Spirited News, Observations & Thoughts IV

[flynnibus]

yet, Disney --even with CMs playing with house money -- hasn't found that true

So we are going to accept a limited test as the way things will be? Fortunately we have a much larger market we can rely on for more reliable information and it's well covered that cashless systems not only increase revenue, but can increase in increased spending per customer.

McDonalds for instance.. a business that relies on virtually all small transaction sizes found that adding Credit Card transactions actually boosted ticket size (spend per customer). Being small transactions, it's not like not having credit made the product inaccessible before... but having credit as an option makes the product more accessible and people tend to let themselves spend more.

It's customer behavior that has been studied and reported on a ton. When you remove the direct link to actual cost, and putting money out 'right now' - you tend to increase sales. Right or wrong.. the customers at large are more willing to spend if they don't feel/see the money leaving...

 

[Animaniac93-98]

Silly me I thought GCH was Grand Californian Hotel. People need to stop using acronyms for everything (half joking on that one).

So, I guess I am Ok with it depending on what replaces it.

A Lilo and Stitch McDonald's Play Place!

But no ball pit or slide because the kids might cut themselves on something.

 

[WDW1974]

This thread is beginning to sound elitist and an attempt at defining what people should look like, their career requirements, and background to be admitted into a theme park originally created for everyone.

As a longtime annual pass holder to both parks, I can safely say I've seen all kinds of people in both. The loud, the abnoxious, the oddly dressed (these are theme parks that sell oddly fashioned clothing and hats though to begin with), and so on. Inebriated people are a by product as well anywhere there is alcohol.

Do I get annoyed with certain things? Absolutely. But it isn't exclusive to just when I'm sitting in the AKL, or having a drink at the Poly.

Going on about the perceived classes and types of guests allowed in is not a means to an end unless you are talking about pedophiles etc. which Disney actively attempts to ban (Universal may as well though I've never asked).

Disney didn't create these so called honey boo boo people, and to say they don't belong sounds like someone needs a hug.

Disney coddled these people. Much like the mental defectives in the fan community and the bloggers because it knows that it can take advantage of mental illness for material gain. Pure and simple. The more nuts you are, the more Disney wants you to feel perfectly normal, so long as you have money ad/or great credit. UNI doesn't.

That is why Disney dumbs down menus for simple Americans. That is why Disney makes renting ECVs also damn easy. That is why Disney doesn't have amazing state of the art attractions like Potter that you can't take part in if you're morbidly obese et .

Disney makes being 'special' special ...go to a bloggers meet up if you disagree.

 

[AEfx]

There are a lot of examples where moving to cashless and token systems increase spending while reducing loss.

People spend more on credit... It removes barriers like not having the money with you, not enough, etc

For just a quick example... Look at the airlines
http://aviationblog.dallasnews.com/2008/10/one-more-drink-per-flight-4-mi.html/

Right, but the thing is - in this case, people were already likely buying on credit as it is. And aside from just plain absent-minded people, most of us know exactly where on our person our credit card is and it's really no easier to swipe a bracelet than to swipe a card.

I also think people are making it sound like suddenly people are going to go store to store just swiping their wrist the whole time and forgetting about what they are spending. Presumably one will get a receipt with this, too - and while I save all my receipts because I'm just wacky like that, when people are spending "virtual" money off these bracelets, there is a higher chance they are going to keep even more careful track just from not knowing/trusting the technology. I know I don't check my personal credit card receipts one by one on my last day (when I do it's when the bill comes in after I am home), whereas under this system I think all but the most clueless among us will be checking the bill when they check out and keeping track throughout the week to make sure it matches. The "easier" they make it, the more people will self-audit because of the "this seems too easy" nature.

I think it will change some behavior (for instance, you might just put everything on the bracelet instead of going from cash to credit for different purchases), but that kind of washes out for Disney. Quick lesson: When you swipe a credit card at a merchant, like Disney, they have to pay a percentage of that purchase to the credit card processor (who then divvies it up between various other parties). It's usually a couple of percent, depending on what is being sold, the amount, etc. That's why (although they are mostly phased out or banned for one reason or another today) you used to see "cash" or "credit" prices, with the credit price being higher.

So on one hand Disney might end up losing on that detail, because they will be running more on credit than cash (when it's cash you pay for your $2.79 soda, they get all $2.79, whereas when it's on credit, they get, say $2.65 for it). But on the other hand - we have no idea what type of deal Disney has with it's processor, but it's often cheaper (almost always) to pay these fees on one large purchase (the charge-off at the end of your stay) than if they ran each individual transaction at the time of sale.

In the end, on that one detail - they will probably end up just about breaking even (pay more fees because of less cash, but save a bit on fees by running less individual transactions).

