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

[BrianLo]

Travel statistics have risen considerably on a predictable trajectory for 75 years…even as the overall wealth numbers have declined for half of that.

It’s not that less people got to go…it’s that they have less wealth than the two generations prior.

So that looks roughly line and “X” on the Econ flow chart and the lines continue to diverge. That isn’t a great spot to be in when you’re 100% a non essential product.

Yea. That brings it back to the topic more accurately.

A number of posters a few pages ago were taking the millennials don’t have the same affinity versus your millennials cannot afford Disney angle. Two very different topics, one I agree with and one I don’t.

 

[Sirwalterraleigh]

Yea. That brings it back to the topic more accurately.

A number of posters a few pages ago were taking the millennials don’t have the same affinity versus your millennials cannot afford Disney angle. Two very different topics, one I agree with and one I don’t.

I do think booms and X have - generally speaking - the Strongest affinity towards Disney and its brand…
I don’t believe that means they’ve entirely “lost” the generations since…I just think the bonds are not as strong all things being equal.

There has been more bombardment of Disney product the last 25 years as there was prior just wirh technology change. That’s hard to argue. We don’t know for sure what that means going forward and how many issues it may cause?

One thing though you have to appreciate is the the WW2 gen is what got it started: different…more seasoned people…but they had as much appreciation for parks as any when they were still around. I miss them…we all should.

 

["El Gran Magnifico"]

To your point though, will the kids who went 5-8 times as millennials onward become Disney lifers and repeat the same kind of visitation patterns with their kids? Disney was still converting people en mass through the 200x era and through the early 201x years. DVC was still being sold like crazy. So Gen X were still buying the repeat story. Will their kids? This is what Disney is toying with...

That's why you see a lot of pivot in the timeshare market. Fractional ownership doesn't work with millenials nor will it work with the Gen Z'ers. You used to buy a week. And that was your week. Every year. Now you get points.

Interval, RCI - the exchanges (owned by MVW and T&L) are trying to diversify into other areas. Milenials have figured out that you don't need to be an owner to book any of these properties. Often 1200sq ft full kitchen that is still lower than the general Marriott, or Hilton.

You do give up on the ownership perks but then again your not paying an ever rising maintenance fee. But your not locked in.

And maybe I want to stay at Vistana in Orlando and a Hilton Vacation Club in Scottsdale and then go back to a MVW in Park City and then have a pick between the two at Hilton Head. It's a trade off but the flexibility and lack of annual dues seems to be winning.

 

[Ayla]

WDW simply isn't old enough to support a lot more than 2-3 generations of families going... so being limited to a few is kinda by definition You really only have the boomers, their kids, and their grandkids. But especially through the 90s, that kind of generational entrenchment by middle class america is what built DVC.. contributed to DCL being such a success.. and lead to kids who went so much in the 90s that their childhood carried Disney through the next 30 years.

To your point though, will the kids who went 5-8 times as millennials onward become Disney lifers and repeat the same kind of visitation patterns with their kids? Disney was still converting people en mass through the 200x era and through the early 201x years. DVC was still being sold like crazy. So Gen X were still buying the repeat story. Will their kids? This is what Disney is toying with...


Obviously tastes and options evolve.. but that's also why Disney is a brand conglomerate now. Disney isn't just Donald Duck, but Iron Man, Star Wars, etc. They are covering the spread.. and trying to find those new experiences people still want.

I've been saying it for 20years tho, that the competition caught on and undermined Disney's lead. So to your point, I don't think a gen Z kid is as impressed by WDW as a Gen X kid was. They can see a Rainforest Cafe at their local mall...

WDW would be on the 4th generation now, if our family is average (which it is). My parents were Boomers, I'm Gen X, and our kids are in their mid-to-late 20's (so late Millennial/very early Gen Z), definitely old enough to have their own children.

Regarding the bolded, in our family, the answer is no.

 

[flynnibus]

WDW would be on the 4th generation now, if our family is average (which it is). My parents were Boomers, I'm Gen X, and our kids are in their mid-to-late 20's (so late Millennial/very early Gen Z), definitely old enough to have their own children.

Regarding the bolded, in our family, the answer is no.

