Disney's Magical Express thriving at OIA; rivals cry foul

[crazy4wdw]

From the Orlando Sentinel:

Disney's Magical Express thriving at OIA; rivals cry foul
Jason Garcia | Sentinel Staff Writer
February 21, 2008

Though it is not yet 3 years old, Walt Disney World's popular but controversial airport shuttle and check-in service is luring so many tourists that the company soon might have to expand at Orlando International Airport — and fight off an antitrust lawsuit.

Disney transported more than 2.1 million passengers last year from the airport to its resorts and cruise ships, according to newly available figures. That's nearly 9percent more traffic than it handled in 2006, and it's the first time the Disney service has crossed the 2million threshold in a year.

At peak travel times, the company's Magical Express buses to Disney World and its Disney Cruise Line buses to Port Canaveral carried more than 12,000 passengers in a single day. During one month — September 2007 — Disney carried away more than one of every seven travelers who landed at OIA.

Disney's contract with OIA allows the airport to make Disney add a second customer check-in location when the company carries more than 2.2million passengers in any 12-month period. Should that happen, Disney would have to divide its theme-park and cruise-line shuttle operations and rent more counter and queuing space at opposite ends of the main terminal.

Disney currently pays nearly $1.3 million a year to rent counter, office and other operating space at the airport.

Spokeswoman Zoraya Suarez said Disney expects to pass the 2.2million threshold this year. Some airport officials think it will happen as early as March or April.

"When we do reach that benchmark, we will plan with the airport authority on what steps will be operationally needed to ensure the highest level of service for all airport guests are met," Suarez said. "We're excited about growing DME further."

For all it success, Disney's Magical Express has been unable to shake controversy.

Other transportation companies continue to accuse Disney, which does not separately charge customers who ride Magical Express, of running its smaller competitors out of business. At least one operator, Premier Exotic Limousines, recently pulled out of the airport in large part because it couldn't compete with Disney's service, co-owner Jenaid Abdulhakeem said.

Rival operators say Disney shouldn't be allowed to advertise Magical Express as a "free" service when the company can simply bundle the costs of running the shuttle and luggage service into the price of its hotel rooms.

"Nobody can run 40 to 50 buses a day for free," said Miguel Hernandez, the owner of M&J Tours and Transportation Inc., which operates two stretch limousines, a town car, an SUV and a 15-seat van. Hernandez said his business has fallen nearly 30percent since Magical Express began. "We can't compete with 'free.'"

Disney's Suarez said Magical Express has been a boon for all of Central Florida because it has eased congestion in airport check-in lines and at baggage-claim carousels, reduced the number of tourists on the road in rental cars, created new jobs, and been an extra lure in getting more travelers to visit Orlando.

Still, the National Limousine Association says it is considering challenging Disney on antitrust grounds.

"It's being looked at," said Barry Lefkowitz, a lobbyist for the Marlton, N.J.-based limousine association, though he conceded that such a challenge would face long odds. "We're trying to work out some kind of game plan."

While it has had little trouble filling its buses, Disney has had more difficulty boosting customers' use of Magical Express' related return-flight check-in option. That's the service through which guests can check in for their flights home and drop off their luggage before they even leave Disney property.

Guests who don't use the remote check-in service can still ride the Magical Express shuttle. But company executives have made it a priority to encourage use of the baggage service, too, in hopes of freeing visitors to spend even more time in Disney's theme parks before they leave for home.

There's another incentive: Disney's deal with OIA includes a provision capping the amount it can be charged — provided by June Disney gets at least 65percent of its Magical Express riders to use the remote check-in option when they return to the airport. OIA currently charges Disney 75 cents a rider, which cost Disney nearly $1.6million last year. Under the cap, OIA could not raise that charge beyond $1.25 per rider.

Disney, though, has yet to reach an agreement with Southwest Airlines, the busiest carrier at OIA, that would allow Southwest passengers to use the remote check-in service. Every other major domestic airline already participates in the program — which reduces the amount of luggage that has to be screened in OIA's main terminal — but Southwest alone is responsible for more than a fifth of OIA's traffic.

Southwest and Disney had hoped to have a deal in place early this year. But Southwest spokeswoman Marilee McInnis says the airline is concerned that Disney and the company it contracts with to run the check-in service, Orlando-based Bags Inc., would be overwhelmed by Southwest passengers. The airline, she said, expects at least 80,000 of the nearly 320,000 passengers Southwest brings to Orlando every month would use Magical Express.

"With the number of bags we have, the number of customers we have, it would just be difficult for them to handle that load," McInnis said, adding that Southwest processes more bags at OIA on a per-passenger basis than it does at any other airport in the country.

"We're working with them to try and automate the process," she added. "We are close."

Jason Garcia can be reached at jrgarcia@orlandosentinel.com or 407-420-5414.

 

[DancingBear]

Interesting update. BTW, if you are flying a participating airline you can use the remote check-in option from your resort to check your bags through even if you aren't riding the Magical Express bus.

 

[MassJester]

I love the Magical Express -- and I don't see how it's any different than Hotel's offering their own complimentary shuttle services.

