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

[Incomudro]

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]

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]

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]

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]

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.

 

[Por-Favor-Manténgase]

When have you ever heard someone say Disney World is NOT expensive. Regardless of what year it is, Disney has never been reasonable on pricing. It's always a premium, no matter where you look within the company. Whether it's Disney On Ice, not being able to use coupons on the Disney area in JCP, ridiculously high free shipping thresholds on disneyshopping.com, to how they gouge cable operators for ESPN carriage. They view themselves as a premium brand. The always have and always will. The only area this doesn't apply to is movie ticket prices and that's because the theaters set the prices or, you know otherwise there would be $5 per ticket premium to see any Disney, Pixar or Marvel film.

 

[dgm]

It’s always been expensive. Not saying it hasn’t been. I have been very fortunate and I’m grateful for all the times I’ve been able to go. However, this thread is full of comments from people about how much things have gone up (i.e. $25 parking for hotels now). If I can’t afford to go then do be it. That’s how life is, and I get it. It just aggravates me to no end for someone to say basically that they hope price increases drive people out (in other words, people can no longer afford to go) so that he/she can have a better time with less crowds. I interpret that as “sucks for them but I benefit and that’s what really matters!”

 

[Deadphish]

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.

Did they really do this?

 

[SKG]

I don't know the answer to this but how have WDW's prices risen compared to concerts? Sporting Events? Movies? Broadway? and other forms of entertainment? Seems like EVERYTHING is expensive today.

 

[eliza61nyc]

It’s always been expensive. Not saying it hasn’t been. I have been very fortunate and I’m grateful for all the times I’ve been able to go. However, this thread is full of comments from people about how much things have gone up (i.e. $25 parking for hotels now). If I can’t afford to go then do be it. That’s how life is, and I get it. It just aggravates me to no end for someone to say basically that they hope price increases drive people out (in other words, people can no longer afford to go) so that he/she can have a better time with less crowds. I interpret that as “sucks for them but I benefit and that’s what really matters!”

It really is a double edge sword. for a while now I've heard that Disney is trying to find a price point where they can thin out the crowds and That is the one thing folks can agree on, it's very very crowded.
I don't think anyone "hopes" for price increases as much as people want lower crowds and it seems the most expedient way to do that. EXCEPT it hasn't really worked.
Now I've never measured my family's vacation happiness by wdw. we love it but there have been many times where we could not afford to go (10K for a roof!!! are you serious. lol) and our summers were just as happy and I've never lost sight of the reality that the corporation is a business not a charity. their job is to increase profits, plain and simple.
I fully expect that at some point probably very soon, I'll get to the point where the value is not there and I'm fine with that. There really is a great big world out there and my family loves to explore it.
lastly never say never. I do think the recession will put the brakes on runaway price increases and when that comes you'll probably see discounts and packages.

 

[SKG]

It really is a double edge sword. for a while now I've heard that Disney is trying to find a price point where they can thin out the crowds and That is the one thing folks can agree on, it's very very crowded.
I don't think anyone "hopes" for price increases as much as people want lower crowds and it seems the most expedient way to do that. EXCEPT it hasn't really worked.
Now I've never measured my family's vacation happiness by wdw. we love it but there have been many times where we could not afford to go (10K for a roof!!! are you serious. lol) and our summers were just as happy and I've never lost sight of the reality that the corporation is a business not a charity. their job is to increase profits, plain and simple.
I fully expect that at some point probably very soon, I'll get to the point where the value is not there and I'm fine with that. There really is a great big world out there and my family loves to explore it.
lastly never say never. I do think the recession will put the brakes on runaway price increases and when that comes you'll probably see discounts and packages.

Why would Disney ever want to thin crowds? They want it more crowded.

 

[eliza61nyc]

I don't know the answer to this but how have WDW's prices risen compared to concerts? Sporting Events? Movies? Broadway? and other forms of entertainment? Seems like EVERYTHING is expensive today.

