Demand based ticket pricing

BuckeyeBama · Oct 8, 2015

Disney's stated goal in this is to even out their crowds. That is, lower crowds during peak seasons while increasing crowds during lower seasons. To do so they intend to have the price of tickets differ from one season to the next based on anticipated crowds. The reality is that this has nothing to do with crowd management. Disney already has a far more effective way of incentivizing people to travel less during peak seasons and more during low crowd seasons. They do this by changing the cost of the two most expensive portions of a WDW trip - resort rates and food.

For a family of 4 on a 10 day WDW trip, tickets will cost $1600, the room will cost from $1,000-10,000 (depending on resort choice) and food will cost $1,200-$4,400 (depending on # of children under 10 and the plan chosen) with the DDP.

Going with the lowest cost trip $1,000 for Value hotel, $1,200 for food QSDP, $1,600 for tickets. Total = $3,800 without discounts.

In September you could get the same thing for $2,600 with free dining. Even if ticket prices were reduced by 25% during this period in addition to this discount, you would only save an additional $400.

So, who is going in September that would otherwise have gone in July but couldn't be convinced with free dining but will be convinced by this? Answer - no one. And the reality is that they won't be cutting ticket prices that steeply, if at all, during these times of the year.

So tell me - if the variable resort rates and food pricing hasn't changed this, how will changing this tiny (by comparison) cost do so? Answer - it will not.

As others have said - this is to make more money during peak seasons, not to steer crowds to lower seasons. Disney isn't doing this to help anyone but Disney. I don't have a problem with the idea - just the disingenuous communication around the discussion.

Indychick · Oct 8, 2015

I haven't been to Disney for 4 years. We used to go to WDW or Disneyland every year. I used to be able to gather several FP throughout the day and could usually ride my favorite rides more than once by zigzagging around the park. We never waited in line for more than 20 minutes then and if we did it was WAY strange. We used to be able to book our favorite restaurants easily and we could get an awesome deal with the DDP because we love to eat and there was so much more included. You could decide where you wanted to go when you woke up without worrying about crowd levels in the parks because even the worse ones weren't too bad (if you went in off season like we always do). The CMs were magical and you always had the best service. The park was spotless. Everything was amazing. Over the years (I have been going every year for 21 years if you subtract my 4 year break) it has changed. I am not so bothered by the change in discounts or even the price increases. It is the decline overall. It makes me sad because no matter what I love Disney. It makes me happy thinking about it and I cry every time I see Wishes. I would gladly pay for these hikes if they restored it to the Disney that made me fall in love. You can't put a price on that in my book

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OldsDr · Oct 9, 2015

BuckeyeBama said:
... Even if ticket prices were reduced by 25% during this period in addition to this discount, you would only save an additional $400.

...

I doubt you will see any reduction, rather next increase you will see some parts of the year increase more than others.

BuckeyeBama · Oct 9, 2015

OldsDr said:
I doubt you will see any reduction, rather next increase you will see some parts of the year increase more than others.

My point - even if they do, it will not matter. This is not about evening out crowds.

Disney is capable of increasing the costs of all things (tickets, resorts and dining) during peak seasons sufficiently to drive away customers, but very few of those folks will shift their WDW vacation to a less expensive time. Those who have an interest and the ability to do that already have done so.

OldsDr · Oct 9, 2015

BuckeyeBama said:
My point - even if they do, it will not matter. This is not about evening out crowds.

Disney is capable of increasing the costs of all things (tickets, resorts and dining) during peak seasons sufficiently to drive away customers, but very few of those folks will shift their WDW vacation to a less expensive time. Those who have an interest and the ability to do that already have done so.

I see what your saying. This leads us to next years Summer promotion, Onsite guests pay September prices for the whole month of august. Look how much we're saving you

lockedoutlogic · Oct 10, 2015

OldsDr said:
I doubt you will see any reduction, rather next increase you will see some parts of the year increase more than others.

Bet the farm on this

lockedoutlogic · Oct 10, 2015

Indychick said:
I haven't been to Disney for 4 years. We used to go to WDW or Disneyland every year. I used to be able to gather several FP throughout the day and could usually ride my favorite rides more than once by zigzagging around the park. We never waited in line for more than 20 minutes then and if we did it was WAY strange. We used to be able to book our favorite restaurants easily and we could get an awesome deal with the DDP because we love to eat and there was so much more included. You could decide where you wanted to go when you woke up without worrying about crowd levels in the parks because even the worse ones weren't too bad (if you went in off season like we always do). The CMs were magical and you always had the best service. The park was spotless. Everything was amazing. Over the years (I have been going every year for 21 years if you subtract my 4 year break) it has changed. I am not so bothered by the change in discounts or even the price increases. It is the decline overall. It makes me sad because no matter what I love Disney. It makes me happy thinking about it and I cry every time I see Wishes. I would gladly pay for these hikes if they restored it to the Disney that made me fall in love. You can't put a price on that in my book .

