Thoughts on the Annual Price of Admission Increase...

[Joshua_me]

Foolish me.

I actually thought with the extensive work going on in FantasyLand, Main Street USA, and the partially burned Tiki Room, (that last one admittedly not their fault) that there might not be a rate increase this year.

Yes. I understand the need to change and grow and expand, but if this was the Summer of my families' "trip of a lifetime", I'd be more than a little PO'd when I discovered all the rehabs that are going on currently.

(Goodness knows Disney doesn't mention any of this, save for a small sign by the turnstiles...)

One would think that perhaps the yearly increase would have been suspended for one year. Especially considering the state of the economy at the moment and the state of disrepair that a large portion of the MK is currently in...

I guess I'm living in Fantasyland permanently.

Thoughts ?

 

[WaltD4Me]

One would think that perhaps the yearly increase would have been suspended for one year. Especially considering the state of the economy at the moment and the state of disrepair that a large portion of the MK is currently in...

I love your posts, I almost always get a good giggle.

At first I was surprised they raised ticket prices 2 months early...nevermind suspending the increase for a year...but not alot they do surprises me anymore.

 

[ADP]

Nice post.... I never blame Disney for ticket price increases...I just disagree at which the rate of increases occur....Too much too fast. Is there a tipping point? You bet, and unfortunately it will come sooner than later.

 

[Cherinva]

I'm disappointed in the price increase (especially coming early), but I agree with Pete.....it's not going to stop me from buying the tickets and going. I don't live close enough to visit often, so an annual pass is not right for me...it is what it is....so I too, will shut up about it.

 

[lugnut33]

If you look at other entertainment options out there WDW is not outrageously priced.

Single day admission to Lollapalooza is $90.
Katy Perry concert $40-$70
Chicago Opera $40-$120
Daytona 500 $55-$200
One day tix. to Six Flags Chicago - $36, but they also ding you $20 for parking and front of the line $35.

 

[ct_chris]

If you look at other entertainment options out there WDW is not outrageously priced.

Single day admission to Lollapalooza is $90.
Katy Perry concert $40-$70
Chicago Opera $40-$120
Daytona 500 $55-$200
One day tix. to Six Flags Chicago - $36, but they also ding you $20 for parking and front of the line $35.

I have to agree 100% with both lugnut33 and what Peter said on the Podcast. The current ticket prices just reflect the cost of services around the country. When people stop buying the tickets to WDW and Disneyland then Disney will cut back. In the meantime I would expect at minimum of 3-5% increase/year in ticket prices.

An additional example of the same ticket price increases where everyone complains year after year but keep buying is MLB baseball tickets. Teams like the Yankees, Phillies, and Red Sox have been increasing their yearly ticket prices by >5% each each of the last five years and all three teams keep filling their ballpark game after game. Additionally, teams like the Yankees have premium tickets that run $250-$3000/game and they still get people to buy them at that price. Until people stop purchasing the ticket then these businesses will keep increasing prices based on supply and demand.

I also have to mention that WDW did add the "The Magic Memories and You" show this year and opened a new refurbished attraction in Star Tours at HS. So it is not like people are lacking for things to do at WDW. I still think the cost of WDW is a great value when you look at other entertainment options as pointed out above and thus I will continue to bring my family down year after year.

 

[mainegal]

The ten day ticket went up $20. I am a little bothered about the 11% increase. Maybe they realized it was "wrong" to pay so little to add the last few days to the ten day ticket?
Even so, $2.00 more per day. It's not that bad.

I am not going back until December 2012 for the podcast cruise. Still do not know for certain that I will be able to take off more time before the cruise, so I have not bought tickets yet.

 

[dansyr2514]

It's not just the price of tickets. The resort rack rates are crazy and the dining plan is also going up. Unfortunately, the only thing not going up is my salary. We usually make a yearly trip but at this point I think it may have to become every other yr or stay offsite and eat offsite.

 

[sjsjbrook]

When I told my DH about the price increases and discussed buying our passes for our trip in the fall of 2012 now, he asked how much is it really going up. In his mind it will be les than $50 increase in the end for our family and in the whole scheme of things it really doesn't increase our vacation that much.

Sigh he is right, but I still don't like it and would rather buy them now. Plus the amount they have increased since our first trip to now is huge and if we would have bought tickets then..... SIGH

So I see how Disney gets away with raising the prices. With the cost of the flight rooms, food and tickets........

 

[YukiPhnx]

I'm going in 2013 with 7 other people with the waterpark add-on. So we bought all the tickets before the price increase. I expect waterpark add-on to increase as well.

 

[PeterPan09]

I'm going in 2013 with 7 other people with the waterpark add-on. So we bought all the tickets before the price increase. I expect waterpark add-on to increase as well.

It did. Park Hopper and Water Park Fun and More went from $54 to $55.

I was surprised that it happened so soon, and a little surprised that the multi-day ticket prices increased at the percentage they did. The past couple of years the highest percentage increase was in the shorter duration.

I'm sure Universal will be right behind with their yearly increase.

 

[pittsburghmarc]

I may be wrong but, the Disney theme parks have the following revenue centers.

1. Food and beverage
2. Merchandise
3. Park operations

F & B is responsible for their own expenses and profits, same with merchandise. So when you think of a ticket increase don't think about food or souvenirs. That's a separate world all together.