The reason I mention all that is because I think it's a perfect example of the larger picture - yes, this will increase some types of spending likely, but it just may decrease others. It has as many pratfalls as it has benefits, and to spend one BILLION dollars on it - it's going to take a LONG LONG time to pay for itself.

Meanwhile, just in the past four years, Universal has added HOW MANY E-ticket attractions? And how many will be there by the end of next year? All while we wait what will be nearing half-a-decade by the time it's completed for that little hill to be built in Fantasyland in nearly the same amount of time. Universal builds E-tickets from ground to opening day in less than a year, and more than one at a time. And Disney is sitting here quibbling over monitoring guest flow in bathrooms more efficiently with RFID, and trying to spare people the effort of locating their choice of payment on their person.

Disney ceded the "premiere theme park attractions" crown to Universal, no if's, and's, or but's about it. I still love the parks, but as much as I actually like New Fantasyland, TLM, and am looking forward to that little hill being done, even I cannot begin to pretend that they are doing anything near the level that Universal is currently performing at, with what has been recently done, and what is coming in the pipleine. I do hope that Star Wars saves the day - it can, but Disney has to let it.

 

[MerlinTheGoat]

If they are smart they would fire nearly everyone involved with the project, Jay Rasulo, Nick Franklin, Tom Staggs,Jim MacPhee, Meg Crofton and basically all of the late Eisner era relics in TDO. Also the Board of Directors should get rid of Iger. Basically anyone who started in Eisner's Strategic Planning should be given pink slips. Whether they will actually do that remains to be seen.

I agree, but I also get the feeling the people on the board are really part of the problem as well and there's likely not much that can be done about them. They're the ones that continue to vote Iger back in in spite of everything and allowed them to run wild in the first place. Either they are out of touch with their own company or they're just as bad as the rest on the project, probably a bit of both I imagine.

I really don't know what it will take to change things at this point, or even if it can possibly be done. If in the unlikely scenario that Rasulo, Franklin, Staggs and all the rest actually are fired (which probably won't happen as they likely already have scapegoats set up to take the fall for them), there's still every chance that the board will just simply appoint new people with the same kind of business practices. Disney's corporate heads as a whole seems to have a disdain for people who think on the creative side of things and actually want the best for the parks. All the company heads I gather consider the parks a nuisance and consistently do everything they can to get money off of it EXCEPT actually invest in quality and good new attractions...

I have to wonder whether it will get to a point where the company heads would just rather face the consequences of their business suffering. Letting it crumble around them rather than admitting they were wrong and taking action to salvage things and conducting theme park business the proper way. If egos are that big, we may be in for one hell of a long and steep fall before anything is done to save things (if it can even be done at all).

 

[WDW1974]

Exactly. Which is why some retail companies have started testing not accepting CA$H for payment. Crazy, but not as far fetched as you may think.

Study after study shows that people spend more when they aren't using cash. There is not emotional attachment to swiping a credit card, it hurts a little when you hand over a Benjamin.

Let's just wait and see if that is the case with Disney's little project. They certainly expect those gains. But the fact the head of P&R is already lying about the results does give one pause.

 

[HMF]

So why not let anyone in any park on any day go online and select a virtual fast pass, use it, then select another one? Simply show the app or web screen at the attraction entrance as they show a piece of paper now?

Say I'm in Epcot at 10am and I want a FP for Test Track. I open a free app and select it, it tells me on my iPhone to goto the ride at 4pm and show the app screen. Simple. I'm staying off property, I don't have any jewellery on my wrist, and I don't have to give any details.

If this were solely what the NextGen initiative entailed I would be much more inclined to get behind it

 

[Jeffxz]

I am still trying to find that out. I firmly believe the answer is no and that this could result in some court Action.

I've noticed you can now search for hotel reservations for the swan/dolphin from the main disney world home page. Has this always been like this?

 

[WDW1974]

When I see slobs in stained t-shirts that barely cover their beer bellies, slouched on couches in the lobby of a so-called Disney deluxe hotel, with their bare feet up on the coffee table, I don't feel like I'm getting my money's worth. So yes, call me elitist. I don't see this kind if thing at deluxe hotels elsewhere.

I'm not saying they should be banned, but I don't think there is anything wrong with requiring certain civilities.

And I also never see that behavior at other top end resorts. I didn't see it at Portofino Bay either.

Hell , you don't see it at a typical airport Hilton!

 

[Jeffxz]

So we are going to accept a limited test as the way things will be? Fortunately we have a much larger market we can rely on for more reliable information and it's well covered that cashless systems not only increase revenue, but can increase in increased spending per customer.

