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

[FettFan]

 

[Sirwalterraleigh]

Of the 5 late-20s Gen Z employees I’ve hired in the past 2 years, all but 1 either still live with their parents or regularly receive financial assistance from them.

All but 1 have at least an undergrad college degree from an accredited institution.

They’ve all been hard workers, good people, but the cost of living is so high here

No one I work with, even management, would consider a WDW vacation or cruise, mostly due to cost, although several could easily afford it; it’s either not their thing, or they’re too fiscally responsible to consider it a reasonable expenditure.

One of them just spent $10K for a couples trip to France, and one just went on a very pricey 2-week fishing trip out west to a historic resort while his wife did the full spa package almost the whole time.

We’re a 6-hour drive from WDW. Almost all the staff went as children or young adults, depending on age, some multiple times.

Wdw isn’t priced for the south anymore

…what’s really troubling is how much blowback I hear in the northeast burbs about it…they’ve managed to stumble into their price ceiling…and you can’t turn away from it when you chase quarterlies and it’s the lions share of your revenue

It’s pushing the immovable object

 

[BrianLo]

…..ummmm

I’m waiting to live on your planet…the one where there’s a 75,000,000 member customers pool of seldom/one timers who line up outside Disney gates each year…
With a ridiculous level of churn by default

What are you criticizing? Where did I say there are 75M unique guests?

~12.5% of on-site keys are DVC, with on site partners. I was only really talking about hotels.

Maybe @lentesta would have some clue towards the number DVC guests versus regular guests in a Disney park? If you
are talking about attendance mix - I’m betting with off site volumes thrown in the mix we’re down in the 4-6% range.

I’m too now curious to know the more precise answer, because clearly people seem to have a very inflated number in their minds.

 

[FettFan]

No one I work with, even management, would consider a WDW vacation or cruise, mostly due to cost, although several could easily afford it; it’s either not their thing, or they’re too fiscally responsible to consider it a reasonable expenditure.

One of them just spent $10K for a couples trip to France, and one just went on a very pricey 2-week fishing trip out west to a historic resort while his wife did the full spa package almost the whole time.

Aye. It’s so crazy to think about that when I was a kid, my parents would take me to Epcot center to experience other cultures because of how expensive and burdensome international travel was.

Nowadays, my wife and I are planning a week or two in the UK because of how expensive and burdensome a Disney trip is.

Minus his little detour in 20-22, Iger has been CEO for almost 20 years now, and all he’s done is strangle Walt’s golden goose. And when he saw that he could get no more eggs, he proceeded to buy other people’s golden geese and strangle them as well.

 

[Sirwalterraleigh]

What are you criticizing? Where did I say there are 75M unique guests?

~12.5% of on-site keys are DVC, with on site partners. I was only really talking about hotels.

Maybe @lentesta would have some clue towards the number DVC guests versus regular guests in a Disney park? If you
are talking about attendance mix - I’m betting with off site volumes thrown in the mix we’re down in the 4-6% range.

I’m too now curious to know the more precise answer, because clearly people seem to have a very inflated number in their minds.

You just downplayed the core clientele in Orlando and Anaheim…

Like they literally would close tomorrow if either didn’t show…which is not an exaggeration.

They have constructed and converted I believer about 28% of their controlled rooms to dvc in wdw…with typically higher occupant capacity than rack.

It’s not a “minor” part of the base. It Basically IS the base after a 30 year build out.

I don’t know what the point of twisting on this is…your math ain’t mathin

 

[BrianLo]

They have constructed and converted I believer about 28% of their controlled rooms to dvc in wdw…

I counted ~12.5%. I was using Touring Plans.

Walt Disney World Hotels - Number of Rooms

c.touringplans.com

Maybe onsite partners keeps getting overlooked?

 

[Sirwalterraleigh]

I counted ~12.5%. I was using Touring Plans.

Walt Disney World Hotels - Number of Rooms

c.touringplans.com

Maybe onsite partners keeps getting overlooked?

Just the Disney owned and operated rooms.

If you are Bringing in Swolphin and Hotel plaza boulevard…then you might as well talk the 500+ hotels out of bounds…which makes you wonder where are all THOSE people going?
I’m more fascinated with that: how much off property bleed has the Bobs caused?

That is hard to quantify…but more telling

People staying at the holiday inn express on central Florida parkway dropping $1000+ a day for 3 or 4 days driving into the “world”? That seems
Like a number on the rise?…or the ebb?

 

[GimpYancIent]

Just the Disney owned and operated rooms.

If you are Bringing in Swolphin and Hotel plaza boulevard…then you might as well talk the 500+ hotels out of bounds…which makes you wonder where are all THOSE people going?
I’m more fascinated with that: how much off property bleed has the Bobs caused?

That is hard to quantify…but more telling

People staying at the holiday inn express on central Florida parkway dropping $1000+ a day for 3 or 4 days driving into the “world”? That seems
Like a number on the rise?…or the ebb?

It's in the details. The Deluxe, Moderate and Economy ratings that Disney gives itself for the on-property resorts do not coincide with the standards of off property establishments, which all too often exceed the Disney standards and cost less. In short Disney cheapened the experience at its on-property resorts yet (arrogantly) charge more. Bottom line - If the guests / visitors / tourists do not enjoy / have a good experience at a resort, that / those resorts will see fewer and fewer of those guests / visitor's / tourists. Disney has shot itself in the foot!

