Demand Based Pricing Will Be A Reality - Let's Be Objective

[Raineman]

I think in a situation like this, a trip to Disney is going to be the last thing on their mind. If you know money is tight, then you forego the unnecessary items. Disney is an unnecessary item and something that families absolutely do NOT need to spend money on. School, books, clothes, food, etc are all items that should come before a trip to Disney.

I never said that these items are foregone for a trip to Disney. I said that after all of these things are provided, it would take the family a while to save up for the trip, but it is still within their means, probably having to sacrifice alot to do it. But why should this family be denied the opportunity, when they are willing to make the necessary sacrifices, because Disney jacked up the cost of the trip? Disney can still pad the bank account and do everything else they need to do, but still have an affordable option. Obviously, those at the poverty line will still not be able to take a WDW trip-that would have to be pretty much free, and bad business on Disney's part, so you do have to draw the line somewhere, but that line should not be drawn at the lower upper class level.

 

[DisneyFans4Life]

I never said that these items are foregone for a trip to Disney. I said that after all of these things are provided, it would take the family a while to save up for the trip, but it is still within their means, probably having to sacrifice alot to do it. But why should this family be denied the opportunity, when they are willing to make the necessary sacrifices, because Disney jacked up the cost of the trip? Disney can still pad the bank account and do everything else they need to do, but still have an affordable option. Obviously, those at the poverty line will still not be able to take a WDW trip-that would have to be pretty much free, and bad business on Disney's part, so you do have to draw the line somewhere, but that line should not be drawn at the lower upper class level.

It's not that they would be completely denied the opportunity...it would just take them longer to save and they would maybe need to plan to go during a cheaper time of year versus more expensive.

I can't disagree with people on this forum that are upset about a price increase. Having to pay more money is never fun; trust me...I'm not a rich guy by any means. What I don't understand is the reason why people are upset. WDW is doing a TON of construction. Look at the expansion of Disney Springs, Avatar Land, Star Wars Land...those things don't come free and someone has to pay for it. Whether you agree with the expansion ideas or not is beside the point...the expansion is happening and it has to be paid for. No one should be surprised that prices went up.

 

[SandraAnn]

If you look at Disneyland Paris, that's how it will work. One type of ticket works every day, the next level down works all but Christmas, New Years, the next down no weekends and no holiday dates. So there are 3 tiers. This will be really confusing for a lot of people at the beginning. Difference between full access and next level was about $12 a day

Oh ok, makes sense. Yeah, this will definitely be a mess at the beginning I think!

 

[Chef Mickey]

I think in a situation like this, a trip to Disney is going to be the last thing on their mind. If you know money is tight, then you forego the unnecessary items. Disney is an unnecessary item and something that families absolutely do NOT need to spend money on. School, books, clothes, food, etc are all items that should come before a trip to Disney.

Exactly. But people want everything. I guarantee those same people crying about Disney have 4 cell phones in their family and probably pay over $6,000 during a 2 year contract for phones. Add TV, internet, eating out, and other voluntary purchases, and people could save a lot.

Let me give an easy example. Pretty much all of America has a phone these days. Since Apple owns this market, let's use them as an example (not like Samsung is any cheaper).

Year 1
$150/month service X 12 mos = $1,800 - Based on what I know, this is reasonable for 4 lines for SERVICE only.
$699 (cheapest iPhone) X 4 phones = $2,800 - Assuming cost up front, you're paying it over the 2 years most likely.
Total Year 1 = $4,600

Year 2
$150/month service X 12 mos = $1,800
Assume you keep phones from before $0
Total Year 2 = $1,800

2 Year Grand Total = $6,400

I am even amazed at this simple analysis, but it's true for SO many families. "Rich" people don't have smartphones these days. Practically everyone you see down to about age 7 has one. Just say it out loud. "I spend $6,400 in 2 years for cell service."

Now ask yourself, "Is Disney the only company doing this?"

Just cell service would be a NICE trip to Disney, but who wants to give up cell phones?

 

[Chef Mickey]

It's not that they would be completely denied the opportunity...it would just take them longer to save and they would maybe need to plan to go during a cheaper time of year versus more expensive.

