Are WDW tickets overpriced? An analysis.

[JimboJones123]

Okay, just keep in mind that the $27/day price for the 10-day pass is without the "no expiration" option. if you want to use the days on multiple trips, the price jumps to $45/day.

You can see that Disney has been very clever with the pricing. The longer tickets, as Jimbo points out, charge you less per day the more days you get, dramatically so. But the "no expiration" option actually charges you more per day the more days you get. That is, on a 4-day ticket, non-expiration is $11.25 per day. On a 10-day, it's $18 day. I'm sure it's to thwart the very thing you are thinking of, getting a 10-day ticket to make two five-day trips or something like that.

This isn't a direct reply to you Slowjack. Just a general comment.


Hey, if you don't want to buy in bulk at discount, turn in your Sams and Costco cards. Also say farewell to those 24 packs of soda. Go ahead and put in the 60 cents per can in th machine on your way out the grocery store, or buy 15 of the $1.39 20 oz sodas in the cooler. Stores dig charging you $1.39 for what cost them 20 cents. Oh, and don't use those free refills they give you at all the fast food places anymore. And just because your car gets better mileage using the top gear on the freeway doesn't mean you should take it out of 2.

 

[raven]

I'm not suggesting that Disney lower the ticket prices, for example. I just think the difference in prices from then to now is large enough to warrant discussion.

What about gas? The cost of living? Rent? Buying a home? Electronics? Food? Air tickets? Buying a car? Clothing?

Everything has gone up since 1983, not just WDW ticket prices.

 

[sbkline]

I can see all the arguments, but I also can't help thinking why it can't be much simpler than that. As a seller of certain items and services myself, I wonder if there is just an argument for saying 'that is the price i have made up - do you want it or not?' - people are asking if Disney can justify the price. I wonder, do they have to?

They do if people are wondering whether or not they are willing to pay the price. Yes, they have a right to ask whatever price they want, but they have to be able to make sure that they can convince alot of people that it is worth the money.

You mentioned that you yourself are a seller of certain items and you mentioned the argument of "this is the price I have made up-do you want it or not?". That's a fair argument, but it's also a fair argument to say "I want it, but I don't want it THAT bad, and it's not a necessity, so take your outragous price and your product and stick it in your ear". And if enough people have that attitude, you're gonna be forced to lower your price or go without any revenue.

So ya, there comes a time that a company DOES have to justify their price because, just as they have a right to set their price, everyone else has the same right to laugh in their face and walk off. And since WDW is customer oriented, they have to make sure that they can justify their prices to at least the majority of potential customers, or else they aren't going to make the profits that they want.

Now I'm not saying that WDW has reached that point and I'm not saying I'm complaining about their pricing. I'm just saying that it's not so simple as saying that they have a right to set their price and they have no obligation to justify it. Because whether we're talking about WDW wanting to "sell" me a vacation, or a car dealer at Sleazy Sams wanting to sell me a car, I need to be convinced that the price they are giving me is reasonable. Reasonable meaning that the price covers their costs as well as giving them a reasonable profit (which is why they are in business after all). But if that car cost Sleazy Sam 1,000 bucks, he needs to justify to me why he's selling it for 12 grand. And if he can't justify that to me, then maybe I won't buy the car.

 

[Lucky]

What about gas? The cost of living? Rent? Buying a home? Electronics? Food? Air tickets? Buying a car? Clothing?

Everything has gone up since 1983, not just WDW ticket prices.

Yes, but the point Slowjack was making is that the cost of WDW tickets - a one day ticket anyway - has gone up much more than the overall cost of living.

 

[hokielutz]

Not sure if this has been mentioned or not.... but I am sure the cost of doing business for Disney to provide the parks to the public has not followed a straight inflation increase.
The cost of energy (gas, Electricity, etc) for example is very volatile and is far above an inflation increase since 1983. Also, take the role of computerized technology infusion since 1983. Computers then were in large boxes.... now each parade float has a small one that communicates its position to a central system that monitors the pace & spacing of the floats & adjusts the speed of the floats and music timing based on its location. customized systems are not cheap.

Anyways... those are just to examples. But also my answer is A visit to Disney is definitely worth the price increase since 1983.

 

[Slowjack]

This isn't a direct reply to you Slowjack. Just a general comment.


Hey, if you don't want to buy in bulk at discount, turn in your Sams and Costco cards. Also say farewell to those 24 packs of soda. Go ahead and put in the 60 cents per can in th machine on your way out the grocery store, or buy 15 of the $1.39 20 oz sodas in the cooler. Stores dig charging you $1.39 for what cost them 20 cents. Oh, and don't use those free refills they give you at all the fast food places anymore. And just because your car gets better mileage using the top gear on the freeway doesn't mean you should take it out of 2.

