Cost cutting measures that will stick around

SL6827

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Apr 23, 2017
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When ever this virus is eliminated and the world is back to a more normal, what cost cutting, bean counting measures that Disney adopted will remain? Like when the price of gas goes through the roof and milk prices rise also, but then that is the new normal price of milk long after the gas goes back down. Resort fees perhaps or maybe a charge for ME? Any thoughts?
 
When ever this virus is eliminated and the world is back to a more normal, what cost cutting, bean counting measures that Disney adopted will remain? Like when the price of gas goes through the roof and milk prices rise also, but then that is the new normal price of milk long after the gas goes back down. Resort fees perhaps or maybe a charge for ME? Any thoughts?
There will always be a contingent that will pay whatever for the “magic” of being on property. But Disney sooner or later will realize they can’t continue stacking fees with increasing prices and still compete With the many amazing resorts that offer more amenities for far less. I don’t get the “I don’t drive on vacation” stance either- do they never go anywhere other than Disney? It’s not as horrible as some want to make it out to be driving to a 1200 sf villa with amazing pools, separate bedrooms, full kitchen (full fridge is nice for beverages and snacks even if you do nothing else in kitchen), no resort or parking fees and far less hectic and crowded than Disney properties- and far far cheaper. Far makes up cost of a rental car. More money for special experiences like fireworks cruise etc. I think this virus may have opened up some people’s eyes to other possibilities as well. Heck we are doing a “road trip” vacation in a couple weeks to South Dakota.
TLDR: Disney keeps charging when other resorts in surrounding area offer for free or at least a loyalty program will see Disney having to cut back even more until you actually get a CEO who cares about the BRAND Disney USED to be, and realizes that brand and reputation is slowly being boiled away
 
There will always be a contingent that will pay whatever for the “magic” of being on property. But Disney sooner or later will realize they can’t continue stacking fees with increasing prices and still compete With the many amazing resorts that offer more amenities for far less. I don’t get the “I don’t drive on vacation” stance either- do they never go anywhere other than Disney? It’s not as horrible as some want to make it out to be driving to a 1200 sf villa with amazing pools, separate bedrooms, full kitchen (full fridge is nice for beverages and snacks even if you do nothing else in kitchen), no resort or parking fees and far less hectic and crowded than Disney properties- and far far cheaper. Far makes up cost of a rental car. More money for special experiences like fireworks cruise etc. I think this virus may have opened up some people’s eyes to other possibilities as well. Heck we are doing a “road trip” vacation in a couple weeks to South Dakota.
TLDR: Disney keeps charging when other resorts in surrounding area offer for free or at least a loyalty program will see Disney having to cut back even more until you actually get a CEO who cares about the BRAND Disney USED to be, and realizes that brand and reputation is slowly being boiled away
Well said. I hope the competition does become more fierce.
 
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1. I'm strongly in the "no driving at WDW" camp. It's the only place we ever go where I don't spend any time in the car. I do more driving on a camping trip the one or two times that I drive into town to restock supplies. Not having a car or spending any time in it plays a huge role in taking me out of the "real world" and transporting to a different place.

2. The biggest shift? FastPass+ going the way of MaxPass. It has seemed inevitable for a long time that Disney would start charging for FP+, but now it seems inevitable. It'll probably coincide with "not raising prices" in other areas.
 

I used to drive a lot because my kids attended a school that was 30 minutes from home, assuming no traffic. When I drove that much one of my chief criteria for a vacation was no driving because I really needed a break from that. When my kids were younger I also didn't even want to make a sandwich when on vacation. Now that we've moved and are very close to their schools I don't mind driving on vacation. I also don't mind the occasional cooking because my kids are now very self-sufficient for their ages in the kitchen.
 
I'm not sure what to expect. One huge sales loss is EMM, DAH, Desert Parties, etc. How is WDW going to make up that up?
Well right now unless reservation to park is tied to resort Disneynhas zero incentive to stay on property. Really the biggest was fast pass at 60 days. Going to a Maxpass system? Charge for DME? EMH keeps getting cut into? I’ll save my money and pay for an up charge event if I want since those are there anyway. Better accommodations for way less, can use Uber if not want car (like having private transportation) etc.
 
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Well right now unless reservation to park is tied to resort Disneynhas zero incentive to stay on property. Really the biggest was fast pass at 60 days. Going to a Maxpass system? Charge for DME? EMH keeps getting cut into? I’ll save my money and pay for an up charge event if I want since those are there anyway. Better accommodations for way less, can use Uber if not want car (like having private transportation) etc.
Yeah, there is alot of uncertainty about value now. We decided to skip 2020 and planned a more extravagant trip Jan 2021 which we're kinda locked into as we rented DVC. It's possible things are generally improved and that Jan trip won't be as impacted as if it were in Aug, but there's no guarantee. Most of the plans we had for that trip are question marks now. Trying to make an itinerary is futile. We'll try to make do and hope that's enough to feel the magic.
 
