WSJ: Even Disney Is Worried About The High Cost Of A Disney Vacation (gift link)

[lazyboy97o]

Auntie Anne’s pretzels are so much better than Mickey Mouse pretzels.

 

[Tom P.]

Auntie Anne’s pretzels are so much better than Mickey Mouse pretzels.

Oh, by a mile. I mean, it's not even a contest.

 

[Stripes]

Len's article was about people who want to go to Disney but are being priced out, and the impact that is having on the company. No one is saying everything is directly comparable to Disney, just that your vacation dollars don't get you as much Disney as you used to...even when accounting for inflation. Potential customers are not always Disney die hards who would chose them over anything else.

Parks and Resorts operating expenses increased over 40% between 2018 and 2024 despite lower attendance. The U.S. CPI did not increase by anywhere near that much, therefore inflation has affected Disney more than the overall economy and thus adjusting for inflation using the CPI doesn’t adequately account for inflationary pressures on the parks and resorts business. As further evidence, the parks and resorts operating margin increased by a mere 2.27% despite a revenue increase of 46.72%.

This ignores that Disney is still playing catch up for so many years of underinvestment, the cost of building new attractions has spiraled out of control for them (disincentivizing new builds of non headliners that provide flex capacity and can't sell LL on their own) and they are notoriously slow at doing so. It also ignores the company's focus to optimize existing space with replacements vs new builds.

One could argue they slowed down after over-investing in low quality expansions and focused on fewer high quality expansions. The cost of anybody building anything these days has spiraled.

Although replacing some attractions, the clear focus recently has been on growing capacity. The Disneyland Forward project is focused on pure expansion. The project at WDSP is almost pure expansion. And there hasn’t been a greater focus on increasing capacity at WDW in a very long time despite the closure of some low-demand attractions. Furthermore, the SFWMD application suggests a significant expansion of MK is in the plans beyond what has been announced.

It was $8.25 in early 2024 when I took this picture. Noticed it was now $8.50 when I was there in December.

Haven't been in a mall in 20 years so I can't speak to your comparison but I do remember it wasn't too long ago the same Mickey pretzel was $3.50.

Looks like your mall is ripping you off. Here's a different mall:

It does seem to vary. In the interest of a fair comparison, here’s a random store in Orlando.

Of course, Auntie Anne’s pretzels have better flavor but I don’t think $8 is “ridiculous” considering you are in a theme park. Actually, many restaurants at WDW have better food at lower prices than I can find around town where I live.

 

[JoeCamel]

Cheese dip is only $1.29 at Universal, you should demand a refund

 

[Moth]

I’m believe it’s $8 for a Mickey Pretzel with cheese at MK. Auntie Anne’s original pretzel with cheese dip at my local mall is $7.

Not much difference there.

My local mall has a pepperoni pretzel for $5.50 at Auntie Anne's. Makes the endorphins in my head dance more than a Mickey Pretzel.

If you want a REAL pretzel on WDW ground? I think Wetzel is still kicking at Springs. Love that place. Got me hooked on soft pretzels.


Also, awesomely written, well thought out article, major props to @lentesta on the work done for it.

 

[DarkMetroid567]

Cheese dip is only $1.29 at Universal, you should demand a refund

I got a Fire Flower pretzel with (cold) cheese at USH for like $10. It was disgusting lol.

 

[JoeCamel]

I got a Fire Flower pretzel with (cold) cheese at USH for like $10. It was disgusting lol.

WTH is a fire flower pretzel?
Sounds like one of those commie cali things

 

[DarkMetroid567]

WTH is a fire flower pretzel?

Mario-themed pretzel!! Just looks like a fire flower.

 

[JoeCamel]

Mario-themed pretzel!! Just looks like a fire flower.

Oh, no wonder it sucked?

 

[Moth]

Oh, no wonder it sucked?

Now if it was a Donkey Kong pretzel, that's where the quality is. Everyone knows the worst DK game is better than the best Mario game.

 

[DarkMetroid567]

Oh, no wonder it sucked?

tru. The Mario-themed stuff for the most part is terrible at both USH and USJ.

generally agree that wetzels/annes are better than in-park offerings. Same goes for the Mickey beignets.

 

[lentesta]

Though the $7.99 becomes $8.51 with tax. The cart in front of the castle has tax included, no?

View attachment 843489

I don't believe it does, but I'll check. It would be unusual for one place to be tax-inclusive and the other not.

 

[JD80]

During the fact-checking process, someone from WSJ came back to me and said "Disney disputes your $3,800 number for a family in the 4th quintile of income. They say the cheapest vacation is $3,026 before food and transportation."

I was like "They actually said it out loud? Oh god. Print that."

I'm still on the first page of this thread, however I just read the the WSJ article and nearly spat out my tea when I read that line.

THEY ACTUALLY GAVE A DOLLAR AMOUNT AND CALLED IT CHEAPEST????

