Ticket Price Increase - Feb 2014

[BrianLo]

For comparison sake, it would cost about $60.50 USD for a one day ticket in Tokyo... for the far superior TDL and TDS.

Considering you can get an on the monorail partner hotel for the $120 a night range (if you time your dates correctly), I don't understand why people don't just utilize the savings for the plane ticket.

 

[orky8]

For comparison sake, it would cost about $60.50 USD for a one day ticket in Tokyo... for the far superior TDL and TDS.

Considering you can get an on the monorail partner hotel for the $120 a night range (if you time your dates correctly), I don't understand why people don't just utilize the savings for the plane ticket.

Not sure if you have kids, but cost is not the only reason I don't want to fly to Japan. Though I really do want to see TDL and TDS.

 

[rudyjr13]

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

Right. The number is so fracking high I forgot there were three more zeros. So not so black and white but as 74 says they are tied together.

Thanks for the help

 

[rudyjr13]

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.

Makes you wonder if Wall Street cares either way as long as the stock continues to rise.

 

[WDW1974]

@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?

Nope.

They have the product that justifies their prices. I will be buying an AP for UNI this year for the first time in many (largely due to getting in on comps).

They gain nothing from decreasing their prices. It could even hurt as it would be a sign that they had overstepped and that their product wasn't (get laugh track ready) as good as Disney's.

 

[BrianLo]

Not sure if you have kids, but cost is not the only reason I don't want to fly to Japan. Though I really do want to see TDL and TDS.

I assume you mean the amount of time spent on a plane?

 

[alphac2005]

At best, that's an apples to oranges comparison; More likely, its something like apples to cucumbers. Both are food items, but the similarities largely end there. A theme park is not a sporting event, a concert, or a play. It's a theme park. For every entertainment activity you can name which is more expensive, you can name ten which cost a tiny fraction of a Disney one-day ticket (movies, mini-golf, fishing, museums, etc.).

The better comparison would seem to be other theme and amusement parks, maybe traveling carnivals, or even a county fair midway. indeed, the Magic Kingdom (at least) is worth a premium over some of those other parks and attractions - but how much of a premium, and since other central Florida parks tend to take something of a lead from Disney when it comes to pricing, are those comparison parks themselves reasonably priced.

Thank you. It gets tiring reading the countless analogies of it being less than a Broadway play or concert, etc., etc. So, if people want to play the comparison game, news flash, even though NYC and Chicago are theater havens, the vast majority in this country doesn't live in those cities, and most major cities have show tickets substantially less than a day at DISNEY PARKS (R) (TM) (C) (SM) (WHATEVER). Concert prices outside of some of the audacious old timers from The Stones to Cher have come down substantially and many sporting leagues have problems with average fans filling their seats because they're priced so high. The comparisons as you've noted are simply bogus.

So, for our example, we're here in ATL. Six Flags always has deals going on. Bring a can of Coke, get in for $35, or $50 for a seasonal AP. Things like that. Those are the comparisons to make. You can't even make the argument of incredible, showstopping quality at WDW is why the price is justified anymore.

So, for $94 bucks and I only like actual rides and go to the Hollywood Studios, I can get those rides done in less time than a movie. Movie $7 matinee, Studios $94. Just like you said, you can come up with countless comparisons that are the flip of that tired show analogy.

Thank you, thank you.

 

[omurice]

How do they get to 2 billion in 40 to 50 days?

My fuzzy, back of the napkin math --
Say 75% of guests purchase one day tickets -- this seems high to me but okay...
This increase works out to an extra $54M per year at MK (18M ppl x 75% x $4). About +$87M extra for the other 3 parks per year (29M ppl x 75% x $4). If you believe attendance numbers on wikipedia (could be low or could be high). But, just the 1-day ticket increase alone could feed around
$140 million
to their coffers in just one year.

Slightly more cash if the MYW multi-day and APs also go up about 5%. No idea how much that would total out to, and no word yet how much other tickets/passes are going up. But $140M per annum does help pay off the NGE boondoggle faster, makes the books look more balanced.

So 2 billion would take about 14 years, or less if the other tickets/passes go up too.

This increase is brilliant. And it's also a careless, short-sighted and greedy quick fix -- but still brilliant if it helps sweep NGE losses under the carpet faster. If they get away with this, and it doesn't lose them some guests.
Twitter and FB are going to be a-buzz for a while...

 

[WDW1974]

For comparison sake, it would cost about $60.50 USD for a one day ticket in Tokyo... for the far superior TDL and TDS.

Considering you can get an on the monorail partner hotel for the $120 a night range (if you time your dates correctly), I don't understand why people don't just utilize the savings for the plane ticket.

Many of WDW's bread and butter customers are too damn afraid of crazy California to visit DLR. They are never leaving what they believe is the best place on Earth for some inferior place where the people may speak a different language and the food and customs may be different. Yes, I am saying that many WDW guests are total Walmart trash. And that's just how Disney likes it.

