Are Disney prices too high?

[brunette8706]

Seems like good timing to bump this thread up.

Hi there! Yes between the parking and tickets it's becoming ridiculous especially a family of 4 or more . Now I just read tables of wonderland is now $150.00 .It was $75 just 3 years that's a 100 percent increase thats way above the level of inflation . Sheesh! Good to see you btw!

 

[the advocate]

For as long as I can remember, a Disney vacation has always been more expensive compared to other more traditional type vacations (i.e. going to the beach, going on a cruise, snow skiing, mountain getaway, etc..). I bet our parents and even some of our grandparents were complaining about this same issue many, many years ago. Nothing new when it comes to a Disney vacation.

 

[ethanwa]

Business 101:

I'm sorry, but as long as the hotels, resorts, and parks are full or making money hand over fist, there is no such thing as "prices too high". It's a supply and demand issue. Disney provides a premium product that you can't get anywhere else and people are willing to pay for it. It's smilier to how Apple products sell even though they are really high priced.

I'm not defending Disney, rather just spelling out that this is simply capitalism working. Supply and demand. Raise the prices until demand levels off, or until a viable competitor can compete in your space. Universal is actually driving demand for tourism to Florida and is probably a contributing factor, if that makes sense. That is what Disney is try to do here by raising prices.... find that balance where the majority of guests are just on that fence of "too high". When running a business, that's exactly where you want to be. (FYI, I own a small software company.)

Also, the economy is strong, the dollar is strong, and people have jobs. If that changes Disney will adjust prices accordingly.

In the long run, as the wealth class separates (99% vs 1%), and the population of the Earth continues to rise, there will be enough 1%'s to keep Disney full 365 days a year at unaffordable prices for the other 99%. It's just a matter of time. In my opinion, we're actually getting pretty close to that as normal working-class people now save up for long periods of time just to go on a once-in-a-lifetime vacation to WDW.

If you feel Disney's prices are too high that is from YOUR perspective. But I go to the parks once a week and they are always packed. So for a lot of people, it's obviously not at that "too high" level yet. I often even catch myself thinking "what are all these people doing here? How can they afford it?" and then I realize there are 8 billion people on Earth and 0.1% of that is still 8 million people. There is a lot of money out there!

Disney theme parks take up a finite amount of space in an infinite population growth world, therefore prices will rise and rise and rise.

Ethan

 

[Planogirl]

I'm working on one more trip and then I hope to be done. I want to revisit some old favorites but then it's time to experience other things. I can travel to the places I'm interested in for less than a Disney vacation and I really think that it's time to do so. I don't really care how crowded WDW is, I just know what works for me and my family.

 

[brunette8706]

Business 101:

I'm sorry, but as long as the hotels, resorts, and parks are full or making money hand over fist, there is no such thing as "prices too high". It's a supply and demand issue. Disney provides a premium product that you can't get anywhere else and people are willing to pay for it. It's smilier to how Apple products sell even though they are really high priced.

I'm not defending Disney, rather just spelling out that this is simply capitalism working. Supply and demand. Raise the prices until demand levels off, or until a viable competitor can compete in your space. Universal is actually driving demand for tourism to Florida and is probably a contributing factor, if that makes sense. That is what Disney is try to do here by raising prices.... find that balance where the majority of guests are just on that fence of "too high". When running a business, that's exactly where you want to be. (FYI, I own a small software company.)

Also, the economy is strong, the dollar is strong, and people have jobs. If that changes Disney will adjust prices accordingly.

In the long run, as the wealth class separates (99% vs 1%), and the population of the Earth continues to rise, there will be enough 1%'s to keep Disney full 365 days a year at unaffordable prices for the other 99%. It's just a matter of time. In my opinion, we're actually getting pretty close to that as normal working-class people now save up for long periods of time just to go on a once-in-a-lifetime vacation to WDW.

If you feel Disney's prices are too high that is from YOUR perspective. But I go to the parks once a week and they are always packed. So for a lot of people, it's obviously not at that "too high" level yet. I often even catch myself thinking "what are all these people doing here? How can they afford it?" and then I realize there are 8 billion people on Earth and 0.1% of that is still 8 million people. There is a lot of money out there!

Disney theme parks take up a finite amount of space in an infinite population growth world, therefore prices will rise and rise and rise.

