This is the new norm for Disney. The game isn't necessarily making more money (although they do).......it's making more profit. They achieve this several ways.
Charging for something that was not previously a cost consideration for us...i.e. parking fees, soon to be resort fees, and probably a few other "magical" surprises they have in store.
I think the brilliance (which deserves condemnation) in their strategy is that they have all of us talking about what is visible......Ticket Increases, Parking Fees and everything else that becomes publicized. Yes. They do take a hit for this. But apparently not as substantial of a hit to impact profitability.
While they do this "the other hand" is really sticking it to us. And what that "hand" is doing is a combination of lesser type increases combined with a reduction of quality/quantity/service. To me this is the real issue. It's kinda like that bag of Doritos that when you popped it open 10 years ago was 90% full. It went down to 3/4 full.....and now a days I've seen bags that are about 40% air and 60% Doritos. But the lack of quantity doesn't stop the price from gradually increasing.
Case in point (I'll stick to beer - cause I like beer). About a year ago you could get a 16oz beer at EPCOT for about $8. They cut down the size to 12oz and temporarily reduced the price by about a buck fifty.......Fast Forward a year.......12oz beer = $8 (and will keep rising).
This is their strategy. Look, even burgers are up to about $17 (factoring in a soda and tax)......the quality of the burger (which equates to Disney's cost of the burger) is down.
Even the quality of a T-Shirt is down. I remember about 2 decades ago I had Mickey shirt that lasted about 5-7 years. You buy a T-shirt today (for $25-$30) and the pattern is pretty much worn after 2 years of washing while the general quality of the shirt doesn't hold up. They are slightly better than the 3 for $20 shirts you can get anywhere on Irlo Bronson.
It's because of these things - I find that Disney is forcing me off property more and more for meals, shopping, other experiences, and activities.
I don't mind paying a bit of a premium to experience these things "on-property" -- but to pay a premium for a lesser experience/quality of product?............at least that's where my mindset is heading these days.
In my opinion,
This is exactly what Disney is doing.
Now, the primary purpose of EVERY Disney effort is to increase the stock profits. Disney is no longer about animation, films, parks, resorts, sports channels, TV networks, etc., etc. It's about the STOCK PRICE. All of these other things are tools that enlarge the stock profit. Disney cares not at all about the quality of the product. They care only if the public will buy it and these days Disney is continually pushing the edge on how low of a quality experience they can get the public to buy at the highest possible price point. THIS is the new Disney "Imagineering".
People have this romantic notion about Disney. Their minds exist in the Disney of the past where quality and innovation were the primary focus. Now, current management is trading on the brand, and running it into the ground while mining all the profits they can to increase the stock price.
Don't believe me? Watch what they do and ignore what they say.
So for example, let's take this
"We must increase costs associated with a Disney vacation because the parks are too crowded" Bull crap.
First of all...
if the parks are "Too Crowded" where are all the phased closings that would be necessary? We should be seeing them on a regular basis, correct?? The fact is that the parks are not too crowded. It's more like people don't like it when a lot of OTHER guests are at the parks besides themselves. So, playing to people's sense of entitlement, (It's OK if
I'm at the park but I don't like when others are), Iger is using this false premise to jack up prices to unreasonable levels.
At the same time management is reducing offerings and park hours, replacing access to the parks with up-sell opportunities and, at times, cutting staff so that the attractions are not operating at full capacity. This results in long lines for guests who paid full price for their tickets. This offers a convenient scapegoat to support the false premise that "The parks are too crowded". That plays into the hands of the people that think this but aren't paying attention to what is really going on. So the net effect of having fewer working and thus not being paid, with the same people in the park, generates a higher profit for Disney.
Actually it's Disney management's DREAM that the parks
would be too crowded. More people in the park means more people spending MONEY on food and merchandise and that means MORE PROFITS TO BOOST THE STOCK EARNINGS.
Disney is hedging their bets that the crowds will come anyway and that they will pay $7 PLUS dollars for a pretzel, which has an enormous profit margin, or pay upwards of $17 plus dollars for a crappy, low quality hamburger (Add $2 to the price for the nonexistent "American Kobe Beef" marketing upsell). Remember, it goes against Disney's best intere$t$ if the parks are not as full as they can be. Since that's the case AND that it's a safe bet that people will come, WHY NOT RAISE PRICES AS HIGH AS THEY CAN MANAGE AND KEEP RAISING THEM.
If the parks are too crowded then why is Disney making a concerted effort to build more resorts and increase hotel capacity? No, the parks are not too crowded. Too crowded would mean MORE people would want to be in the park than there is CAPACITY to allow them in. Disney is hoping that you only consider crowded as meaning what YOU feel comfortable with.
