Is Disney Pricing themselves out of the Middle Class???

[acishere]

I am a single Dad with custody of 2 teenage daughters, and my ex hasn't paid her child support in 17 months. I have to spend my money wisely. No Disney. We will have to slum it at Cheeca Lodge snorkeling in the Keys. I feel like a bad father.

How do sleep at night? Taking your children on a vacation where you get to sleep in, go diving in clear water, and you probably are even going to relax on one of those chairs with a drink you sick, sick man.

*looks up September rates*

 

[Obi Walt Kenobi]

Well it expensive that's for sure and I'm certain it will continue to go up in price. Its set up to where you have to stay a week or more to get your money's worth, and completely unreasonable to go for one day or even two days. I don't like the idea of punishing people because they can only afford to go for a day or two and reward people who have the privilege of staying for ten days, doesn't seems fair... I do completly understand that it's main reason is designed to keep guest on property.

 

[wendysue]

Long answer short: yes, but prices will continue to rise until Disney sees a noticeable decline in occupancy rates at the resorts.

This year they will see 2 less trips from us....as in none. We decided that the prices have risen too high and the food quality has declined enough that we need to spend our vacation money elsewhere.

 

[Mad Stitch]

This year they will see 2 less trips from us....as in none. We decided that the prices have risen too high and the food quality has declined enough that we need to spend our vacation money elsewhere.

As long as there is someone to fill your vacancy Disney will not notice nor care. When you quit going and that room stays empty, the price increases will stop or dare I say decrease.

 

[FettFan]

Long answer short: yes, but prices will continue to rise until Disney sees a noticeable decline in occupancy rates at the resorts.

And for the life of me, I don't understand that kind of corporate logic.

I mean, actual reasoning would dictate that if one wants to see a rise in hotel occupancy, one would lower the prices of park admission in order to entice more people to visit and be more willing to stay on property.

 

[Mad Stitch]

And for the life of me, I don't understand that kind of corporate logic.

I mean, actual reasoning would dictate that if one wants to see a rise in hotel occupancy, one would lower the prices of park admission in order to entice more people to visit and be more willing to stay on property.

But they already have high occupancy rates. When they raise prices, and occupancy rates stay the same that tells them they undervalued their product and left money on the table when they could have been making more money.

 

[ParentsOf4]

But they already have high occupancy rates. When they raise prices, and occupancy rates stay the same that tells them they undervalued their product and left money on the table when they could have been making more money.

WDW occupancy rate is down, WDW attendance is down.

At Disney's 2012 earnings conference call, Jay Rasulo said that "Walt Disney World attendance was down modestly". Based on other statements, it seems it was down 1-to-3%. Even that decline was propped up by significant increased international attendance, led by Brazil and Argentina. Domestic attendance is down even more.

Rather than try to appeal to Americans, it appears Disney is advertising to new markets overseas, assuming these new markets won't be as demanding since they don't know what WDW quality was like in the past and would consider the entire parks as "new" experiences, unlike Americans who have been going to WDW for years and recognize that WDW has not had a major expansion since DAK 15 years ago. It's cheaper for Disney to advertise overseas then it is to improve the parks.

Furthermore, Disney confirmed during the call that occupancy rates are down to 78%. This after being closer to 90% for many years.

Even so called "Value Resort" rooms are approaching $200/night on holiday weeks such as Easter. Christmas week is at $199/night and, no doubt, will soon break the $200/night psychological barrier. These are for Disney's least expensive rooms. The least expensive room at the Grand Floridian for Christmas week now starts at $842/night. At these prices, more and more guests are staying offsite or simply not visiting WDW as all.

For some perspective, when WDW opened in 1971, it was possible to get a room in the Garden Wing of the Contemporary Resort for $22/night, about $125/night today. For it's first decade, WDW's room occupancy rate was essentially 100%.

Returning to the thread's title, "Is Disney Pricing themselves out of the Middle Class?" The answer is a resounding "YES".

 

[ParentsOf4]

And for the life of me, I don't understand that kind of corporate logic.

I mean, actual reasoning would dictate that if one wants to see a rise in hotel occupancy, one would lower the prices of park admission in order to entice more people to visit and be more willing to stay on property.

When it comes to WDW senior management, the current darling metric is spending-per-guest. Essentially, Disney only wants the "guests" who spend the most.

If you look at its pricing changes over the last 5 or so years, Disney has gone out of its way to eliminate nearly everything that could be considered a "good value". Loyal Annual Pass Holder and Florida residents have been punished particularly hard, often with double-digit price increases.

 

[Alexis]

How do sleep at night? Taking your children on a vacation where you get to sleep in, go diving in clear water, and you probably are even going to relax on one of those chairs with a drink you sick, sick man.

*looks up September rates*

The Keys is great!!! The reefs are beautiful! If I were you I'd take the actual time to travel to Key West. Lots of shops down there, restaurants and much more to do. Cheeca Lodge is in between!

 

[Skibum1970]

My personal feeling is that Disney is pricing itself out of the middle class or, at the least, the middle of the middle class. I know some disagree but I just priced a vacation for my wife and I to the tune of $2,400 with discounts. Now, that is flying and not driving and staying onsite. Still, that is a lot of money for a vacation. Now, they may be figuring that fewer customers spending more money is the trade-off they want (as shown above about IPhones). It's just a lot of money.

 

[FettFan]

When it comes to WDW senior management, the current darling metric is spending-per-guest. Essentially, Disney only wants the "guests" who spend the most.

That simply reeks of shortsightedness to me, and I'm pretty sure that Walt would never have approved such an operation.

