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

[RobWDW1971]

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.

But that's how consumers spend their discretionary leisure dollars. I have a choice to fly my family on vacation to NYC, get a hotel in Times Square, take them to see 2-3 Broadway shows, eat out every day, etc. OR I can take them to WDW, get a hotel on site, buy theme park tickets, eat in the parks and Disney Springs, etc. All of those costs are comparable and contribute to a feeling of relative value.

Having done both of those many times, I personally don't find WDW more expensive than other vacation destinations that provide that level of entertainment (and depending on how I do at the blackjack table in Vegas over a few days, could be a bargain).

I just want to see them go back to pushing themselves to drive higher quality. As a consumers we make the choice accordingly, last two times I went I stayed offsite and it wasn't cheaper, it was just better service.

 

[flynnibus]

What did Chic Fil La do when it's lines got too big?

It added more staff and designed multi-lane drive throughs to handle the load.

It didn't keep raising prices and tell people it was to 'improve customer experience'

What did Disney do when it created MK and EPCOT after Disneyland? It improved capacity and designs to handle far greater capacities.

Disney isn't do this for customer experience.. they are doing it because the demand is there that people will still pay the price.

They could control crowds by controlling access and availability.. but they don't. They are trying to shape demand for efficiency - not guest experience.

 

[jprieur]

I do think prices have reached levels that are pushing the boundaries of sanity, but as some others have alluded, I have yet to find a comparable vacation that provides similar levels of entertainment and escape for me. However (with a capital 'H'), my fault lies not with the price increases, but with the service and product declines that continue to accompany/precede these price increases.

I find fault and place blame on Disney when:
- Most major airports have monorails/people mover trains that are cleaner and in better shape than the monorails
- The only venue open past 9 pm on my trips is the commercialized mall that has become Disney Springs, yet those early closure have shown no improvement and often a decline in cleanliness and 3rd shift maintenance.
- I spend a week in disney and between the money grab parties and a private event in the middle of these parties, I can only spend 1 evening in MK without shelling out MORE money
- Hotel renovations have rendered once themed rooms into generic roadside motels devoid of any color and theming.

I like luxury cars, always have and likely always will, and it's my indulgence in life. Each redesign they push the limits of technology and efficiency, delivering a product that in nearly every way improved upon the last version - so when the price increases every so slightly, I am ok with the parting of my dollars as I feel I am getting (in return) a better product. Now, not the best analogy as capital investments and life cycles are very different for a durable good product like a car vs a theme park; but an analogy of how my dollars get spend nonetheless. My wife and I are , have plenty of disposable income and have been going less and less over the past few years. Each time it gets harder and harder to push that complete reservation button. Time will tell if their short term thinking will have lasting effects on their customer base and bottom line. . . .

 

[Sirwalterraleigh]

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.

His business model is blue ocean...fish out the pond

Little mystery.

 

[Sirwalterraleigh]

No Dinsey is fooling around with movie ticket prices as well. https://time.com/3845333/avengers-ultron-theaters-disney/

Article is 4 years old, bro

 

[Sirwalterraleigh]

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.

This is what I have been saying on Dis and here for now 8 years and counting.

The base prices are everything. They’ve disintegrated the recession proofing that has kept them afloat many times over 60 years

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 know it couldn’t be pine valley...so how is Merion or Baltusrol these days?

(I was at pebble 4 days ago )

 

[eliza61nyc]

This is what I have been saying on Dis and here for now 8 years and counting.

The base prices are everything. They’ve disintegrated the recession proofing that has kept them afloat many times over 60 years

I know it couldn’t be pine valley...so how is Merion or Baltusrol these days?

