Will these prices ever cap out?

[Animaniac93-98]

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.

Many people on this forum are business owners or managers.

We don’t need to be told how profit works.

 

[monothingie]

You already know. I don’t want to get into a whole thing about it, just pointing out how silly/redundant the post was.

All that pixie dust ain't cheap.

 

[NickMaio]

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.

DIS has one thing the other don't........DVC.
This almost guarantees return customers- - - - - - and the kind that DIS really wants coming back, ones with money.

 

[bryanfze55]

Many people on this forum are business owners or managers.

We don’t need to be told how profit works.

That’s anecdotal and doesn’t mean anything. You need to calm down, too.

 

[RustySpork]

Yes, I posted it in agreement with you that having a duty to “maximize profits” is a fabrication. You need to calm down.

I'd have to not be calm to need to calm down.

 

[bryanfze55]

I'd have to not be calm to need to calm down.

That’s more like it!

 

[kong1802]

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.

Not to nit pick, but when you say "full Fast Pass access" do you mean having an Ap for 2 of the last 3 years and getting FOP 1 time, SDD 0 times, 7DMT 0 times, as full access?

Or just the "opportunity" to hit refresh 1000xs trying to avoid a 100 min line?

If so, we are obviously under paying for this access.....

 

[Raineman]

At the risk of sounding elitist, or whatever word you could use to describe it, I would be very interested in seeing first hand what a recession would do to WDW pricing. Now, I say that as someone who has a job that is basically recession-proof, but I realize that there are people on here whose employment would be affected, so I'm not really wishing for a recession. What effect did the previous recession in 2007-2008 have on the cost of a WDW vacation at the time? Did prices drop, or did they just remain at the same levels before the recession?

 

[bryanfze55]

At the risk of sounding elitist, or whatever word you could use to describe it, I would be very interested in seeing first hand what a recession would do to WDW pricing. Now, I say that as someone who has a job that is basically recession-proof, but I realize that there are people on here whose employment would be affected, so I'm not really wishing for a recession. What effect did the previous recession in 2007-2008 have on the cost of a WDW vacation at the time? Did prices drop, or did they just remain at the same levels before the recession?

Yeah you’re probably a low key elitist, but there’s nothing wrong with that.

My understanding is the last recession did reduce crowd size greatly but not necessarily pricing. Less people could afford to go, and the parks will an immensely more pleasant experience.

That being said, the last recession was the worst since the Great Depression. We’ve had many recessions where unemployment didn’t significantly increase, and odds are that the next recession will be more in line with those than it will the “Great” Recession. Prices won’t decrease, and I would expect crowd size to decrease only marginally.

 

[RustySpork]

Yeah you’re probably a low key elitist, but there’s nothing wrong with that.

My understanding is the last recession did reduce crowd size greatly but not necessarily pricing. Less people could afford to go, and the parks will an immensely more pleasant experience.

That being said, the last recession was the worst since the Great Depression. We’ve had many recessions where unemployment didn’t significantly increase, and odds are that the next recession will be more in line with those than it will the “Great” Recession. Prices won’t decrease, and I would expect crowd size to decrease only marginally.

This is why credit exists. Can't afford it? No problem you can still go multiple times a year! /s

 

[bryanfze55]

This is why credit exists. Can't afford it? No problem you can still go multiple times a year! /s

I really don’t think that’s as common as people think it is. But I could be wrong

 

[wendysue]

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.

Absolutely. Some people here will be happy to know that our 3 families (20 people) will not be renewing our AP's in August. Maybe with many others doing the same it will be less crowded for those folks at some point. We are not angry or sad about it. We have done a couple trips on these passes, so they have paid for themselves, but the room and food price increases take that away, and while we never thought we would say this, but...we will go elsewhere.

 

[HouCuseChickie]

Honestly, I just can't see griping about it. Disney's price increases are to be expected. I understand it's a special place to most of us, but if you're a fan, it should never be a shock that they are going to jack up prices at least once a year. If you're really upset and want change, taking your money elsewhere is the only logical action where you're going to see some results. We opted to give Disney a break for a couple of years. I will say this, you may find that other popular family vacations give you a better appreciation of what you do get for the cost with Disney. I am not saying it's cheap, but when you price out a day of skiing, white water rafting, or horseback riding and compare the costs as well as the time you get doing those activities ...Disney starts looking like a decent value again. Lodging and food may come in a bit cheaper, but it's still heavily inflated tourist pricing, so it's not a massive amount of savings to go elsewhere...although, I think quality control may be better. Ultimately, Disney doesn't appear to be hurting for customers, so there's not a lot of incentive to listen to those who are upset with pricing increases.

