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

[Smiley/OCD]

Compete?

You mean like people are going "Well Marriott is charging $20 to park. I don't know, that seems like a better option than Disney where it's free... Oh wait, they're charging at Disney now too! Let's see... Well, at Art of Animation, it's only $15 so I'm still thinking Marriott is where it's at.

... but if we stay at Coronado Springs, It'll also be $20.

... Wait, I know, Grand Floridian is charging $25 to park - that's it! That's where we're staying!"

Yeah right.

If Disney felt the need to "compete" they'd have daily housekeeping.

My wife and I have had this discussion several times…if we’re spending the $$ to fly down for a week, if we have to pay more to stay on property NOT to have to rely on either driving to the parks or using the hotel shuttle when THEY run it, that’s fine…same with cooking in the room…we want to to be served…we can cook at home. If that means it’ll be another year before we go, oh well…does it suck? Absolutely…Does that mean it might be 3 years between trips instead of two? Probably…but you’re paying for convenience. At the Jersey shore, renting one block from the beach costs more than over the bridge. If you’re willing to forgo the convenience, fine, but not us.

 

[MrPromey]

My wife and I have had this discussion several times…if we’re spending the $$ to fly down for a week, if we have to pay more to stay on property NOT to have to rely on either driving to the parks or using the hotel shuttle when THEY run it, that’s fine…same with cooking in the room…we wan to to be served…we can cook at home. If that means it’ll be another year before we go, oh well…does it suck? Absolutely…Does that mean it might be 3 years between trips instead of two? Probably…but you’re paying for convenience. At the Jersey shore, renting one block from the beach costs more than over the bridge. If you’re willing to forgo the convenience, fine, but not us.

Not sure if you meant to reply to me or not. I was responding to someone suggesting that Disney charging for parking is somehow a competitive response to others who are also charging for parking.

Like usually, when competing for business, you don't do so by seeing other companies do something that is consumer-hostile and then respond by also doing that same thing that would turn customers off as a way of "competing".

You do it because you feel like you can get away with it.

 

[csmat99]

“Inevitable result of progress”?

Inevitable result of greed.

I don't think he understands the definition of progress unless his definition of progress is succeeding in taking every last dollar out of peoples pockets for less services and perks.

 

[Lilofan]

No but I know public records and he never ran Disney.

I'd say nice try back but I'm half convinced you started drinking a little early for the holiday weekend because you're making less sense than usual.

I thought you were with your wild bananas kick.

 

[Lilofan]

I don't think he understands the definition of progress unless his definition of progress is succeeding in taking every last dollar out of peoples pockets for less services and perks.

And it’s working

 

[MrPromey]

I don't think he understands the definition of progress unless his definition of progress is succeeding in taking every last dollar out of peoples pockets for less services and perks.

Funny, there's an attraction that explains that pretty well...

Someone needs to strap him to a seat in the Carousel of Progress with a catheter for 24 hours and maybe he'll learn.

... It might also prompt them to do something about the odd smell in that attraction, too, although with our luck, after he hears about the "rat race" from it, he'll start trying to find ways to see if they can slap ESPN branded gambling on that.

 

[MrPromey]

I thought you were with your wild bananas kick.

Ah no - that's sarcasm.

I've been responding to someone making no sense and reaching for things completely outside of the scope of what they're responding to by doing the same to a (slightly) more absurd level.

Jokes are never funny when you have to explain them to someone.

 

[Lilofan]

Someone needs to strap him to a seat in the Carousel of Progress with a catheter for 24 hours and maybe he'll learn.

... It might also prompt them to do something about the odd smell in that attraction, too.

All you need to do is get a wiff of the smell in the dining room of DHS Sci Fi.

 

[MrPromey]

Free local , nationwide and worldwide calls ( if you could actually make a connection ) immediately after 9/11 attacks was given to the resort guests stranded at WDW. It was a nice gesture by Disney.

Yes - comes in handy when everyone in your party's cell phones are dead from checking Genie+ times all day!

 

[ladybat2]

Your wrong…. Go across from disney springs area to the palm parkway. A lot of free parking over there. There’s Also plenty of free parking all over I drive.

Yeah paying for parking doesn’t make something fancy…. It doesn’t add luxury.

EXACTLY! Of all the insane greedy policies I've seen hotels ESPECIALLY Disney ones put in place these last few years its charging people to park their cars at the hotels they are staying at! I wonder how long it will be before shopping centers and malls start doing that?

