News WDW Resorts to add fees for parking

[EricsBiscuit]

I just emailed Bob Chapek and got a response call from his department saying that this is just a rumor.

 

[MrHappy]

Someone tried to bring magic there once. It caused quite a stir:

Magnificent! So well played

 

[flynnibus]

Charging for parking makes sense in New York, Chicago, or downtown in any major city. It does not make sense in 48 square miles of prior swampland where the company can build what they need for each resort. In the WDW setting hotel parking is not competing with any other business that requires parking spaces - I mean there are no office towers with workers who would park at the hotel for free and then go to work at the Poly or GF.

Parking lots are not free.. so its not unthinkable to charge for using them. The idea you have space alone isn't what should make you think charge or not. Charging is often used to discourage non-patrons.. or to offset higher than usual costs.. or to influence behavior (bring one car, not three, etc)... or simply because they can and know you have few alternatives.

Most of the time people in less dense areas have little need to discourage non patrons and they know they need to avoid discouraging walk-up business.. so they eat the parking costs as simply the cost of business.

The biggest rub against Disney charging for it should be the customer service angle that Disney hasn't needed to charge for it.. forever. They would be charging now simply because they can.. I'm sure someone simply made the argument of "we are leaving money on the table.." and justified it by comparing how other properties do the same.

 

[flynnibus]

Yes, that is true-I find it that the destination resorts have parking fees (I call it a "hub" but that would include destination resorts). But my statement is in regards to those who said all hotels have a parking fee-that is not true; outside of hubs/destination resorts, you're not going to pay a fee for parking.

Add to that exception.. any urban hotel. Basically anywhere there will be contention for parking.. or difficulty in getting land for parking.. you can expect charges.

 

[peter11435]

My apologies, they make $2,200,000,000, the 40 billion is the Disney corporations overall profits including the parks. From this Forbes article ( http://www.forbes.com/sites/csylt/2...-2-2-billion-theme-park-profits/#5c0fd956a11c).

And if the property taxes were raised during a period of local property tax decline in the local Orlando area, I would agree with you, but property taxes are not arbitrary. The land that Walt Disney owns has value, not just because Magic Kingdom sits on it. Theres an almost limitless number of things that land could be used for, including homes which, by they way, pay property taxes even though they are not Magic Kingdon.

Yes the land that Disney owns has value. The question is what is that value. The land that Magic Kingdom sits on would not be valued at $414 million if Magic Kingdom did not sit on it. That's just under $3 million per acre or about 45 times the average price per acre in Orange County. Obviously Magic Kingdom does in fact sit on the land so it should be valued higher, but the question is how much higher and Disney or any other corporation or individual is right to challenge the agency when they feel their land was unfairly valued.


Not to mention the fact that Disney owns about three percent of the land in Orange County yet pays nearly 20% of its property taxes.

 

[flynnibus]

Point taken.

"I'm sorry, sir/ma'am, you can't park here without a MagicBand and a credit card associated to it". Problem solved.

But really, who doesn't have a MagicBand these days, outside of DVC members? AP holders get one, regular resort guests get one. DI$ sells them at multiple locations in each park. In my defense, though, I could be totally off-base, as my head is foggy and hurts from coughing so much over the past 3-4 days from whatever bug I picked up on Friday, either getting off of the Disney Dream, hanging out at Splitsville for a few hours, or at MCO.

Or simply add parking into their online apps they already have.. Then it's super easy for disney to comp parking to people they want to by registering license plates, etc.

 

[rob0519]

I just emailed Bob Chapek and got a response call from his department saying that this is just a rumor.

How about doing a copy of paste of the email from Chapek's office to the forum so we can all see it?

 

[flynnibus]

meaning: posting something so inflammatory to make people freak out over something that likely won't happen. "Scaring" people into 10+ pages of the sky is falling and Disney is awful and never going to stay there again.

Your boss will have its own counter points ready.. don't worry

 

[DDLand]

But where/how do they benefit from it? If you're sitting in the meeting about this proposal..and one of the decision makers..where do you see the "win"? I don't see it. Why would a decision be made that would do more harm than good?

ETA, People here hate when others say "Disney is a business", right? But the fact is - they are a business, and a decision like this would be a horrible move for their business to make. With ZERO gain. Dessert parties, dining packages, even the stupid MK cabanas all had a reason for being implemented, Disney gained revenue, a certain segment of customers get something they want. That is how a decision making process works. Not just implementing arbitrary fees without any kind of gain in customer satisfaction or revenue, and even more so- implementing something that would jeopardize satisfaction or revenue.

