Ticket price increase coming at Walt Disney World!

[lockedoutlogic]

Of course they do, but that equation is not linear. I'm sure they'd love for Santa Claus to rain big buckets of money over Cinderella castle too. They can't have both.

If raising prices leads to higher profits, and so far it has, a moderate drop in attendance is not going to bother them. Is it "good business"? Probably not. Will it hurt them in the long run? Maybe, if they push it too far. Do the executives care? Not as long as profits and their stock prices are rising.



Why on earth would anyone on these boards want to "spin" anything in Disney's favour? If that's how you've read my comments, you've grossly misinterpreted. I've said at least twice that I think their current ticket prices are absurd and I would be unlikely to pay them. I don't know how to state it any more clearly.

I don't like what they're doing any more than anyone else does. Doesn't mean it's not happening.

Have you looked around these boards?

They are filled with people who do nothing but defend the shield...

As if that none of the damage done by stock Bob's regime will ever screw the Parks up. It's happening and will continue to snowball...and they will cry the longest and hardest when the self awareness of stupidity sets in.

 

[rteetz]

Have you looked around these boards?

They are filled with people who do nothing but defend the shield...

As if that none of the damage done by stock Bob's regime will ever screw the Parks up. It's happening and will continue to snowball...and they will cry the longest and hardest when the self awareness of stupidity sets in.

Aren't you supposed to be on vacation

 

[lockedoutlogic]

Aren't you supposed to be on vacation

...maybe for the last time

 

[mab2012]

I think people on here spin things all the time because they love the mouse so much and he can't do wrong.

Fair enough. That's not me though.

Not saying you're like that, if it came across that way, I apologize.

No need. Viewed through a certain lens, I guess I can see how you might get that. But "they only care about profit" was really intended as more of a criticism than a compliment to the business. Or at best a neutral attempt to make sense of what otherwise looks like a pretty boneheaded move.

I think Disney has made good moves from a short term standpoint, but their long term standpoint is pretty bad, just my opinion though.

Well, we can agree on this much, at least.

What Disney does have over a grocery store or run-of-the-mill retailer is one of the strongest brands in the world (for now), and a massive "moat". ie. They have a product that is unique and not quickly or easily replicated by a competitor. I think they're banking on this to bail them out of trouble if they overshoot on prices. They're assuming that if attendance *and* profits start to drop, all it will take is a good promotion or a new attraction to pull people back. At this point, I suspect that's still true, at least as long as the economy holds up. I don't mean to imply that their brand is a panacea; it'll only take them so far. What it might buy them is time to adjust and space to recover if (or when) they go too far. Or not. Time will tell.

 

[mab2012]

Have you looked around these boards?

They are filled with people who do nothing but defend the shield...

Point taken. I still don't understand it, but I concede that it happens.

 

[mshanson3121]

I think more people would stay off site. My nephew and his kids, along with his mother got a condo nearby for $ 900 for the week. Huge savings. There are eight of them.

Definitely. We'll never stay on site. Oh the kids would love to - they've watched those documentaries where they explore all the different resorts, but not happening. The house we rented last time was 4 bedrooms, 2 bath, games room and private 24' pool, was only $100 CDN taxes in. Compare that to the cheapest value hotel room being $150 US/$205 CDN. So not only do you save a lot on lodging, but also on food: $150 for a week's worth of groceries compared to the cost of DDP or eating out of pocket.

 

[dlavender]

We will pay for those priced out until we are priced out. It's that simple.

Best summary out there.

If we go this year, stealing this slogan for our matching T's.

 

[BuckeyeBama]

Disney is still pushing to find the boundary between profits and attendance. We can afford the increase, so it doesn't bother us, but I really feel for younger families. No way could I have afforded these prices when my children were young - the years in which Disney really created a bond with my family. So they may still be able to fill the parks at these higher rates, but they may also be missing out on the connections with younger families. We would not be a "Disney" family if not for those earlier visits. What does that translate to over time?

That said, Disney has never really rewarded frequent visitors, so maybe they just don't care? Maybe we spend less/day, so are less profitable as guests?

 

[Beer Me]

Disney is still pushing to find the boundary between profits and attendance. We can afford the increase, so it doesn't bother us, but I really feel for younger families. No way could I have afforded these prices when my children were young - the years in which Disney really created a bond with my family. So they may still be able to fill the parks at these higher rates, but they may also be missing out on the connections with younger families. We would not be a "Disney" family if not for those earlier visits. What does that translate to over time?

That said, Disney has never really rewarded frequent visitors, so maybe they just don't care? Maybe we spend less/day, so are less profitable as guests?

That sounds right. If you take frequent shorter trips these ticket increases hurt. I do infrequent longer trips. Tickets are about 25% of my Disney vacation budget. 15% of 25% is not a deal breaker.

 

[lockedoutlogic]

Disney is still pushing to find the boundary between profits and attendance. We can afford the increase, so it doesn't bother us, but I really feel for younger families. No way could I have afforded these prices when my children were young - the years in which Disney really created a bond with my family. So they may still be able to fill the parks at these higher rates, but they may also be missing out on the connections with younger families. We would not be a "Disney" family if not for those earlier visits. What does that translate to over time?

