Poll: Is Genie+ a financially sound business move for Disney?

[LovePop]

Genie+ is, without doubt, and additional source of revenue for Disney. It will also reduce the number of people using the fastpass system (not everyone will be willing to pay for it), making the fastpass experience better (than free) for those who do pay.

The drawback is that Genie+ can potentially:

1. Reduce park attendance by angering or alienating fans, who might reduce or eliminate their Disney vacations.
2. Dampen park atmosphere by pitching 2 obvious classes of guests against each other: the ones in standby and the ones in fastpass.
3. Increase complaints when the parks are empty, when people get fastpasses only to realize the wait time is insignificant anyway; or when the parks are so crowded that very few or no desired fastpasses are available to Genie+, so it is a waste to buy.
4. Guests obtain a desired fastpass, and then the ride breaks down at the fastpass time.

For me and my family, we are getting the Genie+. We are also staying at deluxe hotels during our next trip to enjoy all the extra magic hours. We'll pay for it by reducing our park visits from once a year to once every 3 or 4 years, so our overall Disney budget will be about the same. But practically speaking, I think Disney will lose money from having Genie+ paid fastpass system. It will be like the NBA Experience. In the end, Disney will go back to free fastpass (maybe with a paid option added), and free DME to win people back.

There is one complication: if Disney Parks going forward with paid fastpass do poorly, they can always blame the virus, and they might even be right. But overall, I predict that Genie+ will be a liability for Disney. I could be wrong, of course. What do you think?

 

[Kamikaze]

1) The number of people who will not go because there isn't fastpass or only paid FP is insignificant.
2) Theres always been that 'I wish it was me' when people are zooming past you in the FP line. We haven't had any class warfare to this point.
3) Theres never a time (COVID notwithstanding) when the parks are so dead that no one needs to use FP. People who know how to maximize park time? Absolutely. But they aren't the target of this system anyway. And they will still buy it because it makes their days even better. MaxPass is well tested at DLR, there aren't really times when no FP are available to use.
4) MaxPass generates an automatic open FP in these circumstances, I'm willing to bet money that Genie+ will do the same.

 

[jpinkc]

Yes it will make them Money and will they spend it on WDW or DL NO!! It will go to Shanghai or DLP or Hong Kong. They are trying to use the American parks to Bankroll everyplace else and not keep up with our parks here. Walt said the Parks would never be finished, he said they would expand and change. Well you couldnt prove that to me with what has been done to the Crown Jewel DL and the Biggest Park WDW!!

 

["El Gran Magnifico"]

Too early to tell. I think most will eventually adapt just as they did with FP, FP+, Resort Parking Fees, Deposits for ADR's, Ticket Increases, and F&B Increases - and they will make money from it.

I will say one thing. Disney sure seems determined to take the "fun" out of a vacation. People want to go on vacation to get away from stress. Not run towards it.

Sometime in the near future - once the money grab has been completed, some yet to be hired Disney Exec (who is probably 4 or 5 years old right now) is going to say "This is crazy" and is going to look to "simplify" the vacation process. Hopefully, I'll still be around to see it.

 

[TheDuke]

Well you'd think charging money for something they once did not charge money for would have to make them more money. This isn't going keep tourists and "one day a year" locals from coming, the losses in people could come from AP's.

Although one thing to think about is that a lot of past Disney policies seemed aimed at keeping people in the parks longer to keep buying food and souvenirs. I think that was part of the thought process for FP+, you can't always get the ride you want at the time you want, so you might end up with FP's spread throughout the day essentially forcing you to remain in the park the whole time. This could backfire in that regard as I talked about in another thread, if passes for the top rides are sold out around lunchtime and all you're left with is a bunch of long lines, a lot of people may go home at that point, especially if they used the system well and got a lot of passes in the morning. That's not what Disney wants.

Regardless, this is clearly a minus for the guest experience.

 

[LovePop]

1) The number of people who will not go because there isn't fastpass or only paid FP is insignificant.
2) Theres always been that 'I wish it was me' when people are zooming past you in the FP line. We haven't had any class warfare to this point.
3) Theres never a time (COVID notwithstanding) when the parks are so dead that no one needs to use FP. People who know how to maximize park time? Absolutely. But they aren't the target of this system anyway. And they will still buy it because it makes their days even better. MaxPass is well tested at DLR, there aren't really times when no FP are available to use.
4) MaxPass generates an automatic open FP in these circumstances, I'm willing to bet money that Genie+ will do the same.

You've never been to the parks when no one needs FP? I don't mean every ride, just most rides. I go during slow times in August when Splash Mountain was a walk on in the morning, both in Disneyland and WDW. Throughout the day, rides such as Figment, Living with the Land, It's a small World, Dumbo, Pirates, and many others, often has no line. Most of the time, my fastpass is just a cute thing I get for the most part. There are times when if I go during the weekends, then the parks are very busy and Pirates have a 40 minute wait.

However, if attendance reduces significantly due to paid fastpass, then the lines will be short and there will be no need for fastpass. If attendance doesn't change much, then paid fastpass will just be pure profit that Disney should have started to charge for a lot sooner.