 

[Cheshire Figment]

The really big difference between ME and a hotel shuttle is the luggage handling.

For ME Disney's contractor will pick the bags up from Baggage Claim and arrange for the bags to be taken directly to the Guest's Rooms. And you check in your bags at the Resort.

With hotel shuttles you have to get your bags and bring them to the shuttle, and for most hotels with shuttles you have to bring your bags with you and check them in yourself at the airport.

 

[MassJester]

The really big difference between ME and a hotel shuttle is the luggage handling.

For ME Disney's contractor will pick the bags up from Baggage Claim and arrange for the bags to be taken directly to the Guest's Rooms. And you check in your bags at the Resort.

With hotel shuttles you have to get your bags and bring them to the shuttle, and for most hotels with shuttles you have to bring your bags with you and check them in yourself at the airport.

Got it, but the shuttles still compete against compaines that provide shuttle services for a fee.

 

[Another Voice]

The real difference between Magic Express and a regular hotel shuttle is the size - the average airport Hilton doesn't have the same impact on the passenger flow as Disney has in Orlando.

Orlando developed a rather large industry around shuttling tourists to and fro. In the past Disney had been wary about upsetting local small businesses and Disney was also very wary about getting involved in anything outside of its property's boundaries. It was a gentlemen’s agreement – Disney would not interfere in Orlando if Orlando would not interfere with what Disney did on its property. So, naturally, other companies stepped into to fill the vacuum for customer services.

But Disney changed and money became more important than relations with the locals. Orlando is now getting use to the 800 pound gorilla wandering out of his cage and a lot of people aren’t happy. There’s nothing they can do about it, but they are upset nonetheless.

Of course things could have been really different. For a long time Disney backed a high-speed rail connection between Orlando International Airport and WDW. Each time the plans fell apart when Disney blocked plans for stops on International Drive and the Orange County Convention Center.

And the original EPCOT plans called for an “executive jetport” for the southern portion of the property. Disney seriously considered this plan again in the 1990’s as part of the Celebration development. Of course, Disney sold the southern 1/3 of what was WDW and that’s no longer an option.

 

[MassJester]

I can't imagine why Disney wouldn't want to control this. For pure operational reasons, the more they can control and predict the flow of vehicles in and out of the resorts (and perhaps even reduce the overall number by moving people in bulk), the better.

 

[Mouseaholic!!!]

I can't imagine why Disney wouldn't want to control this. For pure operational reasons, the more they can control and predict the flow of vehicles in and out of the resorts (and perhaps even reduce the overall number by moving people in bulk), the better.

One word ----

Outsourcing.....no costs for benefits - sick leave, medical benefits, vacation....etc.

Ask the Hotel Valets and Maids.....the staff who clean the parks.


Disney LOVES to contract these services out to someone else who will have to cover these expenses for their employees....and the power of the Disney name means they can negotiate far lower prices.

Mears has always contracted for the bus systems throughout WDW and for the Cruiseline...look at the 'fine print' on the back of all the bus' there.

 

[Another Voice]

Under Dick Nunis there was a very strict policy about "the border". Anything that Disney did on its property (and the Reedy Creek Improvement District) was Disney's business; anything that happened "off-property" was Florida's business. Back in these days even local law enforcement and the highway patrol wasn't even allowed on WDW property (which, as it turned out, was a great way of avoiding speeding tickets).

The reason for this, Disney beleived, was to protect the company. Disney was really cocooned by the RCID and they enjoyed that protection. The moment the company crossed the boundry, they were subject to everything. The "old" thinking was that Disney had to control all aspects of anything it put its name on in order to maintain quality and the company's reputation (how that has changed).

The last real serious mass transport proposal had the state of Florida building a high-speed rail link between Orlando and Tampa. The one stop on the route would have been a large Transportation Center at EPCOT Center. Guests would have transferred between the high speed train to WDW Monorails, WDW light rail or onto busses for other tourist spots nearby. This plan was held up and eventually fell apart over requests/desires/demands to add another stop at the Convention Center to service International Drive.

 

[MassJester]

One word ----

Outsourcing.....no costs for benefits - sick leave, medical benefits, vacation....etc.

Ask the Hotel Valets and Maids.....the staff who clean the parks.


Disney LOVES to contract these services out to someone else who will have to cover these expenses for their employees....and the power of the Disney name means they can negotiate far lower prices.

Mears has always contracted for the bus systems throughout WDW and for the Cruiseline...look at the 'fine print' on the back of all the bus' there.

Whether the act of carrying is outsourced or not, the control still exists, and is still an operational advantage.

 

[Lancer]

If the National Limousine Association thinks that they will get my business if they force the demise of a "free" Magical Express service, they are sadly mistaken. I would rather pay Disney for the service or use another transportation service that does not have a part in this possible lawsuit. They are basically telling me in a roundabout way "we want your vacation to cost you more". People still have the choice of using them or anyone else if they want. Who guaranteed them that they should be in business anyway. If it doesnt make business sense, either get out or find a different demographic.

