The usual "increased spending due to higher prices" is what makes the financials "look good". I'm fairly sure every quarterly report for years has included that language.
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WSJ: Even Disney Is Worried About The High Cost Of A Disney Vacation (gift link)
- Thread starter lentesta
- Start date
The usual "increased spending due to higher prices" is what makes the financials "look good". I'm fairly sure every quarterly report for years has included that language.
Sirwalterraleigh
Premium Member
Everytime there’s a thread where people delusionally claim they are “inline with inflation”…I put that little gem up
2008
Sirwalterraleigh
Premium Member
StarWarsGirl
Well-Known Member
- In the Parks
- No
I did the same thing when I was going on vacation in October. I was like, holy crap Universal. I ended up going to California (and a few days at Disneyland) for longer. It was more worth the expense for me (Undercover Tourist for DL tickets).
It's why I've also never gone while at WDW. I wouldn't mind going like two or three days but can't justify the ticket prices (I have the DVC WDW AP). They basically make you buy an AP to make it financially feasible, and I'm like, I don't know that I'd want to go more than once in the same year? WDW, absolutely and I do, but I'd like to go once before determining that.
StarWarsGirl
Well-Known Member
- In the Parks
- No
I'm an accountant and don't like that language either. I'm like, great, but that's not sustainable. If you don't keep growing, then you're eventually just going to stagnate and lose business. Fortunately, they seem to be doing that now, although my theory is that the thing we all hate (paid lightning lanes) is why they've been able to push these projects through the buerocracy.
Jrb1979
Well-Known Member
At this time of year with the buy 2 get 2 free ticket deal it makes it very affordable. It's easy to make 4 days of Universal, especially if you like to re-ride things. Last time I went I did The Mummy 11 times and the Hulk 7 times over 4 days
Sirwalterraleigh
Premium Member
They’ve both had more defectors than Berlin in 1959 for the last 2+ years
Both have misread their market
Sirwalterraleigh
Premium Member
But that’s not the Orlando marketplace…so they have to provide a lot more value and diversions to get people to bite on their prices to the level needed now
Sirwalterraleigh
Premium Member
And that’s what all defenders of these financials won’t ever address
There is no way to operate in an environment where you believe you have no price ceilings. Hasn’t happened…never will
It’s why blue ocean is a theory…a really stupid one
MickeyLuv'r
Well-Known Member
wait, last month you could stay at HRH for 4 days for $3325, with 2 park hopper tickets, includes unlimited EP, and that deal included an $800 dining card.
they are still offering the same promo. If you do it online, it auto-suggests 3-park hopper tickets, but you can change them to 2-park tickets and the offer still works. (though not w/ Jan rates)
That said, I have noticed an uptick in Universal prices.
If you want EP, always look into staying at the deluxe resorts to get it. It usually costs less, but it depends on how many people you have.
TrainsOfDisney
Well-Known Member
That’s an important point. I understand the process and have successfully jumped through the hoops to ride Rise, Guardians, runaway railway, and Tiana’s.
It’s very annoying to me. If a ride is not reliable enough to be off of virtual q, it should not be advertised as part of the theme park admission price.
StarWarsGirl
Well-Known Member
- In the Parks
- No
Part of my issue too is that I get motion sick on simulators. So I can do the rollercoasters fine, but there's certain ones I know I wouldn't be able to do. I can't do FOP, for instance, so I know I can't do some of the rides there (that one Harry Potter ride). So I just felt like for the money, there were too many things I couldn't do. There's other parks with really good rollercoasters that are much cheaper if that's what I want to do. I'm super bummed out about the Mario Kart ride in Epic Universe; the VR will set off a migraine. So I decided to go to parks where I could basically do everything (I went to Disneyland, Sea World San Diego, and Knott's Berry Farm, along with sightseeing in San Diego).
Also because of what I do, I have specific months where I can travel where there's no issue and times where my PTO won't get approved. October was a great time and I didn't really have anything to catch up on when I got back. I'm taking off on March 31, but pretty much the rest of the month is out (with exceptions for things like medical situations, obviously). So... it's great that there's deals, but it has to work with my work schedule. Deals that they were running in October weren't as good unfortunately.
Sirwalterraleigh
Premium Member
Oh yeah..:way too much brain scramble at universal for you
I don’t get motion sickness and after 3 days the last time I we were all out of changing directions with 3D projections flying by
surfsupdon
Well-Known Member
This. EXACTLY. For those of us who were kids in the 80s and 90s and had parents spending days at the Resorts for all the activities and we weren't upset! (Sure we had 5 Day Hoppers but we spent 2-3 days at the Resort) Unique pools with slides, boats and bikes to rent on a Captain's Plan for under $100, more recreation and fun at the Resorts coupled with extra hours at the parks and it was near perfect.
