Commentary on the $49 All Stars Rate and the Economy

[TravelSheryl]

I thought I would offer some comments in response to a post I just read where someone made a comment that the parks and resorts will probably be packed as a result of the $49 rate currently available at the All Stars for certain dates. I very much disagree and here's why.

The economy is very soft right now, bordering on recessionary. Travel is one of the first things that is eliminated in times of a soft economy. Both business and leisure travel. Hotels and attractions in parts of the country are really hurting now. As do many of you, it's not uncommon for both business and leisure travelers to book their accommodations a year or more in advance. Travel providers who saw projections for this year as good based on advance bookings are now seeing a lot of cancellations. People have lost their jobs. Businesses are eliminating many expenses that are not absolutely necessary.

While it may not be readily evident to some, Disney depends on the business traveler just as it depends on the leisure traveler. Conventioneers see a golden opportunity for a more affordable vacation when they bring their families along. After all, one plane ticket and hotel accommodations are paid by their employer. If that convention gets cancelled due to lack of adequate bookings, that affects all aspects of the Orlando economy, including Disney.

Disney is offering this special rate because THEY need to, not because they are being good guys here. Despite these lower rates, there will still be plenty of available accommodations due to the soft economy. I do not expect that this will be even close to a banner year for Disney from an attendance perspective.

 

[Debbie in Townsville]

Do you think that with the opening of Disney's Pop Century hotel, that more discounts will be offered at the All Stars?

I was wondering what your thoughts were of the impact of the economy on Priceline. Will Priceline see more inventory and will lower bids be accepted? Will they offer bonus money in the future?

I used to be Debbie in Mobile but the Army keeps moving us!

 

[Slightly Goofy]

I was wondering if maybe the new park in California might not be siphoning off some of the DW traffic this year. I am not as knowledgable as some of the people on this board so this is just MHO.

Linda

 

[TravelSheryl]

Sorry, but I'm really not that familiar with the various Disney-owned resorts, so I can't comment on your first question.

As to Priceline, we're already seeing much lower bids being accepted at the 3* and 4* level in some cities. I suspect that will continue. I just read the other day where some companies have really put the squeeze on what they will pay for their employees' business travel and that the more economical chains will be the recipient of a lot more business travel business. If that trend continues, I suspect the higher end properties will continue to dump more inventory on Priceline and the Priceline customer stands to gain from this.

I have no idea if there will be any future bonus money offers from Priceline.

I haven't read any projections for California Adventure, but I suspect that it will have some effect on Disney World. As to how much, I have no idea.

 

[SandraC]

Canadian's love travelling to WDW! On the news last night, one of our biggest travel agencies said that there was a 35% increase in travel from here in Toronto.

SandraC, visit our Disney family web site www.angelfire.com/on/disneyfun
º0º
1975 - off site (11 years old),
1977 - off site (13 years old),
1987 - Indian Rock Shores (23 years old with hubby, b/f at the time),
1990 - Holiday Inn International Drive/Daytona Beach (26 years old, with hubby, six month after wedding),
1998 - KIDS VILLAGE, GIVE KIDS THE WORLD, Make-a-Wish trip with 4.5 year old daughter born ill),
2001 APRIL - CBR - ON SITE FIRST TIME! YIPPY! With dd 7 years old, ds 15 mo

 

[Lucky4me]

I totally agree with you on this. If the hotels were at full capacity Disney would not offer the deep discounts.

They are walking a tight rope when it comes to Disney internet groups. They know that most people who frequent these boards and other Disney sites are hooked and will be booking anyway, so we are not their targets. This is why I think any negativity from CRO is probably due to not wanting the "sure thing" getting lower rates when they'd pay the higher ones regardless.

You may think this sounds far fetched but Disney spends an inordinate amount of time trying to identify their customer. Surely they've made their way to the internet by now....

 

[cindala]

I agree with TravelSherry. This is definately an off year for Disney. Last year was the Millenium Celebration, in October starts the celebration of WDW's 30th Anniversary. Most people don't go every year, but they like to go during a year when a lot is happening.

Add to that the slowing economy, and people cutting back on vacations.

As far as DisneyCalifornia, take a look at the Diz Biz forum here and you'll find out that the park is not doing well at all. Less than half of their projected attendance is showing up at the park, and many are leaving dissappointed and with free comps to Disneyland for their trouble.

Yep, Disney is seeing an off year, and a room filled at half price is still better than an empty room!

Offsite - 1974,1975
Contemporary - 1982,1983
Port Orleans - 1993,1994
Wilderness Lodge - 1995
Yacht Club - 1996,1997,1998,1999,2000,7/2001

BEEN THERE, DONE THAT, GOING BACK ... WDW!