 

[LovePop]

Too early to tell. I think most will eventually adapt just as they did with FP, FP+, Resort Parking Fees, Deposits for ADR's, Ticket Increases, and F&B Increases - and they will make money from it.

I will say one thing. Disney sure seems determined to take the "fun" out of a vacation. People want to go on vacation to get away from stress. Not run towards it.

Sometime in the near future - once the money grab has been completed, some yet to be hired Disney Exec (who is probably 4 or 5 years old right now) is going to say "This is crazy" and is going to look to "simplify" the vacation process. Hopefully, I'll still be around to see it.

It all comes down to the bottom line. Will paid fastpass be pure profit with no negative consequences, like getting rid of DME? If so, then No future Disney Exec would ever get rid of it. Why say no to extra, free profit? It's not like they can't use the money.

Right now, Disney is like Mr Perfect that a girl dates. He's handsome, attentive, he takes care of everything, he wants her to have the best experience. So, she falls in love with him. A few years later, he decides that he's sick of being perfect because it's too much work -- he never wanted to do any of that stuff, he just did it to win her over. He is no longer Mr. Perfect, he's just Mr. Some Guy.

What would the girl do in this case? (I use the "girl" to refer to the entire collective of Disney guests). I would say that she might leave him, but if she doesn't, she would simply plan her life so that she gives him less. Spend more time at work or with friends, keep a private bank account, pay no attention when he gets sick, and keep an eye open for something better that might come along.

However, it is also entirely possible that she is so besotted that it doesn't matter what he does. She will quickly ignore or accept any negative traits he develops, focus on the positive, and just put up with more and more unpleasantness without complaint. That is obviously what Disney is counting on.

 

[LovePop]

Well you'd think charging money for something they once did not charge money for would have to make them more money. This isn't going keep tourists and "one day a year" locals from coming, the losses in people could come from AP's.

Although one thing to think about is that a lot of past Disney policies seemed aimed at keeping people in the parks longer to keep buying food and souvenirs. I think that was part of the thought process for FP+, you can't always get the ride you want at the time you want, so you might end up with FP's spread throughout the day essentially forcing you to remain in the park the whole time. This could backfire in that regard as I talked about in another thread, if passes for the top rides are sold out around lunchtime and all you're left with is a bunch of long lines, a lot of people may go home at that point, especially if they used the system well and got a lot of passes in the morning. That's not what Disney wants.

Regardless, this is clearly a minus for the guest experience.

How important is guest experience? Was it a waste that Disney has been offering free stuff all these years -- DME, FP, parking? And what about other stuff, like buses/Monorail/Skyliner/boats? Shouldn't Disney be charging for those too? Why stop at fastpass?

For example, say if Amazon or Walmart starts prohibiting returns. It will definitely increase their profit of not having to deal with returns. Will people still buy from them like always? Are they stupid to be offering free returns still? Aren't they big enough that people will buy from them anyway, no matter what they do?

 

["El Gran Magnifico"]

It all comes down to the bottom line. Will paid fastpass be pure profit with no negative consequences, like getting rid of DME? If so, then No future Disney Exec would ever get rid of it. Why say no to extra, free profit? It's not like they can't use the money.

Right now, Disney is like Mr Perfect that a girl dates. He's handsome, attentive, he takes care of everything, he wants her to have the best experience. So, she falls in love with him. A few years later, he decides that he's sick of being perfect because it's too much work -- he never wanted to do any of that stuff, he just did it to win her over. He is no longer Mr. Perfect, he's just Mr. Some Guy.

What would the girl do in this case? (I use the "girl" to refer to the entire collective of Disney guests). I would say that she might leave him, but if she doesn't, she would simply plan her life so that she gives him less. Spend more time at work or with friends, keep a private bank account, pay no attention when he gets sick, and keep an eye open for something better that might come along.

However, it is also entirely possible that she is so besotted that it doesn't matter what he does. She will quickly ignore or accept any negative traits he develops, focus on the positive, and just put up with more and more unpleasantness without complaint. That is obviously what Disney is counting on.

Show me someone who is perfect - and I’ll show you someone who is not.

The short term play is pretty safe. People will complain. People will gripe. People will voice their displeasure on social media.

Ultimately though people will adapt because of a perceived loyalty and they’ll figure out how to best use (or work) the system. I’m one of them. - So “the girl” isn’t ready to split just yet.

But the long term outlook is that eventually she will. Then Mr Perfect finds himself back in the dating pool. His game not as it once was. Maybe he’s packed on a few pounds - he’s a bit older - and he needs to make decision.

Either make the commitment to the gym membership, update his look, update his wardrobe - and experience some humility

Or spend his weekends eating pizza and drinking a six pack while swiping through Tinder.

It’ll be interesting watching it play out.

 

[Minthorne]

Motley Fool predicts it will be a

www.fool.com/amp/investing/2021/08/24/disney-worlds-controversial-move-will-win-the-boo/

 

[Animaniac93-98]

Even if Genie+ indirectly causes a decrease in guest spending elsewhere, Disney won't put two and two together and modify either Genie+ or their other services.

