Understanding Why Disney's Magical Express Is Ending

[Andrew_Animatronic]

If you didn't wait then congrats. You must have gotten on the bus right before it was ready to leave. Everyone else had likely been waiting 45-60 minutes. Nearly everyone I have ever talked to has had very long waits. Occasionally I meet someone who had little to no wait but they admit that the bus was already there waiting for a while before they got on. I'd rather have a rental car. We park hop a lot, go to CW beach, shop around Orlando, etc. And we do not take WDW transportation other than the DS ferry, the ferry across SSL, and a single monorail trip. Our car does not just sit in the resort parking lot. Now that they are charging for parking I will rent a car and stay off-site and still save nearly $400-$500.

We’ve used DME almost every time we’ve gone, and I never remember a wait over 15 mins. Half the time it’s walk right on.

 

[some other guy]

I just assumed it was "it was New Contract Time and neither Mears nor Disney would budge on each's demands of the other".

 

[ParentsOf4]

I just assumed it was "it was New Contract Time and neither Mears nor Disney would budge on each's demands of the other".

Many have asked why doesn't Disney charge for DME, rather than end it.

It could be that Disney and Mears could not agree upon a contract. Mears has been Disney's DME supplier for 15 years, and no one else in central Florida is in a position to replace Mears. Ultimately, Mears may have decided that they could be more financially successful going it alone.

 

[JoeCamel]

I just assumed it was "it was New Contract Time and neither Mears nor Disney would budge on each's demands of the other".

Many have asked why doesn't Disney charge for DME, rather than end it.

It could be that Disney and Mears could not agree upon a contract. Mears has been Disney's DME supplier for 15 years, and no one else in central Florida is in a position to replace Mears. Ultimately, Mears may have decided that they could be more financially successful going it alone.

Except for the Mears statement that the announcement was a surprise to them.

Would Mears punk them like that? I don't think so with all the other contracts they have. I think Disney did the numbers and decided this was the time that gave the most cover for a major shift. They get that their customer's don't like change but money talks louder than custom.

 

[some other guy]

Except for the Mears statement that the announcement was a surprise to them.

I can equally imagine Mears and Disney lying to each other and the public

 

[wutisgood]

Lyft and uber have been offering some insane promos. I made about a thousand dollars for ten hours of work. I am kind of concerned I will get hosed on surge rates in orlando anyways. My cheap routes to get rentals arent cheap anymore so I imagine those not going the cheap route are also seeing higher prices which will shift more people to lyft/uber and increase demand.

 

[ParentsOf4]

I can equally imagine Mears and Disney lying to each other and the public

Lying is too strong a word. Instead, companies carefully craft public statements in order to put the company in the best light possible.

Disney stated:

For nearly 50 years, Walt Disney World Resort has continued to evolve the guest experience to best suit the changing times. As we plan for the future, we are looking at how needs and preferences are changing across the travel industry, particularly in the way people want to get places faster, at their convenience.​

​

Vacationers have more options to choose from than ever for transportation, including ride-share services that save time and offer more flexibility to go where they want, when they want. In light of this shift, when Disney Resort hotel bookings open for stays in 2022, we will no longer offer Disney’s Magical Express service for airport transportation, starting with arrivals Jan. 1, 2022. We will continue to operate the service for new and existing reservations made at Disney Resort hotels for arrivals throughout 2021. Additionally, complimentary transportation options – such as buses, monorails and Disney Skyliner – will continue to be available within Walt Disney World Resort for Disney Resort hotel guests, including to and from all four theme parks.​

Disney's statement is intentionally obtuse. Despite "more options", DME remains an immensely popular service among WDW vacationers. Disney is not abandoning DME because "Vacationers have more options." Rather, a financial calculation was the determining factor in this decision. Putting it more bluntly, if DME cost Disney nothing, Disney would still be offering it.

Similarly, if we look at the statement from Mears:

Walt Disney made us aware of their decision. While we are disappointed Disney will no longer offer this service, we intend to continue offering transportation services between the airport and all area theme parks and hotels to meet the demand of our visitors now and in the future.​

This does not preclude Disney and Mears from having attempted to explore modified terms, only that Disney made Mears "aware of their decision", whatever that decision may have been.

 

[some other guy]

Lying is too strong a word.

lol no it isn't
they're fibbing liars who tell falsehoods
unless you're literally being paid there's no reason at all to carry their water

 

[ParentsOf4]

lol no it isn't
they're fibbing liars who tell falsehoods
unless you're literally being paid there's no reason at all to carry their water

I am not being paid (directly or indirectly) by WDW or Mears.

