Disney Prices go Up? Even after revenues down?

[David Raguso]

just curious what would prompt rumors of price increases at the parks if revenues are down?

 

[SoCalKDG]

just curious what would prompt rumors of price increases at the parks if revenues are down?

Attendance was actually up. People just aren't spending as much money in the parks.

 

[ead79]

Disney seems dead-set on increasing their ticket prices every year, regardless of what the economy is doing.

Plus, park attendance is going strong, so it's the easiest way to add to their bottom line without increasing their costs. The biggest problem WDW is having right now is that people aren't spending as much on food or merchandise as before (not by a long shot).

 

[starbox]

Attendance was actually up. People just aren't spending as much money in the parks.

Why spend any money in the parks when all your dining is always free? Those of us that would actually pay for our food can't even make reservations because the restaurants are completely booked by the folks that are not paying!

(Spoken as someone who has set aside 200$ to eat at CRT on her 39th birthday and couldn't get a reservation the moment her window opened because it was at the end of the fall free dining extravaganza and had been booked 10 days prior).

 

[DVCGeek]

(Spoken as someone who has set aside 200$ to eat at CRT on her 39th birthday and couldn't get a reservation the moment her window opened because it was at the end of the fall free dining extravaganza and had been booked 10 days prior).

OUCH! That hurts. Better luck for your 40th? Or if the BD hasn't passed maybe you can catch a cancellation. Good luck!

 

[missy2217]

Why spend any money in the parks when all your dining is always free? Those of us that would actually pay for our food can't even make reservations because the restaurants are completely booked by the folks that are not paying!

(Spoken as someone who has set aside 200$ to eat at CRT on her 39th birthday and couldn't get a reservation the moment her window opened because it was at the end of the fall free dining extravaganza and had been booked 10 days prior).

That's just wrong Sorry for you

 

[lugnut33]

Attendance was actually up. People just aren't spending as much money in the parks.

If you can't get them to spend it in the parks, then ask for more to into the parks. It's logical.

 

[disneynutz]

just curious what would prompt rumors of price increases at the parks if revenues are down?

Greed!

 

[CarolAnnC]

This is more suited to our Rumor and News board as it is not DVC specific. Thank you.

 

[marius97]

I really hope that Disney doesn't do themselves what the auto industry did to itself. Besides making some not that great cars for awhile, they also gave so many incentives to buy a new car that people became conditioned to not buy a car unless there was big incentive on it. There came a point where people would turn there nose at $1000 cash back...Right now, the only way the Disney parks are surviving right now is by offering unbelievable perks like free dining or the stay 4 days get 3 free from earlier this summer (was that the right number of days?) That gets warm bodies in the parks, but doesn't change the fact that people are hurting for cash. They don't have the money to be spending on the extras like souveneirs. It seemed like the second the first free dining was announced a month or so ago, people were on the boards asking "will they extend it." After they extended it, people came to the boards asking what the next discount would be. You can't fault people for wanting the best deal they can get for themselves, but Disney seems to be half way down a very slippery slope.

 

[skier_pete]

Why spend any money in the parks when all your dining is always free? Those of us that would actually pay for our food can't even make reservations because the restaurants are completely booked by the folks that are not paying!

(Spoken as someone who has set aside 200$ to eat at CRT on her 39th birthday and couldn't get a reservation the moment her window opened because it was at the end of the fall free dining extravaganza and had been booked 10 days prior).

To everyone:
Disney is bound to raise ticket prices every year. Hopefully the raise will be small. A few years back when the economy was going strong, they raised the prices twice in one year, at least we didn't get that!

Starbox:
They don't open all the tables CRT - not by a longshot, but I can't tell you what % - for the 90+10 window. I personally experienced this when I called at 90+10, couldn't get it...then called again at 90 and got the date and time I wanted. This was during free dining, too. (Actually it was 180 days then.)

Even so, keep trying - CRT is a pre-pay place - there are always lots of cancelations, even from free dining. You might not get your ideal time, but give it a try. (Or if you have a large party - try breaking the party in two.)

SkierPete

 

[PHILCT]

Disney Castmembers are totally underpaid.

If they don't raise ticket prices, things will get worse for them.

We all want are annual raise, who would be happy if they didn't get a raise this year?

I listened to this week's Podcast, and I agree with something Pete Werner said. He thought that Disney needed to work on new ticket strategies. He was really surprised that Disney still had not adopted a Florida Annual Pass, pay on installments program, that has worked successfully for other Parks.

