Anyone else think Disney is getting Greedy?

[BuzzinDownToDisney]

Logistically I don't see how raising room rates alone at a single resort can offset the cost to renovate it. I think they need the increased gate money to complete resort renovations. I hate it as I too would like that money spent on attractions, but I don't see that as a reality.

 

[fbb]

Logistically I don't see how raising room rates alone at a single resort can offset the cost to renovate it. I think they need the increased gate money to complete resort renovations. I hate it as I too would like that money spent on attractions, but I don't see that as a reality.

How are non-Disney hotels ever renovated, then?

 

[LoriABil]

Okay, I'm halfway through this thread and will pause to comment...

I am surprised that Disney (in particular WDW) keeps increasing the base price for its product. However, it's clear that Disney is outpacing the US economy at this point. I mean, GDP was down almost 3%. When you compare that with Disney's 34% growth in the first quarter alone, there is obviously demand for their services.

I don't think the addition of these Premium upgrades are "Greed" driven. Does Disney want to make a profit? Heck, yeah! But I also think this past (okay, we could argue ongoing) recession caught them with their hands in their pockets. They took it on the chin. I think what we are seeing is 1. refilling the stockpiles in case of future economic woes and 2. development of services that are easily adjusted depending on the mood of guests. In fact, I think we will be seeing more "add ons".

What better way to take advantage of a huge blockbuster movie no one expected? We can't build a ride in a short time, but we can throw together an "experience" rather quickly and inexpensively.

There are many people (they are posting even now!) who will save and save for these experiences. I am one of them! Keep your Elsa T-shirts, your Anna locket, your Frozen mug and your tumblers! By golly, I am going ICESKATING WITH ANNA!

You are seeing more and more guests who want experiences, and are willing to go without material items to get them. Don't get me wrong, obviously the $300 Dooney and Bourke bags are selling. But I think some people look at the high end merchandise in and out of the parks and say, "Gee, that's a VIP tour ticket. What else could I cut back on so we could do a tour?"

 

[BuzzinDownToDisney]

How are non-Disney hotels ever renovated, then?

Fair point. Having no idea of construction costs I don't know if the average Disney resort renovation and subsequent rate increase are on par with the industry standard.

 

[Pixiedustaway]

No. It's marketing, textbook marketing. No one says you have to go.

 

[hawkeyesparks]

Okay, I'm halfway through this thread and will pause to comment...

I am surprised that Disney (in particular WDW) keeps increasing the base price for its product. However, it's clear that Disney is outpacing the US economy at this point. I mean, GDP was down almost 3%. When you compare that with Disney's 34% growth in the first quarter alone, there is obviously demand for their services.

I don't think the addition of these Premium upgrades are "Greed" driven. Does Disney want to make a profit? Heck, yeah! But I also think this past (okay, we could argue ongoing) recession caught them with their hands in their pockets. They took it on the chin. I think what we are seeing is 1. refilling the stockpiles in case of future economic woes and 2. development of services that are easily adjusted depending on the mood of guests. In fact, I think we will be seeing more "add ons".

What better way to take advantage of a huge blockbuster movie no one expected? We can't build a ride in a short time, but we can throw together an "experience" rather quickly and inexpensively.

There are many people (they are posting even now!) who will save and save for these experiences. I am one of them! Keep your Elsa T-shirts, your Anna locket, your Frozen mug and your tumblers! By golly, I am going ICESKATING WITH ANNA!

You are seeing more and more guests who want experiences, and are willing to go without material items to get them. Don't get me wrong, obviously the $300 Dooney and Bourke bags are selling. But I think some people look at the high end merchandise in and out of the parks and say, "Gee, that's a VIP tour ticket. What else could I cut back on so we could do a tour?"

Completely agree. I do find the changes unsettling, but to be honest with every change I've been dragged kicking and screamimg, but then I eventually love it.

 

[nugov2]

Okay, I'm halfway through this thread and will pause to comment...

I am surprised that Disney (in particular WDW) keeps increasing the base price for its product. However, it's clear that Disney is outpacing the US economy at this point. I mean, GDP was down almost 3%. When you compare that with Disney's 34% growth in the first quarter alone, there is obviously demand for their services.

I don't think the addition of these Premium upgrades are "Greed" driven. Does Disney want to make a profit? Heck, yeah! But I also think this past (okay, we could argue ongoing) recession caught them with their hands in their pockets. They took it on the chin. I think what we are seeing is 1. refilling the stockpiles in case of future economic woes and 2. development of services that are easily adjusted depending on the mood of guests. In fact, I think we will be seeing more "add ons".

