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

jloucks

Well-Known Member
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Doesn't matter where you eat or park, it's extra $ you spend on top of admission.

It's all part of the cost of visiting Disneyland for a day, and part of the decision to go or not.
I think base price and fixed cost might be close to the same thing in this scenario.
 

flynnibus

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%.
Sure it means something when the way you are offsetting the drops is with unsustainable double digit price increases.

The net number isn’t the interesting one people... it’s what composes that number and how they got there where the analysis is.
 

DrummerAlly

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.
Well, if you’re going to the Berkshires, you’ve got to stop at Tanglewood, right? Seriously though - worst bang for your buck ever at that Holiday Inn.
 

Corey P

Well-Known Member
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?
That's the question and the next recession will pound the numbers in a bad way. That's the danger of pricing Joe Blow out of the market.
 

Corey P

Well-Known Member
Sure it means something when the way you are offsetting the drops is with unsustainable double digit price increases.
So far, the price increases have worked. Question for Disney is where is the tipping point. I think Disney has gone over that line but will not see the real effects for a few quarters. It's a lot easier to have repeat customers than to find new ones. Think Disney will have a problem with that as well.
 
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xdan0920

Think for yourselfer
Premium Member
Hey everyone, just a quick little anecdotal story regarding Disney and pricing.

Yesterday I played as a guest in a $2000 a group golf outing at a pretty prestigious club. (Humblebrag? Regular brag?) My playing partner had just taken his family to Sesame Place and we were chatting about it. Of course the conversation drifted to Disney.

The table we were at had a handful of guys who, in no way, shape or form would be considered middle class. The overriding opinion of Disney world?

“Fun but insultingly expensive”

Now, these aren’t guys being priced out. These are guys who just find the Disney pricing to be, as my buddy @George is known to say, absurdist.

Affordability isn’t the issue IMO. Being made to feel like a moron every time you get rung up is an issue though.
 

Goofyernmost

Well-Known Member
Hey everyone, just a quick little anecdotal story regarding Disney and pricing.

Yesterday I played as a guest in a $2000 a group golf outing at a pretty prestigious club. (Humblebrag? Regular brag?) My playing partner had just taken his family to Sesame Place and we were chatting about it. Of course the conversation drifted to Disney.

The table we were at had a handful of guys who, in no way, shape or form would be considered middle class. The overriding opinion of Disney world?

“Fun but insultingly expensive”

Now, these aren’t guys being priced out. These are guys who just find the Disney pricing to be, as my buddy @George is known to say, absurdist.

Affordability isn’t the issue IMO. Being made to feel like a moron every time you get rung up is an issue though.
That would be when you have the money to go anywhere in the world. You can afford it, but you feel like you are being racked over the coals when you have to pay those absurdist prices.

For those whose affordability doesn't even get them into the front gate, overpaying for everything isn't even in the vernacular. It's the same difference between a 1st world problem and a 3rd world problem.
 

Corey P

Well-Known Member
Hey everyone, just a quick little anecdotal story regarding Disney and pricing.

Yesterday I played as a guest in a $2000 a group golf outing at a pretty prestigious club. (Humblebrag? Regular brag?) My playing partner had just taken his family to Sesame Place and we were chatting about it. Of course the conversation drifted to Disney.

The table we were at had a handful of guys who, in no way, shape or form would be considered middle class. The overriding opinion of Disney world?

“Fun but insultingly expensive”

Now, these aren’t guys being priced out. These are guys who just find the Disney pricing to be, as my buddy @George is known to say, absurdist.

Affordability isn’t the issue IMO. Being made to feel like a moron every time you get rung up is an issue though.
I've been saying that for a while. Doesn't mean you can't afford it, you just don't think it's worth the money.

Two completely different things.

I'm a guy who would spend money and cars, trucks, motorcycles that I like but they could be expensive or not. I do not base my decision on the most cost effective. As far as cars, a cheap Toyoda will be your most cost effective and will last trouble free for years. I wouldn't drive one of those. I see why people do but...just no for me. Best bang for your buck. I bought a 1999 motorcycle because I liked the looks of it and it did what I was looking for. I don't like the new black out look of bikes or all the electronics. I don't need or want ABS, traction control etc. I like old school. I also know how to work on the older bikes because I like to, not that I have too. Same with old cars, it's a hobby. Doesn't mean I won't go buy some exotic car brand new that catches my eye, I won't be working on that my self.

It's like pretty much everything in life. There is the best bang for your buck. Next level up is nicer but costs more. Next up is name brands etc. that you pay more for nothing other than the name. Then the just stupid expensive for something for no real reason.
 

eliza61nyc

Well-Known Member
I've been saying that for a while. Doesn't mean you can't afford it, you just don't think it's worth the money.

Two completely different things.


I'm a guy who would spend money and cars, trucks, motorcycles that I like but they could be expensive or not. I do not base my decision on the most cost effective. As far as cars, a cheap Toyoda will be your most cost effective and will last trouble free for years. I wouldn't drive one of those. I see why people do but...just no for me. Best bang for your buck. I bought a 1999 motorcycle because I liked the looks of it and it did what I was looking for. I don't like the new black out look of bikes or all the electronics. I don't need or want ABS, traction control etc. I like old school. I also know how to work on the older bikes because I like to, not that I have too. Same with old cars, it's a hobby. Doesn't mean I won't go buy some exotic car brand new that catches my eye, I won't be working on that my self.

