• Welcome to the WDWMAGIC.COM Forums!
    Please take a look around, and feel free to sign up and join the community.You can use your Twitter or Facebook account to sign up, or register directly.

Bob Iger: "We Don't Believe We Have A Pricing Issue At Our Domestic Parks"

ESPN is a prime example of what the soulless Iger can do in terms of long term damage.

He took a top brand and severely damaged it by cutting staffing costs, killing personalities (which is what made ESPN), overpaying for product (SEC, ACC, NBA, NFL TV contracts) and charging high fees.

As a result of the high fees more and more people are cord cutting or avoiding the ESPN/ABC/Disney packages.
His NBA product is alot worse than when the NBA was on NBC and is inferior to the TNT/TBS NBA product.
He's chased away top Sportscenter talent and there's been a failure to develop and bring up new talent. When the Beeker like Scott Van Pelt is the headliner you have a huge problem.

They have massive problems because they overpaid for all those TV contracts, trying to corner and monopolize the market and content (analogous to the acquisition of the Fox movies) and the customers have revolted and brand loyalty to ESPN is dead.

I think when people look back they will see him as a grand failure to a much larger degree than with the regard with which he is looked at right now. Now some may separate that out by saying that it's Iger later years that was the problem just like people are separating Eisner/Wells from Eisner/Ovitz.
Pooh, you have some points of consideration in your thread. I don't agree with a lot of it but it was interesting to read. You mention in your footnote that Disney has a department that reads our posts.

If I was one of those readers I would have discounted the post after the word 'soulless'. I totally get the dislike for his business practices but to use the word soulless would infer you have personal knowledge of the man. Have you spent a lot of time with him? If so, do tell, I have lots of questions!

It is my hunch that whoever replaces Iger in a couple years will be all about appeasing the board of directors. And we all know what the board wants: money and stock growth.
 

Pooh.sHoneyHuntTDL

Well-Known Member
Advertisement
Pooh, you have some points of consideration in your thread. I don't agree with a lot of it but it was interesting to read. You mention in your footnote that Disney has a department that reads our posts.

If I was one of those readers I would have discounted the post after the word 'soulless'. I totally get the dislike for his business practices but to use the word soulless would infer you have personal knowledge of the man. Have you spent a lot of time with him? If so, do tell, I have lots of questions!

It is my hunch that whoever replaces Iger in a couple years will be all about appeasing the board of directors. And we all know what the board wants: money and stock growth.
Well it worked because you felt compelled to respond.

Yes, Iger is no Soul Man. You dig?
 

Corey P

Well-Known Member
As far as the park's Disney said they were going to price people out. 3% drop in attendances means nothing if revenue and profits go up more than 3%. Only problem is the stock trading crowd will look at the attendance numbers and wonder what is going wrong. The traders won't like that, they want both ends. Increased attendance and increased profits. Iger should have informed them what the new business model is.
 

ddbowdoin

Well-Known Member
This is brought up frequently, but I think your view on this is going to depend on the region you live in and what activities you compare it to.

I recently stayed for one night at a Holiday Inn in North Adams, MA. It's the Berkshires, but its really nothing special - its just a bland tiny city with some nice state parks near by. It was just okay even by Holiday Inn Standards. After taxes and fees, it was just over $300 for the single night.

The average price per night at Animal Kingdom Lodge is $415/night during my stay. Those two properties are night and day different. It makes AKL look like a HUGE bargain. Hotels are just expensive these days.

We can play the same game with the park tickets. Yes, It's well over $100 a day at the MK for a single day ticket, but a 3 hour off-broadway show in your home city also runs over $100 a ticket. Entertainment is just expensive these days.
Damn, dropped that much to stay in the Berkshires? Must have been driven up by either Tanglewood events or move in weekend at Smith College.
 

eliza61nyc

Well-Known Member
Watched a YouTube video and they said just to get in you would pay for a family of four $800.... for only one day.
No food, light sabers etc....
For a middle class family this is too much money.
I guess I disagree sort of. not the cost part but for middle class family. I ask this question and have yet to really get an answer. If the product is too expensive for so called middle class families, exactly who is taking up that space now?? are you meaning that all those people are rich?

I think those videos and articles are intentionally deceptive.
how many middle class families would go for only 1 day? (not talking about locals with AP's)?
Also it seems to make the assumption that a trip to disney is a spur of the moment thing. I think (and I admit my sampling pool is small) most middle class families do what they have been doing for decades. they plan and save for it. most folks I know book some times a year in advance and then save.
so you are right, most families don't wake up and spend 800 bucks on a day at the parks but they will set a budget say of 3K for a family of 4 and save for it.

lastly the whole concept of "middle class" is a bit ambiguous. the Pew foundation give it as an income range of about 40K to 122K. Ok but 55K a year which is supposedly middle class is one thing in lower cost Alabama but darn near poverty in New Jersey.

