Is Variable Ticket Pricing coming to WDW?

[wiigirl]

I could see them doing this on single day purchases.

Same here

 

[disneyflush]

Sometimes I think of the Disney management teams like the gangs in West Side Story but the Jets are Team Make It Better And Give More Value and the Sharks are Team Find Ways To Raise Prices And Cut Costs and they are just circling each other snapping their fingers trying to show which group is going to pound the other into submission. I realize this isn't accurate but it makes me laugh to think of a Disney management meeting going down like this.

 

[lazyboy97o]

Hong Kong Disneyland has had variable pricing for a few years now. With the push towards advance planning, Magical Express, the Disney Dining Plan, FastPass+ and so forth this will be quite easy. You pick your days in advance just like your hotel room. Disney doesn't want people coming on a whim, they want the planners.

 

[wdwfan22]

I agree... higher prices on the weekends may cause some families to shorten their trip or visit other Theme Parks.

Resorts charge more for weekend stays and it doesn't hurt business one bit, so I can't see it hurting theme park attendance.

 

[alphac2005]

Hong Kong Disneyland has had variable pricing for a few years now. With the push towards advance planning, Magical Express, the Disney Dining Plan, FastPass+ and so forth this will be quite easy. You pick your days in advance just like your hotel room. Disney doesn't want people coming on a whim, they want the planners.

Nothing says a vacation like being preplanned and scheduled like the rest of your every day life. Ugh. It seems like people can't naturally just enjoy anything on a vacation any longer, or at least I should say that it the goal of the company's accountants.

Start with your non-spontaneous ride reservation, your non-spontaneous dining choice, your non-spontaneous encounter with a character at a predetermined location. Disney is what in business we constantly hear about, "controlling the ecosystem." They want to control you from the second you hit the ground at OIA and at every step along the property. Oh, the fun.

 

[alphac2005]

Resorts charge more for weekend stays and it doesn't hurt business one bit, so I can't see it hurting theme park attendance.

Disney already has countless issues with confusion with their currently tiered pricing system with the add-ons, expiration date issues, etc. If you top it off with variable pricing, I'd sure hate to be the front line Cast Members dealing with that all the time.

Our company does a lot of business with the USPS and I still hear back from our reps about the zoned pricing,flat rate vs. standard boxes, amongst other things for packages causing confusion on a daily basis. They switched to zoned shipping a few years back, but apparently the complaints come on en mass each and every day at postal locations across the U.S.

 

[Slowjack]

I don't understand how this can work with multi-day passes. What if you have the no-expiration option on the days, for example? Or what if you are splitting time among various Orlando-area attractions and you know how many days you intend to spend at Disney, but aren't sure about which days? or how about the fact that a busy, popular day at the Magic Kingdom doesn't necessarily equate to a busy day at the Studios? Would you get charged more for using a day because the resort as a whole is busy?

It's a lot simpler with a hotel stay because those are already necessarily tied to a particular place and a particular time, although, even there, Disney has gone way past the reasonable limit for tiering prices (the number of rate categories is absurd; I'd love to see the formulas they use to come up with those).

Also I find the whole thing a bit galling, since Disney is making more money on more crowded days, anyway--I mean, it's a lot more efficient to run the park for near-max capacity than to run it when crowds are sparse. What exactly would people be paying for when they paid more for a ticket? The privilege of waiting in longer lines? Larger, sweatier crowds for fireworks and parades? By this logic I should be able to have the park all to myself for a nickel.

 

[ChrisM]

I'm pretty shocked that this already isn't in place. I just assumed it was.

 

[flynnibus]

I don't understand how this can work with multi-day passes. What if you have the no-expiration option on the days, for example?

Existing tickets would simply be grandfathered - no biggie. Going forward, the system would have to account for it and how that would be done is dependent on other things.

Or what if you are splitting time among various Orlando-area attractions and you know how many days you intend to spend at Disney, but aren't sure about which days?

In all honesty.. most people figure that out and it's just something you'd have to deal with when you buy tickets.

or how about the fact that a busy, popular day at the Magic Kingdom doesn't necessarily equate to a busy day at the Studios? Would you get charged more for using a day because the resort as a whole is busy?

Sure - just like you paid more for your hotel, your meal, etc.

Also I find the whole thing a bit galling, since Disney is making more money on more crowded days, anyway--I mean, it's a lot more efficient to run the park for near-max capacity than to run it when crowds are sparse. What exactly would people be paying for when they paid more for a ticket? The privilege of waiting in longer lines? Larger, sweatier crowds for fireworks and parades? By this logic I should be able to have the park all to myself for a nickel.

You're paying for a time that is in more demand. Just like every other variable priced system.. People want to go during that time - not because of crowds, but for other reasons. That's what they are paying for. Be it school holiday, holiday stuff, etc.

Your hotel room isn't any different on a Saturday then it was on Wednesday.. yet you paid more for Saturday. It's exactly the same concept - supply and demand.