It's like pretty much everything in life. There is the best bang for your buck. Next level up is nicer but costs more. Next up is name brands etc. that you pay more for nothing other than the name. Then the just stupid expensive for something for no real reason.
👍👍
And it doesn't make one stupid if they chose one level over another. "the old guy" as I affectionately called my late husband was a amateur cyclist. did a lot of charity long distance bike rides. when he told me he was going to drop 1700 bucks on a Bicycle, I thought I could use it as evidence in his sanity hearing. lol but the bills were paid, the kids had tuition, so it was all good.

People value things differently.
 
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i dont complain about the parking fees for example, as if i go to downtown nashville, i pay more for a few hours than i would for an entire day of parking my car at POP. Its a luxury to have your car at this point, were only 11 hours away, and prefer to drive, we get there quicker sadly,. can bring anything we want with us, and bring back anything. Ill gladly pay a few bucks, the same way i would if i was going to a concert downtown, or a preds game. Big cities do the same.
This is how customer standards decline. We used to get something nice, and when it’s taken away, we make excuses for the company. Disney owns every square inch of its resort and its park profit is in the billions. Unlike in big cities, there is no landlord to pay, which is why big cities have steep parking fees and WDW really doesn’t need them.
 

KBLovesDisney

Well-Known Member
I just heard that they raised their Press Penny machine prices by 50 cents. So, it is now a $1 plus a penny...for a pressed penny outcome.
 

Mr. Moderate

Active Member
I spend time just lurking and reading and don't comment much. I enjoy reading the threads and this one hits home for me personally. I'm a longtime fan of the parks, but my family has moved on due to pricing and the feeling that it's just not for us anymore, or at least not for us in terms of money. I was a longtime DVC member, until recently where I sold both by contracts, and don't miss the fees, etc. I personally feel that Disney has reached the tipping point with the price gouging and the days of me going yearly, are done. I sometimes get the strong feeling that Disney doesn't want repeat customers and seems to be aiming at first time visitors and getting all the revenue they can from them. It seems like a short sighted business strategy in grabbing with both hands and trying to squeeze every dime you can out of the guests. Both my wife and me thought on our last trip, that it felt like we both had enough and that finally the negatives outweighed the things we loved about going to the parks and staying at the resorts.

I may want to go in 3 to 4 years, but even then, I have my doubts if I'll be able to swing the costs, and if I can, will I want too? I can only imagine the costs by then. Kind of bummed just thinking about it.
 

Incomudro

Well-Known Member
For me, it's not so much the cost - but rather what I am getting for the cost.
I love WDW but I am seeing and feeling less niceties - be it cleanliness, helpfulness of hotel staff, cast members etc., decline in food quality, lack steetmosphere etc. for an increasing cost.
Many of those special Disney touches have faded away while prices have gone up - and I don't expect prices of anything to not increase.
But when I get less for more, I notice.
 

George

Liker of Things
Premium Member
So, I'd be lying if I claimed that I didn't like the personal anecdotes. I actually really like them. But, I think the long term impact on the company will be how they are viewed by the public and over pricing has the potential to impact that view, though it is not a slam dunk. I do believe it is a contributing factor. I have many friends and family in central Florida. One of them used to stay in the values from time to time, but the lack of free continental breakfast and hot tubs at the price point eventually caused them to stop. A small thing, but a thing. This is an example is to illustrate a point. Many moons ago, you paid a bit more for Disney than other entertainment offerings, but it was such a mind blowing and top notch experience that it was viewed as the be all and end all for vacations by the public at large. Now, as some of you have mentioned it seems the experience is being worsened whilst prices are relatively even higher. I would argue that even a strategy to lower attendance a bit by pricing is a bad look in and of itself. Years of inactivity with regards to attractions is another contributing factor with regards to that ***** to elbows feeling. Now, they are trying to make up for it with a huge building spree. I think part of the hope is that all the new stuff will at least partly offset the views of the price increases. Time will tell. The problem with new stuff is that 5 years from now, the new thing will spread out crowds and be a generally good thing. However, when the new thing is new, having a day where 4 attractions are experienced that includes a 4.5 hour wait and having to wheelbarrow in a pile of cash to fund the day doesn't necessarily increase Disney's public perception. Maybe, there will be so much new stuff crowds will be more spread out from the get go? I dunno. I just booked some fastpasses and Slinky Dog Dash is still a hard to get, premier experience when it should be 20 minutes tops and used primarily to waste time before your Tower of Terror fastpass opens. The other issue of course is that overall ride times have decreased. Rise of the Resistance might correct that somewhat, but there is a lot of work to do on that front. But, I digress. Value has decreased, price increases have been part of that, and its not clear if the current glut of spending on attractions will right the ship. Further, there is no sign that having longer operating hours and not selling a day multiple times will ever be a viable way to run the mildly themed recreational areas of the resort again. Walt Disney World has been riding on the wave of public admiration for decades. It seems like we might be watching this slow moving behemoth slowly crash into the shores of resentment. Of course, the wave may break in the middle of an ocean of pleasure hearkening in the time of $38 cupcakes that have 748 calories of frosting.
 

