News Disney CEO Bob Chapek suggests price hikes are coming to the parks thanks to guest demand

[Sirwalterraleigh]

Or go to the park ressie system and lower the "MAX PARK ATTENDANCE" value.

In a nutshell:

Which they just TOLD everyone 3 days ago they aren’t doing…and everyone just sprinted past that.

 

[DCLcruiser]

Do whatever you can to push quarterly profits as long as you can…that’s the “goal”

At this rate….chapek can “get fired” with maybe $300,000,000+ in 4 years?

Anyone miss Eisner yet? The guy who wanted to be remembered forever?
I remember.

Oh, so then what are we all debating? They are just seeing that people want to go the parks, and they feel that they can increase prices to take advantage.

I thought there was actually an issue at the parks to fix.

 

[Sirwalterraleigh]

Oh, so then what are we all debating? They are just seeing that people want to go the parks, and they feel that they can increase prices to take advantage.

I thought there was actually an issue at the parks to fix.

I hear ya there

But the reality is nothing gets done in parks under this “model”. It becomes less of a priority every day

 

[Tha Realest]

What are some tangible ways one can "push back" against these increases? Here's what I can think of. I've done some blend of all of these in recent trips:

1) Not go
2) Not go as often
3) Go to Universal / Sea World instead
4) Do not reserve directly through WDW; rent from DVC (already have their money, not a new cash reservation)
5) Eat outside the park as much as possible (bring breakfast food and snacks)
6) Don't buy merchandise within the parks (haven't bought anything in the park stores on the last few trips)
7) Judicious use of kids meals on mobile order

 

[DCLcruiser]

I hear ya there

But the reality is nothing gets done in parks under this “model”. It becomes less of a priority every day

I assume you mean no improvements, updates or even proper maintenance? Yea, if the demand is bonkers, and they can increase prices at will, there's less incentive to reinvest in the parks. They have to feel pain in their purse to add money to the parks.

[UO Epic Universe] is our only hope, Obie Wan.

 

[HauntedPirate]

What are some tangible ways one can "push back" against these increases? Here's what I can think of. I've done some blend of all of these in recent trips:

1) Not go
2) Not go as often
3) Go to Universal / Sea World instead
4) Do not reserve directly through WDW; rent from DVC (already have their money, not a new cash reservation)
5) Eat outside the park as much as possible (bring breakfast food and snacks)
6) Don't buy merchandise within the parks (haven't bought anything in the park stores on the last few trips)
7) Judicious use of kids meals on mobile order

Boil that list down to a combination of 1 and 3. And maybe add Busch Gardens and other area attractions to the list.

 

[Disstevefan1]

I assume you mean no improvements, updates or even proper maintenance? Yea, if the demand is bonkers, and they can increase prices at will, there's less incentive to reinvest in the parks. They have to feel pain in their purse to add money to the parks.

[UO Epic Universe] is our only hope, Obie Wan.

For proper maintenance they can play the COVID card.

 

[Sirwalterraleigh]

What are some tangible ways one can "push back" against these increases? Here's what I can think of. I've done some blend of all of these in recent trips:

1) Not go
2) Not go as often
3) Go to Universal / Sea World instead
4) Do not reserve directly through WDW; rent from DVC (already have their money, not a new cash reservation)
5) Eat outside the park as much as possible (bring breakfast food and snacks)
6) Don't buy merchandise within the parks (haven't bought anything in the park stores on the last few trips)
7) Judicious use of kids meals on mobile order

They’re most scared of 2 and 6

And that’s what crushes them in a recession…which nobody believes can exist because it’s been so long.

It’s like a Sasquatch now

 

[Mr Mindcrime]

that the only way to reduce crowds long-term is through price hikes

This is discussed here all the time, but I'm not sure I believe this. Why would Bob care about reducing crowds?

The less people that are in the parks means less cupcakes and t-shirts to sell. Bob is absolutely not concerned one tiny bit if the park is too crowded. Being too crowded apparently isn't keeping enough people away (that's a brain twister if you think about it) to reduce profitability. Again, Bob isn't focused on your experience .... he is focused on your wallet.

 

[Tha Realest]

What are some tangible ways one can "push back" against these increases? Here's what I can think of. I've done some blend of all of these in recent trips:

1) Not go
2) Not go as often
3) Go to Universal / Sea World instead
4) Do not reserve directly through WDW; rent from DVC (already have their money, not a new cash reservation)
5) Eat outside the park as much as possible (bring breakfast food and snacks)
6) Don't buy merchandise within the parks (haven't bought anything in the park stores on the last few trips)
7) Judicious use of kids meals on mobile order

8) Use a friend / family member's D+ account, and not go see their movies in the theater

 

[Mr Mindcrime]

Normally, I'd be inclined to agree with you, but Disney been issuing stocks and making money for the shareholders since the 50s.

There was a different mindset when it came their guests at one point. That is clearly not the case now.

Oh, I certainly get that. Walt was a businessman as much or more than he was a creative. Difference was, Walt wanted (as much as I can tell from reading history) to both provide a great product/experience as much as he wanted to profit from it.

My comments were more geared toward the current state of management.

