I don't see it as long term losses. More like long term gains. Disney isn't a new start up company. My stocks are doing well and for those that can't afford. Well. They have other choices.This is something I have been thinking for awhile, but didn't quite know how to articulate it.
Originally it seemed like DCL/Disney was set at a price point that was just above average, but still attainable by the masses. Their marketing plan seemed to be bring in a family, hook the parents and kids on the product. Those parents will then become grandparents and bring the grandkids to the parks and ships. Those kids would become parents themselves and bring their kids to the parks and ships. This cycle has repeated itself for years. Essentially they had an incredible business blueprint for building a brand.
With the increase on the cruise prices and from what I hear the park prices (only been once, cruising is in our bones). I have seen family and people at work either decide to do other vacations or cut way back on their Disney related activities.
Is Disney setting themselves up to break this cycle by pricing some/many families out? Which may mean that in the future they could see declining attendance and brand awareness?
Also if they price into the luxury market they may have to up their game some to meet a different customer bases expectations. I have read some of the etiquette threads on CC, I would not do well in that atmosphere lol.
I get that Disney is trying to maximize profit, and as a company they can do whatever they want. Sometimes though maximizing short term profit sets you up for long term losses. Will be interesting to see which way Disney goes.
Just some random thoughts on an early Friday night![]()
JW