WDW decides to lose money

[25and7]

Wow, someone needs to take an course in Economics ASAP!

Look, it's relatively simple.. it's all about supply and demand. If Disney thinks they can book all of their rooms for a higher rate they are obviously going to do so and fill up their rooms at the normal non-discounted price. Think about it, why on earth would they release the AP rates for October if they are booking rooms without any problem without any discount factored in. Where on your AP does it say that Disney must remain loyal to their costomers even if it means making poor decisions to just make people happy? :veryconfu

Persoanlly, I applaud Disney in this situation for not releasing the AP rates yet. The past 3 years have been very sub par for the theme parks due to the affect of 9/11 and now Disney is finally rebounding to the state that they were in prior to 9/11.

And one more thing, how is it Disney's fault that the rooms that you were interested in are already booked? They obviously filled those rooms with people who are willing to spend their money and are obviously going to spend money around the parks too during the duration of their stay.

Horay Disney! :sohappy:

 

[wannab@dis]

I look foward to many happy trips using my AP discount to come!!! Belle

But if you don't get a discount, you won't just totally quit going and say that Disney has wronged you for not giving you a discount, right? I bet you would still visit, just maybe not as often. Then, when you go the next time, you would get to enjoy the additions / rehabs that the extra money made from the rack rates are going to offer.

 

[25and7]

they arent losing enough money to even count as a fraction of what they make in a year. They make BILLIONS each year. do you think they'll care if they lose a couple of hundred thousand? Of course not.

Amen to that bro.

And its not like they are even losing any money out of this situation. They are obviously filling rooms for the month of October without a problem, otherwise they would have released the AP rates already. If anything they are making money by booking the rooms at a higher rate.

 

[speck76]

I don't feel like I'm 'entitled' to anything and that's not what I said.

Let me build on a catch phrase from Yellow Shoes. 'Business 101' also states that there is significant value to be placed on return business. The question is, do you make more money from the person who returns 30 times at a discount or from the guy who visits once or twice at full retail?

The answer seems pretty clear, and the concept of entitlements never even occurred to me.

I believe you missed the point entirely.

Business 101 also says that if your repeat guests that spend less on each occurance are displacing better paying customers, the loyalty factor is a non-issue.

In the 3rd Q, WDW resorts ran 88%......considering the refurbs that are currently going on, you can basically see that the hotels were sold-out the vaast majority of the time. It makes no sense to offer the repeat guests a discount and turn away the higher paying guests.

 

[wannabeBelle]

But if you don't get a discount, you won't just totally quit going and say that Disney has wronged you for not giving you a discount, right? I bet you would still visit, just maybe not as often. Then, when you go the next time, you would get to enjoy the additions / rehabs that the extra money made from the rack rates are going to offer.

Correct about the not as often part. Plus I dont know if I could get others to go. For example when Disney came out with the Free Dining plan (another form of a discount) I know I personally have got three families that are or are going to be taking advantage of this!!! If there was no discount, I Am not sure if any of them would have gone at all!! Disney Marketing has continually released discounts of one form or another for as long as I have been following this (Probably back to 2000 or so)It may not always be the highest discount, or you may not be able to get the resort that was your first choice. There are blackout periods and of course some hotels are notoriously difficult to get at an AP rate such as the Wilderness Lodge or the Coronado. THAT is understandable. If they cut out all discounts altogether, people ( not just me) may take their money elsewhere. I know of at least one all inclusive resort that gives discounts for its repeat customers. Why wouldnt Disney? So far Disney and I have a very happy little relationship. They dont show any signs on ending it and so far I see them working to make it easier for me to plan in advance!!! Thanks all!!! I appreciate it!!! Belle

 

[25and7]

no way, in fact annual passholders come and go all the time. Disney could care less if they lost a few. the quarterly statements for the company said that it is a fact that annual passholders spend less money than ordinary guests therefore they want to pamper the ordinary guests better than the annuals.

thats just my idea...

also i think pumba is over reacting, there may not be any rooms left in the hotel that HE wants. there are (i believe) more than 30,000 hotel rooms on the Disney resort. not counting the ones on hotel bv. I think it wont hurt to go to another hotel.

not trying to be a jerk or anything guys! :wave:

EXACTLY!

Wow, you are clicking on all cylinders in this thread!

I mean think about it, probably about 90% of AP holders use their passes for 2 trips by going twice within a 365 day period. Therefore, Disney is obviously not making any profit on the second trip that the family takes on their AP's.

