News Disney CEO Bob Iger says raising park prices and increasing capacity is not smart and criticizes previous policies

[GimpYancIent]

Interesting how everyone seems to carefully overlook B.I.'s very subtle comment about some interest in sports betting. Seemed like a cautious testing of the waters for a reaction.

 

[nickf456]

The lack of consumer backbone is the real issue…for sure

This... all of this...

Working in Guest Services at a major regional theme park this past summer, so many people would just nonchalantly drop $150/person on Fast Passes for the day (On top of park admission, dining/drinks, resort packages, etc.).

People like us will complain about price hikes but after observing a little bit of consumer behavior this past summer, it just all makes sense. In the theme park industry, I feel like there's very little price ceiling to what guests are willing to pay for most products, cause they have no backbone and cave into the high prices.

I don't agree with Iger on many of his business decisions, especilly within the film division, but for people who are stunned at all the price hikes, look literally anywhere else in the theme park industry. People despise Genie Plus and they have legitimate reasons to, but the paid Fastpass system is nothing new, and Disney's system is still much lower in price than other theme parks (even compared to those in the Orlando area). I think they absolutely need to make new changes to the system to make it better, convienent, and valuable to guests, but as is, its here to stay forever.

Lack of consumer backbone is exactly why nothing will change with pricing and with Iger/D'Amaro's decisions in regards to the parks. I'm just glad that the PR is slightly improving from the Chapek era. Yes, nobody is going to win the culture wars, but at least we don't have a CEO out there saying in a press conference that nobody watches animation after their kids go to bed. Iger has always seemingly been good with PR, and that is a huge thing in a company like Disney.

 

[Sir_Cliff]

This... all of this...

Working in Guest Services at a major regional theme park this past summer, so many people would just nonchalantly drop $150/person on Fast Passes for the day (On top of park admission, dining/drinks, resort packages, etc.).

People like us will complain about price hikes but after observing a little bit of consumer behavior this past summer, it just all makes sense. In the theme park industry, I feel like there's very little price ceiling to what guests are willing to pay for most products, cause they have no backbone and cave into the high prices.

I don't agree with Iger on many of his business decisions, especilly within the film division, but for people who are stunned at all the price hikes, look literally anywhere else in the theme park industry. People despise Genie Plus and they have legitimate reasons to, but the paid Fastpass system is nothing new, and Disney's system is still much lower in price than other theme parks (even compared to those in the Orlando area). I think they absolutely need to make new changes to the system to make it better, convienent, and valuable to guests, but as is, its here to stay forever.

Lack of consumer backbone is exactly why nothing will change with pricing and with Iger/D'Amaro's decisions in regards to the parks. I'm just glad that the PR is slightly improving from the Chapek era. Yes, nobody is going to win the culture wars, but at least we don't have a CEO out there saying in a press conference that nobody watches animation after their kids go to bed. Iger has always seemingly been good with PR, and that is a huge thing in a company like Disney.

To be honest, I am a little ambivalent about whether it is an issue of consumer backbone or just that there is a market for certain products in the theme park industry. I don't like these upcharges, but I also don't feel like I can criticise people who want to spend their money on them for whatever reason and, in turn, that theme parks offer a product people are willing to pay for.

What strikes me as more of an issue with Genie+ is that they have made a system that is too complicated and annoying which thus has an impact on people's enjoyment. They also are terrible at managing capacity, which leads to horrendously long lines and frustration for those who are watching all the Lightening Lane people stream in ahead of them in a line that comes to a standstill after paying a fortune to enter the park.

Disneyland Paris has an option to pay to skip the line either for individual attractions or to buy a day pass which seems to work better as Europeans generally aren't interested in buying it. The result is that standby queues are quite reasonable as there is no free FastPass and the amount of people paying to skip the line are so small. An issue in the US, though, seems to be that too many people would gladly pay the extra to skip the line. It makes me wonder whether a solution is to make the system simpler, more exclusive, and more expensive.

