Are Disney prices too high?

[Takket]

Examples:

Bottled water $3.26
Turkey leg $9.25
Dessert Party $50.00
Hotdogs $8.50
BOMA dinner $45.00 plus
1 day ticket $100 plus
Dining Plan $70.00 plus
Lunch and dinner menus the same price
Refillable mugs $18.00 only 4 refills in 90 minutes lol
Alcoholic beverages $10 $15 plus
Resort pricing exorbitant
souvenirs exorbitant

I think Disney needs to reevaluate their pricing strategy.

It also seems like the quality has gone down too. Anyway these are just a few things. What are your thoughts?

Brunette

The old saying is "something is worth exactly what someone will pay for it". prices will only go down if profits go down, and until then there is no reason to do otherwise.

 

[Tonka's Skipper]

The old saying is "something is worth exactly what someone will pay for it". prices will only go down if profits go down, and until then there is no reason to do otherwise.

This is for all companies and all the park companies do the same thing. *They will and do charge what the market will bear*.

AKK

 

[minnie-apple-mouse]

You wouldn't go for free to the magic kingdom in the early 70's? WOW! The list entailed over half of the rides that are currently still operational today! Also many rides that are gone that much of the Disney faithful would give alot to have back! The magic kingdom is by far Disney Worlds number 1 park. It has the highest attendance and highest ratings in surveys! Lets not forget the two iconic hotels also available then too, the contemporary and the Polynesian. Lets not beat around the bush the magic kingdom is the anchor that holds Disney World together. To say I wouldn't go for free is a total disrespect for what started it all!

Not a chance, not with that list. We are old enough to have gone when it was $5, and we didn't then either.

But especially if it means removing everything since.

We head to WDW for a week plus of relaxing touring. If you stripped out everything built since 1972, it would loose everything we like about it.

But it really does come back to the topic.



Would you remove/bulldoze everything down there since 1972 to visit the original MK for $5, or even free? Keep in mind the size of the crowds and original roads etc. And it cannot be rebuilt to what it is today, or from 1972 on.

Check one box:

YES____
NO____

 

[maxiesmom]

Here is the thing, Disney has never lowered prices they have raised tickets annually in good times and bad times, the same with rooms too. They also have found ways to increase prices without making actual raises ie taking away no expiration for free, then taking it away all together. How about hopping, it used to be free too. I also tire of the free magical express story too. This is a calculated move by Disney to make you buy all your food at the resort and leaves no car to drive outside for more affordable food. A bus ride doesn't cost that much especially when comparing it to the cost of Disney meals!

When they went from Length of Stay passes to the current, pick what options you want passes, they lowered ticket prices a smidge. But no, no good business would lower costs when the item they have is in high demand at what they are currently charging.

You can also get around Magical Express for not much money if you choose to.

 

[Networth]

Here is the thing, Disney has never lowered prices they have raised tickets annually in good times and bad times, the same with rooms too. They also have found ways to increase prices without making actual raises ie taking away no expiration for free, then taking it away all together. How about hopping, it used to be free too. I also tire of the free magical express story too. This is a calculated move by Disney to make you buy all your food at the resort and leaves no car to drive outside for more affordable food. A bus ride doesn't cost that much especially when comparing it to the cost of Disney meals!

They have never needed to lower prices for a variety of reasons. A few off the top of my head.

The Right of Passage: I would argue many American families and even some international families see Disney as atleast a one time pilgrimage so Disney has a set amount of people that will come atleast once no matter what.

The Brand: Disney much like say Apple can charge a high mark up on products due to perceived value and name recognition as being the best. Their have been studies that have shown individuals expectaions are as high going to WDW the first time as they are during their wedding/first child/other life altering event.

The Die Hards: This can also circle back to the die hard fans. Just like Apple who has fans that will spend ludicrous amounts of money on a watch just because it's Apple. Disney has this same type of rabid fan base. DVC for instance what other company in the world gets people to pay them money for "prepaid" vacations. Because that's really what DVC is you own no real stake it's a long term lease that guarantees the Mouse you and your bank account shall return.