McDonalds for instance.. a business that relies on virtually all small transaction sizes found that adding Credit Card transactions actually boosted ticket size (spend per customer). Being small transactions, it's not like not having credit made the product inaccessible before... but having credit as an option makes the product more accessible and people tend to let themselves spend more.

It's customer behavior that has been studied and reported on a ton. When you remove the direct link to actual cost, and putting money out 'right now' - you tend to increase sales. Right or wrong.. the customers at large are more willing to spend if they don't feel/see the money leaving...

I think you are completely correct with the cashless system increasing sales. But WDW has had the cashless option for years by allowing charging to the kttw card. My argument is that the people who wouldn't allow charging on the kttw, also won't allow charging on the bands.

 

[flynnibus]

I think it will change some behavior (for instance, you might just put everything on the bracelet instead of going from cash to credit for different purchases), but that kind of washes out for Disney. Quick lesson: When you swipe a credit card at a merchant, like Disney, they have to pay a percentage of that purchase to the credit card processor (who then divvies it up between various other parties). It's usually a couple of percent, depending on what is being sold, the amount, etc. That's why (although they are mostly phased out or banned for one reason or another today) you used to see "cash" or "credit" prices, with the credit price being higher.

True - but the real world shows merchants come out ahead by offering credit cards - even with paying processing fees (and why do you think Disney likes you charging to a house account instead of a credit card every time??? swipe fees baby..). Even with losing the standard 3% or so per for transaction fees.. the increased revenue and higher spending offset it.

This isn't debatable - it's proven behavior in the retail/service industry.

Now where Disney is not like a Target or something.. is the in park transactions tend to be small. That's why I brought up the McDonalds case... because it shows that even when the cost of something is not the limiting factor... cashless systems have shown to increase spending.

And again.. please read the post I was replying to. I was replying to the notion that people have a cap on what they spend, and won't spend more just because of some alternate form of payment. That too has largely been shown otherwise in other retail/services.

 

[flynnibus]

I think you are completely correct with the cashless system increasing sales. But WDW has had the cashless option for years by allowing charging to the kttw card. My argument is that the people who wouldn't allow charging on the kttw, also won't allow charging on the bands.

Some people prefer to stay with that... but I think you'll find that audience shrinking over time. Some will never unless they are forced - that's fine. Just like some people will never stay on-property... but those that do.. Disney is ahead on.

 

[ChrisFL]

Disney coddled these people. Much like the mental defectives in the fan community and the bloggers because it knows that it can take advantage of mental illness for material gain. Pure and simple. The more nuts you are, the more Disney wants you to feel perfectly normal, so long as you have money ad/or great credit. UNI doesn't.

That is why Disney dumbs down menus for simple Americans. That is why Disney makes renting ECVs also damn easy. That is why Disney doesn't have amazing state of the art attractions like Potter that you can't take part in if you're morbidly obese et .

Disney makes being 'special' special ...go to a bloggers meet up if you disagree.

Yep...it's a SLIGHT bit like trekkies in a way. I love Star Trek, but I've never once considered dressing up or going to conventions to meet those people.

 

[MattM]

Let's just wait and see if that is the case with Disney's little project. They certainly expect those gains. But the fact the head of P&R is already lying about the results does give one pause.

Personally, it doesn't matter to me whether it succeeds or fails. If it does fail, it would certainly be a case study as to why it has and no other instances have. (see: eBay "buy it now", iTunes, in app purchases, etc, which are all tied to a credit card already but removed the barrier of using the actual card).

Make it easier to spend, and people will spend. Whether it be Disney, universal, sea world, legoland, McDonald's. Doesn't matter.

Also, how does one know, with absolute certainty, that the head of a division of a major corporation is lying about results?

 

[HMF]

I can agree that cashless systems could increase spending, but the bands won't encourage it more than regular credit or kttw cards. People that like to pay in cash will continue to pay with cash. I don't believe that if someone was not willing to link their CC to a kttw card they would change their minds due to the bands.

Frankly, I am surprised Cash has not been totally replaced by cards. It's definitely more effective and less stressful. I would be all for Next Gen if it were just used to access the park gates, Fastpasses and hotel rooms. My issue with Next Gen is the data mining/tracking of guests. the hassle of having to pre-plan everything and of course the insane amount of money while the parks continue to crumble.

 

[The Empress Lilly]

This thread is beginning to sound elitist and an attempt at defining what people should look like, their career requirements, and background to be admitted into a theme park originally created for everyone.

As a longtime annual pass holder to both parks, I can safely say I've seen all kinds of people in both. The loud, the abnoxious, the oddly dressed (these are theme parks that sell oddly fashioned clothing and hats though to begin with), and so on. Inebriated people are a by product as well anywhere there is alcohol.