 

[ladybat2]

Funny, there's an attraction that explains that pretty well...

Someone needs to strap him to a seat in the Carousel of Progress with a catheter for 24 hours and maybe he'll learn.

... It might also prompt them to do something about the odd smell in that attraction, too, although with our luck, after he hears about the "rat race" from it, he'll start trying to find ways to see if they can slap ESPN branded gambling on that.

Mold. Its very sad. I love that old attraction. One of the few creations of Walt himself left. They are letting mold eat it away. Not to mention how unhealthy it is for us to be breathing it while we are on it. That attraction needs to be preserved and kept up forever.

 

[Andrew C]

Compete?

You mean like people are going "Well Marriott is charging $20 to park. I don't know, that seems like a better option than Disney where it's free... Oh wait, they're charging at Disney now too! Let's see... Well, at Art of Animation, it's only $15 so I'm still thinking Marriott is where it's at.

... but if we stay at Coronado Springs, It'll also be $20.

... Wait, I know, Grand Floridian is charging $25 to park - that's it! That's where we're staying!"

Yeah right.

If Disney felt the need to "compete" they'd have daily housekeeping.

Yes. Compete. It’s not complicated if your view isn’t so narrow.

Charging for parking in this market for their specific hotels isn’t going to negatively impact their occupancy nor their market share. So there really isn’t any disadvantage for them doing so. It’s why their competition does it. But if they don’t they are just leaving revenue on the table that their competitors are capturing from their guests. Despite what people think, there is only so much they can do with their room rates. This is true even for Disney. They can’t just “add it to the room rate” as some suggest.

 

[HauntedPirate]

Yes. Compete. It’s not complicated if your view isn’t so narrow.

Charging for parking in this market for their specific hotels isn’t going to negatively impact their occupancy nor their market share. So there really isn’t any disadvantage for them doing so. It’s why their competition does it. But if they don’t they are just leaving revenue on the table that their competitors are capturing from their guests. Despite what people think, there is only so much they can do with their room rates. This is true even for Disney. They can’t just “add it to the room rate” as some suggest.

I thought their competitors charged for parking because they don't own 40+ square miles of land that they can use to slap down a parking lot or two if they wanted.

Their competitors also aren't charging $800/night for a $200/night room. Of course, they also don't have a bald crap peddler in charge of the company demanding higher and higher profit margins every quarter.

The real question is: How much revenue is Disney actually getting from charging for parking? I'd love to know, as I've heard stories from several people (non-DVC at non-DVC resorts) who parked for the length of their stay and were never charged.

 

[Andrew C]

I thought their competitors charged for parking because they don't own 40+ square miles of land that they can use to slap down a parking lot or two if they wanted.

Nope.

Their competitors also aren't charging $800/night for a $200/night room.

They would if they could.

How much revenue is Disney actually getting from charging for parking?

If they are consistent with their operations around this, a lot...

 

[MrPromey]

Yes. Compete. It’s not complicated if your view isn’t so narrow.

Charging for parking in this market for their specific hotels isn’t going to negatively impact their occupancy nor their market share. So there really isn’t any disadvantage for them doing so. It’s why their competition does it. But if they don’t they are just leaving revenue on the table that their competitors are capturing from their guests. Despite what people think, there is only so much they can do with their room rates. This is true even for Disney. They can’t just “add it to the room rate” as some suggest.

So when you say compete, you're talking about a game of who can get the most money out of a single customer?

Gotcha.

I mistakenly assumed you were talking about competing for a customer's business... Like when one business offers a perk to get customers to choose them over others because there are a limited pool of customers and if the Hilton gets one, that's one Disney didn't get.

What you're saying makes sense, too, I guess, in a "who dies with the most marbles" sort of way...

But this whole "they can't just add it to the room rate" thing blows my mind. Add what? The cost of asphalt? The pay for that guy at the front gate who asks if you have a reservation? Parking lot lights? What exactly do they need to "add to the room rate?" that suddenly became a new or much greater expense for them in the last few years, so much so that they thought they'd lose business if they were forced to raise prices to cover?

What's this thing they need to add to the room rate but couldn't? Is it they couldn't add a Bob's Bonus surcharge so they decided parking would be what covers part of that cost?

It's a money grab when a Hilton does it with exceptions* and its still a money grab when Disney does it while charging twice as much for a room that often isn't as nice.

