LovePop
Well-Known Member
If SWGS flops it's not a big deal. Disney can just write it off like a movie flop, which happens and normally costs about that much: $240 million. And unlike a movie, the hotel will continue to make money by charging less so that the rooms are filled, just not as much as it was expected to do.Of course it's almost sold out -- if it wasn't this thing would be one of the biggest disasters Disney has ever built.
Personally, I'm not expecting it to ever be sold out past the first month, March 2022. I believe Disney's marketing research on this is flawed; they mostly went by the "Build it and they will come" model. For various reasons, that model didn't work for Galaxy's Edge, and it won't work for this the hotel either. The main reason is the oversupply of luxury rooms. The total number of rooms/suites at Disney World that costs more than $2000 a night is perhaps 200, and this hotel increased that suddenly by 50%. There are simply not enough market to support it. Disney was hoping to entice a new market - the vast number of rich SW fans who don't normally come to WDW, or even the non-rich fans to cash in their retirement savings for this once in a life time experience. But given that those fans didn't swarm Galaxy's Edge as they were expected to do, they most likely aren't impressed by the hotel either, which is far more expensive.
The average 5 star hotel with 100 rooms costs $60 million to build and costs about $800 a night, without being all inclusive. The SWGS's construction cost 4 times that much, so it's not unreasonable that they want to charge $3000 a night. There are other all inclusive hotels that cost that much, such as The Point in NY. But the rooms there are much bigger and more comfortable:
In comparison, the rooms at SWGS are way too small for the price. And The Point has only 11 rooms, despite being located near a densely populated and affluent region of the East Coast.
If by next March SWGS doesn't become as fully booked as expected, Disney can simply lower the price until demand meets supply. Because the demand is there, it's just that most people can't jump over that high of a price hurdle. I would think that if the standard room comes down to $1000 a night (from the current $3000), all inclusive for a family of 4, it will be fully booked all the time like every other Disney hotel. Disney won't make the money back as fast as planned, but it will make money nonetheless.