Continued disappointments

jjb1974

Earning My Ears
Joined
Apr 25, 2018
Disney makes more money when they raise prices - that's true, but that's not the whole reason they do it. They also do it to control crowds.
Launching a bit of rant, and it's not in anyway directed at you, but I see this line a lot. It's probably the cynic in me, but the line "We raised the price of this so not as many people would buy it, and that's better for you" just rings hollow.

For example, Disney just raised the price of caramel popcorn in Epcot-Germany by $1 and eliminated the smaller size wholly. "See this caramel popcorn used to sell at $5.99; but now we sell it at $6.99 to make sure the demand isn't too high. Because, as you know, popcorn and sugar are scant resources." It's just greed: I mean, you can call it "maximizing profit" because it sounds cleaner but it's not a reaction to a drain on the supply curve, nor is it done to shift demand in any way: it's just squeezing customers by increasing price. The only question is whether you feel like paying them more for what you used to get before.
 
  • Lumpy1106

    DIS Veteran
    Joined
    Jul 2, 2010
    Launching a bit of rant, and it's not in anyway directed at you, but I see this line a lot. It's probably the cynic in me, but the line "We raised the price of this so not as many people would buy it, and that's better for you" just rings hollow.

    For example, Disney just raised the price of caramel popcorn in Epcot-Germany by $1 and eliminated the smaller size wholly. "See this caramel popcorn used to sell at $5.99; but now we sell it at $6.99 to make sure the demand isn't too high. Because, as you know, popcorn and sugar are scant resources." It's just greed: I mean, you can call it "maximizing profit" because it sounds cleaner but it's not a reaction to a drain on the supply curve, nor is it done to shift demand in any way: it's just squeezing customers by increasing price. The only question is whether you feel like paying them more for what you used to get before.
    Increase in prices for food and souvenirs is different than the price increase for admission. That is "what the market will bear". Clearly they won't run out. I've seen more than one person say what a great bargain collecting $0.51 pressed pennies is. OK, isn't it still a bargain at $1.01? Probably not at $5.01 (though still a lot cheaper than pins).
     

    jjb1974

    Earning My Ears
    Joined
    Apr 25, 2018
    Increase in prices for food and souvenirs is different than the price increase for admission. That is "what the market will bear".
    It's really not different though: Disney isn't increasing prices to try and control the number of guests, they have far more efficient tools than that if they wished to do so: they could hard cap a number of tickets sold for each day, and as they now ask you for the days you're attending when you buy, this is easily done. Build in an attendance gap for annual passes based on historical attendance figures, and there's your max park admission. THAT would be crowd control to improve the customer experience. We already know Disney has a max number and they hit it maybe once or twice a year for a short gap of time and restrict admission.

    They continue to push up prices on everything, whether it be caramel corn or park admission or hotel rooms, to try and figure out where supply and demand meet, the economic idea of price equilibrium. The hunt for equilibrium pricing isn't about guest experience, it's maximized profit. If it happens to keep one or two people out, that's great if revenue is still higher, but guest experience wasn't the point and to sell it as anything other than a "potential side effect" is just hucksterism.

    Clearly they won't run out. I've seen more than one person say what a great bargain collecting $0.51 pressed pennies is. OK, isn't it still a bargain at $1.01? Probably not at $5.01 (though still a lot cheaper than pins).
    Disney regularly deploys their Whack-A-Mole Price Increase Hammer to anything perceived as a value, for no other reason than they can do so. It's not supported by a supply issue or a demand surge (there aren't people lined up around the block for pressed pennies, either), they just do it because they can. "What the market will bear" is just "how greedy can I be without driving customers away." It's a question of how much profit is too much.
     

    Lumpy1106

    DIS Veteran
    Joined
    Jul 2, 2010
    It's really not different though: Disney isn't increasing prices to try and control the number of guests, they have far more efficient tools than that if they wished to do so: they could hard cap a number of tickets sold for each day, and as they now ask you for the days you're attending when you buy, this is easily done. Build in an attendance gap for annual passes based on historical attendance figures, and there's your max park admission. THAT would be crowd control to improve the customer experience. We already know Disney has a max number and they hit it maybe once or twice a year for a short gap of time and restrict admission.
    They could do those things and you see it at DL quite a bit - BUT in that case DCA is right across the esplanade and you are dealing with A LOT of AP'ers who aren't going to be that upset if they have to switch parks. At WDW the visitors are much more likely to have traveled a long way to get there and would be very upset if they were denied entrance. Better to raise the price and let them decide. Remember that the "capped" attendance is still REALLY crowded!

    Anecdotal from my own experience; DL does 2-fer tickets where you can go to each park once during the spring. Those 2-fer tickets all expired on a weekend we were going to go. We could barely get off the freeway, let alone into the parking structure. We fought traffic for an hour - then headed to the beach instead. We came back the next weekend after the price had increased and the 2-fer expired (and the AP's were blacked out). We had a great time and didn't mind that it cost more after we had seen the mass of humanity the weekend before.


