Disney Survey on implementing a $15 resort fee

[DougK]

Everyone should please keep in mind the resort fee being considered by Disney and already being charged at many other hotels is simply a way to bring in more cash while keeping the room rates seemingly low. Of course in Disney's case the room rates are unbelievably high anyway but somehow they must feel that a room at the Poly is more enticing at $449 per night than it would be at $464 per night. There are also tax implications that benefit the company, that is they are better off tax-wise charging $449 per night + a resort fee of $15 per night than they are charging a room rate of $464 per night.

Anyway the point is the resort fee is justified by the companies that run hotels by showing you what "extras" you get besides the room itself. It is just a way of bringing in more cash, folks! They are not really charging you for the internet, or bottles of water, or in the case of Disney resort transportation. Those things are already built into the room rates. It is just their way of justifying charging you more money. "Hey for $15 you get internet, water, etc". But note that you may not opt of of resort fees at most hotels. If the fee was really to cover the cost of those "extra" items you would be able to opt out because the company would essentially be breaking even if you did not use those "extras". But rarely if ever can you opt out. An exception to this is a parking fee which of course you do not have to pay if you do not have a car. This is why the Swan and Dolphin have BOTH a resort fee and a parking fee. If you have no car you don't pay the parking fee. But if you don't drink the bottled water or use the wifi you still pay the resort fee.

So just understand whether you use the wifi, drink the water, etc you are still going to pay the resort fee. It is just more income for the hotel company and it is a widespread practice. Companies are always trying the find the right price point for their goods and services. In theory when the rates get too high people will stop paying them and the company will have to react accordingly by lowering rates and/or fees. Certainly at this point in time at The Walt Disney Company they feel they can keep pushing prices up and frankly they are probably correct. They have record attendance and excellent resort occupancy. I am not saying I like it I am just saying I understand it.

 

[NMBC1993]

What's next? An advance dining reservation fee? An extra fee for any colored Magic Band but gray?

Starting next week, only one FP+ selection per guest, per day. If you want more, it's an extra $15 per FP...Oh, and that's only for the tier two selection. You want Soarin'? Well, that'll be extra as well.

Funny enough, all this up charging reminded me of the old Rocko's Modern Life episode where Rocko and Heffer go to a ski lodge where "Everything is $5".



Although, this probably just gave Disney a million more ideas to "preserve the magic".

 

[rael ramone]

Paging @sshindel yet another so called survey which boots respondents who use social media. More collection of so called data to support a predetermined outcome

Reminds me of a car dealership that used to be in my town.

Certain words/phrases would mean immediate ejection from the showroom (as in GET OUT! And yes, they would yell at you).

Consumer Reports
Invoice
Better Business Bureau

Basically they had no intention of dealing with an informed consumer. Sounds like $DIS surveys...

 

[Buried20KLeague]

Some hotels waive the fee if you do not use the service the fee provides. Fees structured correctly are not necessarily always a bad thing. It helps structure costs to what you use. If optional, this may actually save somebody money. Instead of increasing the cost across the board for everybody, you can save $15 by not using the Magical Express, Gym, wifi, phone, and some water...

But they're not adding to these resorts and then creating the fee to cover the use of them. They're implementing a fee for things that have been included as part of your cost for decades.

And I'm certain they're not going to lower the cost of the room and then implement the fee. The rooms will be the same price with the fee on top of it. There's no way anyone will pay less tomorrow for a room than they do today.

And if there's an "opt out", they'll make some component of it so necessary or attractive that nobody actually does opt out (like use of the resort busses, or free parking at the parks).

It's just going to cost more to stay on property. That's all there is to it. And if you or I decide we're not going to, they know there's another family in line ready to take your spot. They'll keep doing this until that line dies down, and they know they're nowhere close to that point. The crowd levels in the parks have given management a blank check to make whatever changes they desire because they know they've got plenty of time to make corrections if necessary. Because of MM+ (and FP+ and the crazy dinner reservation window), they know months in advance what bookings look like, who's doing what, what park crowd levels will be like... So they've literally got months to make adjustments if they see any one of those things at a lower level than they want.

They hold all the cards. And they know it. They always have, but now more than ever. And they're going to blatantly push buttons for a while and see what happens.

 

[OliveMcFly]

Starting next week, only one FP+ selection per guest, per day. If you want more, it's an extra $15 per FP...Oh, and that's only for the tier two selection. You want Soarin'? Well, that'll be extra as well.

Funny enough, all this up charging reminded me of the old Rocko's Modern Life episode where Rocko and Heffer go to a ski lodge where "Everything is $5".



Although, this probably just gave Disney a million more ideas to "preserve the magic".

That was my next thought.
I love Rocko's Modern Life. Classic 90s Nick!

 

[MichWolv]

I hate resort fees. Because they are not optional, they are simply part of the price for staying at the hotel. Calling them anything else is deceptive and, frankly, a lie. I'd love to take a principled approach and refuse to stay at hotels that charge such fees, but that would, unfortunately, cut out far too many hotels, particularly resorts (although "resort fees" are by no means limited to resorts).

