Will these prices ever cap out?

[Model3 McQueen]

Violate ? "They" own it.

Yup. Violate. Violate Paradise Pier to advertise Pixar. Violate Space Mountain to advertise Star Wars. Violate Tomorrowland Theatre to showcase whatever IP film they want to advertise. Violate a haunted hotel in favor of a warehouse fortress power plant in Hollywood land. Imagination? More like.. Violation.

 

[Benjamin_Nicholas]

No, they won't. Because they're not seeing a drop in attendance.

What else do you suggest they do? If they keep prices low, everyone shows up. The parks would be even more crowded.

Disney parks are not for everyone. They haven't been for a long while.

 

[Tom P.]

No, they won't. Because they're not seeing a drop in attendance.

What else do you suggest they do? If they keep prices low, everyone shows up. The parks would be even more crowded.

Disney parks are not for everyone. They haven't been for a long while.

They haven't been ever.

 

[Animaniac93-98]

No, they won't. Because they're not seeing a drop in attendance.

But they're not seeing substantial growth either.

In 2018 MK saw a 2% increase in attendance over the previous year
2017 was a 0.3% increase
2016 was a 0.5% decrease

2015 was a 6% increase, the biggest in the last 5 years. Since then? It's remained relatively flat, despite a significant rise in prices.

Disney is squeezing more money from roughly the same number of customers, but it's testing the limits of what they're willing to pay.

 

[Benjamin_Nicholas]

But they're not seeing substantial growth either.

In 2018 MK saw a 2% increase in attendance over the previous year
2017 was a 0.3% increase
2016 was a 0.5% decrease

2015 was a 6% increase, the biggest in the last 5 years. Since then? It's remained relatively flat, despite a significant rise in prices.

Disney is squeezing more money from roughly the same number of customers, but it's testing the limits of what they're willing to pay.

But to a shareholder, it's still something.

And ultimately, Dis continues to spend a massive amount of capital adding attractions.

Bottom line: For $150-200, what other place in the world offers Disney's amount of entertainment for up to 16 hours a day?

 

[Animaniac93-98]

But to a shareholder, it's still something.

As a shareholder, I would be concerned about Disney's ability to maintain these numbers in the long run under less than ideal economic conditions or a overly cautious tourism market.

 

[Benjamin_Nicholas]

As a shareholder, I would be concerned about Disney's ability to maintain these numbers in the long run under less than ideal economic conditions.

I don't think Dis is too worried. They have cultivated a wide variety of guests who will keep the park afloat if things go South.

The Pareto Principle hard at work.

 

[RustySpork]

I don't think Dis is too worried. They have cultivated a wide variety of guests who will keep the park afloat if things go South.

The Pareto Principle hard at work.

They don't have to worry, they'll always have the Disney can do no wrong pixie duster guests to fall back on.

 

[Benjamin_Nicholas]

They don't have to worry, they'll always have the Disney can do no wrong pixie duster guests to fall back on.

You make a sage point

 

[networkpro]

Yup. Violate. Violate Paradise Pier to advertise Pixar. Violate Space Mountain to advertise Star Wars. Violate Tomorrowland Theatre to showcase whatever IP film they want to advertise. Violate a haunted hotel in favor of a warehouse fortress power plant in Hollywood land. Imagination? More like.. Violation.

So its only your memories of what was offered. They decided to offer something else in those spaces that they own. It's not a HOA vs homeowner situation we have here, its more like a multiplex theater owner and a patron. You want to see the same movies over and over but they want to show a few different new movies and retain others.

 

[ELG13]

Denying myself materialistic junk like designer clothes and 80-inch TVs, or $5 lattes and $20 take out meals at overrated restaurants, and reallocating those funds to make lasting memories with my family, doesn’t make me miserable in the least. Makes me quite happy, in fact. But to each their own.

Exactly! It's like when people thought we were crazy for bringing a 2 yr old and a 4 yr old. They said they won't remember so why waste the money. I told them because I remember. My mom and husband remember. We have those memories with them. They love looking at pictures from those early trips. People who assume people are miserable when saving for trips must either have gobs of money that doesn't require saving or are just miserable regardless lol.

 

[HongKongFooy]

It's like when people thought we were crazy for bringing a 2 yr old and a 4 yr old. They said they won't remember so why waste the money. I told them because I remember. My mom and husband remember.

