Bob Chapek took over as Disney's CEO last year to replace Bob Iger. Before that, he was the head of the parks.
Ever since Chapek came to power, he's made some excellent decisions:
1. He eliminated the Minnievans because they weren't profitable.
2. He closed down the NBA experience because it's been bleeding money since day 1, even though it's Iger's pet project.
3. He kept WDW open through the worst of virus last winter.
4. He promotes the 50th anniversary despite the virus threat, a big boost to WDW attendance.
5. He begins the charging for fastpass, which is potentially a huge revenue for WDW. For my family, that effectively increases our park ticket prices by 75%.
6. He removes the DME airport transportation, which might have been a big drain on the profits.
7. He retains benefits such as EMH for the deluxe resorts only, to encourage their occupancy and increase profits. There's no point in paying $$$$ for deluxe when you get the same benefit at value. WDW is not a communist state.
8. He increased the hotel room costs for 2022 by about 15%, much higher than normal inflation rate, and the rooms are still going fast.
I think a business should always maximize its profit margins as long as it is maximizing profits. Sometimes, simply charging more reduces sales so much that it can reduce profits. Chapek obviously trusts in the loyalty of the Disney fans and the unique value of the Disney Parks. In the short run, for the next year or so, things are definitely looking profitable. In the long run, if the economy falls and people can't afford the high prices, Disney can always run a discount or promotional deal to entice people, like "free Genie+ and LL for August hotel stays!". In the mean time, they would have already harvested all the gains from the 50th celebration.
I just have a few recommendations to Chapek:
1. As a replacement for the DME, Disney can organize uber/lyft rides to/from airport. That way, guests can sign up and prepay for uber rides when they book, and don't have to worry about finding an uber when they arrive at the airport. Guests can order car seats or get other assistance, and Disney can earn a decent profit from doing this. Disney can also unify the charge, so that the cost of all hotels are the same. And if at some point, no uber driver is available, a CM can provide the service. Disney can vet and train uber drivers before allowing them to become a "certified Disney uber/lyft driver," which increases their status and earnings. The large number of Disney guests can line up in a proper order for their uber ride, and not all crowd out there in a haphazard manner. Right now, Disney is allowing you to rent a car when you book. Yeah, I'm not driving in Disney World. But Disney can keep that option too for anybody that wants it.
2. As a replacement for Minnievans, Disney should allow the uber/lyft to access the Magic Kingdom bus stop, where the Minnievan used to stop at, and charge a fee for it. That way, people can access MK directly and not have to be crowded into the ferry boat or Monorail. And the fee can be adjusted with surge pricing so that the MK bus stop doesn't ever get too crowded with uber cars. And they can set up a system so that only 1 or 2 cars can be at the bus stop at any time, and as one is ordered another one will be called in, similar to the uber system at airports. Disney can make quite a profit out of this plan with minimal labor required. And it will reduce crowds on the boats, monorail, and buses, so everybody benefits.
3. Allow the hotel arcades to have more shooting games. None of the hotel arcades have any type of shooting games, not even PG13 ones where you shoot at robots and they break into chunks. As a result, the hotel arcades are nearly always empty because there's nothing fun to play in there. Universal hotel arcades have such mild shoot games, and nobody complains about them being too violent.
Ever since Chapek came to power, he's made some excellent decisions:
1. He eliminated the Minnievans because they weren't profitable.
2. He closed down the NBA experience because it's been bleeding money since day 1, even though it's Iger's pet project.
3. He kept WDW open through the worst of virus last winter.
4. He promotes the 50th anniversary despite the virus threat, a big boost to WDW attendance.
5. He begins the charging for fastpass, which is potentially a huge revenue for WDW. For my family, that effectively increases our park ticket prices by 75%.
6. He removes the DME airport transportation, which might have been a big drain on the profits.
7. He retains benefits such as EMH for the deluxe resorts only, to encourage their occupancy and increase profits. There's no point in paying $$$$ for deluxe when you get the same benefit at value. WDW is not a communist state.
8. He increased the hotel room costs for 2022 by about 15%, much higher than normal inflation rate, and the rooms are still going fast.
I think a business should always maximize its profit margins as long as it is maximizing profits. Sometimes, simply charging more reduces sales so much that it can reduce profits. Chapek obviously trusts in the loyalty of the Disney fans and the unique value of the Disney Parks. In the short run, for the next year or so, things are definitely looking profitable. In the long run, if the economy falls and people can't afford the high prices, Disney can always run a discount or promotional deal to entice people, like "free Genie+ and LL for August hotel stays!". In the mean time, they would have already harvested all the gains from the 50th celebration.
I just have a few recommendations to Chapek:
1. As a replacement for the DME, Disney can organize uber/lyft rides to/from airport. That way, guests can sign up and prepay for uber rides when they book, and don't have to worry about finding an uber when they arrive at the airport. Guests can order car seats or get other assistance, and Disney can earn a decent profit from doing this. Disney can also unify the charge, so that the cost of all hotels are the same. And if at some point, no uber driver is available, a CM can provide the service. Disney can vet and train uber drivers before allowing them to become a "certified Disney uber/lyft driver," which increases their status and earnings. The large number of Disney guests can line up in a proper order for their uber ride, and not all crowd out there in a haphazard manner. Right now, Disney is allowing you to rent a car when you book. Yeah, I'm not driving in Disney World. But Disney can keep that option too for anybody that wants it.
2. As a replacement for Minnievans, Disney should allow the uber/lyft to access the Magic Kingdom bus stop, where the Minnievan used to stop at, and charge a fee for it. That way, people can access MK directly and not have to be crowded into the ferry boat or Monorail. And the fee can be adjusted with surge pricing so that the MK bus stop doesn't ever get too crowded with uber cars. And they can set up a system so that only 1 or 2 cars can be at the bus stop at any time, and as one is ordered another one will be called in, similar to the uber system at airports. Disney can make quite a profit out of this plan with minimal labor required. And it will reduce crowds on the boats, monorail, and buses, so everybody benefits.
3. Allow the hotel arcades to have more shooting games. None of the hotel arcades have any type of shooting games, not even PG13 ones where you shoot at robots and they break into chunks. As a result, the hotel arcades are nearly always empty because there's nothing fun to play in there. Universal hotel arcades have such mild shoot games, and nobody complains about them being too violent.
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