MyMagic+ Payoff - I Don't Get It

[*NikkiBell*]

Listening to the segment about MyMagic+, more and more I find myself asking how on Earth this wristband system could have the payoff Disney is looking for. If it cost a billion dollars to make, that's the equivalent of AK or a cruise ship, something Pete pointed out on the show. I just don't get it though. How could this lead to profits that would equate that of a theme park or cruise? I know that it makes purchases easier, but does Disney really think that will lead to the large amount needed to make up for the money spent on this program? More time in the parks I can see too, but again how will that cover the costs? A billion dollars is a lot of money and this is just not adding up for me. What do you think? My mind is blown here.

 

[sayhello]

It seems to me there has to be a piece to it that we just don't know about yet.

Sayhello

 

[WorldWacky]

If it is exclusive for resort guests and Disney eventually fazes out the old Fastpass system in place for this, maybe Disney feels like people will be willing to stay on property to take advantage of Fastpass at all. More heads in beds=more money. I hope we get to try it out for our upcoming trip. I'm one of those uber-planners that will love this!

 

[Kimberle]

It encourages people to stay on site. There are rummers that the number of advanced fass passes will be tied to your resort. Deluxe resorts have more, with off site having the least amout. There are also rummers that on-site guests will be able to book their fast passes first. (Sort of like with dining now, onsite can book 180+10).

Disney can better control their staffing. They will have a better handle on exactly where people will be at what times. They can "smooth out" the day with the number of fast passes they advance book. Busy times of the day will have less passes available, slower times will have more.

The ability to pre-order food will allow them to better manage their food prep staff and food itself. They will have a better handle on what food goes where, how much to prepare and when to prepare the food. This will allow for less waste. They also will not need as many cashiers. The more automation, the less need for people.

By allowing only 1 park per day to be pre-scheduled, most vacationers are going to stay for at least 4 full days, 1 per park. A lot of people currently spend long weekend (3 days) at the parks. If WDW can extend this by 1 day, this is a ton more revenue.

Many guests will have more time "open" in their day. This will allow for more "paying" activities such as mini golf, Circ, tours, spas, etc.

The more control Disney has over you and your time, the more control they have over your money. As a guest, it will be even more important to maintain control over your vacation. Those of us who are "seasoned" will learn how to manage the new system. Those new guests are going to be very overwhelmed.

 

[Friendly Frog]

Totally agree.

Also, up-selling you to a higher lever resort (so you will get more passes.)

I am still not convinced that at some time in the future ( 5 years or more) they won't decide to charge in some way, such as for extra passes, or for off site guests.

Personally I would rather be able to pull two fastpasses in a day for my favorite ride, than to choose one ride from each of the three lists. ( Which is the way it worked in December.)

The good news is you don't have to be up at rope drop to get a fastpass, and sleeping in on vacation is wonderful.

 

[Kimberle]

I think you will still need to be there at rope drop. You can't schedule everything and/or you will want to ride some rides more than once.

 

[roomthreeseventeen]

Wait until they charge you $19.99 for 30 minutes of phone-charge time.

 

[stindall]

It encourages people to stay on site. There are rummers that the number of advanced fass passes will be tied to your resort. Deluxe resorts have more, with off site having the least amout. There are also rummers that on-site guests will be able to book their fast passes first. (Sort of like with dining now, onsite can book 180+10).

Disney can better control their staffing. They will have a better handle on exactly where people will be at what times. They can "smooth out" the day with the number of fast passes they advance book. Busy times of the day will have less passes available, slower times will have more.

The ability to pre-order food will allow them to better manage their food prep staff and food itself. They will have a better handle on what food goes where, how much to prepare and when to prepare the food. This will allow for less waste. They also will not need as many cashiers. The more automation, the less need for people.

By allowing only 1 park per day to be pre-scheduled, most vacationers are going to stay for at least 4 full days, 1 per park. A lot of people currently spend long weekend (3 days) at the parks. If WDW can extend this by 1 day, this is a ton more revenue.

Many guests will have more time "open" in their day. This will allow for more "paying" activities such as mini golf, Circ, tours, spas, etc.