One thing that always surprise me when I go to Florida, is how some of my friends (former castmembers) can't afford to get that Florida Annual Pass, and rely on current castmembers to sign them into the parks.

I think personally Disney should promote the Annual Pass program more, make it more affordable, and give REPEAT business perks for those who come back to stay at the moderate or higher price resorts for the 2nd and 3rd visits each year. Perks would include some Free Fastpasses, Dining Reservation Window increases, and some really nice discounts on Counter Service Dining. Table Service Dining has gone mad!

I also think that even after Disney raises rates, it looses profits on those Free Dining Promotions. People expect these discounts now, and Disney is teaching them to expect them more often in a bad economy. I think Disney needs to further cut down on its free Dining offers, and the near half price room codes, and rely more on other marketing strategies like offering Fast Passes, especially for repeat customers. Instead of free food, offer a free Tables in Wonderland card, maybe even 25 percent off, but not 100 percent off.

I am going to get yelled at, everyone wants equal treatment by Disney, at a Discount rate, and don't take away my free food, and don't take away my chance to get on a ride. Well you either have to pay more to let Disney make a profit, or you have to let Disney give you something free that doesn't cost them much, like Free Fast Passes and Special Perks on Dining Windows or Dining Seats put aside for Repeat Customers.

I now hate that I have to figure out my Dining Reservations so far in advance and I get angry when I consider I am competing with those who got free food. Just give them a good price on the dining plan, don't make it free, the Restaurants are too full for a lot of people to get reservations, and who wants to go to a resort that has no Dinner reservations. This process makes everyone behave like a travel agent, 3 months in advance, it is good for this group, but it won't make Disney any profit.

If Disney wants to sell more DVC, it is going to have to expand more on these kind of Perks to this community as well. If you own at DVC, you don't get a chance for free food, or a chance at a near half price room, as you already have points to use, and most are not ready to pour out more cash for Non DVC rooms. If I were thinking about buying DVC today, I would wonder, aren't I better off on counting on Disney offering free dining or almost half price rooms for the foreseeable future? After one buys DVC, there is not as much of a perk to be had, except for annual pass discounts.

Disney does need a fifth park, one that is controlled like Discovery Cove, a daily limit, a high price, all inclusive including Dining. It would be free of the hassle of restaurant reservation searching, crowds, long lines, the need to be a perfect Fast Pass runner, and knowing what time of the day is the best to get on that ride. It would be pricey, but it would be loved, and Disney could get profit from those who could pay for it.

Okay, now yell at me ! But if you do, what is your idea for how Disney can make more profit.

I don't want my house property taxes to increase either, but they do, all the time.

 

[P.I. Squirrel]

I cut this from Orlando Sentinel's story on the ticket prices:

"We survey our guests regularly and, in our research, nearly 9 out of 10 guests rate the value of our theme parks as good, very good or excellent," Prunty said. "Our pricing is based on the high-quality experience we deliver to our guests, and our guests continue to agree that a ticket to Walt Disney World represents a great entertainment value."

I've been surveyed several times over the years in the park, and that is the last time I say it's a 'good value'. If enough of us survey takers experience displeasure on the survey, rather than moaning about it on the message boards, maybe Disney will get a clue.

I wondered out loud to DW about what the breaking point will be, before people start leaving Disney en masse for smaller, much cheaper theme parks. I guarantee a week at Six Flags or Dollywood would not cost $2000, even with lodging.

 

[Dznefreek]

It was just on the news here one day $75.00 to $79.00 starting Sunday . . . . .

After Posting Lower Revenues, Disney Ups Prices
Prices Will Go Up 2.5% To 5.3%

POSTED: 4:46 pm EDT July 31, 2009
UPDATED: 5:01 pm EDT July 31, 2009
[BUZZ: After Posting Lower Revenues, Disney Ups Prices] [DELICIOUS: After Posting Lower Revenues, Disney Ups Prices] [DIGG: After Posting Lower Revenues, Disney Ups Prices] [FACEBOOK: After Posting Lower Revenues, Disney Ups Prices] [REDDIT: After Posting Lower Revenues, Disney Ups Prices] [RSS] [PRINT: After Posting Lower Revenues, Disney Ups Prices] [EMAIL: After Posting Lower Revenues, Disney Ups Prices]
ORLANDO, Fla. -- One day after it reported declining revenue, Walt Disney World announced it will be raising prices effective Sunday.

Disney said theme park admission tickets will go up between 2.5 percent and 5.3 percent. It said the timing of the raise "falls in line with the needs of the travel trade industry to produce up-to-date 2010 brochures and guidebooks for guests."