 

[ford91exploder]

Nope.

They have the product that justifies their prices. I will be buying an AP for UNI this year for the first time in many (largely due to getting in on comps).

They gain nothing from decreasing their prices. It could even hurt as it would be a sign that they had overstepped and that their product wasn't as (get laugh track ready) as good as Disney's.

Good points, Since I am in the IT hardware business price is often a club we beat competition so was looking at that approach, DW and I will also be buying UNI AP's this year and evaluating whether to allow Premier Passports to expire.

 

[WDW1974]

Not sure if you have kids, but cost is not the only reason I don't want to fly to Japan. Though I really do want to see TDL and TDS.

They won't eat your children there, I promise. ...

 

[Future Guy]

For the last 20 years or so, Walt Disney World management has been pursuing a strategy of cutting attractions, entertainment, maintenance, and anything else that might contribute to a positive customer experience while constantly raising prices.

It's time to stop giving them our money.

No, I'm not saying that "voting with your wallet" and spending your vacation money elsewhere will somehow cause WDW management and Disney corporate leadership to reverse course and stop fleecing their customers. I'm saying that since they're never going to stop fleecing their customers it makes no sense to continue to be one. And if you're the kind of person who knows he's getting the worse end of the deal and continues to come back anyway, then may the deity of your choice have mercy on your soul, assuming you have one.

 

[ford91exploder]

They won't eat your children there, I promise. ...

No they are radical vegans they don't eat children, now if you have a bag of quinoa in your backpack well...

 

[orky8]

I assume you mean the amount of time spent on a plane?

Indeed. At least for young kids, which seems to be TDO target demo more and more.

 

[Animaniac93-98]

They won't eat your children there, I promise. ...

They won't, but Godzilla might.

Can't be too careful.

 

[ford91exploder]

Right. The number is so fracking high I forgot there were three more zeros. So not so black and white but as 74 says they are tied together.

Thanks for the help

That's where using a slide rule to multiply helps because you MUST keep track of the magnitude... Plus they are green in that they require no power (other than thought) and are made from renewable and recyclable materials.

 

[Californian Elitist]

I'm guessing a price hike for the DLR tickets isn't far away. Good thing there are a plethora of other options in California to keep me entertained.

 

[WDW1974]

For the last 20 years or so, Walt Disney World management has been pursuing a strategy of cutting attractions, entertainment, maintenance, and anything else that might contribute to a positive customer experience while constantly raising prices.

It's time to stop giving them our money.

No, I'm not saying that "voting with your wallet" and spending your vacation money elsewhere will somehow cause WDW management and Disney corporate leadership to reverse course and stop fleecing their customers. I'm saying that since they're never going to stop fleecing their customers it makes no sense to continue to be one. And if you're the kind of person who knows he's getting the worse end of the deal and continues to come back anyway, then may the deity of your choice have mercy on your soul, assuming you have one.

Again, it is different for everyone, but I don't agree.

If you stop visiting entirely, then you do what they want and further destroy what WDW was. You lose any right to complain as a consumer or even as a fan to the company because you aren't a visitor. Why would they ever have to deal with you. I KNOW Disney doesn't want me at WDW. That, sadly, may be the one of the reasons I still go a few times a year.

 

[kagacins]

I originally posted this in another thread, but thought it would also be useful here - I apologize if I'm not supposed to post repeat replies like this.

These types of charts are out there, but here is one I've put together including information regarding the latest ticket price increase to $99 for the Magic Kingdom from today (for the 1 day, 1 park ticket). It is an analysis of Magic Kingdom ticket price increases vs. inflation. The ticket price data comes from AllEars, so many thanks for that. The baseline year for my analysis is 1983 (I think the first full year changeover away from ticket books to All-Access tickets). There are a few basic assumptions (like inflation for 2014 will equal inflation for 2013) and a slight simplification of the average Magic Kingdom ticket price for each year, but the basic message is pretty straightforward. In most years, Disney increases the the ticket price by about 5% more than inflation. Factored all together, Disney has cumulatively exceeded the pace of inflation relative to 1983 by 375%. Yowzah. I have not done much benchmarking for comparative analysis (i.e. how have other parks compared to inflation), but I could certainly try that if there is enough interest (and if I can readily access historical ticket prices for other parks). I hope this helps to add a little context to some of the pricing discussions, as well as some additional fodder for the cannon of "is the value really there?" Me, I love my times at The World, but graphs like this definitely put a little cloud over Cinderella's Castle. Let me know if you have any questions!

 

[WDW1974]

Indeed. At least for young kids, which seems to be TDO target demo more and more.

Drug the kids! ... Or just leave them with grandparents or aunts and uncles ... But go to Tokyo. Amazing city. Amazing theme parks. GO!