Ticket Price Increase - Feb 2014

Nubs70

Well-Known Member
You means WDW fanatics on about a dozen websites are not? ;)
Cubs fans are not pixie dust snorting delusional fans who think they are World Series contenders. The dream of a WS title are usually dashed by late June/ early July yet continue to attend games. Cubs fans accept that they are perennial non contenders but yet they still would not pass on the chance to experience an afternoon at the park.
 

ZodIsGr8

Well-Known Member
We all complain about the prices but we will all be first in line to pay because we are addicted . I guess that makes me a life-styler but what can I say, the place makes me and my family happy!!!
 

ParentsOf4

Well-Known Member
You'll have to forgive the condescension but many people (specifically @ParentsOf4 ) have analyzed every quarterly statement for many years now.
What's going on at WDW right now is successful brand marketing.

North American families with young children treat WDW as a rite of passage while WDW is better than anything in South America. It's those two market segments that are keeping the WDW engine chugging right now. (Even if the Magic Kingdom steam engine might soon disappear. :()

Universal is benefiting from International tourists as much as WDW, something that would have been unheard of in 2009. Universal also is benefiting from smart investments in new lands and attractions producing impressive organic growth.

At WDW, there are signs of multiplying quality issues while recent Parks & Resorts investments have been ineffective. WDW remains financially successful today because of wise investments in prior decades coupled with much higher prices. There hasn't been any appreciable organic growth at WDW in the 21st Century.

Ticket prices can only go so high. WDW price increases have far outpaced people's ability to pay them. As I've posted elsewhere, ticket prices have increased at a rate about 5 times faster than Median Household Income in recent years.

For those of you keeping track, a WDW 3-day base ticket is the same price as a Universal Preferred Annual Pass. WDW might have 4 theme parks but it doesn't really matter if families cannot afford 4-day WDW tickets.

We are seeing the effect of WDW's higher ticket prices in WDW's hotel occupancy rate, which was at 79% in 2013, down from 89% in 2008. IMHO, consumers are beginning to forego their onsite stays in order to be able to afford WDW's higher ticket prices.

Wall Street is not stupid. They look at the 10-K filings; they know this. This is why for the last 5 straight quarters they've repeatedly asked Iger and Rasulo for some sign that MyMagic+ is working. They want to see organic growth at WDW.

Like Detroit auto makers in the late 1960s and early 1970s, WDW currently is surviving off brand loyalty and a lack of competition in certain market segments. It took the Japanese knocking Detroit on its butt and a government bailout to effect change.

WDW is not Detroit but if Universal starts targeting lands and attractions at WDW's core family audience, then WDW could be in for a world of hurt.
 
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fillerup

Well-Known Member
Just sitting here wondering what my tipping point as a local APer will be. We used to renew as soon as our window opened. Then we started procrasting for a few weeks. Then last year we only had three days left in our grace period before renewing. No doubt we were seriously considering letting them lapse.

Even though as a locaL, each visit only costs me about 5 bucks, I'm still not sure I'll put up with many more increases. Of course, I'm the customer Disney doesn't want (and shouldn't actually) since I probably spend no more than $100 per year in the parks.
 

John

Well-Known Member
What's going on at WDW right now is successful brand marketing.

U.S. families with young children treat WDW as a rite of passage while WDW is better than anything in South America. It's those two market segments that are keeping the WDW engine chugging right now. (Even if the Magic Kingdom steam engine might soon disappear. :()

Universal is benefiting from International tourists as much as WDW, something that would have been unheard of in 2009. Universal also is benefiting from smart investments in new lands and attractions producing impressive organic growth.

At WDW, there are signs of multiplying quality issues while recent Parks & Resorts investments have been ineffective. WDW remains financially successful today because of wise investments in prior decades coupled with much higher prices. There hasn't been any appreciable organic growth at WDW in the 21st Century.

Ticket prices can only go so high. WDW price increases have far outpaced people's ability to pay them. As I've posted elsewhere, ticket prices have increased at a rate about 5 times faster than Median Household Income in recent years.

