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Old 03-20-2013, 08:01 AM   #1
Tinkerpeas hubby
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Is Disney becoming too greedy?

I know this is going to be more relevant for the Britts. As with the shape of the economy, we certainly have less petty cash!

Disney have recently made changes with regards to it's packages/deals or for a better word, lack of deals.

I know it's out of their control, however the prices of flights have increased, it appears Disney doesn't seem to be doing much to reduce the financial cost, in fact increasing their own prices!

Firstly free dining has literally been taken off the table

Magic hours are being removed from the evenings in Magic Kingdom and a possibility that the other parks may follow suit?

The fast pass scheme has been replaced with a different scheme, which to be honest, what was wrong with the fast pass system? It worked, why fix it with a Pre booking scheme? Profit gain?

So these elements combined has led to me to draw to the conclusion, that there are several individuals at the HQ in California who are to be frank becoming greedy and tarnishing Walt Disney's dream and ideology.
It was never his aim to be poor, of course he wanted financial gain but not to exploit his idea at every turn.

Remember the question, is Disney becoming too greedy? Could they do more?

Your thoughts?
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Old 03-20-2013, 08:30 AM   #2
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my thoughts, no Disney isn't being too Greedy.

The cost of everything goes up, not just for individuals but for business's too. The cost of fuel is up...that effects Disney too.
The cost of food has went up...that effects Disney too.
Local taxes, state taxes, payroll taxes have increased...that definitely effects Disney .


Disney is a business first and foremost whose goal is to make a profit by providing entertainment. Who doesn't like to make a profit?
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Old 03-20-2013, 08:34 AM   #3
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Quote:
Originally Posted by Tinkerpeas hubby View Post
I know this is going to be more relevant for the Britts. As with the shape of the economy, we certainly have less petty cash!

Disney have recently made changes with regards to it's packages/deals or for a better word, lack of deals.

I know it's out of their control, however the prices of flights have increased, it appears Disney doesn't seem to be doing much to reduce the financial cost, in fact increasing their own prices!

Firstly free dining has literally been taken off the table

Magic hours are being removed from the evenings in Magic Kingdom and a possibility that the other parks may follow suit?

The fast pass scheme has been replaced with a different scheme, which to be honest, what was wrong with the fast pass system? It worked, why fix it with a Pre booking scheme? Profit gain?

So these elements combined has led to me to draw to the conclusion, that there are several individuals at the HQ in California who are to be frank becoming greedy and tarnishing Walt Disney's dream and ideology.
It was never his aim to be poor, of course he wanted financial gain but not to exploit his idea at every turn.

Remember the question, is Disney becoming too greedy? Could they do more?

Your thoughts?
Disney has always been greedy. Maximizing profits is what capitalism is all about. Disney does it quite well. Every major corporation has number crunchers who determine what they must charge in order to stay in the black and then they forecast how much they can charge to make the most money. A certain number of guests will find that the amount is more than they are willing to spend and the bean counters take this into consideration. It sounds like you may be one of those guests.
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Old 03-20-2013, 08:45 AM   #4
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Bean counter? Perhaps you should visit Yorkshire where the men count every penny
Thanks for the personal attack and lack of constructive comments!

I've been to Disney four times with my family over the past eight years, which equates to once every two years.
I've got a decent income however I don't like paying excessive prices if possible. Please don't use my thread as a means to show case your disposable income! Cough cough and moving on..,
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Old 03-20-2013, 08:52 AM   #5
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Quote:
Originally Posted by Tinkerpeas hubby View Post
Bean counter? Perhaps you should visit Yorkshire where the men count every penny
Thanks for the personal attack and lack of constructive comments!

I've been to Disney four times with my family over the past eight years, which equates to once every two years.
I've got a decent income however I don't like paying excessive prices if possible. Please don't use my thread as a means to show case your disposable income! Cough cough and moving on..,
It was not intended to be a personal attack on you or anyone else who has determined that a Disney vacation is no longer worth the cost. It is simply an observation that Disney execs have weighed the cost of pricing some guests out of the experience vs. the profit that can be made by raising prices. Everyone has their tipping point and it sounds as if you may have reached yours where Disney is concerned.

And FWIW, I never said anything about what my income is. You've read a lot into what I wrote.
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Old 03-20-2013, 08:54 AM   #6
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Quote:
Originally Posted by missj1975 View Post
my thoughts, no Disney isn't being too Greedy.

The cost of everything goes up, not just for individuals but for business's too. The cost of fuel is up...that effects Disney too.
The cost of food has went up...that effects Disney too.
Local taxes, state taxes, payroll taxes have increased...that definitely effects Disney .

Disney is a business first and foremost whose goal is to make a profit by providing entertainment. Who doesn't like to make a profit?
I completely agree turning a profit is the goal, although published profits are on the rise, perhaps not in the market of films

My thoughts are, does Disney need to take away the incentives to stay on the resort, such as the dining plan, magic hours?
I love staying on property if when I next go irrespective of free dining plan etc I would stay on Disney property again for the magic.
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Old 03-20-2013, 09:02 AM   #7
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First, when if I say you, I mean the royal you/we, nothing about you specifically OP.

Hear me out, but I think part of the problem Disney has nowadays is the internet. People know too much and people like to complain. A lot.

Did you know disney has had dining plans for years? My BFF's family used it when she used to go as a child, so we're talking 25-30 years. Then, to publicize it, Disney made it free for awhile, and now when it is NOT free, people complain.

I'm willing to bet that when Disney rolled out fast passes for the first time, many people were up in arms about that, but it all worked out - now that they're changing, same thing.

The fact is, Disney wants people to visit, but they want people to stay at their hotels and eat their food. I'm sure they know their tipping points in all cases, like Marionnette said. I'm sure they have a very good average of what kind of travellers spend what.

