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

Animaniac93-98

Animaniac93-98

Well-Known Member
marni1971 said:
What more to expect from an ex head of consumer products.

Bob. You’re killing the company. You’re marginalising it into another bland Wall Street corporation who’s priority is the shareholder.

TWDC used to be different.
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This has been an issue for some time, but Bob has a habit for saying the quiet part out loud because he can't help himself.

It's also a risky business strategy that assumes the post-COVID travel surge will be indefinite and no personal or external factors will affect the public's appetite to visit his version of WDW at ever increasing prices.
 
el_super

el_super

Well-Known Member
marni1971 said:
TWDC used to be different.
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What would you do different to lower demand?

Animaniac93-98 said:
It's also a risky business strategy that assumes the post-COVID travel surge will be indefinite and no personal or external factors will affect the public's appetite to visit his version of WDW at ever increasing prices.
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A lot of chatter today has been focused on recession cues lifting. Specifically the falling gas prices spurring more travel (and lower airfare costs too). It isn't just a post-covid boom as it is a return to "normalcy." Demand at the parks was strong pre-COVID, so no reason to assume that isn't still the case post-COVID.
 
K

kdhjlm

Member
After our upcoming trip in a few weeks, this will be our last time going to the parks. We are DVC and go to WDW anually and have always done all 4 parks at least once(sometimes twice). Unfortunately as much as we have always loved Disney, all the changes and price hikes have forced us out. We'll just enjoy the hotel and other offerings in Orlando. So sad that this is our last parks trip. Hopefully our absence shortens the lines a bit for others..lol.
 
tnemgif

tnemgif

Well-Known Member
Everyone knows that businesses have two possible strategies when demand is high. Increase prices to lower demand. Or increase capacity to meet demand. It’s just so incredibly frustrating to see a company that thrives on goodwill focusing on the former and paying so little attention to the latter.

It seems to me that this will help drive short term profits, but they’re creating a very unsustainable bubble.
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
Animaniac93-98 said:
Bob trying to maximize the value of his contract extension before anything impacts current attendance.
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Sir_Cliff

Sir_Cliff

Well-Known Member
Animaniac93-98 said:
This has been an issue for some time, but Bob has a habit for saying the quiet part out loud because he can't help himself.

It's also a risky business strategy that assumes the post-COVID travel surge will be indefinite and no personal or external factors will affect the public's appetite to visit his version of WDW at ever increasing prices.
Click to expand...
I do see it more as Bob Chapek having a tin ear when talking.

To be fair, reading the actual comment, Chapek says prices will go up if demand continues to rise and can be lowered if it softens. So, that does suggest that if the travel surge wears off they can also adjust in the other direction. It's not pleasant to hear and there are a whole range of other issues involved (e.g. lack of investment in capacity, maintenance, other cutbacks, etc), but the comment is not that insane or out of line with how Disney has been operating for a long time.

Chapek said, "We read demand. We have no plans right now in terms of what we’re going to do, but we operate with a surgical knife here,” Chapek said. “It’s all up to the consumer. If consumer demand keeps up, we’ll act accordingly. If we see a softening, which we don’t think we’re going to see, then we can act accordingly as well."
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Sirwalterraleigh

Sirwalterraleigh

Premium Member
kdhjlm said:
After our upcoming trip in a few weeks, this will be our last time going to the parks. We are DVC and go to WDW anually and have always done all 4 parks at least once(sometimes twice). Unfortunately as much as we have always loved Disney, all the changes and price hikes have forced us out. We'll just enjoy the hotel and other offerings in Orlando. So sad that this is our last parks trip. Hopefully our absence shortens the lines a bit for others..lol.
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As a DVC, how do you feel about paying variable, full price for each day In said parks?

Is that what you signed for?
 
el_super

el_super

Well-Known Member
mf1972 said:
i feel like i have to call bs on bob’s story. they raise their prices every year regardless. to me, he’s just using the increase in attendance as an excuse.
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As an excuse to what... doing what they normally do?

He's speaking to an audience of investors and shareholders and showing that the demand for the product is so high they have the ability to raise the price. It speaks more to the long term health of the parks brand that demand is so high and has rebounded so quickly.
 
Sirwalterraleigh

Sirwalterraleigh

Premium Member
Sir_Cliff said:
I do see it more as Bob Chapek having a tin ear when talking.

To be fair, reading the actual comment, Chapek says prices will go up if demand continues to rise and can be lowered if it softens. So, that does suggest that if the travel surge wears off they can also adjust in the other direction. It's not pleasant to hear and there are a whole range of other issues involved (e.g. lack of investment in capacity, maintenance, other cutbacks, etc), but the comment is not that insane or out of line with how Disney has been operating for a long time.
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Prices never go down…not once

If they have “coupon” strategy return…they’re in more trouble than the customers are.

Things sound better when you put it that way
 

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