Disney Raised Parking Prices Overnight!

[Marionnette]

Christmas 2013. Did you not see the pictures of the parks or hear about the wait times for rides? It was insane.

It never reached Phase 4 during Christmas 2013.
http://www.wdwmagic.com/attractions/magic-kingdom/news.htm

 

[KalamityJane]

Understand what you're saying about customer satisfaction and the guest experience playing a huge role in the number of return visits. And I do agree with you in that regard.

However, I do not believe that the Disney executives are looking at it the same manner that the guest is looking at things. Their goal is to get as many people to visit the parks as they can, keep costs low and profits high. Their first objective is to keep the stockholders happy, not the guests. An increased level of guest satisfaction just helps to meet the first objective. There's a tipping point where guests' perceived value of the "product" will make them go elsewhere with their money. The idea is to push as close to that tipping point without going over the edge. Disney doesn't want to raise prices in order to keep people away. They raise prices to maximize their profits.

No, I agree with you there, but if they can get less people in the park (meaning less demands on the system, less costs involved with wages/CMs/people they employ, less wear and tear on the rides/parks) but those people are paying more revenue out per person, it actually maximizes their profits. More people paying a lesser price results in more costs for them and less profits. It's in their best interests to lessen crowds and increasing prices does that while also raising their revenue per head.

 

[andrews_dad]

Sorta agree with a previous poster.... they sold us all on the magic and the magic is losing it luster with the ticket price increases, the magic bands, the changes to fast pass system, parking fees, food prices, etc. It's like we have seen the magician's trick behind the curtains and are no longer wowed by the act. Everytime we are fleeced for another charge, forced to stand in longer line, and treated more and more like a lowly forgotten paying customer rather than a GUEST as they call us, it less and less magic.

 

[KalamityJane]

Sorta agree with a previous poster.... they sold us all on the magic and the magic is losing it luster with the ticket price increases, the magic bands, the changes to fast pass system, parking fees, food prices, etc. It's like we have seen the magician's trick behind the curtains and are no longer wowed by the act. Everytime we are fleeced for another charge, forced to stand in longer line, and treated more and more like a lowly forgotten paying customer rather than a GUEST as they call us, it less and less magic.

You should check out Disneyland if you haven't already. The magic is still alive

 

[Marionnette]

No, I agree with you there, but if they can get less people in the park (meaning less demands on the system, less costs involved with wages/CMs/people they employ, less wear and tear on the rides/parks) but those people are paying more revenue out per person, it actually maximizes their profits. More people paying a lesser price results in more costs for them and less profits. It's in their best interests to lessen crowds and increasing prices does that while also raising their revenue per head.

Following that logic, if no one goes to the parks because they are too expensive, Disney can save a ton of money by sending all of the CMs home and turning out the lights!

I know. That's just a facetious statement.

I'm all in favor of Disney turning a profit because I'm a free-market kind of gal. I don't feel that Disney somehow owes me anything other than what I have paid them for. I do understand your point about driving operating costs down by raising prices to reduce attendance. It's just that I don't believe that is the logic behind Disney's recent moves.

 

[ssawka]

yes.... but as I noted, that's what they are currently losing.... they were the BEST at making us WANT to spend our time and money with them,even though it was ALWAYS more expensive than other choices.... These changes are real. How it alters my own opinion of the experience is real. That fact remains, they have seemingly lost their ability to 'smoke and mirrors' their customers and it will eventually impact negatively on their bottom line. (FWIW, I always considered it the best 'illusion show' in the business...to make us enjoy spending)

I hear what you are saying, but unfortunately I don't think Disney cares anymore. In fact I would venture to say that very few corporations do. It's all about short term gains. Share holders don't care about ROI 5 or 10 years down the line, they need instant gratification. It's sad to say, but I think Disney feels that if "you" get upset and don't go back, there is someone else to take your place.

 

[ellynsoh]

One small example: when I was there last week, I saw a single uncrustable for sale at AKL for $5.29. That, to me, is price gouging. I did see fewer refillable mugs clutched in guests' hands than I had in the past. Okay, one more example. Ten dollars for a half-fiilled bowl of soup at Le Cellier and $40-$50 for lunch. I won't be back there.

