How far will Disney price gouging go?

[THEMEPARKPIONEER]

I'm starting to think that not only are they price gouging but raising the prices for crowd control reasons. After seeing rising attendance it's sickening how there robbing us like this not to mention dumbing the quality of many areas of the parks and shows.

 

[Cmdr_Crimson]

 

[Tom P.]

Disney will continue to raise their prices until they reach a point where the market can no longer bear it. It's that simple.

At the moment, Disney continues to enjoy record attendance and record profits at the parks. People may complain about the pricing, but people still go. That's all that matters.

 

[Master Yoda]

Disney will continue to raise their prices until they reach a point where the market can no longer bear it. It's that simple.

At the moment, Disney continues to enjoy record attendance and record profits at the parks. People may complain about the pricing, but people still go. That's all that matters.

This^^^^

Disney is a luxury item and will continue to price as high as they feel the market will bear. If the market ever pushes back they will adjust accordingly.

 

[bgraham34]

I am not happy with Disney raising prices but I have still been going. Its getting close to where I might not go every year. But they also get less money from me each year. This year I spent $15 on souvenirs and only ate at Quick Service restaurants.

 

[bethymouse]

Oh dear! Prices raise every year! But, this new system is just too much for me!

 

[rsoxguy]

Consumers will always be the source of support for prevailing standards. When we change, suppliers change. Consequently, our willingness remains Disney's sole support.

 

[CaptainAmerica]

I'm starting to think that not only are they price gouging but raising the prices for crowd control reasons. After seeing rising attendance it's sickening how there robbing us like this not to mention dumbing the quality of many areas of the parks and shows.

http://en.wikipedia.org/wiki/Price_elasticity_of_demand

 

[ShoalFox]

http://en.wikipedia.org/wiki/Price_elasticity_of_demand

^This
Demand for Disney parks is inelastic, so they can continue to raise price without backlash until they reach a point where demand is elastic (meaning that people will start to not buy tickets).

 

[CaptainAmerica]

^This
Demand for Disney parks is inelastic, so they can continue to raise price without backlash until they reach a point where demand is elastic (meaning that people will start to not buy tickets).

Even if people start to not buy tickets, if the decline in volume is still smaller than the increase in price, Disney still wins.

(I get the feeling you know this, but for those that don't.)

 

[disneyflush]

As Master Yoda stated Disney is a luxury item. They can and will charge as much as they are able. What percentage of ardent fans like us would be willing to pay 100% more for rooms and park tickets if it cleared out half the crowds in the parks moving forward? What percentage of us would pay an extra $100/day to skip lines entirely at all the rides? I'm sure the number is a non-zero. This is Disney's golden age of demand for their parks. Are their rides and ride technology representative of the future in theme parks? Probably not. Are the movies the rides are celebrating (Cinderella, Peter Pan, Winnie the Pooh, etc) inspiring the young generation of up and coming earners to dig deep to pay for a WDW vacation? Some of them certainly but not the majority. WDW is worth more because of the ambiance and nostalgia for the disposable income generation not because of the under age 30 crowd. WDW is a park celebrating the childhoods of grandparents and parents who didn't have cable television, the Internet, or mobile devices. A simpler time some of them (us) want to visit occasionally and share with our kids and grandkids. How much longer will this continue? Record crowds last year are pretty telling. If you think Disney has any incentive to curb the crowds just think about what happens when crowds are bigger and lines are longer in the Magic Kingdom for example. You ride less rides per day. You have to come back (more days or another trip) to ride all the rides or ride them multiple times. More days means you are presented with more spending opportunities on food, merchandise, pins, etc.

 

[Chef Mickey]

Price gouging is a term usually more reserved for necessary items like gas or food after a natural disaster. There are laws to protect consumers against this type of profiteering.

Disney on the other hand is a luxury brand and an optional, disposable income purchase. They are not "price gouging" if attendance increases every year and people are still lining up to go.

They actually need to increase their prices to take pressure off the parks that they've failed to adequately expand.

To answer your question, they'll increase prices until people decide it's no longer worth it, which might be never.

 

[Chef Mickey]

http://en.wikipedia.org/wiki/Price_elasticity_of_demand

Ha! I'd definitely say the demand for Disney is relatively inelastic...

That's why they can increase prices with very little impact on demand.

 

[DVCOwner]

If you compare the price of Disney Parks to other entertainment it does not seem to be "price gouging." Have you gone to a movie lately and purchased a coke and popcorn? Gone to a major league sporting event?

 

[erasure fan1]

I think what really gets people (especially me) is not the fact that Disney raises prices every year. It is what we are getting for this extra cost, or should I say the lack of what we are getting. WDW has done very little to justify the kind of price increases we have seen. And when you look down the road at what Universal has done/is doing, it can make you mad. But like others have said, as long as people are coming, they won't stop.

 

[Nero the dog]

It also makes the special offers and deals seem even better. So even if nobody pays the full rack rate they will still increase their income.

 

[draybook]

My only problem with the "record attendance" theory is how much of that is domestic? And how much of that is foreign traffic that enjoys a multitude of discounts and group rates? We haven't found the prices to be off putting enough to keep us away, but that might change if they switch to that tiered pricing based on season.

 

[blueboxdoctor]

Disney is a company and as such, they want to increase profits. I can't blame them, same reason trucks cost more than $40,000. They don't need to and they're mass produced, but for whatever reason, people will pay that much for them.

But if you plan well, you should get good value for your money at Disney.

 

[danheaton]

I agree that Disney will keep raising prices and with the idea that people are angry more about the lack of new attractions then the prices. It's also painful to watch UO and other parks build new things while Disney stands pat.

I do think that Disney may be hurting themselves in the long run in two ways. First of all, people may pay the ticket prices, but they could be staying off-site, not buying souvenirs, and spending less money on food. It's really hard to track that without specific surveys.

Also, there is a point where people who spend more and don't have better experiences (i.e., FP+, crowds, lines, etc.) will start to lose the goodwill. We aren't there yet, but Disney should be careful not to push too hard. While I don't expect Disney to ever have a huge collapse, they could lose ground if fans start to rethink their unabashed love for the parks.

 

[PhotoDave219]

I'm starting to think that not only are they price gouging but raising the prices for crowd control reasons. After seeing rising attendance it's sickening how there robbing us like this not to mention dumbing the quality of many areas of the parks and shows.

It will go as far as the market and the guests are willing to bare. And I wouldnt call a 2% attendance rise much of anything. The price increases outweigh the attendance increases.