Interesting Disney Parks Survey Question I got Today - Tiered Ticket Pricing by Season

[tirian]

After all the talk of price elasticity, I submit WDW is quickly approaching/ passing the point exceeding marginal utility (MU). Once MU is surpassed, the consumer gets no additional satisfaction from the purchase of an additional item.

I see WDW cultivating high proportion of "once and done clientele" that conflicts with the focus on DVD.

Wall Street investors and the BoD don't seem to understand the disconnect between DVC and current business practices. Why encourage people to buy into a time share if you aren't giving them compelling reasons to return and do something new?

I suspect they also misinterpret many of the Disney fans who can afford to return annually. Remember the infamous comments made in the mid-2000s that Disney guests "shopped at Wal-Mart"? Many long-term fans are doctors, lawyers, entrepreneurs, financiers, and sometimes entertainment execs at other companies. Many of the most well-informed posters on these boards are white-collar professionals. For my part, I have three degrees and I'm working on another grad degree.

Don't look down your noses at us, Disney leaders. Some of us are just as qualified—sometimes more so—to do your job. We might not have the company experience, but that doesn't seem to be beneficial.

Edit: I realize the final paragraph sounds arrogant, but I stand by it. Many people outside the company are more than qualified to do a better job than those who are actually running it. Exhibit A: Matt Ouimet versus Michael Colglazier.

 

[Nubs70]

Time shares are all about selling them out and moving on, there is no reason in the world to care about someone who has already bought a time share. Up front a time share makes huge money if it sells out and after that it's a continue stream of revenue from a management fee and if things get run down you just charge all the owners. That's the beauty behind time shares. Disney could burn MK to the ground and all those time share people all still own those time shares. Not a thing in the world they could do.

But why buy into DVC if you are a "once and done"? DVC is marketed as a multiple visit savings option. So after a trip or two experiencing the ever complex planning, no new attractions, one realizes that another trip will not return a minimum level of satisfaction. The marginal utility has gone negative. So why lock in for another 40 years?

 

[Dwarful]

We were unhappy after our trip in Feb/March of this year and cancelled our annual 10 day trip. We aren't even going to FL this summer which is unusual for us. Usually we get the APs and hit it 3 times in a 12 month time period. Now with my husband's work it is almost impossible for us to know more than 120 days in advance when his vacation will be. With the increase in food prices and decline in quality we quit doing very many sit downs. No more hoppers...no value for us. We can go on vacations and have as much fun for much less money which in turns means either a) more spending money for something else, b) money in the bank, c). money for additional trips. but no more money for WDW.

 

[Millionaire2K]

Different rates are dumb for the parks, but if they plan to do it, it should be done right. People should not have to buy Gold because 1 day is Gold. The cost should be a per day basis based on days bought and where they fall like booking a room. Disney could charge less per day based on the length you book.

Sounds confusing but it's simple.

My example:
If you buy a 10 day ticket you get the 10 day rates for each level (Gold,Silver,Bronze 10-day rate). You then add up how many of each day at each level (G,S,B) you will use. You are basically booking a park visit like a hotel.

10 day if you go for 5 Bronze and 5 Silver you pay $375 ($38.5 * 5 + $36.50 * 5)
6 day if you go for 5 Bronze and 1 Silver you pay $328.35 ($54.17 * 5 + $57.5)
10 day if you go for 6 Bronze and 4 gold you pay $381 ($36.50 * 6 + $40.50 * 4)

You then use your ticket like the DDP. You will have credits for each level (G,S,B). You can always upgrade a level.

 

[Nemo14]

You know, I've been thinking about all this "Multi-day tickets crossing two or more seasons must be purchased at the highest season’s price" stuff, and I strongly suspect that they have no intention of actually doing this. Yes, there will be tiered pricing, but they'll remove that stipulation, while claiming it was in response to what customers wanted. This way, they'll still be able to jack up prices, yet claim it's to satisfy customer demands.

 

[alphac2005]

Uni will just match the prices anyways. Don't they always increase when WDW does?

