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

[lentesta]

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.

DVC occupancy averages around 95%, IIRC. So you can get a decent approximation of guests in the park from that.

 

[Disstevefan1]

DVC occupancy averages around 95%,

Unprecedented demand!

 

[Sirwalterraleigh]

DVC occupancy averages around 95%, IIRC. So you can get a decent approximation of guests in the park from that.

Which was the entire point…from day 1.

Which is why they sold it at a good price. It’s a case where “trickle down” actually works.

But that was LONG ago

4x the price does not translate

 

[jah4955]

DVC occupancy averages around 95%, IIRC. So you can get a decent approximation of guests in the park from that.

I'll never get it ...I want to be proven wrong...it seems like a "shell game" (whether you choose DVC or don't...you still lose):

1. Raise resort rates
2. Show how DVC is a deal compared to resort rates
3. Raise DVC
4. Raise resort rates again
5. Show how DVC is still a deal compared to resort rates
6. Repeat

It's like a supermarket I go to...BOGO "looks" great...until you noticed that it simply reduced the price to the same amount that is charged everywhere else.

 

[Sirwalterraleigh]

Unprecedented demand!

…when the lawyers have you bound to it

 

[Sirwalterraleigh]

I'll never get it ...I want to be proven wrong...it seems like a "shell game" (whether you choose DVC or don't...you still lose):

1. Raise resort rates
2. Show how DVC is a deal compared to resort rates
3. Raise DVC
4. Raise resort rates again
5. Show how DVC is still a deal compared to resort rates
6. Repeat

Same thing they did for 8 years with the dining plan…which resulted in empty restaurants now.

…you do the math.

Dvc prior to around 2010 really worked out well in the longterm…

Since…it’s kinda fools gambit. The upfront and rising annuals bring the costs too close to out of pocket over time for a great deal. And of course they can’t even give you a few bucks off tickets…that is REALLY a bully move

 

[MisterPenguin]

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.

Yes a Disney Deluxe is less deluxe than non-Disney deluxes.

But, do those non-Disney deluxes provide a walking path or a monorail ride to a world class theme park?

There's a hidden add-on fee for Disney Deluxes for the "amenity" of being at a Disney theme park. And all the amenities of being in that 'bubble.'

Disney Deluxe is deluxe compared to Moderate or Value resorts. Not in comparison to non-Disney deluxe accommodations.

If Disney weren't to "cheapen" the "Deluxe" standard (is there even a standard for such a thing?), what wording would you prefer them to use instead to indicate that highest level of accommodations that Disney resorts offer?

 

[Mr Ferret 75]

Yes a Disney Deluxe is less deluxe than non-Disney deluxes.

But, do those non-Disney deluxes provide a walking path or a monorail ride to a world class theme park?

There's a hidden add-on fee for Disney Deluxes for the "amenity" of being at a Disney theme park. And all the amenities of being in that 'bubble.'

Disney Deluxe is deluxe compared to Moderate or Value resorts. Not in comparison to non-Disney deluxe accommodations.

If Disney weren't to "cheapen" the "Deluxe" standard (is there even a standard for such a thing?), what wording would you prefer them to use instead to indicate that highest level of accommodations that Disney resorts offer?

Disney "closer to the park" resort

 

[Dranth]

I'll never get it ...I want to be proven wrong...it seems like a "shell game" (whether you choose DVC or don't...you still lose):

1. Raise resort rates
2. Show how DVC is a deal compared to resort rates
3. Raise DVC
4. Raise resort rates again
5. Show how DVC is still a deal compared to resort rates
6. Repeat

True for your upfront costs, but if you joined DVC the raise in point costs no longer impact you unless you are looking to buy more. Yes, you still have to deal with maintenance fee increases but those are tightly controlled and have to be spent on specific things.

Not claiming it is worth it to buy in at current prices, just that the cycle no longer applies once you are in.

 

[Dranth]

Dvc prior to around 2010 really worked out well in the longterm…

Just my opinion/experience but at least for direct purchasing...

- Pre 2010 was an amazing deal.
- 2010-2020 was good to okay.
- Post 2020 has been okay to bad.

 

[monothingie]

Yes a Disney Deluxe is less deluxe than non-Disney deluxes.

But, do those non-Disney deluxes provide a walking path or a monorail ride to a world class theme park?

There's a hidden add-on fee for Disney Deluxes for the "amenity" of being at a Disney theme park. And all the amenities of being in that 'bubble.'

Disney Deluxe is deluxe compared to Moderate or Value resorts. Not in comparison to non-Disney deluxe accommodations.

If Disney weren't to "cheapen" the "Deluxe" standard (is there even a standard for such a thing?), what wording would you prefer them to use instead to indicate that highest level of accommodations that Disney resorts offer?

The problem is, Disney Deluxe Resorts used to be actual "Deluxe" level resorts.

