Spending at Disney increasing

[OKW Lover]

According to this story in the Orlando Sentinel, spending at Disney parks has been increasing at a faster rate than ever before.

 

[MaestroTK]

Need to subscribe to read the article.

 

[jlundeen]

would love to read it but can't get past the SUBSCRIBE NOW ad...

 

[lgpav1]

same here...

 

[Tonka's Skipper]

As the economy has been getting better the last 3 years, everything has been getting more expensive, especially major resorts and theme park resorts, Disney and Uni and all the major entertainment venues.

Look at food costs, especially meat and organic products, certainty raising fast then peoples pay.

Frankly if you are going to engage in entertainment (Disney and Uni) or buy anything at the top, the prices are raising faster there then at lower levels of quality.

AKK

 

[minnie mum]

Considering how Disney keeps raising the prices on everything, its not surprising that people have to spend more while they're there.

 

[FTM22]

To register for free access, they ask for an email, make a password, and give them a zip code. Then you can read 5 articles a month for free. Now to read the article and see what it said.

ETA - Interesting article. Thanks for sharing!

 

[Castle2Castle]

Googling the article headline -- Spending at Disney increases as prices rise, economy recovers -- and then clicking that link took me to the article without needing to sign up for a free trial or subscribing.

 

[Dznefreek]

Quoting the OS:
The Walt Disney Co.'s theme-park visitors are spending a lot more money, on everything from $105 Magic Kingdom tickets to $110 special-edition Tommy Bahama shirts.
Per-visitor spending at Disney's domestic parks has increased 7 percent to 8 percent annually for the past four years. That figure outpaces attendance growth and is higher than in previous years back to 2003, when Disney began providing those details in regulatory filings.
Analysts say a combination of factors is at work, including a recovering economy, price hikes, higher-quality offerings, and the MyMagic+ technology project.
Disney did not make executives available for an interview.
In an e-mailed statement, spokeswoman Kim Prunty noted Disney has experienced record attendance — "the result of delivering a magical experience that only Disney can provide. As guest demand continues to grow for our parks, we will work to ensure that all our guests have experiences that consistently exceed their expectations."
Walt Disney World prices drew attention this year as one-day Magic Kingdom tickets broke the $100 barrier. Other increases included a 9 percent jump in basic annual passes for Florida residents.
Disney raises prices regularly. Still, "I actually think they're being a little bit more bullish than they have in the past," said Scott Sanders, a former Disney vice president of pricing.
The possibility looms of even higher prices during peak seasons to spread out demand. Disney recently sent out a survey suggesting a hypothetical tiered pricing structure including $125 Magic Kingdom tickets during Christmas and July. The survey asked guests about how tiered pricing would have affected their visit choices.
Disney says it is far from turning into an elitist playground. Its affordable options include budget-oriented hotels, monthly payment plans for passes, Florida-resident discounts, and lower prices on renewed passes.
A recent report from the Themed Entertainment Association and consulting group AECOM noted the stagnation of middle-class incomes. That, the report said, "raises questions about the sustainability of recent ticket price increases" throughout the industry.
So far, though, experts say big theme parks haven't hit the price ceiling.
"They know they can take pricing and they have been taking it pretty aggressively," Sanders said. "Until they see a negative impact, they're going to continue to do it."
Universal Orlando recently raised one-day ticket prices to $102. Owner Comcast Corp. says in SEC filings that both attendance and guest spending have grown but does not give details.
SeaWorld, on the other hand, saw declines in both attendance and per-person spending last year as it struggled with controversy and competition. In May, it raised its one-day ticket price to $97 but dropped the cost of an advance-purchase weekday ticket.
Disney discounted during the economic downturn, with offers including free birthday admission. Those have gone away. Visitors can — and want to — spend more now, Pacific Asset Management analyst Bob Boyd said.
"Disney has also done a better job in recent years with the quality of their merchandise and their food offerings such as the Be Our Guest restaurant," Boyd said in an email. "Many consumers are quite willing to pay more for that kind of high quality experience."
New opportunities for conspicuous consumption abound. Disney has rolled out dessert parties costing up to $100, time-share Polynesian Village bungalows renting for more than $2,000 a night, and Disney-style Tommy Bahama shirts with triple-digit prices.
Experts say Disney is also providing more opportunities to spend. Increased FastPass usage through MyMagic gets people through lines quicker so they can spend more time in shops and restaurants. MagicBands can also function as credit cards.
Meanwhile Disney's per-guest domestic hotel spending rose to $280 last fiscal year, compared with $267 in 2013.
The company recently told analysts occupancy at its domestic hotels, at 89 percent, was close to peaking.
"How do you then build your operating profit, which Wall Street expects?" said Dave Shute, who tracks hotel costs for his Disney-oriented your first visit.net website. "If you can't put more hotel rooms in, you raise prices."
There have been some discounts available. Nicole Paris, a Maryland middle-school teacher, recently took advantage of one for her family's visit at the Wilderness Lodge.
Still, "it seems like there's a lot more … opportunities for those with more money to get something better than everybody else," said Paris, 44.
"It seems against the Disney spirit," said her mother Hermi Schijf of the Netherlands.
Kevin Gates of Warsaw, Ind. saved for a year for his Disney trip, which he said cost $35,000 for a family of 13 to visit for a week.
It's more expensive than other vacations, said Gates, 46, but "it's a life experience. It's a one-time experience."

