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

[flynnibus]

Agreed but from what I can see the guest IS satisfied with the product which seems to upset the crowds here and we seem to use those things as a barometer to whether or not Disney will last or not

It's akin to the sugar analogy... It takes great, but is it really what will sustain you in the long run, or will it have consequences.

Guests only look where they are going next... not where they will be 3, 5, 7+ years down the road. They are not burdened with carrying about consequence and how the larger system will work together or be impacted.

In short... guests have no foresight... they don't need it. Designers and Management do.

 

[Model3 McQueen]

This is a surface scratch but I don't think we're giving Chapek enough credit here. He's been pushing IP and merchandising / advertising to where they do not belong. Can't speak for WDW, but hyperspace mtn / mission BO / Pixar Pier, price increases regularly - it's all head-scratching to people like me. Why am I paying more to see non-original ideas with a lower quality come to fruition? Disney always tried to sell us on merchandise, but now it's all like a low quality billboard reminding us to invest in Disney's newest acquisitions.

 

[wendysue]

We used to go at least twice a year, but have NOT gone now for over a year and a half because of price increases. I'm sure we aren't the only ones.

 

[bugsbunny]

Iger flat out said there is no pricing issue based on a lot of market research and data within the company.

 

[Chef Mickey]

View attachment 396497

It's hard to come up with a counterpoint other than the slightly lower domestic attendance. I guess that's confirmation the pricing is possibly an issue that resulted in 3% lower attendance? I think they had 7% greater revenues, however...so that seems to refute that.

 

[padlock]

In many ways, attendance is a trailing indicator for the perceived value people place on going to Disney. People often plan and book their vacations several quarters in advance.

A leading indicator would be current guest satisfaction surveys. If the current guests aren't happy, that could likely indicates problems in the future.

 

[Disorbust]

From my understanding World population has been trending down, especially in First World countries. Of the immigrants that come to the the US, how many can afford WDW?

What about other earnings reports?

ORLANDO, Fla. — Attendance and revenue at SeaWorld parks have continued to rise, according to a company earnings report released Tuesday.

• 9.8M have visited SeaWorld parks in 2019, company says
• 2nd quarter total revenue was $406M, a 3.6% increase
• New attractions opened at company's Tampa, Orlando parks

Second quarter earnings showed SeaWorld's attendance reached 6.5 million visitors, a 0.8 percent increase from the same quarter last year.

I have no idea on Universals, anyone else?

 

[World_Showcase_Lover007]

Iger is corporate hack. Guests are still paying the money to get in the park, but they will reach a financial saturation point eventually. By then it will be too late and attendance will plummet as most guests dont check prices every month/quarter likewe do. they just say to hell with it all. better to pull back sooner on the record breaking revenue.

 

[NickMaio]

I love it...coming from a guy who just received a 60 million dollar bonus

 

[NickMaio]

We used to go at least twice a year, but have NOT gone now for over a year and a half because of price increases. I'm sure we aren't the only ones.

Nope....you are not alone.
The wild price jumps are catching up with WDW.
Greed....plain and simple.

 

["El Gran Magnifico"]

Yes. Pricing has increased. Yes. Room Rates have increased. That being said, Disney is still a reasonable experience. There are still options for a family of 4 to stay on property for a week at under $5k. They can stay off property for less. And they could spend double based on their choices.

While ticket prices may be somewhat of an issue, I think discretionary spending on property is as big (if not bigger) of an issue. And I think it falls into several groups.

1. I'm cutting back on food and merchandising because I simply can't afford it
2. I'm cutting back on food and merchandising because there is no longer value/quality for what I'm paying (which is a group I'm partly in)
3. I'm looking at other options (outside of Disney) because I simply can't afford it.
4. I'm looking at other options (outside of Disney) because there is no longer value/quality for what I'm paying. (which is a group I'm also partly in)
5. I'll pay whatever Disney wants me to pay

Groups 3 and 4 it doesn't necessarily equate with abstaining from Disney. You just will go less, eat more offsite, and your loyalty to the brand will diminish. (Which I think is a much bigger problem for Disney).