Yes, but your grandkids aren’t paying for vacations yet they are not much in the terms of tracking their spending habits yet

 

[jah4955]

WDW would be on the 4th generation now, if our family is average (which it is). My parents were Boomers, I'm Gen X, and our kids are in their mid-to-late 20's (so late Millennial/very early Gen Z), definitely old enough to have their own children.

Regarding the bolded, in our family, the answer is no.

My family has 4 generations with WDW (the earliest born during or just before the "Greatest Generation"...although arguably lower-middle class, they were still able to go quite frequently in the '70s) with their kids (who were all adults by the 70s).

My parents, aunts/uncles (silent/boomer), their children, my siblings, and I (X/millennial) went a lot (twice a year most years, sometimes more....all very solidly middle class). (NB, our bi-annual trips were one day at the parks, which was doable b/c we lived nearby and there was tremendous value in the 4, 5, & (ultimately) 10-day passes (in other words: one 10-day pass equaled 5 years of trips for each of us!)

I haven't been for years.

As parents, my siblings (& their children now all under 13) have been a grand total of once with their kids (and all of them live "down the street" from WDW), but they don't plan to return in the foreseeable future, if ever. They are all extremely-hard-working-college/grad school-educated (plus certifications in their respective fields galore).

Main reason (if not only reason): unaffordability.

 

[Ayla]

Yes, but your grandkids aren’t paying for vacations yet they are not much in the terms of tracking their spending habits yet

No grandkids, but yes, you are correct. LOL

 

[flynnibus]

My kids don't have kids of their own yet... nor do they pay their way on our vacations (when they travel with us).. but they all grew up in a Disney family with Disney brands and content. But even after the last parks trip I asked them 'Cruises or Parks?' and they all said cruises. And they aren't even paying the crazy price inflation.

I'm sure they'll take their kids once or twice in the future.. but none of them have any inclination to want to visit the parks on repeat.. if at all.. for themselves. Disney failed to hook them.

I was on the fence about booking a trip just for Galaxy Cruiser opening but was disappointed when the final product was revealed and didn't go. I didn't see SWGE myself in person until this year. After my park visits this year.. I'm finding the product less and less attractive for me and my wife. For my family and kids the parks are an entertainment venue we decide if we want to go visit.. not some ritual. Yet, decorating the tree last night we still cherish the dated ornaments from prior trips and have found memories.

We were never the 'go multiple times, every year' type of family.. but things have definitely erroded even from where they were. I'm more a fan of the product and industry than I am as a customer these days. I just want a lot more 'vacation' in my vacations, and the parks are like a commitment and work much more than they are a whimsical release.
Disney used to count on the idea that as soon as you were leaving.. you were trying to figure out how soon can you get back. Do others even feel that way anymore?

 

[Chi84]

Yea. That brings it back to the topic more accurately.

A number of posters a few pages ago were taking the millennials don’t have the same affinity versus your millennials cannot afford Disney angle. Two very different topics, one I agree with and one I don’t.

Just to clarify again since I started the generation discussion: I included millennials in the group of generations that grew up alongside Disney and have an affinity for it.

In my case my kids are millennials and love Disney but it’s unlikely they would pay for multiple vacations there.

 

[Animaniac93-98]

Disney used to count on the idea that as soon as you were leaving.. you were trying to figure out how soon can you get back. Do others even feel that way anymore?

A lot of people are locked into WDW trips because of their DVC contract

If it wasn't for their timeshare program, how much worse off would WDW be?

It's the only Disney theme park resort globally that is so dependent on them

 

[Ayla]

Yea. That brings it back to the topic more accurately.

A number of posters a few pages ago were taking the millennials don’t have the same affinity versus your millennials cannot afford Disney angle. Two very different topics, one I agree with and one I don’t.

Both can be true.

 

[Angel Ariel]

Disney used to count on the idea that as soon as you were leaving.. you were trying to figure out how soon can you get back. Do others even feel that way anymore?

I preface this by saying I'm not a pixie duster - there's a lot of decisions the company is making that I don't like, and I do agree that what we get for what we pay has gone down a lot over the years.

That said, yes, to an extent I do feel this way still, primarily because of Disney's accessibility for disabilities. I'm not going to go into a whole spiel about it, but Disney is one of the few experiences we've had as DD grows up that I've found both she and I (as her primary caregiver) can truly escape our daily stresses for a week. It's a welcome week of respite for both of us, which is why I look at it this way. Other vacations are nice as well, but places we are less familiar with require more planning (which is then less of a respite experience for me).