For those of you keeping track, a WDW 3-day base ticket is the same price as a Universal Preferred Annual Pass. WDW might have 4 theme parks but it doesn't really matter if families cannot afford 4-day WDW tickets.

We are seeing the effect of WDW's higher ticket prices in WDW's hotel occupancy rate, which was at 79% in 2013, down from 89% in 2008. IMHO, consumers are beginning to forego their onsite stays in order to be able to afford WDW's higher ticket prices.

Wall Street is not stupid. They look at the 10-K filings; they know this. This is why for the last 5 straight quarters they've repeatedly asked Iger and Rasulo for some sign that MyMagic+ is working. They want to see organic growth at WDW.

Like Detroit auto makers in the late 1960s and early 1970s, WDW currently is surviving off brand loyalty and a lack of competition in certain market segments. It took the Japanese knocking Detroit on its butt and a government bailout to effect change.

WDW is not Detroit but if Universal starts targeting lands and attractions at WDW's core family audience, then WDW could be in for a world of hurt.

Seriously.....can it be said any better then this?
 

Cubfan300

Active Member
Okay and I'm saying that you're very VERY late to the economic conversation we've had to the past year. We've discussed at length the economic & quarterly statements and the minutia at great length in many, many threads.

I can tell you that this is not the first time that I have had to explain, to what appear to be educated people, how the search feature works.

You'll have to forgive the condescension but many people (specifically @ParentsOf4 ) have analyzed every quarterly statement for many years now.

We know what the mouse is saying. We're calling BS on this "recovery" and that its just smoke and mirrors to try and keep the stock price up.

I very thoroughly understand the conversation at hand; Don't be so defensive if you don't understand the complexities.
Hey, if you feel better about yourself by acting superior, knock yourself out. I believe in helping others and not being condescending, so, I will continue to post what is obvious to you for the benefit of those who may not be as smart as you. Late or not, the conversation is the ticket price increase and why and how it happened. Flame away!!!
 

Sans Souci

Well-Known Member
Hey, if you feel better about yourself by acting superior, knock yourself out. I believe in helping others and not being condescending, so, I will continue to post what is obvious to you for the benefit of those who may not be as smart as you. Late or not, the conversation is the ticket price increase and why and how it happened. Flame away!!!

Get off the cross, we need the wood.
 

Goofyernmost

Well-Known Member
I think most people only get single day passes.

Some people on these forums think nearly everyone in the parks are resort guests as well, but I think it's really 10-20% of their total daily guests.
This is a concept that my brain cannot accept. MOST people only get single day passes? Someone at some point mentioned a figure of 80%! What? 80% of locals that don't have AP's, perhaps, but, generally? If someone comes from another state, they are not going to be one day ticket buyers. I'm talking about offsite visitors here. They have already purchased their multi-day tickets, know how many days they are planning to stay and that is what they set up for. It would not make any sense at all to buy one day tickets ahead of time. Another thing that I would point to is if 80% is the number why aren't the ticket sales booth backed up to the parking lot. They don't even open most of them. My guess would be 20% day tickets. That would mean that the remainder buy multi-day tickets and do not pay that awful, almost $100.00 per day charge. That is why they can get away with it.

Thanks, you are making it very silly. That was not my argument at all, but I appreciate the silliness.
Your problem here is that you have tried to enter logic into the discussion. If your stand doesn't support their particular viewpoint then you will be bombarded with the silliest of silly reply's.