 

[Laketravis]

Parks and Resorts operating expenses increased over 40% between 2018 and 2024 despite lower attendance. The U.S. CPI did not increase by anywhere near that much, therefore inflation has affected Disney more than the overall economy and thus adjusting for inflation using the CPI doesn’t adequately account for inflationary pressures on the parks and resorts business. As further evidence, the parks and resorts operating margin increased by a mere 2.27% despite a revenue increase of 46.72%.

Why do you suppose that is? I know labor costs increased subtantially but I wouldn't think that's all of it and they have a pretty good handle on dynamic staffing to address that, especially with fewer customers to serve.

Of course, Auntie Anne’s pretzels have better flavor but I don’t think $8 is “ridiculous” considering you are in a theme park.

Not to beat a dead pretzel to death, but I think it's ridiculous in the sense that the same pretzel was $3.50 not too many years ago. Jumbo frozen soft pretzels can still be had wholesale from Sysco for around $15 a case (2 dozen), not a signficant price increase over the same period.

Point is if WDW saw 46% revenue growth over a six year period but only eeked out a 2% increase in operating revenue because operating expense increased over 40% despite significant (and forward-facing obvious) cost cutting measures, it's difficult to not predict a gloomy future.

 

[lentesta]

I'm still on the first page of this thread, however I just read the the WSJ article and nearly spat out my tea when I read that line.

THEY ACTUALLY GAVE A DOLLAR AMOUNT AND CALLED IT CHEAPEST????

God love ‘em, they did.

 

[Stripes]

Why do you suppose that is? I know labor costs increased subtantially but I wouldn't think that's all of it and they have a pretty good handle on dynamic staffing to address that, especially with fewer customers to serve.

The national CPI for restaurants and hotels has increased by 38.5% since January 2018. So that part of the business is under a lot of pressure as just one example.

From another WSJ article. Sound familiar?

New York City hotel prices have hit new highs, with an average daily rate of $345 in recent weeks, according to one price tracker. The city recorded its highest-ever monthly rate in September, when hotels charged $417 a night, on average.

Hotels are fuller than a year ago, with almost nine out of every 10 rooms occupied in November, according to CoStar.

Domestic airfare, sightseeing tours and many of the choicest tickets on Broadway are up. A ticket to “The Lion King” during Thanksgiving week cost more than $221 on average, up from around $192 five years ago, according to the Broadway League.

The costs of lodging are prompting big changes for travelers sticking to a budget. Some are canceling dinner plans, seeking cheaper activities or booking hotel rooms farther from the city center. Others are trawling room and apartment rentals through social media or looking to housesit, since recent city rules have made Airbnb stays harder to find.

Tourists with few cash constraints, however, are splurging on New York City itineraries, hellbent on leaving with zero vacation regrets.

 

[Nubs70]

That's possibly going to be us this year.

Rather than a weeklong on-property-only staycation this summer, we're aiming for two weeks in Europe for almost the same money (airfare is paid for with points, so travel expenses are a wash). Paris + Brussels + Cologne.

Be sure to climb the cathederal bell tower. Best done first thing in the morning.

 

[Tha Realest]

I'm still on the first page of this thread, however I just read the the WSJ article and nearly spat out my tea when I read that line.

THEY ACTUALLY GAVE A DOLLAR AMOUNT AND CALLED IT CHEAPEST????

Translation: Let them eat at the Cake Bake Shop® by Gwendolyn Rogers

 

[Tha Realest]

THEY ACTUALLY GAVE A DOLLAR AMOUNT AND CALLED IT CHEAPEST????

 

[Laketravis]

The national CPI for restaurants and hotels has increased by 38.5% since January 2018. So that part of the business is under a lot of pressure as just one example.

From another WSJ article. Sound familiar?

New York City hotel prices have hit new highs, with an average daily rate of $345 in recent weeks, according to one price tracker. The city recorded its highest-ever monthly rate in September, when hotels charged $417 a night, on average.

Hotels are fuller than a year ago, with almost nine out of every 10 rooms occupied in November, according to CoStar.

Domestic airfare, sightseeing tours and many of the choicest tickets on Broadway are up. A ticket to “The Lion King” during Thanksgiving week cost more than $221 on average, up from around $192 five years ago, according to the Broadway League.

The costs of lodging are prompting big changes for travelers sticking to a budget. Some are canceling dinner plans, seeking cheaper activities or booking hotel rooms farther from the city center. Others are trawling room and apartment rentals through social media or looking to housesit, since recent city rules have made Airbnb stays harder to find.

Tourists with few cash constraints, however, are splurging on New York City itineraries, hellbent on leaving with zero vacation regrets.

I wasn't asking about price increases, I was referring to cost increases. Specifically, you said WDW saw it's operating costs rise by over 40% and I asked:

"Why do you suppose that is? I know labor costs increased subtantially but I wouldn't think that's all of it and they have a pretty good handle on dynamic staffing to address that, especially with fewer customers to serve."