Do I get annoyed with certain things? Absolutely. But it isn't exclusive to just when I'm sitting in the AKL, or having a drink at the Poly.

Going on about the perceived classes and types of guests allowed in is not a means to an end unless you are talking about pedophiles etc. which Disney actively attempts to ban (Universal may as well though I've never asked).

Disney didn't create these so called honey boo boo people, and to say they don't belong sounds like someone needs a hug.

- Elitist? Why yes. Of course. Would that WDW was free of the loud, the underdressed, the drunk. The people who think WDW is a carnival for which they have to dress up all eight in matching t-shirts with silly print. The hicks who populate WDW's more expensive offerings because they use as disposable income those funds middle class guests use for their children's college education. And especially the nouveaux riches, mobsters, and all those others whose disposible income is inversely proportional to their taste and manners.

- Mouse ears were fun when they were the goofy accessory to an otherwise restrained classic outfit. They are less fun when they are the most normal accessory somebody wEARs.

- Disney did create these people. Disney dumbed down its product until it got the dumb guests to match. The kind who spend $200 on bottled water as they drag their brats from one m&g to another toy store.
We, elitists, went to WDW for live jazz, elegant dining, and remarkably sophisticated themed environments.

 

[twebber55]

change only comes when people stop going...its nothing to see someone on this board gripe and complain about wdw (for good reason) but then look at their sig and see they ve been going to wdw 16 of the last 17 years

 

[MattM]

Hell , you don't see it at a typical airport Hilton!

you also tend to not see people who have been at an outside theme park all day at an airport Hilton, too. So, there's that.

I've never seen anything at universal I haven't seen at Disney, and vice-versa.

 

[alphac2005]

Exactly. Which is why some retail companies have started testing not accepting CA$H for payment. Crazy, but not as far fetched as you may think.

Study after study shows that people spend more when they aren't using cash. There is not emotional attachment to swiping a credit card, it hurts a little when you hand over a Benjamin.

It's funny that you mention this because the exact opposite is becoming more prevalent in the retail world, not more so. While it's true that some business have tried (and continue to experiment) to push the plastic only route, the truth of the matter is that the vast majority of small and medium sized businesses are trying to get back to the cash only business. Even many of your large retailers are trying to get the consumer if they aren't using cash to automatically force the [VISA, MasterCard, etc.] debit card to accept as a debit only due to lower cost.

New credit card industry regulations in the States allow for businesses to set a minimum credit card purchase, which was a violation of the merchant agreement beforehand, and the ability to set lower pricing for cash only. A restaurant that we frequent monthly does exactly that, offering a percentage discount for not using credit cards and cash only.

While in certain situations people lose complete sense when using plastic whether it's a vacation, or a big box clothing store that offers all of their products at half off for example, while it's just a gimmick bringing the price of the product to what should be the true set retail price, the vast majority of establishments don't gain much from the use of credit cards and the downside is far greater with the plastic due to the transaction and merchant fees. Those countless mall eateries where someone charges $1.50 for a beverage and by the time the transaction costs are settled, they barely post a profit on the transaction, or in the vast majority actually are at a loss after the price of the product, materials, wages, etc.

 

[Black Pearl]

Disney coddled these people. Much like the mental defectives in the fan community and the bloggers because it knows that it can take advantage of mental illness for material gain. Pure and simple. The more nuts you are, the more Disney wants you to feel perfectly normal, so long as you have money ad/or great credit. UNI doesn't.

That is why Disney dumbs down menus for simple Americans. That is why Disney makes renting ECVs also damn easy. That is why Disney doesn't have amazing state of the art attractions like Potter that you can't take part in if you're morbidly obese et .

Disney makes being 'special' special ...go to a bloggers meet up if you disagree.

I would argue that Universal's all you can eat plan for $20 or whatever it is, could be a counter point. Pizza, hotdog, burger, salad, cookies. Walking around IOA or Studios you find tons of these bands worn by guests experiencing simple American foods.

How is renting an ECV different at any of the parks? They all offer them it seems for a price.

Are you referring to this site's blogger's meet ups? I've never done one but have considered checking one out when I'm in the state because I'm curious.

I don't see how judging a park based on the people that are willing to make blogs/sites/videos or whatever is anything but that. Every large entertainment (and sometimes non entertainment) company has fans/users that do this. If I judged the industry I work in by every individual fan convention attendee, It'd be shattering.

Universal brought all the Potter fans along for the ride which is a massive global fan base that could rival the best of them, and Disney has the Star Wars franchise now. Fans will be fans and bloggers will be bloggers. The reason that there is so much merchandise is that people keep buying. Same for increases in tickets and everything else. Universal held the highest ticket price briefly earlier this year I believe before Disney did their hikes.

All these parks are in the business to make money, and they certainly do that.