Josh D'Amaro comments on rising prices and "additional" or removed services: "An inevitable result of progress"

[Sirwalterraleigh]

Is it really disputed that attendance is down? Or at least not yet at 2019 levels?

If attendance is down (which I think is true) and wait times are up, then something else is going on with individual attraction demand.

Wait times don't discount the idea that attendance is down though.

If you believe “the horses mouth” around here…this is incorrect

Disney domestic theme park attendance now at 2019 levels with per capita spending up 40 percent

Disney CFO Christine McCarthy comments on attendance, revenue, hotel occupancy and international visitors.

www.wdwmagic.com

 

[Lilofan]

Southwest has increased its fees by 300% in 10 years…

So that actually strengthens the argument of why Disney SHOULDN’T charge for parking spots, lifeguards and wifi

“Premium” should include something. And the ancillary “mandatory” fees are way higher too.

I’m shocked parking at the Disney garages at Disney Springs is still free. Who knows it could just be a matter of time. I believe there is a parking charge to park at Citywalk at Uni Orlando.

 

[Sirwalterraleigh]

I’m shocked parking at the Disney garages at Disney Springs is still free. Who knows it could just be a matter of time. I believe there is a parking charge to park at Citywalk at Uni Orlando.

That just proves that their position isn’t as “strong” as they claim and we often assume.

The idea that 90% of people at wdw “I like it…I love it…I want some more of it…” is really kinda upside down. Most everyday people are just doing “the thing”…they’re not desperately trying to get there every day.

Charge $20 at this garages and attendance would be “light”…
And the restaurants most likely have no charge in their tenant agreements. They’d be hugely stupid if they didn’t.

 

[erasure fan1]

I’m shocked parking at the Disney garages at Disney Springs is still free. Who knows it could just be a matter of time. I believe there is a parking charge to park at Citywalk at UO.

Realistically, unless the bottom falls out on the parks, this will be a continuing trend. Add $15 a night to pool hop. $20 a night for bus/boat/monorail access, $10 for toiletries, $2 extra for refills at table service... And all will be spun as guest enhancement as you can only pay for what you want.

 

[bhg469]

I’m shocked parking at the Disney garages at Disney Springs is still free. Who knows it could just be a matter of time. I believe there is a parking charge to park at Citywalk at Uni Orlando.

To my knowledge Disney springs cannot charge for the garages because of public money that was used to build them?? At least that is the version of the story I got before.

 

[Tha Realest]

Another "used to be free, now it costs money" (and it's a very minor thing) are the s'mores kits. Used to be free. Now, only the marsh

Realistically, unless the bottom falls out on the parks, this will be a continuing trend. Add $15 a night to pool hop. $20 a night for bus/boat/monorail access, $10 for toiletries, $2 extra for refills at table service... And all will be spun as guest enhancement as you can only pay for what you want.

I personally think charging for on-site transportation is being considered.

 

[Andrew C]

I personally think charging for on-site transportation is being considered.

 

[Lilofan]

Realistically, unless the bottom falls out on the parks, this will be a continuing trend. Add $15 a night to pool hop. $20 a night for bus/boat/monorail access, $10 for toiletries, $2 extra for refills at table service... And all will be spun as guest enhancement as you can only pay for what you want.

When I visited NY and NJ , some dining places is pay for soda , no refills. Want more ? buy another soda.

 

[bhg469]

Another "used to be free, now it costs money" (and it's a very minor thing) are the s'mores kits. Used to be free. Now, only the marsh

I personally think charging for on-site transportation is being considered.

Just gotta integrate that magic band to the buses!

 

[el_super]

You just described why Disney resorts were always so much more expensive than everyone else. It was always billed by Disney as sure we are more expensive, but look at all that you get. That is why the "it's not nickel and diming" argument doesn't hold up. It is obviously their right to do what they want. I'm just finding it hard to understand why people are defending it. It's a blatant cash grab, that's it. It does NOTHING for the customer experience but lower it.