Ethan

Ethan-

Thanks for the lecture! You are endorsing the education I received in high school! Don't forget about the other aspect of capitalism, where price gouging leads to diminished customers/revenue due to pricing a considerable segment of the population out of your business. Becoming famous for extracting every possible dollar from your customer, is NOT in my opinion, good business. If you are endorsing that business practice, where a company places profit ahead of everything else then you are a poor example of a business owner and your point is lost on me.

Brunette

 

[dkrauss]

Ethan-

Thanks for the lecture! You are endorsing the education I received in high school! Don't forget about the other aspect of capitalism, where price gouging leads to diminished customers/revenue due to pricing a considerable segment of the population out of your business. Becoming famous for extracting every possible dollar from your customer, is NOT in my opinion, good business. If you are endorsing that business practice, where a company places profit ahead of everything else then you are a poor example of a business owner and your point is lost on me.

Brunette

Wow.......where has all the "so called" price gouging impacted Disney at any level? Sure you don't like it........but the numbers don't bear out your argument. Any business is going to extract every possible dollar they can..........why do you think businesses complain about high taxes? Why do businesses move jobs out of country...........Profit. Ethan is correct..........you don't like it..............but he's right. Price gouging.......how do you explain the crowds in Sept?, a former slow period..............how do you explain the 90% resort capacity? I guarantee ticket prices are going up in 2016. That's business but you have a way to protest...............don't go! There's a multitude of folks who will fill your place.
Doug

 

[Planogirl]

Wow.......where has all the "so called" price gouging impacted Disney at any level? Sure you don't like it........but the numbers don't bear out your argument. Any business is going to extract every possible dollar they can..........why do you think businesses complain about high taxes? Why do businesses move jobs out of country...........Profit. Ethan is correct..........you don't like it..............but he's right. Price gouging.......how do you explain the crowds in Sept?, a former slow period..............how do you explain the 90% resort capacity? I guarantee ticket prices are going up in 2016. That's business but you have a way to protest...............don't go! There's a multitude of folks who will fill your place.
Doug

That's part of the puzzle. Wages have been stagnant for many. I keep wondering why so many people have so much money lately. I sure haven't seen much change and now I feel likely everyone else is rich.

I have been told that the deluxe resorts aren't at 90% but who knows how to check that.

 

[3DisneyFanz]

That must be recent; it was $17 in June when we were there.
That reminded me of a trip I am in the middle of planning because parking where we will be staying is $18 a day.

We will be traveling next July to Charleston, SC for a National Dance Competition for my daughter. After much research, many phone calls, and some wheeling and dealing, I was finally able to secure a hotel room for the low-low rate of $240 per night for 6 nights. I am not joking...this was a deal. That doesn't include the parking fee of $18 per day. (Tried so hard to get them to wave that for our group. Oh well.) So, just to stay there, no meals, no entertainment whatsoever, it will cost $1548. And this was a savings after bargaining for our group of $480. Anyway, after doing some more digging, I estimate it will cost our family of 3 approximately $100 per day for food because we will not eat fast food while we are there. Although we won't spend $30 on breakfast, it's likely we'll go a little over that for dinner. But I'll be conservative and say $75 daily for food. That adds another $450 to the trip. We thought we'd try to go to the beach one day, visit Fort Sumpter, and maybe head to the Aquarium. That will be another $125. So, with very little "extra" activity, our trip (not including the actual travel) will cost us $2123. Our entire 9 day trip with hotel and tickets (8 day park hoppers, water parks fun and more--stayed at Pop, and Memory Maker) was not much more than that at $2600. We spent a little less than $1000 on food, travel, and souvenirs; including gas, etc, on our drive down and back. Based on my recent planning, my opinion is confirmed. Is Disney expensive? Yes. Is it a great value? Absolutely!

Where are you staying in Charleston. My Dad grew up there and I used to go there for work all the time. If you are paying $240 for a room I'm going out on a limb and saying that you're in a much nicer room than Pop.

 

[ethanwa]

Ethan-

Thanks for the lecture! You are endorsing the education I received in high school! Don't forget about the other aspect of capitalism, where price gouging leads to diminished customers/revenue due to pricing a considerable segment of the population out of your business. Becoming famous for extracting every possible dollar from your customer, is NOT in my opinion, good business. If you are endorsing that business practice, where a company places profit ahead of everything else then you are a poor example of a business owner and your point is lost on me.

