Eliminating some Florida resident annual passes?

[SoFloMagic]

What's the gold get you, 280 days of parkhopper for $700? Still very fair and as long as they leave it in place, I think they have a pass at a great value available.

Even if you only use it once a month, that's like $58 a day for parkhopper with free parking and 20% off merch - still by FAR the best offer out there.

A crisis this rumor is not.

 

[markc]

This rumor is slightly overstated.

There was talks of altering some of the FL passes (esp the Silver pass), but I don't believe there's been talk of a mass axeing of the FL Resident passes.

What is interesting, however, is that there was talk internally several weeks ago of re-introducing the offer of giving a free month to renewing pass holders to encourage sales of it during the holiday period as they did three years ago. There's fear (and potentially data that might be validating this fear) that the higher end passholders are starting to decrease at a faster rate than expected.

 

[Vacationeer]

...higher end passholders are starting to decrease at a faster rate than expected.

With out of state it doesn't make sense for me to buy another AP. I don't save much over 2 trips, so why bother paying ahead for the second trip and possibly losing that money if for some reason we can't do the 2nd trip. It was much less a risk a couple years ago before prices exploded. And with no incentive to go a second time, once a year is fine.

 

[Victor Kelly]

Disney is focusing on guest spending per capita as a solution to crowding, guest experience and earnings. Between Magic Bands and the newest data tools, they see who is spending what. Disney will correct anything that brings "per capita" profit down by making less expensive travel styles cost more one way or another. That's what I think after reading the statements below.
A bit like playing with fire; it won't be easy to recapture guests they've alienated if they need to rely on their spending in the future. At that point maybe a good sale incentive is all they would need? I dunno.

• Bob says, “We know that crowding can be an issue and when our parks are at their most crowded, the guest experience is not what we would like it to be,” Iger said. “So we are leveraging the popularity to increase pricing and to spread demand — to get much more strategic about how we are pricing, so that the parks are still accessible but in the highest peak periods we are trying to manage the attendance so that the guest experience isn’t diminished.”
• CFO says, “Attendance at our domestic parks was comparable to the first quarter last year, however per capita spending was up 7% on higher admissions, food and beverage and merchandise spending. Per room spending at our domestic hotels was up 5% and occupancy was up three percentage points to 94%. So far this quarter, domestic resort reservations are pacing up 4% compared to prior year, while booked rates are up 1%.”
  
  ^Earlier this year. From 2019 3rdQ report:
  

  The Walt Disney Company Reports Third Quarter and Nine Months Earnings for Fiscal 2019 - The Walt Disney Company

  BURBANK, Calif.–The Walt Disney Company (NYSE: DIS) today reported quarterly earnings for its third fiscal quarter ended June 29, 2019. Diluted earnings per share …Read More

  www.thewaltdisneycompany.com
• "The decrease in operating income at our domestic parks and resorts was due to higher costs and lower volume, partially offset by increased average per capita guest spending. Higher costs were driven by labor and other cost inflation and expenses associated with Star Wars: Galaxy’s Edge, which opened at Disneyland Resort on May 31. The decrease in volume was due to lower attendance, partially offset by higher occupied room nights. Guest spending growth was primarily due to higher average ticket prices and increased food, beverage and merchandise spending."

not against you. But ahhhhh statistics. My statistics professor said that you can make statistics say anything you want.

So.....yes there is higher spending because they are charging more and we the consumers get less. We are getting less quality, less quantity. And lets face Iger is pricing out middle America. Right now if I had an annual pass (i so want to move to Florida and have this) i would just say enough is enough and have another hobby like model railroads or my action shooting.

I know the Disney bloggers, like Tim T and others will take a nasty hit. And lets face facts, bloggers are free press. They drive interest.

Disney is not about experience and nostalgia. It is about the Bottom line. We may have been better off if they got taken over in the 80s. So let the flames begin.

 

[monothingie]

What is interesting, however, is that there was talk internally several weeks ago of re-introducing the offer of giving a free month to renewing pass holders to encourage sales of it during the holiday period as they did three years ago. There's fear (and potentially data that might be validating this fear) that the higher end passholders are starting to decrease at a faster rate than expected.

What I had heard from a couple of people in the know was that renewals are so off that 15 for 12 was being considered. But overall the renewals are way down. I know I've gotten several surveys this year after each of my trips about AP "Value", so there is definitely something up.

