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

jah4955

Well-Known Member
You can still buy date-based tickets in advance. Those day-tickets will have different prices depending on assumed demand, just like it is right now.

Once you buy those tickets, you're locked in. They won't ask for more money at the tapstile.

BUT... if demand is particularly low, Disney may start selling those same dates you bought at a lower price. Which is not unlike offering a discount for those days to fill rooms and parks.

OR... demand is unusually high and the cost of those tickets go up, but it won't affect you. Your tickets are locked in. In fact, it's to your advantage that the cost goes up as demand goes up... it will discourage people from making the park over-crowded.

HOWEVER... if you wait until the last minute to buy day-tickets, you may be pleasantly surprised to see that the normal price has dropped because of soft demand. OR... you'll be steaming mad when you see the cost of those tickets sky-rocket.

This is pretty much what Broadway and airlines do. (Ironically, it was Disney that innovated dynamic prices on Broadway beginning with their own Broadway shows.)

And as mentioned above, this is for rooms and park tickets, not for meals or water.

You may be tempted, then, to get a room outside the Disney bubble. But those hotels are also using dynamic pricing. <sad trombone>

Also, resorts and day-tickets are already dynamically priced, only over a time period of a year. This new dynamic pricing will make it dynamically priced over a time period of a day or two.
I hate gambling....for one because the house always wins.
 

jah4955

Well-Known Member
Maybe the uproars will make Disney quickly "retract" their plans as Wendy's did their quick "about-face?" 🤷‍♀️

Another recent example of quick about-face (though not "dynamic pricing"): the proposed "Cracker Barrell redo."
 

DrStarlander

Well-Known Member
This overall style of pricing is "hostile pricing." It introduces a dynamic of stress, fear, manipulation, buyer's remorse, and inequity/injustice (i.e., two guests in a queue chatting about the discrepancy in how much they paid to be there, enjoying the exact same product). In short, it takes that business-customer relationship and injects a dose of hostility and endistancement.

Will Disney make more money? Yes. Will customers feel better or worse about the Disney company? They will feel worse. There is zero chance this will lead to a net improvement in customer sentiment for the company and brand. And this hostility will also drive even more customer sensitivity and criticism to lapses in quality, maintenance, ride up-times, etc. The more mercenary Disney is, the more mercenary the public will be.
 

brettf22

Premium Member
As with every increase in Disney’s planning process complexity, I wonder what third party applications will spring up to assuage perceived concerns about dynamic pricing?

I’m sure Mr. @lentesta and his gang are already planning an addendum to the Crowd Calendar to predict the optimum time to purchase to get the lowest price.
 

potzie

Member
I still don't see the correlation between expecting that what works at DLP will work at the domestic resorts. Consumer's leisure spending habits differ greatly and Americans are more cost conscious and responsive to these revenue enhancement schemes.

Or they're just gaslighting everyone to think that it's not been a problem at DLP when it has been, with no one having any way to independently verify Hugh "G" Johnston's claims.
I'm not sure I would say American's are more cost conscious. Have you seen the line-ups for Popcorn buckets and the craziness that was Taylor Swift tickets? I'd say Americans (for the majority) are a wants based consumer. They will pay for the things they want and worry about paying for it later.
 

Trauma

Well-Known Member
I'm not sure I would say American's are more cost conscious. Have you seen the line-ups for Popcorn buckets and the craziness that was Taylor Swift tickets? I'd say Americans (for the majority) are a wants based consumer. They will pay for the things they want and worry about paying for it later.
That only works for the people who think like this until their credit cards are maxxed.
 

monothingie

Dynamically Raising Prices Excites Me
Premium Member
This overall style of pricing is "hostile pricing." It introduces a dynamic of stress, fear, manipulation, buyer's remorse, and inequity/injustice (i.e., two guests in a queue chatting about the discrepancy in how much they paid to be there, enjoying the exact same product). In short, it takes that business-customer relationship and injects a dose of hostility and endistancement.

Will Disney make more money? Yes. Will customers feel better or worse about the Disney company? They will feel worse. There is zero chance this will lead to a net improvement in customer sentiment for the company and brand. And this hostility will also drive even more customer sensitivity and criticism to lapses in quality, maintenance, ride up-times, etc. The more mercenary Disney is, the more mercenary the public will be.
Dynamic pricing models work great for airlines and ride share because their use is not really optional when you need to get from one point to another.

