Disney says MyMagic+ is not over budget

[richw2]

Could if be a financial and statistical success and a marketing bust? WDW is trying to reshape buying behavior (of a sort), and that can be next to impossible. Decades ago, retailers taught the American shopping public never to buy anything unless it is on sale. To this day, every attempt to alter that buying behavior has failed (Sears, JC Penny, etc.). To somewhat the same extent, Disney has taught people how to use WDW and DLR using Fp-. Now they are trying to alter that behavior. True, a new target market may embrace FP+, but the established market (of which I consider myself belonging to) is being alienated. Yes, customers like myself do not buy many souvenirs and know where to find the best values for food. However, customers like myself stay in the deluxe hotels and purchase fireworks cruises and afternoon massages at the spa. Given the current situation, I am taking that money and going on a Royal Caribbean cruise this year. Did Disney account for this? Will they attempt to bring me back and how will they do it?

They won't have to bring you back , you will come running..

 

[xie]

They won't have to bring you back , you will come running..

I don't know about that.

We cancelled two upcoming WDW Resort reservations after our January WDW boondoggle. And quite the boondoggle it was - we spent the drive home lamenting how much we spent for some of the worst service we've ever seen. Usually, we spend the trip home talking about what we're going to do on the next WDW trip.

Instead, we have 8 days at Universal Hard Rock Hotel in September, with no WDW park days planned at all.

After that we're headed to Yellowstone/Jackson Hole.

We're done. We expect more for our money than what Disney can provide with so many people on property. The ratio of guests to staff is way out of whack. The food is a pale imitation of what it was 10 years ago. Cost-benefit is way out of whack. So they may be profitable, but it won't be from our participation any longer.

 

[oddman]

We don't see the profits yet because they haven't been factored in yet. I bet we won't see a different for a couple of years. It's too early to see profits because they are still paying for it.

I does not work that way. the monies don't have to be "paid off" to start counting profits...

 

[oddman]

He can't be right. He works for Disney. And obviously anonymous people on the internet know far more than he does.


People believe what they want to believe.

The idea that it hasn't made money is totally not applicable. This was not a ticket price increase. It's benefits are long term and myriad. It will do a great many things. In the short term, spending is up due to magic bands, but that is only one little part.

It is going to be fantastic and change the fundamentals for all theme park companies by providing huge amounts of data, some of it real-time.

there might be a correlation between magic bands and spending but that does not mean there is causation... (and of course of course dis is going to say it is working, just as MS says win8 is going great and the sun rises)

And frankly if being a random person on the internet is making you laugh, consider this. You are as random and internetty as anyone else.


As to the long term benefits of Magic bands, sorry but most or much of this data already existed. this is simply a refinement of something the CC and data mining brought us already.
There is a diminishing utility when collecting these types of data. The first few points are great the next set fab, but you don't need 500 a day to know the dude is not going to drop $200 on lunch

As a consumer this harvesting and tracking is BAD for you not good. As an investor it is hard to know how well these big bets will pay off longer term.



Dis will use this data to ensure they get the max rev from each type of visitor, they know they need big and small spenders, and this system might let them get a little more. But frankly they have pretty much tapped out the well. Visitors are unlikely to continue spend more real dollars per visit. That is unless of course Disney decides to completely overhaul its model and dispense with middle class visitors completely.

 

[Yellowstonetim]

there might be a correlation between magic bands and spending but that does not mean there is causation... (and of course of course dis is going to say it is working, just as MS says win8 is going great and the sun rises)

And frankly if being a random person on the internet is making you laugh, consider this. You are as random and internetty as anyone else.

As to the long term benefits of Magic bands, sorry but most or much of this data already existed. this is simply a refinement of something the CC and data mining brought us already.

There is a diminishing utility when collecting these types of data. The first few points are great the next set fab, but you don't need 500 a day to know the dude is not going to drop $200 on lunch

As a consumer this harvesting and tracking is BAD for you not good. As an investor it is hard to know how well these big bets will pay off longer term.