With out of state it doesn't make sense for me to buy another AP. I don't save much over 2 trips, so why bother paying ahead for the second trip and possibly losing that money if for some reason we can't do the 2nd trip. It was much less a risk a couple years ago before prices exploded. And with no incentive to go a second time, once a year is fine.

After the last round of increases an out of state Platinum AP break even point is depending on when you go is 12-13 days for an equivalent park hopper MYW ticket.

 

[John park hopper]

Has Disney hit the price price wall for many AP holders? Will that stop the price increases --probably not

 

[matt9112]

What I had heard from a couple of people in the know was that renewals are so off that 15 for 12 was being considered. But overall the renewals are way down. I know I've gotten several surveys this year after each of my trips about AP "Value", so there is definitely something up.



After the last round of increases an out of state Platinum AP break even point is depending on when you go is 12-13 days for an equivalent park hopper MYW ticket.

Dosen't bode well for us peasants at the silver tier. If there not squeezing the rich dry they will need to make up for that income somewhere.

Not to get off topic but i genuinely like universals tiering more. Use the ancillary benefits as chips. Level discounts with the pass etc. I think disney could throw in a party or two into platinum too to sweeten up the deal. I use universal to cover my block out dates from disney. Wouldnt disney rather i stay there all year? Its purely a value thing. Right now i think the passes are at the tipping point of what i would call "realistic value" we know on paper all the passes are ana amazing value when you factor day costs but that doesn't factor the raw cost of visiting. (Food,merch,travel if need be) its not as if i go there on my pass and dont spend a dime more. So if i go 12 times a year at x per visit in still having to pay all these other things that are just part of visiting. Theres only so often you can financially visit. If you live right there this is likely a moot point but for the rest of us.

I think seaworld is the best VALUE in orlando right now period. Is it disney? Of course not. Is it a great value yes.

 

[Vacationeer]

not against you. But ahhhhh statistics. My statistics professor said that you can make statistics say anything you want.

So.....yes there is higher spending because they are charging more and we the consumers get less. We are getting less quality, less quantity. And lets face Iger is pricing out middle America. Right now if I had an annual pass (i so want to move to Florida and have this) i would just say enough is enough and have another hobby like model railroads or my action shooting.

I know the Disney bloggers, like Tim T and others will take a nasty hit. And lets face facts, bloggers are free press. They drive interest.

Disney is not about experience and nostalgia. It is about the Bottom line. We may have been better off if they got taken over in the 80s. So let the flames begin.

What I get out of all this is they don't want to lose high spenders over crowd conditions. They manipulate pricing in such a way that most guests now pay alot more and if they lose you because you're not willing pay that much, they see it as you were not spending enough per capita and are easy to drop so the high spenders don't feel crowded.

They are playing with fire. It looks good on paper to have guest spending averages at an all time high but is it sustainable?

 

[Kman101]

It's not even so much crowding or capacity. Disney wants more profit per person, regardless of the means to that end. If they can do it with less people then they can "kill two birds with one stone" as they say.

Then prices on merch and food should be lower ... that’s where they are really starting to price folks out. They can spread demand all they want but That doesn’t mean folks are buying the stuff. I don’t think they’re as focused on who spends what when (annual passes give them instant money and so does monthly payments) as much as they want demand spread out.

 

[Finallyinflorida]

For every "freeloader" there is someone like me. We go to WDW, about 4X a year, and stay 3 nights on property. We spend over $1000 each trip in food and alcohol.

If we did not have our APs, we would take more cruises. Disney knows this, that is why there is a monthly payment plan, that we will be on forever. It's pretty easy and inexpensive to just book a room and go away for a few days. I think I spent $150 on drinks at Epcot one night, I would bet there were 1000 other AP holders there that night too with similar tabs. They want our money, and there will not be changes that will chase me away.

Same here. We live about 5 hours away but having the Florida discounted passes (on a payment plan!) still allows us to go more. We are able to do weekend trips all year long. We eat in the parks every day, almost always make a reservation for a nice sit down meal, stay on property sometimes and always come home with more Disney merchandise. During the EPCOT festivals, the $$$$$ is even more.

 

[Kman101]

Same. This "freeloader" gives the Mouse plenty of my money.

 

[Fallingends]

For every "freeloader" there is someone like me. We go to WDW, about 4X a year, and stay 3 nights on property. We spend over $1000 each trip in food and alcohol.