 

[nickf456]

What strikes me as more of an issue with Genie+ is that they have made a system that is too complicated and annoying which thus has an impact on people's enjoyment. They also are terrible at managing capacity, which leads to horrendously long lines and frustration for those who are watching all the Lightening Lane people stream in ahead of them in a line that comes to a standstill after paying a fortune to enter the park.

I agree with this 1000%. When I was at WDW in September, most LL lines I was in or noticed were full queues, which took up most of the ride's capacity and in turn, grinded the stand-by line to a complete halt.

The most simple way to combat this would be to sell less Genie Plus per day or to keep raising the price for the system. Knowing Disney now its going to be the latter.

One thing I'd like to see done is make the Genie Plus system included with a resort stay. I feel like that'd add a ton of value in a resort stay at the high price and a massive incentive to get people to stay on site.

 

[el_super]

An issue in the US, though, seems to be that too many people would gladly pay the extra to skip the line. It makes me wonder whether a solution is to make the system simpler, more exclusive, and more expensive.

I think that was always the plan. They didn't want to go from free to $50/person overnight to avoid the outrage.

 

[Sir_Cliff]

The most simple way to combat this would be to sell less Genie Plus per day or to keep raising the price for the system. Knowing Disney now its going to be the latter.

Honestly, I think they need to do both. If they limit the amount of people who can pay to skip the line to a level that won't noticeably contribute to the waiting times and just keep raising the prices to a level that people are willing to pay, they would ideally be able to have their cake and eat it too.

The Paris system seemed ok to me in that you could just make the all-day line skipping pass super expensive but very limited and then have the floating prices for the rides that people can purchase individually shoot up to insane levels almost no-one is willing to pay as the queues get longer for those who didn't buy the all-day pass.

 

[Sirwalterraleigh]

I agree with this 1000%. When I was at WDW in September, most LL lines I was in or noticed were full queues, which took up most of the ride's capacity and in turn, grinded the stand-by line to a complete halt.

The most simple way to combat this would be to sell less Genie Plus per day or to keep raising the price for the system. Knowing Disney now its going to be the latter.

One thing I'd like to see done is make the Genie Plus system included with a resort stay. I feel like that'd add a ton of value in a resort stay at the high price and a massive incentive to get people to stay on site.

That’s the same stupidity as fastpass+…but it was loved because it was not SPECIFICALLY upcharged

It’s a numbers problem and it’s over. All hail Bobs!

 

[el_super]

One thing I'd like to see done is make the Genie Plus system included with a resort stay. I feel like that'd add a ton of value in a resort stay at the high price and a massive incentive to get people to stay on site.

This could work at a smaller resort, but probably not at Walt Disney World. What percentage of daily park guests are resort guests? 80 to 90%?

 

[Sirwalterraleigh]

I think that was always the plan. They didn't want to go from free to $50/person overnight to avoid the outrage.

You missed it…for the millionth time.

It’s a mass market destination and they will never…ever…give up the mass market…

They’re just manipulating it. It won’t change.

 

[nickf456]

That’s the same stupidity as fastpass+…but it was loved because it was not SPECIFICALLY upcharged

That's the issue I have with G+ being included in resorts. I get why people loved Fastpass+, but people act like it was a free system, and while yes it technically was, to get the full advantage out of getting Fastpasses for attractions that'd actually save time, you had to stay at a resort (which is A LOT more than the current price for Genie Plus for one park day).

Also people seemingly don't remember that pre-pandemic under Fastpass+, wait times were absolutely terrible. Waits were absolutely treacherous with that system. While wait times are still long on average at the parks, they are almost always overinflated because Disney tries to upsell G+ and LL. I actually find most stand by lines way more manageable under G+ then they were pre pandemic under FP+.

 

[LSLS]

This could work at a smaller resort, but probably not at Walt Disney World. What percentage of daily park guests are resort guests? 80 to 90%?