Neither company statement contains a lie.

But neither statement reveals all details. They are both intentionally vague, that's all.

I respectfully suggest you think of it this way:

What specifically in either Disney or Mears statement is demonstrably false?

 

[some other guy]

There's a pretty big difference between sticking up for a company and just stating facts.

okay
I hope Mears and/or Disney buys you a beer since you're such a great pal.

 

[UNCgolf]

okay
I hope Mears and/or Disney buys you a beer since you're such a great pal.

Yeah, there's no chance Disney would ever want to buy me a beer if they read anything I post here.

 

[G00fyDad]

We’ve used DME almost every time we’ve gone, and I never remember a wait over 15 mins. Half the time it’s walk right on.

Again, lucky you. Everyone I have ever known has had long waits.

 

[bjlc57]

what I don't understand is HOW YOU GET MORE PEOPLE TO COME, if you offer less and charge more? attendance is way down due to the virus.. but if your consumers find some where else to go in the mean time.. how do you get them back by offering less services and charging more.. that's not good economics..

 

[John park hopper]

Disney has continued to make cuts in things they once offered as a perk (not really a perk you paid for it one way or the other). No resort free parking, no ME, no tram service, no EMH, no resort deliveries, etc etc. Disney is a business and they are in the business of making money --when people stop going then they will change but until then expect more cuts to things that once were a perk.

 

[jt04]

Disney has continued to make cuts in things they once offered as a perk (not really a perk you paid for it one way or the other). No resort free parking, no ME, no tram service, no EMH, no resort deliveries, etc etc. Disney is a business and they are in the business of making money --when people stop going then they will change but until then expect more cuts to things that once were a perk.

They can solve the parking issue with an annual parking pass and limited premium parking pass (resort parking included). ME can be replaced by light rail using Brightline tracks or Disney's own bus service on dedicated flyover (both long term prospects). EMH is back I think (mornings only). Tram service will have to return soon by necessity.

Point is, there are solutions and win win concepts for consumers and the mba's. IMO.

 

[bjlc57]

Disney is not the electric company nor the Gas company.. eventually the laws of economics will comply..

 

[Jrb1979]

They can solve the parking issue with an annual parking pass and limited premium parking pass (resort parking included). ME can be replaced by light rail using Brightline tracks or Disney's own bus service on dedicated flyover (both long term prospects). EMH is back I think (mornings only). Tram service will have to return soon by necessity.

Point is, there are solutions and win win concepts for consumers and the mba's. IMO.

Brightline is and never was going to be an ME replacement. I don't know why people keep pushing that.

 

[jt04]

Brightline is and never was going to be an ME replacement. I don't know why people keep pushing that.

I'm the one that keeps pointing that out. But there has been talk of them leasing track to entities such as Sunrail. Common practice in the industry. It would be a shame to have the right of way just sitting empty 95% of the time.

Or at least it we are serious about lowering emissions.

 

[Jrb1979]

I'm the one that keeps pointing that out. But there has been talk of them leasing track to entities such as Sunrail. Common practice in the industry. It would be a shame to have the right of way just sitting empty 95% of the time.

Or at least it we are serious about lowering emissions.

Disney is just a stop on an extension to Tampa. It's going to be no different then trains in other places. It's not meant to transport guests nom stop to and from Disney like Me was. Mears is the replacement

 

[ParentsOf4]

what I don't understand is HOW YOU GET MORE PEOPLE TO COME, if you offer less and charge more? attendance is way down due to the virus.. but if your consumers find some where else to go in the mean time.. how do you get them back by offering less services and charging more.. that's not good economics..

At least as it concerns WDW hotels, Disney doesn't want more people to come.

In the last full quarter before COVID hit, domestic hotel occupancy was at an incredible 92%.

Here's what Jay Rasulo, former Disney CFO, had to say about hotel occupancy in 2015:

You know, Michael, I think hoteliers in general will tell you that to try to fill a hotel beyond 89%, 90%, 91% is extremely difficult because to go beyond that, it takes too many matchups of people who are staying three nights, checking out; replaced by five nights; replaced -- in rapid succession. It becomes quite difficult.​

​

So I think that you are right -- that when you see occupancy in that kind of range, you are getting close to pretty much a full house.​

From Disney's perspective, the hotels are full. In fact, they are more than full. Guests are being turned away because no rooms are available.

Disney either can spend a lot of capex to build more hotels, which takes a long time to recover this investment, or Disney can eliminate expensive onsite benefits and pocket the cash right now.

It's ugly but true - Disney cares more about its bottom line than its Guests.