 

[MillauFr]

I hear what you are saying, but unfortunately I don't think Disney cares anymore. In fact I would venture to say that very few corporations do. It's all about short term gains. Share holders don't care about ROI 5 or 10 years down the line, they need instant gratification. It's sad to say, but I think Disney feels that if "you" get upset and don't go back, there is someone else to take your place.

How is raising prices compromising long term profits?

 

[Marionnette]

How is raising prices compromising long term profits?

Prices go up. Perceived value goes down. Customers go bye-bye.

The Disney brand was the hallmark of customer service and satisfaction. The current executives' decisions seem to be aimed more at pleasing current stockholders in the short-term instead of looking at the long-range impact of alienating their customer base.

Let's face it. I could go to Six Flags in NJ if I want to visit just another theme park. I choose to vacation at Disney for that extra je ne sais quoi. I pay extra money for it. When Disney loses that special edge, they become "just another theme park"...and a very overpriced one, at that!

 

[xie]

Prices go up. Perceived value goes down. Customers go bye-bye.

The Disney brand was the hallmark of customer service and satisfaction. The current executives' decisions seem to be aimed more at pleasing current stockholders in the short-term instead of looking at the long-range impact of alienating their customer base.

Let's face it. I could go to Six Flags in NJ if I want to visit just another theme park. I choose to vacation at Disney for that extra je ne sais quoi. I pay extra money for it. When Disney loses that special edge, they become "just another theme park"...and a very overpriced one, at that!

Very true.

We have been 1-2x a year onsite customers for a long time. We have spent the majority of our annual entertainment budget on Disney property for the last couple of decades.

There has been gradual but definite deterioration in service and quality since the mid 00's. It's escalated in the last 3 years. All during this time, while service/quality was declining, prices have been going up at a significant pace.

We were there for 9 days at NY2014, and that was our last onsite trip to WDW for some years to come, possibly forever. We returned home and promptly cancelled the onsite reservations for both our upcoming trips to WDW. Our APs expire in May and we will not renew them. All the poor service has just killed our enthusiasm for returning. I never thought I'd see the day, honestly. I'm still surprised by the fact that no one in my family wants to go back.

 

[MillauFr]

They need to keep raising prices to get the crowds under control. The situation in Anaheim is critical and getting worse every year. They are jacking the prices through the roof and it has slowed but not stopped the incessant growth in crowds there. There is no evidence that people are not showing up.

 

[Marionnette]

They need to keep raising prices to get the crowds under control. The situation in Anaheim is critical and getting worse every year. They are jacking the prices through the roof and it has slowed but not stopped the incessant growth in crowds there. There is no evidence that people are not showing up.

You're right that there is no evidence to support the idea that people have reached their tipping point - yet. Attendance is actually up 1.5% over last year. And it seems like there will always be another visitor to replace the one who decides they've had enough. But all it takes is one dissatisfied customer to discourage 5 more from ever walking in the door.

I'm talking long-range. You're looking at a snapshot in time, just like the Disney execs are doing. If Disney actually wanted to control the crowds and reduce the number of people in the parks, they could easily do it by reducing the number of people permitted to enter the parks at a given time. They could raise prices accordingly, in order to maintain profitability and claim that they are doing it in order to ensure a quality experience for all guests. Can you explain why, if Disney wanted to "stop the incessant growth in crowds", they wouldn't implement lower numbers for their Phased closures and reduce crowd population in that manner?

 

[disney1990]

Prices go up. Perceived value goes down. Customers go bye-bye.

The Disney brand was the hallmark of customer service and satisfaction. The current executives' decisions seem to be aimed more at pleasing current stockholders in the short-term instead of looking at the long-range impact of alienating their customer base.

Let's face it. I could go to Six Flags in NJ if I want to visit just another theme park. I choose to vacation at Disney for that extra je ne sais quoi. I pay extra money for it. When Disney loses that special edge, they become "just another theme park"...and a very overpriced one, at that!

Well said. We used to go 2 to 3 times a year -- and we live almost a 1000 miles away. Lately it has been once a year and now, after 24 years, we are rethinking that. We have a trip planned in June because our APs expire July 1st, but after that, we will be in a wait and see mode.

