I'm speaking for us locals, and personal experiences who say "it's that much now, I'm not paying that". There would be a lot more pull. I've heard countless times from people around here/family members "I'd go if it were the same price as 5 years ago when we went".
You don't build a loyal customer base by simply lowering your price. If people are only there because its cheap - they will immediately flee when its no longer the cheapest.
People will pay for value. As long as you ensure there are enough potential customers for that space you are targeting, your job is to convert those customers - not 'expand the market by making the same thing cheaper'.
Doing so is only a short-term fix that doesn't bring you long term success. It starts a downward spiral.
If someone won't buy your product because it's 10% too expensive... they aren't going to be a reliable customer. 10% is nothing - people pay far greater differences simply based on 'brand preference'.
If $10 is breaking someone's decision to not visit WDW.. I would say 'let 'em go'. I'd be more focused on making that customer JUSTIFY spending that $10 more then I would be chasing what lesser amount that customer is willing to pay.
Pull your customers up.. don't chase them to the bottom. Because ultimately customers if they had their way would pay nothing. Then you need to find your revenue from other sources.
They aren't catering to the locals with the resort prices I can tell you that. Grant it, I'm a CM but I can get 50-60% off on rooms here at WDW, but the rates they offer to CM's there are practically rack rate for Grand Floridian here, I shudder to think what regular guests pay at their resorts.
DLR only has 'high end' (if you could call PPH that.. shudder) hotels and leaves the value and moderate market to the non-Disney hotels. They don't have a huge amount of capacity, so there is more contention for the scarce resource = easier to charge more.
Just curious as to the percent of people who pack rack rate on Disney vacations. We have received numerous pin codes this year...from room rate discounts to free dining good through the end of June. I couldn't tell you the last time we paid rack rate for any of our Disney vacations.
Because millions just call up and take the prices offered to them rather then shop around, or have flexibility in when they travel, etc. Think about it, if millions can show up and not know what is even offered in the parks, or basic services they offer like FP, how many do you think spend all the extra time to plan out the best discounts? They figure they want to goto WDW, this is when they can go, they book it.
The 'I never pay more then $200 for a deluxe' crowd always gloss over how much flexibility or compromise they work into their vacations to make such things happen.