I can't disagree with people on this forum that are upset about a price increase. Having to pay more money is never fun; trust me...I'm not a rich guy by any means. What I don't understand is the reason why people are upset. WDW is doing a TON of construction. Look at the expansion of Disney Springs, Avatar Land, Star Wars Land...those things don't come free and someone has to pay for it. Whether you agree with the expansion ideas or not is beside the point...the expansion is happening and it has to be paid for. No one should be surprised that prices went up.

And Disney Parks don't make an insane profit. Their margin is like 15%. That means they make $15 on every $100 in revenue. Bet people think it's much more.

 

[Raineman]

Man, some of you are unbelievable. I guess it's just a different mindset.

Working hard doesn't mean you get a trip to Disney. There are people who don't work "hard" at all and go all the time. Life isn't fair and this isn't just about Disney "making it affordable." With your logic, anyone can define affordability and be upset if any item or service is unattainable due to its price. How does that make any sense? Forget Disney. Is this how you think about cars, houses, nice restaurants, other vacations, and a pair of Jordans for your son?

Some people choose to buy an expensive house and expensive car (Typically with a loan). Maybe if they skipped the navigation on their depreciating Infinity they can't afford, they could go to Disney? People have no problem spending $899 for an iPhone and $2,000 for cell service annually, but now Disney needs to make it "affordable?" No company makes things affordable! They charge what people will pay.

Some of you need a reality check or a class in business or economics. This is the big leagues, not a Disney movie.

The rich people you mentioned don't "deserve" it more than than the hard working family, but guess what? The family with money gets to go. That's life. They get the nice toys. They get the nice cars. They get the hot girls. Does the other family want it? Go get it...you live in America...nothing stopping you. The lower income family needs to get to higher income. The onus is on them, not Disney.[/QUOT

Nothing stopping you? Really? Have you seen the economic environment we are living in? It's not quite as easy to move to the next higher income bracket as it used to be. And I am not saying the Disney should be affordable for everyone, because that is impossible-Disney has to draw the line somewhere, but that line seems to be moving further and further up the rungs on the class system ladder.
People who could fairly easily afford a WDW vacation in the past, who still have the same basic income level, or even improved somewhat in that area, are no longer able to afford it. But I guess "that's life", huh? This whole "just accept what you can and can't have and be happy with it" attitude is elitist and shows why the gap between the have and have-nots is widening.

 

[Chef Mickey]

You are correct that Disney does not owe everyone affordability. But Disney also does not owe us lower crowds or more E-ticket rides or whatever it is that a particular Disney fan wants. You seem to prioritize crowd control over cost. Others (perhaps including Disney?) may not agree. I am making no judgments one way or the other.

True, but consumers win no matter what. If they don't do enough to keep people happy, they won't come back. I'm not worried about Disney "Owing" me anything, because as a consumer, I hold all the cards. I decide where to spend my money. They try to get me to spend it there and will continue to do so.

 

[DisneyFans4Life]

Disney has to draw the line somewhere, but that line seems to be moving further and further up the rungs on the class system ladder.

This is true, but it's not specific to Disney only. A lot of entertainment companies are doing the same. You can look at concert tickets, sporting events, heck...even Universal has increased prices over the years...and it can potentially prevent some people from being able to enjoy those events. I'd love to go to Hawaii for vacation. Could I afford to...sure...if I saved for a few years. I can't be mad at the airlines for charging so much, or the hotels for charging so much.

 

[POLY LOVER]

this is not that big of a deal that its going to address overcrowding at the parks and solve that issue. if you want a comfort level at the parks during high demand times just set the max capacity attendance levels lower for those dates. There are limited times when familys can go on vacation nowdays. So if you can only go during a set time of the year you're still going to go and you'll just pay more. Do you really think Christmas time is going to be less crowed because of this.

 

[POLY LOVER]

so lets check this logic out, Lets say, I own a Steakhouse that is packed on Friday and Sarurday nights but I want to draw guest to eat during the weekdays when its slower. The rule of thumb is you run special pricing for meals on those days as an incentive to guests. I would not raise my already high prices prices on Friday and Saturday nights and tik off my loyal regular weekend guests and chance killing my weekend business. However if I did not care because my Steaks are the greatest ever and know guests will still come regardless of price then I do it and just make more money. WIN WIN with my extra profits I go to Disney and stay at the Grand Floridian.

 

[draybook]

OK, forget living conditions in other countries. It's still not a birth right to go to Disney for the people here. Very simple.

