Just to remind every one, DME was not free. Disney increased the room rates at all resorts to cover the expense. So all who stayed at a Disney resort were subsidizing DME whether they used it or not. The part of this that gets lost is when DME was discontinued, the room rates did not decrease--Disney just kept the extra as profits. As a side, DVC subsidized DME thru HOA dues. Now the dues did not go down, they just did not go up as much as anticipated when the new Union contracts kicked in with higher hourly rates for CMs.
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News Disney's Magical Express to end after 2021
- Thread starter WEDway Inc & Company LLC
- Start date
Tha Realest
Well-Known Member
I wonder if the consolidation of the two services back to Mears makes it more likely DME gets extended again in some form (as a package arrangement, etc). Could see a scenario where Disney offers “free” Rt travel in the form of a subsidized payment to Mears for the families booking under a promotion.
Splash4eva
Well-Known Member
That im sure they were 100% indirectly charging for and used Uber as an excuse
Kamikaze
Well-Known Member
Bad argument. Do you specify that park transport isn't 'free' because its included in the ticket price//room rates? No. Even though it is.
You're right, that's how it is in reality - the cost is included elsewhere. But it doesn't cost people money directly out of their pocket specifically to get from the airport to property. So saying its 'free' isn't wrong either. In Disney parlance, it was 'complimentary'.
Whichever way it was paid for or broken out in Disney's P&L, it looked 'free' to the guest. Especially, as you said, since they didn't reduce prices or dues when it went away.
UNCgolf
Well-Known Member
I think you focused on the wrong part of his post -- I could be mistaken, but I think the main thrust was that Disney eliminated DME but continued to charge the same rates, so not only did they eliminate the "complimentary" service, you're still being charged for it.
Cmdr_Crimson
Well-Known Member
They should've made a paid to use option already with the luggage pickup and call it Disney Direct.
You are correct. Just to take everyone back a few years, Disney had a very contentious contract negotiation with Mears several months before they announced the end of DME. Disney did not really want to end the DME, but Mears would not agree to lower their prices even though data showed fewer people were using it. Much of this was reported on several Web sites, no I do not remember which ones, but as a frequent user of DME I was following this closely. In those reports, those reporting on the situation commented on how room rates had been increased to cover DME. So when the whole thing fell apart, no mention on reducing room rates to give back the extra charge made to cover the DME. You see, it was a win win for Disney. If they had been able to make an agreement with Mears, it would have been at a lower price point and when the whole thing fell apart they already knew they were going to keep the extra income.
el_super
Well-Known Member
That's not really how it works. Room rates are determined by market factors. Pricing should be set by how much people are willing to pay for the room, balanced by the number of rooms and availability. They don't raise prices to cover incremental changes in operating costs.
UNCgolf
Well-Known Member
Yes it is, unless Disney runs/prices their hotels differently from every other major hotel operator -- which I suppose is possible, but is also exceedingly unlikely.
The cost of amenities like Magical Express are part of the baseline calculation for resort rates. Of course nightly rates will fluctuate based on other factors, but it absolutely has an effect on pricing, if only a relatively small one.
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Ayla
Well-Known Member
Disney Bus Plus - GENIUS!!!Disney Bus Plus, IMO - bookable at 7AM the day of your flight
el_super
Well-Known Member
Most hotels in the world charge rates based on market conditions / demand.
You're not still being charged for DME. You are being charged for a room at the rate the market will support. That's how it works all over the world.
Vegas Disney Fan
Well-Known Member
And the amenities (or lack of amenities) play a big part in determining that rate. The bubble, the internal transportation, the themes, etc are a big part of the reason Disney can (could) charge what they do, the diminishing of those amenities is the biggest reason I can't justify booking a trip right now, I look at what Disney's charging for their rooms but then look at all the perks they've taken away and it's just not worth it right now.
matt9112
Well-Known Member
Maybe but Uber and Lyft aren’t nearly as cheap as they once where. They became famous because they were extraordinarily cheaper than taxis. Although there still a better deal it’s not the absurd difference it once was.
matt9112
Well-Known Member
True but the market expectations do change. The value for example has dropped I don’t think anyone can argue that so long term that will effect “what the market can support”
Tha Realest
Well-Known Member
I get that. But if we follow through this line of thought, we “paid” for it before. It’s no longer included, and we’re now paying a lot more for those rooms than in 2019. So we’re still paying the premium for it, but not getting it.
el_super
Well-Known Member
So why didn't demand for the hotels shrink from 21 through 22 when DME was discontinued?
If DME was critical to the experience, so much so to justify the higher prices in hotel rates, over what the market would normally see, why didn't that demand shrink in the, literally years, after DME was announced to cease operations?
Was it just not that important to people?
Well yeah, nothing is *free*. I'm not sure what the point you're making is though? The resorts offer all kinds of services, amenities, and features that are being paid for by all guests, whether they use them or not. Personally I never drink the *free* in-room coffee, use the *free* in-room TV, or the *free* resort pools. I don't use the parking, watch the outdoor movies, or much of anything else much. I'm still paying for those facilities, their upkeep, staffing, etc whether I want them or not. I also don't feel like I deserve $10 off my room rate because some other people use or enjoy things I don't.
Wendy Pleakley
Well-Known Member
Isn't hotel occupancy on a downward swing this year?
I personally doubt it's a major factor for most guests. It's not a huge cost when one looks at the price to visit WDW and it's generally accepted one gets oneself to/from the airport when on vacation.
Will it have some impact? Maybe. It's one of those "declining by degrees" things where it's just a small thing, but those small things can add up.
They've taken away something that added to the specialness of a WDW vacation. There was something nice about getting off a plane and walking into that ME zone and feeling like you're in your vacation bubble. No stress of figuring out where to get an Uber or taxi and not knowing what the current price and/or wait times might be like. ME was relatively predictable.
Those little moments that distinguish a WDW vacation from another destination have value. The question is, how much?
JD80
Well-Known Member
I don't think Airport to Resort transportation makes or breaks vacation choices but it is one extra thing people pile on when they talk about Disney Vacations and what "they used to get" while paying less.
These conversations about lower crowds/attendance can never be tied to specifically one thing. It's always a collection of things.