The Disney Bubble: People often complain about hotel and food prices. How if they just drove off property you see a drop of atleast 50% for equivalent rooms and food. Yet is it really equivalent? Can the Waldorf get you to the MK on a monorail in 2 minutes? Can the Ritz give you a walking path to World Showcase? Where do tell in Orlando can you "dine" with the Beast. Disney knows what they have can not easily, if at all be duplicated. Once your on site the typical structure of how products are priced no longer works. This doesn't even take into account the "bubble" feeling many guests discuss which is literally impossible to be a dollar amount on because its much too subjective.

Tickets will never drop: Theme park tickets will never drop. Even during the economic crunch Disney did not see ticket sales drop to the point of needing to reduce prices. The best thing you can hope for is they don't do double or triple increases in one calendar year. And again if you won't pay it check out that family of 5 right behind you who will gladly fork over the money.

Vacation effect: You just spent 8 hours running around seeing shows, riding attractions, watching parades. By now well darn it you want some ice cream. Is it ridiculously overpriced compared to the outside world? You bet. Do you really care? Not really because your on vacation and all you do is tap your wrist and while your getting that ice cream your going to need that $3 bottle of water to wash it down. Disney just earned $10 on items that probably at most cost them $0.60. As a guest on vacation your okay with that.

None of this is said in defense of Disney. Just a sample explanation of why Disney can operate the way they do fiscally.

 

[Davey Jones II]

I'm not really sure what your point is. My post was in response to the adage that "this is what the market will bear". And the point was, it is never clear if that applies to revenue maximization or customer maximization. I can't tell from your post where you are coming out on that. Spreadsheets. Studies. What does it all mean from the customer's standpoint? If a company can squeeze more revenue out of 100 willing customers than it could out of 300 customers, is that what "the market can bear"? And if so, where does that leave the 200 people who are out of the game? Looked at another way, how does one view a scenario where 5000 people are willing to pay $5 for an item. And then all 5000 are willing to pay $6 for that item. And then the price goes up to $7 and a third of the people are no longer willing to pay that price. At what point does one establish "what the market can bear"? The price at which you still have a single customer still in the game? The point where you have half of your customers still in the game? None of this is addressed in your post. If you are the company running your spreadsheets and studies, maybe all you care about is net profit for the quarter or year. But that is very dangerous. If you price 75% of your customers out of the game but make more money from the remaining 25%, then good on you. But when those 25% die, or age out of your constituency, or move on to other things, you are stuck. Sometimes "what the market can bear" means keeping most of your original 5000 customers and not milking 25% of those customers for all they're worth.

They should just fire all their pencil pushers/bean counters, spreadsheet analysts, etc., and pour the money into creating the very best guest experience possible. Then they could charge whatever they want and people would still be beating the doors down. And they wouldn't alienate large numbers of people with all these cold, cynical "customer monetization" calculations.

"Quality is the best business plan." -- John Lasseter.

 

[mullysisters]

Bump

 

[mullysisters]

When it is so crowded that you need to get FP 60 days out or face a 40 minute line up? No the prices are clearly not too high. Disney has no obligation to provide you with a vacation. Go somewhere less expensive and make room for others. It' s a free market economy. When no one will pay, the prices will come down. To paraphrase Yoda - go or don't go , there is no discount. We love it and are willing to pay.

 

[mummabear]

Yes they are too high, but compared to the cost of the food in the theme parks in Australia they are cheap!
I think for many of us who have been going for a number of years it seems so expensive because it has increased so significantly in the last few years. For us as well we have gone from a party of 2 to a party of 5 making it all the more costly to do things like the dessert party.

 

[flicx]

They have never needed to lower prices for a variety of reasons. A few off the top of my head.

The Right of Passage: I would argue many American families and even some international families see Disney as atleast a one time pilgrimage so Disney has a set amount of people that will come atleast once no matter what.

The Brand: Disney much like say Apple can charge a high mark up on products due to perceived value and name recognition as being the best. Their have been studies that have shown individuals expectaions are as high going to WDW the first time as they are during their wedding/first child/other life altering event.

The Die Hards: This can also circle back to the die hard fans. Just like Apple who has fans that will spend ludicrous amounts of money on a watch just because it's Apple. Disney has this same type of rabid fan base. DVC for instance what other company in the world gets people to pay them money for "prepaid" vacations. Because that's really what DVC is you own no real stake it's a long term lease that guarantees the Mouse you and your bank account shall return.