I'm an AP holder and I must say that I am not the lease bit offended if Disney takes away many of my benefits that I receive as a AP holder. We're already basically using the system to our advantage by using the tickets twice and thus saving hundreds of dollars. Thats plenty enough of a benefit for me.

 

[wannab@dis]

I'm an AP holder and I must say that I am not the lease bit offended if Disney takes away many of my benefits that I receive as a AP holder. We're already basically using the system to our advantage by using the tickets twice and thus saving hundreds of dollars. Thats plenty enough of a benefit for me.

Very good post and also very true! :wave:

 

[bgraham34]

With the rising price of oil, i can bet in the not too distant future the average person will no longer be able to go and the passholders will once again have there discounts that they have been use too the last few years.

 

[disneylands]

EXACTLY!

Wow, you are clicking on all cylinders in this thread!

I mean think about it, probably about 90% of AP holders use their passes for 2 trips by going twice within a 365 day period. Therefore, Disney is obviously not making any profit on the second trip that the family takes on their AP's.

I'm an AP holder and I must say that I am not the lease bit offended if Disney takes away many of my benefits that I receive as a AP holder. We're already basically using the system to our advantage by using the tickets twice and thus saving hundreds of dollars. Thats plenty enough of a benefit for me.

YES finally someone who agrees with me on something!!:lol: :wave:

 

[Bluewaves]

Umm, lets see here if I have a car that I can sell for 10 grand I should sell it for 8 grand just to make you happy.

Umm if you didn't realize it Disney looses money on AP's thats the long and the short of it. They offer the rates to you in order to fill up empty rooms and thats the long and the short of it. Now in 2007 when I plan on doing the marathon and then coming back later in the year to spend a couple of weeks after I get married then I am going to get an AP it would just be cheaper.

So grow up. You get the AP discounts as a benefit not a privelage.

 

[The_CEO]

I hope Walt Disney World is satisfied with the money they are losing from the frequent visitors that are cancelling trips or are otherwise foregoing visits to WDW. Count us in that bunch.

We're annual passholders and have travelled to WDW more than 30 times, twice just this year. We have been planning an October trip for some time but have been waiting for the AP rates to become available. We couldn't use their ridiculous new web booking tool because, when it was implemented, we were under the 120 day mandatory minimum advance booking requirement. So, like a lot of people, we've been waiting for the AP rates to become available through their regular booking phone line.

I talked to them this morning and...gee, big surprise...they still have no AP rates for October, but the big kicker was that the standard rooms in our preferred resort are now fully booked and not even available at any rate.

As often as we go to WDW we sure can't afford full retail rates for their resorts. So, we have no choice but to cut down on the visits. It is clear that the philosophy they're taking is that they don't need to offer frequent visitors any discounts because they can find enough guests who will pay full price to fill up their resorts. They apparently think they don't need to appeal to frequent visitors any more.

I hope they are pleased with all this new money that they THINK they are making. They have lost 2 more frequent visitors and our piddling little contribution to their corporate coffers. But, I guess that means little to Disney. I mean, who cares about 2 measly guests. Others will come and spend more money that we will.

Be happy you can even afford to visit enough to use an AP?

Ah' that's it.

 

[25and7]

YES finally someone who agrees with me on something!!:lol: :wave:

Well bro, it's pretty easy to agree with you on this one. You are one of those people who looks at the big picture and thats why everything you have said thus far on this thread has made perfect sense. I have to give credit where credit is due and i must say that you really do understand the key principals of running a sucessful corporation... there is only one major principal inparticular: MAKE MONEY WHERE THERE IS MONEY TO MADE!

 

[pumba100]

I think pumba is over reacting

And thank goodness that there are those of us who have the guts to do so! It helps to counter those of you who are content to sit on your hands and let these corporate giants drain our pocketbooks.

 

[wannab@dis]

And thank goodness that there are those of us who have the guts to do so! It helps to counter those of you who are content to sit on your hands and let these corporate giants drain our pocketbooks.

Alright, you the man! You tell them! You make them hurt!

Just one less person in line for me and an easier time to get a room and a PS.

 

[brich]

Everybody is missing the point. Disney wants to make the most it can from each room to help finance the Monorail expansion. Thats all.... :lookaroun

This was my first year as an AP holder, and of course it's the year the implement some changes. I used the Best Buy program and was happy with the discount I was offered rigtht off the bat. That's why I booked. Of course, any additional deals will be welcomed.

