Disney Price Tiering isn't Bad... It's Bad Timing

PlutoTheDog89

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Let me start by saying I love you all - I love these boards and the following is purely my opinion. I'm sure I'm gonna be incredibly flamed for this post, but I feel like it needs to be said. I wrote this for my blog and figured I'd copy it over. It starts with a caveat in italics... Yes, two caveats for this post. Again, I respect everyone's opinion and expect some backlash...

I've gotta be honest, I've toggled back and forth with writing this all week. I've written a little; composed my thoughts; scrapped the idea; returned to write more; scrapped it; wrote some more only to delete it; then finally decided to go through with it. The following piece is my opinion - and only my opinion - on Disney's new tiered pricing system. It's long and frankly after proofing it, it comes off biased in favor of Disney. That's my opinion. At the risk of sounding brash, don't read it if it's going to anger you. Or do - I love a good debate. I've taken the time to read up on the price increase and let it marinate a bit before writing this. I written down all my thoughts. I can't guarantee they're right nor am I saying it's the end all of opinions. Many will disagree with my stance, but I felt it needed to be said.

Here goes...

I thought it was important to address the elephant in the room. Being a blog dedicated to vacationing in Disney during Christmas, the new pricing structure most likely affects many of my readers. For those that have been under a Spaceship-Earth-sized rock all week, here's a quick update:

Orlando Sentinel - Starting next week, Disney World will move to a tiered pricing system for one-day tickets. Disney will divide the calendar into value, regular and peak periods. Peak season will include spring break, much of the summer and late December. Disney's three other parks will cost $114 during those times — $10 less than the Magic Kingdom.


The news sent Disney fans into a frenzy. It was the main talking point on many podcasts, the source of countless forum threads and the focus of many blogs. It was front page news across many national newspapers and was met with a very disgruntled reaction from fans.

We deserve to feel upset. A price increase is never a good thing and is absolutely a sign of things to come. I highly doubt Disney stops at one-day passes . But perhaps the aggravation is a bit (a bit) misguided. Here are a few of the main arguments, along with my rebuttal:

What Would Walt Think?

This seems to be the most popular question and argument surrounding the price increase. Walt set out to build a family friendly park that everyone and anyone could attend.

It's tough to know exactly what Walt would think, and thus, impossible to answer this hypothetical. It's like asking how Babe Ruth would fare during modern-day baseball, or how Steph Curry would perform in the Oscar Robinson days (sports analogies.)

In the early days of Disneyland, guests didn't just pay a general admission fee, they had to buy tickets, much like one would do at a fair or carnival. Ride coupons were required to go on most attractions. There were A, B, C, D and E tickets. Typically, the "A" ticket would be the least expensive, while the "E" would be the most expensive. In modern day, an "E" ticket would be used for Seven Dwarfs Mine Train, while an "A" ticket would be used for the Walt Disney World Railroad. Using this fact alone, one would assume that Walt would stand behind a tiered system; but again, we'll never know.

Disney is Pricing Out the Middle Class

I'm 50-50 on this. On one hand, yes, the prices are growing and it's becoming harder and harder for the Middle Class to vacation at Disney. Yet, attendance is booming. The Middle Class holds a 50% share of adults in the United States. The main argument against the pricing tier is that Disney is pricing out the Middle Class, yet people continue to go.

Disney is a vacation. It's not something you need, nor are you entitled to. It's a luxury, like spending the weekend at the beach or traveling abroad. I come from a family that would be considered Middle Class and have been to Disney World more times than I can count. Now that my sister and I am older, we're able to pay our own way to go to Disney. But growing up, my parents certainly went through difficult times, financially. During those times, we didn't go on vacation. I always looked at my friends whose families had multiple houses or luxury cars and wondered how they did it. Their parents worked similar jobs as mine, yet they had nicer things. The fact was, rather than spend money on luxury cars or extravagant houses, my parents used that money to bring my sister and me on vacation. And I'm eternally grateful to them for that.

I think the price increases will deter many families, not doubt. But we have to keep in mind that going to Disney is a luxury. Next year, my family would like to stay at the Beach Club Resort. It's much more expensive than staying at a moderate, but we're taking the necessary cuts to save money for the trip. There may come a day that my family can't go every year for Christmas - so be it. We'll take "x" amount of years off, save up, and eventually make it back.