You're over thinking this.

Did Disney consistently add value to offset the run up in ticket prices that have come in above the rate of inflation? No, and in fact certain quality items have been eliminated.

Has Disney justified the run up in pricing for the dining plan? No, and they've eliminated certain features since its launch.

Would you say Disney has added enough service improvements to explain away the broad increases and reduction in deals at their hotels since the 1990s? No, and they've allowed service to suffer.

These fees will allow Disney to either reduce its list pricing on websites (only to smack you with extra on checkout) or quietly raise pricing drastically across the board. This is comparable to the surge pricing released last year. A way to quietly raise pricing dramatically.

They think they're leaving money on the table and they're taking it. Simple as that.

 

[flynnibus]

Disney Parks are regularly making $40,000,000,000+ a year in pure profit...

uhh.. no

The entire P&R division was 3,298,xxx,xxx for the year. You're off by about 1212% - never mind the P&R division is more than just the parks and hotels (and that the 3.x billion isn't 'pure profit' its EBIT)

 

[csmat99]

They might need a 4th parking garage at Disney Springs.

All in all, charging for parking at the resort's is good strategy for a host of reasons. Although this does give Universal an edge I guess.

JT once again you are proving you will take anything Disney serves you even if it's dog food. This is a a pure money grab and nothing else. As others have said charging for parking is only when hotels have very limited parking like in NYC or in Disneyland where everything is packed in and you have to. Every resort at Disney world has more than enough parking for their guests. And the $30 per night is what you would be paying at a hotel in SF. As far as the resort fees are concerned hotels that are higher end will just use this and say you have free wifi. Hotels like holiday inn can't charge resort fee and have to offer free wifi because it has become standard in the hotel industry. Disney already charges very high hotel rates for the type of hotel it is. They get away with this because you are on property and have access to perks by staying on property. But now all those perks are going to start getting a price tag as well. Disney needs to fix their transportation issue because if they start charging 30 per night parking you are going to have ton of people not rent cars anymore and depend on the buses.

 

[Andrew C]

These fees will allow Disney to either reduce its list pricing on websites (only to smack you with extra on checkout)

If they implement a fee like this and do not disclose it during the booking process (in a similar way taxes are disclosed), they are looking for a lawsuit.

Today, resort fees are not used as a way to artificially lower room rates. They are used as a way to bring in some additional revenue and they could not otherwise capture through room rate revenue.

They think they're leaving money on the table and they're taking it. Simple as that.

To be honest, they are. Not that I like fees like this...at all...

 

[flynnibus]

On our last trip, we chose to stay at the Yacht Club instead of Shades of Green. We've also stayed at the Grand Floridian (honeymoon). If they implement $30/day to park at the resorts, we will no longer stay at any of the Disney resorts, much less a deluxe one as we did on our last trip. There's breaking points for everyone...an additional $210 (for a week) on top of an already wickedly expensive hotel room? No thanks. We'll suck up the loss of convenience and save the money at Shades instead.

FYI SoG charges for parking.. and no longer has parking privileges at the parks.

 

[flynnibus]

How about doing a copy of paste of the email from Chapek's office to the forum so we can all see it?

Push is going to deliver it..
And no Disney official is going to confirm anything until its announced. Talk about pointless inquiry...

 

[csmat99]

Part of our trip is always resort hopping. My kids love to go to all of the different gift shops and pin trade. We eat at different resorts and food courts when we visit. We won't be doing that anymore if this is true

You can still do this but need to prove you are paying $30 a day somewhere. It's the same thing with Valet. If you pay valet at one place it's gets enter into the system so they know you paid it.

 

[Me 'Earties]

Add to that exception.. any urban hotel. Basically anywhere there will be contention for parking.. or difficulty in getting land for parking.. you can expect charges.

Yes, that was discussed previously. Urban centers, hubs, destination resorts, etc. you are most likely to pay for parking. I still don't think Disney should now be charging for it, considering how much of an upcharge there is to stay on property-I assumed part of the higher cost of a WDW resort would include parking, resort fees, etc. Eh, what do I know?!

 

[DDLand]

If they implement a fee like this and do not disclose it during the booking process (in a similar way taxes are disclosed), they are looking for a lawsuit.