Of course it helps the customer experience. An across-the-board price increase would have negatively impacted every single guest of the resort. Disney probably could have raised hotel rates to make up the revenue and still offered "free" parking, but they would have lost some bookings in the process.

So charging for parking becomes an optional price increase for only those guests that choose to use that service. Being more targeted limits the impact to the wider audience of guests and shields (most likely the majority) from a price increase.

Continually raising rates indiscriminately would have had a greater negative impact on the guest experience.

Ok…so this is a binary choice:
1. Disney is a hotelier like all the others and all customary fees and services are warranted. Supply and demand and nothing more…blah blah blah
2. They are “special” and the approximately $200 per night each room is charged over market (since the 90’s) everyday creates a unique situation with expectations.

Which is it? There’s no crossover.

It's always been #1 and nothing more. Supply and demand drives their business. Demand is just exceptionally high.

The broader issue here, especially with the armchair analysts is thinking that their needs and desires transfer to the audience as a whole. That isn't true.

Posters here think that a Disney hotel isn't worth it because the rate is higher or because the parking isn't free. Or because X service was cut back or things just aren't as nice as they used to be.

But the general public keeps buying into it because of OTHER reasons. They like the convenience of only having to deal with Disney rather than having multiple bookings (buying into a package). They like the convenience of getting free transportation and not having to drive anywhere. They like the Disney atmosphere. Maybe they just feel safer at Disney than they would out there on 535.

This is what Disney fans try to do…just pick and choose amateur business analysis because the real goal is just to defend Disney.

It's not about defending Disney.... as much as it is just stating the reality of what's going on.

The hotels aren't empty and are booked pretty well up for the next year so obviously there is value there that people are stilling finding... even after YEARS of this supposed drop in quality. It's just value that some people don't want to recognize or acknowledge... if they even understand it at all.

 

[el_super]

If you believe “the horses mouth” around here…this is incorrect

It's in the article (bold mine):

Our continued focus on improving the guest experience through the use of our reservation systems to purposefully manage capacity versus simply increasing volume has the added benefit of improving yield and optimizing overall economics. So, even while the average daily attendance at our domestic parks across the first recordings of this fiscal year was slightly below 2019, we have delivered significantly higher revenue and operating income over that same time period. This approach also provides flexibility. With levels we can adjust if demand were to shift.​

 

[Captain Neo]

Man I want to say what I really feel but that langauage is prohibited on this site.

I’ll just say this and we all know it Disney isn’t even hiding the fact they just want to price gouge so the leadership team can get their executive bonuses while the actual employees suffer with poor work conditions and low wages, the parks no longer have any theming or immersion, and the guest experience plummets even further.

This started in the late 90s slowly slowly but now they are totally open about it. It’s literally a game to see how far they can Jack up prices and remove stuff until the majority of suckers stop going. They don’t care if it permanently destroys the company because they walk with huge golden parachutes. They also don’t care if the company ends up being sold for parts or to China. It’s honestly at the point that these executives are a threat and need to be voted out en mass at the next shareholder meeting

 

[el_super]

I personally think charging for on-site transportation is being considered.

Personally I have almost no use for the Monorail and find it to be superfluous. Generally I wouldn't want them to remove it, and maybe every few years I will end up riding it somewhere (or just around the lagoon for fun), but it does seem odd to think that my admission/hotel/parking fee is paying for something that I don't use.

It really just feels like going back to the old Walt/Free Market model of charging for everything and letting things just fail on their own.

 

[Lilofan]

Man I want to say what I really feel but that langauage is prohibited on this site.

I’ll just say this and we all know it Disney isn’t even hiding the fact they just want to price gouge so the leadership team can get their executive bonuses while the actual employees suffer with poor work conditions and low wages, the parks no longer have any theming or immersion, and the guest experience plummets even further.