Disney Makes Enough Money



Disney is a business. While I'm sure there's a mission statement out there that says its goal is to provide guests with the most magical experience ever, the main focus is to make money. Lots of it. The New York Yankees are one of the most successful sports franchises of all time. And still, when it came time to build a new stadium, they included luxury seats behind the plate. Sitting in those sections came at gargantuan prices. Prices that make a one-night stay at a Deluxe Resort sound like a Motel 6. The main argument up here in NY was that the Yankees were pricing out the average fan. Sound familiar? They were. The fans didn't boycott the games due to the high-priced seating. Is attendance down? A little. But the Yanks still remain one of the most profitable sports teams in the world.

Another sports analogy - when a player accepts a huge contract. It happens all the time in New York and it's usually followed by "what do they need all that money for?" They need that money because money is nice. Money buys nice things. And at the end of the day, that's what they feel they deserve. If you got a call tomorrow from a rival company offering to double your salary, you'd jump at the opportunity. You're lying if you say you wouldn't.

Disney knows what it's worth and they know just how long they could straddle the line of supply and demand. People will continue to go to Walt Disney World because it's Walt Disney World, and they'll continue to charge premium prices because they can.

And while we're on the topic, many wonder what the motivation is behind the price increase. Is it to stagnant the crowds during peak times, thus lowering wait times and creating a better experience for guests? I'd love to think so, but no. Is it to push guests to purchase a 2-day ticket rather than a 1-day? Maybe. Ultimately, it's to make money. Because they can do it.

But All Those Cuts...

Yes, we've come to the one place where we can all agree: the cuts. It's utterly ridiculous and incredibly poor timing for Disney to make all these cuts. The decrease in character meet-and-greets, the fact that Hollywood Studios is a shell of itself and the amount of Cast Member jobs being cut isn't just poor timing, it's unfair and can damage guest experiences.

The biggest thing for my family is the Extra Magic Hours. The writing is on the wall: they're on their way out. My family used to salivate at the late-night EMH's. We used to plan our entire vacation around them. In past years, there were so many. We'd be running around Magic Kingdom at 2am hopping ride-to-ride and getting in everything we missed during the day. Those days are few and far between. It stinks, but we've come to accept it and tailor our plans because of it.

As fans - the fans who go to Disney regularly and have seen Disney at its best - we demand a certain level of service. We expect the Cast Members to be readily available and extremely cheerful (like, one their 6th cup of coffee cheerful), we expect intricate theming and to be immersed in the experience, and we believe that every trip should be sprinkled with pixie dust and leave us with the fondest of memories. The past few years, that hasn't been the case. The level of service has dropped; the construction kills the ambiance; and the amount of planning and details that go into each and every trip is more of a headache than anything else.

Our love for Disney is dependent on our memories and nostalgia: our first trip down Main Street, the smell of the water at Small World, our favorite snacks and drinks, and the first time we met Mickey. The experiences are what instilled a love for Disney in us and the memories are what keep us coming back. As a result, we're a stubborn bunch that resists change. Ultimately, I grew to love Starbucks being in Disney, but I'd be lying if I didn't curse the change when I found out we'd be sacrificing the beloved Main Street Bakery. I loved Frozen and I'm all for Disney capitalizing on its success, but I can't say it didn't kill me to see the Norway pavilion all boarded up.

Things change, though. It stinks, but what's new for us will be the norm for our kids and the next generation. Then they'll be left to complain when Disney replaces the Frozen ride with some new movie, or closes part of Toy Story Land in favor of a "newly improved" experience.

And look - the Cast Member cuts are the biggest disappointment. I work for a fairly large retail company and they recently cut a ton of jobs. Your heart goes out to those that lost their job. It's easy to become bitter toward the executives who have their eye on the bottom line. Disney showed the dark side of business, but that's exactly what it is - a business. While Cast Members seem to have dream jobs, at the end of the day they're just jobs - no matter how happy they seem to be at work. They assume the same risk each and every one of us do. At any given day you can be laid off or have your position replaced. It's a sad and pessimistic way to think, but it's the truth.

But in summation of the price increase...

For the time being, I can't complain. I've only purchased a one-day ticket once: last year. Was I flawed by the price? Absolutely. Forking over $100 for one day at the park felt like highway robbery. Did I forget about it once I entered the park? Yeah. I ate overpriced food and drank expensive beer all the way around the Food and Wine Festival and you know what? I'm gonna do it again this year.

