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

[DisneyHead123]

Not sure where you got those numbers but Google sez there are about 12 million in the top 10% earning bracket 2023. Top was defined as $191K +

I did 10% of the population - like I said in my post, not sure how they calculate those numbers. But regardless - the top 10% will clearly be larger by many millions when the population has grown by over 100 million people in the US alone.

 

[monothingie]

Yeah, but that's even further up the ladder.

Think more the people that have multiple SUVs, or Teslas... have the 700k-1.5M home... pay for the maid service.. Dad is the sales exec.. the kid gets PS5 during launch week, etc. The people who are comfortable rich - not snob rich.

You can have income in the 300-500k/yr range and still be seen as rich and those types are the type willing to throw money at 'conveniences'

I agree, That's the target segment that Disney wants visiting. But that demo is mostly represented by DVC families already (which are less favorable because the growth rate flat and they know the way stuff works and may not spend as much). The normies that they want filling up their Deluxe Resorts have many other options that are far more attractive than sweating in the hot and humid swamp.

If the strategy of appealing to that segment was working, the deluxe resorts would be booked to capacity, but they're not. Mostly because there's nothing special there. The entire Disney experience is now based on how much extra you'll pay for it, and even in these upper income segments, there's a limit of how far they'll go. It's made worse by the constant negative PR that further reinforces decision makers to consider something else. (Regardless of how many insufferable bought and paid for social media influencers shill for the Mouse.)

They've already pushed away other income demos because the moderate resorts aren't booked to capacity and the value resorts aren't booked to capacity.

Targeting all your offerings for higher spending guests is unsustainable because it eats away at visitor base that provides stability and future growth potential in exchange for short term revenue.

 

[Brer Panther]

If they're so worried about the high cost, why don't they, I don't know, make the cost of a Disney vacation at least SLIGHTLY cheaper?

I know, I know...

 

[Tha Realest]

If they're so worried about the high cost, why don't they, I don't know, make the cost of a Disney vacation at least SLIGHTLY cheaper?

I know, I know...

Because the decision makers don’t really care for the long, long term viability here, and are seeking to maximize profits right now.

 

[TheMaxRebo]

If they're so worried about the high cost, why don't they, I don't know, make the cost of a Disney vacation at least SLIGHTLY cheaper?

I know, I know...

I think they think the base line is still affordable and why they have stripped things out vs keeping things included and raising pricing.

As they say the lowest ticket price hasn't increased and as Len's analysis showed, adjusted for inflation food costs are lower and the All Stars are cheaper.

BUT you get less for your $ and to have the same type of type you had 5-10 years ago you have to spend a lot more.

And people have less excess $ due to the cost of everything outpacing salary increases so people want more for what they spend not less

Back 5-10 years ago people could save and donate trip every few years and it was a stretch but they felt like they got a special experience and willing to sacrifice for it - that experience no longer feels worth it to many

 

[monothingie]

If they're so worried about the high cost, why don't they, I don't know, make the cost of a Disney vacation at least SLIGHTLY cheaper?

I know, I know...

Because they can’t. WDW is the cash machine for the company.

 

[Chi84]

I agree, That's the target segment that Disney wants visiting. But that demo is mostly represented by DVC families already (which are less favorable because the growth rate flat and they know the way stuff works and may not spend as much). The normies that they want filling up their Deluxe Resorts have many other options that are far more attractive than sweating in the hot and humid swamp.

If the strategy of appealing to that segment was working, the deluxe resorts would be booked to capacity, but they're not. Mostly because there's nothing special there. The entire Disney experience is now based on how much extra you'll pay for it, and even in these upper income segments, there's a limit of how far they'll go. It's made worse by the constant negative PR that further reinforces decision makers to consider something else. (Regardless of how many insufferable bought and paid for social media influencers shill for the Mouse.)

They've already pushed away other income demos because the moderate resorts aren't booked to capacity and the value resorts aren't booked to capacity.

Targeting all your offerings for higher spending guests is unsustainable because it eats away at visitor base that provides stability and future growth potential in exchange for short term revenue.

Wouldn’t the place be miserable if all those resorts were booked to capacity?

As has been pointed out ad nauseam, the ride/park capacity is not there to sustain those numbers of people.

We were there in 2018 and 2019 and the place was so packed people were miserable.

Short of a time machine, how is Disney management supposed to handle the large numbers of guests visiting the parks right now?

 

[Jrb1979]

Wouldn’t the place be miserable if all those resorts were booked to capacity?

As has been pointed out ad nauseam, the ride/park capacity is not there to sustain those numbers of people.

We were there in 2018 and 2019 and the place was so packed people were miserable.

Short of a time machine, how is Disney management supposed to handle the large numbers of guests visiting the parks right now?

First would be to bring back all the streetmosphere, shows and parades. Give something other than rides to do. Limit LL so more people are in the standby queue so less people are filling the walkways waiting for their return time.

 

[lazyboy97o]

Short of a time machine, how is Disney management supposed to handle the large numbers of guests visiting the parks right now?

How is keeping Tomorrowland Terrace closed during lunch helping handle things?

 

[Chi84]

First would be to bring back all the streetmosphere, shows and parades. Give something other than rides to do. Limit LL so more people are in the standby queue so less people are filling the walkways waiting for their return time.

I’m not talking about the walkways. I’m talking about the restaurants, buses, trams, resort pools, Disney Springs, water parks, etc.

People aren’t going to stand in long lines for rides anymore no matter how much you want that to happen.