When you stayed at the Grand Floridan, you knew you were at the flagship resort.

Through nothing but greed, the "it's good enough" mentality spread. Now the Grand Floridan is no different than any other resort on property other than the costumes the cast members wear.

 

[Horizons '83]

The problem is, Disney Deluxe Resorts used to be actual "Deluxe" level resorts.

When you stayed at the Grand Floridan, you knew you were at the flagship resort.

Through nothing but greed, the "it's good enough" mentality spread. Now the Grand Floridan is no different than any other resort on property other than the costumes the cast members wear.

Difference of opinion, but I still feel I am at a flagship when at the Grand. I sometimes stay the Waldorf down the road and the Ritz on points, but pale in comparison to the GF. The Grand is a special place, and you can certainly point to a number of things that have watered down its status over the years (really miss the Jazz Orchestra) but its still the #1 resort in my book on property.

 

[jah4955]

Difference of opinion, but I still feel I am at a flagship when at the Grand. I sometimes stay the Waldorf down the road and the Ritz on points, but pale in comparison to the GF. The Grand is a special place, and you can certainly point to a number of things that have watered down its status over the years (really miss the Jazz Orchestra) but its still the #1 resort in my book on property.

I've never "gone Deluxe," but I remember for the years immediately after its opening all the guides (Disney doesn't count lol) extolled the GF as being "as good as it gets."

 

[flynnibus]

Sorry forgot to hit post!

The percent of declared DVC rooms to current total onsite rooms. Not incredibly scientific, just some napkin math from Touring Plans.

That is not sound logic for this discussion. We're talking about unique customers.. and ultimately what it takes from those customers to build the attendance the park is accustomed to. aka a makeup of 100 visitations... is it 100 unique people.. or is it 80 uniques and 5 repeat customers. Repeat customers represent ever growing value in terms of not needing to find replacements. A customer that returns twice a year.. In year one that repeat customer is one customer they 'save' (you didn't have to draw in alone). In year two, it's three customers total.. in year five, it's saved you finding 9 customers. This keeps adding up, easing the pressure to always find the 'next body'.

A DVC room is not a 1:1 to a customer. A DVC room is a shared resource. In theory the DVC inventory can act as a cap to the % of unique customer population that is DVC because the DVC inventory has a ceiling because of the points inventory and so it can only be chopped up so many ways. But a contract owner doesn't typically go alone.. so there is a scaler there too for family sizes.

So you can come up with a max DVC bed count per year.. but again this is loose at best for the conversation because an owner can have multiple contracts, etc. It becomes really fuzzy.

Disney's gate metrics would be far better because Disney knows every identity that goes through the gates now.

 

[flynnibus]

I sometimes stay the Waldorf down the road and the Ritz on points, but pale in comparison to the GF.

 

[flynnibus]

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

Well, they USED to be more than that.. Disney wasn't a renowned hospitality brand simply due to the proximity of the hotels they bought.

 

[flynnibus]

Disney Deluxe is deluxe compared to Moderate or Value resorts. Not in comparison to non-Disney deluxe accommodations.

If Disney weren't to "cheapen" the "Deluxe" standard (is there even a standard for such a thing?), what wording would you prefer them to use instead to indicate that highest level of accommodations that Disney resorts offer?

Disney could go back to their established convention...

We have Hotel.. and then we have Hotel+ accomodations. Or they could call them Fantasy, Magic, and Flounder.

This rationale that they are deluxe only relative to themselves is gaslighting.

 

[MisterPenguin]

Disney could go back to their established convention...

We have Hotel.. and then we have Hotel+ accomodations. Or they could call them Fantasy, Magic, and Flounder.

This rationale that they are deluxe only relative to themselves is gaslighting.

I said this:

Yes a Disney Deluxe is less deluxe than non-Disney deluxes.

But, funny, you cut that out of the quote. It completely goes against the point you wanted to score.

I'm done with your nonsense.

 

[Horizons '83]

View attachment 894211

Always use points, so the cost savings is real vs the GF for sure. The rooms at those luxury resorts are updated and grounds are nice, but there really isn't anything special about them or their locations. The Grand is a splurge, an expensive one at that but if I had a choice, and the parks are a priority, I'd still pick the flagship.

 

[monothingie]

Difference of opinion, but I still feel I am at a flagship when at the Grand. I sometimes stay the Waldorf down the road and the Ritz on points, but pale in comparison to the GF. The Grand is a special place, and you can certainly point to a number of things that have watered down its status over the years (really miss the Jazz Orchestra) but its still the #1 resort in my book on property.

How's the 24 hour room service?
Turn Down Service?
Daily chocolate on your pillow?
Toiletries not bolted to the wall?
Extra thread linens?

ohhh right...

Enjoy that bar in the middle of the lobby that serves pre-mixed cocktails.