Sadly...this is just the beginning

What they've done to the restaurant quality, experience, and pricing is a joke...that's my go to pet peeve examples...but there are many.

True Disney fans have figured out this: Wall Street loves Bob Iger but all consumers should hate him.
Horrible manager for anyone who wants the product to last...

He's built a $10,000,000 beach home..but took half the pilings from the foundation underneath to do it.

DVC Mike · Oct 10, 2015

Disney wants to capitalize on peak demand periods, and will of course increase the cost of tickets, dining and resorts during those periods - and will continue to do so as long as the demand for their product stays steady or continues to grow. That's just common business sense - or capitalism.

Do I like it? Not particularly.

As prices rise, those at the lower end of income may stop visiting WDW, but as long as the attendance stays in the millions, I don't see Disney making any cuts. If, of course, there is a drop in attendance, Disney can respond with discounts.

The mouse has a pretty good marketing plan.

. . . . . . . . . . . . . . . . . . . . . . .
Got questions about DVC?
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DVC Mike · Oct 10, 2015

In a stunning announcement today, Disney stated they are renaming their "Magic Your Way" tickets to:

http://i235.*************************************Misc/disney-world-ticket.png

And they've released the new pricing scheme, which Disney states will reduce overcrowding in the parks.

http://i235.*************************************Misc/NewDisTicketPrices_1.png

. . . . . . . . . . . . . . . . . . . . . . .
Got questions about DVC?
★ ☆ ★ THE DVC INFORMATION CENTER ★ ☆ ★
in the DVC Forums has the answers to your questions about the Disney Vacation Club.
. . . . . . . . . . . . . . . . . . . . . . .

PetePanMan · Oct 10, 2015

lockedoutlogic said:
Bet the farm on this

I agree, almost a certainty. They need to pay for star wars land

lockedoutlogic · Oct 10, 2015

DVC Mike said:
In a stunning announcement today, Disney stated they are renaming their "Magic Your Way" tickets to:

http://i235.*************************************Misc/disney-world-ticket.png

And they've released the new pricing scheme, which Disney states will reduce overcrowding in the parks.

http://i235.*************************************Misc/NewDisTicketPrices_1.png

. . . . . . . . . . . . . . . . . . . . . . .
Got questions about DVC?
Visit the DVC Information Center in the DVC Forums for the answers to your questions about the Disney Vacation Club.
. . . . . . . . . . . . . . . . . . . . . . .

tssk tssk tssk….

i don't find you're criticism very magical popcorn::

manning · Oct 10, 2015

Igers mission

Josh Hendy · Oct 10, 2015

If you could show today's ticket prices to someone from 20 years ago, I'll bet their "LOL you're kidding aren't you" reaction would be very similar to what I experienced when I read DVC Mike's post.

minnie-apple-mouse · Oct 10, 2015

Josh Hendy said:
If you could show today's ticket prices to someone from 20 years ago, I'll bet their "LOL you're kidding aren't you" reaction would be very similar to what I experienced when I read DVC Mike's post.

Although they may have bought BWV 20 years ago and can still stay as low as 10 points a night-app $50 of dues even though rack is app $400 a night, softening the blow.

disney20something · Oct 13, 2015

When Disneyland first opened tickets cost $1. The park was also very low-tech and simple compared to what it is now and what Disney World is like. Prices will increase, that's just the reality of any tourist destination.

Also, I find it interesting that people want better food and more attractions, and bigger renovations in all the parks, but then when prices go up they complain? Where do you think money for renovations comes from?? If you want more thrilling rides and expansions to old rides, and better dining experiences, the money needs to be there for that.

Disney employs thousands of people and running the resorts costs a pretty penny too. Our costs are going up because theirs are going up. And that's how the cookie crumbles. Personally, I don't let the fact that Disney is a corporation and must run like a corporation to make a profit get in the way of my enjoyment.

They may be charging more, but A) I understand why, and B) They're providing me with more magic. My home resort has much higher prices than a few years ago, but now all the rooms have been remodeled and the beds in standard rooms are bigger! That's a win for me, and I'm happy to pay the new prices.

rteetz · Oct 13, 2015

disney20something said:
When Disneyland first opened tickets cost $1. The park was also very low-tech and simple compared to what it is now and what Disney World is like. Prices will increase, that's just the reality of any tourist destination.

