News Annual Pass price increases June 2019

[Polite]

I’ve been on quite a few. Some of the lines - carnival in particular - are down due to lack of investment as the cruise industry was down for 10+ years. Service on Norwegian sucks...

Others like celebrity and princess are definitely superior to Disney but at a premium. Still less than Disney though.

I’m a big fan if what royal Caribbean is doing. They’re new ships and enhancement programs are amazing. Coco cay just opened and looks to easily top castaway.

Disney is a good line. Ships are great. I’d say the food is average...solid but they are falling behind bigtime as the competitors continue to add much more specialty dining.

The problem with Disney is the price. It’s often 2x more and they can’t make up for that kinda value for quality gap.

Just me

You are definitely paying a price for the quality. With both DCL and getting back on topic of the AP price increases, folks have to make a decision if it's worth parting with their money for either of them. Each family is in a different place financially, has different goals, and different wants on how to spend their discretionary income, it's ultimately up to each family to decide whether it's worth it to them to spend the money on Disney. My hunch, we will probably see minimal change in guest behavior this year; however, this will eventually reach a tipping point, especially once the economy takes a hit. I don't think we are at that point yet but we shall see.

 

[Sirwalterraleigh]

You are definitely paying a price for the quality. With both DLC and getting back on topic of the AP price increases, folks have to make a decision if it's worth parting with their money for either of them. Each family is in a different place financially, has different goals, and different wants on how to spend their discretionary income, it's ultimately up to each family to decide whether it's worth it to them to spend the money on Disney. My hunch, we will probably see minimal change in guest behavior this year; however, this will eventually reach a tipping point, especially once the economy takes a hit.

Agree...back on topic. We can talk cruiselines on another Thread and time.

But consider this: you may be paying a premium just for the name? The “D”...not the quality

And recessions are the ultimate - and needed - equalizers when it comes to wdw pricing. Always have. They serve a key function in the relationship.

But this has been talked about upthread:

They did NOT reduce prices in the last down. Which was a novel and crazy move. They increased them and discounted them more. Shrewd but short term. Robbing Peter for Paul John and ringo.

Prices can never and will never be reduced in the true sense for an operation like Disney. So they’ll discount.

But what if - contrary to what they think - people won’t be able to take 30% discount rates of the current prices and are instead reset to only being able to stomach the price of the last recession? Which is 50 or more % off the current price?

They can’t do it. Flattens the numbers and run on the stock down to $20 again. Kaboom.

The first sign will be easy: bob heads for the hills of sun valley. If he’s wise he’ll do i six months earlier than he has to to avoid the stench when the bottom falls out.

We shall see.

 

[BoarderPhreak]

Say what you will about DCL but they have what, 3 new ships coming out over the next 3 years? Business must be doing pretty well.

That's true of the entire industry, though - and Disney is the slowest expanding in the bunch. Still good, absolutely. Though I really have to wonder when we'll reach saturation of the market. We must be getting pretty close by now, and the backlash is already well underway with at least half a dozen global destinations curbing "overtourism" (e.g. Venice, Amsterdam, etc.).

 

[KevinPage]

Bob Chapek 101: Announce Platinum only Galaxy Edge previews, get Gold people to upgrade. Jack up the prices.

As a Silver AP holder I’m hoping they eventually announce previews for us lowly “peons”

 

[Sirwalterraleigh]

That's true of the entire industry, though - and Disney is the slowest in the bunch. Still good, absolutely. Though I really have to wonder when we'll reach saturation of the market. We must be getting pretty close by now, and the backlash is already well underway with at least half a dozen global destinations curbing "overtourism" (e.g. Venice, Amsterdam, etc.).

Ok...I promise the last cruise thing but it’s important in the context of their park business as well.

This management waits far too long to respond. We see that in domestic parks now and have watched it play in Paris and Hong Kong.

They wait to get caught and even eclipsed and use the D as collateral to then slowing stretch out real reinvestment. It has worked - can’t deny that. But little guarantees.

So I do see that happening in cruse line potentially. Waiting too long to up the game and evolve. With competition actively pushing the boundaries - all of a sudden a week on the wonder or dream could look like a huge disappointment overnight.

But where they have an advantage there over parks is that their competitors are wrecked in a crash. Cruiselines are destroyed and dcl has far more insulation from that. It’s actually part of the brilliance of it.

They can weather that storm better with limited fleet and outlays.

 

[BoarderPhreak]

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But where they have an advantage there over parks is that their competitors are wrecked in a crash. Cruiselines are destroyed and dcl has far more insulation from that. It’s actually part of the brilliance of it.

They can weather that storm better with limited fleet and outlays.

Agreed. There's no need to compete directly with the established cruise lines. Each cruise line has a different vibe (e.g. family vs. couples vs. singles) and Disney is still in its own category.

 

[Chef Mickey]

So has FAANG. It's all fun and games - until the next recession. Then we go BANG.