Every time Disney has a price increase there are a multitudes of articles and threads about how Disney is out pricing the middle class and or average family. so who the heck is in the parks? I went in April and while I didn't ask strangers what their income was I suspect they would consider themselves middle class.
 
Last edited:

Goofyernmost

Well-Known Member
Why are they worried about attendance anyway? If each guest spends more per visit, but there are less guests, that is a win for Disney the theoretically the guests, depending on how low they staff the parks. Unless too many rooms are empty it shouldn't be an issue. I believe that has been the strategy for a while now. Adding costs that used to be free, and perks for pay means people spend more than previously. But people keep coming. It also hurts brand image if the parks are too crowded and people come away not happy after a trip.

Lowering attendance should not be seen as bad all the time. I do not believe a 5th gate is in the plans for at least a decade and the parks feel overcrowded as is. Lowering attendance is good thing. Unfortunately, these types of reports and calls are to appeal to the lowest common denominator and they have to be careful what they say. While some information can be gleaned, it all can't be taken at face value or too much read into statements.
Because you are leaving out the main thing that prevents it from being good and that is the old saying, that I think I just made up... "Greed is a cruel mistress". They can't help themselves, the more they get the more they want. All the upper people know that their time with the company/parks is limited and anything they do that is bad in the long run, will probably not be a problem until after they are all retired and living on their private island in the Caribbean counting huge piles of money. If it all fails eventually they will sit back, light up cigars with Hundred Dollar bills and say that when they were running the place it was extremely profitable. What happens to Disney down the road is of no concern of theirs.
 

Kingoglow

Well-Known Member
Watched a YouTube video and they said just to get in you would pay for a family of four $800.... for only one day.
No food, light sabers etc....
For a middle class family this is too much money.
Haven't seen the video or quite understand how they arrived at $800 for four people to get into the park but obviously, that is a fine price for middle class families. It is probably too much for the lower class families though. /shrug
 

Goofyernmost

Well-Known Member
Damn, dropped that much to stay in the Berkshires? Must have been driven up by either Tanglewood events or move in weekend at Smith College.
When my daughter went to Smith, the hotels were reasonable, but, that was the mid 1990's so perhaps greed has expanded over the years. Of course the other thing was we lived in Vermont so I think there was only one time in that year she attended that we stayed in town.
 

ddbowdoin

Well-Known Member
When my daughter went to Smith, the hotels were reasonable, but, that was the mid 1990's so perhaps greed has expanded over the years. Of course the other thing was we lived in Vermont so I think there was only one time in that year she attended that we stayed in town.
We got caught in that weekend craze when a good friend got married at the Eric Carle Museum during the Smith / Umass graduation. Yikes, 350 for a standard chain hotel. Nope, slept in my van.
 

John park hopper

Well-Known Member
Greed is everywhere you see this all the time-- companies are started by generation 1 and generation 2 works to keep the company going generation 3 just waits for generation 2 to die off and they sell the business for short term gain --bundle of money. I'm seeing this in my hometown--Seafood business (fishermen rely on) generation 2 is in poor health and generation 3 is just waiting to sell it off for the cash
 

Goofyernmost

Well-Known Member
We got caught in that weekend craze when a good friend got married at the Eric Carle Museum during the Smith / Umass graduation. Yikes, 350 for a standard chain hotel. Nope, slept in my van.
I think I can understand why it would be expensive because of the following short story. I was sitting in a rocker on the porch of my daughters dorm at Smith speaking with another parent. He was a reporter for ESPN and arrived in a huge new Mercedes. I had an 5 year old Dodge Caravan. What I did have was a nursing home business with property that consisted of one large house and one small house, plus our family home plus my wife was attending U-Mass, Boston with an apartment overlooking the bay and next door to the Kennedy Library. So I played that up. At the time with two daughters, the oldest attending Colorado College in Colorado Springs and a wife in college, it was difficult to find two nickels to rub together, but, I played up the impressive and didn't mention the negative. He didn't know that so I felt that I was able to fit right in, but, didn't spend to much time looking for hotels in the area. I consider myself to be a survivor. Man, I'm breaking out in a sweat just thinking about those years.
 

DoubleJ21

Well-Known Member
3% tho, that is a tiny blip. Hard to explain with any certainty in many situations. Definitely not enough for a regular person to enjoy. Enjoy as in, a signal for those that have been avoiding the crowds to return.

