Spirited News and Observations and Opinions ...

[lazyboy97o]

That's like the right hand not knowing what the left hand is doing. Somebody is watching over both of them and controlling the ultimate decisions.

That is a practice The Walt Disney Company has turned into an art. Nothing about the royalties or auditing is new. It is all spelled out plain as day in the contract. If it bothered Universal they would have acted already.

 

[BigThunderMatt]

The only way for the UNI Marvel contract to break is if Disney can prove that the Land is not being maintained properly. To that I reply, don't throw stones in glass houses.

If I were Uni in that discussion I'd be like "Um...pot? Kettle?"

 

[tomman710]

I had a buddy in college, we had a class together, and the guy spent all his time trying to figure out ways to cheat through the class, he spent so much time gathering ideas, coming up with plans to cheat ... in reality he spent as much time as I did, but I studied. I kept telling him, "look I am spending the same amount of time as you, maybe less, just reading the material." He didn't get it, he was convinced the best way to pass the class was with trickery, cheating, etc ... in the end he made a B, I got an A ... so ... the end result was fine but had he stopped trying to cheat and just do what got him there in the first place, namely studying, he would have had a better grade.

That's Disney right now ... they are spending so much time and money trying to "cheat" guests out of money, if they just had spent the same amount of time and money on what got them there in the first place, namely attractions and service, then guests would have gladly given them their money, maybe even more.

It's so infuriating that they don't get that.

 

[Lil Fort]

My name is Doug...

I have just met you... and I love you!

 

[GoofGoof]

I do not think that any of us will really know what Disney will do as they gain knowledge about their guest. With everything tied together, it should make it easier for WDW to grade each of the guest using MagicMyWay....they will be able to tweak and adjust analogical software that could start with something like...only open half the tables in California Grill to folks on the dining plan and leaving the rest for folks not on a plan...how would any of us know that the resturant was not truly booked, just booked for guest w/ profile 'C'.

They could then start adjusting stuff, the 'whale' would find it easier to get into any SIG TS while the folks who just ordered cheese soup the last time they were at Le Celliar MIT find they can't seem to reserve a table anymore.

Anyway, I have no idea what WDW has planned for any of this, but it is very possible that they will do more to make the big spenders have a much more magical experience than the person their software tells them does not add enough to the bottom line.

This all seems possible and I was really just trying to say that it has to be more than just a few extra FP+ reservations. I think as @WDW1974 stated in his latest post they are looking to implement a tiered system which I am interpreting to mean a rewards system similar to casinos and would potentially include some of what you are describing and a whole lot more. Harrahs very successfully implemented a sophisticated data mining and customer loyalty program over 10 years ago. There was a fascinating and very relevant article In the Harvard Business Review back in 2003 about the Harrahs program. I couldn't find a direct link to the actual article (Harvard gives nothing for free) but here's a summary of it:
http://archerian.wordpress.com/2009/10/29/diamonds-in-the-data-mine/

In the Harrahs case they bucked the trend of building bigger and more lavish casinos like some of their biggest competitors and instead focused on a customer loyalty and rewards program which relied heavily on data mining. Sound familiar - Uni focused on building bigger and better parks, WDW focused on Nextgen. In the Harrahs case they built a fiercely loyal customer base by using the powerful psychological tactic of offering rewards and upgrading people for spending more at their casinos. Their customers would stay at a Harrahs property and go to the Bellagio to see the fountain show but then go back to Harrahs to gamble. I witnessed the success of the program first hand. I have friends who are more regular gamblers than I am who literally won't stay or gamble at a non-Harrahs property since they value the rewards so much. If you dangle rewards which customers see as truly valuable they will up spending to try to get pushed up from gold to platinum or platinum to diamond. People naturally value rewards more when they know the average Joe doesn't get them too. How many people do you see come on this board to "brag" about pin codes they got, free rooms, cast members getting them into parks for free or other private events. It's human nature to want to be a VIP.

 

[underemployedCricket]

The difference between Harrahs and Disney- GAMBLERS- oh wait Disney is gambling on this being a success....

 

[danlb_2000]

The only way for the UNI Marvel contract to break is if Disney can prove that the Land is not being maintained properly. To that I reply, don't throw stones in glass houses.

... and according to the contract, if Disney does find that Uni isn't maintaining things properly, Disney has to give them a chance to resolve the issues before it can break the contract.

 

[BigThunderMatt]

I have friends who are more regular gamblers than I am who literally won't stay or gamble at a non-Harrahs property since they value the rewards so much. If you dangle rewards which customers see as truly valuable they will up spending to try to get pushed up from gold to platinum or platinum to diamond. People naturally value rewards more when they know the average Joe doesn't get them too.