The Disney commercials prove the point that it is theme parks with convenient on site hotels. That old Cosby commercial, and others from the 80s/90s, really illustrated the VACATION KINGDOM OF THE WORLD! Which does not exist anylonger.
StarWarsGirl
Well-Known Member
- In the Parks
- No
Yeah, I'd expect pricing to increase, but when you're basing your entire revenue increases on increased pricing...that's a problem. If your operating expenses are increasing and your revenue increases at basically the same rate, fine, that's inflation, but that is not in fact what has been happening. It's been a bit since I read the 2024 10-K, but it was basically cutting operational costs and increasing prices. Which, cutting costs itself isn't a bad thing on its own because companies can overspend, but it is if that's your entire long-term strategy. So if I were an analyst or investor, I'd be like, figure out how to increase your capacity, increase sales somewhere, etc. And yes, that does frequently require capitalized spending (new projects, rides, attractions). Which is also why I think paid lightning lane is getting them to do these projects as well; they have a direct revenue stream from that attraction rather than just having to estimate increased ticket spending/capacity and can more clearly show the payback period. And no, as a guest, I still don't like it.
And that’s what all defenders of these financials won’t ever address
There is no way to operate in an environment where you believe you have no price ceilings. Hasn’t happened…never will
It’s why blue ocean is a theory…a really stupid one
I'd also encourage them to take a look at their pricing strategy, specifically for things like merchandise and food/beverage. I'm not a pricing analyst, so I can't say specifically what should be cut, but they likely can sell more of stuff if they cut prices somewhere and there by increaee their overall revenue. Like, if restaurants aren't full, look at the pricing and analyze if cutting prices would bring in more guests. Annual passes would be another good area to look at.
My favorite thing on the statements is still the approximate $210 million accelerated depreciation charge (or asset impairment charge) for the Galactic Star cruiser hotel closure in 2023. Oh, what a fail...
Chi84
Premium Member
That’s all still there except for the “under $100.”
Basil of Baker Street
Well-Known Member
The simple answer would be cut prices to bring in more guests to increase revenue. To the parks, hotels and restaurants......except for that little pesky capacity issue they've been sticking their head in the sand.....for the last 2 decades
StarWarsGirl
Well-Known Member
- In the Parks
- No
Oh, most definitely.
Plus, the IP there doesn't really appeal to me. I know some are very into Harry Potter; I am not one of those people. Men in Black, How to Train your Dragon, and Mario are basically what appeal. Other than that, I'm much more into the IP featured in Disney parks overall. Now, if Universal built a Star Trek area...
I also really enjoy parks that don't have very much IP, I guess from growing up on older Disney. I enjoy Busch Gardens Williamsburg, and I LOVED Knott's. Knott's was so cool, absolutely recommend.
Jrb1979
Well-Known Member
IMO that was the marketplace. With the additions both are adding it's changing. Both Universal and Disney have been adding more thrills than in the past.
flynnibus
Premium Member
Not really...
The properties used to have a lot more water sports... more onsite things like tennis... you would do sailiing or fishing.. more activities at fort wilderness.. you might be doing more of the tours.
Sure the resorts have some 'kids activities' of different flavors, the marinas are still there, the beaches are all roped off, sure there is some golf still.. but the entire pacing and way people spend time on property has completely changed. It's a combination of guest habits and product structure from the company.
When was the last time you saw a trip report where people talked about doing water sprite rentals?
Now those 'resort activities' all about fireworks cruises, pool breaks.. and maybe the nighttime movies for the kids.
Vacationing at WDW was radically different during the 70s and 80s for those who stayed onsite. The Disney decade started crowding the schedule.. and the ticketing changes that came along with MYW structure and Disney's continued growth and marketing strategies honed visitors into focusing on the parks by bundling hotel and ticket lengths in packages. Add in the marketing they'd drone into everyone in the room TVs about 'cant miss' (anything) and people would run themselves ragged trying to get to everything on property. Who has got time for an afternoon on the lake when there is stuff you haven't seen yet!!!
The pacing, pricing, marketing and scale of WDW killed the vacation kingdom and turned it into the Theme Park Kingdom.
I honestly don't know why Americans insist on having these 350sq ft hotel rooms at a place like Disney when most just use them to sleep and get changed. Euro Urban sized hotel rooms would work just as well if American stigmas weren't already entrenched about what makes a hotel 'good' or not.