Article on WDW considering a "demand pricing plan"

[TravelandLeisure]

I remember this topic coming up before. Do you guys think there will be backlash if Disney decides to implement tiered pricing based on the time of year?

http://www.businessinsider.com/disney-parks-considering-demand-pricing-plan-2015-10

 

[lovehoney]

I guess it will depend on if it is variable or dynamic pricing. The hotels already have different prices for different seasons.
You just have to consider your budget like any trip. However dynamic might be a problem for some. They could technically change prices if it is raining out or the crowds were higher than expected because the weather is great.

 

[RAD]

Since Universal is stepping into the waters wonder how long before the mouse follows? Fromhttp://seekingalpha.com/news/3074256-universal-launches-demand-based-pricing-harry-potter-attraction?uprof=46#email_link

After Walt Disney (DIS-1.7%) floated trial balloons last year over demand-based pricing at its theme parks, Universal Studios (CMCSA-1.6%) is becoming the first to fully launch the model, anticipating heavy crowds at the April 7 opening of its attraction "The Wizarding World of Harry Potter."

 

[Mikie]

I like the way Universal is structuring theirs - as a full price ticket, with discounts for less busy days. Yes, I know it's all the same and just depends on your outlook and you can still consider it a premium/penalty for busier days. But the marketing works on me and they did not raise the day price, just said there will be discounts for online bookings and slower days.

Some venues already do this. One I can think of is LEGOLAND near Chicago. You can purchase a walk-up ticket, but you get a better price and a better choice of entry times if you book online. I suppose not so different from Disney's "reservation riding" but without the capability of all the consumer tracking of the bands.

Considering all that people have been posting on the DIS about "no more slow times"; the dwindling of discounts like free dining; off-season draws like food and wine, flower and garden, marathons; and already-occurred price hikes, I don't think Disney will discount low season tickets, but instead hike high season prices. This, to me, makes it much less palatable. As I said, I realize it really comes down to the same thing, but somehow Uni makes it feel like a discount to draw you in at slower times vs a price gouge to stick you just because they can when it's busy.

 

[tlmadden73]

I don't think Disney needs to do this really. They already give a HUGE discount to park tickets the longer you stay.
If anything . .I would just expect to see a static price increase again. Supply/Demand and all.

The only reason to do tiered pricing is to incentivize coming to the park during "low" times. Which (if the reports from the last two weeks are any indication) they don't need to do that. I don't see them iplementing tier pricing because it would just make long vacations (which is what DIsney wants) confusing to plan/price. Plus .. there is a PR issue to deal with.

 

[epcotty]

I really hope Disney does NOT do this. It's tough enough to get a decent price per day as it is (especially considering how much they've outpaced inflation if you look at how their prices have gone up the past ten years). If they did this the way they were planning to it'd be impossible to get a decent price per day during busier times. At that point since we usually can only go at busier times we would just use up our no expiration tickets and then go to Universal a lot more (which we also like a lot) , where we would feel much more appreciated because their plan is a lot different and much better than what Disney asked in their survey, as previously said. I'm sure many others would do the same, undoubtedly a lot would have a breaking point and tiered pricing the way that was asked on the survey would be the point where a lot of people would say "forget it" and go elsewhere instead. That would be the point where the management gets too greedy for a lot of the general public, especially those who can't go at other times. It's possible to stay offsite and bring your own food, but the ticket price is the one thing you have to buy when going there. It's possible to press your luck too far, even in Disney's case.

 

[epcotty]

The only reason to do tiered pricing is to incentivize coming to the park during "low" times. Which (if the reports from the last two weeks are any indication) they don't need to do that. I don't see them iplementing tier pricing because it would just make long vacations (which is what DIsney wants) confusing to plan/price. Plus .. there is a PR issue to deal with.

Right, I think the increased crowds during formerly low times effectively nullifies any excuse they could come up with regarding that

 

[MakiraMarlena]

Well, yes, there will be some. Backlash will happen with any change.

If you want to travel at the most popular times you should probably expect that you'll be paying more someday.

If you are intending to go to Universal because you don't like this idea...Universal is apparently on track to start it first (at their park in California, but if they like it, it will spread).

 

[strat68]

Enough of a backlash that it hurts their bottom line? Probably not. The parks have been getting fuller and fuller year by year and Disney keeps upping prices. They have no incentive to moderate price increases. At least yet.

 

[DisneyPiPhi]

Hmmm. I'm not sure why Disney sees this as necessary. I mean, I read the PR-friendly quotes from Disney execs in the article, but obviously those don't tell us why they are really looking at this option, which surely has to do with increasing their profits.

Other posters are correct that this pricing structure is in place at other theme parks. We live a few hours from Cedar Point and go once every few years. Their tickets (and FastPass-like line skipping pass) have different prices depending on the day. They also differentiate between weekday and weekend tickets, which are priced differently. However, I like to think that Disney prefers to differentiate itself from other theme parks and set a higher standard for service.

Certainly, as someone else pointed out, this wouldn't result in off-season discounts since Disney already gives hotel, package, and dining discounts during their less busy seasons. It stands to reason, then, that they would be raising high season and/or weekend prices. I think we all know what this means: summer, Christmas, Easter/spring break, and race or other special event weekends.

As a public school teacher, this would be disappointing. We are not allowed to take time off during the school year for vacations, so I have to travel during school breaks, which would most certainly be more expensive under a demand pricing structure. However, do I matter to Disney? No. What matters is that someone with more money or a more flexible schedule takes my place as a regular park visitor so they are still making money.