My wife got me tickets to the Bears Vs. Lions Monday Night Football game for Fathers Day last year with my father and grandfather (2012). I could have killed her for how much she spent for upper deck tickets, which were (face value mind you) $163 per ticket for this lovely view:
View attachment 46844
No comparison! I mean after all you pay $163 for two to three hours of entertainment, whereas you can get all day, 12 or more hours, at Disney. How dare they charge $100.00 for that. The argument concerning the connection with inflation rates is also as bogus as bogus can get. A place like Disney doesn't have to adhere to any cost of living scenario's, they do not provide a life supporting service, they provide a luxury item that even at a lower price is not accessible to many people. To even think that Disney has some kind of moral reason why they have to get only what we would like them to charge is the ultimate in silliness. It sounds snippy, but it is reality, like it or not, if people are willing to pay that price, extreme or not, then all the griping in the world is not going to change anything. If you stand there at the ticket booth and pay your $100.00 all the while you complain about the fact that Disney people are greedy, profit motivated idiots, they are going to laugh at that remark all the way to that bank. What the public will bear is the key phrase here. Until that point is reached, and we can give it lip service forever, it will continue to go up until no one pays it anymore. When that is going to happen is anybodies guess. If it happens at all. The bottom line is that Disney (and any other business for that matter) can raise prices because they want too. They do not have to justify it to anyone. Then we, the public, have to make up our minds, individually, whether or not it's worth the cost. That is the true value of it, not some chart of comparison. That influences nothing in this type of business.

I should point out that the charts are handy to see where everything stands in a reality base, but, it really isn't germane to the conversation. It is not likely that someone in the upper offices at Disney is going to see that and run to Iger and tell him that they should only be raising rates in line with inflation. It's good information to know, but, cannot really be used in the argument.
 
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Doug7856

Member
We decided to go to Disneyland in 2014 and not really do a Walt Disney World vacation this year; however, I've toyed with the possibility of one of the runDisney events. After reading about the price increase, I decided that I won't do a runDisney event either. I'm also considering renting our DVC points for 2015 and 2016 or just outright selling off our DVC. Perhaps absence will make the heart grow fonder, but I'm not optimistic. Its not so much that we can't afford it, its just that right now it's not worth it. We had a good visit last November but nothing compelling to return this year (we've been 30+ since 1979). Nothing awesome, but good. With the increased prices, I think we'll plan a cruise or a trip to Europe instead. I'm the go to Disney guy at work -- wish I could get a commission -- but I've been subdued in my recommendations of late and even recommended other options to my coworkers. After today's price increase, the reduced entertainment and limits on FastPass, it's just not a great vacation product anymore.
 

HouCuseChickie

Well-Known Member
That's just weird. I'm assuming this woman was not blind, right? She had working vision, a basic grasp of the English language, and at least 4th grade math skills?

If the answer is yes to those questions, then I have absolutely no sympathy for her. How on earth do you walk up to a Disney World ticket booth for eight days straight and not see the giant signs touting various multi-day ticketing options and all the associated hype on saving money with them???

Disney-World-Ticket-Booth.jpg


If a woman did in fact purchase single-day tickets from a WDW ticket booth for eight days straight, then she must be profoundly stupid. Or drunk.

I can't explain it...all I know is that she missed ALL of this. I think some people walk through life with blinders on. I think she got some idea in her head of what she was supposed to do/buy and completely tuned everything out around her. Her loss.
 

Mouse_Trap

Well-Known Member
I don't really want to keep this going and would rather organize a DCL cruise for everyone who is ed right now...but I will bite. San Antonio Spurs. $25 tickets for rather cheap seats...for 2 hours of entertainment. Multiply $25 by 5 to get 10 hours of entertainment to equal the length of entertainment at a day at MK. That is $125

This DOES NOT mean I like the raise in ticket prices. I just think it is about in line with all forms of entertainment in this country.

LOL just wait until you see Spuds play.....then see if you think that cheap for 90 minutes.

This is a concept that my brain cannot accept. MOST people only get single day passes? Someone at some point mentioned a figure of 80%! What? 80% of locals that don't have AP's, perhaps, but, generally? If someone comes from another state, they are not going to be one day ticket buyers. I'm talking about offsite visitors here. They have already purchased their multi-day tickets, know how many days they are planning to stay and that is what they set up for. It would not make any sense at all to buy one day tickets ahead of time. Another thing that I would point to is if 80% is the number why aren't the ticket sales booth backed up to the parking lot. They don't even open most of them. My guess would be 20% day tickets. That would mean that the remainder buy multi-day tickets and do not pay that awful, almost $100.00 per day charge. That is why they can get away with it.