 

[BeautifulTomorrow]

Existing tickets would simply be grandfathered - no biggie. Going forward, the system would have to account for it and how that would be done is dependent on other things.



In all honesty.. most people figure that out and it's just something you'd have to deal with when you buy tickets.



Sure - just like you paid more for your hotel, your meal, etc.



You're paying for a time that is in more demand. Just like every other variable priced system.. People want to go during that time - not because of crowds, but for other reasons. That's what they are paying for. Be it school holiday, holiday stuff, etc.

Your hotel room isn't any different on a Saturday then it was on Wednesday.. yet you paid more for Saturday. It's exactly the same concept - supply and demand.

WOOOooooo Economics!!!!! I think if everyone wants to understand pricing they need to brush up on the laws of supply and demand!

 

[Pentacat]

With Nextgen coming any of these thoughts around ticket prices could become a much more practical reality. Disney will have much granular data on park and attraction data which should allow them to do all kinds of fun things. How about a return to the A,B,C,D,E ticket based system of days long ago but with a fun new wrist band twist? Or "due to guest demand" on days that the MK is busy the price will increase by 5% for every 10% of park capacity over 70%. Ticket agents will gleefully tell you that you could buy a multi-day park hopper and we'll waive that fee....or you could go to Epcot which is only at 50% capacity today and enjoy some savings by helping us better manage our crowd flow. More likely you'll see seasonal ticket price surcharges based on attendance.

My bet is that you will see non-package ticket prices increase greatly while package prices increase at a slower rate. In other words if you don't pay for a dining plan or an on-property hotel then your ticket price will be a good deal more expensive than if you had "bundled" in your ticket. Just drives more people towards MMW for a perceived "discount" in park passes and helps fill the Disney hotels.

 

[John]

I am not surprised nor outraged over this. I think some have hit the nail on the head when they say it will be averaged into your MMYW package. It might seem that the package will give you a discount but dont be surprised if the DDP and resort rates dont edge up also....wiping out any percieved discount. I dont think TDO is letting anyone off the hook. We will all pay. My question is when do they hit the perverbial "wall" With very little tangible improvements when do they outprice themselves?

How many of you consider the refurb such as Mainstreet a addition? Yes FLE is an addition but is that enough? Does that warrent a hike? Is TT 2.0 an addition? Or is it a refurb? Over the last ten yrs or so I see way more cuts then additions...IMO this will undoubtbly affect attendence in some way. The trend has been pointing down and I see it continuing....what say you?

 

[erasure fan1]

We will all pay. My question is when do they hit the perverbial "wall" With very little tangible improvements when do they outprice themselves?

Thats a great question that I think about a lot. Disney is going to push the pricing structure as far as they can, and as long as people still come, they will push it further. If they do go with a variable ticket, it wouldn't surprise me in the least.

How many of you consider the refurb such as Mainstreet a addition? Yes FLE is an addition but is that enough? Does that warrent a hike? Is TT 2.0 an addition? Or is it a refurb? Over the last ten yrs or so I see way more cuts then additions...IMO this will undoubtbly affect attendence in some way. The trend has been pointing down and I see it continuing....what say you?

FLE is an addition but its not worthy of a price hike. The reason I say that, is because its replacing something they took away many, many years ago. Just look at how many years they did price hikes with zero major additions to the MK. I really do expect them to push the envelope with price increases until they start to see a major push back.

 

[Slowjack]

Your hotel room isn't any different on a Saturday then it was on Wednesday.. yet you paid more for Saturday. It's exactly the same concept - supply and demand.

No, that's not the same thing. From a strict economics standpoint, Disney should charge less when the park is crowded, not more.

A hotel has only so many rooms. If the rooms are priced the same for all days, on some days they would sell out too quickly and Disney would forfeit the extra money that would have been paid--or, alternatively, the hotel would be greatly under-utilized during other times. The difference in pricing helps to even out the distribution of guests, and the overall guest experience is roughly the same (in the hotel, at least) regardless of the time of visit.

The parks don't have limitless capacity, but outside of the peak times they can absorb all expected levels of guests. So the scarcity of supply that drives the law of supply and demand doesn't directly apply. Keep in mind that people who attend the park during the summer tend to do so because it's the only time available to them, not because they prefer visiting during the crowds and heat.

Think of it this way: if you ran a one-plane airline, you would want to price your seats differently on different days to try to keep every seat filled on every flight. If you ran a river-cruise boat that always set sail with empty seats, charging more on busier days would be seen as a jerk move--after all, your profit margins are higher--why are you penalizing your most profitable customers?

 

[flynnibus]

No, that's not the same thing. From a strict economics standpoint, Disney should charge less when the park is crowded, not more.

Not sure where you come from - but here when you have a commodity that everyone WANTS and you control the supply - you have the ability to raise prices because the demand is there.

If you are the only company that makes a product - your get to set the price. When you see abnormally high demand for that product, you recognize you may have under priced the product and have the ability to raise prices without reducing people's willingness to buy. You can charge a PREMIUM because the demand is high.

