Disney Survey on implementing a $15 resort fee

[Timsierramist]

Everyone has their limits on overpriced BS and fees they are willing to accept. "Resort Fees" would be mine. That is a big reason I do not go to Vegas anymore, even though I live on 2-3 hours away. I simply, absolutely, hate "hidden fees" that pay for garbage I don't use and that should be included in the very basic hospitality of staying at an overpriced hotel in the first place, should I so choose to use said facilities.

Seriously. Even if it cost more to rent a car and stay off property, I would. Just for the principle of the matter.

Sometimes I think the brass at the top of the Disney food chain have no idea what they are sitting on. We go to Disney because it's Disney, not the average run of the mill resort and theme parks in America.

 

[Disneyhead'71]

I did report the condition of the room when I was checking out. And the CM was apologetic and informed me that the hotel was just starting a massive refurb and everything was going to be replaced.

I was only there for 2 nights and didn't discover the urine stain until the morning I was checking out. I didn't raise the roof when reporting the issues as, over all, I enjoyed my stay. But was pretty disappointed as to what Disney considers a $630/night deluxe room.

Since then, when needing a room in Orlando, I stay at the JW Marriott at The Grande Lakes Resort or Portofino Bay at Universal with my AP discount.

That said, I did really enjoy my last stays at The Grand Californian and The Disneyland Hotel at Disneyland.

 

[Timsierramist]

I USED THEM put the privacy sign on the door - They annoyed me ANYWAY and tried to key in - fortunately I had left the security locks in place.

I'm a Hilton Diamond/Marriott platinum member and I travel for a living so I'm familiar with how a GOOD hotel handles these things and usually housekeeping does not start bothering people 3-4 hours before official checkout time.

You are both right, really. It just depends on the resort and the Mousekeeping staff your destiny crosses paths with.

I've placed the Do Not Disturb sign up on the door and have had no problems all the way until 11 AM. Then in other cases, I've had the sign on and around 9 AM (having forgotten the security lock) and lo and behold, there I am jumping out of bed in my boxers standing before some old lady with a broom in her hand who only mutters "I thought the room was empty...".

 

[prberk]

When they use "industry standard" or similar phrasing it really just amounts to: "Everyone is doing it"

It's a justification to do something that most would consider wrong, bad, or at least annoying. It's the kind of language the cable companies or similar industries use to explain their ill-behavior away with the idea being, "Well, if everyone's doing it then it must be OK."

"If everyone else jumped off a bridge, would you do that, too?," asked every mother everywhere.

 

[CaptainAmerica]

But where does it stop?

If and when people stop showing up in record numbers.

I'm so sick of the mentality that Disney makes their pricing decisions unilaterally. Every single cut, new fee, or price increase is implicitly approved by the guests when they continue to show up and fork over their money. With any product or service, what-you-pay-for-what-you-get is mutually agreed upon. There's no cap on profits or point when Disney has "made enough money." Their job, as custodians of the company on behalf of the shareholders, is to make as much profit as possible. From a strictly supply-and-demand perspective, Disney actually offers too much and charges too little. That's what record crowds and >90% occupancy means.

 

[bunnyman]

Interesting thought someone mentioned to me...by pulling this fee out of the existing room rate (which of course they won't reduce), when they discount the room prices it wouldn't impact the possibly separate $15 fee, so that it locks in a revenue stream not subject to discounting.

 

[BrianV]

I guess that the fictional company in Back To School may not be possible to build in fantasy land anymore!

 

[bunnyman]

I guess that the fictional company in Back To School may not be possible to build in fantasy land anymore!

Ah, Disney Widgets!

 

[CaptainAmerica]

Interesting thought someone mentioned to me...by pulling this fee out of the existing room rate (which of course they won't reduce), when they discount the room prices it wouldn't impact the possibly separate $15 fee, so that it locks in a revenue stream not subject to discounting.

It doesn't make any difference because pricing and discount rates aren't static.

Let's assume:
Hypothetical customer is willing to pay $100 per night.
Rack rates are $140.

If Disney discounts 30% without a resort fee, the rate falls to $98 and the customer is willing to pay.

If Disney discounts 30% with a $15 resort fee, the rate falls to $98 + $15, or $113. Disney doesn't get that customer.

If Disney discounts 40% with a $15 resort fee, the rate falls to $84 + $15, or $99 and the customer is willing to pay.

Disney can't do anything to impact the customers' willingness to pay. No matter what form the price takes, the customer is willing to pay whatever the customer is willing to pay. It's the final price on which the customer makes his or her decision, not the convoluted metrics and discount rates that are applied to get there.

