallon for a couple days. You're absolutely correct - household goods are getting more expensive but I think consumers are seeing savings elsewhere.

To the original point, any family vacation will cost thousands so I am honestly surprised that so many of these complaints specifically target Disney. Is it because they raised their ticket prices? The cost increase is roughly equivalent to the cost of a Starbucks frozen beverage and I'm OK forgoing one of those if it means I can enjoy vacation time with my family.

 

[Josh Hendy]

To the original point, any family vacation will cost thousands so I am honestly surprised that so many of these complaints specifically target Disney. Is it because they raised their ticket prices? The cost increase is roughly equivalent to the cost of a Starbucks frozen beverage and I'm OK forgoing one of those if it means I can enjoy vacation time with my family.

I think Disney is targeted because people can figure out how to cope with increased prices of fuel, property taxes, tuition, health care, food, etc. Not that it's easy, but they cope with it because they have to. A WDW vacation isn't as necessary, yet it's something that you really miss if you have to do without it. It's when they contemplate the difficulty or impossibility of a vacation that people finally get angry.

They should be a lot more angry at the people who are responsible for wrecking the economy with constantly rising prices and taxes and at the same time causing their salaries to stagnate. If they can find a decent job at all. But they don't get angry at the people who are shafting them because they have no idea who is doing it to them, or why or how they are doing it.

 

[dinolounger]

Whaaaaat?????

While you were sleeping, the winds of some very bad change that is coming our way have been forming. The below explains:

http://www.cnbc.com/2015/08/07/stocks-are-a-disaster-waiting-to-happen-stockman.html

Key quote from article (interview with ex OMB head David Stockman):

According to Stockman, it's only a matter of time before the collapse in China trickles down to other markets. "The whole global economy since 2008 has been driven forward by this massive investment and construction and borrowing spree in China," said Stockman. "The point that I'm making is that it's over.""

 

[mickeyfanachey1999]

While you were sleeping, the winds of some very bad change that is coming our way have been forming. The below explains:

http://www.cnbc.com/2015/08/07/stocks-are-a-disaster-waiting-to-happen-stockman.html

Key quote from article (interview with ex OMB head David Stockman):

According to Stockman, it's only a matter of time before the collapse in China trickles down to other markets. "The whole global economy since 2008 has been driven forward by this massive investment and construction and borrowing spree in China," said Stockman. "The point that I'm making is that it's over.""

another quote from that article
"Stockman, whose past claims have yet to come to fruition,"

If we look hard enough in this day and age we can find a bull that says the market is headed for 25k and a bear who says the end is near and the market will be 6k by the end of the year.