You're arguing they should be paying based on the resulting experience - no, they are getting charged for being part of demand that is in excess of a normal baseline.

A hotel has only so many rooms. If the rooms are priced the same for all days, on some days they would sell out too quickly and Disney would forfeit the extra money that would have been paid--or, alternatively, the hotel would be greatly under-utilized during other times. The difference in pricing helps to even out the distribution of guests, and the overall guest experience is roughly the same (in the hotel, at least) regardless of the time of visit.

You're half right - but you're getting to the right place by going in the wrong door. They don't set out to DISCOUNT - they set out to price products based on the demand. Then if they can't fill the place, they will discount from there. They know there will be greater demand for the weekend, so they charge a premium and may even have to discount to BOOST lagging demand.

They don't set out and say 'our baseline cost for rooms needs to be $100... so charge $100 for saturday, and charge $80 for m-f'. They say 'our baseline cost for rooms needs to be $100.. but we can easily get more than that for weekends.. so charge $130 for saturday and sunday because that the market will bear that'

Keep in mind that people who attend the park during the summer tend to do so because it's the only time available to them, not because they prefer visiting during the crowds and heat.

Yes, the weather makes the period less desirable.. so those that CAN chose when they go, opt to go in other periods. Many people in the summer would go other periods if they had the choice. This makes summer one of the lower periods in demand - and disney can't get away with charging a premium.

Think of it this way: if you ran a one-plane airline, you would want to price your seats differently on different days to try to keep every seat filled on every flight. If you ran a river-cruise boat that always set sail with empty seats, charging more on busier days would be seen as a jerk move--after all, your profit margins are higher--why are you penalizing your most profitable customers?

You're arguing the principles of discounting to boost demand. You charge a premium where you can, and discount where demand is weak.

If your boat is empty - it's obviously not a 'busier day' - by your own definition your demand is weak to non-existent.

Disney can charge a premium during these periods because the excess Demand is there - that is what makes them 'busy'.

edit: When setting price strategies you formulate what is your expected demand. From there you can set what your costs per 'unit' will be and what your prices will be. Demand is often qualified relative to that... if it's below your targets, you need to boost demand. If it's above the targets, you reap the rewards. If you are too far off either way, you evaluate your pricing to see if its under or over where it should be to attract customers.

If you are always swamped with demand.. you evaluate if you under priced your product.

In no situation do you see overwelming demand and then you lower prices more.. that would be a leaving money on the table and making the crowding situation worse. People who are constrained are going to flock to the lower priced period.. only making the crowding worse.

 

[GoofGoof]

The season price changes make perfect sense to me. They already jack up the resort rooms and the DDP why not park tickets? Not sure if the daily pricing is very practical though. Maybe for 1 day purchases.

 

[Patricia Melton]

So, I guess the Sentinel's headline should have been "New Scheme for Theme Parks to Gauge the Customer Even More."

My goodness!

What a sad way to go through life, griping about someone "gauging".

Do you say this when you walk by a movie theater? Ever notice that the matinee is less expensive than the evening show and that a Tuesday night ticket is less expensive than a Saturday night? Same is true for Broadway shows...and as noted above, in the hotel world too.

Restaurants are also cheaper during the day than at night.

Do you accuse all of those businesses of "gauging" during their busiest times?

Sad.

 

[Patricia Melton]

I agree... higher prices on the weekends may cause some families to shorten their trip or visit other Theme Parks.

I think you are right about this.

I like a bargain, so I think if they charged more on the weekends then I would adjust our WDW plans accordingly. Currently, we go for six days, usually the last week of May. The days we go vary, though (usually when my son and daughter can join us).

I think if the tickets were more on the weekends that my family would choose to do the watermarks or even start doing something else in Orlando on Fri/Sat/Sun while we are there and would try to adjust our trip to avoid the weekends in the parks.

I wouldn't mind seeing seasonal pricing though. Give people a break during the less-crowded periods and they can charge more during the really busy times. My family never goes during the really busy times. Higher prices then might drive down the crowds a bit and encourage people to go during the less crowded periods and give everything a better balance.

This is supply and demand and using the pricing to control the crowd levels.

 

[GoofGoof]

My goodness!

What a sad way to go through life, griping about someone "gauging".

Do you say this when you walk by a movie theater? Ever notice that the matinee is less expensive than the evening show and that a Tuesday night ticket is less expensive than a Saturday night? Same is true for Broadway shows...and as noted above, in the hotel world too.

Restaurants are also cheaper during the day than at night.

Do you accuse all of those businesses of "gauging" during their busiest times?

Sad.

Or at the local watering hole. I lived on $2 pitchers on Tuesday nights back in the day.

 

[flynnibus]

Or at the local watering hole. I lived on $2 pitchers on Tuesday nights back in the day.

Screw that.. we had .25 pitchers on Monday night at one bar.. and 50c long necks at the other. Gotta love college towns