My biggest problem with Disney at the moment is not that my AP has increased, nor is it that I'm being charged $24 for parking at a resort. My biggest problem with Disney is the cost cutting they've implemented impacting food quality, staffing, quality of merchandising etc.

If I spend $300 on a Signature Dining experience - I want to leave thinking "Yeah, it was a little pricey, but man, what a good meal." Sadly, my view right now is "Food was okay, I can't believe I dropped $300 on that."

 

[RoyWalley]

We used to go at least twice a year, but have NOT gone now for over a year and a half because of price increases. I'm sure we aren't the only ones.

You're not alone. This is the 1st time since 2009 we have not gone to WDW. We made 14 trips in in 9 years, but I don't see us going back anytime soon. Yesterday I was pricing a 3 day trip for October to WDW and the prices for Hotel were so out of hand, that I said no way. We miss it terribly but we are now looking at going elsewhere next spring for vacation.

 

[jloucks]

You're not alone. This is the 1st time since 2009 we have not gone to WDW. We made 14 trips in in 9 years, but I don't see us going back anytime soon. Yesterday I was pricing a 3 day trip for October to WDW and the prices for Hotel were so out of hand, that I said no way. We miss it terribly but we are now looking at going elsewhere next spring for vacation.

It is fascinating the different reasons people do not return. I have not been back in several years, and have no plans to return. For me, it is an entirely different reason. For me, the parks are too crowded. Makes for a poop-tier world experience imho.

So we have proof Disney is losing at least some customers due to prices and overcrowding.

That is such a weird combo from an economics standpoint. At least, until you understand the broad demographics that go to WDW.

You have...

• Folks that cannot afford to go, but charge it
• Folks that cannot afford to go, but scrimp and save and sacrifice to go
• Folks that are middle class and can afford it
• Folks that are upper class and can afford it

So WDW has managed to lose demand from two of the above demos! That cannot be good.

Although, how much demand is up for debate. Or not. 3% I think was the number we heard?

 

[jloucks]

If I spend $300 on a Signature Dinning experience - I want to leave thinking "Yeah, it was a little pricey, but man, what a good meal." Sadly, my view right now is "Food was okay, I can't believe I dropped $300 on that."

This should be a huge red flag to Disney. Generally, people do not make this mistake twice.

 

[KBLovedDisney]

This is how I picture Iger and his crew now

With their heads in the sand.

 

[eliza61nyc]

Nope....you are not alone.
The wild price jumps are catching up with WDW.
Greed....plain and simple.

Can I ask how they are catching up with wdw? a 3% dip? weren't park revenue up 7% from last year?

 

[NickMaio]

Can I ask how they are catching up with wdw? a 3% dip? weren't park revenue up 7% from last year?

This is just the start of a small snow ball that will turn into a huge Ice boulder.
Look at DL SWGE....its a ghost town now.
Sure profits are up, but with declining repeat customers this might effect their bottom line.
Meanwhile, many people on forums around the globe can say, "we told you so"........

 

[Indy_UK]

This is just the start of a small snow ball that will turn into a huge Ice boulder.
Look at DL SWGE....its a ghost town now.
Sure profits are up, but with declining repeat customers this might effect their bottom line.
Meanwhile, many people on forums around the globe can say, "we told you so"........

Is it actually a ghost town? Or just not got 10 hour lines to get into the land? There's a big difference

 

[NickMaio]

Is it actually a ghost town? Or just not got 10 hour lines to get into the land? There's a big difference

I have been told by people who went and read online that it is not busy at all...... Compared to what people thought it was going to be like.
Let's see what DHS will be like.
We will be there the week it opens.

 

[flynnibus]

I have been told by people who went and read online that it is not busy at all......

That period is over... it's steady busy now again. The big news was the crash of attendance leading up to GE opening and the period during the blackout dates. It's steady now.. but not the blowout crowds... and that's the part that Disney needs to be concerned over. Spending that kind of money for just 'average' results. We'll see more when RotR opens and WDW...