So what would justify a ticket increase yearly? Well, salaries of the staff. We all know about the union negotiations right. We have to pay for that, not Disney.

Next, custodial services (janitors). Just like we see in the grocery store, the price of cleaning chemicals and plastic especially (like trash can liners) has taken a big increase in the past 18 months. Is Disney going to absorb those increases...no, we are.

And how about the big one? Pharmaceutical companies call it Research & Development or R&D. Disney calls it Imagineering. These talented people's salary goes up every year. And they bill Disney for it. And Disney bill's us. Did you know Disney has a research lab at Carnegie Mellon University? The leading university in the US for robotics and computer science? http://www.cmu.edu/corporate/partnerships/disney_lab.shtml We go to Disney parks because they are the best in the industry (heck, they invented it!) I'm happy to pay for this. I don't want Disney talent to work somewhere else!

Well, I'm just scratching the surface. I'm sure there's more. Has anyone noticed how fast health care costs are rising? Over 10% yearly!

Oh, and those surveys that Disney takes everywhere, they are tracking the guest's sense of value. I attended a Disney Institute seminar and learned something very interesting. Disney sends surveys/questionnaires to guest's homes 5 weeks after their vacation to determine their perceived value of their vacation. Why? Well you've received your credit card statement by then! And it seems people still say it's a good value (I agree).

Just like your family's expenses increase yearly...so does the Disney theme parks. Shareholders expect to make more yearly. So additional operating expenses will be passed on to the guest.

 

[jlindemer]

Great response!

As far as the room rates go--I am the GM of a hotel. Cotton prices are up! A dozen top sheets...$170! A dozen towels...$63! Many guests ruin the towels when they use them. They do not take off their make-up, use them to clean up spills, etc.

Things add up, and just like the ticket prices, hotel prices have to increase to keep up the same amount of profits.

 

[dansyr2514]

I understand that to a degree, but for example.
Bonnet Creek resort I can get a room 150-200 a night. Basically on Disney property, in some cases better amenities and honestly, nicer rooms. Now, I'm not talking Disney magic, and extra magic hours and such. I'm just comparing resort to resort.
I recently priced one night rack rate at GF. It was approx $585 dollars, outer building. So I'm not sure the increase on room rates at Disney is exactly valid.

 

[lugnut33]

Glad I own me some DVC. Of course, if linens and such go up, they just raise out dues.

 

[dallastxcpa]

We own DVC but the prices of the tickets have gotten to the point that our family will probably not go back to WDW until 2014. I will simply trade out my DVC points through RCI or go to Hilton Head, or Hawaii.

 

[PeterPan09]

I may be wrong but, the Disney theme parks have the following revenue centers.

1. Food and beverage
2. Merchandise
3. Park operations

F & B is responsible for their own expenses and profits, same with merchandise. So when you think of a ticket increase don't think about food or souvenirs. That's a separate world all together.

So what would justify a ticket increase yearly? Well, salaries of the staff. We all know about the union negotiations right. We have to pay for that, not Disney.

Next, custodial services (janitors). Just like we see in the grocery store, the price of cleaning chemicals and plastic especially (like trash can liners) has taken a big increase in the past 18 months. Is Disney going to absorb those increases...no, we are.

And how about the big one? Pharmaceutical companies call it Research & Development or R&D. Disney calls it Imagineering. These talented people's salary goes up every year. And they bill Disney for it. And Disney bill's us. Did you know Disney has a research lab at Carnegie Mellon University? The leading university in the US for robotics and computer science? http://www.cmu.edu/corporate/partnerships/disney_lab.shtml We go to Disney parks because they are the best in the industry (heck, they invented it!) I'm happy to pay for this. I don't want Disney talent to work somewhere else!

Well, I'm just scratching the surface. I'm sure there's more. Has anyone noticed how fast health care costs are rising? Over 10% yearly!

Oh, and those surveys that Disney takes everywhere, they are tracking the guest's sense of value. I attended a Disney Institute seminar and learned something very interesting. Disney sends surveys/questionnaires to guest's homes 5 weeks after their vacation to determine their perceived value of their vacation. Why? Well you've received your credit card statement by then! And it seems people still say it's a good value (I agree).

Just like your family's expenses increase yearly...so does the Disney theme parks. Shareholders expect to make more yearly. So additional operating expenses will be passed on to the guest.

The Union got 3% raises. Bob Iger got 28%.

 

[pittsburghmarc]

The Union got 3% raises. Bob Iger got 28%.

1 raise or 10's of thousands. And Iger gets paid from all divisions. Not just theme parks.

 

[PeterPan09]

1 raise or 10's of thousands. And Iger gets paid from all divisions. Not just theme parks.

If we're going to blame salary increases for the ticket price increases, let's not only look at the union. Let's look at ALL the salary increases and the impact. I know union bashing is what all the hip kids are doing these days, but there are a lot of people on Disney's payroll that are non-union employees and they all got larger raises than the union folks did.

 

[jpeka65844]

Foolish me.

I actually thought with the extensive work going on in FantasyLand, Main Street USA, and the partially burned Tiki Room, (that last one admiddetedly not their fault) that there might not be a rate increase this year.

I would think this is EXACTLY why Disney raised their prices early. Perhaps it's all running a little over budget......