The Disney Bubble: People often complain about hotel and food prices. How if they just drove off property you see a drop of atleast 50% for equivalent rooms and food. Yet is it really equivalent? Can the Waldorf get you to the MK on a monorail in 2 minutes? Can the Ritz give you a walking path to World Showcase? Where do tell in Orlando can you "dine" with the Beast. Disney knows what they have can not easily, if at all be duplicated. Once your on site the typical structure of how products are priced no longer works. This doesn't even take into account the "bubble" feeling many guests discuss which is literally impossible to be a dollar amount on because its much too subjective.

Tickets will never drop: Theme park tickets will never drop. Even during the economic crunch Disney did not see ticket sales drop to the point of needing to reduce prices. The best thing you can hope for is they don't do double or triple increases in one calendar year. And again if you won't pay it check out that family of 5 right behind you who will gladly fork over the money.

Vacation effect: You just spent 8 hours running around seeing shows, riding attractions, watching parades. By now well darn it you want some ice cream. Is it ridiculously overpriced compared to the outside world? You bet. Do you really care? Not really because your on vacation and all you do is tap your wrist and while your getting that ice cream your going to need that $3 bottle of water to wash it down. Disney just earned $10 on items that probably at most cost them $0.60. As a guest on vacation your okay with that.

None of this is said in defense of Disney. Just a sample explanation of why Disney can operate the way they do fiscally.

Sorry so many things go up and down in price everywhere. If Disney continues the trend and the economy sinks they are gonna have serious issues attracting people. Especially considering the artic pace of growth in attractions. In 10 short years the price of one day went from 59.95 to 105.00(2005-2015). Over 40%, how long can than rate be sustained?

 

[Magpie]

They should just fire all their pencil pushers/bean counters, spreadsheet analysts, etc., and pour the money into creating the very best guest experience possible. Then they could charge whatever they want and people would still be beating the doors down. And they wouldn't alienate large numbers of people with all these cold, cynical "customer monetization" calculations.

"Quality is the best business plan." -- John Lasseter.

And without your, "bean counters/pencil pushers and spreadsheet analysts" who keeps the money from pouring right down the drain? I guarantee you they were hired for a reason. And without them, Disney would quickly crumble due to financial mismanagement, the company would be broken up and sold piecemeal, and it would be the end of an era.

 

[Accident]

There's this joke in the IT world that you never pay full price. While someone is paying the price listed, someone else is getting a big discount. Disney is the same and the more we go, the more we learn.

You can drop the price of almost everything at disney just taking some time to figure out what it would cost if you handled it different. Will you get the price from 10 years ago? no. will disney be lower prices anytime soon? They have 2 record setting attendance years, they don't need to lower it, the market is thriving with these prices.

Some things I've learned:

- Staying on site? they mail you a discount card in the booklet about your trip for some things.
- Don't overbook, how much time did you really spend in the hotel, would the lower cost options be just as good?
- Staying a long time? Someone on annual pass would throw you into a new category of discounts on rooms and merchandise and some of the food that might save you money even if you can't use the AP fully.
- live in florida? many options there.
- DVC is it's whole thing with new only DVC events starting to happen.
- Live in Fla or have DVC,AP? then you can get more food discounts with 1 person having tables in wonderland.
- Always go end of summer and in the fall? wait for the free dining to come out (if it comes out) to book and be ready for it.
- Like going spontaneous? Once you do it, it seems to trigger tons of last second discounts (at least we keep getting them mailed to us).
- Need to go spontaneous? I've seen a ton of arrive right now deals and some are still on the website.
- Are you military or ex military? Some options there.
- Have a child with special needs or illness, many charities to talk with that help families get their child a dream vacation.
- Use a third party with authorized discounted options and tickets.
- Going with a convention or business trip? You might have limited use but discounted ticket options and room rates via the convention.
- Going with someone coming from outside the US? They have different discounts and rates and might be cheaper if they booked the whole trip.
- Just having a chase disney visa card opens up new discounts, rewards and special options in the park(s) even if you only use it for your disney vacation.
- Shop at a disney store? D23 discounts work in WDW and also unlocks some merch you can't get without being a member (and lowest member tier is free).
- Love starbucks? Have their discount options ready.
- Like Joffrey's? theres some of them also, they have their own discount options.
- Plan to see a movie at AMC while there? they have their discounts too..
- Not all restaurants are owned and operated by disney, they may take other discounts and the website for the restaurant usually tells you what is accepted.
- Have a rough idea of when your next trip will be while your there? Use the bounce back offer and book/put a deposit before you leave.
- Use a travel agent, they have different pricing also....
- did the meal plan actually save you money? Are you sure?