Today, resort fees are not used as a way to artificially lower room rates. They are used as a way to bring in some additional revenue and they could not otherwise capture through room rate revenue.

I typed in a search for hotels in Orlando and this is what came up on Expedia:

Hilton Orlando looks great, and it's on sale for a $179! This is on the page that's comparing it to other hotels mind you. It's only when you click on the link that you get:

It would be quite easy to miss that because for some reason it's not surrounded by a bold box (almost like they're not proud of it). This is still dishonest and trying to trip people up. It's perfectly conceivable someone would miss the small print and more importantly you still think $179 when comparing it to other hotels. The fact it's not all lumped together actually puts Disney and other hotels trying to be honest at a disadvantage.

It shouldn't be this way.

To be honest, they are. Not that I like fees like this...at all...

Yeah, but that's besides the point. They're just going to raise the prices and not give anything more. That's the problem.

They're also doing it in obnoxious way.

 

[Andrew C]

It would be quite easy to miss that because for some reason it's not surrounded by a bold box (almost like they're not proud of it). This is still dishonest and trying to trip people up.

Looks pretty clear to me. Not sure how you can miss it. The fee is also included later in the full rate breakdown. So yes, you may not like there is this additional fee and could cancel the booking process and look for another hotel. But, it isn't hidden here. Also, Resort Charges in Orlando are pretty common so many properties have them. So anyone who doesn't have them could actually be at an advantage.

Also, note that these hotels (like Hilton) are not backing down their rates and then putting in a resort fee. They are adding in a resort fee completely on top of the rate which includes an amenity bundle.

Also, keep in mind this is how Expedia discloses the charge...why anyone would book a major hotel chain on Expedia is something I will never understand...

Again, I am not endorsing these fees in any way. I am only saying that if Disney decides to implement them, they better include it somewhere during the booking process or they will regret it quickly.

 

[21stamps]

I typed in a search for hotels in Orlando and this is what came up on Expedia:
View attachment 187298
Hilton Orlando looks great, and it's on sale for a $179! This is on the page that's comparing it to other hotels mind you. It's only when you click on the link that you get:
View attachment 187299
It would be quite easy to miss that because for some reason it's not surrounded by a bold box (almost like they're not proud of it). This is still dishonest and trying to trip people up. It's perfectly conceivable someone would miss the small print and more importantly you still think $179 when comparing it to other hotels. The fact it's not all lumped together actually puts Disney and other hotels trying to be honest at a disadvantage.

It shouldn't be this way.



Yeah, but that's besides the point. They're just going to raise the prices and not give anything more. That's the problem.

They're also doing it in obnoxious way.

It's not easy to miss when you hit "book". The fees and taxes are right there, lumped together.
The resort fee is always disclosed though. I posted an example of Atlantis several pages back. Every resort itemizes their fees. Most include some fluff "service" or "amentity" that the majority of people won't use, but it's how they get away with it. On top of extremely high prices already.

 

[Kingtut]

Parking lots are not free.. so its not unthinkable to charge for using them. The idea you have space alone isn't what should make you think charge or not. Charging is often used to discourage non-patrons.. or to offset higher than usual costs.. or to influence behavior (bring one car, not three, etc)... or simply because they can and know you have few alternatives.

Most of the time people in less dense areas have little need to discourage non patrons and they know they need to avoid discouraging walk-up business.. so they eat the parking costs as simply the cost of business.

The biggest rub against Disney charging for it should be the customer service angle that Disney hasn't needed to charge for it.. forever. They would be charging now simply because they can.. I'm sure someone simply made the argument of "we are leaving money on the table.." and justified it by comparing how other properties do the same.

I can see your point but from my perspective a parking lot is just a cost of doing business at any hotel. Just as dishes are a cost of doing business at a dine in restaurant. "Your meal is 10 dollars but if you don't want me to slap it down on the table it will be another 5 dollars for a dish and the labor to carry it away when you are finished. Knives, forks, and napkins are also available for an additional fee." Disney has always encouraged guests to visit their resorts for dining, shopping, or to see the Christmas decorations. It really makes me feel wanted when I can visit ( probably to spend some money) and then have to get out before the parking fee kicks in. The individual hotels ( I am not calling them resorts) are not destinations in and of themselves.

I just feel this is a major mistake and that the Disney management has used up whatever goodwill it had with many of those who were lifelong fans.