Facebook, Apple and Google are so profitable and have so much cash, they can withstand a recession too. They are also trading at reasonable multiples.

Amazon and Netflix are a little scarier.

 

[Sirwalterraleigh]

Facebook, Apple and Google are so profitable and have so much cash, they can withstand a recession too. They are also trading at reasonable multiples.

Amazon and Netflix are a little scarier.

It’s funny you site apple...which has had a very public multi year struggle with the competing closing the gap on its main product as they charge more for an old product

 

[BoarderPhreak]

It’s funny you site apple...which has had a very public multi year struggle with the competing closing the gap on its main product as they charge more for an old product

Apple has a bunch of problems. As far as the iPhone, the market is saturated and people don't upgrade as often. Phone prices have essentially peaked. China tariffs. Shifts in markets and supply chains.

Funny, not that long ago there were "rumors" (more like wishful thinking) that Apple would buy Disney. Cash.

 

[tirian]

Seem to be jumping the gun here. It would make a bit more sense once they successfully open Star Wars Land, MMRR, and Rat. For now, it seems it may hurt the whole, “summer is going to be dead because nothing is opening! Please please please please please come!”

I wonder how many will pay it to possibly see the second SWGE first. They should have announced preview dates if they want people to buy passes.

Exactly. Chunks of their parks are under construction, and Disney is increasing prices to charge today’s guests for attractions that will open in the future.

Can you imagine the outcry if 1970s Disney jacked up the MK’s admission because of future plans for Epcot?

The company is squandering five decades of public goodwill with a chain of constant price increases and overpriced hotels and food. But attendance keeps rising, and I don’t know if that’s a sadder comment on the public or the power of nostalgia.

 

[MisterPenguin]

I just posted their operating income. They did do just fine, earning $1.4B in their worst year during that period. That was only a 25% drop and all things considered, was admirable and absolutely the definition of doing “just fine.”

It also had almost everything to do with the global economy and not Disney’s pricing strategy.

Check out the green bars for profit. Disney did better during the Great Recession than five years prior to that.

 

[BoarderPhreak]

BTW... Have y'all noticed that reusable bags all went up a buck each? They were $1.00/1.50/2.00 but now they're $2.00/2.50/3.00. Have a magical day!

 

[note2001]

BTW... Have y'all noticed that reusable bags all went up a buck each? They were $1.00/1.50/2.00 but now they're $2.00/2.50/3.00. Have a magical day!

Darn it Disney! It's going to cost us a dollar more to smuggle our kids into the park now? Is there no justice?

 

[Sirwalterraleigh]

Exactly. Chunks of their parks are under construction, and Disney is increasing prices to charge today’s guests for attractions that will open in the future.

Can you imagine the outcry if 1970s Disney jacked up the MK’s admission because of future plans for Epcot?

The company is squandering five decades of public goodwill with a chain of constant price increases and overpriced hotels and food. But attendance keeps rising, and I don’t know if that’s a sadder comment on the public or the power of nostalgia.

And why would they squander that? That’s so easy it’s almost rhetorical

But they’re not charging for things yet to open. They are setting a new floor from which to increase those prices once they do open. Not moving the goalposts...building an entirely new field

 

[xdan0920]

as out of home entertainment experiences, they absolutely are the same

Nah, not the same at all. What percentage of the population sits at home thinking....

"Should I go see Kenny Chesney or take the fam to Disney World for a week?"

One of these things is a night out, one of these things is a vacation.

 

[RustySpork]

Nah, not the same at all. What percentage of the population sits at home thinking....

"Should I go see Kenny Chesney or take the fam to Disney World for a week?"

One of these things is a night out, one of these things is a vacation.

Exception being when you're a local, in that specific scenario it is exactly the same.

 

[monothingie]

Check out the green bars for profit. Disney did better during the Great Recession than five years prior to that.

View attachment 382376

Is this TWDC as a whole or P&R broken out?

 

[xdan0920]

Exception being when you're a local, in that specific scenario it is exactly the same.

No. They aren't. I am local to Six Flags Great Adventure. I have never in my life equated a trip to the amusement park with a trip to a concert. It's the height of silliness.

 

[RustySpork]

No. They aren't. I am local to Six Flags Great Adventure. I have never in my life equated a trip to the amusement park with a trip to a concert. It's the height of silliness.

What if you drive to the amusement park for a concert? Not equating it yourself doesn't mean that it can't equate for others.

 

[xdan0920]

What if you drive to the amusement park for a concert? Not equating it yourself doesn't mean that it can't equate for others.

It doesn't equate because they aren't the same. Concerts are not theme parks. You can't just lump together anything "entertaining" into one bucket. You already know this though, you are just being argumentative. A round of golf doesn't equate to a Billy Joel concert or a night at the Borgata or a day at Hershey Park. These are all vastly different experiences that should not be compared.