What they apparently can't add to the room rate is the desire to gouge their customers as much as possible.

I guess $15-$30 a night (depending on which level of resort) for wifi is right around the corner, too and yes, I understand you and Lilofan will be thrilled with that or agree with Josh that it's "progress" or being "competitive" and call the rest of us "narrow" for disagreeing there, too.



*As far as I'm aware, the charge for parking originally started in big cities where the hotels didn't have space for their own parking lots or garages and were themselves, paying for the usage of another company's garage which would actually justify it since the cost structure for that was largely out of their control to begin with back before someone realized they could start charging it, like they were paying a daily feel themselves, even when they weren't.

 

[Andrew C]

So when you say compete, you're talking about a game of who can get the most money out of a single customer?

You can word it like that sure. It is for sure about bringing in additional revenue that cannot otherwise be captured through room rate.

But this whole "they can't just add it to the room rate" thing blows my mind. Add what? The cost of asphalt? The pay for that guy at the front gate who asks if you have a reservation? Parking lot lights? What exactly do they need to "add to the room rate?".

Hotels can only push room rates so far before potential guests will push back. So they find other ways to increase revenue. Pretty simple.

It's a money grab when a Hilton does it and its still a money grab when Disney does it while charging twice as much for a room that often isn't as nice.

Do you think Bob is pocketing all the money or something? If a hotel (disney or not) is able to bring in additional revenue compared to previous years (whether is through parking or something entirely different), this could lead to additional opportunities when budget season rolls around. They may be able to fund initiatives that were otherwise left off the table. Maybe benefit employees....

I guess $15-$30 a night (depending on which level of resort) for wifi is right around the corner

Guest expectations are moving towards free wifi. Which is really a different direction than parking fees.

I understand you and Lilofan will be thrilled with that

As a customer, I am not thrilled with additional fees. The opposite in fact. I just understand why Disney went with parking fees....Not much pushback from guests generally and its a new revenue stream.

 

[John park hopper]

Bob pulled in 32mil for 2021 I don't think he needs the parking fee probably considers it chump change

 

[MrPromey]

You can word it like that sure. It is for sure about bringing in additional revenue that cannot otherwise be captured through room rate.

Hotels can only push room rates so far before potential guests will push back. So they find other ways to increase revenue. Pretty simple.

Do you think Bob is pocketing all the money or something? If a hotel (disney or not) is able to bring in additional revenue compared to previous years (whether is through parking or something entirely different), this could lead to additional opportunities when budget season rolls around. They may be able to fund initiatives that were otherwise left off the table. Maybe benefit employees....

Guest expectations are moving towards free wifi. Which is really a different direction than parking fees.

So basically we're on the same page - they're doing it because they can.

You just chose to use wording that makes it sound like it's a good thing or something they need to do and I use wording that suggests it's a bad thing (for guests) and something they absolutely do not need to do.

As for where the money goes, I say "Bob's Bonus Surcharge" as a joke but as I mentioned earlier in this thread, I don't get who is benefiting from all of these kinds of changes.

The guests aren't because quality is going down and prices are going up and they're just as crowded as ever.

The shareholders aren't because we're not seeing dividends and the stock is the lowest it's been in years. As a reminder, a little over a year ago in the middle of a raging pandemic, it was at almost $200 a share and today it's $111.20.

Maybe you're right, though. Maybe we're about to find out with this D23 where these kinds of changes are going to go towards new improvements on the horizon for guests at the resorts or in the parks or they're about to announce a slew of benefits or wage increases through their Florida operation where this money is coming from that will require everyone else in the area to step up if they want to compete for those employees.

As a customer, I am not thrilled with additional fees. The opposite in fact. I just understand why Disney went with parking fees....Not much pushback from guests generally and its a new revenue stream.

Interesting, you left off the second half of my sentence when you responded there: "...or agree with Josh that it's "progress" or being "competitive" and call the rest of us "narrow" for disagreeing there, too."

Am I to assume that means it was only the first half of the statement I got wrong?

 

[MissingDisney]

EXACTLY! Of all the insane greedy policies I've seen hotels ESPECIALLY Disney ones put in place these last few years its charging people to park their cars at the hotels they are staying at! I wonder how long it will be before shopping centers and malls start doing that?

Newsflash-many in metro areas already do.

 

[MrPromey]

Newsflash-many in metro areas already do.

I don't think that's much of a news flash to most people here but I guess it never hurts to cover the bases.