Resort Parking Charges

["El Gran Magnifico"]

It’s a symbiotic relationship. We have all the power bc we can choose to stop paying them

But we don't.

 

[Chef Mickey]

But we don't.

The outcome isn’t the power. The option is.

 

[flynnibus]

Disney made $55B in revenue last year, so you did a great job proving this isn’t a needle mover, even if we assume $1M per resort and ~25 resorts. $25M is <0.05% of their world.

1/4 of those rooms paying the fee every night is probably generous and there is no such thing as pure margin. It all costs money, even if it’s administration and taxes.

Parks and resorts make like 20% operating margins....totally reasonable and not even Disney’s most profitable business. You seen Visa’s margins? I’d hate for you to start studying what other companies make on the margin front.

Btw, careful on your math. $25 on $400 room rate is a 6% increase in revenue, not margin. The $25 is in the revenue category.

Dude... re read what i said. And last i checked visa is not in the hotel business... and the disney hotels are not responsible for the entire disney 55 billion revenue... nor would the hotel management be graded on it... but they would for their PnL. And the cite is from hotel norms (your favorite right?).... not convolutions things by trying to look at the entire conglomerate.

And if you even paid attention you'd note i used numbers without sales tax... and yes it would be pure margin going forward. And yes i made a typo... margin verse revenue in that one line.. but it actually works out roughly the same since it’s pure bottom line. If they were doing 40% gross margins... an extra 23 to that 160 margin on 400 is still a 5.75% increase.

It’s still new revenue on top of their previous covered expenses... and interestingly... for guests it’s taxed less than room rates. The parking fee is just charged regular sales tax... not the room and hotel tax fees.

And btw my industry normally trends to 68% gross margins.... but I am also smart enough to realize that doesn’t mean jack to hotels because I’m not in the hotel business!

 

[Sirwalterraleigh]

I don't care if you disagree. You're wrong. It's been confirmed by insiders here and elsewhere.

You have to stop and remember that “insiders” usually work for Disney or try to profit off disney somehow by covering it...like the yutzes at Dis...

The “reasons” are often still company line crap. Nothing is stopping that from “leaking” out.

This isn’t about blocking universal...it never was. It’s just softening for more fees, increases, and additional costs.

It is what it is and that’s what this is. Just a “tweak” that serves a function and brings in easy scratch.

“Parking lots cost a lot to maintain”? No they don’t...who the hell said that?

 

[Sirwalterraleigh]

The outcome isn’t the power. The option is.

Consumer stupidity negates the power of the option

 

[Chef Mickey]

Dude... re read what i said. And last i checked visa is not in the hotel business... and the disney hotels are not responsible for the entire disney 55 billion revenue... nor would the hotel management be graded on it... but they would for their PnL. And the cite is from hotel norms (your favorite right?).... not convolutions things by trying to look at the entire conglomerate.

And if you even paid attention you'd note i used numbers without sales tax... and yes it would be pure margin going forward. And yes i made a typo... margin verse revenue in that one line.. but it actually works out roughly the same since it’s pure bottom line. If they were doing 40% gross margins... an extra 23 to that 160 margin on 400 is still a 5.75% increase.

It’s still new revenue on top of their previous covered expenses... and interestingly... for guests it’s taxed less than room rates. The parking fee is just charged regular sales tax... not the room and hotel tax fees.

And btw my industry normally trends to 68% gross margins.... but I am also smart enough to realize that doesn’t mean jack to hotels because I’m not in the hotel business!

Disney doesn’t break out their hotel only margins...we can only guess. They only detail parks and resorts, which is pretty vague. Overall, their margins are pretty low, so I have no problem with the fees from that perspective either. It’s a tough business to maintain those parks, resorts, and pay all the employees while keeping the entitled public expecting the world happy.

You want like all sides of this argument. If you just want to talk hotels, it’s easy. Pretty standard to pay for parking along with other fees Disney doesn’t even charge yet. If you don’t want to talk hotels, I’m pointing out other companies rip you off a lot more. You don’t want to hear either...don’t know what to tell you buddy.

You can only assume the fee goes straight to the bottom line. You still have to implement the program and pay taxes. Even if you just limit the revenue to parks and resorts, the fee is a rounding error. They are trying to discourage the car itself. How parking was ever free at a Disney hotel is honestly a mystery to me. I pay to park at tons of hotels I’ve stayed in all over, particularly those in nice areas. Resort fees are also super common, so get ready.

If you’re that worried about it, boycott Disney. I’ve tried everything to help you see it’s not a big deal and not unique to Disney.

 

[flynnibus]

Disney doesn’t break out their hotel only margins...we can only guess.

They are still hotels... they still operate like most others... and should be in a better spot than most due to the “landlord” situation.

You want like all sides of this argument. If you just want to talk hotels, it’s easy. Pretty standard to pay for parking along with other fees Disney doesn’t even charge yet. If you don’t want to talk hotels, I’m pointing out other companies rip you off a lot more. You don’t want to hear either...don’t know what to tell you buddy.