 

[dgp602]

Of course they are....ahhhhggggg

 

[rael ramone]

So soon all that'll be left is charging us for the resort to park transportation

Also, I'm confused. The MagicBands are included in this resort fee. So...how will people be able to opt out of said fee, if you need MagicBands to open the doors? I dont think we'll be able to choose to not pay this

RFID cards!!! Proud exclusive user of RFID cards during the entire Mouse Arrest Band era. And though you can't 'wear' it, it does EVERYTHING the band does.

 

[FOH Jim]

Resort fees are not just a way to show a lower price then increase it by adding the fee. It is also a way to avoid taxes.

This totaly would be a Win-Win for Disney, they can hide a price increase (even if they are upfront about the fee, it is still prestidigitation) and the pay less in taxes, and it could be a pretty good chunk of change. If they have 80% occupancy in the 31,000 or so rooms and they don't pay the 6% room tax on that $15, That comes to about $8,000,000 per year just in saved taxes. and if they don't drop the price of the room that $15, they make an additional $135,000,000 per year with the price hike. So they win in advertising the room rates just like every other hotel in the market, They win paying less taxes, and win in with additional $15 per room.
(sarcasm on)
Just think of what wondrous things they will do with that additional $140,000,000 a year!
(sarcasm off)

 

[wdwgreek]

Except it may also/most likely will apply to DVC.

The real issue is nothing NEW is being offered to offset the cost. Everything mentioned is already a part of the package.
What could they add that could get us to accept this fee with less noise? Something of value that we may feel is worth $15 or more per day we don't already get:

Free Valet for those who drive.
Boat and Bike rentals (at $15/day this would be an amazing deal)
A free breakfast daily for everyone in the party. (again, an amazing deal)

Ohhh that's an amazing idea^^^^ continental breakfast is something most hotels everywhere else does.

 

[Andrew C]

The really nice thing (for Disney) is that the fee could be implemented immediately. So even if you already have reservations, the price just went up!

This shouldn't happen as that would be illegal in a certain sense. If you were not quoted the resort charge at the time of booking, they should not be charging you for it.

 

[Lucky]

They are not really charging you for the internet, or bottles of water, or in the case of Disney resort transportation. Those things are already built into the room rates. It is just their way of justifying charging you more money. "Hey for $15 you get internet, water, etc". But note that you may not opt of of resort fees at most hotels. If the fee was really to cover the cost of those "extra" items you would be able to opt out because the company would essentially be breaking even if you did not use those "extras". But rarely if ever can you opt out.

But it's deceptive and looks petty, or, to use a technical term I learned from my first manager, "chicken***t," to price things that way.

 

[Buried20KLeague]

Starting next week, only one FP+ selection per guest, per day. If you want more, it's an extra $15 per FP...Oh, and that's only for the tier two selection. You want Soarin'? Well, that'll be extra as well.

To a point, I GUARANTEE they've discussed this in various boardrooms. Think about it... All it is is an electronic version of the A-E ticket system.

They took a big PR hit when the one day ticket went over $100. Think for a second. What would happen if they DROPPED the admission price by half(ish) to $50? Think of the big PR boon. They could say, "you know, we just decided we wanted more people to be able to visit our parks. Now, you only pay for what you use. It now costs half as much as Uni or SW to enter our parks!"

Disney is the only destination in Central Florida that could pull this off. With MM+, they could adjust the system so that you could purchase and pre-select your rides months in advance (like they already do), paying different levels for different rides. "That would kill spontenaeity even further!" you cry. Peshaw! Because you would have a credit card linked to your band, if you walked past The Jungle Cruise and you wanted to ride, a simple scan of your band would charge your family for the ride, and off you'd go.

It may sound crazy, but don't think they haven't thought of it. Their system is capable of it. It's all right there in front of them. It's just about how much they decide to abuse it.

 

[Monorail_Red_77]

I don't see it as a cash grab. I hate it, and think it would be a major mistake, but I don't see how it has anything to do with a "cash grab." Whether they charge $350 + $15 per night or simply $365 per night, they can still charge whatever they want.

I think they problem most people fear. Is that Disney will charge this nightly fee AND increase room rate. So, not just $365 (350+15) It could instead be $380 (365+15). So the room price will not go down because they added this fee and split out all the freebies from the room rate.(as this was included in roomrate before) It will stay the same or increase. because they can.

 

[JWG]

It won't be optional. Based on what "may" be included, it would be hard for it to be even if they let it be.

 

[Buried20KLeague]

RFID cards!!! Proud exclusive user of RFID cards during the entire Mouse Arrest Band era. And though you can't 'wear' it, it does EVERYTHING the band does.

B-b-b-b-b-b-ut... YOU HAVE TO TAKE IT OUT OF A WALLET OR BAG OR SOMETHING! THAT'S INSANITY!!!!!!!!!!!!!!!!!!!!!