Buying in volume usually results in a discount, sure. But it's not really the same situation. If I buy giant packs of stuff at Costco (and I do), I'm buying stuff that I can then use at my own pace, if you see what I mean. Buying a ten day WDW pass, though, is really a different sort of commitment. Look at it this way: if all else was equal, would you rather have five days every year at WDW, or a ten day trip every other year? opinions may vary (I would greatly prefer the former), but I don't think anyone would say they were the same just because both worked out to an average of five days a year. For most people, days 7 - 10, say, would not be nearly as valuable as days 1 - 3.

Don't get me wrong...if you get full enjoyment out of those ten days, and have a job/schedule that allows you to take long vacations, then you've indeed hit a bit of a jackpot, ticket-value wise. But for most people it's just not as simple a decision as 1 Coke versus a case of Cokes.

 

[beefog]

DUDE, WAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAYYYYYYYYYYYYYYYYYYYYYYY TO MUCH TIME ON YOUR HANDS:lookaroun :lookaroun :lookaroun

 

[Slowjack]

Not sure if this has been mentioned or not.... but I am sure the cost of doing business for Disney to provide the parks to the public has not followed a straight inflation increase.
The cost of energy (gas, Electricity, etc) for example is very volatile and is far above an inflation increase since 1983. Also, take the role of computerized technology infusion since 1983. Computers then were in large boxes.... now each parade float has a small one that communicates its position to a central system that monitors the pace & spacing of the floats & adjusts the speed of the floats and music timing based on its location. customized systems are not cheap.

Anyways... those are just to examples. But also my answer is A visit to Disney is definitely worth the price increase since 1983.

WDW's true costs are an unknown, I'll grant that. The consumer inflation data is a "proxy" for that unknown.

However I doubt that their costs have risen significantly faster than inflation. Electricity prices have actually fallen since 1980 (in inflation-adjusted dollars). Gas prices were about $2.25 in 1983, in 2007 dollars. Cheaper, but not amazingly so. Wages are also flat, so Disney isn't paying more for front-line labor costs, although I would expect they employ a lot more management now, and that costs them something. Etc.

 

[Slowjack]

DUDE, WAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAAYYYYYYYYYYYYYYYYYYYYYYY TO MUCH TIME ON YOUR HANDS:lookaroun :lookaroun :lookaroun

:lol: You're probably right. But I enjoy digging through the numbers.

 

[BuzzLite_Fran]

Well for any of you out there who may think WDW ticket prices are too high. I agree it would be nice if they were cheaper, but some things are more important than money, like memories etc.

I invite you to check out my thread read my story and then maybe just maybe this will shed a little different perspective on this issue.

http://forums.wdwmagic.com/showthread.php?t=222997

 

[BuzzLite_Fran]

I just know that as long as my children keep having fun, and their faces continue to light up when seeing Cinderella Castle, riding Winnie the Pooh, meeting Mickey, etc. I will gladly pay whatever WDW is charging. I was one of the "bashers" when Disney announced the price increases (as well as the DDP changes), but I've since mellowed my stance. Our whole family (from DH, age 40 down to DS, age 2) loves Disney, and as long as they continue to make our vacations as wonderful as they've been, I'll pay it. We have some great memories already, and I can't wait until our next trip to make some more!

My centiments exactly!:sohappy: :sohappy:

 

[Slowjack]

Well for any of you out there who may think WDW ticket prices are too high. I agree it would be nice if they were cheaper, but some things are more important than money, like memories etc.

I invite you to check out my thread read my story and then maybe just maybe this will shed a little different perspective on this issue.

http://forums.wdwmagic.com/showthread.php?t=222997

I've read your story before, and it's a great example of how Disney CMs are so important in delivering the "magic."

But I want to be clear that I didn't start this as a bash-Disney thread. I thought it was interesting how much more expensive the tickets are now, and I'm just curious why we (including me) are so willing to pay these much higher amounts. I guess originally I was also wondering if we thought the increase were justified, but I realize now it's a silly question to ask here, because we're all such Disney nerds that we're the last ones who will feel that WDW is overpriced.

So to get back to that issue--why is it that you are willing to pay so much? Could we say it's because the kind of events that made your daughter's experience so special don't happen anywhere else? Put another way, what could Disney do wrong or change that would make you feel the price was too high?

 

[SDav10495]

Interesting posts here--a very good and well-presented topic. I know where I personally stand on whether or not the price is justified, but rather than argue my position I'd just like to bring up one more thing which I haven't seen discussed so much...

Let's be honest, on this board we're pretty much only going to find people who think the price is justified and have dozens of valid reasons they're willing to pay so much. A message board called "WDWMagic.com" is not lacking for people who are blessed enough to make the trip multiple times; I can safely say that almost every active poster here knows the value of a Disney memory and why, as they say, it's worth every penny.

But what about the families who dream of a WDW vacation but struggle to pull together the money for it? Thanks to Slowjack's excellent research, we can plainly see Walt Disney World was more accessible for a family in 1983 (that pays for the same everyday things we pay for in 2007) than it is for a family with an equivalent income today. Should that be the case?