No one needs to (Other than Disney Adults and social media shills) need to go to a Disney park. Hostile pricing by Disney will result in more people evaluating alternate options.

This is once again more squeezing for short term gains at the expense of enhancing the brand for long term growth.
 

monothingie

Dynamically Raising Prices Excites Me
Premium Member

Disney CFO Highlights Strength of Higher-Income Guests as Key Driver Behind Parks Performance​

1763660969602.png
 

KDM31091

Well-Known Member
That only works for the people who think like this until their credit cards are maxxed.
Yup. And as the prices get higher it takes less to max out those cards. A lot of people simply live beyond their means. We all know Disney things can become a compulsion where the person has to go or has to have the new popcorn bucket even to their financial detriment.

Even higher income guests will hit a breaking point eventually. They’re being greedy and short sighted just catering to the wealthy.
 

lentesta

Premium Member
As with every increase in Disney’s planning process complexity, I wonder what third party applications will spring up to assuage perceived concerns about dynamic pricing?

I’m sure Mr. @lentesta and his gang are already planning an addendum to the Crowd Calendar to predict the optimum time to purchase to get the lowest price.

My understanding of the DLP system is that prices cannot go down. There's literally no code to allow it to happen.

So the best time to buy is always going to be "now".

That also would seem to help management, especially with staff forecasting and discounting.

There have to be threshold points in the park like "Adding X more guests results in $Y more labor costs and Z changes to incremental standby wait times."

Now they can model out how much they need to raise dynamic prices to make those labor costs and incremental wait times more palatable to shareholders.
 

lentesta

Premium Member

Disney CFO Highlights Strength of Higher-Income Guests as Key Driver Behind Parks Performance​


I say Disney's doing dynamic pricing and Disney tells third parties I don't know what I'm talking about.

I say Disney targets the top 20% of American households by income, and Disney commissions an entire study to refute it.

Then their CFO just ... confirms what's been said? I really have to wonder if this is planned.
 

monothingie

Dynamically Raising Prices Excites Me
Premium Member
My understanding of the DLP system is that prices cannot go down. There's literally no code to allow it to happen.

So the best time to buy is always going to be "now".

That also would seem to help management, especially with staff forecasting and discounting.

There have to be threshold points in the park like "Adding X more guests results in $Y more labor costs and Z changes to incremental standby wait times."

Now they can model out how much they need to raise dynamic prices to make those labor costs and incremental wait times more palatable to shareholders.
HAHAHAHA can you imagine the suckers thinking that prices would actually go down! At least with United Airlines the prices do go down occasionally.


They really think their guests are complete...

Good Morning Smile GIF by DreamWorks Animation
 

MisterPenguin

President of Animal Kingdom
Premium Member
Regarding "Yield."

Disney's C-Suite has been discussing 'yield' for at least a decade. As long as I've been following their Quarterly calls, it invariably comes up. In fact, if Disney doesn't mention "getting a higher yield," the investors on the line question them about "getting more yield" and "have you hit the cap of yield" and "yield yield yield."

If anyone is shocked that C-Suite is mentioning yield... your pearl clutching is probably a few decades late.
 

Sirwalterraleigh

Premium Member
Hugh "G" Johnston said the quiet part out loud. They hate and have nothing but contempt for you the guest.
All of us…the hatred is equal

Whether you go once for the brats and buy jockeys for a week

Go once every 3 years and happily feel special booking your fastpasses in advance on the toilet

Or have had your kids spend a sizeable chunk of their youth In the park while you people watch

We’re all the same…disposable assets
 
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Sirwalterraleigh

Premium Member
My understanding of the DLP system is that prices cannot go down. There's literally no code to allow it to happen.

So the best time to buy is always going to be "now".

That also would seem to help management, especially with staff forecasting and discounting.

There have to be threshold points in the park like "Adding X more guests results in $Y more labor costs and Z changes to incremental standby wait times."

Now they can model out how much they need to raise dynamic prices to make those labor costs and incremental wait times more palatable to shareholders.
…so what you’re saying is…Spirit Airlines is more customer friendly? 🤔
 

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