If we did not have our APs, we would take more cruises. Disney knows this, that is why there is a monthly payment plan, that we will be on forever. It's pretty easy and inexpensive to just book a room and go away for a few days. I think I spent $150 on drinks at Epcot one night, I would bet there were 1000 other AP holders there that night too with similar tabs. They want our money, and there will not be changes that will chase me away.

Same same hahah, every ridiculous “freeloader” comment, i will go even more now then i was all ready planning on going haha. 3 hours north and stay on property every time we go and spend about that on food and mech each time we go.

Payment plan lets me and my girl spend more in the parks and hotel for night or two and that’s what Disney wants, money To keep coming from me on all sides, on monthy plan for my two Gold AP’s and the money i spend on the hotel, food, drinks and mech.

 

[SSH]

When do they run that promo??

see my post earlier in thread - usually in late winter/early spring

 

[RustySpork]

Same. This "freeloader" gives the Mouse plenty of my money.

Oh admit it, you're just like the rest of us. You buy the lowest tier pass and you smuggle a PBJ sandwich and water bottles filled with vodka into the parks while wearing the D1sney merchandise that you bought on AliExpress.

 

[SSH]

Then prices on merch and food should be lower ... that’s where they are really starting to price folks out. They can spread demand all they want but That doesn’t mean folks are buying the stuff. I don’t think they’re as focused on who spends what when (annual passes give them instant money and so does monthly payments) as much as they want demand spread out.

That's because most of the leaders making these decisions were probably not employed there or in those positions of authority during 2009/2010 - they've only known growth and prosperity under their watch.

Revenue from APs saved them when "one and done" guests were canceling trips left and right. They're about to get schooled...if not this year, then next or the year after.

 

[CJR]

I don't believe that Disney has an accurate record of spending by specific guests. They might on a few, but I haven't had a new magic band for a couple years now. I mean, I have because I've stayed at the hotels, but I still use my old one for the parks. So, I don't get my pictures on some rides like Frozen Ever After (I know, missing out on a lot there with those lovely steps). I don't think they really care how many food carts you shop at or if you enjoy your meal at Electric Umbrella.

They likely focus more on the big spenders who will have reservations at Victoria and Alberts, the Royal Table, and the others. Especially those with repeat visits to these locations. It's easier for them to probably get an idea who's at the top than among the bottom.

If I had to guess, a lot of the people at Victoria and Alberts and the others, probably have annual passes too.

 

[HauntedMansionFLA]

see my post earlier in thread - usually in late winter/early spring

Thank you

 

[markc]

I don't believe that Disney has an accurate record of spending by specific guests. They might on a few, but I haven't had a new magic band for a couple years now. I mean, I have because I've stayed at the hotels, but I still use my old one for the parks. So, I don't get my pictures on some rides like Frozen Ever After (I know, missing out on a lot there with those lovely steps). I don't think they really care how many food carts you shop at or if you enjoy your meal at Electric Umbrella.

They likely focus more on the big spenders who will have reservations at Victoria and Alberts, the Royal Table, and the others. Especially those with repeat visits to these locations. It's easier for them to probably get an idea who's at the top than among the bottom.

If I had to guess, a lot of the people at Victoria and Alberts and the others, probably have annual passes too.

If you use a credit or debit card, they have an accurate record.; magic bands aren't the only way they can aggregate spending data to a specific consumer.

That being said - their main concern is AVERAGE guest spending, which is done via calculations of park attendance against total revenue for the day in that park. They only start to break down specific guest spending when they're analyzing the value of specific passes (i.e. do Silver passholders spend a lot or are they, to quote others on here, "Freeloaders" ) or are florida residents likely to spend more than out of state guests, etc.

 

[Touchdown]

I don’t think it’s just Silver that has to worry, it’s Gold. Disney will always sell Platinum and Weekday select passes (gotta get the high rollers to go multiple times, and weekday select helps even out crowds.). If the Flex Pass is a big enough hit in DL, I could see something like that coming East, with very few “good to go days” and allowing people to book 3 reservations per 60 day period with the added bonus of allowing for a reservation to count for multiple days (up to 10) if paired with a resort reservation.

 

[CJR]

If you use a credit or debit card, they have an accurate record.; magic bands aren't the only way they can aggregate spending data to a specific consumer.

Bolded that for you. I use both credit and cash, so it's not accurate. EDIT: Also we get a lot of those lovely Disney gift cards. I would also guess that there are certain restrictions in terms of what they can do with credit information.