(I was at pebble 4 days ago )

lol, key word 8 years. Disney made a boatload of money in those 8 years. Question how have they "disintegrated" any thing. First, when the recession comes, no one knows how bad or how long it will be. A mild recession? not a darn thing will happen. A bad 2007 type recession? well honestly if that happens and we lose 8 million jobs, I'll have bigger issues than whether Disney is losing it's base. I keep hearing predictions that the student loan bubble is going to cause the country to implode. Maybe, maybe not. trade talks have the markets volatile during a season when they're usually pretty calm and next year's presidential election could cause jittery nerves. who knows.

so you've been predicting it for 8 years, sort of like they've been predicting the big one in California. what do you think will happen to Disney? company goes bankrupt? parks close down? do you mind if I make a thread asking this question?

heck, I'm thinking it might get the public a crapload of discounts and incentives, less crowds and maybe Bob canned

 

[Kingoglow]

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.

Ah Park hoppers... that's where the extra $200 came from. Park hopper is a personal choice for a 'pay up' experience. That's like saying my price to get into a park for one person is $300 because I paid to goto an After Hours event. A good example of a Youtube using click bait to generate revenue for themselves.

 

[drizgirl]

Ah Park hoppers... that's where the extra $200 came from. Park hopper is a personal choice for a 'pay up' experience. That's like saying my price to get into a park for one person is $300 because I paid to goto an After Hours event. A good example of a Youtube using click bait to generate revenue for themselves.

Well, it's not like $600 is a bargain.....

 

[KBLovedDisney]

Did they really do this?

This may be the site that should not be named?...Haven't quite figured that out yet but this is what I found...

Edit: Ha! Yeah, I can't post the link. It is from the site that shall not be named.

 

[eliza61nyc]

This may be the site that should not be named?...Haven't quite figured that out yet but this is what I found...

Edit: Ha! Yeah, I can't post the link. It is from the site that shall not be named.

lol can someone please pm the name of the site that shall not be named.

 

[Sirwalterraleigh]

lol, key word 8 years. Disney made a boatload of money in those 8 years. Question how have they "disintegrated" any thing. First, when the recession comes, no one knows how bad or how long it will be. A mild recession? not a darn thing will happen. A bad 2007 type recession? well honestly if that happens and we lose 8 million jobs, I'll have bigger issues than whether Disney is losing it's base. I keep hearing predictions that the student loan bubble is going to cause the country to implode. Maybe, maybe not. trade talks have the markets volatile during a season when they're usually pretty calm and next year's presidential election could cause jittery nerves. who knows.

so you've been predicting it for 8 years, sort of like they've been predicting the big one in California. what do you think will happen to Disney? company goes bankrupt? parks close down? do you mind if I make a thread asking this question?

heck, I'm thinking it might get the public a crapload of discounts and incentives, less crowds and maybe Bob canned

Here’s where you have to be realistic...

Do you think any of the current crop of awful world leaders and economists have “solved the recession”?

Absolutely not. The only difference when the egg hatches this time...it may be a velociraptor instead of a chicken.

I know the young and the greedy have convinced themselves on boards such as these that we are entering a world of “pure wealth” and “Disney luxury”...

...hold my beer This is not an “if” question.

 

[monothingie]

lol, key word 8 years. Disney made a boatload of money in those 8 years. Question how have they "disintegrated" any thing. First, when the recession comes, no one knows how bad or how long it will be. A mild recession? not a darn thing will happen. A bad 2007 type recession? well honestly if that happens and we lose 8 million jobs, I'll have bigger issues than whether Disney is losing it's base. I keep hearing predictions that the student loan bubble is going to cause the country to implode. Maybe, maybe not. trade talks have the markets volatile during a season when they're usually pretty calm and next year's presidential election could cause jittery nerves. who knows.

so you've been predicting it for 8 years, sort of like they've been predicting the big one in California. what do you think will happen to Disney? company goes bankrupt? parks close down? do you mind if I make a thread asking this question?

heck, I'm thinking it might get the public a crapload of discounts and incentives, less crowds and maybe Bob canned

Disney while very profitable is deeply in debt. Look at all the debt assumed under the 21CF acquisition and the billions being spent on Disney+, Disney Parks, etc.