 

[xdan0920]

It doesn't make any difference because pricing and discount rates aren't static.

Let's assume:
Hypothetical customer is willing to pay $100 per night.
Rack rates are $140.

If Disney discounts 30% without a resort fee, the rate falls to $98 and the customer is willing to pay.

If Disney discounts 30% with a $15 resort fee, the rate falls to $98 + $15, or $113. Disney doesn't get that customer.

If Disney discounts 40% with a $15 resort fee, the rate falls to $84 + $15, or $99 and the customer is willing to pay.

Disney can't do anything to impact the customers' willingness to pay. No matter what form the price takes, the customer is willing to pay whatever the customer is willing to pay. It's the final price on which the customer makes his or her decision, not the convoluted metrics and discount rates that are applied to get there.

Sooooo

Why do it this way? Why do so many hotels do it this way?

You are wrong in this. And are looking at it purely analytically.

If the room is 115 a night that might be too much. Try somewhere else.

If a room is $99 a night, and you pay that as part of your Disney package, that's all great. Then you have to pay a $15 resort fee due at the time of your stay....Most people's brains will separate those costs and are better able to justify it. It's a bit of mental gymnastics hotel companies are using these days in order to increase profits without eroding total stays.

 

[bunnyman]

It doesn't make any difference because pricing and discount rates aren't static.

Let's assume:
Hypothetical customer is willing to pay $100 per night.
Rack rates are $140.

If Disney discounts 30% without a resort fee, the rate falls to $98 and the customer is willing to pay.

If Disney discounts 30% with a $15 resort fee, the rate falls to $98 + $15, or $113. Disney doesn't get that customer.

If Disney discounts 40% with a $15 resort fee, the rate falls to $84 + $15, or $99 and the customer is willing to pay.

Disney can't do anything to impact the customers' willingness to pay. No matter what form the price takes, the customer is willing to pay whatever the customer is willing to pay. It's the final price on which the customer makes his or her decision, not the convoluted metrics and discount rates that are applied to get there.

Agreed, however, that's assuming the average customer pays attention to the extra fees/costs on top of the quoted and/or discounted room rates. Many just say "I got the room for $x per night" before taking into account sales/hotel taxes, etc., which the potential mandatory resort fee would most likely fall into.

 

[flynnibus]

If and when people stop showing up in record numbers.

I'm so sick of the mentality that Disney makes their pricing decisions unilaterally. Every single cut, new fee, or price increase is implicitly approved by the guests when they continue to show up and fork over their money. With any product or service, what-you-pay-for-what-you-get is mutually agreed upon. There's no cap on profits or point when Disney has "made enough money." Their job, as custodians of the company on behalf of the shareholders, is to make as much profit as possible. From a strictly supply-and-demand perspective, Disney actually offers too much and charges too little. That's what record crowds and >90% occupancy means.

This type of justification is self-satisfying because it completely ignores the element of a customer SATISFACTION and sentiment.

Your line of thinking makes it sound like everyone loves Jury Duty, taxes, and their boss. They just keep showing up!!

 

[wannabeBelle]

Agreed, however, that's assuming the average customer pays attention to the extra fees/costs on top of the quoted and/or discounted room rates. Many just say "I got the room for $x per night" before taking into account sales/hotel taxes, etc., which the potential mandatory resort fee would most likely fall into.

Exactly so and as previously mentioned if this is not collected until check in or at the end of the stay, I'm sure many people might miss this entirely until it shows up on their resort charge at the end of their stay!!! Marie

 

[bunnyman]

This type of justification is self-satisfying because it completely ignores the element of a customer SATISFACTION and sediment.

Your line of thinking makes it sound like everyone loves Jury Duty, taxes, and their boss. They just keep showing up!!

Ha, funny typo with "sediment" (if was a typo)...but maybe more appropriate for this discussion.

 

[note2001]

It doesn't make any difference because pricing and discount rates aren't static.

Let's assume:
Hypothetical customer is willing to pay $100 per night.
Rack rates are $140.

If Disney discounts 30% without a resort fee, the rate falls to $98 and the customer is willing to pay.

If Disney discounts 30% with a $15 resort fee, the rate falls to $98 + $15, or $113. Disney doesn't get that customer.

If Disney discounts 40% with a $15 resort fee, the rate falls to $84 + $15, or $99 and the customer is willing to pay.

Disney can't do anything to impact the customers' willingness to pay. No matter what form the price takes, the customer is willing to pay whatever the customer is willing to pay. It's the final price on which the customer makes his or her decision, not the convoluted metrics and discount rates that are applied to get there.