Universal has matched on the daily ticket, but once you move to multi-day tickets or annual passes, there isn't a comparison as Universal can be significantly less. Universal still does what Disney used to do (because it's smart business) and offers an AP renewal rate that is significantly less than the initial AP price. I believe WDW knocks off about 1/6 of the price for a renewal whereas Universal takes off about 1/2 of the price.

When I was looking at these countless pricing schemes, one thing stood out. When we left Florida, which was a decade ago, a Florida Resident AP and a current Florida Resident 3 day park hopping ticket that expires in 14 days are basically the same price. That is a staggering increase in cost.

 

[Nemo14]

Universal has matched on the daily ticket, but once you move to multi-day tickets or annual passes, there isn't a comparison as Universal can be significantly less. Universal still does what Disney used to do (because it's smart business) and offers an AP renewal rate that is significantly less than the initial AP price. I believe WDW knocks off about 1/6 of the price for a renewal whereas Universal takes off about 1/2 of the price.

When I was looking at these countless pricing schemes, one thing stood out. When we left Florida, which was a decade ago, a Florida Resident AP and a current Florida Resident 3 day park hopping ticket that expires in 14 days are basically the same price. That is a staggering increase in cost.

Yes but look at all the new things in those past 10 years...


oh wait, nevermind...

 

[Mike S]

Universal has matched on the daily ticket, but once you move to multi-day tickets or annual passes, there isn't a comparison as Universal can be significantly less. Universal still does what Disney used to do (because it's smart business) and offers an AP renewal rate that is significantly less than the initial AP price. I believe WDW knocks off about 1/6 of the price for a renewal whereas Universal takes off about 1/2 of the price.

When I was looking at these countless pricing schemes, one thing stood out. When we left Florida, which was a decade ago, a Florida Resident AP and a current Florida Resident 3 day park hopping ticket that expires in 14 days are basically the same price. That is a staggering increase in cost.

Love my FL resident Uni AP On the site it actually tells you how many days it takes to "make your money back" and for the AP I have I make it back in about 2 days with the renewal price. I'm pretty much stealing from Comcast And you know what? Because I'm getting a good deal I actually feel like *gasp* spending more in the parks!!!

 

[Nubs70]

Because they are selling a lifestyle. Not to be over the top but timeshares are for poor people to say that they own a vacation "home" or something like that. It's a status they sell with these timeshares. Most time shares are the price of a car plus on going maintenance. The more wealthy buy condo's, houses to use and rent out as a appreciating asset that has yearly income. You can sell a timeshare but that isn't like selling a free hold estate.

Don't mean to get the timeshare people in an uproar so .....

I do agree on the lifestyle angle. However, the original intent of DVC was lifestyle and keeping owners on site/ in parks spending money. The emerging trend of DVC as a home base for other than in park vacations is counter to the original intent.

WDW needs to increase marginal utility to increase long term viability not add another hurdle to clear. All the new aspects of planning is becoming like a McDonald's order board. It's too complicated, I just want a burger, fries and a Coke.

 

[DisneyCane]

Marriage is an institution and the divorce rate is about 50 % in the US.

Yep,"American Middle Class rite of passage."

Not that it matters to this discussion but the divorce rate isn't about 50%. It is difficult to calculate because it requires waiting for a spouse to die in order to have a marriage declared as "not ending in divorce." It seems the real rate is somewhere in the 30% range. I think that the highest recorded "ever been divorced" percentage was 41%.

The NY Times had an article a few months ago busting the 50% myth.

 

[Kingoglow]

After thinking on this over night I realize that this is not what the final version of tiered pricing will look like.

Obviously they wanted to get this out to the public so we can provide feedback. I expect the tiers to shift around a bit more with 1 or 2 more bronze weeks. I also expect weekends to stay silver and gold.

I also expect Disney to change to their daily tiered pricing model that they use on hotel rooms. If I stay 7+ days, I pay gold ticket prices on gold days, silver ticket prices on silver days etc. If they don't then we, as a knowledgable fan community, will simply book split stays and take advantage of them.

The will still need to solve for their holiday parties. Paying a silver/gold rate and having to leave the park at 7 pm wont go over well at all.

And, in the end, like I said before... all this does is lead to more intense over-crowding in the one park that is worth the price listed on that sheet, MK. No one should ever pay even a bronze rate for Studios. I would never pay a gold rate for DAK. And, sadly, EPCOT has been left in the 1990's and no longer inspires me to pay more than bronze.