How many people truly go to Disney World for one day? Just one day. If you're a local Disney fanatic, you most likely own an annual pass. If you're on vacation, you're probably going down for longer than one day. I understand if you're down there for a cruise or something, you may wanna "stop by." If that's the case, it's really up to you. I'd recommend weighing that extra $20-$30 against the grand total of your trip.

All in all, it's poor timing. The construction and cuts don't favor a price increase, but I do believe it's for the greater good. In a few years we'll look back and the price increase will be a moot point. I agree that it can be a slippery slope, but frankly, even if Disney increases all the prices tomorrow, I'll be back. And many of you are lying if you say you wouldn't be. It stinks, but Disney is just one of the many, many businesses taking advantage of supply and demand. And if you don't like it, don't go. But make sure you also boycott gas, airline tickets and many other vacation destinations while you're at it.
 

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TL;DR
But...a company that makes front-of-the-house staffing cuts and raises prices one month after reporting revenue and attendance that were both preceded by the word "record", is tone deaf. So yes, I am agreeing with your title that the timing was awful.
 
TL;DR
But...a company that makes front-of-the-house staffing cuts and raises prices one month after reporting revenue and attendance that were both preceded by the word "record", is tone deaf. So yes, I am agreeing with your title that the timing was awful.

I know, I hate that the copywriter in me made this so long, because I truly think I supported the argument well. Hopefully one day you have 4 hours to read it :coffee:
 

I don't see price tiering as a money grab. I see it more as crowd control.
 
I am sure that there are a lot of reasons that go into the decisions being made, but the one that sticks out is Shanghai. I've read report after report stating that the reason for all of the crunch throughout the Disney world is because Shanghai is in trouble.
Doesn't seem quite fare that the rest should suffer due to issues on the other side of the planet, but I guess that's how business works.
As for people being priced out of being able to go, well, most have been for a decade or more.
In the past, a family of four on a low payscale wage could still manage to go to Disney, just not several times a year. That same family now has to save for several years to be able to afford that previous once a year trip.
It isn't just Disney though.
I remember going down in 97 with my brothers family, and the roundtrip airfare from Detroit was 130 dollars. On average, the rt is now averaging 350-450 per person. Makes a serious difference when you are trying to budget for a family.
That same year, All Star Music was 39 a night. Ticket prices were considered high back then, but no where near what they are now.

Prices go up, salaries don't necessarily go up to match.

In the end, Disney will *probably* find attendance will come down. When they start to trend prices in a better direction, the question is, will it be too late to fix the gap?
 
For the time being, I can't complain. I've only purchased a one-day ticket once: last year. Was I floored by the price? Absolutely. Forking over $100 for one day at the park felt like highway robbery. Did I forget about it once I entered the park? Yeah. I ate overpriced food and drank expensive beer all the way around the Food and Wine Festival and you know what? I'm gonna do it again this year.

Herein lies the problem.
I enjoyed your post and you are correct on so many levels. Disney=Make Hay While the Sun Shines. And...it won't always be that way (think Post 9/11 years)

I have talked to several families who visited last October and December (those who hadn't been there in a couple years or more) who have decided to not return. In most cases they don't like the increased crowds and prices, the required advanced planning and feel like they may try Universal (or something else) the next time. As for us, we've decided not to renew our annual passes and take a break for a while. The cuts, coupled with the construction just doesn't make it that appealing any more.
 
Herein lies the problem.
I enjoyed your post and you are correct on so many levels. Disney=Make Hay While the Sun Shines. And...it won't always be that way (think Post 9/11 years)

I have talked to several families who visited last October and December (those who hadn't been there in a couple years or more) who have decided to not return. In most cases they don't like the increased crowds and prices, the required advanced planning and feel like they may try Universal (or something else) the next time. As for us, we've decided not to renew our annual passes and take a break for a while. The cuts, coupled with the construction just doesn't make it that appealing any more.
The crowds are my biggest irritant factor. I never go at peak times and in recent years the park population has just been too high. I think the better crowd control would be a fifth park, but who knows if that would even dent the issue.
 
Nicely written article. Thanks for sharing.

Personally, I'm surprised that so many people are surprised when Disney increases prices. Isn't that always going to happen? Shouldn't we just expect it to be the case? I agree that it stinks and I don't like paying more money anymore than anyone else does, but it seems to be the way of the world. Anyone who has been to the grocery store recently should know this. I'm paying at least $1 more for a pound of beef than I did last year, not to mention the price increases in milk, eggs, etc. and the things that the prices haven't gone up on now come in smaller packages so essentially it's the same thing.

