Disney is going to price us out of the Kingdom..

[CP_alum08]

All you people claiming to be priced out, what are you going to do? Do you just stop vacationing all together? Do you go to different places? Do you only go to WDW once every 5 years (or whatever the magic number is)?

I’m genuinely curious. If say $10k prices you out of a Disney vacation, theoretically you still have $9k to spend on a vacation. So what do you do with that money?

 

[flynnibus]

Even as a staunch non-interventionist, I would agree with your subjective moral judgment that in general, absolutizing profit is "not good". But I believe you still fail to recognize the fine line between resounding success and insolvency for traded firms, no matter the market cap. In other words, it is what is and if Disney is to survive, they need to play according to the "rules" of the game, the current game. Do you for example, what would happen to Disney's cost of capital should they just up and decide to adopt your prescribed approach? Do you understand how that would impact the company, WDW included?

Some of the world's biggest and brightest beacons in the world.. and in the market gave the middle finger to 'the rules of the game'. Both Amazon and Google directly bucked 'the game' and proved that if you actually know what you are doing and are successful at it.. the investor market will adjust.

TWDC isn't some feeble thing needing share sales to raise capital. They are big enough to just chase the cheapest dollar available to them. They have capital out the wazoo they could borrow with if they had to.

They play 'the game' because it behooves the leadership to do so and is the path of least resistance.

 

[flynnibus]

Everything he says is correct and true. Someone may not like it (and that's an individual's right), but that doesn't make it incorrect. Capitalism and the free market are based on supply and demand. When there's basically a fixed supply, at some point the price will hit a point where there is an equilibrium between supply and demand.

And at some point some people will start to realize that to build a brand like Disney, and do the things they were bold enough to try, you don't simply play generic econ 101.

 

[flynnibus]

That's what it should do. Who they built the company on 50 years ago has no bearing.

Do you really think if Disney were a brand new company and product on the market today, they would be successful marketing it and attracting customers with this kind of offer?

... Or how much of customer tolerance do we attest to the perception of Disney? (which is actually built by the past..).

 

[flynnibus]

All you people claiming to be priced out, what are you going to do? Do you just stop vacationing all together? Do you go to different places? Do you only go to WDW once every 5 years (or whatever the magic number is)?

I’m genuinely curious. If say $10k prices you out of a Disney vacation, theoretically you still have $9k to spend on a vacation. So what do you do with that money?

I'm not sure how you get this 10k to 9k number... but this question is rather self defeating and pointless I think.

If someone has a budget of X dollars, and can't get it from companyA... they will simply adapt and change what they are willing to consume.

Maybe a vacation every other year instead of every year...
Maybe they do 3 smaller trips instead of 1 big trip...
Maybe they simply change where they vacation...

What's the point of the question? There is no universal answer. People will spend their entertainment dollars differently and seek out things they they desire.

The stupid will outspend themselves so they don't have to adapt.. everyone else will either find new money or adapt.

 

[MAGICFLOP]

I actually have no problem with the price hikes.. I am a believer in market pricing... If someone went to opening day of the MK and bought a verifiable original ticket and still have the stub and can sell it for 10,000 dollars, I will not gripe and say hey man you only paid $3 for that and now are trying to gouge..
If Disney can get $250 a day ticket price, then they should charge it.. the value of anything is what someone is willing to pay..

My opinion: in hospitality, it is not always beneficial to have regular customers... Why: They spend less and become possessive/territorial to others that spend more... think of a bar fly that hangs around a pub, they stay for hours drinking the $1 dollar drafts and tend to drive away those who pop in for an occasional $7 quiet drink.

 

[NickMaio]

Come back with a real response to my points and we can have a real discussion. If you're just going to post nonsense about Kool-Aid, don't bother quoting me.

Please Google the term " drinking the kool-aid"
I stand behind my statement.
Yes companies increase prices, I just dont like the way WDW is doing it.
Record profits, yet staff hours and jobs were cut. Services that were once free are charged now and more and more upsells to get a better experience. Its plain and simple greed.
They are testing the waters to see what people will pay and in turn pricing out many families that could once afford to go frequently.

 

[bryanfze55]

All you people claiming to be priced out, what are you going to do? Do you just stop vacationing all together? Do you go to different places? Do you only go to WDW once every 5 years (or whatever the magic number is)?

I’m genuinely curious. If say $10k prices you out of a Disney vacation, theoretically you still have $9k to spend on a vacation. So what do you do with that money?