 

[Kramerica]

It's funny this post has been created. I've been throwing around the idea of flying down for a three day weekend in Disneyland. For the cheapest disney owed resort, two days at a hotel, and (the most inexpensive part might I add) the flight, it'll cost me near 1500 dollars.

Look, I'm loyal to Disney. There's no place else like it on the planet. But when you can't afford it, you can't afford it. And one day, sadly, unless I win the lottery, the cost will outweigh the love. I'm going to soak it up now while I can.

 

[RhonddaDisney]

I gotta agree with an above poster, that it will keep going up until it hits Disney where it hurts.

At the moment in the UK it is roughly the same for us to goto Disney Florida as it is to goto Spain/Canary Islands and sit around a pool all day. To us it is a no brainer ...would much rather goto Florida where every day is different.

 

[RhonddaDisney]

Well here in the UK it is about the same to goto Disney florida as it is to goto mainland spain and sit around a pool all day. No brainer

 

[luv]

It does bug me that they offer better deals to people overseas than they offer us. It isn't that I begrudge others a discount! I just want it, too.

It feels a bit like a slap in the face from Disney.

I don't see why the new FP techie crap would increase attendance or occupancy. So far, it seems more like a reason to avoid Disney than to go and stay in their hotels. I guess we will see how it all shakes out.

 

[RhonddaDisney]

It does bug me that they offer better deals to people overseas than they offer us. It isn't that I begrudge others a discount! I just want it, too.

It feels a bit like a slap in the face from Disney.

I don't see why the new FP techie crap would increase attendance or occupancy. So far, it seems more like a reason to avoid Disney than to go and stay in their hotels. I guess we will see how it all shakes out.

We have stayed at disney orlando for the last 6 years, and unbelievably the price for us to stay as stayed either the same or got cheaper. We are going this year again in August and staying POR, The cost forus for 2 weeks including disney 14 day ultimate comes out at £2300 for 2 adults 1 child plus we get dining plan (staying at moderate resort), this doesnt include our flight which is another £1000 GBP. How does that compare with the US.

 

[Disneyhead'71]

We have stayed at disney orlando for the last 6 years, and unbelievably the price for us to stay as stayed either the same or got cheaper. We are going this year again in August and staying POR, The cost forus for 2 weeks including disney 14 day ultimate comes out at £2300 for 2 adults 1 child plus we get dining plan (staying at moderate resort), this doesnt include our flight which is another £1000 GBP. How does that compare with the US.

I just ran the numbers, POR, Standard Room, 10 day ultimate pass (10 day was the longest option), regular dining plan= $5,817.66. With today's exchange rate that's £3704.69

 

[RhonddaDisney]

That's quite a steep increase for the us residents, plus your travel costs, why is that .

I thought you guys would be getting a better deal

 

[Bcakd]

Disney isn't only going after the middle class american consumer... WDW is aimed at anyone in the world that can afford it. IF the prices rise to the point that the rich of the world can afford it, then they will not care so long as the number of rich in the world going allows them to make their profit.

I for one would like it if they raised the prices, especially the prices at the gate. I would love to be able to go to a Disney that was so expensive that it wasn't crammed full of people to the point that you can't even ride half the rides because the lines are too long. It was the best thing about some of the hard ticket events in the past - shorter lines... though now I have a feeling they are selling more tickets than in the past as often the events seem more crowded than in the past.

In the end I doubt the prices are too high or they would have already started scaling them back. Especially true or the rates for rooms, the number of AP discounts seems to have declined over the past 6 or 7 years which tells me that they aren't having as much trouble selling all the rooms as they used to.

Not sure which hard ticket event you went to but, we took our 2 year old to MNSSHP and we were MISERABLE!!!!!! There were so many people there you coldn't move!!! We saw about 3 characters up close, the others, like all 7 dwarfs with Snow White, Cruella, Mickey, Minnie, et all; were at the end of lines that were well over 150-200 people thick. There wasn't even elbow room while walking. We also went to The Food and Wine Festival one of our nights while there...BIG MISTAKE!!!! We statrted in Mexico and by the time we got to Italy, we jumped on the boat and got the heck outta there. Even on the regular days, we waited at least 30 minutes on busses to pick us up to get back to hotel.
I said that all to say this: I don't think the ticket prices being raised will have any effect on the crowded-ness! They are just over selling daily. That was the most miserable Disney trip I had ever experienced in 22 years. If it is the same way this May when we go.....I'm afraid our vacation $$$ may be spent somewhere else!
But now, with that being said, I wish every child, rich or poor, would have the opportunity to visit this magical place.

 

[Gabe1]

Right now a trip to WDW is "affordable", same price as going to Europe would be roughly, but it keeps increasing yearly, tickets, hotels, food, etc. Right now for a week for a family of four it will cost about 5000.00 roughly to go to WDW to stay in a moderate resort. Their are great options at the Value Resorts to save some of this and get down to 3000.00 to 3500.00 for the week. Now I understand a lot of families can afford this, but with the cost of living rising dramatically, free lending dimishing, and the increasing taxes looming, does WDW have a situation on their hands where in 5-10 years, they will be just too expensive (one WDW vacation is the price of a beach and mountain vacation) to where they will lose guest? My answer is yes, and they need to examine where they charge the higher expenses. I am not saying lower prices, but WDW needs to put a freeze on ticket, food, and value resort prices, otherwise a great deal of their customers may find it unaffordable. Your thoughts?

The first time we stayed in POFC the year it opened my family of 4 (1 still free), 11 days, free sit down breakfast including character breakfasts ,recreation bikes & paddle boats, mini golf late January, Early Feb. was $2,300 with length of stay park hopping passes. And we were given a free full size crib too!

So yeah, Disney is really outpacing the CPI. Our annual two week trips have gone wayward, sending these Rugrats to college does that to you.