Indeed!!!

 

[Phil12]

That's why discounts are so important. I recently bought a full set of Pella 350 series windows and doors for my home and they were very expensive. However, they exceed all others due to their superior quality. But I never would have purchased them unless I received a substantial discount. Same thing goes for Disney. I only go to Disney when big discounts are available for both admission media and for lodging. I don't stay on site any longer because even the best Disney accommodations are low quality with meager amenities. Discounts abound! Let the unwashed pay full price and rack rates.

 

[erasure fan1]

The way I see it is this. Disney is going to raise prices as high as they possibly can. They will push the boundaries until it absolutely breaks. Tickets over $200 a day? Yea I can see it. A bottle of coke $7 or $8, I wouldn't bet against it.

I made my peace with Disney pricing us out a few years ago. Does it upset me? It did, but not so much anymore. Do I hope things change and we can go like we used too? Sure I do. But I'm not holding my breath. But as of now the less for more approach doesn't work for me.

 

[THEMEPARKPIONEER]

With the way things are Disney really should buy a mountain or a part of one at the least make a ski resort with a castle park or Disneyland. It would keep the place going over the winter and occupied by guests who are seeking vacation in the outdoor winter air and relieve peak crowds at the two other parks. Going on a Disney ski trip in my opinion would be a big draw for many I think. I’m all about traveling to warmer weather but I know this upcoming week many are flocking towards the snow, more snow and skiing.

 

[Trackmaster]

I mean, they could keep raising the AP prices, and it would still be a great deal for Florida residents. 20+ visits a year for four parks for $600? Free parking, full Fast Pass access, and the ability to sit back and go on less crowded and lower demand days. The ability to go for a few hours after work/school when its dead and not having to go during breaks when its very crowded.

They can keep raising ticket prices and AP prices, and the parks will still be jammed due to the international tour groups. Disney just needs to watch their back, because if they stop being a fixture in the local community, we'll vote and we may not make things so pleasant for them. They're supposed to be cutting good deals for Florida residents so they stay in good graces and they keep the autonomy that they want.

 

[Sirwalterraleigh]

Prices have nothing to do with the cost of “gadgets”...

But as to if the prices will “cap”...no.

However we are missing what has served as the market price control - a good old fashioned global recession. Though not the first thing you’d think of, the cyclical financial pattern resets prices to allow for normal inflation and cost of goods to be “checked” to an extent and restore the relative value.

There is also a management shift. There is less restraint to hefty increases by the current board and upper management...as they are more transient than prior groups.

 

[Sirwalterraleigh]

I mean, they could keep raising the AP prices, and it would still be a great deal for Florida residents. 20+ visits a year for four parks for $600? Free parking, full Fast Pass access, and the ability to sit back and go on less crowded and lower demand days. The ability to go for a few hours after work/school when its dead and not having to go during breaks when its very crowded.

They can keep raising ticket prices and AP prices, and the parks will still be jammed due to the international tour groups. Disney just needs to watch their back, because if they stop being a fixture in the local community, we'll vote and we may not make things so pleasant for them. They're supposed to be cutting good deals for Florida residents so they stay in good graces and they keep the autonomy that they want.

It was just discussed in the earnings call fallout. International business is 15% of the total attendance.

This is constantly overstated. Florida residents are also overstated.

The main bulk of people in the tragic kingdom are ‘Muricans...

So while there is plenty of demand, to have the stance that overpricing is not a possibility because people will materialize out of the ether is false.

 

[bryanfze55]

That is a total fabrication.

Another day, another ignorant comment. Good job..

Would be more accurate to say that corporate officers have a fiduciary duty to act in the best interest of shareholders. This may or may not mean profit maximization, but an officer would certainly not be found guilty of breaching his or her fiduciary duty by focusing more on long-term customer goodwill than short-term profit maximization.

 

[RustySpork]

Would be more accurate to say that corporate officers have a fiduciary duty to act in the best interest of shareholders. This may or may not mean profit maximization, but an officer would certainly not be found guilty of breaching his or her fiduciary duty by focusing more on long-term customer goodwill than short-term profit maximization.

Again, literally nobody is disputing this... If there is it's on you to provide the evidence...