Disney Meal Programs

[Peter Pirate]

I'm admittedly no expert on these things, but all of the free dining, my way plans, DDE, packages etc. how has Disney increased their revenues from the dining? I mean if guests really are getting the great deal they think they're getting (eating at top notch restaurants for less) how does Disney quanitify?

 

[2Xited4Disney]

I figured that they get more pople to come that normally wouldn't


For instance We took our trip in August because of the free dining plan....


Whoops that is an extra 2000 bucks that they WOULDN'T have gotten if there wasn't a "deal"

 

[mitros]

That's the whole idea, the more bodies on property, the more $$$$ there is to spend on stuff that is not discounted. Can you say, Ka- Ching!

 

[disneyjunkie]

I'm admittedly no expert on these things, but all of the free dining, my way plans, DDE, packages etc. how has Disney increased their revenues from the dining? I mean if guests really are getting the great deal they think they're getting (eating at top notch restaurants for less) how does Disney quanitify?

You may get your meals free or at a great discount, but I you have to pay for everything else.

Resorts, park passes, food that isn't covered in the plan, photos, gifts....

 

[lordhavemercy]

Well, here's a possibility too....after purchasing a dining package...for an adult...a person is handing over a minimum of $37.00/day for food...while most people...eating in the park...(non-package) might not budget that much (per head) toward their daily meal(s). Many would leave the parks at some point, and eat at a less expensive venue. Plus, if they keep us in the park...we are more apt to spend $$$ on property...rather than discount stores off-site. So, maybe they know that these meal packages will appeal to a more $$$ conscience Disney-ite...while they (Disney) still hold the cards of....keeping us...."on-site"........
....ugh....thinking too much.........hurts

 

[crusader]

It convinces non-Disneyites they need a "package" every time they want to travel to Disney, because they view it as a "great deal" even if they only saved a relatively small amount. My guess is next time, they'll pay above the $37/person just to have the same benefits/convenience.

Meanwhile Disney gets to utilize their resorts and certain restaurants to better capacity.

The meal plan was only offered to on-site guests who purchased park tickets and a resort stay as well. By excluding all non-Disney resorts and DVC bookings on points, it gives Disney the ability to draw business away from the Dolphin/Swan and anyone renting points.

It also collects the money up front, keeping the guest on property without having to provide resort discounts.

Magical Express is there to keep the rest of us travelling DVC owners/renters on property as well.

Having just returned, I can honestly say that I found more people in the hotels, restaurants and the gift shops and carrying more disney merchandise than what I observed this same time last year.

 

[YoHo]

I agree with Crusader and those that said it gets more bodies in the park.

WDW attendence is off from last year so getting more bodies in the park is important.

 

[rocketriter]

DDE has the same benefit as Magical Express. It makes you less likely to spend money off property.

 

[ellyn2000]

The dining plan cost us approx 39.00 a day each. We have some days where we wouldn't spend that much, so it does get more of my money than on a usual trip.

 

[DisFlan]

If you've already paid for two meals a day on site, most people will be less likely to go off site to other amusement or food venues. People will be less likely to eat or snack in their rooms or bring food into the parks. More people eating in the parks or resorts means more exposure to Disney stuff/junk/souveniers, and more exposure means more sales with the money people think they "saved" with a meal plan.

Any way you look at it, Disney is likely to come out ahead.

FYI, starting in April '06, DVC members will have access to a meal plan, too. It's not connected to any tickets or plan packages. It'll get more people away from the kitchens in their villas and into the restaurants. Considering that there are now about 90,000 DVC members, Disney may have to think about building more restaurants.

Personally, I think the increased use of meal plans will have a negative effect on menus. Disney will control them more tightly and likely offer fewer and/or less interesting, less expensive choices.

DisFlan

 

[tom401]

It comes down to many people not on the meal plans would share meals, not eat as much or eat off site. So lets say that of everyone who eats at the park, those who are not on the meal plan spends an everage of $10 or 15. Maybe disnet makes 50% ($5 or 7). On the meal plan, you end up spending $20 or 30 or 35 per meal. - maybe they make 40% ($8 to 10). Lower margins, higher profit because of higher volume. AND lower costs because of more volume purchase discounts on burgers, rolls, etc.

 

[King Triton]

I just got back from Disneyland and it costs a fortune to feed a family of four. Prices on food are sky high!

 

[Aintdisablast]

I agree with Crusader and those that said it gets more bodies in the park.

WDW attendence is off from last year so getting more bodies in the park is important.

I would love to see proof of this. We went three weeks last year & the same three weeks this year. The parks were extremely more busy this year - even in May before the beginning of free food.

 

[pamlet]

I wonder how many people on the meal plan don't use ALL their meals - they're paid for up front - and it really is a TON of food...

When we went in May (not on a meal plan) I found that my family of very big eaters did not eat nearly as much food as I had planned on... the table service restaurants had such huge servings... even my 16 year old DS who is usually a bottomless pit did not have to have his usual 4 meals a day.. laugh.

I commented then to my husband that a meal plan would never do for us because I really doubted that we'd want to be eating all the food!

 

[Am_I_There_Yet]

Someone may have mentioned this already, but I've heard that in order to get the meal plan, you have to pay rack rates for the hotel room. That would be one way Disney would make money on it.

Not sure if this is true or not, since I don't have a hotel discount this time around.

 

[DoeWDW]

One other thought is that even if Disney doesn't make money on the initial trip, when you're using the dining plan, you may try restaurants you ordinarily wouldn't spend $$ for. Since it's "free" or prepaid, you're more likely to try it and like it. Then you'll have a new "favorite" upscale restaurant to visit every time you return. With 70% of visitors to WDW being repeat customers, this translates into lots of $$$ down the road.

 

[PrincessLindy]

We ussualy stay at a DVC and eat some meals in the room. We also eat alot of CS. Nest time we go we are thinking of the plan. Sure we could eat cheaper by doing it the old way, but it would be nice to not worry about the food budget. Our food would cost us more, but we would eat a lot better. Disney is getting more food money from us.