A one-day theme park ticket will now cost $79, up from $75. A three-day ticket will cost $219, up from $212 and that same ticket for a Florida resident will cost $134, up from $129. A seven-day ticket will cost $234, up from $228.

Thursday, Disney said reported third quarter revenue of $8.6 billion, down 7 percent from $9.2 billion in the third quarter of 2008. Analysts had estimated revenue at $8.8 billion. Disney said revenue from theme parks is down 9 percent.

 

[mitros]

Disney parks, restaurants, and rides/shows are constantly filled to capacity, People flock to WDW in droves. It has always been, and always will be. AND people WILL continue to pay the ever-increasing costs of a WDW vacation. Even though they have to stand on long lines, belly-to-back in the parks, have a horrible time trying to get dining reservations, and find it extremely difficult to get a resort reservation, they will come, and it will NEVER change until people finally wise-up to Disney's bull_ _ _ _! and simply stop going.

 

[kyoung6166]

You guys are acting like you have never seen Disney raise ticket prices before. They have done it almost every year since they starting going to a One-Ticket admission to a park.

You are spot on with your assessment. I am a DVC Member as well and I feel we are getting left out in the mix. We came to WDW about twice a year so we thought going DVC was the way to go, (which has still saved a ton of money) but now with all the perks Disney is throwing out with free dining and free nights and $200 Merchandise Gift Cards when you check in, we are getting the raw end of this deal.

CM's also finally got a raise when the Federal Minimum Wage was just hiked last week. For the 6,000 housekeepers they employ it was about $0.75 cents an hour - so someone has to pay for that as well.

I bet the One-Day Ticket Sales are so small compared to the rest of there sales of Multi-Day tickets that it really won't affect the small percentage that use that option. How many people are really going to Buy a 1-Day Park Hopper Pass anyway? If your a Florida Resident there are so many options for Disney that you would never pay for a One-Day Pass living here.

I think the Big Question should be why is the CEO of Disney the third highest paid in the country at $51 Million Dollars last year when he hasn't posted a gain in profits since Michael Eisner left?

 

[skier_pete]

No-one is looking at the bright side!

I get an extra $4 on my free birthday gift card!

Oh wait, but the AP's I was going to upgrade to went up by $20. D'oH!

Never mind....

Seriously, though...Operating expenses DO go up folks, even in a recession. I don't think the raising of the ticket prices was outrageous - maybe for the 1-day pass it was a little much, but if you hae a family of four on a seven day pass, your vacation expense went up by about $24...a trip you likely were likely to spend $2000 - $5000 on. Just buy one less t-shirt and quit your whining!

SkierPete

 

[Luv2Roam]

I am sure a lot of 1 day tickets are sold. However going to any park/attraction that sells mutli-day tickets, I would logically know the one day ticket is the most expensive way.
I don't think WDW is looking for the one day guest. They are trying to hook the multiple night guest.
I advise friends to buy a non-expiring 10 day ticket. They would have multiple entries paid for and at the least per day price. (Unless they had a lot of days planned and an AP would be the way to go.)

 

[mitros]

You guys are acting like you have never seen Disney raise ticket prices before. They have done it almost every year since they starting going to a One-Ticket admission to a park.

You are spot on with your assessment. I am a DVC Member as well and I feel we are getting left out in the mix. We came to WDW about twice a year so we thought going DVC was the way to go, (which has still saved a ton of money) but now with all the perks Disney is throwing out with free dining and free nights and $200 Merchandise Gift Cards when you check in, we are getting the raw end of this deal.

CM's also finally got a raise when the Federal Minimum Wage was just hiked last week. For the 6,000 housekeepers they employ it was about $0.75 cents an hour - so someone has to pay for that as well.

I bet the One-Day Ticket Sales are so small compared to the rest of there sales of Multi-Day tickets that it really won't affect the small percentage that use that option. How many people are really going to Buy a 1-Day Park Hopper Pass anyway? If your a Florida Resident there are so many options for Disney that you would never pay for a One-Day Pass living here.

I think the Big Question should be why is the CEO of Disney the third highest paid in the country at $51 Million Dollars last year when he hasn't posted a gain in profits since Michael Eisner left?

Wow, your last line says it all.............

 

[MountNittany]

Since the dollar is so weak, I'd assume that people from outside of the US are coming to Disney than ever before, is that correct?

I really haven't noticed that much of an increase in anything at Disney in the past few years. I was looking through our family's old receipts... 10 years ago we bought ponchos for $5! They are still only $5.