That said, Disney has never really rewarded frequent visitors, so maybe they just don't care? Maybe we spend less/day, so are less profitable as guests?

Excellent, excellent points...especially about the lost opportunity costs with younger families.

Taking your kids after college when you start selling off your real estate isn't gonna keep the bibbidi bobbitty booked up...

But Wall Street loves bob...which means he sucks for legacy because legacy isn't about quick scores.

Ironically...Eisner was huge on the repeat business in the 80's and 90's...and he was right that iger was a cheap Hollywood suit.

 

[Madteaparty001]

 

[Dean Marino]

Deleted. You don't want the data.

 

[lockedoutlogic]

Was there something about shifting block out dates I missed?

 

[Maistre Gracey]

Was there something about shifting block out dates I missed?

No. it's his rant.

MG

 

[lockedoutlogic]

No. it's his rant.

MG

Yeah I thought so...since be current blackout dates are December 22-Jan 2 and Easter +/- 8 days...give or take

 

[Maistre Gracey]

No problem paying - but WDW?

You are attempting to sell GOLD passes with blockout dates. You won't SHOW the blockout dates over the life of the pass (1 year).
Offer an honest ticket - SHOW the blockout dates through TODAY, PLUS ONE YEAR AND 60 DAYS. As of TODAY? That would be 4-17-2018.
These would also be YOUR rules for pass renewal - the ones YOU Wrote. Honor them.

You are attempting to sell a product without full disclosure. DISCLOSE, or quit selling the product. To do otherwise is dishonest. To date, you will only reveal blockout dates through 1-31-2018.

All personal opinion - I'm not necessarily right, no one else is necessarily wrong.

You basically know what the blackbout dates are...
Are they supose to update them on a daily basis seeing as though Passholders buy everyday?
What if you buy today but don't activate until July? Would you demand to know the dates through July next year??

MG

 

[Maistre Gracey]

Yeah I thought so...since be current blackout dates are December 22-Jan 2 and Easter +/- 8 days...give or take

Yup. For gold blackouts you are reasonably safe if you assume a week each side of Easter, and a week each side of Christmas. (Plus a day or two)
Silver is that plus mid June through mid August. I do admit that one is a bit more murky.

MG

 

[OldsDr]

....

All personal opinion - I'm not necessarily right, no one else is necessarily wrong.

Why would one think your giving someone else's opinion?

 

[Josh Hendy]

There should always be a balance between 3 parts of a triangle - the corporate profit, the employee welfare, and the customer experience. Somehow, maybe b/c of Wall Street and stock prices, everyday Americans and corporations themselves seem to be forgetting two parts to the triangle and focusing solely on the corporate profit.

Corporate profit is supposed to be at the top of the triangle. Employee happiness and customer satisfaction are supposed to be the two legs supporting the profit.

But ...

We live in a distorted economic and financial environment right now (an artificially created credit bubble - sorry for harping on this) in which huge corporate profits can be made at the expense of employees and customers. Employees and customers frankly don't count for jack ... when large corporations have access to basically free money from credit markets. They access credit directly through various means such as bonds, and indirectly by means of their employees and customers surviving not on their incomes but on access to credit in the form of credit cards, mortgages, second mortgages, student loans, car loans and on programs such as medicare and food stamps which are paid for by government borrowing.

It's a gigantic pyramid scheme and it won't end well.

Maybe we're starting to see pushback right now that is the beginning of the collapse of Disney's broken triangle, or maybe we're not. The pushback against hotel prices means that customers are balking at committing to vacations based on expensive credit card debt ... so Disney is dodging the problem by reconfiguring the hotels as timeshares in which they can pre-sell the same rooms to customers accessing cheaper long-term financing. Maybe they can dodge the decline in middle-class park attendance with even more price increases and expensive, premium perks aimed at upscale travelers.

 

[freediverdude]

Fair enough. That's not me though.



No need. Viewed through a certain lens, I guess I can see how you might get that. But "they only care about profit" was really intended as more of a criticism than a compliment to the business. Or at best a neutral attempt to make sense of what otherwise looks like a pretty boneheaded move.



Well, we can agree on this much, at least.

What Disney does have over a grocery store or run-of-the-mill retailer is one of the strongest brands in the world (for now), and a massive "moat". ie. They have a product that is unique and not quickly or easily replicated by a competitor. I think they're banking on this to bail them out of trouble if they overshoot on prices. They're assuming that if attendance *and* profits start to drop, all it will take is a good promotion or a new attraction to pull people back. At this point, I suspect that's still true, at least as long as the economy holds up. I don't mean to imply that their brand is a panacea; it'll only take them so far. What it might buy them is time to adjust and space to recover if (or when) they go too far. Or not. Time will tell.

They're not worried about this at all, unfortunately. They're not targeting the average middle class consumer or family anymore. They now target the top 10% who have consistent incomes, don't have much debt, not usually affected much by the economic downturns, able to pay for their kid's college, etc. There's a certain chunk of the population in this category, and they're very very profitable to target. Personally, I don't think that's what Disney should be, but I understand that's what a corporation is looking for.