Also, I find it interesting that people want better food and more attractions, and bigger renovations in all the parks, but then when prices go up they complain? Where do you think money for renovations comes from?? If you want more thrilling rides and expansions to old rides, and better dining experiences, the money needs to be there for that.

Disney employs thousands of people and running the resorts costs a pretty penny too. Our costs are going up because theirs are going up. And that's how the cookie crumbles. Personally, I don't let the fact that Disney is a corporation and must run like a corporation to make a profit get in the way of my enjoyment.

They may be charging more, but A) I understand why, and B) They're providing me with more magic. My home resort has much higher prices than a few years ago, but now all the rooms have been remodeled and the beds in standard rooms are bigger! That's a win for me, and I'm happy to pay the new prices.

Disneyland on opening day was a mess. I don't think you can compare that time to now.

Also Walt never wanted to charge admission to the park rather charge for the rides and souvenirs of course.

Disney is not just a theme park company they have money coming in from many realms Movies, TV, theme parks, consumer products.

Disney's ticket increase have gone up much faster than inflation. I believe I've seen that based on inflation tickets should be somewhere around 75-80 per one day ticket.

Disney doesn't have a shortage of money. Disney employees unfortunately are not paid very well. Many employees in WDW are college program workers who make minimum wage.

disney20something · Oct 13, 2015

Whether they do or don't have shortage of money is not the issue at play here (and unless any of us here are actually in the CFO's office looking at Disney's budget, bills, and profits, then we'll never actually know, so speculating is fruitless). The reality is that the money Disney makes from its other enterprises (movies, TV, all of the channels under the Disney umbrella, etc) go towards funding more of those projects. Also, Disney is in the middle of several large renovations and construction projects throughout the parks and the resorts. Whether we like it or not, Disney guests are what pay for those expansions. Hence the bigger price tag. Personally, I am happy to pay my share for what's to come. If a longtime guest expects to pay the same amount of money now that they did in 1990 or 2000, guess what? It's not going to happen. And if that guest doesn't like it, then they can stop going to Disney. There are plenty of cheaper places to vacation. However, in my opinion, those other places just don't bring me the Disney magic, and I am willing to save up and pay a premium for that element.

Eoghann · Oct 13, 2015

disney20something said:
They may be charging more, but A) I understand why, and B) They're providing me with more magic. My home resort has much higher prices than a few years ago, but now all the rooms have been remodeled and the beds in standard rooms are bigger! That's a win for me, and I'm happy to pay the new prices.

That's just factually inaccurate. They're not providing you with more. In fact right now at WDW they're providing you with numerically less and it will be a couple of years minimum before the shortfall even balances out never mind actually offering more. Which doesn't address any other service reductions beyond simple numbers of rides.

The price increases have very little to do with the cost of the announced expansions (most of which haven't happened yet) nor the cost of labor since the price increases are vastly in excess of the cost increases.

Just because it's reasonable to expect prices to increase doesn't mean you can argue that any and all price increases are reasonable.

Eoghann · Oct 13, 2015

disney20something said:
Whether they do or don't have shortage of money is not the issue at play here (and unless any of us here are actually in the CFO's office looking at Disney's budget, bills, and profits, then we'll never actually know, so speculating is fruitless).

They are a publicly traded company. Their revenue, profit and the amount of money they have in hand are all reported every quarter.

rteetz · Oct 13, 2015

disney20something said:
Whether they do or don't have shortage of money is not the issue at play here (and unless any of us here are actually in the CFO's office looking at Disney's budget, bills, and profits, then we'll never actually know, so speculating is fruitless). The reality is that the money Disney makes from its other enterprises (movies, TV, all of the channels under the Disney umbrella, etc) go towards funding more of those projects. Also, Disney is in the middle of several large renovations and construction projects throughout the parks and the resorts. Whether we like it or not, Disney guests are what pay for those expansions. Hence the bigger price tag. Personally, I am happy to pay my share for what's to come. If a longtime guest expects to pay the same amount of money now that they did in 1990 or 2000, guess what? It's not going to happen. And if that guest doesn't like it, then they can stop going to Disney. There are plenty of cheaper places to vacation. However, in my opinion, those other places just don't bring me the Disney magic, and I am willing to save up and pay a premium for that element.

Disney releases quarterly earnings and is a public company I think we would know if they are in trouble or not.

Disney could pay for the existing construction projects without raising the prices. I don't think anyone does expect to pay the same they did in 1990 in 2000. That's called inflation I explained that in my previous post.

Demand based ticket pricing

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