With the Price Increases and Cuts, Are you Delaying your Visit?

[Punzle]

I think if you were willing to pay the old prices its not a huge difference from the new ones. Disney is expensive. It's a special treat if you can make room in your budget. A few years ago I could plan a week long trip for two for $1600. Now it's more like $2200. But prices go up on everything. I make more money now than I did 5 years ago. That is just how things work.

But I do think that tiered pricing will make crowds worse not better. Times that you could go to get a tiny break on the crowds will now be just as packed because people want to save a few dollars.

 

[Roakor]

While I may not like prices going up, I mean who does? I don't fault Disney. How can they price gouge you if your not forced to go there in the first place? Its a choice. You have no more right to demand that Disney lower their prices than Disney has to demand that you pay them. If things get to expensive (and expensive is a relative term) don't go. If you have a product you were selling for $50 and then someone comes along and offers you $100 for it what will you do? Ya right, I don't think so. You would sell it for $100 and you know it.

 

[AshaNeOmah]

The 911 comparison is not even close. The difference in the cuts after 911 is that the parks were empty and today the parks are near capacity consistently. I fully understand that when it's slow you have to cut you workforce. It just is not normal to cut your workforce after reporting record attendance. In TWDC's fiscal 2015 a +7% increase in domestic theme park attendance was reported in Disney's SEC 10K as well as a +3% increase in occupancy, a +4% increase in guest spending as well +13% increase in domestic theme park revenues. From the outside, these cuts do not seem necessary unless your trying to squeeze out a few more pennies out. Hope they don't squeeze too hard.

BTW 1st fiscal quarter 2016 those numbers soared up +10% on the attendance and another +5% increase in occupancy compared to same time last year.

Paris, Hong Kong, and Shanghai is explanation enough. Domestic numbers are up, but Disney is a multinational corporation. Peter has to pay Paul, and the left hand takes from the right. The cuts appear to be minor and temporary, with little effect on the average guest.

 

[disneyflush]

Not going is not an option for me.

This is terrifying. If I have a vacation destination looking at a price hike and my customers are telling me that

Not going is not an option for me.

then I literally have no resistance to my pricing decisions. Give any publicly traded company in the world complete autonomy to raise prices as much as they want with no resistance and watch the carnage. Heck, give a small hotel owner the directive to raise prices every year with the caveat that the customers will continue to stay there regardless of how much he charges for rooms and then see how much a room costs. Just mail TWDC a blank check each year with a note that says, "Fill in whatever you want."

 

[KDM31091]

We will be going end of 2017, at least theoretically.

I see both sides of it. They're a business, and everything pretty much goes up in price every year. My more local theme parks such as Hersheypark and Dorney Park raise their admission prices every year. So in that respect, Disney isn't any different.

On the other hand, you expect a certain caliber of excellence from Disney, so for the prices they charge relative to other options, they need to stop slashing budget for park operations (long lines, crowds, etc).

 

[AshaNeOmah]

This is terrifying. If I have a vacation destination looking at a price hike and my customers are telling me that


then I literally have no resistance to my pricing decisions. Give any publicly traded company in the world complete autonomy to raise prices as much as they want with no resistance and watch the carnage. Heck, give a small hotel owner the directive to raise prices every year with the caveat that the customers will continue to stay there regardless of how much he charges for rooms and then see how much a room costs. Just mail TWDC a blank check each year with a note that says, "Fill in whatever you want."

Until I absolutely can't afford to go, of course. I might have to save a few extra months or space my trips further apart, but striking against the company or refusing to visit the parks isn't a possibly for me when it come to price increases. I expect price increases and Disney will always deliver.

I will continue to visit until I financially can't afford to do it. Assuming I can keep my career and Disney keeps selling tickets, I don't see that happening. When you see a price elasticity curve, there's always going to be someone buying. That someone is going to me as long as I possibly can.

 

[ParentsOf4]

I remember the post 9/11 cuts like it was yesterday. Then Fantasmic only showed three days a week. The cuts don't really concern me at all.

I remember the cuts as well; my family took advantage of the huge discounts Disney offered to make several trips from 2001 to 2004.

Post 9/11, WDW experienced tremendous numbers of trip cancellations. Theme park attendance was down, revenue was down, and operating margin plummeted. Disney was shuttering entire wings of hotels.