I'm not going to swear off buying food any more than I'm going to swear off going to Disney. I still love it and I'll keep going as long as I do.
 
Herein lies the problem.
I enjoyed your post and you are correct on so many levels. Disney=Make Hay While the Sun Shines. And...it won't always be that way (think Post 9/11 years)

I have talked to several families who visited last October and December (those who hadn't been there in a couple years or more) who have decided to not return. In most cases they don't like the increased crowds and prices, the required advanced planning and feel like they may try Universal (or something else) the next time. As for us, we've decided not to renew our annual passes and take a break for a while. The cuts, coupled with the construction just doesn't make it that appealing any more.

Yeah, my cousin wants to bring her toddler and baby in the worst way. I told her to wait until 2017-2018. Not just because the kids will appreciate it more, but because there's no use in first-time visitors going right now. And yeah, I'd be lying if I said I didn't think about taking a break. For me, it's not so much about the cost as it is about the vacation days. I'm hesitant to use 5 days to do something I've done a thousand times, rather than go explore someplace I've never been.
 
I think people are freaking out more because it is going to get complicated and of course, it's a price increase when the time isn't right (closures...etc) as you say. Heck, I'm going to Kalahari this weekend, well sort of. I'm staying Sunday-Wed because my room is TWICE THE PRICE on Fri and Sat than the other days of the week. Our room is $420 a night (includes admission for 10) and on Saturday it would have been $840. Everyone does this, Disney is not some evil money-grabber anymore than every other hotel/entertainment chain.
 
For me, it's not so much about the cost as it is about the vacation days. I'm hesitant to use 5 days to do something I've done a thousand times, rather than go explore someplace I've never been.

Exactly. If I were a FL resident then maybe I would keep the AP. However, I live just far enough away that I can't justify a long weekend (or any other short duration trip) At the current AP rate for non-FL residents (even the renewal) you began to get in the realm of round trip flights to many world wide destinations, not to mention Hawaii and Alaska. So, yeah, as long as we've held the Annual Pass the pressure is on to go to WDW multiple times per year to get our money's worth. It's been fun and I can't say I won't do it again someday but there are other places to see.
 
I agree about mourning the lost EMH. If anything will really make me want to stop going, it's that, coupled with the shorter base park hours. I can handle prices rising & understand the logic of it, but severely cutting park hours & staff is a major blow to the vacation experience.

My son is approaching his teens & I can tell that after the next few years we will rarely, if ever, visit again. I've loved the memories I've made with family at Disney, but I'm not a "lifelong Disney World visitor" type. When the kids are past it, I will be, too. I won't mourn it much because of the cuts, crowds, complications, costs. I'll be glad to leave that part of it behind as we venture elsewhere.
 
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I don't see price tiering as a money grab. I see it more as crowd control.

I don't know. That's what they are saying, but for so many people, they are limited to going to WDW during those "peak" times. My DH is a teacher and my oldest is in middle school. We are not going to go to WDW during the school year. So we are stuck going during the more crowded (and more expensive) times.
 
I don't know. That's what they are saying, but for so many people, they are limited to going to WDW during those "peak" times. My DH is a teacher and my oldest is in middle school. We are not going to go to WDW during the school year. So we are stuck going during the more crowded (and more expensive) times.

Yes, and that will price some people out even if that's the only time they can go. Maybe not you. And probably not enough to make a real difference.
 
I've read report after report stating that the reason for all of the crunch throughout the Disney world is because Shanghai is in trouble
I'm hoping once Shanghai is done castmember staff will return to its normal as will the characters in the parks, one can hope.
 
Personally, I'm surprised that so many people are surprised when Disney increases prices.

I don't think anyone is surprised when prices go up, anywhere. The surprise and dissatisfaction comes when the price increases occur frequently while the level of service doesn't increase, doesn't stay the same, but in fact begins to decrease.
 
I don't think anyone is surprised when prices go up, anywhere. The surprise and dissatisfaction comes when the price increases occur frequently while the level of service doesn't increase, doesn't stay the same, but in fact begins to decrease.

Yup.
I get the same number of miles per gallon in my cars if gasoline goes up in price,
but along with the new higher Disney prices... we get less and less "Disney experience."
 


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