$10K sounds extremely high for one trip and if people actually think you need to spend that much on Disney to have a good trip, I can see why they think everyone is “priced out.” Where did you come up with this number?

 

[eliza61nyc]

Do you really think if Disney were a brand new company and product on the market today, they would be successful marketing it and attracting customers with this kind of offer?

... Or how much of customer tolerance do we attest to the perception of Disney? (which is actually built by the past..).

Yeah, I do. Again different generation. Different expectations.

 

[bjlc57]

it really isn't an excuse. One simply cannot expect a company to run the way it ran 50 years ago. Yes it's been a public company for a while but expectations and objectives are not the same. WDW is not immune to that, nor are they immune to what their stockholders want.
If it is a choice of giving the customer what they want or giving the shareholders what they want, the shareholder is going to win every time, every day and twice on Sunday.

I don't think she was saying it was "needed" but that's a whole different discussion. does any company "need' to make 55 billion in revenue?? who knows

the one "Walt" comparison I wish would go away is the one where "Walt" wanted everyone to be able to come to the parks.

well there you have it .. REMOVE WALT from Walt Disney world.. boy there is the concept.. who needs him..just worry about the shareholders and the record profits.. heck no other big company EVER FAILED doing that.. no one like General Motors.. ever filed bankruptcy.. heck remove his name all together.. lets call it Great America instead.. none of those parks "ever failed" .. Heck lets go to the New Orleans Great America tomorrow.. but you hit it on the head .. GET RID OF THAT GUY.. who does he think he is.. having the PARK NAMED AFTER HIM.. get rid of him.. all he did was come up with ideas and concepts.. not record profits..

 

[NickMaio]

You're exactly right though. It just comes down to their personal story. If THEY are priced out, Disney is greedy. It doesn't matter if the entire industry is moving the same way or if the cost is still reasonable to someone else. If it's not reasonable to them, Disney is greedy.

People have a very hard time seeing things from anything but their own perspective.

I'm not disagreeing that the prices have gone up, but the product is different than 25 years ago too. Animal Kingdom didn't exist, as a an example.

The entire industry is not moving the same way. Look at other theme parks across North America......same industry drastically different yearly pricing.
Greed is greed.......a spade is a spade......many people have written on this forum about this priving our point. WDW is pricing people and families out plain and simple. I am sure thousands more every year experience this.
This forum is filled with diehards that will go no matter the cost..... You turn your heads blindly....some put it on credit and pay later.
Its there you are choosing to look the other way.

 

[bjlc57]

let me also say this.. if Disney NEEDS to raise prices to "keep the crowds down" then what they really need to do is to build a 5th park.. that will "bring the crowds down" and allow people to stay even longer.. but to RAISE PRICES FOR CROWD CONTROL.. give me a break.. but right now every thing is saying too crowded.. then the obvious answer is a 5th park.. and not raise prices .. and they should build now when interest rates are cheap and the economy is somewhat strong. .because a year or two from now .. you may not be able to say the same thing..

 

[eliza61nyc]

well there you have it .. REMOVE WALT from Walt Disney world.. boy there is the concept.. who needs him..just worry about the shareholders and the record profits.. heck no other big company EVER FAILED doing that.. no one like General Motors.. ever filed bankruptcy.. heck remove his name all together.. lets call it Great America instead.. none of those parks "ever failed" .. Heck lets go to the New Orleans Great America tomorrow.. but you hit it on the head .. GET RID OF THAT GUY.. who does he think he is.. having the PARK NAMED AFTER HIM.. get rid of him.. all he did was come up with ideas and concepts.. not record profits..

Lol nothing like hyperbole to make a point.
Ok, yes I'm forever greatful that Old Walt came up with the parks.
No I do not want to base my current business decision on what we did 50 years ago.

And yes whether you like it or not, stockholders rule.
And I did not say get rid of Walt, I said get rid of the notion that Walt let in every one who couldn't afford to go.

 

[NickMaio]

let me also say this.. if Disney NEEDS to raise prices to "keep the crowds down" then what they really need to do is to build a 5th park.. that will "bring the crowds down" and allow people to stay even longer.. but to RAISE PRICES FOR CROWD CONTROL.. give me a break.. but right now every thing is saying too crowded.. then the obvious answer is a 5th park.. and not raise prices .. and they should build now when interest rates are cheap and the economy is somewhat strong. .because a year or two from now .. you may not be able to say the same thing..

Uni has better odds of creating another park compared to WDW.
They just keep adding to already overcrowded parks.
A 5th park would really spread out the masses.