There is also the apparent brand fatigue of SW, and the over saturation of Marvel coupled with the transition to the next MCU phase (Which looses a lot of the core group of characters people like.) Plus Avatar 2,3,4 (I'll stop it there)

Disney leadership and organization, while apparently disciplined and structured to deliver solid earnings and growth, has a lot of underlying problems that could cause their dominance to quickly turn.

 

[John park hopper]

Not intended to be political and I'm not an economist ----With the recent huge swing in the stock market --trouble in Hong Kong --Britains pullout of the EU and other world hot spots are we looking at a potential recession within a year. Disney may not have a pricing issue now but one may be on the horizon

 

[eliza61nyc]

Disney while very profitable is deeply in debt. Look at all the debt assumed under the 21CF acquisition and the billions being spent on Disney+, Disney Parks, etc.

There is also the apparent brand fatigue of SW, and the over saturation of Marvel coupled with the transition to the next MCU phase (Which looses a lot of the core group of characters people like.) Plus Avatar 2,3,4 (I'll stop it there)

Disney leadership and organization, while apparently disciplined and structured to deliver solid earnings and growth, has a lot of underlying problems that could cause their dominance to quickly turn.

Yep they do have a lot of debt but they also have a huge cash flow , cash flow historically has been a great indicator of ability to pay off those debts. and with it's streaming coming on line,analyst believe (and they have been known to be wrong so that's no guarantee) that it will only get better.

Not sure I agree with the brand fatigue. Star wars yes? Marvel? not a bit. couple that with they've still got a great trove of content. Don't discount that earning and growth factor. Disney has treated it's shareholders very very well and this year it's still got a healthy ROI.
Didn't know there were plans for additional Avatars so you probably hit the nail on the head with that one. Black widow is getting her own movie, it will do well. Doctor strange is getting another crack at it and a new one with Angela Jolie.

Now park specific I think is trickier. I agree a recession is long over due, the question will be how bad and who it hits. that I don't have any thoughts.
Now let me add, I'm not a very long range prognosticator. I usually look no more than 5 years ahead.
Full disclosure: I still buy Dis stock monthly and got 2 trips plan for 2020 so I'm still a happy camper.

ok crystal ball time? let's say we get a repeat of 2007, what do you think will happen in the parks?

 

[eliza61nyc]

Here’s where you have to be realistic...

Do you think any of the current crop of awful world leaders and economists have “solved the recession”?

Absolutely not. The only difference when the egg hatches this time...it may be a velociraptor instead of a chicken.

I know the young and the greedy have convinced themselves on boards such as these that we are entering a world of “pure wealth” and “Disney luxury”...

...hold my beer This is not an “if” question.

lol, I think you kinda just reworded what I said. Yes there will absolutely be a recession. no one doubts that. it's how life works. as you said, the unknown is how bad and who it effects.

Ok so let's play 20 questions, if we have a recession like say 2007, what do you think will happen in the parks??

 

[Cmdr_Crimson]

They must be following the ways of how Roller Coaster Tycoon Works...

 

[Sirwalterraleigh]

lol, I think you kinda just reworded what I said. Yes there will absolutely be a recession. no one doubts that. it's how life works. as you said, the unknown is how bad and who it effects.

Ok so let's play 20 questions, if we have a recession like say 2007, what do you think will happen in the parks??

In 2007...hypothetically?

They would basically stop necessary expansion/reinvestment...turn up the heat on all pricing...offer temporary coupons...and create a natural “demand” scenario coming out of it where the people crave the same stuff at double the price

 

[OneofThree]

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

And this is where things are with them right now, IMO.

. . .my fault lies not with the price increases, but with the service and product declines that continue to accompany/precede these price increases.

Completely agree. Personally, I'd pay $200-$300 per day for a reasonable crowd level before paying current prices for current crowds -which is why the Mouse and I are taking some time apart to examine our relationship.

 

[Hockey89]

At least the people in Tokyo have some respect and manners.

For personal space they don't