I'd guess less than that. I mean, if that was the case, I doubt you would have like 50+ hotels all scattered within 5 miles of WDW. But, for numbers, if we go off the 2019 attendance numbers, and assume there are 35,780 rooms, each with an average of 3 people per room, at 90% occupancy, That's 61% of the attendance on average per day.

That said, I could see them making it a perk for like the deluxe resorts (Not saying I support this at all FYI).

 

[Sirwalterraleigh]

I'd guess less than that. I mean, if that was the case, I doubt you would have like 50+ hotels all scattered within 5 miles of WDW. But, for numbers, if we go off the 2019 attendance numbers, and assume there are 35,780 rooms, each with an average of 3 people per room, at 90% occupancy, That's 61% of the attendance on average per day.

That said, I could see them making it a perk for like the deluxe resorts (Not saying I support this at all FYI).

There are roughly 25 spots and 40,000 rooms on property…
Roughly 500 spots and maybe a couple of million off?

It’s a math problem and one Iger deliberately pooched.

And one Comcast is exploiting now

Just as Eisner did in the 90’s

It’s just numbers

 

[Disstevefan1]

I'd guess less than that. I mean, if that was the case, I doubt you would have like 50+ hotels all scattered within 5 miles of WDW. But, for numbers, if we go off the 2019 attendance numbers, and assume there are 35,780 rooms, each with an average of 3 people per room, at 90% occupancy, That's 61% of the attendance on average per day.

That said, I could see them making it a perk for like the deluxe resorts (Not saying I support this at all FYI).

Genie+ should be included when you stay at a deluxe resort.
These folks are overpaying to stay in a room, WDW should throw them a bone.

 

[Kamikaze]

Interesting how everyone seems to carefully overlook B.I.'s very subtle comment about some interest in sports betting. Seemed like a cautious testing of the waters for a reaction.

No one cares about sports betting.

And they've already talked about licensing ESPN to one of the providers (DraftKings) so they can do ESPN-branded betting.

 

[Disstevefan1]

No one cares about sports betting.

And they've already talked about licensing ESPN to one of the providers (DraftKings) so they can do ESPN-branded betting.

I think TWDC cares about sports betting. There is big money in it and TWDC LOVES MONEY!

 

[Sirwalterraleigh]

Genie+ should be included when you stay at a deluxe resort.
These folks are overpaying to stay in a room, WDW should throw them a bone.

Nope…can’t do it…

…numbers.

That’s why they canned the internet fastpass

 

[LSLS]

Genie+ should be included when you stay at a deluxe resort.
These folks are overpaying to stay in a room, WDW should throw them a bone.

I mean, if overpayment needs a bone, give it to people at the values. They pay like over $200 for tiny rooms that a lot of times are further away from parks than off site hotels.

 

[Sirwalterraleigh]

No one cares about sports betting.

And they've already talked about licensing ESPN to one of the providers (DraftKings) so they can do ESPN-branded betting.

What rock are you under? It’s a hundreds of billions of dollars business now. All the leagues are full in or will be in 5 years.

I hate betting. Hate it. I’m a sports nut but I care about who wins. It’s not a “job” for me.

But Disney sells product for money…they aren’t grandma providing “magic” for children.

 

[Sirwalterraleigh]

I mean, if overpayment needs a bone, give it to people at the values. They pay like over $200 for tiny rooms that a lot of times are further away from parks than off site hotels.

I have a huge issue with this (shocking)…people overpaid for their rooms for decades and asked for more…and they’ve overpaid for their timeshares for 20 years…no questioned asked.

Now they turn the park tickets back against them and they want to cry foul and want something for it?

We made our beds…writing was on the wall.

 

[Disstevefan1]

I mean, if overpayment needs a bone, give it to people at the values. They pay like over $200 for tiny rooms that a lot of times are further away from parks than off site hotels.

Agreed, all rooms are overpriced; the deluxe resorts are the most overpriced.

I'll put it this way, if they are going to call a resort deluxe, it should have additional perks like Genie + included.