 

[Tha Realest]

This is discussed here all the time, but I'm not sure I believe this. Why would Bob care about reducing crowds?

The less people that are in the parks means less cupcakes and t-shirts to sell. Bob is absolutely not concerned one tiny bit if the park is too crowded. Being too crowded apparently isn't keeping enough people away (that's a brain twister if you think about it) to reduce profitability. Again, Bob isn't focused on your experience .... he is focused on your wallet.

Exactly. The only crowds they care about are large numbers of on-the-clock employees milling about because they're underutilized. That is the reason for the reservation system - not so that the parks don't become "overcrowded."

 

[Sirwalterraleigh]

For proper maintenance they can play the COVID card.

They’re also still doing that for staffing.

Refused to pay wages that rose due to demand…so the customers just get less as they pay more

 

[eliza61nyc]

Actually, the board scares me more. They are letting Chapek BE Chapek cause its filling their wallets and safes. But as the economy continues to dwindle, and free expenses drop, eventually all this cost driven work will stop being profitable.

All they will do is blame Chapek, remove him, but then we will have to wait an see additional years to see if they revert back to what it should be. Net the 5 years or so Martin suggested earlier may last a whole lot longer

And don't just blame the board, I gotta lot of dough invested in 'ye old Disney' stock both in individual stocks plus retirement accounts. If I have to chose between making money or keeping prices low, sorry guys I'm going with door #1.
Investors really not interested in our happiness

 

[Sirwalterraleigh]

This is discussed here all the time, but I'm not sure I believe this. Why would Bob care about reducing crowds?

The less people that are in the parks means less cupcakes and t-shirts to sell. Bob is absolutely not concerned one tiny bit if the park is too crowded. Being too crowded apparently isn't keeping enough people away (that's a brain twister if you think about it) to reduce profitability. Again, Bob isn't focused on your experience .... he is focused on your wallet.

Iger said it at some stupid investor event in like 2016? So it has to be true.

Apparently there’s a little known amendment in the US constitution that throws him in Danbury federal country club if he were say a lie that he can never be held to…Life, Liberty, and the Pursuit of Magic

That’s why this stupid comment is repeated over and over again.

I believe the context was attendance was down for a year or two due to price shock. But he gave the Praets a lie more to their tastes.

 

[Sirwalterraleigh]

And don't just blame the board, I gotta lot of dough invested in 'ye old Disney' stock both in individual stocks plus retirement accounts. If I have to chose between making money or keeping prices low, sorry guys I'm going with door #1.
Investors really not interested in our happiness

Oh…you’re not one that looks at your 401K and yells “I’m losing money!!!” That you never had, right?

Oh dear, Liz

 

[eliza61nyc]

Too many people visiting are going based on nostalgia - "I went when I was xx years old, so my kids have to as well!". Those people get a rude wake up call when they see the prices and complicated nature of doing damn near anything these days. The kids don't develop the emotional attachment like their parents did because of the instant nature of entertainment these days. Disney loses both sets of consumers. Eventually they'll have a smaller and smaller customer base (and some bad word-of-mouth in social media could be really handy).

But it'll never happen. People are stupid. Disney trips have become a status symbol for most, and how many overpriced backpacks and ridiculously overpriced (not to mention useless outside the parks) Minnie ears you can collect are splashed all over social media to show off. No thought, no logic, just 'keeping up with the Joneses' and showing off to make their fragile egos feel better. And Bob is cashing in and laughing all the way to the bank because of it.

The bigger question is - How are shareholders not revolting right now with Bob 2.0 still holding dividends hostage because of Bob 1.0's Fox ego purchase?

I disagree with "People are stupid" HP. As always I say my pool is small but the people I know go for one reason and one reason only, they have great vacations. They don't care that "back in the day" I use to get "xyz".
The folks I know don't have to keep up with the Joneses, lol a lot if them are the Joneses.
They can and do spend their money many places. They go to Disney for one reason. They have a good time.

 

[Mr Mindcrime]

What are some tangible ways one can "push back" against these increases? Here's what I can think of. I've done some blend of all of these in recent trips:

1) Not go
2) Not go as often
3) Go to Universal / Sea World instead
4) Do not reserve directly through WDW; rent from DVC (already have their money, not a new cash reservation)
5) Eat outside the park as much as possible (bring breakfast food and snacks)
6) Don't buy merchandise within the parks (haven't bought anything in the park stores on the last few trips)
7) Judicious use of kids meals on mobile order

All great choices.... shows great initiative.

However, the only thing that would get Bob's attention would be choice number 8:
8) Don't give TWDC a penny of your money for anything

Until that happens, it's full-steam ahead!

 

[eliza61nyc]

Oh…you’re not one that looks at your 401K and yells “I’m losing money!!!” That you never had, right?

Oh dear, Liz

Actually no sir, I'm not. I'm a realistic (lol most of the time)

For the last 12 years I've raked in between 11-19% annually on my portfolio. No way am I getting upset because of a down market.

In fact I'm encouraging my kids to up their 401k contributions. I'm buying dude. I'm buying

I Said the same thing to goofymost (I think that's his name) a few weeks back in another thread.

 

[skopas]

...the way this guy speaks, feels im getting reamed somewhere else. His verbiage screams dishonesty.