I think a big difference here is that gamblers are a niche market. They come with the intention to spend more than likely the average family is planning to spend on a day at Disney. It's also harder to say when a gambler will stop spending, because their threshold is likely much higher depending on how well they do.

I don't really see the connection with NextGen, just simply because the mindset of a typical family and a gambler is far too different. You go into gambling with the hope that you'll walk away with more money than you had when you arrived. Because so much of what you take away from a vacation is, for the most part, intangible, it's difficult to say that if you datamine and offer "rewards" people will spend more. The reward that you get from spending more at gambling is that you could potentially have more money in the end. The reward from spending more at Disney is...well...nothing really.

 

[71jason]

If you dangle rewards which customers see as truly valuable they will up spending to try to get pushed up from gold to platinum or platinum to diamond. People naturally value rewards more when they know the average Joe doesn't get them too.

Great post. But it comes back to the issue of just what rewards can WDW offer? Just Fastpasses? Or will they go the route of free V&A dinners and Castle suite stays?

 

[GoofGoof]

The reward that you get from spending more at gambling is that you could potentially have more money in the end. The reward from spending more at Disney is...well...nothing really.

While the 2 are not interchangeable the mentality is exactly the same. The more you spend the better rewards you get. Whether that spending is on the high of gambling or the high from a thrill ride it's the same. You have to seperate the winning or losing from gambling from the equation. In the casino program you don't gamble more just for the chance of winning more you gamble more since you know you will get rewards for it.

 

[GoofGoof]

Great post. But it comes back to the issue of just what rewards can WDW offer? Just Fastpasses? Or will they go the route of free V&A dinners and Castle suite stays?

Exactly. If we are talking just fast passes it will flop. They have to raise the bar for it to succeed. Of course that is bad for the casual visitor.

 

[John]

Great post. But it comes back to the issue of just what rewards can WDW offer? Just Fastpasses? Or will they go the route of free V&A dinners and Castle suite stays?

Although I agree with this in princible I see a clear difference in the clientel and their mindset. Also Disney would have to alter a major way of marketing and what they cater to now....ie 5 yr olds. The clientel the post speak of is different. Its more of an adult mindset. Adult entertainment. Adult offerings. Sure their are famlies that would totally buy into this but I think it would be to small to really get the reults needed to make a profit.

WDW is no Vegas. These guest I would doubt get to hot and bothered over a FP. Maybe a V&A dinner....sure. But I have my doubts they would handing out five star dinners or cstle suit stays left and right. Also these are sophisticated guest. How long can you bulls*&t them into believeing they are getting something worth the money they are spending. You think these guest know a four star hotel when they see it? Just because you charge $400 bucks a night dosnt mean you are a four star hotel. IMO what would happen is....fool me once....fool me twice.
You are only going to that well one time. So now you have alienated your fan base and over time the goose that lays the golden egg will fly the coop.

Lets back track a little here. Once Disney offered a premium product for all those who entered. Built this wonderful place on offerings of quality and service. Then in a system wide transformation decided to go for profits by marketing for profit to the masses....as 74 likes to call the Honey Boo Boo crowd. Offer free dining, Walmarting the product. Now the toothpaste is out of the tube. There is no turning back now. Once quality has slipped so far it is very hard to return to the level of quality you once had. Much easier to manintain it. Now comes along NexGen. They find that the Honey Boo Boo crowd dosnt spend no money. They clog up the resturants, eat the food and then leave. Now they are going to try and market the "high rollers" again...but this time not with quality....not with substance....but with a way to customize your experience. Instead of a free dinner at V&A's they just might get you that hard to get ADR at LeCelier or Californis Grill. Your little girl wants to meet Ariel....we got it. To the rest of you....sorry...back of the line for you.

But wait, we hear the competition is Doing what Disney does used to do. This buisness model might be great for a casino but I dont see it working for this BRAND. Harrahs has their brand and Disney has theirs.

 

[Sneezy62]

This is what I can't figure. Disney's reward currency is pixie dust. It doesn't cost them anything but by the same token the value to the guest is somewhat amorphous. So let's say fastpasses are nickles, last minute ADRs are dollars. What are the dimes and the pennies and the 5s and the hundreds?

 

[WDW1974]

Wow. What a quiet weekend it has been ... I guess folks are all out enjoying the long holiday break or watching lousy basketball games ... oh, what's that you say? The NHL came back today? Yawn ....

Did someone here actually compare Disney's MyMagic+ to a casino loyalty card? That's the type of comparison that could drive Nick Franklin all the way to Europe, and not to buy nice clothes in Paris or Prague. Disney HATES casino gambling more than the average fanboi hates girls. Disney does not want anything it does connected to the dark seedy world of casinos.