 

[networkpro]

The entire industry is not moving the same way. Look at other theme parks across North America......same industry drastically different yearly pricing.

This forum is filled with diehards that will go no matter the cost..... You turn your heads blindly....some put it on credit and pay later.
Its there you are choosing to look the other way.

You must enjoy being the sole arbiter of truth. Unfortunately you fail to account for people having different resources at thier disposal than you...enough that credit doesn't even enter into any of your calculations.

 

[OneofThree]

Some of the world's biggest and brightest beacons in the world.. and in the market gave the middle finger to 'the rules of the game'. Both Amazon and Google directly bucked 'the game' and proved that if you actually know what you are doing and are successful at it.. the investor market will adjust.

TWDC isn't some feeble thing needing share sales to raise capital. They are big enough to just chase the cheapest dollar available to them. They have capital out the wazoo they could borrow with if they had to.

They play 'the game' because it behooves the leadership to do so and is the path of least resistance.

There really is no other way to put this than to say that the baseless assertions and generalizations found in your post make it clear that you are completely out of your depth here.

 

[Chef Mickey]

Please Google the term " drinking the kool-aid"
I stand behind my statement.
Yes companies increase prices, I just dont like the way WDW is doing it.
Record profits, yet staff hours and jobs were cut. Services that were once free are charged now and more and more upsells to get a better experience. Its plain and simple greed.
They are testing the waters to see what people will pay and in turn pricing out many families that could once afford to go frequently.

I wasn’t struggling with the term; I was struggling with the zero content.

You have no data to back up Disney “Pricing out many families” other than your own anecdotal experience.

Right, YOU don’t like the way WDW is doing it...but it’s not about you. Disney is PACKED at current pricing. If anything, they should increase prices.

Disney is owned by the shareholders and is a FOR profit company. No reasonable company would charge even less for a product they can’t even keep in supply. They are managing the business as they should. AND, they aren’t even out of line with Universal.

Remember, Disney doesn’t owe people some arbitrary number of trips to their parks or any trips at all. I mean, do you want them to send out vouchers to every family? What world do you live in?

 

[Chef Mickey]

The entire industry is not moving the same way. Look at other theme parks across North America......same industry drastically different yearly pricing.
Greed is greed.......a spade is a spade......many people have written on this forum about this priving our point. WDW is pricing people and families out plain and simple. I am sure thousands more every year experience this.
This forum is filled with diehards that will go no matter the cost..... You turn your heads blindly....some put it on credit and pay later.
Its there you are choosing to look the other way.

1) “Parks across North America” aren’t Disney. Disney has pricing power because they offer the best product. That’s why they are the most popular. You don’t think so, that’s fine....but markets have spoken.
2) Many people don’t think Disney is expensive, including myself. My Disney trips are some of the cheaper trips I take. Traveling is expensive.
3) You should take steps to afford a Disney trip instead of complaining they charge too much, because it’s not changing. It’s going higher.

 

[networkpro]

Disney is just looking at the short term at the risk of long term damage.

Happens all the time look at Toys R Us, AOL, Maytag, American Cars.

You put out a mediocre product, with a high price tag and treat the customer like dirt and eventually they will turn somewhere else.

I would say that based on your personal circumstances that Disney doesn't provide an acceptable value proposition to you. The parks are full, so either they have a different price point or they have to be company shills.

 

[Chef Mickey]

Disney is just looking at the short term at the risk of long term damage.

Happens all the time look at Toys R Us, AOL, Maytag, American Cars.

You put out a mediocre product, with a high price tag and treat the customer like dirt and eventually they will turn somewhere else.

Disney is not Toys R Us...are you kidding me? Toys R Us and the other companies you mentioned had no edge. Who is going to compete with Disney? They own media. They have enormous physical parks around the world. The own TV, movies, products, and parks. Good luck. Toys R Us sold toys you could buy anywhere. There are tons of dishwasher brands that no one cares which they buy. People want Disney...not that other junk.

Disney can lower prices whenever necessary. They own all the best content and have one of the largest barriers to entry of any company in the world. They are freaking powerful, own a ton of high quality assets, and have a world known brand. You don’t just come and take Disney’s business easily.

DIS is making all time highs. You doom and bloomers are classic. Never say what or when it will happen, but just continue to hate and predict carnage all the while missing out on higher and higher prices in the shares.

I’d love to know what stocks you own if you think Disney is a company putting out “mediocre” product and treats customers poorly. Have fun with your 2% returns.