 

[DDLand]

They've been raising prices at a decent clip, and it's paying off in big ways. I'm just not sure how much longer it can be a source of growth. People do have a maximum threshold where it becomes uncomfortable or even offensive to pay certain prices. Luckily attendance has been growing at a strong rate too, so people seem to be handling it alright currently. It's just a matter of when do prices become unbearable. At Disneyland they've got to be getting pretty darn close. At WDW they seem to think it could be up to $125 with the surge pricing. Disney is doing an excellent job harnessing existing assets, but I see the end is nigh. Which may be one of the reasons they're expanding DHS and the rest of the Resort. Iger is gifting his successor with another major source of growth and expansion, and is setting up WDW for many more years of significant growth. A couple years back the strategy of building was dead. Many in TDO didn't see the benefits of expansion. Now things have changed in a radical way.

I think we may see a temporary respite from the constant ticket price increases ahead.

Can I really emphasis temporary...

 

[peg110]

From the article

"They know they can take pricing and they have been taking it pretty aggressively," Sanders said. "Until they see a negative impact, they're going to continue to do it."

We can *****, moan and complain about prices, but this is the essence of Disney and any other successful business. So until people say ENOUGH is ENOUGH, it will continue.

I'd also like to point out, that this is also the essence of Free Trade/Competition - Economics 101

 

[Disneychick75]

Not surprised because everything costs more. It's sort of like when a movie today is the highest grossing movie ever. Well, duh, when I was a kid in the 1960's), with $1 you could buy a movie ticket, popcorn, candy and a drink. My husband and I went to the movies a few weeks ago and spent $40 for 1 bag of popcorn, 1 order of nachos, a couple of candy bars, and 2 soft drinks. Our tickets were another $15.00.

 

[minnie-apple-mouse]

few weeks ago and spent $40 for 1 bag of popcorn, 1 order of nachos, a couple of candy bars, and 2 soft drinks. Our tickets were another $15.00.

It is insane.

But on the bright side, your calories per dollar came out pretty good.

I was at AMC and a Dad brought a girls bday group in, after the "kids meal" snacks he about fainted.

 

[Jake]

With charging on the magicband, people may not know how much they are spending. I know I kind of lose track on how much I am spending,,, to a point

 

[OKW Lover]

With charging on the magicband, people may not know how much they are spending. I know I kind of lose track on how much I am spending,,, to a point

Not sure how that is different from the RFID enabled room keys - or even the mag-strip cards.

 

[Andrew015]

Do me a favor and post this in the "out-pricing the middle class" thread

 

[Dfan79]

It seems like pin collecting has a played big part in the recent rise in spending. I've seen people practically pit fight for a pin with Dumbo on it.

 

[djohn06]

I think the rising dollar will have a pretty big impact on pricing. Disney trips will be 30 percent higher for many folks abroad in just one year. That is enough for many to think twice about visiting.

 

[oddman]

the story backs up what many have been saying in different threads.


Disneys price increases are impacting the bottom rungs of the middle class, making it more costly compared to incomes. thus some of those who were once in a life are now never and many others it is reduced number of trips , shortened trips and a much bigger bite out of disposal income.

Disney can and most likely will continue to push up prices, in all sorts of ways until they get real pushback in terms of reduced REVENUES. it is my view Disney sees there is better growth to be found by skewing the guest profile up the income ladder...

 

[Whatsthegoodword]

Things look good for WDW! Guests like the better quality products and services (as cited in the article), and the Magicbands are doing what they are supposed to do. Looks like another good investment by the Mouse...