Lol, I need to see a nice 20% dip for me to return. :p
Disney parks are a lot like traffic jams. When you're in a traffic jam on the freeway, each additional car that merges onto the road makes the problem substantially worse. Hence why there are often meters to slow the number of merging cars. When a park is packed, each additional guest has a larger impact on wait times. A 3% dip in attendance might not sound like much, but it has a bigger impact on wait times than you might think.
 

eliza61nyc

Well-Known Member
Greed is everywhere you see this all the time-- companies are started by generation 1 and generation 2 works to keep the company going generation 3 just waits for generation 2 to die off and they sell the business for short term gain --bundle of money. I'm seeing this in my hometown--Seafood business (fishermen rely on) generation 2 is in poor health and generation 3 is just waiting to sell it off for the cash
the word "greed" is right up there with "racism" in over use. Exactly what happen with my family's restaurant and one of the problems is usually the following generations don't care about it as much as the ones that started it. My grandfather and great uncle built a successful business so much so they sent their kids to college, when they got old and in poor health no one wanted a restaurant. it's hard as hell work. my uncles gave it a try but by the time my generation got old enough, we sold that sucka quick fast and in a hurry.

Next many times the things generation one did are just not financially feasible in gen 3,4 and beyond. which is why the never ending comparison to what Walt did is pretty useless.
Now I'm not sure if I agree with the "greedy walt disney world" description that is so readily tossed around. Disney is a for profit business Iger's job is to make as much money for his clients as humanly possible. That's his job, now of course how he does it is the question.
 

John park hopper

Well-Known Member
the word "greed" is right up there with "racism" in over use. Exactly what happen with my family's restaurant and one of the problems is usually the following generations don't care about it as much as the ones that started it. My grandfather and great uncle built a successful business so much so they sent their kids to college, when they got old and in poor health no one wanted a restaurant. it's hard as hell work. my uncles gave it a try but by the time my generation got old enough, we sold that sucka quick fast and in a hurry.

Next many times the things generation one did are just not financially feasible in gen 3,4 and beyond. which is why the never ending comparison to what Walt did is pretty useless.
Now I'm not sure if I agree with the "greedy walt disney world" description that is so readily tossed around. Disney is a for profit business Iger's job is to make as much money for his clients as humanly possible. That's his job, now of course how he does it is the question.
May be a better word rather than greed --- short term gain
 

networkpro

Well-Known Member
the word "greed" is right up there with "racism" in over use.
I would hazard that there's a section of the public that lacks the ability to verbalize their opinion beyond "I dont like it" and grasp at whichever emotionally loaded buzzwords are in use in attempts to add emphasis in this generations' equivalent of "yo mamma"

In simple terms, Disney owns "stuff" and charges people to use its "stuff". It decides how much to charge and you can either pay and play or not and dont play.

Its not a democracy, or socialism... its capitalism. There is no "All affected Principle" clause to economic decisions by the owner of the "stuff". You don't automatically get a say on any decision by the owner of the "stuff" because it impacts you in some manner. You can buy into the ownership of the "stuff" {stock in a public company, contractual agreements such as annual passes or timeshares (DVC) } for example which grants you some say but its still private property. It still remains their "stuff" at the end of the day no matter what plans you or any other organization may have plans for it.

Companies don't have to be altruistic in all facets of their operations, but Disney does contribute with cash and in-kind dontations amounting to hundreds of millions of dollars every year.
 

disneyflush

Well-Known Member
As far as the park's Disney said they were going to price people out. 3% drop in attendances means nothing if revenue and profits go up more than 3%. Only problem is the stock trading crowd will look at the attendance numbers and wonder what is going wrong. The traders won't like that, they want both ends. Increased attendance and increased profits. Iger should have informed them what the new business model is.
Theoretically, lets say it drops 3% next quarter and revenue and profits keep going up. Everyone is happy right? Lets do that for next 3 quarters so make it a fiscal year (not the official one but 4 fiscal quarters). Now our attendance is down 12% year-over-year and we are going to need to bump up prices 12% to reach break even on revenue before the annual price hikes of, lets say, 5% across the board that we need to reach our fiscal goals. Add the % attendance drop to the % number Disney raises prices annually to determine the magic number each year that prices are going to go up. 17% in 1 fiscal year using dummy numbers. How long before this becomes an actual issue for the company? Does making attendance go down via 'pricing people out' make long term/short term sense given their pricing/sales model?
 

Animaniac93-98

Well-Known Member
Haven't seen the video or quite understand how they arrived at $800 for four people to get into the park
Peak season 1 day ticket (as in today or summer) to Disneyland: $149/adult, $141/child + $50 for park hopper upgrade

4 1-day hoppers would be about $800. That's before parking, food etc.
 
Top Bottom