Is Disney greedy? Sure, it's a business - it's their job to be greedy!!
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Old 03-20-2013, 09:05 AM   #8
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To the OP, "bean counter" is a nickname for corporate accountants. It had nothing to do with you.

Disney has to increase prices to cover their own costs and make a profit.

They have said that promotions such as Free Dining would decrease as the economy improved. They only use those promotions to fill rooms and won't use those promotions if the rooms are filling on their own.

As far as has been announced, the old Fastpass system will still be in place while the FP+ system is launched. The new system is also supposed to be free so they're not making more money from it directly.
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Old 03-20-2013, 09:17 AM   #9
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Quote:
Originally Posted by Tinkerpeas hubby View Post
Bean counter? Perhaps you should visit Yorkshire where the men count every penny
Thanks for the personal attack and lack of constructive comments!

I've been to Disney four times with my family over the past eight years, which equates to once every two years.
I've got a decent income however I don't like paying excessive prices if possible. Please don't use my thread as a means to show case your disposable income! Cough cough and moving on..,

Bean counters are what my friends and family call the accountants at a corporation so I would have taken the previous posters comment about bean counters to mean the Disney bean counters try to decide how much a certain number of guests are unwilling to spend you would be the "certain number of guests"
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Old 03-20-2013, 09:23 AM   #10
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The only thing that I remember from Managerial Finance in grad school is that the #1 goal of a publicly traded company is to maximize stockholder value. That often means increasing prices until revenue starts to decline. I don't like it, but that's often all stockholders worry about.
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Old 03-20-2013, 09:27 AM   #11
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Disney is only charging what people are paying. Unfortunately it is too high a cost for some people. Many of us have found ways to have a vacation in spite of that fact and within our budgets. I know that if I didn't have a family member that works for Disney then it would be nearly impossible to go. She is able to get us immense discounts not available to anyone else. Why should Disney lower their prices because airline tickets are expensive? Why shouldn't airlines have to lower their costs so that people can afford to go to Disney?
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Old 03-20-2013, 09:29 AM   #12
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Quote:
Originally Posted by Tinkerpeas hubby View Post
I completely agree turning a profit is the goal, although published profits are on the rise, perhaps not in the market of films

My thoughts are, does Disney need to take away the incentives to stay on the resort, such as the dining plan, magic hours?
I love staying on property if when I next go irrespective of free dining plan etc I would stay on Disney property again for the magic.
This just goes to illustrate my point further. The execs at Disney also know that there is a group of guest who will stay onsite, pay the price increases and tolerate the changes whether the guests deems those changes to be positive or negative. Those loyal guests are also taken into consideration when they make their decisions. In fact, Disney is relying on those guests to outnumber the disgruntled former guests by a big enough number to eclipse any loss of revenue they experience by losing the unhappy guests.
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Old 03-20-2013, 09:52 AM   #13
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Disney knows the threshold of price increase to consumer loss that allows them to make more money.

Example: 10,000 families spend $2000 to go to Disney. Disney makes $20 million

The next year they increase prices by $500. So only 9000 families decide to spend $2500 and go. Disney makes $22.5 million with 1000 less families.

In fact, or order to lose money, 2001 families would have to decide not to go because they don't want to pay $2500. Disney doesn't think they will have that level of attrition over $500.

It stinks that you are one of the small percentage if families that can't afford to go. But Disney is a business, not a charity or government agency. They are there to make money. Going to Disney isn't an unalienable right, just like driving a BMW isn't. Yes, Walt wanted Disney to be accessible to all, but that idyllic way of thinking almost put the company under a time or two. Walt also wanted the parks to be forever growing and changing, and that takes money.
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Old 03-20-2013, 09:53 AM   #14
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I know that Disney is quickly pricing itself out of my comfort range. We took our first family trip in 2005 and stayed at CSR for 6 nights w/ PH and paid DDP for 4, and paid around $2000. Now the trip for 3 with base tickets and no dining is $2100. Added to that the reduced EMH and slim chance of free dining, we are looking to stay off-site for the first time ever. And since we're not going to be on-site, I think we will spend a couple days at Universal, which we've never done before. So Disney's price increases and reduced perks will definitely make a big impact on where my vacation dollars are spent.
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Old 03-20-2013, 10:39 AM   #15
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I agree with the OP. I think they are becoming greedy.

We have gone every year (most years twice)..since our kids were infants. We bought DVC at the Beach Club and we purchase annual passes most years.

It has most definitely changed to maximize profits over those 10 years.

I know they will always try to make a profit (I'm not naive) but there is a difference between making a profit and maximizing.

I've seen the focus shift from making things special for children (and adults). Little extras..Just because. to how can we sell this and attract even more people.

The Halloween party has become overrun with people...when it started it was a very special thing for our family. See the Villains, great parade, trick or treating...and get on rides with little to no lines...Now people have fist fights over their spot at a parade....no thanks.

The the dining plan... We do a TS every night.. We didn't buy into it because I don't eat an appetizer, entree and dessert... Too much food... It was more economical to pay out of pocket... Disney has since raise prices on all their dishes so even ordering a garden salad will cost you $20.

There is no such thing as a low crowd day any longer...irregardless of what time of year you go.. build more and more hotels but only expansion of the parks was a few rides in fantasyland?

and dont even get me going with the amount of people they let register for the run disney events..the princess half marathon was down right dangerous...

Ok..end of rant./..

I'm still a dvc member and next year we are trying our first disney cruise...I'm still giving them my money.. but I'm still very aware of these changes and consider them a negative... and will effect my future purchases..

I'm just editing to add, there is more to business than just maximizing profits. That is a short term goal. There is the customer experience..that produces loyalty, reputation.
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