Why so expensive

[Florida_is_hot]

I have air miles.
Thinking about a "Value" resort but these value?? resorts they want $160 a night.
Twice the about I paid in the past.

Think I will pass.
Why so expensive?

 

[wdwmom2+1]

I agree. we have always stayed on property since about 2000... Well this time we are going for7 nights and wanted to stay at the value resorts they were so expensive we are staying off property at the double tre for about a third of it and are ok with not staying on property.. There are things i'll miss but wow the price..

 

[xdan0920]

I guess I will never understand disliking a company so much that I would write such hateful things to discourage an audience that is so obviously pro Disney to dislike them too. To each their own I guess.

Who is being hateful?

 

[Disneyhead'71]

Break out the math. I fail to see what kind of legitimate calculation that can be put on a even 78% occupancy rate do bring it down to Disney only having 40% of their rooms sold on a yearly basis.

I believe that what he is saying is 40% of the "NEW" room nights added under Iger.

That said, if the average OccRate across the property is 78% and the values are running near 100%, what is the average OccRate at the Deluxes? To figure that out, you would have to know how many rooms in each category that have in inventory. I don't really care enough to do the research/math. But from what I have been told, the Deluxes have been bumping off the upper 40% range. This most likely explains why the rack rate at the "values" has jumped to $160/Night. And $160/night for garish motels hurts my head when I can get a true luxury resort (Loews Portofino Bay) for $174/Night with my AP discount up at Universal.

 

[Master Yoda]

Iger became CEO on September 30, 2005. WDW’s fiscal year runs from October 1 to September 30. Thus, 2006 represents Iger’s first full year as CEO.

The following numbers are per Disney’s annual report for all domestic resorts and includes DLR. Room nights occupied is calculated based on occupancy rate.

2012
Available Room Nights: 9,850,000
Room Nights Occupied: 7,978,500
Occupancy: 81%

2006
Available Room Nights: 8,834,000
Room Nights Occupied: 7,597,240
Occupancy: 86%

Delta
Available Room Nights: 1,016,000
Room Nights Occupied: 381,260
Occupancy: 38%

As stated by CFO Jay Rasulo during the November 8, 2012 earnings conference call:

“Occupancy at our domestic hotels was down three percentage points to 78% due to an increase in available rooms at Walt Disney World. The increase in available room nights was driven by the completion of the final phase of Disney’s Art of Animation hotel.”

What he’s not stating is the 1984 room AOA opened incrementally on May 31 (Finding Nemo section), June 18 (Cars section), August 10 (Lion King section), and September 15 (Little Mermaid section). Thus "the completion of the final phase" had relatively little impact on the overall available room nights for 4Q2012 or FY2012, which ended September 29, 2012.

Nothing like tweaking an X or Y axis to try and manipulate the data to prove a point. Using your numbers and the rate of increase of 63543 additional nights per year all Disney resorts will be at 100% capacity in just under 10 years if they do not add additional rooms. If the economy keeps improving and vacations keep increasing years could be shaved from that 10 year time table.

Bottom line, just like I stated before, Disney is a luxury item. They can charge whatever they want for it. Inflation is the minimum amount they will raise prices until their profits start dropping. Right now Disney seems to be quite content selling slightly less and charging a lot more.

 

[Disneyhead'71]

Disney will keep raising prices as long as the internationals keep filling the rooms no matter how many domestics they turn off. But when jet fuel prices raise or the dollar recovers they will change their tune. Then there will be a full on assault domestic ad campaign touting stuff like "buy 3 nights get 2 free". They better hope that at that point the domestic travelers haven't found suitable alternatives. I hope they are aware that domestics are now vacationing, but won't/can't pay upwards of $500+/night, and are actively seeking out more affordable vacation destinations.

 

[jencor]

I will just stick to supply and demand and not x's and y's. Isn't it true that with magic bands coming and to get them you have to stay at a Disney resort that they believe that demand will be increasing, which means pricing will be increasing?

 

[Disneyhead'71]

Just count on an 8% price hike across the board. Then throw in your personal personal profile metric. If they see that you have chosen to book when "free dining" isn't offered get used to it. They won't offer you "free dining". If they see that you wait until "free dining" is offered they will offer it regardless of what others are getting. The rub is that you may see it offered to others but when you log into your profile it may not be offered to you.