Brunette

1. Disney could never truly gouge people. People would just stop coming. This isn't like gas prices where all of the gas companies collude to screw you over when you need to go to work tomorrow. People NEED gas. No one NEEDS Disney.

2. Extracting every dollar from your customer is fine as long as your customers remain happy. Disney is finding the balance: Lower crowds, still happy customers, keeping a large customer base, and equal or greater revenue. If that cuts you out, I'm sorry. But in this instance it's important for Disney to cut out a "considerable segment"... the parks are getting too crowded (especially Disneyland) and you may not fit.

Honestly, Disney probably uses a well known economic algorithm to determine pricing of everything they do. They plug in customer counts, demands, income levels, economic stability, crowd levels, spending habits, etc etc and out pops a number. MyMagic+ probably makes this very easy for them to do. There's no guy behind the curtain that says "hahaha... let's screw some people over today". There's just a computer that says "your probability for the best outcome is to do XYZ" and then they do it and then they win.

I'm sorry if my post came off as a lecture. I didn't intend for it to be that way. Sometimes people get upset and it clouds the ability to rationalize why something is the way it is, so I just wanted to break it down.

 

[Pirate Jeff]

Wow.......where has all the "so called" price gouging impacted Disney at any level? Sure you don't like it........but the numbers don't bear out your argument. Any business is going to extract every possible dollar they can..........why do you think businesses complain about high taxes? Why do businesses move jobs out of country...........Profit. Ethan is correct..........you don't like it..............but he's right. Price gouging.......how do you explain the crowds in Sept?, a former slow period..............how do you explain the 90% resort capacity? I guarantee ticket prices are going up in 2016. That's business but you have a way to protest...............don't go! There's a multitude of folks who will fill your place.
Doug

So Doug, you feel that is good business? Placing profit so far up the scale of focus, that eventually, the market evaporates? Sure, Disney's prime business goal is to be profitable. Any fool knows this. Eventually, they will price their customers out of the market and will ultimately fail because of it. I get a kick out of your "solution": "don't go"! Hilarious! Eventually, people won't and at that moment, monetary illiterates like "some" on this thread, will be paying more for their Disney vacation, than they will for their mortgages! How satisfactory it is to make a point without the condescending and childish .......... you use. I.........guess........that.......makes.......your.........point......more........valid???????? LOL!

 

[3DisneyFanz]

So Doug, you feel that is good business? Placing profit so far up the scale of focus, that eventually, the market evaporates? Sure, Disney's prime business goal is to be profitable. Any fool knows this. Eventually, they will price their customers out of the market and will ultimately fail because of it. I get a kick out of your "solution": "don't go"! Hilarious! Eventually, people won't and at that moment, monetary illiterates like "some" on this thread, will be paying more for their Disney vacation, than they will for their mortgages! How satisfactory it is to make a point without the condescending and childish .......... you use. I.........guess........that.......makes.......your.........point......more........valid???????? LOL!

They reached that point once before and it's taken them 25 years to have record attendance which was barely above where they were in the 90s. The previous leadership worked hard to rebuild consumer trust and get people coming again and the current group is making the same mistakes that nearly split the company in the 80s.

 

[ethanwa]

Eventually, people won't and at that moment, monetary illiterates like "some" on this thread, will be paying more for their Disney vacation, than they will for their mortgages!

I don't think you fully understand.... eventually the parks will be filled by guests who don't have mortgages. Their houses are fully paid and they have money in the bank. When you have a world of 15 billion people but only room for 2 million of them, who cares about the ones with mortgages?

Disney is not the "anyone can go vacation". It hasn't been that way for decades. My parents could barely afford to take me 25 years ago. If you fall into the "can't go category", too bad. It's only going to get worse.

E

 

[Minniesgal]

Capitalism 101 as long as they come prices are not too high.

When they stop coming, prices will come down.

 

[Minniesgal]

Eventually, people won't and at that moment, monetary illiterates like "some" on this thread, will be paying more for their Disney vacation, than they will for their mortgages!

Money illiterates?

Disney vacations cost us way more than our mortgage now. Thats why we can afford to go because we have paid our mortgage down.