I like your examples very much, and they do hold truths, but the one element Disney has on their side is their advertising campaigns for which they are known for and can spur Eskimos to buy ice cubes in the dead of winter. You can bet those advertisements will not quote fees.

 

[CaptainAmerica]

Sooooo

Why do it this way? Why do so many hotels do it this way?

You are wrong in this. And are looking at it purely analytically.

If the room is 115 a night that might be too much. Try somewhere else.

If a room is $99 a night, and you pay that as part of your Disney package, that's all great. Then you have to pay a $15 resort fee due at the time of your stay....Most people's brains will separate those costs and are better able to justify it. It's a bit of mental gymnastics hotel companies are using these days in order to increase profits without eroding total stays.

Agreed, however, that's assuming the average customer pays attention to the extra fees/costs on top of the quoted and/or discounted room rates. Many just say "I got the room for $x per night" before taking into account sales/hotel taxes, etc., which the potential mandatory resort fee would most likely fall into.

I understand. I think this will be a poor decision if implemented. It's unnecessarily complicated. I just object to the "this is a money grab" argument because Disney can run a "money grab" whenever they want simply by raising prices (even more than they were going to anyways) or discounting less. I also think it'll have the opposite effect of what @xdan0920 and @bunnyman are suggesting. Rather than customers ignoring/overlooking the extra fee, I think it would actually call extra attention to the price increase as a brand new line item that wasn't there before. I don't remember exactly what I paid per night on my last trip to WDW, so I probably wouldn't notice a "normal" price increase. However, I do know that I didn't pay any resort fee and if I see one on my next bill, my eyes are going right to it.

This type of justification is self-satisfying because it completely ignores the element of a customer SATISFACTION and sediment.

As I said above and previously, I don't like this plan. Just objecting to the "cash grab" argument.

Your line of thinking makes it sound like everyone loves Jury Duty, taxes, and their boss. They just keep showing up!!

It's a bit different when you talk about things you're obligated to do. You pay taxes and go to jury duty so you don't go to prison. You go to work because you need to pay your mortgage and feed your children. You go to Walt Disney World because it's fun. You don't have the option to abstain from those other things. You absolutely can (and most people in the world do) choose not to visit WDW.

 

[flynnibus]

Ha, funny typo with "sediment" (if was a typo)...but maybe more appropriate for this discussion.

Thx... just one of my daily reminders of why I hate large portions of apple OSs

 

[flynnibus]

It's a bit different when you talk about things you're obligated to do. You pay taxes and go to jury duty so you don't go to prison. You go to work because you need to pay your mortgage and feed your children. You go to Walt Disney World because it's fun. You don't have the option to abstain from those other things. You absolutely can (and most people in the world do) choose not to visit WDW.

I kept that 'obligation' portion in there because it does have relevance because of the built-in inertia that Disney has in the population. Disney is the incumbent and what a lot of people just default to as the 'must do' vacation.. and they pay to make that happen. That built-in advantage is so strong and why Disney doesn't have to sell on price.

It's also Disney's biggest asset.. and why it's the most scary element for the long term health of the business when they continue to whittle away at the asset with disregard for the customer sentiment in these 'business first' decisions.

 

[CaptainAmerica]

I kept that 'obligation' portion in there because it does have relevance because of the built-in inertia that Disney has in the population. Disney is the incumbent and what a lot of people just default to as the 'must do' vacation.. and they pay to make that happen. That built-in advantage is so strong and why Disney doesn't have to sell on price.

I'm not sure the impact is as strong as you're implying. Families age in and out of the core Disney demographic.

It's also Disney's biggest asset.. and why it's the most scary element for the long term health of the business when they continue to whittle away at the asset with disregard for the customer sentiment in these 'business first' decisions.

I think this is overblown for those of us who read a post here. I really don't think the wider world of WDW guests sees this degradation of quality that lots of people here talk about. I think the average guest leaves satisfied and with a strong value perception.

 

[Spikerdink]

DVC units being hours late for check in seems to be the norm these days at least it has for my last 4 trips and Mousekeeping starts the 'are you out of the room' routine about 745 it seems. Last trip I stayed in the room till 11 just because I got damn tired of them knocking on the door every 10-15 minutes starting at 7:45AM

A few years back I was staying at OKW. Around 9 am we left the room, went to get breakfast with the idea we would come back, take a quick shower, grab our bags and then head to the parks before we left.

When we got back to the room, I was shocked to find the door wide open. Housekeeping opened the door and started to clean the room while we were out. When they saw the suitcases sitting there, I have no idea why they didn't leave and come back. Was bothered by it and as they were in the second bathroom we used the main shower before hastily running out.

I was not happy - never complained - probably should have.