 

[Slightly Goofy]

Cindala - thanks for the info about the new Disney park. It was just a guess on my part. Most of us vetern Disneynuts know that their new parks are very limited. It takes a few years for them to build up to a level that is interesting. We were at Epcot and MGM when they were first opened. Can't know everything. That's what we have forums for! (grinz)

Linda

 

[jpeppers]

When I went last week I stayed at the Port Orleans with the Insider Rate of $109. I thought it would be full because of all the people taking advantage of the offer but the resort seemed relatively empty. It did fill up on the weekend but up until Friday of that week it was very quiet.

 

[CookieGVB]

OK, here's what I don't get...maybe someone just happened to find the websites that list the lower rates and went to book...why would anyone at CRO have any judgment as to who the person is...a room taken is a room taken...why should it matter if they're from Ohio, Georgia, New York or Scandanavia? As long as someone is in the room...the whole CRO attitude thing bothers me...glad I don't have to use them any time soon!

Sis-bam-BOOM!

<img width="200" SRC="http://www.wdwinfo.com/sites/awilliams/dalcooks.jpg"[/img]


Gail a/k/a CookieGVB

"All you need is mugs..."

 

[idratherbeinwdw]

<<If the hotels were at full capacity Disney would not offer the deep discounts.
They are walking a tight rope when it comes to Disney internet groups. They know that most people who frequent these boards and other Disney sites are hooked and will be booking anyway, so we are not their targets. This is why I think any negativity from CRO is probably due to not wanting the "sure thing" getting lower rates when they'd pay the higher ones regardless.>>

I totally agree with this and it really does anger and frustrate me.

It seems to me that we should be REWARDED not PENALIZED for going to wdw frequently. When I see codes that offer discounts that are lower than AP rates I really resent it. Why should I pay more when I am a regular customer--oh excuse me I mean guest ?

Even from a business standpoint it seems to me that disney is being short sighted here. Going more often translates into spending more money than the person who goes infrequently. I will be purchasing more food and merchandise traveling to wdw multiple times in one year than a person who goes every few years. I think that frequent guests should be prized by management and made to feel special. Instead we are taken for granted and often miss out on the best deals

We, and I mean the disney fanatics, are walking advertisements for wdw. The clothes we wear, the decorations in our homes, our constantly telling others how great it is there, all add up to more $$ for Disney.

This is why I have no problem at all using any code I come across. Those codes are not distributed out of the goodness of the hearts of WDW executives. They are not trying to allow the less fortunate to visit wdw. The truly poor, as I mentioned in an earlier post, can't afford it no matter what.

The codes are given to drum up business. If we can beat Disney at their own game I say go for it! I certainly know Michael Eisner will not go hungry if I use a code meant for a Hispanic speaking, left handed, brown eyed Canadian, who is 5'2'' and under the age of 30.

My two cents, or maybe even a nickel, <IMG WIDTH="15" HEIGHT="15" SRC="/infopop/emoticons/icon_razz.gif" alt="razz">

Mari
Offsite 1972
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DL 1992
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FW 1996
AS Music 1998
GF 1999
Poly 2000 (my favorite resort)
Poly 5/01 (Yay!)
AS Music 9/01
Poly (Yay!) 12/01

 

[fkj2]

Disney already knows about this board. When I vacationed there in December, I made priority seating arrangements through the DVC; this board is monitored by Disney (although I am not sure of the frequency). I agree with TravelSherry about the economy and Dis. Having said that, we can't find (cheap) flights out of Pittsburgh (yet) but I would imagine things may open up after Easter. If more people travel for $49 a night, it's better than not having them travel at all, and that might be all the inducement they need.

What we all need to keep our eyes on is Japan. As I was reminded from one of this morning's news shows, they hold a lot of US debt and if their banking system, which holds a lot of bad debt from their deflated real estate and corporations, flushes down the toilet, look out. It may make the Nasdag look like a walk in the park

 

[The Pluto People]

fkj2: Add the cutting of oil production by OPEC to the equation and the outlook is more bleak. Even with huge discounts many Disney rooms may remain empty in the coming months.

<marquee>We Love Swimming at WDW!</marquee>

 

[fkj2]

You're absolutely right and that puzzles me about OPEC; if you'll excuse the unintended pun, it's like the straw on the camel's back. OPEC must be really confident that a severe recession will not cut back on the amount of oil the world needs. Doesn't add up to me.

 

[arkie]

Question for everyone then. I didn't know any better I guess. I booked the All Star Sports for early May for $99.00 a night. I need to rebook for first week of June. Could I get a lower rate?
Thanks for your help.

 

[Lewisc]

The $49 rate will attract some people who otherwise might stay off site. I suspect we'll see a real price war for the older motels along 192.

 

[cbar]

June is a difficult month to get discount rates but if you email me at cmbar3@aol.com I will give you a rate that applies to those dates for all stars.

Good Luck