The more control Disney has over you and your time, the more control they have over your money. As a guest, it will be even more important to maintain control over your vacation. Those of us who are "seasoned" will learn how to manage the new system. Those new guests are going to be very overwhelmed.

That's all fine and dandy but not everyone wants to schedule their day around what Disney wants. How is it fair to those parents who just want to give their kids a little magic but they have to save up for a long time and can only afford a few days or a value resort?

 

[PainInIL]

I guess I don't understand why everyone thinks this system has to be "fair". This allows Disney to to extract as much money out of each guest as they are able. Say goodbye to the days when everyone in the park - with the exception of those on private tours - were basically treated equally. The future is where your experience will be better based on the amount of money you are willing to spend on your Disney resort. The thinking is a tiered system will push people who would normally stay at a Value into a Moderate and Moderates into the Deluxes. It will also let them phase out Free Dining and replace it with a promotion where you get more Fast Pass reservations per day.

It gives Disney tools to increase revenue without really having to give anything away.

 

[twob4him]

I with T....they're doing it out of the kindness of their hearts.

No, really, there is a puzzle piece missing. Could it be tied to staying on property??? Here is an idea....I think return guests should simply get more access....wouldn't that be great? A kind of loyalty program. Include DVC members and APH too. Oh you spend all of your available income on Disney...here is a fastpass for you.

I hope they don't screw it up. Oh and if you're reading this Disney.....fix your website! Everyday I see people complaining about access everyday!!!

 

[roomthreeseventeen]

They can’t possibly tie it to staying on property and piss off Annual Passholders/Florida Passholders.

 

[stindall]

I guess I don't understand why everyone thinks this system has to be "fair". This allows Disney to to extract as much money out of each guest as they are able. Say goodbye to the days when everyone in the park - with the exception of those on private tours - were basically treated equally. The future is where your experience will be better based on the amount of money you are willing to spend on your Disney resort. The thinking is a tiered system will push people who would normally stay at a Value into a Moderate and Moderates into the Deluxes. It will also let them phase out Free Dining and replace it with a promotion where you get more Fast Pass reservations per day.

It gives Disney tools to increase revenue without really having to give anything away.

Running your company in that way isn't really appealing to me and I'm sure many people feel the same way; and if this sort of thing is actually forced on me then I won't be going back to Disney. If it's not forced on me then no harm done really but I just don't see the appeal. Yeah yeah yeah life isn't fair either but guess what? I don't pay for living, I pay for a vacation and I don't want to be kicked a little because I don't make as much money as others do.

 

[PainInIL]

I really think they view Annual Passholders as "Nice to Have" income, but view increasing on-site stays as mandatory income. Just look to California at the string of increases on Annual Passes. Disney is in the business to make money, not keep the locals happy.

When people talk about DVC, remember DVC owners have already paid their money to Disney. Their annual dues go to maintenance and don't count as income. What incentive is there for Disney to make them a high priority? I am not saying Disney will ignore them, but I don't think they will go out of their way to appease them. The bottom line is Disney makes the most money on the guest that comes down every 1 or 2 years, stays for 7-10 days in a Deluxe Resort and buys the Dining Plan. Disney is trying to get more people to do this and the big incentive will be "you don't even have to wait in line, just give us your credit card and leave the rest to us".

This isn't Walt's company where he thought once you walked through the gate everyone was equal. This is what Wall Street demands - maximize revenue by extracting as much as each guest is willing to pay. Your future experience will be absolutely amazing - as long as you have the money to pay.

 

[rlduvall]

When people talk about DVC, remember DVC owners have already paid their money to Disney. Their annual dues go to maintenance and don't count as income. What incentive is there for Disney to make them a high priority? I am not saying Disney will ignore them, but I don't think they will go out of their way to appease them. The bottom line is Disney makes the most money on the guest that comes down every 1 or 2 years, stays for 7-10 days in a Deluxe Resort and buys the Dining Plan. Disney is trying to get more people to do this and the big incentive will be "you don't even have to wait in line, just give us your credit card and leave the rest to us".

I do not agree with this logic completely. DVC is one of their most profitable divisions and they are constantly building new DVC resorts to sell. I cannot see them now alienating all those potential new buyers of DVC, leaving DVC properties unsold for years.

 

[quikah]

This isn't Walt's company where he thought once you walked through the gate everyone was equal.