Disney doesn't owe you an affordable vacation and again, affordable is relative. There are places in the world WAY more expensive than Disney and it isn't even close. I think Disney is VERY affordable and a VERY good value for the amount of entertainment you receive.

Then you obviously haven't been to Animal Kingdom or Hollywood Studios lately...

 

[wendysue]

I agree - but the flip side is ANY increase in guest count will add guests to MK. No one is coming to WDW and NOT going to MK.
All 4 parks need added capacity IMHO.

I disagree a bit. (Well, at least for US) We HAVE come to WDW and not gone into the parks. Sometimes we get a room only, use ME and the bus service to DTD, boardwalk and other areas. We can use the 700+ dollars it would have cost for 5 day PH tickets and rent a car and pay for tics to Busch Gardens AND a day at UNI and still have some left over. As prices rise, we will continue to do this, as we love the WDW resorts and experience, but do not care to be herded around with FP and such.
Either way, we will have a wonderful time...

 

[raven]

That's a huge issue. They have to at least sell the amount of tickets equal to the number of rooms on property. No doubt about that.

To be honest, call me crazy, but I think Disney will eventually have enough hotels to fill all parks to capacity and they can say, "stay with us, or you can't visit." That might be a little ambitious.

I wouldn't put it past them.

 

[Chef Mickey]

Then you obviously haven't been to Animal Kingdom or Hollywood Studios lately...

Was there in May.

 

[lunchbox1175]

I guess I'm the only one that thinks this has nothing to do with decreasing attendance or trying to control crowd levels, but in fact trying to build attendance during the non-peak times by keeping the price of admission cheaper during those periods. I am pretty sure that Disney is perfectly happy when the MK reaches a closure due to attendance, they have three other parks and two water parks that all of the overflow can go to, so I don't see them that concerned about crowd levels, unless they are too low.

 

[JourneysEnd]

I guess I'm the only one that thinks this has nothing to do with decreasing attendance or trying to control crowd levels, but in fact trying to build attendance during the non-peak times by keeping the price of admission cheaper during those periods. I am pretty sure that Disney is perfectly happy when the MK reaches a closure due to attendance, they have three other parks and two water parks that all of the overflow can go to, so I don't see them that concerned about crowd levels, unless they are too low.

Possibly. When you look at Disneyland Paris' prices, multi-day tickets are not tiered. The tier seems to focus on the day trippers.

 

[DisneyFans4Life]

Maybe WDW is realizing that their AP are actually under priced. Take someone like me for example; I live about an hour away and go about twice a month and typically go to multiple parks in a day. Throw in a few visits where I stay over night or for multiple days and all of a sudden my trips to WDW start becoming cheaper per visit. WDW probably knows this and knows a lof of local people do this and feel they are not charging enough. I mean heck...over the course of a year to only pay $15 per visit to visit WDW...that's crazy!

So they raise the prices of passes a little. I'm still going to go just as often or more. Maybe I'll pack a lunch a couple times to offset the cost or maybe I don't stay over night one time. For someone like me...this price increase isn't something that would prevent me from renewing.

 

[POLY LOVER]

Disney is a multi--BAZILLION dollar company not hurting one bit, if anything the current economy have sent them to this profit level. What is all this crazy talk about, some have gone way off the path of a basic rate increase. These parks are full of vacationers and will continue to be as long as hey feel they are getting value for their dollar.

 

[ford91exploder]

And Disney Parks don't make an insane profit. Their margin is like 15%. That means they make $15 on every $100 in revenue. Bet people think it's much more.

The thing is over the years Disney has become very inefficient, Back when Disney CARED about the parks in the 80's through the early nought's GPM was on the order of 25% as they are for UNI now. Reinvestment is necessary for an asset to continue producing revenue just like machines require maintenance. Instead TWDC has been using the parks as an ATM for the rest of the company.

 

[ford91exploder]

I am amazed at how much people spend on cell phones. If it weren't for texting I would still have a flip phone. Just to hard for me to text people back on a flip phone. I use a Moto E tracfone BTW. People keep upgrading there Iphones as well which is just crazy to me. Do you really get much new to justify the upgrade price? I don't think so.

Still use a iPhone 4s like the form factor and the new ones do nothing better than this phone, I'll upgrade when software support ends but I don't upgrade to the 'new shiny' just because it's the 'new shiny' - BTW I pay full retail for the phone so I'm NOT tied to a contract for 2 years