Disney is at the complete opposite end of the spectrum today. Operating margin at their domestic parks is way up, the parks are experiencing record crowds, and hotel occupancy is over 90%.

That's what makes ANY cuts today inexcusable.

 

[AshaNeOmah]

I remember the cuts as well; my family took advantage of the huge discounts Disney offered to make several trips from 2001 to 2004.

Post 9/11, WDW experienced tremendous numbers of trip cancellations. Theme park attendance was down, revenue was down, and operating margin plummeted. Disney was shuttering entire wings of hotels.

Disney is at the complete opposite end of the spectrum today. Operating margin at their domestic parks is way up, the parks are experiencing record crowds, and hotel occupancy is over 90%.

That's what makes ANY cuts today inexcusable.

Paris, Hong Kong, and Shanghai is explanation enough. Domestic numbers are up, but Disney is a multinational corporation. Peter has to pay Paul, and the left hand takes from the right.

 

[Brad Bishop]

Understood. But, even so, for the infrequent but well-informed visitor like me (and I may be unique in this feeling...), I am aware of all that is happening and that still is not affecting my decision to go, nor does the price increase bother me. Oh, and I am a self-proclaimed cheapskate - always looking for bargains. And, I'm not independently wealthy... Just saying that in my cost analysis, the benefits of this vacation are still worth the cost.

That is an excellent way to look at it. I say that because in the many times I've gone (I'm single and have daughters) you can see the families that are there but one of the adults isn't too keen with what's going out the door. They make everything miserable. They can't buy a water without spreading the misery ($2.50?? For water!!! (I think it recently went up again to $2.75)). So go have a great time!

 

[Schneewittchen]

The cuts and increases won't affect my plans at all, my next family trip is later this month and is already paid for. I'm going to Orlando for business in mid April and will probably do a solo day trip - and yes, it's not a firm plan, so I might just buy a ticket at the gate in the AM. And I expect to start planning another family trip for April 2017 next month.

I'm not bummed by closures, we never make it to all the rides anyway and I'm generally satisfied with every visit.

And I'm not bothered by the prices. Devil's advocate here - I can hope that higher prices can reduce demand on busy days but keep profits up so that quality of services isn't damaged. I will get my money's worth out of my 14 hour peak price MK days during Spring Break......

 

[PhilharMagician]

Paris, Hong Kong, and Shanghai is explanation enough. Domestic numbers are up, but Disney is a multinational corporation. Peter has to pay Paul, and the left hand takes from the right. The cuts appear to be minor and temporary, with little effect on the average guest.

Paris, Hong Kong or Shanghai effecting other theme park properties shouldn't happen. The fact is the company is making money in all of its segments: Media, Theme Parks, Studio Entertainment and Consumer Products & Interactive Media. The international properties right now are the only loss in this segment.

Below are Q1 numbers reported 09/February/2016

Before international Theme Parks $2,939,000,000
International Theme Parks ($29,000,000) LOSS
Total Theme Parks Net income $2,910,000,000


I understand that these losses are trying to be controlled by making cuts within the troubled segment of Theme Parks and Resorts. WDW has been seeing a somewhat steady decline in customer service for a while and this includes many issue like overflowing trashcans, bathrooms that are not being serviced regularly, overflowing queue lines, extended monorail downtimes and this list can go on. Cuts will only further deepen the current service issues within the domestic properties. Neither WDW nor DL should be accountable for the international issues. I fear in 2016 all of the Asian parks may decline including Tokyo DL with what has been happening in China. I am curious to see what happens in June when Shanghai Disneyland opens. Will it have the same lackluster opening first few years like Hong Kong Disneyland which could drag down the theme parks and resorts P&L again?

 

[skyphotographer]

I will just ask you all this: Would you rather go to a less crowded Disney park once every two years or go an overcrowded park once a year?

 

[PhilharMagician]

Less crowded every 2.

 

[Pumbas Nakasak]

No,because its still simply the bestest most magical place on the planet, with a castle and everything. Circumstances dictate our visit this year, personally its not my choice to go. The earliest well be back is 2019, though if I can convince the current Mrs Sak to offload her DVC that could be an even longer period. It just doesnt do it for me in its stagnant lets appeal to 8 year old girls and menopausal dotty bats decaying form.