This was never true. Club33 is the most obvious example of that.

As for the MyMagic+, I can see them piling on addons, the magicband potentially opens up an entirely new revenue stream for them.

 

[dansyr2514]

Just a thought...but maybe it's no so direct as upselling. Just my thoughts on the matter....

Maybe allowing people to schedule their fastpasses allows people more time in the shops to spend money..rather than standing in a line. Or possibly, the less irritated people get waiting in line....the longer they will stay in the park, spending money on food, souvenirs etc.

The better experience the guest has, the more likely they are to come back.

It's all more money in Disney's pocket.

I honestly don't know how I feel about the whole my magic plus yet, but I am curious to see how it all plays out!

 

[elaine and the boys]

We usually stay at the Swan or Dolphin and buy our park tickets through Undercover Tourist. Swan/Dolphin guests get extra magic hours, Disney bus/boat transportation, but no dining plan. Do you think Swan/Dolphin guests will be included in this new program? And when does it all begin?

 

[*NikkiBell*]

I do not agree with this logic completely. DVC is one of their most profitable divisions and they are constantly building new DVC resorts to sell. I cannot see them now alienating all those potential new buyers of DVC, leaving DVC properties unsold for years.

I agree with this here. DVC is a big money maker for them. Not only would it alienate potential DVC owners, but also those who are considering buying more points.

Just a thought...but maybe it's no so direct as upselling. Just my thoughts on the matter....

Maybe allowing people to schedule their fastpasses allows people more time in the shops to spend money..rather than standing in a line. Or possibly, the less irritated people get waiting in line....the longer they will stay in the park, spending money on food, souvenirs etc.

The better experience the guest has, the more likely they are to come back.

It's all more money in Disney's pocket.

I honestly don't know how I feel about the whole my magic plus yet, but I am curious to see how it all plays out!

I thought this originally, but it doesn't seem like a sure fire thing to me. Disney couldn't possibly base a billion dollar venture on something that could happen. It's got to be something big - something they have a guarantee will work to return their investment.

We usually stay at the Swan or Dolphin and buy our park tickets through Undercover Tourist. Swan/Dolphin guests get extra magic hours, Disney bus/boat transportation, but no dining plan. Do you think Swan/Dolphin guests will be included in this new program? And when does it all begin?

I don't have any basis for this, but I don't think the Swan and Dolphin will be included. If they go to a resort-based system for the FP+, perhaps they will be on their own tier, if on there at all.

 

[PainInIL]

Just remember, we are talking about an initiative that cost somewhere between 1-1.5 billion dollars. For this to be greenlit, corporate wants a return of investment of 3-5 years. They aren't doing this out of the goodness of their hearts. They feel putting their money into this will yield them somewhere north of 200 million dollars a year on top of what they are seeing today. It could be argued that this is a defensive mechanism to keep Universal at bay, but I am skeptical. I really think that while you may not be paying for this service directly, you will pay for it somehow. The most likely way I think is tying it directly to your hotel room and continually increasing hot rates 5% annually to cover it. Many people have already been priced out of Disney vacations. That is only going to get much worse in the coming 5 years.

 

[MrRomance]

Listening to the segment about MyMagic+, more and more I find myself asking how on Earth this wristband system could have the payoff Disney is looking for. If it cost a billion dollars to make, that's the equivalent of AK or a cruise ship, something Pete pointed out on the show. I just don't get it though. How could this lead to profits that would equate that of a theme park or cruise? I know that it makes purchases easier, but does Disney really think that will lead to the large amount needed to make up for the money spent on this program? More time in the parks I can see too, but again how will that cover the costs? A billion dollars is a lot of money and this is just not adding up for me. What do you think? My mind is blown here.

I think Disney are looking to recover the costs in multiple ways. Increased spending (people not thinking the wristband is really spending money), decreasing staff (better mobilization of CM's where needed), rolling in "perks" for on-site guests (increasing resort guest numbers), custom wristbands (why get the standard one for free when you can have one with Mickey and your name on it for $25), perhaps some new paid interactive experiences. Doesn't take long for all of those to add up. I don't think they plan on recovering the cost super quickly, but WDW will be selling those wristbands for a long time yet!