Because what you fail to grasp is... before you were a twinkle in your daddy’s eye.... what made disney was that they WERE NOT like everyone else. And your constant need to point to Disney acting like everyone else as a justification as why it’s normal shows your complete lack of awareness of how Disney got to where it is.

You can only assume the fee goes straight to the bottom line. You still have to implement the program and pay taxes.

Huh? Taxes are paid by the customer. And it’s just another item they collect and pay through... it all already exists. Implement the program... up front training costs that even a Wharton plebe should know you don’t put in your ongoing expenses.

Even if you just limit the revenue to parks and resorts, the fee is a rounding error.

Not to the hotels... you can already ballpark their revenues... but instead you want to focus on numbers a high schooler could pick part as not useful.

If you’re that worried about it, boycott Disney. I’ve tried everything to help you see it’s not a big deal and not unique to Disney.

The problem is you actually think you are telling people stuff they didn’t know. We know what other hotels do... we’ve been traveling the world and carrying the bag since you were in diapers.

 

["El Gran Magnifico"]

Ironically, yesterday I booked MNSSHP for late September and like a bonehead I didn't click on the AP button. I realized my mistake and called this morning. Thought the effort would be in vain. Surprisingly they credited me back $20. So maybe a few of them do care.

 

[larryz]

Planning on staying on property....or planning on going?

Both. Er, neither.

Good. Too crowded anyway.

Another brick in the wall.

 

[Tony the Tigger]

Have either of you been??

Well, now you’ve got me considering it.

 

["El Gran Magnifico"]

Well, now you’ve got me considering it.

If you want some other options - Theater of the Sea down in Islamorada - or further south the Dolphin Research Center on Grassy Key which is just north of Marathon.

 

[Tony the Tigger]

If you want some other options - Theater of the Sea down in Islamorada - or further south the Dolphin Research Center on Grassy Key which is just north of Marathon.

We go to the keys fairly often, but never got around to those things. They are on the agenda!

 

[CaptainJackNO]

It absolutely is.....but you just have to work around it. For some it's paying it and moving on....for others it's modifying some aspects of your trip to accommodate for it....for a few it's endlessly complaining about it......but....it's here......and we just all need to deal with it.

13 dollars a night won't modify anyone's trip, really. I have reached an age where all the souvenirs have limited appeal to me. I spend the majority of trip money on food and snacks, some souvenir items for the kids.

 

[erasure fan1]

If you want some other options - Theater of the Sea down in Islamorada - or further south the Dolphin Research Center on Grassy Key which is just north of Marathon.

I will give a big thumbs up for theater of the sea. I had a great time there. I got picked to pet the dolphin, it was a very cool day.

 

[flynnibus]

Well, now you’ve got me considering it.

FWIW.. the dolphin portion isn't worth it... there are much better dolphin experiences in the bahamas, etc. But for a day of amazing pool activities and snorkeling.. it can't be beat. Then use the 7 day access to experience the other attractions in Orlando.

 

[Chef Mickey]

They are still hotels... they still operate like most others... and should be in a better spot than most due to the “landlord” situation.




Because what you fail to grasp is... before you were a twinkle in your daddy’s eye.... what made disney was that they WERE NOT like everyone else. And your constant need to point to Disney acting like everyone else as a justification as why it’s normal shows your complete lack of awareness of how Disney got to where it is.



Huh? Taxes are paid by the customer. And it’s just another item they collect and pay through... it all already exists. Implement the program... up front training costs that even a Wharton plebe should know you don’t put in your ongoing expenses.



Not to the hotels... you can already ballpark their revenues... but instead you want to focus on numbers a high schooler could pick part as not useful.



The problem is you actually think you are telling people stuff they didn’t know. We know what other hotels do... we’ve been traveling the world and carrying the bag since you were in diapers.

I guess you have an ageism issue now? You retired and on a fixed income? I was saying company revenue will be taxed before it gets to the bottom line, lol. Or you think a Disney doesn’t pay taxes on parking fees?

If you know so well, stop complaining about a minor, standard fee.



Sigh. Disney still has a unique product, which is what everyone with a clue cares about. The comparison of their various fees and overall cost is brought up to reinforce that vacations are expensive and fees are common.

You’re conflating the product Disney offers versus the fees they charge for you to enjoy it. Money is never what differentiated Disney from the rest and the introduction of a parking fee or overall increased prices doesn’t change that. People want the product, because it’s unique. The fees are not. Separate issues.

Sorry you feel Disney has left you behind, but they haven’t lost their uniqueness or secret sauce. You lost all credibility when you said Discovery Cove is far better than Disney...hahahaha.

 

[UncleMike101]

Or you think a Disney doesn’t pay taxes on parking fees?
.

Disney, like every other business in America doesn't pay one cent of taxes.
ALL taxes are factored into operating overhead and passed on to the customers in the costs of goods and services.