I've NEVER understood the bands. They do nothing more than the cards we've all used for decades. Yet people get in a tizzy when a purple one is introduced. THERE'S CURRENTLY A 4 PAGE THREAD ON PURPLE. ON A PURPLE MAGIC BAND.

The Magic Bands stand for $2,000,000,000.00 or more in WDW park investment that largely benefits THEM, not US.

 

[note2001]

Were I staying in the Disney resorts as a hotel guest and not DVC, I doubt this fee this would effect my wanting to stay on site at first. We know its going to be more expensive than staying offsite. But after that first stay with a fee, and feeling the mental sting of being taken advantage of when looking over the bill and seeing the word "fee" I can say I'd be questioning my decision to stay with them the next time.

But we would get so much we didn't have before with this new resort fee. haha

@ScottGustin on Twitter

1. The refillable cup RFID
2. MM+
3. Categorized annual pass and day tickets
4. Entertainment cuts all over the resort
5. Significant price increases
6. Devalue on everything else
7. A possible $15/night resort fee - yes this happen guys!

Things are really starting to look bad here. I love disney but at some point something has got to give. But the reality, people will still gladly fill up the parks. Perhaps they are trying to price out the general american population from staying on property but that seems to contradict everything that disney has been in a great position of marketing.

The breakdown in my mind:

Magical Express - I used to enjoy this, but the buses have become over crowded and take far too long to load up. I'm a rental person now (and as a bonus now visit other amusement and national parks on our stays because of this.)
Magic bands - Don't need them. I'm sitting next to a pile of them from prior trips and question why I really want them anyway. They're annoying. The tech should be attached to something we already all own: like phones.
Fast Pass Plus - This one is all on them. They chose to implement it, I preferred the paper variety. Not to mention, not everyone staying in the hotels is entering the parks.
EMH - Disney has been using this as a selling tool for years now. Charging for it seems counter intuitive from a marketing standpoint. EMH crowds are out of control too - different discussion for a different thread.
Parking - Seriously? How much does it take financially to run a parking lot when you are the only land owner in the area.

All things said, Disney has already worked hard to sour the parks for guests as it is with overcrowding, reducing hours, increasing prices, and zapping cast members who worked hard to make the experience a fun, memorable one.

Now they're starting on souring resorts? I am currently debating on my vacation for 2017, and up until recently it's never been a question on where to go: WDW has always held the #1 spot. I think I need a trip to the mountains. As far as I'm aware it's still fee-free to dip our toes in a mountain stream and breathe fresh air.

 

[DisneyChik17]

Honestly, this is just plain dumb. Yes, nearly every resort in the Greater Orlando area charges a resort fee, however the math doesn't support the idea.

On average, the total "cost" of an occupied room at a regular hotel in ~$45 (includes cleaning, hotel service staffing, and routine maintenance, etc.). For Disney, when you included these addition services the cost is higher, but not what you might think. It comes to around ~$75 (and that includes everything except EMH, because that is still considered a park revenue with food and merch). So, the LOWEST I have ever seen a Disney room rate is $99, which is still ~$25 in profit, per night, per room.

So now, they would be asking for your room rate+tax+resort fee, which at the very least gives them ~$40 per night per room in profit.

I'm local and not a CM, so I am fairly objective on this using just my background in hospitality, but to me it would make more sense to itemize everything and not do the resort fee. Pay for EMH, pay for ME, pay for Wifi, pay for childcare (because what the? free childcare?), you pay for arcades/entertainment anyway (unless they mean one lobby TV).

It just seems silly, because the resorts are the funnel to the parks, not the destination (for me at least). It's one thing if these were places I could spend days upon days, shopping, dining, dinner shows, spas, extra perks, etc.

I vote no. I want a survey, because I ALWAYS get them (like 4 a week), but I've not received this one.

 

[rael ramone]

I think they problem most people fear. Is that Disney will charge this nightly fee AND increase room rate. So, not just $365 (350+15) It could instead be $380 (365+15). So the room price will not go down because they added this fee and split out all the freebies from the room rate.(as this was included in roomrate before) It will stay the same or increase. because they can.

When it comes to looking for ways to add to the Buyback Fund, it's never OR. It's always AND.

Raise admission AND raise room rates AND raise food prices AND institute resort fees AND raise dining plan AND cut offerings/cleanliness/quality.

 

[Slowjack]

My goodness, this is so disappointing, whether they follow through with this or are just considering it. When "resort fees" were first introduced, they were a way for condo resorts to pay for the upkeep of the pools and so on. To charge them for a hotel stay is absurd. The implicit deception is so galling--telling the guest what's "included" in the fee. If the fee is mandatory, then everything could or could not be considered part of the fee. It reminds me of those "doc fees" that car dealerships tack on. Is that what Disney wants--to provide a purchasing experience akin to a car dealership?

I know that lots of other hotels do this, but guess what--Disney is supposed to be different; that's why people pay more to stay at Disney, because something is supposed to set it apart. Memo to Disney: you can't brag about treating your customers like they are your honored guests while you are charging them like they are a bunch of jerks you hold in contempt.