 

[RAD]

Certainly, as someone else pointed out, this wouldn't result in off-season discounts since Disney already gives hotel, package, and dining discounts during their less busy seasons. It stands to reason, then, that they would be raising high season and/or weekend prices. I think we all know what this means: summer, Christmas, Easter/spring break, and race or other special event weekends.

I agree, I think this is the direction it might go, they do it with the hotel rooms already so the parks will be next.

 

[Dan Murphy]

I agree, I think this is the direction it might go, they do it with the hotel rooms already so the parks will be next.

They also do it with meals.

 

[epcotty]

However, do I matter to Disney? No. What matters is that someone with more money or a more flexible schedule takes my place as a regular park visitor so they are still making money.

Right, they've ceased to care about people except how much they can monetize them. They've also ceased to care about having more affordable options like No expiration, or the better FL resident tickets that used to exist (not just discover disney, the usual ones used to have the no expiration option, no blockout dates, go up to 10 days and have a discount on 1 day). All the management up through the Eisner years was not like that but Iger's management has eroded through all that. If they go for tiered pricing they will truly be publicly saying that the only thing they care about is the bottom line. And I'd say it's very likely a lot less people would go

 

[DisneyPiPhi]

Right, they've ceased to care about people except how much they can monetize them. They've also ceased to care about having more affordable options like No expiration, or the better FL resident tickets that used to exist (not just discover disney, the usual ones used to have the no expiration option, no blockout dates, go up to 10 days and have a discount on 1 day). All the management up through the Eisner years was not like that but Iger's management has eroded through all that. If they go for tiered pricing they will truly be publicly saying that the only thing they care about is the bottom line. And I'd say it's very likely a lot less people would go

I think you're right except for thinking (hoping?) it would make for fewer visitors. The un-customer friendly changes of the past few years certainly haven't affected crowd levels. Customer satisfaction? Perhaps. Return visits? Perhaps. Length of stay or on-site vs. off-site? Perhaps. But those parks are still gosh darn full day in and day out.

When planning this recent trip, I dug out a folder of Disney memorabilia from our many trips when we lived in Florida (2006-2012). It made me remember how many awesome promotions there were! Remember when Florida residents got 15-month passes for the price of a 12-month annual pass? Remember buy three days, get two free? Remember free admission on your birthday in 2009? (I had totally forgotten that until I found our specially printed birthday tickets in the folder!) And the Florida resident annual pass was SO affordable. I maybe paid $350 or $400 most years? They charge twice that now. I'm kind of glad we moved back up north!

 

[Mackenzie Click-Mickelson]

Since Universal is stepping into the waters wonder how long before the mouse follows? Fromhttp://seekingalpha.com/news/3074256-universal-launches-demand-based-pricing-harry-potter-attraction?uprof=46#email_link

So at least since 2011 Universal Orlando has had where you save $20 off of gate price for multi-day tickets as well as also including a $150 coupon book when you purchase online but don't know about the Hollywood location since the last time I was there I was too young to remember.

I guess this deal for Hollywood also includes single-day tickets in the mix.

 

[epcotty]

I think you're right except for thinking (hoping?) it would make for fewer visitors. The un-customer friendly changes of the past few years certainly haven't affected crowd levels. Customer satisfaction? Perhaps. Return visits? Perhaps. Length of stay or on-site vs. off-site? Perhaps. But those parks are still gosh darn full day in and day out.

When planning this recent trip, I dug out a folder of Disney memorabilia from our many trips when we lived in Florida (2006-2012). It made me remember how many awesome promotions there were! Remember when Florida residents got 15-month passes for the price of a 12-month annual pass? Remember buy three days, get two free? Remember free admission on your birthday in 2009? (I had totally forgotten that until I found our specially printed birthday tickets in the folder!) And the Florida resident annual pass was SO affordable. I maybe paid $350 or $400 most years? They charge twice that now. I'm kind of glad we moved back up north!

Not hoping anything, I just think most people haven't reached the point to give up on going to Disney yet but tiered pricing definitely could be the shove to a lot of people that would make them stop going. I remember some of those things, we were in Georgia for part of that time though

 

[TippeeCanoe]

Well, yes, there will be some. Backlash will happen with any change.

If you want to travel at the most popular times you should probably expect that you'll be paying more someday.

If you are intending to go to Universal because you don't like this idea...Universal is apparently on track to start it first (at their park in California, but if they like it, it will spread).

People already pay higher food prices and room costs when they go at popular times. Now they'll be penalized with higher ticket prices, too?

 

[strat68]

"...I like to think that Disney prefers to differentiate itself from other theme parks and set a higher standard for service."

This is becoming less evident. You just have to stay at one of the Universal hotels to realize Disney does not have a monopoly on service.

 

[MakiraMarlena]

Universal hotels are operated by the Loews chain, not by Universal itself. Kind of like the difference between the Disney resorts and the Swan/Dolphin, which are operated by a chain. Chain hotels usually operate at a higher standard of service than WDW does - because you can always decide to go to another chain if you like them better. With Disney, it's onsite if you want to be near, or offsite if you would rather spend less (you can go to the Swan/Dolphin if you want but it's the only non-Disney resort that uses Disney transportation and/or is in walking distance of any WDW theme parks.)

 

[ArwenMarie]

It's coming...

I do think there will be a backlash but then it will die down