News Disney CEO Bob Chapek suggests price hikes are coming to the parks thanks to guest demand

[HauntedPirate]

This is a "fan board" so I get the comments.

Problem is, TWDC is in the business of "making money" for its Shareholders. Which in turn makes money for Management. EVERYTHING else is secondary. Period. TWDC is NOT in the business of "making magic" for you or me. EVERYTHING they do, parks, merchandise, movies, etc., is created solely for the purpose of separating you ..... from your cash.

This ain't your parent's Disney. This ain't your Disney. This is 2022 Disney. So you either like what you see and thus financially support it. Or you don't. And right now, enough people must like what they are getting because TWDC is being financially supported in a big way. So, investors and management see no need to change a thing ... or "give us more park attractions" ....and in fact they are doubling down to see just how much they can extract from your wallet until there is nothing left to give.

Hang on to your nostalgia folks ..... but find something new to be passionate about. Unless of course you like the new TWDC

Too many people visiting are going based on nostalgia - "I went when I was xx years old, so my kids have to as well!". Those people get a rude wake up call when they see the prices and complicated nature of doing damn near anything these days. The kids don't develop the emotional attachment like their parents did because of the instant nature of entertainment these days. Disney loses both sets of consumers. Eventually they'll have a smaller and smaller customer base (and some bad word-of-mouth in social media could be really handy).

But it'll never happen. People are stupid. Disney trips have become a status symbol for most, and how many overpriced backpacks and ridiculously overpriced (not to mention useless outside the parks) Minnie ears you can collect are splashed all over social media to show off. No thought, no logic, just 'keeping up with the Joneses' and showing off to make their fragile egos feel better. And Bob is cashing in and laughing all the way to the bank because of it.

The bigger question is - How are shareholders not revolting right now with Bob 2.0 still holding dividends hostage because of Bob 1.0's Fox ego purchase?

 

[goofy5380]

Great way to reduce capacity Bob. You have reduced my chances of ever coming back.
Wait until the COVID catch-up is over..there will be nobody there to shell out exorbitant amount of money for a second class amusement park....yes I said it....Universal here we come very unfortunately however...
He needs more money to pay FLORIDA taxes now that REEDY CREEK will not be freeloading anymore
sad but true...

 

[Dayma]

Increases have happened since Disney World opened. I understand why people are in general mad at Chapek but the increases are
nothing new. For me future increases won't change my visits.

 

[Sirwalterraleigh]

Too many people visiting are going based on nostalgia - "I went when I was xx years old, so my kids have to as well!". Those people get a rude wake up call when they see the prices and complicated nature of doing damn near anything these days. The kids don't develop the emotional attachment like their parents did because of the instant nature of entertainment these days. Disney loses both sets of consumers. Eventually they'll have a smaller and smaller customer base (and some bad word-of-mouth in social media could be really handy).

But it'll never happen. People are stupid. Disney trips have become a status symbol for most, and how many overpriced backpacks and ridiculously overpriced (not to mention useless outside the parks) Minnie ears you can collect are splashed all over social media to show off. No thought, no logic, just 'keeping up with the Joneses' and showing off to make their fragile egos feel better. And Bob is cashing in and laughing all the way to the bank because of it.

The bigger question is - How are shareholders not revolting right now with Bob 2.0 still holding dividends hostage because of Bob 1.0's Fox ego purchase?

I’d LIKE to tone you down/disagree with you…but you’re pretty close to being dead on.

 

[HauntedPirate]

Increases have happened since Disney World opened. I understand why people are in general mad at Chapek but the increases are
nothing new. For me future increases won't change my visits.

Increases are not the problem. It's the pace at which they have happened since $lappie was installed as head of P&R. Let me find my spreadsheet quick...

As of 2019 (the latest info I have in my spreadsheet), so from the last price increase of 2015 to the 2019 price increase:

Single day tickets up around 33%
AP's up 85%

He introduced the insipid "value/regular/peak/holiday" pricing for park tickets as well.

I'll have to update with more current ticket prices, but it won't help his case one iota.

 

[Sirwalterraleigh]

Increases have happened since Disney World opened. I understand why people are in general mad at Chapek but the increases are
nothing new. For me future increases won't change my visits.

This was just in an article - Fox in an ironic twist - last week and I believe they said prices have increased some ridiculous 3,780% or something based on their “relative” analysis since 1971??

The point is…yes, prices have always gone up…and the place was never “cheap”…

But this isn’t “inflation”…or stupid comparisons to nfl games or musicals (I see predictable some said Springsteen )

This is a cult of personality thing that is driving the parks away from what they are designed as or who they serve.

It will work…all of it…provided nothing ever goes wrong/changes.

Reminds me a lot of the US housing crash…it works if everyone just pays and says nothing. Thought Is the enemy.

 

[HauntedPirate]

I’d LIKE to tone you down/disagree with you…but you’re pretty close to being dead on.

I'm waiting for the usual disagreements because I'm close to being dead on.

 

[Sirwalterraleigh]

I'm waiting for the usual disagreements because I'm close to being dead on.