 

[epeterson]

No,because its still simply the bestest most magical place on the planet, with a castle and everything. Circumstances dictate our visit this year, personally its not my choice to go. The earliest well be back is 2019, though if I can convince the current Mrs Sak to offload her DVC that could be an even longer period. It just doesnt do it for me in its stagnant lets appeal to 8 year old girls and menopausal dotty bats decaying form.

I've been reading your comments for awhile now and they never fail to make me laugh, while also being incredibly insightful.

I'm with you, I cannot comprehend how a theme park that hasn't changed in 15+ years can still be getting the attendance that it does. Then I realize, children don't know any better and parents will pay whatever so as to keep ungrateful little Timmy happy (plus they get to one up the other parents).

I can tell you as someone who went when he was 6 and then again when he was 12. I barely remember anything from that first trip, my mother has to remind me that we even went on it. And when I was 12 I enjoyed Universal more because it had more rides and I don't care about princesses.

 

[KeithVH]

Several people have commented on what seems to be looking forward to less-crowded parks. Tell me, what proof do we have that this is ACTUALLY going to do what some people think it will (just the redistribution of crowd levels)? We're months away from anecdotal evidence - I doubt we'll ever have the hard data needed to determine what success looks like here.

 

[Brad Bishop]

Several people have commented on what seems to be looking forward to less-crowded parks. Tell me, what proof do we have that this is ACTUALLY going to do what some people think it will (just the redistribution of crowd levels)? We're months away from anecdotal evidence - I doubt we'll ever have the hard data needed to determine what success looks like here.

I think with surge pricing that you're almost more likely to have it just consistently busy. The idea being that at Christmas, you could probably pack the place for $150/head (perhaps more). On less popular days, you'd have to lower that price to $110/head to pack the place. Either way, the goal is to pack the place and extract maximum dollars out of guests the gate (which isn't a bad thing - don't leave money on the table and all that).

Still, it means that the value of the resort declines due to the spot on the calendar you're looking at and they, in turn, will have to lower the prices (relative to the peak days) in order to pack in as many people.

It's actually a really good plan for WDW. I don't think you'll see less crowded days. I think you'll just see "cheaper days" (cheaper than peak, but still pretty expensive). That's the goal.

The thing that kind of makes me wonder is how this all plays out when you have something that keeps people at home like a terrorist attack, recession, uptick in travel costs (oil), or perhaps just a general downturn in tourism (it happens from time to time) when it really is hard to get people to come. It'll be interesting to see how they handle that. When you're not getting people in the gate even at your "value" prices you have to offer more. Traditionally they have but they're setting up a situation where they're priced for peak capacity and I don't think they've ever lowered their prices on tickets. I don't think that would fly for the bean counters.

 

[Goofyernmost]

I'm with you, I cannot comprehend how a theme park that hasn't changed in 15+ years can still be getting the attendance that it does. Then I realize, children don't know any better and parents will pay whatever so as to keep ungrateful little Timmy happy (plus they get to one up the other parents).

One of the most common of human tendencies is to think that what we do is universal and everyone does it. The fact of the matter is that if they hadn't changed a single thing since the day it opening there would still be million and millions of people that have never seen it. We go all the time, so everyone does. Truth is.. that is not the case at all.

To them it is not old, it is brand new and what made us all like the place so much would still be there.

 

[cdeev8690]

I bought a 7-Day No Exp Park Hopper a couple of years ago and I have two days left. I'll likely plan a short weekender within the next couple of years, possibly during early December. But I definitely don't plan on buying park tickets again until after Star Wars Land has opened. Future Chelsea is totally bracing herself for whatever the Disney Parks Gods have in store

 

[lebeau]

I was already planning to take a few years off before all thus. I figured 2018 at the earliest. But most likely, we would return one last time after Star Wars opens. We feel like we got a lot out of WDW while the kids were little, but we're growing out of it now that the oldest is 10 and the youngest is 6. With the lack of new attractions, there just isn't a lot of incentive for us to go back. Across the board price hikes, longer lines than ever before, crazy cuts in service, etc. all kill whatever interest we might have for at least a few years. We'll see how everyone feels after Star Wars opens. Maybe by then, we'll feel like going back. Then again, maybe we won't.

We have a lot of good memories at Disney World. That may be enough.