Ticket Price Increase - Feb 2014

[ParentsOf4]

No doubt about it now. MyMagic+ obviously is bleeding cash. Iger and Rasulo are desperate to show Wall Street something and decided they cannot wait another quarter.

This price increase is only a couple of weeks after Iger's hugely embarrassing Q&A when he twice was asked about MyMagic+ financials, and the best he could muster was "we are not even close to being able to quantify it".

Seriously, this is corporate Disney circling the wagons and admitting that MyMagic+ has become a money pit. Raising ticket prices out-of-sync with previous years while MyMagic+ is advertised as in "test".

WDW might have just turned a corner, and it's not for the better.

All I need to do is look at the photos of the FP+ kiosk lines and the FP+ lines to feel truly concerned about WDW's future.

 

[ford91exploder]

Not sure why, but the first thought that came to my mind when i saw this is maybe this is Disney's way of getting Universal to be the first one to cross the 100 dollar barrier. Seems like that was the limit no one wanted to be the first to go over (granted, after tax it's already happened, but public perception is always based on the advertised price). Universal will certainly raise their prices this year too, and in an effort to stay on top, it wouldn't surprise me if they match the MK price or more.

Why SHOULD UNI raise prices, I'd be inclined for a token CUT like a dollar or so and beat WDW over the head for 'no new attractions and price increases', UNI could always raise prices AFTER Disney does its usual August price increase. Does anyone think that this will be the ONLY WDW price increase this year...

 

[rudyjr13]

A surprisingly large number. Like upwards of 80% of walk-ups (shocked me when I heard this).

That is surprising. I wonder how many +4 dollar tickets that is

 

[ford91exploder]

The only way to get them to stop is for the masses to vote with your wallet. Until the masses spend their money somewhere else, price increases to a stale product will continue.

I’m going to take the contrarian point of view here and at say least the timing of their increase is well thought out. Disney has now set the benchmark in a year that Universal is expecting massive crowds and could get away with a larger than $4 increase without much pushback. Does Universal now feel pressure to keep their inevitable price increase in line with Disney’s? Right now their 1 day single park ticket is $2 above a non MK park. Would they dare match or even go above MK’s price even if it is a newer fresher product?

Right now the best countermove UNI could do would be a price REDUCTION it would drive guest traffic to a degree and hurt WDW by limiting their freedom to do the normal in-cycle price increase.

 

[omurice]

What's troubling to me is each company can point down the road to the other and claim that market forces are raising the price. But the lock-step increase that will surely follow up I-4, supposedly driven by an open market, at what point do these increases stop behaving like the free market and start to resemble cartel style price fixing?
(Not a conspiracy theory, just feeling "used".)

 

[71jason]

No doubt about it now. MyMagic+ obviously is bleeding cash. Iger and Rasulo are desperate to show Wall Street something. They cannot wait another quarter.

This price increase is only a couple of weeks after Iger's hugely embarrassing Q&A when he twice was asked about MyMagic+ financials, and the best he could muster was "we are not even close to being able to quantify it".

Seriously, this is corporate Disney circling the wagons and admitting that MyMagic+ has become a money pit. Raising ticket prices out-of-sync with previous years while MyMagic+ is advertised as in "test".

At what point do they just switch to a pay-for-FP model (keeping it free for deluxe guests)? It seems the only way to quickly monetize the system, which is what Wall St. is going to demand sooner rather than later.

 

[71jason]

That is surprising. I wonder how many +4 dollar tickets that is

A conservative estimate might be 12,000 guests a day (assuming 30,000 total on a slow day, and busy days averaging out the slow ones). That would roughly $50k/day. Again, I'm probably low-balling tho. Pure profit, already hired the ticket seller.

 

[NomeKing88]

I imagine UNI/Comcast are simultaneously LAUGHING and staring at WDW in horror as one would view a sinking ship. They are about to build a huge E-ticket King Kong ride AND open an entire LAND with game-changing attractions. And what does WDW have? A new parade and kiddie coaster. Like, really? UOR could match WDWs prices and STILL have a better excuse.

I honestly wouldn't be surprised if AK or DHS attendance plummets this year.

 

[crispy]

I imagine UNI/Comcast are simultaneously LAUGHING and staring at WDW in horror as one would view a sinking ship. They are about to build a huge E-ticket King Kong ride AND open an entire LAND with game-changing attractions. And what does WDW have? A new parade and kiddie coaster. Like, really? UOR could match WDWs prices and STILL have a better excuse.

I honestly wouldn't be surprised if AK or DHS attendance plummets this year.