I think what is strange here is the expectation that everyone should be able to afford Disney, heck not everyone can afford a vacation. We certainly couldn't when we had three small kids.

A Disney vacation is something you save for and appreciate. I don't think it was ever intended to be available to all any time.

 

[brunette8706]

1. Disney could never truly gouge people. People would just stop coming. This isn't like gas prices where all of the gas companies collude to screw you over when you need to go to work tomorrow. People NEED gas. No one NEEDS Disney.

2. Extracting every dollar from your customer is fine as long as your customers remain happy. Disney is finding the balance: Lower crowds, still happy customers, keeping a large customer base, and equal or greater revenue. If that cuts you out, I'm sorry. But in this instance it's important for Disney to cut out a "considerable segment"... the parks are getting too crowded (especially Disneyland) and you may not fit.

Honestly, Disney probably uses a well known economic algorithm to determine pricing of everything they do. They plug in customer counts, demands, income levels, economic stability, crowd levels, spending habits, etc etc and out pops a number. MyMagic+ probably makes this very easy for them to do. There's no guy behind the curtain that says "hahaha... let's screw some people over today". There's just a computer that says "your probability for the best outcome is to do XYZ" and then they do it and then they win.

I'm sorry if my post came off as a lecture. I didn't intend for it to be that way. Sometimes people get upset and it clouds the ability to rationalize why something is the way it is, so I just wanted to break it down.

Hi there

Thanks for that!

It just really bothers me when Disney not only rise prices but hey exorbitantly rise prices. Parking is up 18 percent ,restaurants menu prices have increased now tables of wonder land up 100 percent in 3 years . It's my opinion that it is price gouging .Oh and the dining option has doubled in price. In some instances the price has skyrocketing while quality is diminishing. You can see that in the restaurants, holiday parties, decorations, attractions and yes some resorts .

Brunette

 

[Pirate Jeff]

1. Disney could never truly gouge people. People would just stop coming. This isn't like gas prices where all of the gas companies collude to screw you over when you need to go to work tomorrow. People NEED gas. No one NEEDS Disney.

2. Extracting every dollar from your customer is fine as long as your customers remain happy. Disney is finding the balance: Lower crowds, still happy customers, keeping a large customer base, and equal or greater revenue. If that cuts you out, I'm sorry. But in this instance it's important for Disney to cut out a "considerable segment"... the parks are getting too crowded (especially Disneyland) and you may not fit.

Honestly, Disney probably uses a well known economic algorithm to determine pricing of everything they do. They plug in customer counts, demands, income levels, economic stability, crowd levels, spending habits, etc etc and out pops a number. MyMagic+ probably makes this very easy for them to do. There's no guy behind the curtain that says "hahaha... let's screw some people over today". There's just a computer that says "your probability for the best outcome is to do XYZ" and then they do it and then they win.

I'm sorry if my post came off as a lecture. I didn't intend for it to be that way. Sometimes people get upset and it clouds the ability to rationalize why something is the way it is, so I just wanted to break it down.

Hello Ethan.

I am responding to "this" version of your post!

I disagree with your assessment that "Disney could never truly gouge people". Any parent, with a child with a dream of "Disney" will disagree. Me, as a former struggling single parent will tell you as much. Walt Disney created "Disneyland" to make a place where families could spend time together. That does not make Disney the nanny of the nation. But, to continue to extract every last cent from its customers, it is driving many out of the market and making a Disney Vacation, out of reach for many.

I have multiple properties in several states. i am "thrifty" and smart with my money. I am sure, Brunette is also. My wife and I, used to visit Disney all the time. We used to stay for a week or more at a time at The Polynesian, The Grand Floridian, The Contemporary, Wilderness Lodge, Yacht Club, Beach Club and The Boardwalk. We have stayed regular rooms and Concierge at each resort (Boardwalk is the best!).

That was years (about 5) ago. While we recently stayed at The Polynesian for a couple nights, we no longer do the long stays we used to. I like a good value for our money. We no longer get that. We no longer receive a premium service for what we pay. If we did, I wouldn't be on this thread. But not only has Disney raised their prices, but they have cut corners in so many places, it is no longer a premium destination. It used to be but no more.

Profit is king. And while I may at present be in the minority, Disney does not receive more of my money, they receive less. Sooner or later, it will bite them in the bottom side.