lindawdw

Active Member
I think there are a lot of factors involved in low attendance this quarter due to price increases of tickets, food, parking but I also feel like a lot of people have been waiting for Galaxy's Edge to open and figure if they're going to pay these inflated prices then they should wait to experience this new land. I'm actually ok with the ticket price increase if in fact it does reduce the crowd levels because I've been feeling like the whole park experience has become less than magical with the attraction lines as long as they've been these last few years.
 

dgm

New Member
I was an annual
Listening to the earnings call live at the moment, Disney said domestic park attendance was down 3% versus last year and analysts were questioning why.

Interestingly, Iger flat out said there is no pricing issue based on a lot of market research and data within the company. Instead, Disney gave reasons such as people waiting for crowds at Galaxy's Edge to subside and annual passholders staying away from DL.

I find this fascinating as consumers are so resilient. The pricing is based on the "value of the franchises" and investments in new attractions and experiences, according to Iger.

I have been openly resilient to price increase, but recently posted a thread complaining about the product itself suffering while prices have continued to increase, here: https://forums.wdwmagic.com/threads/ok-ill-admit-it-disney-prices-are-out-of-control.956080/

Seems crowds have spoken a tiny bit and I'm not completely buying it's because of Galaxy's Edge.
Listening to the earnings call live at the moment, Disney said domestic park attendance was down 3% versus last year and analysts were questioning why.

Interestingly, Iger flat out said there is no pricing issue based on a lot of market research and data within the company. Instead, Disney gave reasons such as people waiting for crowds at Galaxy's Edge to subside and annual passholders staying away from DL.

I find this fascinating as consumers are so resilient. The pricing is based on the "value of the franchises" and investments in new attractions and experiences, according to Iger.

I have been openly resilient to price increase, but recently posted a thread complaining about the product itself suffering while prices have continued to increase, here: https://forums.wdwmagic.com/threads/ok-ill-admit-it-disney-prices-are-out-of-control.956080/

Seems crowds have spoken a tiny bit and I'm not completely buying it's because of Galaxy's Edge.
I was an annual passholder at WDW until my pass expired 3 days ago. I’m not renewing. As much as I love it I can’t afford it, and I have a good job. If people are happy that the price increases may keep people out of the park then that’s great for them. I remember when there were actual non-peak times for people to go and it was wonderful. However, as someone who’s been priced out by the price increases on everything, I am heartbroken that I can no longer enjoy what’s meant so much to my son and me for 20 years. Point is, hopefully the people who can still afford to go (and are happy for themselves that they will benefit from people are being priced out) realize how incredibly fortunate they are.
 

dgm

New Member
I was an annual
Listening to the earnings call live at the moment, Disney said domestic park attendance was down 3% versus last year and analysts were questioning why.

Interestingly, Iger flat out said there is no pricing issue based on a lot of market research and data within the company. Instead, Disney gave reasons such as people waiting for crowds at Galaxy's Edge to subside and annual passholders staying away from DL.

I find this fascinating as consumers are so resilient. The pricing is based on the "value of the franchises" and investments in new attractions and experiences, according to Iger.

I have been openly resilient to price increase, but recently posted a thread complaining about the product itself suffering while prices have continued to increase, here: https://forums.wdwmagic.com/threads/ok-ill-admit-it-disney-prices-are-out-of-control.956080/

Seems crowds have spoken a tiny bit and I'm not completely buying it's because of Galaxy's Edge.
Listening to the earnings call live at the moment, Disney said domestic park attendance was down 3% versus last year and analysts were questioning why.

Interestingly, Iger flat out said there is no pricing issue based on a lot of market research and data within the company. Instead, Disney gave reasons such as people waiting for crowds at Galaxy's Edge to subside and annual passholders staying away from DL.

I find this fascinating as consumers are so resilient. The pricing is based on the "value of the franchises" and investments in new attractions and experiences, according to Iger.

I have been openly resilient to price increase, but recently posted a thread complaining about the product itself suffering while prices have continued to increase, here: https://forums.wdwmagic.com/threads/ok-ill-admit-it-disney-prices-are-out-of-control.956080/

Seems crowds have spoken a tiny bit and I'm not completely buying it's because of Galaxy's Edge.
I was an annual passholder at WDW until my pass expired 3 days ago. I’m not renewing. As much as I love it I can’t afford it, and I have a good job. If people are happy that the price increases may keep people out of the park then that’s great for them. I remember when there were actual non-peak times for people to go and it was wonderful. However, as someone who’s been priced out by the price increases on everything, I am heartbroken that I can no longer enjoy what’s meant so much to my son and me for 20 years. Point is, hopefully the people who can still afford to go (and are happy for themselves that they will benefit from people are being priced out) realize how incredibly fortunate they are.
 
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