What better way to take advantage of a huge blockbuster movie no one expected? We can't build a ride in a short time, but we can throw together an "experience" rather quickly and inexpensively.

There are many people (they are posting even now!) who will save and save for these experiences. I am one of them! Keep your Elsa T-shirts, your Anna locket, your Frozen mug and your tumblers! By golly, I am going ICESKATING WITH ANNA!

You are seeing more and more guests who want experiences, and are willing to go without material items to get them. Don't get me wrong, obviously the $300 Dooney and Bourke bags are selling. But I think some people look at the high end merchandise in and out of the parks and say, "Gee, that's a VIP tour ticket. What else could I cut back on so we could do a tour?"

This is my family. My kids wanted nothing in the way of souvenirs on our last trip. My dd 8 ended up getting a pick a pearl/ears/nightgown and my ds's 6 and 3 hats(one mickey and the other Captain America from Uni) and the 6 yr old did the build a lightsaber at DD...they really wanted nothing. The pick a pearl/lightsaber I'd even call more of an experience than gift since they built it/picked it. We went through every gift shop and they asked for nothing. They loved the extra experiences. Our next trip we for sure will do more of those...as far as more products...I wouldn't be surprised if they really got nothing. We'd pretty much all rather have experiences rather than material things.

 

[JoeA]

How are non-Disney hotels ever renovated, then?

By getting $$ from the chain's renovation budget. You can probably think of the WDW as "the chain" in this case.

 

[surferdave]

By getting $$ from the chain's renovation budget. You can probably think of the WDW as "the chain" in this case.

But some hotels in the chain, most of them, MUST be making money if you can do this long term. Ultimately the business unit has to be self substaning.

I don't believe Disney would have gotten in the resort business if they had to subsidize the care of it through park admissions. They would leave that up to the off site resorts that sprung up around them.

 

[DisneyQuest]

Yes...I love Disney but lately it seems like their goal is to charge as much as possible for as little as possible. The Frozen event is just the most recent example of their seemingly endless attempts to remove as many dollars out of the pockets of their customers as possible while giving as little as possible in return.

The never ending increases in parking fees....which I don't see the point to begin with. They are charging me to park at their business so I can come in and spend tons of money.

Yes, that would be how business works - an item or service costs x for a product, and the company charges y, which is typically a large increase of the original cost. This principle is how we are all employed and able to afford disney trips in the first place.

Ferraris are luxury cars which means they come with a luxury price tag. You want that experience, you pay.

Disney has a massive overhead. Magic isn't free. All that pixie dust has a cost, and it's what the market will accept.

 

[DisUniversal]

Yes, that would be how business works - an item or service costs x for a product, and the company charges y, which is typically a large increase of the original cost. This principle is how we are all employed and able to afford disney trips in the first place.

Ferraris are luxury cars which means they come with a luxury price tag. You want that experience, you pay.

Disney has a massive overhead. Magic isn't free. All that pixie dust has a cost, and it's what the market will accept.

Apple has massive overhead, yet they continue to innovate and come out with awesome new products.

Good businesses don't simply charge as much as possible for as little as possible and yet they manage to make a profit. It's that simple.

Yes Ferrari's are luxury cars. The problem lately is that Disney is charging Ferrari prices for a 15 year old Ford.

 

[DisneyQuest]

Apple has massive overhead, yet they continue to innovate and come out with awesome new products.

Good businesses don't simply charge as much as possible for as little as possible and yet they manage to make a profit. It's that simple.

Yes Ferrari's are luxury cars. The problem lately is that Disney is charging Ferrari prices for a 15 year old Ford.

It depends what you consider innovative. The new magic band system is innovative, efficient (theoretically) and different than the competition, but required millions in infrastructure spending. Is it a shiny new ride? No. But to say that rides are the only thing that can exciting or innovating about disney is looking at a micro picture. I think many people fail to realize that adding to or innovating an existing feature (even if it's not a ride) costs millions and is still moving the parks forward.

 

[JoeA]

Apple has massive overhead, yet they continue to innovate and come out with awesome new products. Good businesses don't simply charge as much as possible for as little as possible and yet they manage to make a profit. It's that simple. Yes Ferrari's are luxury cars. The problem lately is that Disney is charging Ferrari prices for a 15 year old Ford.