 

[willtravel]

Disney will keep raising prices as long as the internationals keep filling the rooms no matter how many domestics they turn off. But when jet fuel prices raise or the dollar recovers they will change their tune. Then there will be a full on assault domestic ad campaign touting stuff like "buy 3 nights get 2 free". They better hope that at that point the domestic travelers haven't found suitable alternatives. I hope they are aware that domestics are now vacationing, but won't/can't pay upwards of $500+/night, and are actively seeking out more affordable vacation destinations.

But by then Iger will be gone and he will be blamed for the financial mess....

 

[Disneyhead'71]

But by then Iger will be gone and he will be blamed for the financial mess....

Got to have a fall guy.

 

[I_heart_Tigger]

I never get why people think Disney is expensive. I assume you all live in areas where everything is dirt cheap because Disney isn't expensive to me, especially when I compare it to local inferior products of a remotely similar nature.

For example, I will be spending the weekend in a motel in a small town in Nova Scotia (not hotel...basic motel) for $170 per night. I could stay in one of the 2 hotels (a Marriott and a Sheraton) but didn't want to pay over $200 per night.

This fall I will attend our local agricultural fair. I may watch some of the entertainment which consists of an ox pull, barrel racing and a tug-of-war as well as go on a few of the rides such as the Ferris Wheel, Tilt-a-Whirl and Zipper. To get into the fair for one day and get a bracelet for the rides it will cost me $35 plus tax which totals $40.25. To get into Disney World and go on the rides I broke down the per day rate of my park hopper pass and I'm paying less than $34 per day.

Now onto food which people always complain is expensive - today I did a quick meal of a shrimp platter with fries and a coke - total cost (before taxes and tip) was $17.49. Columbia Harbour House shrimp and fries with coke = $12.58.

I realize you may be comparing Disney to other hotels in the immediate area but when I compare it to what I would spend at home, Disney doesn't seem expensive to me - especially when I add 15% tax on everything here.

Now flights - that's another story. Hopefully with a new airline in Canada heading south we can get a friendly competition going locally so I don't have to safely budget $750 to $1000 per person on flights.

 

[Disneyhead'71]

I never get why people think Disney is expensive. I assume you all live in areas where everything is dirt cheap because Disney isn't expensive to me, especially when I compare it to local inferior products of a remotely similar nature.

For example, I will be spending the weekend in a motel in a small town in Nova Scotia (not hotel...basic motel) for $170 per night. I could stay in one of the 2 hotels (a Marriott and a Sheraton) but didn't want to pay over $200 per night.

This fall I will attend our local agricultural fair. I may watch some of the entertainment which consists of an ox pull, barrel racing and a tug-of-war as well as go on a few of the rides such as the Ferris Wheel, Tilt-a-Whirl and Zipper. To get into the fair for one day and get a bracelet for the rides it will cost me $35 plus tax which totals $40.25. To get into Disney World and go on the rides I broke down the per day rate of my park hopper pass and I'm paying less than $34 per day.

Now onto food which people always complain is expensive - today I did a quick meal of a shrimp platter with fries and a coke - total cost (before taxes and tip) was $17.49. Columbia Harbour House shrimp and fries with coke = $12.58.

I realize you may be comparing Disney to other hotels in the immediate area but when I compare it to what I would spend at home, Disney doesn't seem expensive to me - especially when I add 15% tax on everything here.

Now flights - that's another story. Hopefully with a new airline in Canada heading south we can get a friendly competition going locally so I don't have to safely budget $750 to $1000 per person on flights.

In my book, $600+/night is a titch pricey. I can get a room at the Orlando Ritz-Carlton for about $250/night with free shuttles to all the parks and, trust me, The Ritz Carlton BLOWS ALL the WDW resorts out of the water in terms of luxury. I can stay at a dump like Cheeca Lodge in Islamorda (FL Keys pictured below) for $299/night. Maybe a small town in Nova Scotia isn't the best place to test competitive pricing. But it is a matter of perspective. From what I understand jobs in Canada pay better than the cut throat capitalism running rampant in the lower 48. Here a professional photographer for a TV news station pays around $40K/year. As a single father I have to spend wisely. I can only afford to take my kids here:

And here are my deprived children who's father can't afford WDW:

Maybe one day after I win the lottery I can take them to stay at a nice WDW hotel.