This started in the late 90s slowly slowly but now they are totally open about it. It’s literally a game to see how far they can Jack up prices and remove stuff until the majority of suckers stop going. They don’t care if it permanently destroys the company because they walk with huge golden parachutes. They also don’t care if the company ends up being sold for parts or to China. It’s honestly at the point that these executives are a threat and need to be voted out en mass at the next shareholder meeting

Grass isn’t always greener on the other side. Cast members who clean hotel rooms start at $17 per hour. Planet Fitness gym staff start at $10 per hour. I’m confused on poor work conditions. At WDW resorts I can’t even get staff to clean our room everyday like it was in the past.

 

[hopemax]

It was a joke.

Also, SW airlines specifically advertises no bag fees. They brag about it. So yeah...people would be pretty upset if they started charging.

Finally, outside of theming and convenience to the parks, I have never held the Disney hotels in that high regard. They have always been "just nice" to me if you put those two things aside. It seems people think they were so amazing at one time and so above the rest. Maybe 30 years ago they were above the competition, or what was competition? But take away the theming and what do you have? An average resort, if that.

And my point is that "industry standard" isn't the end all and be all, it has been made out to be upthread. Southwest isn't the only business that has deviated from industry standard in some way either. People are acting like businesses can never deviate, and that isn't true.

 

[Captain Neo]

Grass isn’t always greener on the other side. Cast members who clean hotel rooms start at $17 per hour. Planet Fitness gym staff start at $10 per hour

Not sure what your point is and just because planet fitness is doing something wrong that means every company should follow suit? Wages need to keep up with inflation and they haven’t done that in 2 decades.

 

[Lilofan]

Not sure what your point is and just because planet fitness is doing something wrong that means every company should follow suit? Wages need to keep up with inflation and they haven’t done that in 2 decades.

Just saying when you said low wages.

 

[UNCgolf]

While it's certainly possible they could charge for transportation, I'm not sure it's feasible.

It's not the same as a resort parking fee where they're essentially just collecting additional money -- they'd incur significant additional and ongoing costs to charge for transportation. It would require an increase in staffing (and likely additional machinery that would need regular upkeep to stay in working order), and it would slow down the whole system, making it less efficient than it is now... which would also make it harder to get people to pay for it.

Beyond that, Disney doesn't want everyone driving themselves to the parks. That would cause other headaches and would probably require expanding the parking lots.

 

[LSLS]

Of course it helps the customer experience. An across-the-board price increase would have negatively impacted every single guest of the resort. Disney probably could have raised hotel rates to make up the revenue and still offered "free" parking, but they would have lost some bookings in the process.

So charging for parking becomes an optional price increase for only those guests that choose to use that service. Being more targeted limits the impact to the wider audience of guests and shields (most likely the majority) from a price increase.

Continually raising rates indiscriminately would have had a greater negative impact on the guest experience.

I completely disagree. I bet a lot more people can tell you the cost of parking than can tell you the rack rate of a room. I think you are kidding yourself if you think people would significantly notice the rack rate increased $10. Everyone noticed when parking was added (after years of it being advertised as free). I can only speak for myself (and I won't begin to pretend my experience means the same for all), but I ACTIVELY avoid any place charging resort/parking fees if at all possible. And that includes going to places that do cost slightly more but include those things free. It's one of my top pet peeves in travel.

Also, let's not pretend those price increases didn't still happen.

 

[erasure fan1]

When I visited NY and NJ , some dining places is pay for soda , no refills. Want more ? buy another soda.

I've been to places like that as well. Guess where we don't go anymore?

So charging for parking becomes an optional price increase for only those guests that choose to use that service. Being more targeted limits the impact to the wider audience of guests and shields (most likely the majority) from a price increase.

Continually raising rates indiscriminately would have had a greater negative impact on the guest experience.

But the problem with that argument is they are doing both anyway. They have significantly raised room rates while adding parking and taking away magical express. So they could give a rats butt about the optics of it. They just do it because they can.