 

[Model3 McQueen]

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.

I really can't relate to those metaphors. Bottom line is if you wanna keep spending more and more money for the Pixar Piers and Hyperspace Mountains at Disney, then that's your prerogative. Some park goers, such as myself, expect more of what made Disneyland incredible in the first place.

 

[Sirwalterraleigh]

At the risk of sounding elitist, or whatever word you could use to describe it, I would be very interested in seeing first hand what a recession would do to WDW pricing. Now, I say that as someone who has a job that is basically recession-proof, but I realize that there are people on here whose employment would be affected, so I'm not really wishing for a recession. What effect did the previous recession in 2007-2008 have on the cost of a WDW vacation at the time? Did prices drop, or did they just remain at the same levels before the recession?

I think it’s the biggest spectre of the Iger era...

The standard response is “they’ll just discount”

Since I used to work Numbers and follow every nuance of the Disney park operation for decades...I think that is possibly the biggest oversimplification in the amusement business...maybe ever

 

[Sirwalterraleigh]

I really don’t think that’s as common as people think it is. But I could be wrong

I think you’re wrong...people with money don’t rack up a couple of trillion in college debt or a couple trillion of credit card debt...

It’s those without the money that did.

People put vacations on a credit card...they absolutely never should - as vacations are a complete luxury/disposal product - but they do.

 

[bryanfze55]

I think you’re wrong...people with money don’t rack up a couple of trillion in college debt or a couple trillion of credit card debt...

It’s those within the money that did.

People put vacations on a credit card...they absolutely never should - as vacations are a complete luxury/disposal product - but they do.

Oh I think it does happen. I just don’t think it’s THAT common. I would venture that the people putting a vacation on a credit card are people with very solid incomes who anticipate being able to pay off the balance in a “reasonable” amount of time. But they can’t pay cash because they have a 3,000 square foot house, two new cars in the driveway, little Johnny and Mary are in every sport possible...

I don’t think it’s poor people who just so desperately want to go to Disney that are charging vacations. A lot of truly poor people can’t even get credit.

But yes charging a vacation is never a good idea. I think student loans are a different story, because of course the average 18-year-old doesn’t have money to pay for college out of pocket. I think student loans rank far lower on the scale of irresponsibility than credit card debt. But it is still a problem that I’m not sure how to address on a macro level. On a micro level, I can say sending your kids to community college and then a state university is probably the best way to go if you’re not wealthy. Another topic entirely.

 

[Raineman]

Yeah you’re probably a low key elitist, but there’s nothing wrong with that.

My understanding is the last recession did reduce crowd size greatly but not necessarily pricing. Less people could afford to go, and the parks will an immensely more pleasant experience.

That being said, the last recession was the worst since the Great Depression. We’ve had many recessions where unemployment didn’t significantly increase, and odds are that the next recession will be more in line with those than it will the “Great” Recession. Prices won’t decrease, and I would expect crowd size to decrease only marginally.

I think it’s the biggest spectre of the Iger era...

The standard response is “they’ll just discount”

Since I used to work Numbers and follow every nuance of the Disney park operation for decades...I think that is possibly the biggest oversimplification in the amusement business...maybe ever

So, given an extended recession, even with no decreases, there would have to be a freeze on cost by Disney until the economy recovered, right? I don't think even the wealthiest pixie duster or the most money hungry Disney exec would agree that prices should be increased during a time of economic slowdown. Given the rapidly increasing rate at which Disney continues to raise prices recently, a sustained freeze on increases might almost feel like a discount to some.

 

[bryanfze55]

So, given an extended recession, even with no decreases, there would have to be a freeze on cost by Disney until the economy recovered, right? I don't think even the wealthiest pixie duster or the most money hungry Disney exec would agree that prices should be increased during a time of economic slowdown. Given the rapidly increasing rate at which Disney continues to raise prices recently, a sustained freeze on increases might almost feel like a discount to some.

I don’t see a freeze happening, even in a downturn. Sorry to disappoint. Annual price increases are just part of the deal now. People are used to it, and Disney isn’t going to stop. If there is a prolonged recession, there will be smaller price increases - but not across the board freezes. Disney will just take the hit on overall attendance and rely on people like you with recession-proof jobs spending even more money. Also, a lot of dollars come in from foreign visitors. Assuming there isn’t a global recession, Disney would still have plenty of guests willing to spend.

 

[xdan0920]

I really don’t think that’s as common as people think it is. But I could be wrong

You’re wrong. Middle income Americans carry a staggering amount of debt.