If you were a business person, wouldn't you see crowds as an opportunity to grow your business?
Disney just sees it as a lazy opportunity to rip people off by charging more and offering LESS. It's literally the laziest thing that they can do. Bob Iger is counting on the "sheeple" not to think this one through.
Now we get to the argument that Disney is building new lands!!! Yes, BUT really, they are refurbishing existing lands while making cuts in entertainment and park hours, and replacing park hours with up-sell events. If you've ever tried to go to the MK from September through to December, some weeks have 3 or 4 party nights restricting your access. And let's not forget about those disappearing Extra Magic Hours (replaced with PAID EMH).
So you can say that Disney is giving you MORE but with all the cuts guests are experiencing in aggregate I'd say that is a minus for the guest. Remember, it costs money to add capacity so Disney provides the illusion that they are offering additions while hoping no one does the math and sees instead that they are refurbishments. This does nothing to increase capacity to alleviate the overcrowding.
Now let's talk about what Epcot has become. It's now a perpetual, up charge, food, and wine event. Remember when Epcot was a THEME park (Probably not). Now the focus of this park is getting you to spend money on food and wine.
Just like Disney Springs is a giant mall, Epcot has devolved into a giant, over priced, poor quality food court, serving tiny portions of alcohol and reheated, sometimes previously frozen premade food at outsized price levels. Every once in a great while we get something like a reskinned ride (Soarin, Frozen and Guardians). Ratatouille is the only NEW ride. But don't be distracted. Epcot's primary purpose now is as a food court designed to get you to pay high prices for small portioned, low quality offerings. This focus very efficiently feeds the stock profit priority.
If you've ever stayed in a Disney resort you know you're being charged way more than the facilities or service warrant. The only argument supporting those obnoxious price levels is that the resorts are close to the parks and people want to be in the Disney bubble. As the room prices go ever higher, guests are experiencing a decline in the quality and frequency of housekeeping and resort upkeep. The time between desperately needed refurbishments has increased, which means guests are paying obscene prices for rooms that are not being properly cleaned and maintained. Disney defenders will say it's worth it because I'm IN THE DISNEY BUBBLE and Disney management is counting on the 'sheeple' to continue to pay premium prices for subpar rooms.
The next time you're walking through the hallways of that deluxe Disney resort, the one that you paid $400 PLUS a night for, and you pass that room service tray that's been laying in the hallway for 3 days, ask yourself if that would be acceptable at literally any other resort that you paid that much money to stay at. You'd be crazy if you said yes, so why are you saying it's ok for a Disney resort to do this. In fact, ask yourself why it's ok when Disney expects YOU to manage THEIR problems during YOUR vacation. If you've been following along, you are reading an increasing number of reports of guests that must spend valuable vacation time herding Disney management into taking care of problems that they are experiencing.
So now we will get to the thought that Disney resort rates are worth it because Disney transports me! Yes, Disney is transporting you to your resort and to the parks, but it's not to Disney's advantage to have everyone use their own transportation to the parks and resorts. That would clog up the already overburdened road ways and allow guests to spend less time (and thus less money) on Disney property. So you could say that it's to the guest's advantage that Disney provides transportation, but you could also say that it's to Disney's advantage to limit the guest's ability to leave property and spend money elsewhere, ESPECIALLY in attraction saturated Orlando. So I'll call that one a wash as it benefits both the guest AND Disney.
So we see that Disney management is counting on guest ignorance to continue to allow them to rip you off with overcharging you for your vacation. This is in direct comparison with other comparable vacation experiences, but Disney is counting on the sheeple not to think to hard on that one. Yes, they will continue to promote the Disney Vacation experience with marketing that plays on your sense of nostalgia, all while hoping that you don't pay attention to the cost versus the experience you are getting (Higher and higher prices with reductions in quality, offerings, and hours).
The point of my post is that I am amazed that not only are people ok with all Disney is doing to degrade a Disney vacation, they defend what Disney is doing, all the while not realizing that THEY must pay the price for this unfortunate focus. I'm thinking that they just can't get past their nostalgia for all that a Disney Parks vacation used to be and they refuse to see what it is becoming. Until enough people catch on and start to vote with their wallets, Disney is going to rip people off for as much money as they can.
It’s a bummer that there is such a concerted effort by Disney to jack up the prices and reduce the quality of a Disney vacation, all in the name of stock profits. I think a lot of people long for the days when Disney was all about quality and innovation. I’m fairly certain that those days are gone and people just haven’t caught on.
~NM