I think this post about Apple and "awesome products" is as subjective as Disney being greedy. I am typing this on an iPhone 5, but they really haven't had anything innovative since the original iPhone. We have macs, too. Awesome new products? Meh.

So I think you are really proving a point, in a way. Apple came out with an innovative product, and now still make it a premium brand but offer only incremental upgrades. Hey, they're still cool though

Samsung is the brand going for a market share grab so they are doing product refresh, offering more, etc. meanwhile, Apple just works. And people (such as you) are brand loyal to Apple. Maybe even to a fault.

Folks, Disney isn't in the market to sell rides. They are a mature business and are selling brand at this point. And like it or not but the Disney (MK specifically) brand is 18.5 million strong and growing.

 

[Minnie-Mickey]

Did I miss something? I thought the frozen stuff this summer was for everyone? Is it a special party and we now all have to leave early or is it somewhere off to the side in the park like the dessert party.

 

[wilkeliza]

Did I miss something? I thought the frozen stuff this summer was for everyone? Is it a special party and we now all have to leave early or is it somewhere off to the side in the park like the dessert party.

It is for everyone. They are just selling basically a dessert package for the fireworks that also includes VIP viewing for the procession and for one of the dance parties. The only thing everyone would have to pay extra for is ice skating.

 

[TuneTownMagic]

I generally agree with the crowd that is expressing a concern that you may not get your money's worth at Disney. I don't know if that was the direction the OP was going, but I think that is a larger issue than not being able to include premium/VIP experiences in one's vacation.

At the end of the day, it is somewhat subjective; many people still feel the experience is well worth the roughly $100 park tickets. Others are having major doubts. The weaknesses of the parks probably also become more visible when you are a frequent and/or repeat visitor.

The solution many put out there is not to go if you feel it is getting too stingy; I think that is obvious to many people with doubts, it is just nice to be able to weigh options and get some perspective on being disappointed in a vacation experience that has been special in the past. I know I'd want to get some various viewpoints before deciding to quit Disney altogether. And the thought has crossed my mind to not go as often too; this thread is giving me different ideas on the economics involved, the way things used to be in the parks, and how to cut corners. So I think it's okay to mention the good and the bad!

That being said, the one kind of random complain I have about Disney is the maintenance of the appearance of parts of the parks. I cringe every time I see the pillar structures that the monorail tracks stand on!

 

[Suvadoo]

It depends what you consider innovative. The new magic band system is innovative, efficient (theoretically) and different than the competition, but required millions in infrastructure spending. Is it a shiny new ride? No. But to say that rides are the only thing that can exciting or innovating about disney is looking at a micro picture. I think many people fail to realize that adding to or innovating an existing feature (even if it's not a ride) costs millions and is still moving the parks forward.

Yes, I go to Disney only to experience attractions and shows and enjoy the resort.

When Disney announced Magic Bands, I wasn't compelled to hurry up and plan my vacation for this new experience.

How do you think Magic Bands have moved the parks forward?

 

[BugsDaddy]

The only power a consumer really has is their purchasing power. That is how consumers vote on how "greedy" they feel a company is. If paid attendance is on the rise, obviously their customers have voted.

The fault in most of this belongs to the people who complain about the greediness of Disney the most. Because, in their next post, they are usually posting on another thread asking if anyone knows the exact second that Disney will open up their 2015 packages so that they can give more of their money to this "greedy" company.

 

[flicx]

Yes, I go to Disney only to experience attractions and shows and enjoy the resort.

When Disney announced Magic Bands, I wasn't compelled to hurry up and plan my vacation for this new experience.

How do you think Magic Bands have moved the parks forward?

The only thing the magic bands have moved forward is the amount of time spent at guest relations!

 

[gericoronado]

It seems like everyday some new adventure pops up for Disney. I think it is getting out of hand. I understand the party tickets for Halloween and Christmas. But you can now get glorified FP's for you family for 300 bucks each, see Frozen characters for 60/35 buck per person. I know people will pay for this stuff, or they would not offer it, but when you pay 100 to get into a park, it hurts a little to have to pay more to get the ultimate experience. I know several families that are going to Florida and only getting to do Disney for a day, because of the cost. It just seems like they are nickel and dimeing people every chance they get. what happened to buying a ticket and having it cover everything?

If a ticket covered EVERYTHING, that would be one mighty expensive ticket! Wow! Sorry, but I like paying for extras.