 

[GimpYancIent]

Consider this. Increased prices (grossly) over the last decade have led to guests / visitors / tourists / afficionados having high expectations of special experiences, feeling entitled to have these experiences, they paid a premium for them! YET no such experiences happen. Remember the "You are the magic". Hence there are all too many disappointed, saddened, disgruntled and Yes! even angry guests / visitors / tourists / fans / afficionados etc. The special / detailed fun and happy experience unique to Disney has been scraped away now going to Disney is going to a themed amusement park like so many other themed amusement parks. The uniqueness is gone, so yeah, the up-and-coming generations go, see, do and experience ONCE, get bored, then move on with no desire to come back. (Been There Done That)

 

[HauntedPirate]

Consider this. Increased prices (grossly) over the last decade have led to guests / visitors / tourists / afficionados having high expectations of special experiences, feeling entitled to have these experiences, they paid a premium for them! YET no such experiences happen. Remember the "You are the magic". Hence there are all too many disappointed, saddened, disgruntled and Yes! even angry guests / visitors / tourists / fans / afficionados etc. The special / detailed fun and happy experience unique to Disney has been scraped away now going to Disney is going to a themed amusement park like so many other themed amusement parks. The uniqueness is gone, so yeah, the up-and-coming generations go, see, do and experience ONCE, get bored, then move on with no desire to come back. (Been There Done That)

Be careful - You're going to hurt the feelings of the "It still has value to MEEEEE!!!1!!!" brigade. Next you're going to say something really outlandish, like that the 80's, 90's, or early 2000's offered a far better resort value and theme park experience than what's offered these days.

 

[John park hopper]

Maybe Disney's ultimate goal is convert all resorts to DVC by down grading the guest experience. DVC means guarantied income, all maintenance fees and taxes covered. It's all about the $$$$$$$$ with Disney management .

 

[DisneyCane]

Aye. It’s so crazy to think about that when I was a kid, my parents would take me to Epcot center to experience other cultures because of how expensive and burdensome international travel was.

Nowadays, my wife and I are planning a week or two in the UK because of how expensive and burdensome a Disney trip is.

Minus his little detour in 20-22, Iger has been CEO for almost 20 years now, and all he’s done is strangle Walt’s golden goose. And when he saw that he could get no more eggs, he proceeded to buy other people’s golden geese and strangle them as well.

The airport security on the way to the UK will probably be a more pleasurable experience than the security process to enter a park at WDW.

 

[DisneyCane]

It's in the details. The Deluxe, Moderate and Economy ratings that Disney gives itself for the on-property resorts do not coincide with the standards of off property establishments, which all too often exceed the Disney standards and cost less. In short Disney cheapened the experience at its on-property resorts yet (arrogantly) charge more. Bottom line - If the guests / visitors / tourists do not enjoy / have a good experience at a resort, that / those resorts will see fewer and fewer of those guests / visitor's / tourists. Disney has shot itself in the foot!

I've never stayed in Deluxe at WDW. I've only stayed in that tier of hotel in Central Florida for business trips. It's been a long time since I've done an economy stay nearby but I have done moderate on property and stay at off site moderate on the vast majority of trips. I can say 100% that the quality is at least as good off site and the cost is lower.

 

[Chi84]

I've never stayed in Deluxe at WDW. I've only stayed in that tier of hotel in Central Florida for business trips. It's been a long time since I've done an economy stay nearby but I have done moderate on property and stay at off site moderate on the vast majority of trips. I can say 100% that the quality is at least as good off site and the cost is lower.

Right. The deluxe resorts are a premium price because of location within WDW and their proximity to the parks.

 

[Chi84]

The airport security on the way to the UK will probably be a more pleasurable experience than the security process to enter a park at WDW.

Really? You just walk through a scanner. Did they change it in the last year?

 

[Tha Realest]

Maybe Disney's ultimate goal is convert all resorts to DVC by down grading the guest experience. DVC means guarantied income, all maintenance fees and taxes covered. It's all about the $$$$$$$$ with Disney management .

They haven’t built a new cash resort in almost 25 years. And over that time they’ve cannibalized existing cash room inventory for DVC.

 

[Chip Chipperson]

The response when asked if this plan is similar to how airlines operate was very telling: "I would like to not think about it that way, to be honest with you. But, yeah, similar."

Translation: We were really hoping nobody would notice how much we're copying an industry known for its miserable customer satisfaction.

 

[Sirwalterraleigh]

Maybe Disney's ultimate goal is convert all resorts to DVC by down grading the guest experience. DVC means guarantied income, all maintenance fees and taxes covered. It's all about the $$$$$$$$ with Disney management .

The thought occurred…

They haven’t built a new cash resort in almost 25 years. And over that time they’ve cannibalized existing cash room inventory for DVC.

Indeed. Which is why wondering to threads talking about “new resorts” is rather silly…

Like “new countries in Epcot”

 

[Sirwalterraleigh]

The response when asked if this plan is similar to how airlines operate was very telling: "I would like to not think about it that way, to be honest with you. But, yeah, similar."

Translation: We were really hoping nobody would notice how much we're copying an industry known for its miserable customer satisfaction.

We hammered them for how stupid this sounded all last week…but this line in particular did not get the grief it rightly earns

 

[jah4955]

Right. The deluxe resorts are a premium price because of location within WDW and their proximity to the parks.

and they know they'll forever have a monopoly on that....

More specifically...they know how all-the-more appealing those Monorail Resorts become as you're staring at them (like a person dying of thirst staring at a mirage in a desert) while exhaustedly standing with a herd of humanity waiting for the busses in overflowing lines

...and...you...just...want...to...go...to...bed!

That's why my last several visits I either stayed off-property or walked to my parking spot lol.