No more option for non-expiring tickets?

[Baldy]

Hello,
I'm not sure if this has been posted elsewhere, but a friend mentioned that the non-expiring option was no longer going to be offered. I looked it up on the Disney website and was unable to purchase or upgrade to non-expiring tickets. How long has this been the case? Any idea why?

 

[Animaniac93-98]

Just saw today you can still get a non-expiring ticket if you buy a package from Transat Holidays.

The option may be phone or in person only if you contact Disney directly.

 

[doctornick]

IIRC hasn't the non expiring option not been available for some time online? I think for the past year or so you could only get it in person or by talking on the phone to a Disney rep.

 

[SnarkyMonkey]

IIRC hasn't the non expiring option not been available for some time online? I think for the past year or so you could only get it in person or by talking on the phone to a Disney rep.

Yes. This is correct. And word on the street is when the prices next increase, this option will be eliminated completely.

 

[Baldy]

I had no idea. I have never used it before and was just starting to look into it.
Thanks

 

[Goofyernmost]

Yes. This is correct. And word on the street is when the prices next increase, this option will be eliminated completely.

Good then they just ended my desire to ever go there again. Nice move Disney. It's not like they don't charge sufficiently for that privilege. So they will give up a $700.00 purchase so that they can not make an extra $100.00 over 5 years. Gosh, those accountants are clever.

 

[networkpro]

From an accounting viewpoint I'm quite sure that its the liability on the books for unearned income that they are trying to do away with. IRS rules get changed every year and practices that were once allowed are put into disfavor or rendered illegal. According to the IRS currently a purchased unredeemed ticket is treated as a gift certificate for accounting purposes.

The sale of a ticket should be recorded with a debit to the asset account Cash and a credit to the liability account Tickets Outstanding. (Revenue is not recorded until merchandise or services are provided to the customer.)

When a customer presents the ticket for merchandise or for services, the liability account Tickets Outstanding will be reduced with a debit and a revenue account will be credited.

The numbers would be awful to look at.

 

[Goofyernmost]

From an accounting viewpoint I'm quite sure that its the liability on the books for unearned income that they are trying to do away with. IRS rules get changed every year and practices that were once allowed are put into disfavor or rendered illegal. According to the IRS currently a purchased unredeemed ticket is treated as a gift certificate for accounting purposes.

The sale of a ticket should be recorded with a debit to the asset account Cash and a credit to the liability account Tickets Outstanding. (Revenue is not recorded until merchandise or services are provided to the customer.)

When a customer presents the ticket for merchandise or for services, the liability account Tickets Outstanding will be reduced with a debit and a revenue account will be credited.

The numbers would be awful to look at.

Seems like that would apply to every single ticket that isn't sold at the Ticket booth in front of the parks. They all are unearned income until they are actually used, according to that situation. And how about payment for resort stays that must be done in advance (at least the deposit). I don't think it is that reason. It could be, but, it sounds more like them thinking that if it takes me 5 years to use my 10 day ticket, I will have missed at least 4 rate increases. Or how about someone buying a 7 day ticket and only using 6 days and then it expires, how would that last day be listed?

 

[networkpro]

Seems like that would apply to every single ticket that isn't sold at the Ticket booth in front of the parks.. I don't think it is that reason. It could be, but, it sounds more like them thinking that if it takes me 5 years to use my 10 day ticket, I will have missed at least 4 rate increases. Or how about someone buying a 7 day ticket and only using 6 days and then it expires, how would that last day be listed?

If there are no expiration dates it couldnt be booked to a month or year. With expiration you dont have a large outstanding balance of unbooked revenue sitting out there for years. Its the same thing that companies constantly battle with accrued vacation balances that get turned into you can roll over x number of days, but the rest is use or lose.

 

[Goofyernmost]

If there are no expiration dates it couldnt be booked to a month or year. With expiration you dont have a large outstanding balance of unbooked revenue sitting out there for years. Its the same thing that companies constantly battle with accrued vacation balances that get turned into you can roll over x number of days, but the rest is use or lose.

I suppose you could be correct. However, I am sticking with the greed factor other then the just following the rules approach. Disney has a pretty lengthy history of that type of stuff.

 

[SnarkyMonkey]

I suppose you could be correct. However, I am sticking with the greed factor other then the just following the rules approach. Disney has a pretty lengthy history of that type of stuff.

Of course they are getting rid of the no expiration option so they can make more money in the long run and can stop dealing with the accounting nightmare. You call it greed. Others call it smart business practice. It's up to you if this is going to be the thing that makes you stop going to Disney or not. But that doesn't make the change "wrong" or "evil" or "bad".

 

[networkpro]

Of course they are getting rid of the no expiration option so they can make more money in the long run and can stop dealing with the accounting nightmare. You call it greed. Others call it smart business practice. It's up to you if this is going to be the thing that makes you stop going to Disney or not. But that doesn't make the change "wrong" or "evil" or "bad".

Dont forget that theres this little organization which mandates specific accounting practices called the IRS


Section starting on page 277 Taxable year of inclusion could have forced their hands.
http://www.irs.gov/pub/irs-drop/rp-15-14.pdf

 

[Brian Noble]

From an accounting viewpoint I'm quite sure that its the liability on the books for unearned income that they are trying to do away with.

I suspect it is simpler than that. Given the current pricing between expiring tickets, no-expire tickets, and Annual Passes, NE tickets really only make sense for infrequent, short visits. Longer visits (4-5 park days per trip or more) are as cheap or cheaper with expiring tickets. Frequent trips are better served by Annual Passes.

Disney might simply not be interested in discounting infrequent, short visits. If Disney loses a few of those current guests, the powers that be might be okay with that.