Every thing is, some of the more serious posters have the answer but I think ticket prices alone have skyrocketed 20-30%
the problem is, there really is no way to compare Disney to most other entertainment venues. Broadway is my passion and it's insanely expensive but others argue that's more of a one and done type of thing.

 

[eliza61nyc]

Why would Disney ever want to thin crowds? They want it more crowded.

Ok let's say they want it crowded enough to make a crap load of profit but not so much that it begins to get a bad reputation. balancing act. I find people will be resilient to high prices IF they are having a great time. wall to wall people starts to make that impossible. or maybe more accurately would be they want more crowds during certain periods.

It's getting the reputation of expensive AND not worth the money. that's deadly.

edited: these are just my thoughts, I am in no way an insider

 

[SKG]

Every thing is, some of the more serious posters have the answer but I think ticket prices alone have skyrocketed 20-30%
the problem is, there really is no way to compare Disney to most other entertainment venues. Broadway is my passion and it's insanely expensive but others argue that's more of a one and done type of thing.

I think WDW is way overpriced but the truth tells me otherwise. I think NFL games are way over-priced but attendence tells me otherwise. I wouldn't even let my wife tell me what she paid for Hamilton tickets. I just think Disney's prices aren't as over-bloated as we all might think.

 

[RobWDW1971]

I think WDW is way overpriced but the truth tells me otherwise. I think NFL games are way over-priced but attendence tells me otherwise. I wouldn't even let my wife tell me what she paid for Hamilton tickets. I just think Disney's prices aren't as over-bloated as we all might think.

Supply and demand will always set the pricing - your Hamilton and NFL comparisons are spot on. I paid to see Hamilton and the pricing was outrageous, but I didn't say that coming out of the theater. I've paid for incredible NFL games that felt like the deal of a lifetime and others where I wanted to leave by halftime and felt ripped off.

In other words, it's about the quality they deliver, not the exact price. I spend less energy on asking them to reduce prices and more about increasing the quality. If they continued to try to "wow" and surprise the guests in every aspect of their hotel stay and park visits, the price would be less controversial. The kick in the pants now is the prices are going up and the perceived quality/service is going down. THAT is a problem.

 

[xdan0920]

I think WDW is way overpriced but the truth tells me otherwise. I think NFL games are way over-priced but attendence tells me otherwise. I wouldn't even let my wife tell me what she paid for Hamilton tickets. I just think Disney's prices aren't as over-bloated as we all might think.

This argument is so tired.

 

[SKG]

This argument is so tired.

Why?

 

[xdan0920]

Why?

Disney World isn’t a Broadway show, it’s not an NFL game. It’s pointless to compare the two.

 

[RobWDW1971]

Disney World isn’t a Broadway show, it’s not an NFL game. It’s pointless to compare the two.

It's a broader conversation about consumers' relative value and perception so of course it is relative. Nobody is saying an NFL game costs $X so you divide X by Y and then times Z to get to WDW should equal $M. It's a more philosophical conversation about relative value, market demand, and equilibrium pricing.

In my opinion, trying to compare WDW to local amusement parks or county fairs is pointless as those aren't in the same targeted market or selection set. If you want to be hyper-literal and compare specific line by line pricing, then the only comparison (and a much more boring conversation) is just comparing WDW to Universal Orlando. Those are two relatively comparable theme park focused resorts with adjacent hotels in the Orlando market.

 

[xdan0920]

It's a broader conversation about consumers' relative value and perception so of course it is relative. Nobody is saying an NFL game costs $X so you divide X by Y and then times Z to get to WDW should equal $M. It's a more philosophical conversation about relative value, market demand, and equilibrium pricing.

In my opinion, trying to compare WDW to local amusement parks or county fairs is pointless as those aren't in the same targeted market or selection set.

You’re right of course about the second part. Disney shouldn’t be compared to Sesame Place for example.

But it shouldn’t be compared to a broadway show either. If we are going to compare the costs of seeing a broadway show to the costs of a vacation in Disney World, then where do those comparisons stop? Anything you spend money on can be used to somehow prove Disney isn't that expensive? I don’t agree with that line of thought.