I'm sure there is many others.....

 

[Networth]

Sorry so many things go up and down in price everywhere. If Disney continues the trend and the economy sinks they are gonna have serious issues attracting people. Especially considering the artic pace of growth in attractions. In 10 short years the price of one day went from 59.95 to 105.00(2005-2015). Over 40%, how long can than rate be sustained?

By this time in 2025 I would except a single day ticket to be in $160-170 range without issue. They will have brought on line numerous new things by that time. They were able to sustain those previous ticket price increases with marginal additions to the resort complex over that time period. WDW is now slated for a building boom over the next decade. They will have almost no issue continuing that trend of ticket/food/merchandise/accommodation increases.

Iger and the board knows this. Hence the green light on the budget that will come into effect Oct 1st. The only possible thing that could change this would be another 9/11.

2 cents

 

[flicx]

By this time in 2025 I would except a single day ticket to be in $160-170 range without issue. They will have brought on line numerous new things by that time. They were able to sustain those previous ticket price increases with marginal additions to the resort complex over that time period. WDW is now slated for a building boom over the next decade. They will have almost no issue continuing that trend of ticket/food/merchandise/accommodation increases.

Iger and the board knows this. Hence the green light on the budget that will come into effect Oct 1st. The only possible thing that could change this would be another 9/11.

2 cents

If these prices continue to rise at that rate you begin to exclude more and more families as income doesn't rise even close to that rate. Thus Disney loses more and more potential customers. The slash and burn style of management that Iger has brought on board is like a virus. All of the cuts in recent years will catch up with them. When you get rid of so much in park entertainment and things like Osbourne lights all the while jacking up prices is a bad mix. People will soon get wise!

 

[GeorgiaHoo]

Yes, they are too high, but as long as people pay those prices then why would Disney lower them? Public company that needs to make a profit for its shareholders. Our kids are all late teens or older now and this may be our last trip to Disney. My wife and I can fly to the Caribbean and stay at a Sandals all-inclusive beach-front resort with a butler for less than it costs to go to Disney, and while Disney does some things really well they don't do an adults-only vacation that well at all.

 

[bryanb]

If this thread didn't exist, and it wasn't 15 pages long (and counting), I would be worried as a shareholder that Disney was leaving money on the table. The fact that they've hit a point where the parks are bursting with patrons and the prices are high are very good for the company. I'm not a financial adviser, so I am not advising anyone to buy Disney stock, but a few shares are within reach for anyone who can afford to vacation there.

People have been making the same complaint about Disney since forever, and worried that it would price itself out of the market and that attendance would decline. Attendance has kept going up over time. And the stock price has reflected Disney's success.

 

[Nancyg56]

I just priced a 4 night trip, 5 day tix and DDP. depending on how many of us will go, the trip is between 800 and 950 per person. For us, this is almost all inclusive. I think that for what I have planned, it is reasonable

 

[Networth]

If these prices continue to rise at that rate you begin to exclude more and more families as income doesn't rise even close to that rate. Thus Disney loses more and more potential customers. The slash and burn style of management that Iger has brought on board is like a virus. All of the cuts in recent years will catch up with them. When you get rid of so much in park entertainment and things like Osbourne lights all the while jacking up prices is a bad mix. People will soon get wise!

We will just have to agree to disagree. Yes wages are stagnant in most sectors but Disney has and IMO will always bring people to their gates in droves. Just look at Disneyland as a case study. 60 years of data involving attendance and pricing wether the economy was good bad or in between.

 

[Networth]

I I'm not a financial adviser, so I am not advising anyone to buy Disney stock, but a few shares are within reach for anyone who can afford to vacation there.

Shh don't tell everybody .

 

[mickeyluv'r]

Tickets will never drop: Theme park tickets will never drop. Even during the economic crunch Disney did not see ticket sales drop to the point of needing to reduce prices.

I beg to differ. We've gotten plenty of discount deals over the years. When the number of guests drops too low, Disney lowers their prices with discounts and extras.

They also lower costs by cutting park hours and cutting staff hours. One MK parade each night instead of two. Open or not open places like Tortuga Tavern, or add a lunch shift at a place that normally closes.


Most attractions also cut back the number of cars/boats/trains they run.