Everybody remembers when attendance was down; when the only people going to the parks were the die hard Disney people; when the 1/2 half of Pop Century sat like an abandoned coal mine (for 27 months); when they put up a wall and didn't even start Boardwalk - Disney does not want to anger their hard core Disney people.

 

[wolf29]

How is Disney's Parking fee out of line with other fees around the country? Anyone try parking around a stadium for a Major League sporting event? Better have $30-$60 ready. Stay on site it's free.. entertainment venues, casino/hotels, zoos, museums, railroad stations, airports, etc ALL charge for parking.

 

[rdsx28]

I personally am not bothered by off site guests getting a price increase. Any amusement park charges for parking. What I do have issue with is 20.00 for valet parking. I remember when DVC got valet parking for free! I must be honest and say I think for what we pay for DVC valet parking should be free. The fee is 20.00 yes and then the CM's expect a tip on top of that. If you leave twice a day that could cost you a ton of money. We self park and in the past had gotten the meal plan. NO more. The food is less than stellar and we can eat off site much cheaper and have much better food. I love Disney but yes they are pricing people out!

 

[ssawka]

How is raising prices compromising long term profits?

As others have said, it is about perception. If enough people feel that Disney is over charging then there could be a drop in attendance which could potentially lead to reduced revenue and hurt long term profitability. It's a balancing act between price and demand. As they charge more, less people will go (in theory). The question is is the increase in price enough to offset the decrease in demand.

 

[ssawka]

I personally am not bothered by off site guests getting a price increase. Any amusement park charges for parking. What I do have issue with is 20.00 for valet parking. I remember when DVC got valet parking for free! I must be honest and say I think for what we pay for DVC valet parking should be free. The fee is 20.00 yes and then the CM's expect a tip on top of that. If you leave twice a day that could cost you a ton of money. We self park and in the past had gotten the meal plan. NO more. The food is less than stellar and we can eat off site much cheaper and have much better food. I love Disney but yes they are pricing people out!

With DVC you are are paying for a room, nothing more, nothing less. I agree we spent a large chunk of change to join DVC, but we did it to offset trip expenditures of the long run.

As for eating offsite, that depends on if it is cheaper. Do you fly in to Orlando? If so, then you need to factor in the price of a rental car and gas. Also, what is your vacation time worth? For me it is a lot and I don't want to waste my time seeking restaurants off-site. I am the epitome of what Disney is looking for. Disney is able to charge the hotel and food prices they do simply because of their massive size.

 

[MillauFr]

It's a balancing act between price and demand.

Correct. At Disneyland there is no balance. They are charging far too little for admission most days as the place is packed to the gills. They need to move to a variable pricing model where they let people in for free on low demand days and charge $500 per day on high demand days. Just like they do on the cruise ships.

 

[manning]

Remember the old days kiddie lands? You entered the park free and paid to ride. Disney was kind of like that when they started. You paid a small fee to get into the park then paid to ride. The price was according to the level of the ride. Magic band would make it possible. The question would be could they make a profit. Want to go to the head of the line? Pay a high fee. You program it into the magic band.

 

[Marionnette]

Remember the old days kiddie lands? You entered the park free and paid to ride. Disney was kind of like that when they started. You paid a small fee to get into the park then paid to ride. The price was according to the level of the ride. Magic band would make it possible. The question would be could they make a profit. Want to go to the head of the line? Pay a high fee. You program it into the magic band.

I'm sure that this has all been considered (and perhaps already written into the FP+ computer code). Like the ability to hop between parks and additional FP+ choices being made available after the first 3 are used. That upcoming change was announced a couple of days ago. Who knows what else they've got programmed into the process, but have not turned on? It might be that they begin to offer additional tier #1 FP+ as an addon to your tickets. For a fee, of course.

However, I just don't see Disney going back to the old ABCDE-ticket ride format. It doesn't account for entertainment costs that guests enjoy as a part of their admission now. In fact, most amusement parks no longer use a tickets-per-ride system. Most have single-price admission with tiers for shorter customers and discounts for seniors who tend to skip the thrill rides.