Dis will use this data to ensure they get the max rev from each type of visitor, they know they need big and small spenders, and this system might let them get a little more. But frankly they have pretty much tapped out the well. Visitors are unlikely to continue spend more real dollars per visit. That is unless of course Disney decides to completely overhaul its model and dispense with middle class visitors completely.

You are right, there may not be direct causation, but it is possible and it is what is being claimed. That doesn't seem to be the real profit to me, either.

Yes, I am just a random person on the internet, but I am making no inside knowledge claims and conclusions as if I knew everything. Anyone that does should be taken - as we all should in this environment - with a HUGE grain of salt.

This data existed?! The real data they will get from this has not existed and no other company is close to gathering this type of data!! And it is extremely valuable data!

There is always this negative assumption and it is a mistake many make to assume this is only about direct squeezing of a few dollars out of visitors. Nobody is forced to buy anything. There will be some direct profit increase, as with increased spending by not standing in line, but that isn't the real value.

At the present time there is no way to know what customers, from what demographics, are actually doing in the parks. That is why there were always tons of CM's taking surveys when you would enter or leave a park asking all kinds of questions: Where are you from? How long are you staying? How many, what ages, what activities, etc. And surveys are woefully limited and inaccurate.

The bands contain passive and ACTIVE rfid and the parks and resort will be full of points with long distance readers as well as short distance and touch readers. Therefore, they will be able to tie your location, movement, activity, riding, and spending directly to your account. They will know this information about every individual wearing a Magic band. They will know this information LIVE. They will know when lines are long and exactly WHO is in them. They will know all types of information. They will know that X number of people in Z demographic walked by ride A when the line said 1hr long, and that Y number of people in the same demographic walked by ride A when the line was 2hrs long. They will know that my kids ages X and Y rode these rides and not others. They will know how Europeans behave differently than North Americans than South Americans than Asians than.... They will know what people age 50 to 60 do (Me and my wife). They will then use this information to design offers, make changes, and customize the experience for particular demographics.

If only 20% of the 50-60 age people do X, but 90% do Y, they could offer this group something to do with Y. (This is just a small example) How much time does my age visitor actually spend in the parks and at what times? How do we behave differently by ourselves than with kids along? This and thousands of other questions can be answered by analyzing this data that no one had before.

So there are two basic ways why this information is absolutely beneficial to me and all visitors and I am very happy to give it to them:

First, the live information will tell them things about lines and crowd behavior real time that no one was ever able to gather. This will be gather live and analyzed in seconds to adapt to crowd patterns in so many ways. They will be able to move CM's, move product from one place to another, and respond instantly to crowd and line problems. (Bathroom X has seen 25% higher traffic in the last two hours than usual, send a CM to clean up sooner than planned) That benefits every visitor!!

Second, they will be able to learn all about what I do, what I want, when I want it, and will be able to adapt for me. That is also nothing but good. It also makes me happy and I spend money when I am happy.

Disney cannot force anyone to spend money unless they want to, so no one is getting squeezed. Go if you want, spend if you want... or don't. BUT, I like their having lots of information about we visitors so they can adapt and make us happy. Then they will make money. Me happy-them richer. That is what we both want.

As long as this information is only gathered about my behavior while on property or on their website, and as long as it only remains in the Disney company family, then there is no harm, only advantage to all parties?

As a person who does statistical and financial analysis, the never before available opportunities this data will provide makes my mouth water! It would be so much fun to crunch this info and learn about what Disney visitors really do!

Ten years from now the entire theme park industry will be revolutionized as Disney licenses this proprietary system to other theme park companies and other organizations where it might be a match. Anywhere business has large numbers of customers in one location (sporting events, fairs, concerts, etc.) this may have useful application.

And I say this all as an anonymous person on the internet so take it all with a big grain of salt.


But look at the possibilities. Isn't it obvious how valuable this is?

 

[Laz]

They won't have to bring you back , you will come running..

I have been sent running to DLR and Royal Caribbean.