Respite is really hard to come by in our day to day lives. We don't live near family, and the friends that we have are in similar places as we are so we are all struggling with respite...and as soon as we have that respite experience, we definitely are looking to see when we can get it again.

(To add to the generational conversation - we are older millennials. Or the "Oregon trail" generation)

 

[Disstevefan1]

I don't think we'll find a cupcake behind a display window with a tiny screen in front of it where we can watch the price change every 5 seconds.

I hope Disney’s finance committee doesn’t read wdwmagic forums for ideas.

 

[HauntedPirate]

A lot of people are locked into WDW trips because of their DVC contract

If it wasn't for their timeshare program, how much worse off would WDW be?

It's the only Disney theme park resort globally that is so dependent on them

There is absolutely nothing forcing you to visit Disney theme parks if you use DVC points for a stay. Rent a car and visit other locations in and around the greater Orlando area.

 

["El Gran Magnifico"]

My family has 4 generations with WDW (the earliest born during or just before the "Greatest Generatoin"...they went quite frequently in the '70s) with their kids (who were all adults by the 70s).

My parents, aunts/uncles (silent/boomer), their children, my siblings, and I (X/millennial) went a lot.

I haven't been for years.

As parents, my siblings (& their children now all under 13) have been a grand total of once with their kids (all of them live "down the street"), but they don't plan to return in the foreseeable future, if ever. They are all extremely-hard-working-college/grad school-educated (plus certifications in their respective fields galore).

Main reason (if not only reason): unaffordability.

My visits have cut too. I'll always remember the WDW of yesteryear and my fondness for it. And I'll still go during some of the various seasons but nowhere near what I used to do.

For me there are other options that are quite frankly better options for spending family time. We just got back from Montreal to take in a few hockey games and some good food, and during most of the year I'd rather take my family to Scottsdale, play a few rounds, take a day trip to the Canyon and Sedona and ride horses over near Wildhorse Pass. Next year planning on nixing MNSSHP altogether in favor of a Savannah trip including Porrell Farms, Family Friendly Ghost Tours, and some historical things.

Disney used to the "it" place. Now it's just an option. And Disney is the one that did that to themselves. Generationally, in about 15 years there will be no pixie dusters. Just people that visit, go home, then plan their next vacation somewhere else.

 

[UNCgolf]

There is absolutely nothing forcing you to visit Disney theme parks if you use DVC points for a stay. Rent a car and visit other locations in and around the greater Orlando area.

While this is true, Orlando isn't exactly flush with interesting things to see/do. It's not really a tourist destination without the theme parks; it would be tough to go there yearly and be entertained if you're not visiting any parks. It would be a bit like buying a timeshare in Houston or Atlanta.

Which is one of the (many) reasons DVC never had any appeal to me; I don't need (or even want) to visit WDW or Universal yearly and there are much better places to go than Orlando.

 

["El Gran Magnifico"]

It would be a bit like buying a timeshare in Houston.

That was a haymaker. Well done.

 

[CAV]

Disney's decisions here aren't just about increasing stockholder value: they know they have to appease both sides. They know they need happy guests to come back and they know that they are willing to accept price increases for a better product.

This one makes me laugh! They couldn't care less if a guest comes back. As long as the can take the maximum amount out of a guest's pocket and some other fool is lined up behind than to do the same.

 

[Raineman]

Every time that I start thinking "Maybe I do want to go back to WDW...just one more time", I find out about something like this, and it reaffirms why I said "I'm never going back" in the first place. Thank you, Disney, for cutting through the tiny bit of pixie dust left in my system and making me think clearly. I'm sure that Mexico and the UK will love the $$ I will be spending in their countries this year, instead of dumping it all on one week in the Mouse-infested swamp.

 

[Disstevefan1]

There is absolutely nothing forcing you to visit Disney theme parks if you use DVC points for a stay. Rent a car and visit other locations in and around the greater Orlando area.

I have wondered how many DVCers are staying at their DVC resort but is going to EPIC?

My thinking is that DVC owners are hard core Disney fans and some may hate Universal because its Universal.