I think it's simply time that Disney pulls in the reins and tries to maximize the current attendance growth. As a shareholder, I don't blame them. As an AP holder, I would rather a great deal on my room. The point is, so long as we gripe about lack of improvements, new rides, bad show, the trade off is, we can expect to see our cost to enjoy WDW go up in order to address the issues.

It's disheartening to those AP holders who continued to support Disney over the past few years while attendance was down. But the world is brighter for Disney now and we should understand that for Disney to continue to grow as a company and to continue to make us happy, they need to capitalize on the current demand. As much as it seems to be a slap in the face. You can't hate Disney for trying to do what's best for all. There will always be those left out in the rain. Just get a Mickey poncho and enjoy it for what it is...

 

[EvilEmperorZurg]

rates

I am not sure how many of you people that are on here our Pass Holders and not floirda residents. I know that I never use the Pass Holder discount for resorts, the florida discount is so much better. I mean I stayed at Port Orleans last weekend and there were a ton of rooms available. Unless they are booking up for after the weather gets cooler, I think that their season is almost over. I mean around october you ususall can get the animal kingdom lodge at about $125 a night. Well that is what I paid last year. Last week Port Orleans was only $95 a night....Dinsey is just like any other company, if they can get people to pay full price, more power to them.

 

[se8472]

to my understanding, most of WDW income comes from people who come just once or twice in there lives.

 

[wannabeBelle]

Umm, lets see here if I have a car that I can sell for 10 grand I should sell it for 8 grand just to make you happy.

Umm if you didn't realize it Disney looses money on AP's thats the long and the short of it. They offer the rates to you in order to fill up empty rooms and thats the long and the short of it. Now in 2007 when I plan on doing the marathon and then coming back later in the year to spend a couple of weeks after I get married then I am going to get an AP it would just be cheaper.

So grow up. You get the AP discounts as a benefit not a privelage.

OK the analogy you are using will work with a few slight modifications. The car you are selling you price at 10 grand, however a company (AP holders) says not only will they buy that car, but quite a few more and will continue to buy cars for the next many years to come. The only thing that they are asking is to provide a group discount. Are you obligated to?? No by all means you can try to sell your cars at any rate you want and to whomever you want. Will selling them in a group rate be less profitable? Maybe not!! Think about it. Disney is certainly not marking these rooms down below a profit that is for sure. To sell 5 rooms at a smaller profit may be equal to one or two rooms at a larger one. Is Disney losing money? nope definitely not or they would have done away with this a LONG time ago!!! In the end it is up to the Seller ( You or Disney) to market your product in the best way possible to obtain the highest level of profit available. If you choose to not sell the car to the company that offered to buy it at a reduced rate, there is the chance that you will not sell it at all, and end up paying out maintainance and upkeep ( As Disney would do with the hotels) while you wait for someone to purchase your car!!! Just MHO Belle

 

[disneylands]

And thank goodness that there are those of us who have the guts to do so! It helps to counter those of you who are content to sit on your hands and let these corporate giants drain our pocketbooks.

try to make a big deal about it. Do everthing you can. Im serious. it does take guts to stand up against a mojor corp. but believe me, they arent going to care. thats how EVERY company makes money.

on another note... drain your pockets, i dont mean to sound rude but if you dont like the way disney is treating you than why dont you ditch your annual pass. IDK im not a passholder so I dont know if its really valuable. but there is not much you can do, no one is forcing you to go to disney which is why you wont win a fight. ya know?

 

[wonka]

Man, some of you are quick to whip out the claws. Sheesh. One thing the original poster is entitled to - their opinion. Yes, yes, you're entitled to yours as well, but some of these responses are borderline rude.

The bottom line - Disney is in this to make a profit, everything else is secondary. If your business can't make a profit, eventually you won't have a business. That fact is even more true for a publicly traded company, because you then have to consider your shareholders as well.

Disney will offer discounts, gifts, and special offers to lure new business in or to keep existing business - but it is only fiscally responsible to do this when you need to, not because you have in the past. If the market is good, you keep your prices stable. When the market slumps, you offer your product at a reduced rate, or with special bonuses. When the market returns to normal, you end those programs and offers.

It's simply supply and demand - if someone is going to pay full price for a room and on top of that, there is someone behind that person who is also ready to pay full price if they won't, you can be sure they are going to hold off on announcing discounted prices.