I don't think your package price for 2011 is locked in until they announce the prices for 2011 which will hopefully be soon. I booked by room-only for the first week in January months ago. I just got an e-mail last week showing my new rate, which is about $5/night weekdays and $10/night weekends more than the 2010 rate. I'm guessing they'll raise park passes a bit also.
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Possible Increase in Ticket Prices
- Thread starter CaptainJackNO
- Start date
powlessfamily4
Well-Known Member
That's true; however, back in 2005 and 2006, gasoline was in excess of 3 dollars per gallon and price increases went into effect then, too. So, with that way of thinking, that was taken care of 5 years ago. I know businesses need to generate a profit, otherwise why be in business? The problem is, at this rate, Walt Disney World will become a vacation destination out of reach for many people. I am not so sure that's a great idea.
What people need to realize is leadership in major corporations (and I have a Master's Degree, also, so I know a little of what I am talking about) rarely lasts in excess of 10 years. So, every decision made by leadership today will be felt and have to be dealt with in the future by new leaders. How long do you want WDW to be around? You cannot go on the mentality that people who have more money will make it work. In my opinion, for a corporation of this type to be successful long into the future, the culture of the corporation must endear itself to the general population in ways more than just what is being sold, such as magic.
When Walt was alive and a long period afterward, Disney was known for whimsy, family values, and making dreams come true. Virtually everyone loved Disney and tv shows and media portrayed Disney as the prince of the media and entertainment industry. Let's fast forward to the last 10 yeras, up to today. How many times has the Disney Company been portrayed as money hungry, opportunist, and stock driven only? Why not look at anything that mentions Disney that IS NOT a Disney product. Why do you think Disney has gotten this reputation? Because the people who think this are mean? Heck no. In fact, some of the staunchest Disney fans on this website, myself included, have the very same opinion of the company, as well. How many gift shop threads have we seen? How many poor show/quality threads have we seen? How many people on this site, almost daily, accuse Disney of doing things on the cheap? That is happening for a reason.
Question: Is Disney still profiting each year? Yep.
Better than Universal? Yep.
Still the #1 vacation destination in the world? Yep (But for how long at this rate. It has to stay affordable for that to happen.)
IS Disney still a Blue Chip Stock? Absolutely!
So, why the need to constantly run up prices. 5 bucks a night? 10 on weekends? That equates to, on a 5 night trip and excess of $25 during the week and more on the weekend. That's not that much? Okay, then where does it stop?
Let's say they raise resort rates $5 per night for each of the next 5 years. Now, the Value? resorts go from 89 a night (Value season) to 114 a night. Excuse me, but is that a value hotel price? That would put the base rate for the moderates at, what, 154 per night? Again, I understand profit, but let's face it, the free credit era of the late nineties into just last year really benefited Disney.
As far as fuel goes, with the amount of cooking oil used on property on a daily basis, why has this company not gone into the Bio-Diesel business just for itself? You want to talk profit? try 19 cents a gallon to produce. Plus it is easy to do.
I am sorry, I am not ready to give the pinhead management at WDW a pass. I believe the price hikes are getting out of control. Profit is fine; however, I fear the constant growth of prices when most other industries are holding will eventually catch the WDC in the end.
wizards8507
Active Member
Good thing you don't own the company. If you owned a lemonade stand, why the heck would you charge $0.25 a glass if you have the best lemonade-drinking experience in the world and people are willing to pay $4.75?
I get it about profit. The point is, as some have said, is that you will eventually reach a tipping point. Also, having loyal fans is no reason to take advantage of them and rake them over the coals for every penny you can squeeze from them. While I KNOW profit is the reason for being in business and without them WDW would not exist, I also know that there is such a thing as business ethics, something all of these corporate people should have taken in their respective colleges.
So you believe just because you can charge someone a high amount and they are willing to pay it, that makes it okay? I love profit, heck I am a capitalist myself. But, there has to be ethics in business, too.
wizards8507
Active Member
Profit for the sake of profit is somewhat circular, I agree. But the point of "profit" is not "acquisition," it is "increase." Companies (in my opinion) do not seek to acquire dollar bills so they can sit on them. They seek to turn a profit so they can reinvest that money, create more profit, reinvest that, create more profit etc. The beauty in that system is that the corporation and the consumer benefit. In order to see top-notch service and new world-class attractions, people need to pay world-class prices. Ticket prices now aren't just paying for maintenance, cast salaries, or corporate pocket-lining. They're paying for the Fantasyland expansion, Star Tours II, and whatever they decide to roll out of WDI in the years to come.
While I agree that there comes a point where people will be unable or unwilling to pay, I disagree with your depiction of that point as a *tipping point*. Rather than a certain dollar amount where people all of a sudden stop paying, WDW will slowly start to see numbers fade. I believe we're already at that point, which is why Free Dining and other promotions have been necessary. I think their move will be a VERY slight increase in prices, with an improved economy (hopefully) driving the consumers' willingness to pay.
True, and I guess my point, although horribly conveyed is that I would be more comfortable with the increases if we saw growth in the parks and resorts in the manner we did in the early to mid 90's. While I am looking forward to the Fantasyland Expansion, I am sorely disappointed in AK and DHS given the prices charged and the value of show offered. Not to mention the state of Downtown Disney. I look around at these things and read the annual profit reports and get a bit miffed at things like DTD when there is really no excuse for it, in my opinion.
And that's not meant to imply that the value of the shows offered at DHS and AK aren't Disney quality. My concern is that EPCOT and MK offer many more attractions while charging the same fee. So, when those things are corrected, I'll be more comfortable with these increases.
wizards8507
Active Member
I have somewhat of the same feeling so I started doing some research. I'm a senior accounting major so I have an interest in financial statements and things of that nature. With Disney, most people overestimate the size of the Parks & Resorts Division. The majority of revenues and an even greater percentage of profits comes from the combination of Studio Entertainment and Media Networks. Profits tend to be reinvested in the division that generates them, so large profits for the Walt Disney Company as a whole will not always translate into large reinvestment in Parks and Resorts. Furthermore, guest counts at WDW have remained fairly constant through the recession but SPENDING per guest is way down, so the thought many have that they are immune to the recession is false.
Exactly! I know for a fact that they are not immune to the recession. I also know that they are only a subsidiary of the larger company. But, let's be honest, they are still turning a nice profit. I think the biggest reason park spending is down is related to the credit crunch.
powlessfamily4
Well-Known Member
I work with business budgets everyday and I can tell you most of our reasonings as to why they should/should not raise prices.... are opposite of the business plan as to why they will. You have to keep the board members and the stockholders happy period. As much as we all love the idea of Walts dream, the bottom line is this is a business and it has to turn a profit. Dividends have to be paid and I am sure there are plenty of hands held out to recieve it. I am not opposed to a slight increase, it is a part of life. Afterall, that huge Fantasyland expansion we are all waiting for has to be paid for right?