News Disney Launches Annual Pass Promo with $25–$100 Gift Card Perks

[nickys]

I mean, why not just lower the AP prices and or ticket prices. They have out paced inflation for years.
Start correcting.

Because this way they can extend or stop the promotion whenever they want. Not to mention that inevitable increase round about October….

 

[Dad 2 M & M]

So what you’re saying is…doubling them in the span of about 5 years assuming there was no price ceilings for your customers may not get bob the Nobel prize in wall street that he’s been gunning for?

What do your numbers have as far as target population of peeps that would be 1st AP purchasers?

Let us know….

And….it’s been a minute….you and your peeps well?

 

[Basil of Baker Street]

Hey. As long as they are not offering free PB&J sandwiches to all AP Holders who enter the parks.

That would send Donnie over the edge.

 

[Sirwalterraleigh]

I'm surprised that they wouldnt include photo pass which doesnt cost them much, and the Water Parks instead of a gift card. Also an extension on the yearly pass for the same price as a yearly pass was always nice. Marie

They know that wouldn’t move the needle at all…this might barely a little


They also could be prepping to soften their “blow” if the quarterlies aren’t great…

Getting ahead of it to say they’re “taking steps” while actually giving up little to any money…

Wall Street likes that…and Bob has to be well liked by them to secure his future as a tech conglomerate megahead for the next 20 years

 

[Sirwalterraleigh]

What do your numbers have as far as target population of peeps that would be 1st AP purchasers?

Let us know….

And….it’s been a minute….you and your peeps well?

Just to be clear…I don’t have “numbers”…just a sense into their business, some experience…and most notably a memory that runs on jet fuel that annoys EVERYONE around me (not just everyone here )

I can predict their next moves and interpret what’s going on behind those moves (unsaid…which is why everyone here gets buttburn…thinking a “public” company is required in anyway to tell people what they’re thinking ) with some success.

Everyone is good…how have you been?

 

[lentesta]

@lentesta have we seen a promo like this before for annual passes? What's your take on this?

I can't find anything similar to this as far back as the financial crisis of ~2008.

My initial thought is that it's a hedge against extended slumps in international and domestic travel heading into 2026.

Disney and Orlando have thusfar been one of the few exceptions to an almost-nationwide drop in tourism.

One key reason for that is the parks' location in large states - they can draw from huge pools of locals to make up volume. For example, we've seen Disney do 3- and 4-day discounted tickets for Florida residents for a while now.

But at some point, getting those locals to buy day tickets for multiple trips is going to be a harder sell. And Disney needs those locals to make multiple trips until the new Phase 1 attractions are open. For some of those families, the discounted AP may be enough to commit.

We'll know a lot more after Comcast's earnings call this week, and Disney's on August 6.

 

[Cmdr_Crimson]

They could lower AP's back to $850 and have a reason to go...
TEAM Disney Orlando:

 

[flynnibus]

What Disney should be offering is promos like they did with the Costco SoCal offer..

Offer bundles with free 'Disney dollars' for buying tickets that need to be used within the time window. Throw in $100 in Disney GCs for buying a 4 or 5 day pass.. or something else strategically picked to lure an 'extra trip' out of their key demos and that should work.

Promos on AP purchases are a bit funky.. they don't lead to much immediate impact.. It's about locking predicted money in for the next 12 months... and many of your demo that would buy, are already on a cycle that isn't compatible with your promo. So I agree with Len's take, this maybe more of a hedge move than a 'boost' move.

I do think the throwing in Disney bucks for multi-day tickets (of the strategically picked type) or room discounts are far more attractive to people for getting them off the fence and adding another unplanned trip. Maybe room discounts are the best since 1) they don't cost anything and 2) are compatible with both AP and adhoc ticket buyers.

 

[Sirwalterraleigh]

Disney and Orlando have thusfar been one of the few exceptions to an almost-nationwide drop in tourism.

Are we sure they aren’t powdering their own donuts a little there…

Remember that both travel watchers and Orlando in particular allows lean towards “bigger and better!” If possible.

The raw Orlando numbers can indicate no “drops”…but what if the ripple effect is people going from the higher cost traps to the ones further distances from LBV? They could still show “strong” overall numbers but mask that it’s trending towards more cost savings? Is that possible?

I know Disney gives nothing concrete to anyone (frankly not even their stockholders) and that they are absolutely not in a position to suffer another stock tank considering which baskets their eggs currently sit it. If a hard recession hit…they would he racked to a level never seen considering their over dependence on travel.

we may actually be in - it can be postulated - a new hybrid of recession. Where the indicators are obselete. ie people are still employed…but cut spending simply because they run out of money…

Similar to when they bred the velociraptors.

Did Bloomberg advise you last week that the interview was 100% about Netflix? Which I loved - by the way. They wanted ZERO part of Disney talk and even tossed a couple of veiled overpriced quips their way.

We'll know a lot more after Comcast's earnings call this week, and Disney's on August 6.

Agree…and I expect a three ring circus featuring “multi dimensional math” there.

 

[HauntedPirate]

What Disney should be offering is promos like they did with the Costco SoCal offer..

Offer bundles with free 'Disney dollars' for buying tickets that need to be used within the time window. Throw in $100 in Disney GCs for buying a 4 or 5 day pass.. or something else strategically picked to lure an 'extra trip' out of their key demos and that should work.

Promos on AP purchases are a bit funky.. they don't lead to much immediate impact.. It's about locking predicted money in for the next 12 months... and many of your demo that would buy, are already on a cycle that isn't compatible with your promo. So I agree with Len's take, this maybe more of a hedge move than a 'boost' move.

