News Massive Parks Revenue Increase ($4.1B) for 2019!

[Phroobar]

The higher you price a product the easier you make it for any competition to encroach your turf. It's a tough balance to maintain.

So far it is succeeding. The ripple effects will continue to ufold as a good portion of fans regularly have trips in mind or booked 1 to 2 years out. Backlash may slowly unfold. Will we choose a WDW vacation for 10k or do two 5k trips elsewhere? Disney is a superior experience but people may decide an experience 85% as good is more attractive when it's also 50% the cost.

Except DLR is a different animal from WDW. Most of the people there are day tripping locals and a lot of them have annual passes. They will come just to make their annual pass costs per visit go down. Disney makes it even harder by offering a payment plan to disguise the fact guests are spending thousands each year on quality that is deteriorating.

For the cost of Oogie Boogie's Halloweening thing, you can go to Knotts and Universal's halloween activities and not have to deal with lines for a candy trail.

 

[shambolicdefending]

There’s a growing segment of people that seem to have self soothed themselves into thinking the economy in the US is “recession proof”.

My observation is sort of the opposite. It seems like there's an endless supply of "experts" who can't stop talking about how the next recession is imminently upon us.

Of course, the reality is that economic cycles are what they are. Things will grow sometimes, and recede at others.

 

[shambolicdefending]

I’ll never get it. Why are we begging for them to keep charging more?

A lot of us have felt for a while that at least some Disneyland tickets/passes were significantly underpriced. Consistent, uncomfortable crowding is a possible indicator that the supply/demand balance is off, and prices should adjust accordingly.

Typically it doesn't mean an improved experience. It just means a less experience for more money.

My thing is if they re going to increase prices then don’t cut staffing and entertainment at the same time.

This is what will get Disney in trouble, and eventually cause Universal/Knott's, etc. to erode its market share.

Raising prices is fine when you have a high-demand product. But, increasing prices while decreasing quality is not sustainable. The Disney suits are not idiots, however, and they know this. It's just that their philosophy of product improvement begins and ends with building new attractions that may or may not be well conceived.

SWGE may end up being an early indicator that the strategy is wearing out, and the resort needs to go back and focus on improving its fundamentals - not just building new stuff and waving it matador-like in the consumer's face.

 

[mickEblu]

A lot of us have felt for a while that at least some Disneyland tickets/passes were significantly underpriced. Consistent, uncomfortable crowding is a possible indicator that the supply/demand balance is off, and prices should adjust accordingly.


This is what will get Disney in trouble, and eventually cause Universal/Knott's, etc. to erode its market share.

Raising prices is fine when you have a high-demand product. But, increasing prices while decreasing quality is not sustainable. The Disney suits are not idiots, however, and they know this. It's just that their philosophy of product improvement begins and ends with building new attractions that may or may not be well conceived.

SWGE may end up being an early indicator that the strategy is wearing out, and the resort needs to go back and focus on improving its fundamentals - not just building new stuff and waving it matador-like in the consumer's face.

In regards to fundamentals, I think MMRR should be a step in the right direction.

 

[Lilofan]

I guess I don't understand the blind brand loyalty of the typical Disney fan. I have stock in Disney but I'm not going to jump up and down and cheering that they made x billions this year when I see the bigger picture of how they eroded the brand and fired a lot of people just so my stock when up a few points. I know it will all come crashing down very soon. I don't cheer for any corporation. It seems juvenile.

If you are willing to give away your shares then I'm a taker. Just builds up a better position in my diversified portfolio.

 

[Sirwalterraleigh]

If you are willing to give away your shares then I'm a taker. Just builds up a better position in my diversified portfolio.

Oh come now...are you trying to say you aren’t jonesing for Disney shares anyway, Warren Buffet?

 

[Sirwalterraleigh]

My observation is sort of the opposite. It seems like there's an endless supply of "experts" who can't stop talking about how the next recession is imminently upon us.

Of course, the reality is that economic cycles are what they are. Things will grow sometimes, and recede at others.

You know why they do what you say in paragraph 1?

It’s in Paragraph 2?

 

[shambolicdefending]

You know why they do what you say in paragraph 1?

It’s in Paragraph 2?

What's the old joke?

"The media have accurately predicted 13 of the last four recessions!"

 

[Sirwalterraleigh]

What's the old joke?

"The media have accurately predicted 13 of the last four recessions!"

 

[flynnibus]

Didn't anyone read the article?

This is about an analysts predictions for the company...

 

[Sirwalterraleigh]

Didn't anyone read the article?

This is about an analysts predictions for the company...

Reading...what’s that?

I made the mistake of assuming the original poster did. Rookie mistake.

So am I right to assume that it’s a “we’re all gonna be rich!” Like every financial publication forecast??

Makes sense.

 

[PiratesMansion]

Increasing prices while decreasing quality is not sustainable. The Disney suits are not idiots, however, and they know this.

Do they though?

And I say that as someone who otherwise agrees with your post.

 

[HauntedPirate]

This should have "projected" in the title.

After hearing about how attendance at DL was down for most of the summer, and they had to release discounts early for Florida, I have my doubts that PEP revenue will come in $4.1B higher than 2018. Someone should get that article archived for posterity when it doesn't.

 

[Darkbeer1]

Let us look at Cruises.

Not sure what a starting price is currently for Disney.

But here in SoCal, Princess just advertised fares as low as $79 per person, per day. That includes all your meals, including full service, non-alcoholic drinks, entertainment and a Hotel room. Compare that to 3-4 days at the DLR and a 2.5 star hotel room with a basic breakfast. Maybe $200 a night, plus meals. And yes, with fees, the cruise ship is around $100. But still half the price.

 

[VJ]

No wonder Iger said he wasn't concerned about SWGE's performance. Their strategy of increased ticket pricing may have lowered attendance this summer, but apparently it's pushing visitor spending through the roof.

It's almost as if price increases mean people spend more... hmm. Interesting concept.

 

[Eeyorenot74]

Own some DIS but don't think shareholders should be the overriding concern (looking at you PG&E). Employees, customers, and long term planning should be factors.