 

[Chef Mickey]

Disney, like every other business in America doesn't pay one cent of taxes.
ALL taxes are factored into operating overhead and passed on to the customers in the costs of goods and services.

See what kind of nonsense people spew when some wrong information is on a forum? It’s wrong to say American companies don’t pay taxes, lol.

Disney pays billions in taxes.

Only a few companies like GE have complex businesses and accounting to pay effectively 0 tax, but still not every quarter. Before corporate tax was lowered to 21%, Disney paid around 33%..among the highest in the Dow.

https://www.marketwatch.com/story/t...y-a-windfall-under-trumps-tax-plan-2017-09-29

You’re just saying they increase prices to offset them, but most still pay tax.

 

[flynnibus]

I guess you have an ageism issue now? You retired and on a fixed income? I was saying company revenue will be taxed before it gets to the bottom line, lol. Or you think a Disney doesn’t pay taxes on parking fees?

And what business school grad doesn't know that taxes are not part of Gross Margin calculations (nor Overhead like you cited before...)?

You’re conflating the product Disney offers versus the fees they charge for you to enjoy it. Money is never what differentiated Disney from the rest and the introduction of a parking fee or overall increased prices doesn’t change that. People want the product, because it’s unique. The fees are not. Separate issues.

Because again... you really don't understand what made Disney, Disney. It was the EXPERIENCE and how it differed from everywhere else. That "Disney Difference" was applied to all aspects at WDW and is the foundation of the "Disney bubble". It applied to the environment, the atmosphere, the structures, the way employees acted, the way employees were presented.. and on and on and on. It's not attractions like POTC in isolation that made WDW the knock out it was... It was the entire vacation experience... from how open spaces were managed, to how you were entertained. It was never about 'cheap' vs 'expensive' - Disney was always expensive, but you were always so impressed and wowed, the $$ seemed justified. And that's why the migration to the 'parks only, parks all the time' kind of vacation experience is in stark contrast to what WDW established itself with.

The difference with this particular topic is... we are just getting $$ tacked onto what we've already always had... with no new customer value. It's literally just tacking on new charges with no customer value pitch.

You just see it as "matching what everyone else does..." and are oblivious to Disney's actual formula that made it so it could be the premium priced product that people didn't mind paying for.

Again.. it's not the $5, $10, or whatever cost that is the issue... it's the handling of the customer and total experience that is breaking down... being justified with completely outsider thoughts like "well, everyone else is.."

 

[Chef Mickey]

And what business school grad doesn't know that taxes are not part of Gross Margin calculations (nor Overhead like you cited before...)?



Add it to your list of failures. Unlike you I don't have the urge to boast about how much I've done or spent... because no one I value values those kinds of things. My passports have had to had to be expanded due to being full from use.



Because again... you really don't understand what made Disney, Disney. It was the EXPERIENCE and how it differed from everywhere else. That "Disney Difference" was applied to all aspects at WDW and is the foundation of the "Disney bubble". It applied to the environment, the atmosphere, the structures, the way employees acted, the way employees were presented.. and on and on and on. It's not attractions like POTC in isolation that made WDW the knock out it was... It was the entire vacation experience... from how open spaces were managed, to how you were entertained. It was never about 'cheap' vs 'expensive' - Disney was always expensive, but you were always so impressed and wowed, the $$ seemed justified. And that's why the migration to the 'parks only, parks all the time' kind of vacation experience is in stark contrast to what WDW established itself with.

The difference with this particular topic is... we are just getting $$ tacked onto what we've already always had... with no new customer value. It's literally just tacking on new charges with no customer value pitch.

You just see it as "matching what everyone else does..." and are oblivious to Disney's actual formula that made it so it could be the premium priced product that people didn't mind paying for.

Again.. it's not the $5, $10, or whatever cost that is the issue... it's the handling of the customer and total experience that is breaking down... being justified with completely outsider thoughts like "well, everyone else is.."

Dude, what are you talking about? We must be talking about 2 different things. Disney will pay tax on any dollars they bring in from fees, park tickets, food, drink, etc. The money charged for the fee starts at top line revenue. You are the one talking gross margin...I’m not. I just said the $25 fee doesn’t equate to $25 in net income. That is ALL I’m saying on the fee.

You made it sound like the $25 parking fee goes straight to profit...untrue, wrong. If that’s not what you meant, we have no argument and I don’t care what ridiculous convoluted way you have to prove some random point. Revenue will be taxed, fees are revenue, and the parking fee is an inconsequential non needle mover to the top or bottom lines. I’m not even close to wrong on anything I’ve said on this issue.

Disney does a fantastic job handling their guests, is still the best in the business, and fees don’t change that. All the things you listed still exist and I’m confident I’ve been more than you. How does a fee negate all the things you listed? The customer value you allowing a parked car for a nominal price. They could make parking $40/day? To me, the we’re correcting something they should have always charged for.



Disclosure: I am very long DIS.
Disclosure: I love Disney.