That, and unlike Las Vegas which targets whales, NEXT GEN's prime target are those cute 'wittle princesses and pirates.

Also, we must not lose focus here, there are no real rewards for ANY guest under this scheme. Rather, TWDC will be giving certain guests certain things/access/experiences that all guests once received or had the opportunity to (I did meet Gary Loveman not too long after he moved from Harvard to head up then-Harrah's/now Ceasar's and he made a really good first impression. I don't think he gambles.)

Oh, and did anybody notice that 'Next '13' film that premiered at the Sundance Film Festival last night? I heard it was lensed by Jeff Lange and with associate producer nods to Blondie, Crazy Gary and Bland Tommy ... ok, I kid here. But seriously, my friend's nephew had a film premiere last night at Sundance. I hope y'all get to see it!

 

[John]

This is what I can't figure. Disney's reward currency is pixie dust. It doesn't cost them anything but by the same token the value to the guest is somewhat amorphous. So let's say fastpasses are nickles, last minute ADRs are dollars. What are the dimes and the pennies and the 5s and the hundreds?

Besides what you have mentioned maybe a M&G and fireworks but besides that IMO there are no pennies and dollars. All which we recieved for free at one time. Its not the dollars and cents...its the percieved vakue they will get. Thats where Disney is licking their chops at....giving something that basically they gave for free at one time. The experience they speak of was standard practice at one time. Disney built an empire on giving this experience.

 

[WDW1974]

In addition to the reasons already posted by lazyboy97o and MarkTwain, the Marvel acquisition does nothing for WDW. Do to Marvel's contractual limitations with Universal, TWDC essentially spent a lot of management focus and company money on something that can't help WDW. It, along with other moves, implies TWDC senior management considers WDW to be low priority. When it comes to these threads, I believe most people's #1 Disney passion is WDW. Sure, we like other Disney properties as well but, ultimately, this is a WDW fansite.

There was a time when WDW was my #1 Disney passion, but that was long ago. I'd rather spend time in any/all of the other resorts or on a DCL cruise and I have entertainment in my blood, so I am very interested in what Disney does in film and television. ... WDW, for me, is simply something I like and have an interest in now.

Since the Lucas Film acquisition could be used to eventually improve WDW, I get the impression that people on this site generally are supportive of that move.

That's because people assume (wrongly right now) that the Lucas deal will mean new product at WDW. It may well if we're looking 5-10 years in the future. If someone is hoping for an announcement this year for some Star Wars additions that will be open in 2015 or 2016, then I see disappointment in their futures.

 

[M.rudolf]

There was a time when WDW was my #1 Disney passion, but that was long ago. I'd rather spend time in any/all of the other resorts or on a DCL cruise and I have entertainment in my blood, so I am very interested in what Disney does in film and television. ... WDW, for me, is simply something I like and have an interest in now.



That's because people assume (wrongly right now) that the Lucas deal will mean new product at WDW. It may well if we're looking 5-10 years in the future. If someone is hoping for an announcement this year for some Star Wars additions that will be open in 2015 or 2016, then I see disappointment in their futures.

Funny thing is they could announce tomorrow and still not have anything till 2020

 

[HMF]

Disney HATES casino gambling more than the average fanboi hates girls.

Maybe your average person within WDC but I would think the 3 stooges (Iger, Rasulo, Staggs) would approve. After all, this NEXT-GEN BS is probably the worst example on recklessly gambling with your Company's future I have ever seen.

 

[WDW1974]

They are trying to find new sources of revenue, I get that - it's what businesses do. But they are looking to make money on infrastructure improvements, and not only are they the wrong infrastructure improvements, but they're taking away from the real wishes of the guests (innovative attractions).

Real wishes?

Georgie K told the O-Town Biz Journal (and he's never tell a fib!) that he met a MAGICal family at WDW and they told him all of their hopes ... oops, I mean Wishes for future WDW vacations and he said everyone would be answered by MyMagic+.

Disney knows what we want and they're gonna shove it down our throats (no, I won't make an Imagineer/Fanboi joke here, make up your own) until we choke on it.

 

[WDW1974]

The one devil's advocate thing I will say to this is that guests shouldn't know what they want, Disney should tell them. Historically this has meant that Disney guests weren't banging down the doors for a flume ride based on Song of the South or a tower drop ride based on the Twilight Zone, but that seemed to work out well.

THIS!!! Over and over.

Understand that guests are the worst when making decisions as to what should be in a theme park.
Probably 90% of what you get at any Disney park wouldn't have been there if Disney had listened to research groups and focus audience members.