There will always be a contingent that will pay whatever for the “magic” of being on property. But Disney sooner or later will realize they can’t continue stacking fees with increasing prices and still compete With the many amazing resorts that offer more amenities for far less. I don’t get the “I don’t drive on vacation” stance either- do they never go anywhere other than Disney? It’s not as horrible as some want to make it out to be driving to a 1200 sf villa with amazing pools, separate bedrooms, full kitchen (full fridge is nice for beverages and snacks even if you do nothing else in kitchen), no resort or parking fees and far less hectic and crowded than Disney properties- and far far cheaper. Far makes up cost of a rental car. More money for special experiences like fireworks cruise etc. I think this virus may have opened up some people’s eyes to other possibilities as well. Heck we are doing a “road trip” vacation in a couple weeks to South Dakota.
TLDR: Disney keeps charging when other resorts in surrounding area offer for free or at least a loyalty program will see Disney having to cut back even more until you actually get a CEO who cares about the BRAND Disney USED to be, and realizes that brand and reputation is slowly being boiled away
Not everyone can drive or, in my case, the confidence to drive in another country, or also in my case, wouldn't find the cost of car hire cost effective. I do tend to stay on Disney property most of the time as I can find plenty to do outside the parks as I have only myself to think about.
 
Well said. I hope the competition does become more fierce.

UO is adding a third park, and more people are trying out UO while Disney figures out what they want to do. But I don’t think Disney sees UO as a threat because their target tends to be tween girls.
 
Not everyone can drive or, in my case, the confidence to drive in another country, or also in my case, wouldn't find the cost of car hire cost effective. I do tend to stay on Disney property most of the time as I can find plenty to do outside the parks as I have only myself to think about.
No way I could drive in a country that uses the roadways in the opposite direction. Grand Cayman gave us a good taste of that when riding around there. :scared:
 
I'm less optimistic. No matter what other resorts or parks do Disney does not really see them as competition. If they started charging resort fees people would complain (on the DISboards) and a few will stay offsite, but I don't think Disney would see a hit to on-site stays. Pay for Fast Pass? All that would to is put more money in Disney's pocket. Even charging for DME wouldn't change the amount of people using it by a noticeable amount - it would just put more money in Disney's pocket. Frankly, I'm surprised DME is still a "free" service.

I just don't see adding more and more fees as hurting their bottom line at all.
 
Well right now unless reservation to park is tied to resort Disneynhas zero incentive to stay on property. Really the biggest was fast pass at 60 days. Going to a Maxpass system? Charge for DME? EMH keeps getting cut into? I’ll save my money and pay for an up charge event if I want since those are there anyway. Better accommodations for way less, can use Uber if not want car (like having private transportation) etc.
I liked your post and I'm completely on board with your point.

That said, we'll continue to stay on Disney property absent even more significant changes to the value proposition. The experience of hopping on a boat/monorail/walkway to go from the park to my room is only available onsite. That's worth an absurd amount to us.
 
I'm less optimistic. No matter what other resorts or parks do Disney does not really see them as competition. If they started charging resort fees people would complain (on the DISboards) and a few will stay offsite, but I don't think Disney would see a hit to on-site stays. Pay for Fast Pass? All that would to is put more money in Disney's pocket. Even charging for DME wouldn't change the amount of people using it by a noticeable amount - it would just put more money in Disney's pocket. Frankly, I'm surprised DME is still a "free" service.

I just don't see adding more and more fees as hurting their bottom line at all.

I think DME is still free because they like to have people trapped without a vehicle. You're much more likely to buy more park tickets (i.e. not go to Universal for a day) which equals more souvenirs/drinks/etc. and you’re also much more likely to eat at their hugely overpriced restaurants. Believe me, they make that money back and a whole lot more.
 
I'm less optimistic. No matter what other resorts or parks do Disney does not really see them as competition.
I’m afraid you are correct- except this is an extraordinary time as many many many of their demographic won’t have the funds to come for even a once in a lifetime budget trip now, and who knows how long it will take to get international travel up again. This could possibly be that s that tipped the camel (ok I hate thinking of a camel with broken back :P ).

And I very much enjoy being on Disney property, but good golly would I love days of $233/night Beach club in June rates back! Or Pop for less than 3 figures. I suspect some of their up charge events aren’t always the super sellers they think they should be - just judging by what discounts the CMs got when my kid did a couple programs.
 
Well, no more free magic bands with your stay. New ones will cost you now with stays on January 1, 2021 and onward.
 














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