When we started going to WDW there were young kids, but very few infants or toddlers as least as compared to today. There were not nearly as many elderly people or people in scooters, wheelchairs etc.

Your idea would negatively impact multi-generational families. It might bring WDW closer to its original vision, but that world is gone.

 

[Chi84]

How is keeping Tomorrowland Terrace closed during lunch helping handle things?

I’m talking about significant impacts.

 

[Minnesota disney fan]

Do they? They may not; it remains to be seen.

Agree. Another problem that I think will be a big problem is that the kids today are Not raised on Disney, like my generation was. They may not be familiar with Mickey or Donald, at least not any more than they are aware of the newer trendy ones.. I'm talking about Mario and others too. I am of the Mickey Mouse generation with the Mickey Mouse Club and Annette and the gang. The original Disney MM cartoons were better, IMO.
Maybe this isn't a problem, but I think it affects families more than we think.
Maybe Disney is pushing everything they can to make money now because they see the writing on the wall for MM too.
Or, I may be way off. Just thinking out of the box on this problem.

Just food for thought.........

 

[lazyboy97o]

I’m talking about significant impacts.

So you don't believe in starting small and making progress? Is this a universal belief or exclusive to Disney?

 

[Chi84]

So you don't believe in starting small and making progress? Is this a universal belief or exclusive to Disney?

No I do believe in starting small and making progress. But the posters commenting here seem to be discussing the problem on a much larger scale.

I agree with opening that restaurant.

 

[Sirwalterraleigh]

I did 10% of the population - like I said in my post, not sure how they calculate those numbers. But regardless - the top 10% will clearly be larger by many millions when the population has grown by over 100 million people in the US alone.

Yeah but wealth has become more concentrated…not less…for decades

Since 1968…actually

We are now 3 gennys in to a trend that will have much less wealth than their parents

 

[Sirwalterraleigh]

Agree. Another problem that I think will be a big problem is that the kids today are Not raised on Disney, like my generation was. They may not be familiar with Mickey or Donald, at least not any more than they are aware of the newer trendy ones.. I'm talking about Mario and others too. I am of the Mickey Mouse generation with the Mickey Mouse Club and Annette and the gang. The original Disney MM cartoons were better, IMO.
Maybe this isn't a problem, but I think it affects families more than we think.
Maybe Disney is pushing everything they can to make money now because they see the writing on the wall for MM too.
Or, I may be way off. Just thinking out of the box on this problem.

Just food for thought.........

This has been getting more and more play of late as well…

Disney doesn’t have the control of the kid market as they once did…and that trend line continues downward.

So not the IP driver…and not as universal of a family vacation Stop…

Sound good for those quarterlies?

The desperation on paying ransoms for bluey reinforces that.

 

[Chi84]

Agree. Another problem that I think will be a big problem is that the kids today are Not raised on Disney, like my generation was. They may not be familiar with Mickey or Donald, at least not any more than they are aware of the newer trendy ones.. I'm talking about Mario and others too. I am of the Mickey Mouse generation with the Mickey Mouse Club and Annette and the gang. The original Disney MM cartoons were better, IMO.
Maybe this isn't a problem, but I think it affects families more than we think.
Maybe Disney is pushing everything they can to make money now because they see the writing on the wall for MM too.
Or, I may be way off. Just thinking out of the box on this problem.

Just food for thought.........

The people who are nostalgic for the parks when they started are pretty old now. Their kids can’t afford to take their families. So what place will nostalgia have down the line?

 

[JoeCamel]

Wouldn’t the place be miserable if all those resorts were booked to capacity?

As has been pointed out ad nauseam, the ride/park capacity is not there to sustain those numbers of people.

We were there in 2018 and 2019 and the place was so packed people were miserable.

Short of a time machine, how is Disney management supposed to handle the large numbers of guests visiting the parks right now?

The obvious answer is get serious about phase closures. Lower the threshold and cater to your resort guests and affiliated hotels. It would provide the experience you want, it would not provide the revenue they want but it would achieve your goal.

Works until the next black swan event or recession then they need a new game plan.

 

[Tha Realest]

As they say the lowest ticket price hasn't increased

How many days a year is that lowest ticket price offered?

 

[ConfettiCupcake]

Agree. Another problem that I think will be a big problem is that the kids today are Not raised on Disney, like my generation was. They may not be familiar with Mickey or Donald, at least not any more than they are aware of the newer trendy ones.. I'm talking about Mario and others too. I am of the Mickey Mouse generation with the Mickey Mouse Club and Annette and the gang. The original Disney MM cartoons were better, IMO.
Maybe this isn't a problem, but I think it affects families more than we think.
Maybe Disney is pushing everything they can to make money now because they see the writing on the wall for MM too.
Or, I may be way off. Just thinking out of the box on this problem.

Just food for thought.........

I have elementary aged kids and I completely agree with you. There is way more competition in the children’s entertainment space than ever. Who was the last generation when Disney was the dominant player? Millennials? Maybe older Gen Z.

My kids know Disney because I love Disney and it’s the media I chose to show them young, helping to create that nostalgia and familiarity. Their peers don’t elevate Disney at all and differentiate it from other kids entertainment, unless their parents are Disney people.

Disney used to do synergy by inserting the parks into their entertainment media, drawing people in. Now it seems like it’s more the opposite, where synergy is plopping the IP everywhere instead, but how long until people just aren’t drawn in by IP that means nothing to them?