…I’m sitting this one out
(Until the patronizing, veiled “I’m someone Important because I overpay for Disney!!!” Stuff starts)

 

[el_super]

Too many people visiting are going based on nostalgia

People are stupid.

No they're not. They're not stupid just because they go to the parks for a different reason than you do.

I realize that good financial results can bring out the worst in fans, but this is going a little too far.

 

[Mr Mindcrime]

Increases have happened since Disney World opened. I understand why people are in general mad at Chapek but the increases are
nothing new. For me future increases won't change my visits.

It's true that increases have always happened. In fact it happens with all businesses. It's called transitory inflation.

But the increases over the past 10-15 years have FAR outpaced normal inflation, which added to the fact (some might say "perceived fact") that we are paying more for less, is what is driving this discussion.

You say that future increases won't change your visits, but I wonder if that is 100% true. Do you have a threshold where enough is enough? If not, then I'll never get to go to WDW again because Bob and the BOD are catering to you.... not me.

 

[mightynine]

That’s what Bob told the faithful…and Bob would NEVER lie to them

I mean, the only thing that made a true impact on attendance was a global pandemic.

The increase price to lower demand thing has been trotted out for years now and has that actually happened? No. It’s a line to get in front of Wall Street IF that ever happened.

 

[Sirwalterraleigh]

No they're not. They're not stupid just because they go to the parks for a different reason than you do.

I realize that good financial results can bring out the worst in fans, but this is going a little too far.

A lot of things go too far here. Like speaking in absolutes/ judging opinions when you don’t have the life experience to make such judgements.

We’re all “imperfect” creatures.

 

[Mr Mindcrime]

Reminds me a lot of the US housing crash…it works if everyone just pays and says nothing

Lots of things "work" if everything goes just right. I think that is called "in theory".

But more things than not, are built on some sort of "house of cards" foundation.

I'm not wishing it .... far from it ..... but ANY business can fail, even TWDC. Be careful Management.

 

[el_super]

But the increases over the past 10-15 years have FAR outpaced normal inflation, which added to the fact (some might say "perceived fact") that we are paying more for less, is what is driving this discussion.

Prices are tied to demand and demand is extraordinarily high. That's why a room at the poly is $700 a night.

People want to be angry that "management doesn't get it" but they can't possibly start to explain the reasons why the demand is so high. They want to find comfort in thinking their right, that the product has changed for the worse, and that their opinions extend to everyone, but clearly that isn't true. People are going for their own disparate reasons that just don't align with the people on this board.

And so the prices will keep going up.

 

[el_super]

A lot of things go too far here.

Eh thinking people that like something, on a fan community, are stupid for liking that thing is .... certainly a take.

 

[StantonZ]

Honest question: do you go less than you used to?

No; in fact, you could argue we go more (even thought the length of stay may have declined).
Bottom line: TWDC is in business to make $, and you could see (even before COVID) that the only way to reduce crowds long-term is through price hikes. If you read about the history of the company (like Disney War), you would find price hikes from the 80's that would give today's a run for their money (no pun intended)!

 

[Sirwalterraleigh]

Lots of things "work" if everything goes just right. I think that is called "in theory".

But more things than not, are built on some sort of "house of cards" foundation.

I'm not wishing it .... far from it ..... but ANY business can fail, even TWDC. Be careful Management.

Didn’t you hear? Disney parks are merely a function of The micro curve…S,D,P…nothing more.

No context, history, market bleed or perception.

None of that matters. I just found out recently…decades of management had it completely wrong.

 

[HauntedPirate]

No they're not. They're not stupid just because they go to the parks for a different reason than you do.

I realize that good financial results can bring out the worst in fans, but this is going a little too far.

It's been a general belief for years, and so far it has yet to be proven it wrong. Not that good doesn't exist, because it absolutely does, but the stupid shows up far more often.

Who are Disney's good financial results good for? Not shareholders, unless they sell and sell for a profit, because there are still no dividends. It makes someone's 401k go up .1% for the week? Great. Not even a blip on their overall radar because stocks and 401k's have been hammered this year. It's good for those with lots of stock options, though. Parkgoers? They have higher prices to look forward to because of their decisions.

 

[DCLcruiser]

I mean, the only thing that made a true impact on attendance was a global pandemic.

The increase price to lower demand thing has been trotted out for years now and has that actually happened? No. It’s a line to get in front of Wall Street IF that ever happened.

I don't believe they are trying to "decrease demand with increased prices."

What I think they are doing is decreasing daily ticket sales (they can control it via limiting available reservations, which makes crowds smaller) but then they will increase prices to make the same or more money.

You guys want less people in the parks, but they can't make less money. So, if you want to make the parks more exclusive, limit tickets and raise prices to offset the loss in volume.

 

[mightynine]

Problem is, TWDC is in the business of "making money" for its Shareholders. Which in turn makes money for Management. EVERYTHING else is secondary. Period. TWDC is NOT in the business of "making magic" for you or me. EVERYTHING they do, parks, merchandise, movies, etc., is created solely for the purpose of separating you ..... from your cash.

Normally, I'd be inclined to agree with you, but Disney been issuing stocks and making money for the shareholders since the 50s.

There was a different mindset when it came their guests at one point. That is clearly not the case now.