What is the business mindset behind locking Magic Keys?

[Model3 McQueen]

I had a few theories, but am mainly curious what you all think.

My belief is that they've paused key sales because of the "unfavorable attendance mix" iger explained awhile ago. But if that is the case, wouldn't they just skyrocket the prices and introduce more blackouts? Even more than they do today, that is?

And for the limited quantities, couldn't they just introduce sales maybe once a season, then lock them when they're sold out?

 

[TrainsOfDisney]

It is an interesting question - my renewal date is coming up and tying to decide what to do. If passes were always available I definitely wouldn’t renew, just wait until my next visit. But the Believe Key has been VERY difficult to get and it’s a pretty good deal.

I think Disney knows, despite the thoughts of Iger, that passholders are needed for the financials. Trying to figure out the correct balance, especially in California, is getting a bit tricky for them it seems.

I’m guessing it comes down to Iger “don’t sell anymore passes! They are an unfavorable mix!” And then a few months later “profits are down, what can we do to boost attendance!?”

 

[shambolicdefending]

I had a few theories, but am mainly curious what you all think.

My belief is that they've paused key sales because of the "unfavorable attendance mix" iger explained awhile ago. But if that is the case, wouldn't they just skyrocket the prices and introduce more blackouts? Even more than they do today, that is?

And for the limited quantities, couldn't they just introduce sales maybe once a season, then lock them when they're sold out?

Disney wants and needs loyalty program customers, but they want tighter control over when they visit and in what sort of numbers.

I don't think it's any more complicated than that.

 

[CaptinEO]

They don't need as many passholders as they used to pre pandemic and have balanced more of their visitors into ticket sales.

The Magic Key program is something they can leverage if attendance is down, but if attendance is good it makes sense to pause sales.

 

[SuddenStorm]

Forced scarcity drives demand.

It also helps position the Magic Key as a premium exclusive product.

 

[networkpro]

Cuts down the number of the gang fights

 

[Disney Vault]

It is an interesting question - my renewal date is coming up and tying to decide what to do. If passes were always available I definitely wouldn’t renew, just wait until my next visit. But the Believe Key has been VERY difficult to get and it’s a pretty good deal.

I think Disney knows, despite the thoughts of Iger, that passholders are needed for the financials. Trying to figure out the correct balance, especially in California, is getting a bit tricky for them it seems.

I’m guessing it comes down to Iger “don’t sell anymore passes! They are an unfavorable mix!” And then a few months later “profits are down, what can we do to boost attendance!?”

I thought the unfavorable comment was from chapek

 

[TrainsOfDisney]

I thought the unfavorable comment was from chapek

I actually can’t remember but I feel like the 2 look at passholders the same. You may very well be correct though, could have been Chapek that said it

 

[Ryan120420]

It is an interesting question - my renewal date is coming up and tying to decide what to do. If passes were always available I definitely wouldn’t renew, just wait until my next visit. But the Believe Key has been VERY difficult to get and it’s a pretty good deal.

I think Disney knows, despite the thoughts of Iger, that passholders are needed for the financials. Trying to figure out the correct balance, especially in California, is getting a bit tricky for them it seems.

I’m guessing it comes down to Iger “don’t sell anymore passes! They are an unfavorable mix!” And then a few months later “profits are down, what can we do to boost attendance!?”

You just answered the question. Disney knows satisfaction with the Magic Key program is poor, and people probably would leave if they felt like they could just re-join when the terms/price of the program are more favorable for the guest.


Disney is leveraging the Fear of Missing out to their advantage.

 

[TrainsOfDisney]

and people probably would leave if they felt like they could just re-join when the terms/price of the program are more favorable for the guest.

Price is pretty good - even at the new $1200 price point. I just wouldn’t renew cause I’m not sure when I’ll be back - be a few months I’m sure.

 

[October82]

My guess is that much of the reason is operational. Restricting the number of magic keys likely helps to better plan (i.e. reduce) staffing.

 

[shambolicdefending]

My guess is that much of the reason is operational. Restricting the number of magic keys likely helps to better plan (i.e. reduce) staffing.

I initially thought this too... but some of the people online claiming to be CMs have poured a little cold water on it.

I guess the union contract requires cast schedules to be made far enough ahead of time that it's not really practical to use reservation numbers to preemptively cut staff.

I guess the system might help ensure that they don't get surprise crowd rushes that leave them unexpectedly understaffed, though.

 

[SuddenStorm]

I initially thought this too... but some of the people online claiming to be CMs have poured a little cold water on it.

I guess the union contract requires cast schedules to be made far enough ahead of time that it's not really practical to use reservation numbers to preemptively cut staff.

I guess the system might help ensure that they don't get surprise crowd rushes that leave them unexpectedly understaffed, though.

Right- if anything if they book more reservations than expected they can pre emptively try and schedule more people before the day

 

[Disstevefan1]

I had a few theories, but am mainly curious what you all think.

My belief is that they've paused key sales because of the "unfavorable attendance mix" iger explained awhile ago. But if that is the case, wouldn't they just skyrocket the prices and introduce more blackouts? Even more than they do today, that is?

And for the limited quantities, couldn't they just introduce sales maybe once a season, then lock them when they're sold out?

I think the pausing of sales is just a tactic to create demand for when the next price jump comes along.

 

[October82]

I initially thought this too... but some of the people online claiming to be CMs have poured a little cold water on it.

I guess the union contract requires cast schedules to be made far enough ahead of time that it's not really practical to use reservation numbers to preemptively cut staff.

I guess the system might help ensure that they don't get surprise crowd rushes that leave them unexpectedly understaffed, though.

I think your last comment is basically the right answer and that it might actually be the other way around - requiring CMs to be scheduled far in advance means making staffing decisions ahead of time. That means having more predictable guest patterns, which can be controlled through both pricing and limiting the number of Magic Keys.

 

[Touchdown]

I think it was a tactic to avoid quick sell outs during the holiday, I suspect we’ll be hearing them go back on sale in the coming weeks.

 

[denyuntilcaught]

Disney is leveraging the Fear of Missing out to their advantage.

A smart short-term strategy, but the jig gets old fast.

Then again, thinking short-term to sacrifice the long-term is an Iger staple isn't it.

 

[CaptinEO]

A smart short-term strategy, but the jig gets old fast.

Then again, thinking short-term to sacrifice the long-term is an Iger staple isn't it.

There's no long term damage, they can sell keys or even the old pre 2020 APs any time they want to.

They can flex ticket deals as needed too.

More people now are paying full price to get in than pre pandemic, sounds like a win for the company any way I see it.

 

[TrainsOfDisney]

More people now are paying full price to get in than pre pandemic

Source?

 

[Disstevefan1]

Source?

I think CaptainEO means DLR cancelled all the old APs, then limited the resale of the new APs, therefore if a person who previously had the AP didn't or couldn't get the new AP and really wants to go to DLR is now paying gate price.