News Disney CFO Hugh Johnston Says Dynamic Pricing Is Coming to the Parks

[Sirwalterraleigh]

Yup. WDW does dislike APs it seems.

They loathe them

When someone shows you who they are…believe them

 

[Kane88]

Let’s file this thread under “Mess” Around and Find Out… I think this is a horrible idea. As others have said it shows that Disney has become a luxury destination.

 

[Sirwalterraleigh]

As others have said it shows that Disney has become a luxury destination.

It’s absolutely not

“Others” are 100% wrong

 

[lentesta]

Oh please spill some tea on this.

@wdwmagic and I have a deal to tell the untold story when the other one retires.

 

[Notes from Neverland]

Why not make trip planning even more unpredictable for average guests?

 

[Sirwalterraleigh]

Not saying this is going to happen... but I can see at least 1 way it could help the guest...

Lets say they are currently at the hub and are looking for lunch. While browsing menus in the app to decide where to go, they see that Cosmic Rays lunch is 10% more expensive than Columbia Harbor house. So they go to CHH.

In the background, the reason Cosmic Rays is more expensive is because the kitchen is backed up, while CHH has readily available capacity.

The guest (assuming they didn't really care what restaurant) will get their food faster and potentially at the same cost as they would have if dynamic pricing was not in effect.

It could be used as a crowd control metric.

You took your shot…

That hypo only works if all menus are the same…which is probably what a few Stanfords who have never been on a date are proposing too

Edit: Also Mr. IAAPA has been saying this is coming for awhile https://forums.wdwmagic.com/search/6023322/?q=dynamic&c[users]=lentesta&o=relevance

And that makes it more palatable…how? Exaclty?

It’s just another example to inadequate strategy and management. It’s a symptom of the disease

 

[UNCgolf]

Dynamic pricing on food would be hilarious. Oh, you want to eat lunch at 12:30 when everything is busy? That will cost $45. You want to eat lunch at 3? Only $25.

Or, it's hot today and we're selling a lot of ice cream. Double the price.

 

[GhostHost1000]

Some of us have been saying this was coming.... for years.

They have a need to increase revenue, that can't be debated, but it's interesting to think that they are still hitting capacity limits in a way that would allow increasing price to curb demand. Clearly the parks aren't that empty at all.

They are far from hitting capacity limits

 

[GhostHost1000]

Yep

I do as well…and it’ll be an exciting day in the DVC resale market

 

[HauntedPirate]

I stand corrected.

I'm going to wear a stillsuit when I go to the parks.

Suddenly those filthy APer’s don’t look so silly for buying AP’s (locking in their entry tickets for 12 months), bringing in their own food (no way to dynamically charge them for food), et al.

 

[Sirwalterraleigh]

They are far from hitting capacity limits

Not even close

 

[CAV]

I may get banned for this, but i honestly hate these people.

 

[Sirwalterraleigh]

I may get banned for this, but i honestly hate these people.

What if i gave you a puppy? Would that make you like me?

 

[drizgirl]

Does anyone here actually think Disney's IT is actually up to this task?

 

[monothingie]

I may get banned for this, but i honestly hate these people.

 

[esskay]

 

[monothingie]

My guess is that they're taking the cruise line approach to hotels and tickets.

• Book Early and get the lowest price for that calendar date. (This is not the same as a discount rate for booking early, you're basically paying what the minimum that the room or ticket cost on the legacy rate chart.)
• Takes advantage of FOMO and locks guests into their dates.
• Canceling or moving dates penalizes guests and moves them to the current price points which will be higher.
• Allows for Surge Pricing. Some type of convention or event or whatever, guests are paying more instantly.
• Allows for better tracking of crowds.

Unknowns:

• APs and their future.
• Discounts and promotions. I don't think anyone pays rack rate anymore (Unless they get a dining plan) and everyone relies on discounts and promotions for hotel rooms.
• Guest Reaction. Certainly won't be good. Even the dusters and cupcake brigade can't defend this.
• Crowds. Probably down because this will just push away last minute travelers, locals, AP holders, and DVC members.
• Perception of the company. Well that's known already. They suck.

 

[HauntedPirate]

They can’t fill the parks as-is, but sure, getting rid of AP’s is a wonderful course of action to consider.

 

[Disorbust]

20% of guests make 80% of revenue. The 20 % in the parks will not care about any dynamic pricing, they are there for one and done and may go home complaining how expensive it is but that's it. Value and quality are thing from the past and we just need to come to terms with this is the reality and make decisions accordingly.

The leadership just care about the bottom line right now and don't care if they run it in the ground.

 

[monothingie]

They can’t fill the parks as-is, but sure, getting rid of AP’s is a wonderful course of action to consider.

Other than that Mrs. Lincoln how was the play?