    Disney regularly deploys their Whack-A-Mole Price Increase Hammer to anything perceived as a value, for no other reason than they can do so. It's not supported by a supply issue or a demand surge (there aren't people lined up around the block for pressed pennies, either), they just do it because they can. "What the market will bear" is just "how greedy can I be without driving customers away." It's a question of how much profit is too much.
    No disagreement there - is Universal any different?
     
  • rinnythepooh

    Mouseketeer
    Joined
    Oct 9, 2014
    Exactamundo! Why we have no WDW trips booked for us next year.
    Same here. We used the money we saved to have our garage custom designed and had floor to ceiling cabinets, a sink, work bench, epoxy floors installed in it, along with an oversized security screen door custom made and installed on our front door. AND WE HAVE MONEY LEFT OVER!! I never realized how much you can buy with the money from one Disney vacation!! Its really great!
     

    Vacations66

    Registered
    Joined
    Nov 3, 2019
    We currently have an April 2020 reservation. I'm honestly debating if it would just be better to cancel and book an Universal vacation. Only snafu, I promised my 6 yr old we go as soon as Star Wars was done. The money grabs disgust me. Pay to park, fuel rod swap charges, alot of Epcot under construction, smashed pennies going to $1.01, photos taken by a box, exorbitant ticket price jumps, etc.
    What are fuel rod swap charges. Lol
    What about pavement surcharge ?
     

    Don Disney

    DIS Veteran
    Joined
    Sep 23, 2008
    Whatever each family decides, it's their choice....that's the beauty of it....our choice is not to go back to WDW for the foreseeable future....we'll spend our $$$ elsewhere....the exponential price increases, and declining value isn't worth it for us ….
     
  • DanielleC

    Trans Disney Girl
    Joined
    Mar 27, 2019
    Bob Iger doesn't give himself anything. There is an executive compensation committee on the Board of Directors, comprised of all outside directors, that meets quarterly, reviews performance, and determines how much to pay everyone above and beyond their normal salary. This includes bonuses. Don't blame Iger, blame the Board's compensation committee.
     

    kbelle8995

    DIS Veteran
    Joined
    May 28, 2009
    Universal vacations has their pluses. We find the hotels nice and a much more reasonable price. Plus there's not much planning involved. It has quiet days. Disney has much more planning and Universal can be much more relaxing. We are going to Universal for Thanksgiving and I am so looking forward to it.
     

    Ohiostatefan606

    Earning My Ears
    Joined
    Aug 16, 2019
    A couple of weeks ago, I wasn't feeling the Disney magic. Our first trip to Epcot is in January and they are shutting down Test Track 4 days before we get there. My son wanted to meet Baymax, not sure they will have him available, I could have come up with a list of my disappointments.

    I decided to make a list of my "must haves"
    - lantern photo
    - SWGE
    - Oga's Cantina (I have a reservation)
    - Building a Droid (I have a reservation)
    - Opportunity to visit every country in Epcot
    - Pick a pearl in Japan
    - this list goes on and on.

    Was I disappointed in a few things, yes. But this is our 5th Disney trip in 5 years. My son goes to middle school next year and we will not pull him out of school for our extended January weekend trip.

    It comes down to choices, attitude and perspective. I am thrilled that my family of 3 is getting to go AGAIN, there is stuff we haven't done yet and I am going to love it. Even if I don't press a single penny! 😍
     

    Vacations66

    Registered
    Joined
    Nov 3, 2019
    Bob Iger doesn't give himself anything. There is an executive compensation committee on the Board of Directors, comprised of all outside directors, that meets quarterly, reviews performance, and determines how much to pay everyone above and beyond their normal salary. This includes bonuses. Don't blame Iger, blame the Board's compensation committee.
    If CEO's aren't compensated properly, they won't stay. He's a steal at what he accepts and how Disney shareholders have made in profits. I'm one of them.
     

    Brianstl

    Mouseketeer
    Joined
    Sep 8, 2019
    Bob Iger doesn't give himself anything. There is an executive compensation committee on the Board of Directors, comprised of all outside directors, that meets quarterly, reviews performance, and determines how much to pay everyone above and beyond their normal salary. This includes bonuses. Don't blame Iger, blame the Board's compensation committee.
    Which just happens to include 5 other CEO's. Nothing like getting to set the market for your own job title.
     

    Brianstl

    Mouseketeer
    Joined
    Sep 8, 2019
    If CEO's aren't compensated properly, they won't stay. He's a steal at what he accepts and how Disney shareholders have made in profits. I'm one of them.
    Who is hiring Bob Iger for $60 million plus a year? Iger has been successful but it isn't like a CEO can just pick up and move to another company. First off the list of companies that can afford that type of salary is limited. Second, he is limited by business sector. Their is whole range of additional factors that limit where Iger could successfully work as CEO.
     

    disneyinthespringtime

    Mouseketeer
    Joined
    Mar 23, 2018
    I think if you are more grumpy about the changes than excited about going then it is time to change it up and do a different vacation.

    It is what it is. And I can totally appreciate that for some long time park goers there may have been too many changes in the wrong direction compared to what they remember. But a vacation needs to make you happy - so sounds like you need to pick a different vacation option.
     



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