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

[Sirwalterraleigh]

I was always taught it was 8X harder to "win someone back" than winning them over for the first time.

No doubt…but that’s banned from the curriculum at Stanford

 

[Ayla]

Surge pricing at Wendy's never happened.

In Feb of 2024, they announced they were planning to introduce it in 2025, but then there was indeed a PR backlash, and they never did it.

If one were to blame that controversy on Wendy's closing stores almost 2 years later, then why is MacDonald's and other fast food chains also closing stores?

https://www.thestreet.com/restaurants/wendys-isnt-the-only-us-burger-chain-closing-dozens-of-restaurants

@GhostHost1000 never said it was implemented.

I don't patronize businesses who believe I'll pay whatever price, regardless of value. I'm sure I'm not alone in that.

 

[Casper Gutman]

Exactly that. If you delay booking for 2-3 months the total price could be different.

There’s probably a tad over reaction on this one.

Based on experience from the Universal model it’s much worse then this. Prices change wildly minute to minute. They fluctuate dramatically, not simply changing a few dollars here or there. They may also fall sharply as the actual date approaches - I ended up having to rebook one Uni hotel stay four times because the price kept falling dramatically while having to cancel another because I needed to change the dates slightly and the rate had almost tripled. It’s madness and profoundly annoying.

 

[JD80]

Huh?

Saying I hope Disney stops moving the goal posts on what kind of guest they consider to be profitable before they get priced out is a terrible thing to say?

I guess you're welcome to your own opinion.

Sorry. I read it differently meaning that you hoped it changed so they would get priced out as well.

My mistake. I need more coffee.

 

[JD80]

Uh. Nowhere did I say they are closing stores because of their announcement of dynamic pricing. I just stated facts. They announced they were at one time, got a lot of backlash, and are closing stores now. That’s it. No mistake made and no forgiveness needed but you can spin it however you want if it makes you feel better.

That is a whole lot of ignoring context and inference on your part. Wowee.

 

[GhostHost1000]

That is a whole lot of ignoring context and inference on your part. Wowee.

Just stated facts bro. You can read into it however you wish to get to your agenda

 

[Mr Ferret 75]

Just getting this meme in now before the price spikes.

 

[WorldExplorer]

To recap, Disney is considering unironically doing this;

 

[MrPromey]

Sorry. I read it differently meaning that you hoped it changed so they would get priced out as well.

My mistake. I need more coffee.

No problem!

I agree though, that would be a particularly evil take if it's what I meant.

 

[Sirwalterraleigh]

Based on experience from the Universal model it’s much worse then this. Prices change wildly minute to minute. They fluctuate dramatically, not simply changing a few dollars here or there. They may also fall sharply as the actual date approaches - I ended up having to rebook one Uni hotel stay four times because the price kept falling dramatically while having to cancel another because I needed to change the dates slightly and the rate had almost tripled. It’s madness and profoundly annoying.

How about if you look it a couple times and the AI “shark” smells blood in the water and adjusts you just because?

 

[John park hopper]

Once a big fan not any more. Disney has made a Disney vacation so complex and now with dynamic pricing it's impossible to plan ahead. Disney has taken the word SUCKS to a new level

 

[monothingie]

Once a big fan not any more. Disney has made a Disney vacation so complex and now with dynamic pricing it's impossible to plan ahead. Disney has taken the worst SUCKS to a new level

Well you certainly can plan on paying more...

I'll show myself out.

 

[Vegas Disney Fan]

Congratulations Disney on modeling your hospitality business based on United Airlines!

Please tell me how guests will love the increased costs and higher prices!

I think you give Disney too much credit comparing them to United, I think they’re closer to Southwest at this point, a company people used to love for being unique and providing great customer service but has now incorporated other airlines business models and who’s (formerly) loyal customers now complain non stop about how they’ve ruined the company.

United has stuck with their proven business plan and you know what you’re getting when you book them, Disney has been on a downward spiral for a decade, they’ve gone from top tier to middle tier, and are unfortunately on their way to being low tier, give them 5 more years and they’ll be comparable to Spirit airlines.

 

[el_super]

They gave away the parks too cheap for far too long? Bob is that you?

Yes they did. Which is why we have seen them pull back on discount programs like the Annual Passes. People going multiple times per year, which I would assume the general populace of this board overly represents, end up devaluing the whole of the experience. No matter how good the Haunted Mansion is, there are only so many times you can go on it before the effective value of a ride becomes $0.

Pricing people out in this context can also mean, reducing visits from 5 times per year to just 2. Same effect.

At this point, even with all the price increases and the supposed downturn in service, they're still the #1 visited park right? So demand is still exceptionally high.

Also I don’t care if they spend $80B on new attractions, if they don’t deliver quality to justify price increases, many more will stop going. The higher the price, the higher the expectation, and recent things delivered like Zootopia and Tiana’s isn’t going to cut it.

... or maybe it will and the perceived value of new stuff is entirely subjective? Again: they're still #1.

 

[jah4955]

I think you give Disney too much credit comparing them to United, I think they’re closer to Southwest at this point, a company people used to love for being unique and providing great customer service but has now incorporated other airlines business models and who’s (formerly) loyal customers now complain non stop about how they’ve ruined the company.

United has stuck with their proven business plan and you know what you’re getting when you book them, Disney has been on a downward spiral for a decade, they’ve gone from top tier to middle tier, and are unfortunately on their way to being low tier, give them 5 more years and they’ll be comparable to Spirit airlines.

some good timing for this conversation imo: They just released this video & I'm like "Sean, Sean, Sean...this is only a part of the problem...and, while never excused, WHY is everyone in a bad mood?" (not being political, just being honest).

 

[SamusAranX]

Suddenly those filthy APer’s don’t look so silly for buying AP’s (locking in their entry tickets for 12 months), bringing in their own food (no way to dynamically charge them for food), et al.

I can’t seem them getting rid of APers anytime soon. But with dynamic pricing? Yeah they’ll ban food from outside again, and the reservation system won’t go away ever. Because if they see a particular day is selling fast, why would they leave slots for us bloodsucking parasites?

 

[SamusAranX]

The more I think about it the more gross it is they are essentially saying they want to squeeze guests for all they’re worth because, by Disney’s own fault, there is nothing major new in the parks right now and people will logically delay trips.

Geez the last point didn’t even occur to me.

They could implement high surge pricing when the opening week is announced for Monsters Inc Land….unprecedented demand!

 

[Tha Realest]

Geez the last point didn’t even occur to me.

They could implement high surge pricing when the opening week is announced for Monsters Inc Land….unprecedented demand!

Yes. Or —both!

There is already some indication that DL calendars preemptively bump the tier prices of tickets when a new attraction or show is expected to be released. I could see both a higher tier price *and* surge price on top of that.

 

[HauntedPirate]

some good timing for this conversation imo: They just released this video & I'm like "Sean, Sean, Sean...this is only a part of the problem...and, while never excused, WHY is everyone in a bad mood?" (not being political, just being honest).

That’s not a discussion that can be held in these forums.

 

[el_super]

That’s not a discussion that can be held in these forums.

Why not? Seems like a perfectly reasonable thing to suggest that low prices and high demand put a lot of stress on the system/industry and created a widening gap in customer expectations and behavior. Pretty easy comparison to make to theme parks.