I agree, if MK had 30,000 to 60,000 people lining up to buy a 1-day pass each day, I'd imagine the lines at the ticket booths would be pretty noticeable.

I've not seen any proper stats to support these claims, therefore it has as much creditability that 1-day sales make up no more than 10-15% of tickets sold.
 

John

Well-Known Member
This is a concept that my brain cannot accept. MOST people only get single day passes? Someone at some point mentioned a figure of 80%! What? 80% of locals that don't have AP's, perhaps, but, generally? If someone comes from another state, they are not going to be one day ticket buyers. I'm talking about offsite visitors here. They have already purchased their multi-day tickets, know how many days they are planning to stay and that is what they set up for. It would not make any sense at all to buy one day tickets ahead of time. Another thing that I would point to is if 80% is the number why aren't the ticket sales booth backed up to the parking lot. They don't even open most of them. My guess would be 20% day tickets. That would mean that the remainder buy multi-day tickets and do not pay that awful, almost $100.00 per day charge. That is why they can get away with it.


Your problem here is that you have tried to enter logic into the discussion. If your stand doesn't support their particular viewpoint then you will be bombarded with the silliest of silly reply's.


No comparison! I mean after all you pay $163 for two to three hours of entertainment, whereas you can get all day, 12 or more hours, at Disney. How dare they charge $100.00 for that. The argument concerning the connection with inflation rates is also as bogus as bogus can get. A place like Disney doesn't have to adhere to any cost of living scenario's, they do not provide a life supporting service, they provide a luxury item that even at a lower price is not accessible to many people. To even think that Disney has some kind of moral reason why they have to get only what we would like them to charge is the ultimate in silliness. It sounds snippy, but it is reality, like it or not, if people are willing to pay that price, extreme or not, then all the griping in the world is not going to change anything. If you stand there at the ticket booth and pay your $100.00 all the while you complain about the fact that Disney people are greedy, profit motivated idiots, they are going to laugh at that remark all the way to that bank. What the public will bear is the key phrase here. Until that point is reached, and we can give it lip service forever, it will continue to go up until no one pays it anymore. When that is going to happen is anybodies guess. If it happens at all. The bottom line is that Disney (and any other business for that matter) can raise prices because they want too. They do not have to justify it to anyone. Then we, the public, have to make up our minds, individually, whether or not it's worth the cost. That is the true value of it, not some chart of comparison. That influences nothing in this type of business.

I should point out that the charts are handy to see where everything stands in a reality base, but, it really isn't germane to the conversation. It is not likely that someone in the upper offices at Disney is going to see that and run to Iger and tell him that they should only be raising rates in line with inflation. It's good information to know, but, cannot really be used in the argument.

You are absolutely correct and I think that most people here understand that. The problem most people have is the value for the price increase. They could have raised the price to $110 and I doubt there would be much movement in attendance.

Its true that they are investing in the resort. Just not what we want. But isn't that the point? They are raising ticket prices, recording profits year after year and the product continues to languish in stagnation....from our point of view. So do you believe that the ticket price raise is a non issue? Shouldn't even be discussed?


Something that has been puzzling me from the very first day I joined the blue pages. We all seem to pick sides...which I understand. But if we all agreed about ALL the issues confronting WDW why would WDW Magic exist to begin with?
 

ford91exploder

Resident Curmudgeon
Hey, I lived in Chicago for 11 years.

I got to see the Bears Superbowl season.:)

I got to see Jordon's championships. :)

I got to see the Cubs. :eek:

The problem with using professional sports as an analogy with theme parks is that sports have winners and losers.

Theme parks don't have to.

But if you want to use a baseball analogy, then right now Universal is the Boston Red Sox with 3 World Series titles in the last 10 years.