I understand what I'm getting into--the price of almost every luxury we enjoy today has gone up faster than the rate of inflation, so WDW is not some lone case run by an evil corporation. And I understand that a trip to WDW is not a necessity and therefore maybe it's naive to look at the simple economics of luxury items in terms of morality...that opens up a much bigger (and oft-discussed) kettle of fish beyond our little world of Disney. And I swear, on my honor [scout fingers], that I do not bring this up to be a whiny bleeding heart. I'm not even giving my opinion.

I just think that perhaps the argument that "the service and magic and memories are worth it to us!" should be retired now that it's been put out there--because really, that argument holds true for all of us lucky folks who love WDW. Even consider, for the purposes of this question, dropping the question of how much more there is to do in 2007 than there was in 1983--how much more "value" there is per day (that's getting a little too analytical...I think a good time is a good time in any decade). Instead, I'd like to hear whether others here think it's "right" that a family in 1983 could more easily make the trip to begin with than a family of similar socioeconomic standing can in 2007. If our child's memories are worth every penny just because we're able to shell out the dough, is it "wrong" that Disney is now charging so much that other children (who might have been able to visit 25 years ago) can't experience the same magic?

 

[jt04]

The prices should be set to MAXIMIZE profits. Too low and the parks become too crowded which hurts repeat business. Too high and you lose customers and revenue. Computers figure it all out, not surveys. IMHO

 

[KingStefan]

The prices should be set to MAXIMIZE profits. Too low and the parks become too crowded which hurts repeat business. Too high and you lose customers and revenue. Computers figure it all out, not surveys. IMHO

I hate to be picky (actually, that's a lie; I love to be picky, but it's just an expresstion) but:

To be precise, the prices should be set to maximize the future worth of the stock holders' present holdings. NOT to maximize profits, which anybody who has studied business should know. Although most executive managers forget this nowadays, since their motivation is to maximize their fuure worth.

 

[jt04]

I hate to be picky (actually, that's a lie; I love to be picky, but it's just an expresstion) but:

To be precise, the prices should be set to maximize the future worth of the stock holders' present holdings. NOT to maximize profits, which anybody who has studied business should know. Although most executive managers forget this nowadays, since their motivation is to maximize their fuure worth.

I was afraid to go that in depth, plus I have never studied business.

What :king: Stefan said.

 

[BuzzLite_Fran]

Interesting posts here--a very good and well-presented topic. I know where I personally stand on whether or not the price is justified, but rather than argue my position I'd just like to bring up one more thing which I haven't seen discussed so much...

Let's be honest, on this board we're pretty much only going to find people who think the price is justified and have dozens of valid reasons they're willing to pay so much. A message board called "WDWMagic.com" is not lacking for people who are blessed enough to make the trip multiple times; I can safely say that almost every active poster here knows the value of a Disney memory and why, as they say, it's worth every penny.

But what about the families who dream of a WDW vacation but struggle to pull together the money for it? Thanks to Slowjack's excellent research, we can plainly see Walt Disney World was more accessible for a family in 1983 (that pays for the same everyday things we pay for in 2007) than it is for a family with an equivalent income today. Should that be the case?

I understand what I'm getting into--the price of almost every luxury we enjoy today has gone up faster than the rate of inflation, so WDW is not some lone case run by an evil corporation. And I understand that a trip to WDW is not a necessity and therefore maybe it's naive to look at the simple economics of luxury items in terms of morality...that opens up a much bigger (and oft-discussed) kettle of fish beyond our little world of Disney. And I swear, on my honor [scout fingers], that I do not bring this up to be a whiny bleeding heart. I'm not even giving my opinion.

I just think that perhaps the argument that "the service and magic and memories are worth it to us!" should be retired now that it's been put out there--because really, that argument holds true for all of us lucky folks who love WDW. Even consider, for the purposes of this question, dropping the question of how much more there is to do in 2007 than there was in 1983--how much more "value" there is per day (that's getting a little too analytical...I think a good time is a good time in any decade). Instead, I'd like to hear whether others here think it's "right" that a family in 1983 could more easily make the trip to begin with than a family of similar socioeconomic standing can in 2007. If our child's memories are worth every penny just because we're able to shell out the dough, is it "wrong" that Disney is now charging so much that other children (who might have been able to visit 25 years ago) can't experience the same magic?

Well for me its not how much more expensive ticket prices are now, verses 1983....the last time I checked EVERYTHING was cheaper in 1983 including GASOLINE :hammer: :hammer: :hammer: We have been to other places such as Six Flags, Busch Gardens, SeaWorld etc, but it just seems to me that at places such as these which are the closest thing I can even come close to comparing to WDW, the standards of service and caring for guests are just not the same. It just seems that because Disney goes out of its way 99.9% of the time to create magic for it's guests, the overall experience is better and therefore memories are also. Not to mention at WDW the children can experience th coming to life of characters they have grown up with in the various movies.

I guess to answer your question I dont think Disney could do anything that would not make us want to visit WDW. We are loyal.