I do think the throwing in Disney bucks for multi-day tickets (of the strategically picked type) or room discounts are far more attractive to people for getting them off the fence and adding another unplanned trip. Maybe room discounts are the best since 1) they don't cost anything and 2) are compatible with both AP and adhoc ticket buyers.

SoCal? My wife bought one in Colorado. That's an actual discount and deal - $449 for a 3-day PH, LL, plus the $30 dining gift card when the ticket and LL pass itself is $600 (at least for the dates she needed).

 

[Sirwalterraleigh]

They could lower AP's back to $850 and have a reason to go...
TEAM Disney Orlando:

The idea that $850 is considered a great deal is still a bit baffling to be honest

“2015-2025: when we all lost our minds”

But I totally ageee with Fido and everyone…they will NEVER lower a base price

Sucks when you’re above the price ceiling that you told investors didn’t exist, huh?

 

[HauntedPirate]

The idea that $850 is considered a great deal is still a bit baffling to be honest

“2015-2025: when we all lost our minds”

But I totally ageee with Fido and everyone…they will NEVER lower a base price

Sucks when you’re above the price ceiling that you told investors didn’t exist, huh?

This is the end result when a merchandise peddler gets installed as Parks head. Ticket prices will never be reasonable again.

 

[lentesta]

The raw Orlando numbers can indicate no “drops”…but what if the ripple effect is people going from the higher cost traps to the ones further distances from LBV? They could still show “strong” overall numbers but mask that it’s trending towards more cost savings? Is that possible?

That's possible. Not to disrespect the airport audio of Orlando Mayor Buddy Dyer, but I'm trying to figure out what else people would come to Central Florida for, if not theme parks. Legoland is wonderful, but is it a destination?

we may actually be in - it can be postulated - a new hybrid of recession. Where the indicators are obselete. ie people are still employed…but cut spending simply because they run out of money…

There's enough evidence for this in how Disney's pricing value resorts and food. Those prices have remained constant or lower, adjusted for inflation, since 2018.

As a side note, Disney's update to the Be Our Guest menu last week was clearly meant to increase margins at that restaurant, which I think we both agree has fallen on hard, hard times. Swapping out beef tenderloin for hangar steak is one example.

Tickets had been rising faster than inflation for many years (33% over inflation since 2011). So ticket discounts would be another domino to fall, and that would be huge. But I need to see a few years of inflation-or-less rate increases to believe that's a trend.

 

[Doberge]

Haven't read 4 pages so maybe it's been discussed but this changes the renewal math.

Right now there's a 13.9% renewal discount for sorcerer pass, and 13.9% of 365 days is 50.7 days, so math had worked out that if there are 51 days or more before next trip that it's usually better to skip renewing and paying for days not used, and to buy new for next trip. (math here doesn't take into account trying to guess price increase timelines).

The gift cards on new passes will shorten the renewal vs new pass timeline. The $75 gift card is worth $70.42 before tax, and this effectively reduces the renewal discount from 13.9% to 7.38% (($150-$70.42)/$1079). This lowers the "number of days after expiration" to 26.9 days. So if buying sorcerer pass and next trip is more than 27 or more days after expiration, you are better off letting expire and buying a new pass.

That said, most people aren't thinking about this butf you are I hope that helps.

 

[Liloandstitch3]

If you don’t mind my asking…how far in advance did you buy them?

Within the last month

 

[Fido Chuckwagon]

other than extended time such as 15 months for a yearly price,

That would be a better deal for most than the gift card.

My understanding for that was that it was a legal thing, as each state has it's own rules on that and a contract that was set up in Florida may not be binding for a NY state resident as a for example. I didnt get this as an official answer though so it may not be correct. Marie

It’s not this. Universal Orlando sells out of state annual passes to residents of all 50 states on a payment plan with no problem.

The reality is that Disney doesn’t sell in this fashion because they don’t want to, and they haven’t had to previously. They probably have some fear that people going on a “once in a lifetime Disney trip” will purchase an AP on a payment plan and then stop paying after the trip because they don’t plan on going again. They could fix this by using the Universal method of requiring a 50 percent down payment (followed by monthly payments), but again, they don’t want to. They may need to reassess.

 

[wannabeBelle]

That would be a better deal for most than the gift card.

I agree and think that would encourage more spending in terms of additional trips, hotel stays, meals at the parks and Disney Springs, etc. That would seem like more of a win for Disney than this, but we shall see. Marie

 

[Sirwalterraleigh]

Within the last month

Oh that stinks…and when are you gonna activate them?

I’m kinda using this to make a point…which is I’d advise people not to buy them until as close as you can…incase of discounting.

Have fun with it…and maybe give them a call to see if they’ll retroactive the promo or give you something else? Doesn’t hurt to ask

 

[HauntedPirate]

At the risk of scouring 4 pages...

Does this translate to the MEANEVILFREELOADING© Annual Passholders will all be disintegrated like Skyliner passengers in the oppresive, record-breaking July Florida sun and they will never again be bringing homemade PB&J sandwiches and bottled water into the parks and eating on tables while taking up premium parade and fireworks viewing spots?

I'll show myself out.

 

[nickys]

At the risk of scouring 4 pages...

Does this translate to the MEANEVILFREELOADING© Annual Passholders will all be disintegrated like Skyliner passengers in the oppresive, record-breaking July Florida sun and they will never again be bringing homemade PB&J sandwiches and bottled water into the parks and eating on tables while taking up premium parade and fireworks viewing spots?

I'll show myself out.

No, quite the opposite. There will be thousands, hundreds, more of them.
And …….
then they’ll use the gift card towards their next annual pass.