They'll simply do what they always do when they panic and look to make cuts here and there to reduce costs.

Either way, the customer loses.

 

[Sean W]

Genie+ is, without doubt, and additional source of revenue for Disney. It will also reduce the number of people using the fastpass system (not everyone will be willing to pay for it), making the fastpass experience better (than free) for those who do pay.

The drawback is that Genie+ can potentially:

1. Reduce park attendance by angering or alienating fans, who might reduce or eliminate their Disney vacations.
2. Dampen park atmosphere by pitching 2 obvious classes of guests against each other: the ones in standby and the ones in fastpass.
3. Increase complaints when the parks are empty, when people get fastpasses only to realize the wait time is insignificant anyway; or when the parks are so crowded that very few or no desired fastpasses are available to Genie+, so it is a waste to buy.
4. Guests obtain a desired fastpass, and then the ride breaks down at the fastpass time.

For me and my family, we are getting the Genie+. We are also staying at deluxe hotels during our next trip to enjoy all the extra magic hours. We'll pay for it by reducing our park visits from once a year to once every 3 or 4 years, so our overall Disney budget will be about the same. But practically speaking, I think Disney will lose money from having Genie+ paid fastpass system. It will be like the NBA Experience. In the end, Disney will go back to free fastpass (maybe with a paid option added), and free DME to win people back.

There is one complication: if Disney Parks going forward with paid fastpass do poorly, they can always blame the virus, and they might even be right. But overall, I predict that Genie+ will be a liability for Disney. I could be wrong, of course. What do you think?

Yes it will make $ in the short term, but long term it will lose $, because the rabid loyalty of disney guests that only stayed on property & only went to disney parks will erode. They will discover there is more than just Disney in Orlando area. This will lead to more off property stays, and splitting time between disney, universal, sea world, etc. Loyalty is a 2 way street, and once you lose it, it's very rare to get it back.
People will still love Disney, but they just won't blindly anymore.

 

[MichWolv]

We don't actually know enough to form our own views on that. However, I answered "make money" because the people with vastly more information than we will ever have clearly believe it will make money, and they are more likely to be right than any analysis I can do with the amount of information I have.

 

[GimpYancIent]

Yes it will make $ in the short term, but long term it will lose $, because the rabid loyalty of disney guests that only stayed on property & only went to disney parks will erode. They will discover there is more than just Disney in Orlando area. This will lead to more off property stays, and splitting time between disney, universal, sea world, etc. Loyalty is a 2 way street, and once you lose it, it's very rare to get it back.
People will still love Disney, but they just won't blindly anymore.

Absolutely! The loyal fan base is eroding and good luck regaining that lost loyalty.

 

[Nottamus]

It will definitely make them money, now and for the long haul.

see, the “loyal” fan base will get older and stop going someday anyway…..it’s the “new” base that come along and don’t know the “old” ways, and will be perfectly content spending for fast passes, never knowing they were free wayyyyy back in the 2010s.

 

[graphite1326]

So you had to rub it in that you are staying at a deluxe? I could never afford that.

 

[networkpro]

I'm in the "wait and see" category as there are lots of things in play. Frankly, with the ubiquitous crowds, the experience was becoming untenable as a good experience. More guests complaining that they paid their admission and couldn't do anything. Just raising the daily ticket price did little if nothing to reduce the crowds, it added no extra hourly capacity to any ride or experience. Curating your daily customer load with both paid for and free guidance from your pocket overlord (ie Genie on your personal device) is a good start IMHO.

 

[SteveAZee]

I think that Disney's goal is (given their really limited appetite for increasing capacity of the parks) to increase earnings (not necessarily revenue) while limiting attendance (to increase overall guest satisfaction). The only way, I believe they've decided, is to increase prices. The new G+/IAS is nearly all profit/earnings to them, and it still allows people to visit the parks without the costly add-ons but they'll need to be prepared to stand in long standby lines, though potentially shorter lines than with FP+. Less people may visit the parks, but I suspect that earnings will increase. If not, they have the tools to tweak things (raise G+ or IAS prices) until the right balance of lower attendance/high earnings is achieved.

It looks good on paper, anyway.

They need less people attending, but each guest to spend more money. This clearly will annoy those who are priced out, but I suspect they can live with that if the plan succeeds.

 

[Rickcat96]

Me thinks it wont be enough $ to justify the loss of good will. Don't just look at local attendance, 1 time visitors etc. Locking out folks whom don't live in the US is where Disney will see the biggest hit IMO.

 

[JIMINYCR]

I think over time it will be a money maker for Disney. People want access to what they want and they will spend money to get what they want despite the position it puts them in financially. When they see it gives them the attractions they want they only see the up side and not the downside. Disney May lose a percentage of guests who hate the new program but they are constantly losing people over conditions they set and prices they increase. That’s nothing new but Disney has learned time and time again , those lost guests get replaced quickly by others who are willing to fill the void.
I may not like the change and not take part in it but there will be ten others who will gladly take my spot.