In my opinion..

 

[rangerxenos]

You can stay and eat off property and save a lot of money, and still have a wonderful Disney vacation. (and save a lot money).

 

[dkrauss]

So Doug, you feel that is good business? Placing profit so far up the scale of focus, that eventually, the market evaporates? Sure, Disney's prime business goal is to be profitable. Any fool knows this. Eventually, they will price their customers out of the market and will ultimately fail because of it. I get a kick out of your "solution": "don't go"! Hilarious! Eventually, people won't and at that moment, monetary illiterates like "some" on this thread, will be paying more for their Disney vacation, than they will for their mortgages! How satisfactory it is to make a point without the condescending and childish .......... you use. I.........guess........that.......makes.......your.........point......more........valid???????? LOL!

Its business.......You really believe the market is evaporating? You don't like the increase but "eventually the market will evaporate" is just a guess on your part........no facts behind it........just hope (for you) You can say all you want but this happens every time there's a price increase. The "facts" show that these price increases haven't impacted Disney. If it does........they'll adjust. BTW, since when did going to Disney World become a right? Since when did they have to march to your or anyone persons desires. It is what it is............If you don't like it.........moaning and groaning about it won't change it...........Just don't go! What other alternative do you have?. What you going to do "sue" Disney? You think my point is hilarious.........I think complaining about it is a waste of time. Pete says it all the time...........if you don't like it.........don't go.

Talk about condescending.........you're the one who started doing all the name calling.........my point is my point..........the fact that you don't get it is HILARIOUS!!!!

Doug

 

[Pirate Jeff]

Money illiterates?

Disney vacations cost us way more than our mortgage now. Thats why we can afford to go because we have paid our mortgage down.

I think what is strange here is the expectation that everyone should be able to afford Disney, heck not everyone can afford a vacation. We certainly couldn't when we had three small kids.

A Disney vacation is something you save for and appreciate. I don't think it was ever intended to be available to all any time.

As far as I'm concerned, definitely not "everyone" should get to Disney! That's what is so hard about writing about this! Because Disney is such a wonderful place and is "special". And I love your second sentence! Awesome!! Good for you! Smart people, smart with their money!

That's the caveat! It's not that its "expensive" that gets me. It's because they are gouging their guests.

Because we have been going for years there, we know how things have changed. We own a property in the area and for our purposes, we have created a book which shows prices of "everything" for our guests. If I showed you the prices from 2005, compared to now, you would be amazed.

People like you (and me) work hard for their money. We make sacrifices for our "wants". When I see a business like Disney, charge people many times over what is reasonable, it gets my ire. I apologize to anyone if they find that a problem but really, they are exploiting their customers, plain and simple.

Yes, we should pay more for a great experience. But for a business to raise the price to the breaking point, is not sound business. Oh, it may bring great profits now but in the long run, it will eventually do them in.

Congratulations on paying your mortgage down! Good for you!

 

[Pirate Jeff]

Its business.......You really believe the market is evaporating? You don't like the increase but "eventually the market will evaporate" is just a guess on your part........no facts behind it........just hope (for you) You can say all you want but this happens every time there's a price increase. The "facts" show that these price increases haven't impacted Disney. If it does........they'll adjust. BTW, since when did going to Disney World become a right? Since when did they have to march to your or anyone persons desires. It is what it is............If you don't like it.........moaning and groaning about it won't change it...........Just don't go! What other alternative do you have?. What you going to do "sue" Disney? You think my point is hilarious.........I think complaining about it is a waste of time. Pete says it all the time...........if you don't like it.........don't go.

Talk about condescending.........you're the one who started doing all the name calling.........my point is my point..........the fact that you don't get it is HILARIOUS!!!!

Doug

Thank you for your concern Doug! I'll do better next time with my "name calling".

But you know, at the end of the day, it really doesn't matter. I know it may sound like bellyaching. At the end of the day, I've learned how to be "good" with my money and much less of it now goes to Disney. If you feel good about paying $12.00 for a substandard cheeseburger, hey, go for it! I recently had a prime rib dinner for my son, wife and my grandchildren for the same price as one dinner buffet at BOMA. Dude, I have all kinds of money. I'm just picky about how I spend it. Paint it any way you like but eventually, it is bad business and it will come back to haunt them (IMO).


That is my entire point.