 

[wendysue]

Hopefully the people who get priced out are the lowest tier who accepts and embraces the current quality of WDW offerings leaving a class of guests who demand reinvestment in the park and routinely refreshed entertainment

Ahhh, the class system. Well, you can relax now that us riffraff have been priced out....

 

[CaptainAmerica]

Love my FL resident Uni AP On the site it actually tells you how many days it takes to "make your money back"

That's the same mythical math that Disney uses to sell DVC.

 

[GeneralKnowledge]

Thankful for my AP. Of course its only a matter of time before they mess with that too.

Just wait, they'll start ranking different years by bronze silver or gold. Nothing new opening this year....it'll be a bronze year. Avatar land opening in 2017 that'll be a gold year.

 

[GeneralKnowledge]

Want to make it more complicated Disney? How about if you opt to pay Gold level prices on a Silver or Bronze day, you get more Fastpasses.

 

[KingdomofDreams]

This is beyond ridiculous. If I said what I really think, my post would be deleted.
Isn't a vacation to WDW already complicated enough? They have how many different rate categories for the resort rooms? Now they also want to bring the park tickets into this? No! They need to seek ways to simplify the guest experience, not complicate it. It's just another way to jack up prices, which are too high already.

 

[ford91exploder]

Because they are selling a lifestyle. Not to be over the top but timeshares are for poor people to say that they own a vacation "home" or something like that. It's a status they sell with these timeshares. Most time shares are the price of a car plus on going maintenance. The more wealthy buy condo's, houses to use and rent out as a appreciating asset that has yearly income. You can sell a timeshare but that isn't like selling a free hold estate.

Don't mean to get the timeshare people in an uproar so .....

Erm, No

Timeshares are more for people who need discipline to go on vacation, The use it or lose it nature of a timeshare works for many of us who would skip vacation entirely.

 

[ford91exploder]

After thinking on this over night I realize that this is not what the final version of tiered pricing will look like.

Obviously they wanted to get this out to the public so we can provide feedback. I expect the tiers to shift around a bit more with 1 or 2 more bronze weeks. I also expect weekends to stay silver and gold.

I also expect Disney to change to their daily tiered pricing model that they use on hotel rooms. If I stay 7+ days, I pay gold ticket prices on gold days, silver ticket prices on silver days etc. If they don't then we, as a knowledgable fan community, will simply book split stays and take advantage of them.

The will still need to solve for their holiday parties. Paying a silver/gold rate and having to leave the park at 7 pm wont go over well at all.

And, in the end, like I said before... all this does is lead to more intense over-crowding in the one park that is worth the price listed on that sheet, MK. No one should ever pay even a bronze rate for Studios. I would never pay a gold rate for DAK. And, sadly, EPCOT has been left in the 1990's and no longer inspires me to pay more than bronze.

Bronze is simply a beard, TWDC needs to keep the P&R numbers green and with DVC sales slowing due to the insane prices TWDC needs a double digit price increase. I expect we will see gold salted so that there is no way that you can do a week during common vacation times for those with kids without paying in the 'GOLD' tier.

 

[DisneyJoe]

They have how many different rate categories for the resort rooms?

The many different room rate categories were created due to guest demand and entitlement. Those "requesting" a bunk bed room, who were always told that their "requests are never guaranteed" would stand at the front desk screaming and yelling at the front desk staff demanding their bunk bed room forced Disney to create the room rate categories so that a guest could pay for, and thus be guaranteed, their bunk bed room.

This ticket tier system could be a similar reaction to guests demanding Disney do something about crowds.

I expect that if Disney implements this, that Universal won't be far behind with their version of it.

 

[hopemax]

Bronze is simply a beard, TWDC needs to keep the P&R numbers green and with DVC sales slowing due to the insane prices TWDC needs a double digit price increase. I expect we will see gold salted so that there is no way that you can do a week during common vacation times for those with kids without paying in the 'GOLD' tier.

At least for off-site. I can see the on-site promo, stay at a Disney Resort for 7 days or more, and you only pay Bronze!