Right now, they don't even have that! I seriously want whatever they are smoking because it has to be some good stuff!

 

[WDW1974]

The only way to get them to stop is for the masses to vote with your wallet. Until the masses spend their money somewhere else, price increases to a stale product will continue.

I’m going to take the contrarian point of view here and at say least the timing of their increase is well thought out. Disney has now set the benchmark in a year that Universal is expecting massive crowds and could get away with a larger than $4 increase without much pushback. Does Universal now feel pressure to keep their inevitable price increase in line with Disney’s? Right now their 1 day single park ticket is $2 above a non MK park. Would they dare match or even go above MK’s price even if it is a newer fresher product?

No offense, but the first part is total BS. If the most loyal oldtime fans decide to not go (speak with their wallets), then Disney will just replace us with some rubes from New Jersey ... or a Mommy Blogger from Denver ... or an awkward fanboi from Atlanta ... or some Brits who would be considered trash here, but are middle class there ... or some Brazilians etc ... Folks who have either no clue the product is stale or have a mental condition where they are addicted to it (like some folks and food!) or have Disney lifestyle businesses.

So, no, speaking with your wallet and not visiting doesn't harm them (not saying it may not be the right choice for some, though).

UNI will go higher than MK. Take that to the bank.

But this increase was/is all about MM+ and making the next quarter's numbers look good.

 

[orky8]

Yeah, it only cost $2B to get this:

To summarize on the left is a CM standing at the back of a line (that never existed before) holding a sign saying FP wait time 15 minutes.

I would pay $100 to go Epcot as it was in the early 90s, though...

 

[ford91exploder]

No offense, but the first part is total BS. If the most loyal oldtime fans decide to not go (speak with their wallets), then Disney will just replace us with some rubes from New Jersey ... or a Mommy Blogger from Denver ... or an awkward fanboi from Atlanta ... or some Brits who would be considered trash here, but are middle class there ... or some Brazilians etc ... Folks who have either no clue the product is stale or have a mental condition where they are addicted to it (like some folks and food!) or have Disney lifestyle businesses.

So, no, speaking with your wallet and not visiting doesn't harm them (not saying it may not be the right choice for some, though).

UNI will go higher than MK. Take that to the bank.

But this increase was/is all about MM+ and making the next quarter's numbers look good.

@WDW1974, Would not a token price DECREASE from UNI be a good strategy especially if they plan to make it up later when Disney raises prices AGAIN this year?

 

[ford91exploder]

Yeah, it only cost $2B to get this:

View attachment 46817

To summarize on the left is a CM standing at the back of a line (that never existed before) holding a sign saying FP wait time 15 minutes.

I would pay $100 though to go Epcot as it was in the early 90s, though...

Holy C--p Batman I have NEVER seen a line like that for KS in all my years of visiting AK!!!!

 

[Mr Bill]

Universal doesn't need to drop their prices a penny right now. They'll have an actual justification for raising them soon enough.

 

[NomeKing88]

I would totally pay $100 to visit DL (during not-so-crowded summer with fireworks + Fantasmic!) because a day there is worth it. But $100 for MK? No thank you.

 

[rudyjr13]

A conservative estimate might be 12,000 guests a day (assuming 30,000 total on a slow day, and busy days averaging out the slow ones). That would roughly $50k/day. Again, I'm probably low-balling tho. Pure profit, already hired the ticket seller.

So 40-50 days and there's your 2 billion. From a business perspective it's genius if people continue to pay it. Sick but genius.

 

[Andrew C]

Darn, I just created this a few weeks ago.

I didn't think I'd need to update it so soon.

View attachment 46815

And we still have 10 months for a second increase this year.

I blame President Obama here, not Iger. haha

 

[englanddg]

So 40-50 days and there's your 2 billion. From a business perspective it's genius if people continue to pay it. Sick but genius.

I think your math may be a little off there...using those estimates.

 

[ford91exploder]

Universal doesn't need to drop their prices a penny right now. They'll have an actual justification for raising them soon enough.

Agree they don't NEED to, Price is a weapon to be used against competitors like any other and it could be very effective in pulling people AWAY from Disney even for 1 day which would benefit UNI and hurt WDW.

 

[orky8]

So 40-50 days and there's your 2 billion. From a business perspective it's genius if people continue to pay it. Sick but genius.

Except Wall Street isn't (I hope) that dumb. The legitimate question is still going to be what ROI has MM+ delivered. The ticket price may deliver the needed money to boost the quarter, but it still won't address that question unless Iger can somehow link MM+ to allowing the ticket price increase.