Two weeks ago I tortured my kids with a stay at Universal's Portofino Bay Resort for $174/night with my AP discount:

When they came in to turn down the beds they dropped off this plate of fruit (I made the Mickey)

To put things in perspective I paid $14 dollars more per night than WDW is charging for the All Stars ($160/night) for the room above.

I have no idea why people think Disney is just a titch over priced.

 

[CP_alum08]

Which is almost commentary on our culture as a whole. That is how it used to be. And for many people, still is. Never mind staying at a deluxe, there are still plenty of people that get to WDW maybe once in their life. Or that throw the WDW trip on their credit cards right next to their 60" TV and their Escalade, just because they need to go.

Growing up I think we went once every 5-6 years or so at best. Deluxe? No stinking deluxe, camping it was. WDW is still a destination vacation for many people, and sometimes those of us that are more fortunate to go more often forget that.

Well said. I think we, the people on here, go more often than most guests so we obviously give more money to WDW annually. For the people that go every few years or even once in a lifetime I don't think the price matters as much because they know they have to save and know they have the time to save.

Honestly, I don't think WDW is that outrageous compared to other vacations. 2 examples - we live relatively close to Chicago and are going there for a concert at the end of this month. We looked for a hotel for the night just to not have to drive back and there was nothing in the city for under $300. Next, we are going to the Dominican Republic for a wedding in October and for 5 days it's going to cost almost $2,000 for two of us.

 

[Violet]

You're not paying for the room, you're paying for the real estate, the proximity to WDW. Then they try to make the hotels a bit fancier as you get closer to the parks so the people there feel like they are getting something for their $600 a night, but what they are really renting is the little spot of real estate. So something like the even something like Ritz Carlton-Orlando is just not the same product as a WDW hotel near a park, no matter how awesome the rooms and facilities are. Apples and oranges.

 

[captainkidd]

I'm really not sure what to do anymore. I wanted to get away from renting points as I'm indecisive and like to make changes. But I just can't justify paying the same price (if not more) for a 400 sq ft room as I can for a 750 sq ft villa. But even that, compared with Universal's and off-site hotels is getting too expensive.

 

[PolynesianPrincess]

We're renting points in September after our cruise for Bay Lake Tower. We're paying less for 3 nights in a studio room, standard view than what we would have paid a Port Orleans French Quarter for those same 3 nights and POFQ is a moderate. And we're within walking distance to MK. Renting points is a really great way to go for us. For others, it doesn't work for them.

Bottom line is if people keep paying the ridiculous prices for monorail resorts, Disney will keep charging that amount, plus raising the prices. They emphasize the value of a deluxe resort as being on the monorail line, walking distance to Epcot... When in actuality, the resorts themselves don't really offer a whole ton more than some moderates do.

 

[I_heart_Tigger]

But it is a matter of perspective. From what I understand jobs in Canada pay better than the cut throat capitalism running rampant in the lower 48.

Unfortunately Canada is not the magical land where people get paid giant sums of money and everyone has a decent income. The job you mentioned would pay about $5,000 to $10,000 less in Canada - and don't forget our 15% - 18% tax on everything!

Last year I was laid off at the beginning of the year, had 5 months unemployment and started a small home business. I made just shy of $20,000 last year and I'm doing 2 Disney trips this year. I realize, though that I am paying not only for accommodations but convenience and atmosphere as well.

The solution is easy, as others have said. If you can't afford it or think it's too expensive...don't go. Stay somewhere you feel comfortable with. Other people do not have the same issue with it. In fact last night at 11:00pm I got a message to book a family for a Disney trip. It would be 6 people, 2 rooms, they want the Polynesian resort, 10 day park hoppers, Sea World tickets, all transfers and DDP. They gave me their credit card and did not even ask how much it would be. They just knew what experience they wanted and good for them.

I likely would have been content staying at ASMu my upcoming trip next month (half solo trip/half conference) but since the Caribbean Beach was only $36 more for 5 nights (that's $36 total, not per night) I upgraded and I'm staying at the conference hotel (Dolphin) for convenience during the conference then 3 nights at Beach Club because I like it there. Is it pricier? Sure. Do I care? Not really. I could stay off site for less but that doesn't interest me at all. To me the off site hotels are cheaper for a reason - they don't give me the convenience, accessibility and additional perks of a Disney resort. If I ever decide it's too expensive to stay I have options elsewhere and like I said, when I compare the prices to other things Disney works out cheaper (hmmm...$60 to get into Six Flags for a day and $33.75 per day for a Disney PH?!)