Right now, WDW is the Cubs.:banghead: (How was that 66-and-96 season anyway? ;))

I prefer UNI as the Globetrotters, With WDW these days playing the role of the hapless Washington Generals...
 

ford91exploder

Resident Curmudgeon
Cubs fans are not pixie dust snorting delusional fans who think they are World Series contenders. The dream of a WS title are usually dashed by late June/ early July yet continue to attend games. Cubs fans accept that they are perennial non contenders but yet they still would not pass on the chance to experience an afternoon at the park.

As a long term Red Sox fan, for many years it was that way for the Sox as well, We had 80 year old fans hoping to live long enough to see the Sox win a world series.
 

Goofyernmost

Well-Known Member
You are absolutely correct and I think that most people here understand that. The problem most people have is the value for the price increase. They could have raised the price to $110 and I doubt there would be much movement in attendance.

Its true that they are investing in the resort. Just not what we want. But isn't that the point? They are raising ticket prices, recording profits year after year and the product continues to languish in stagnation....from our point of view. So do you believe that the ticket price raise is a non issue? Shouldn't even be discussed?


Something that has been puzzling me from the very first day I joined the blue pages. We all seem to pick sides...which I understand. But if we all agreed about ALL the issues confronting WDW why would WDW Magic exist to begin with?
No, I don't think it shouldn't be discussed. but it is a separate issue. It's just that Disney and the public has placed a value on what exists currently, not what used to exist or will exist. If the public feels that what is currently there is enough to justify the expense then they will continue to support it. It is an individual decision, but, it has to be exercised individually by just not going. You don't decide not to go as a protest, because that is cutting off your nose to spite your face, you do it because your idea of the value is not as high as Disney's idea.

To clarify, when I said "your" I mean that generically, not specifically you! :)
 

Animaniac93-98

Well-Known Member
Some numbers @ParentsOf4 might find interesting:

- In 2012, Orlando attracted 57 million visitors in total, only 4 million of which came from outside the US (with Canadians making up a quarter of that and Brits and Brazilians making up the next largest foreign visitors). Business travellers made up 10 million in total. The same year, Magic Kingdom had 17.5 million visitors

- Annual Hotel occupancy in the LBV area was 78.3% in 2013, higher than any other Orlando "area". The ADR was $112.82. RevPar was $88.34. http://corporate.visitorlando.com/research-and-statistics/ also provides monthly and weekly information of this kind.

What does this information have to do with anything? I'm sure he'll eventually figure something out, but it's interesting stuff to read and freely published for all to see.
 
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GoofGoof

Premium Member
I think most people only get single day passes.

Some people on these forums think nearly everyone in the parks are resort guests as well, but I think it's really 10-20% of their total daily guests.

Plus not everyone goes for 7 days or even 5. The multiday passes are great for extended trips, but for a long weekend or a day or 2 at the end of a conference they don't work.

Not that it really matters, but I think the resort guest number is probably closer to a 50/50 split. If there are roughly 30,000 rooms on property. The average room occupancy is around 80% so 24,000 are occupied. Assume an average of 3 people per room so 72,000 total people. Some percentage of those guests will spend the day shopping, at the pool or visiting the boy wizard or Shamu. Let's assume 10% don't visit a park. So that's 65,000 on property guests in the parks per day. Based on TEA numbers (Maybe not accurate, but the best we have) the MK averages 48,000 guests a day, EPCOT 30,000 and DHS and AK about 27,000 each so a total daily average of 132,000. That's roughly 50% of guests in the parks staying on property. If you adjust some of the assumptions (especially the 10% which is a shot in the dark) you could probably get to 40/60 in favor of off property.
 

Animaniac93-98

Well-Known Member
I'm also not sure why some are so confident that only 10-15% of WDW visitors are day guests. I'm no saying 80% is correct, but given the small % of Orlando area tourists WDW actually represents, is it that hard to believe that there's a sizeable group of people who only want to go for a day before moving on to something else?
 

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