 

[PinCrazed]

The magical express is a great service and it would be a shame for it to go away. I wish the internal transportation at WDW would improve.

 

[Mouseaholic!!!]

Happily - I send my thanks to Holiday Inn each time I visit WDW. With the points from my hotel stays (for business), I take advantage of free car rentals with Hertz.

We are free of the restrictions of the bus system at WDW - no lines at the Hertz Gold counter....quick stop at the grocery store on the way in....and we are smiling on property wonderfully fast on arrival day! We are no longer commado's at WDW and enjoy a more comfortable pace.

I realize not everyone has this advantage - but for us, the bus service has become at times unbearable - and it's now just a quick drive - playing our Disney Music on the Stereo - and we are there!


I'm glad people can take advantage of the free transfers from the airport if they choose --- and the free (and often crowded) bus system within WDW --- we will happily be two people who will not be crowding your bus lines!

We work very hard to eliminate the cattle calls and crowds on our Disney Vacations - and avoiding the bus system works well for us.

Just our own personal preference with no judgement toward anyone else here.


My personal comments asside - Disney has always been the "King of the World" inside the WDW borders (which works very well for them) but they rub many in the Orlando area the wrong way when they play the 800 pound gorilla outside. They certainly can be the leaders of the club....the "don't play well with others" club.

Don't get me wrong, we LOVE our visits at WDW - but being married now to a castmember.....I see Disney/Anaheim in an entirely new light - the light of reality.....not always pretty. In many ways it was better when I didn't know the details.......

 

[jimmymac]

Call me a cynic, but I think the real reason for DME is control of our hard-earned dollars. Every person who uses DME will probably spend every single vacation dime at WDW. No rental car = no excursions off Disney property; no Seaworld, US / IOA, Busch Gardens. No grocery stops; every food $ will go to the Disney coffers. Does anyone really think Disney set up DME out of the benovelence of its corporate heart or lost a minute of collective sleep over the hundreds of people who lost their jobs?

 

[Stitch 03]

The real difference between Magic Express and a regular hotel shuttle is the size - the average airport Hilton doesn't have the same impact on the passenger flow as Disney has in Orlando.

Size is irrelevent. It is extremely unfair to say that fair business practices should be determined by the size of the economic entity.

If it is determined unfair for Disney to continue this practice then it is only fair that all similar services, regardless of size, face the same restriction. To not be consistent is to discriminate.But then in North America we love to tear down those with great success.

I cannot belive that anyone, if running there own business, would allow certain business practices to be restricted based solely on how large they are.

 

[Stitch 03]

Call me a cynic, but I think the real reason for DME is control of our hard-earned dollars. Every person who uses DME will probably spend every single vacation dime at WDW. No rental car = no excursions off Disney property; no Seaworld, US / IOA, Busch Gardens. No grocery stops; every food $ will go to the Disney coffers. Does anyone really think Disney set up DME out of the benovelence of its corporate heart or lost a minute of collective sleep over the hundreds of people who lost their jobs?

You are not a cynic - you are a realist.

 

[Mouseaholic!!!]

Sadly, I agree -- Jimmymac speaks the truth.

It's probably a good thing to keep Disney/Anaheim in perspective.

We can still go -

we can still LOVE to go -

we can still LOVE the pixie dust we all find there

we can still LOVE all things Disney

....but we should also keep a handle on the reality of the place. It's a business boys and girls. And Disney/Anaheim is now in the business of separating us from as much of our $$$ as possible ... and making sure we don't notice.

 

[crunchymomma]

I totally agree with Jimmymac. The paper says that the shuttle service isn't free. While it may not be free to Disney, they are going to keep your vacation price the same whether you use it or not. To me, that's free shuttle service.

I used to drive to Disney, before my second child was born. I also stayed off site because of the cost! For me, it's just easier to "know" that all of my fees and charges are included and that I can hop on a bus at the airport. No car seat to strap in, no getting lost, etc.

Just my 2 cents

 

[Another Voice]

I cannot belive that anyone, if running there own business, would allow certain business practices to be restricted based solely on how large they are.

Oh - you mean like anti-trust laws?

Sorry, but there are mountains of laws that do exactly that - keep larger businesses from destroying smaller ones. Just about every merger that takes places has to be reveiwed.

Not only that - but in the thirty plus years since WDW was open (or even in the fifty plus years Disneyland has been opened), there was nothing that prevented Disney from starting up a service just like this. They did not because they wanted to maintain a "friendly neighbor" relationship with other Orlando businesses, and they also wante to make sure there was a clear line between "Disney" and "not Disney". The Company figured it was in its long term interest to stick to what it did well and let others do what they do well.

The Company doesn't believe in that any more. It's wants your money, and Disney really doesn't care about how they go about getting it.

Besides, getting from the airport to WDW has never been a problem. But try getting from one resort to another before the parks open! I'd much rather Disney spent all the money they are throwing at Mears and improve the horrid cattle cars that stink up WDW instead.

 

[Stitch 03]

Oh - you mean like anti-trust laws?

Sorry, but there are mountains of laws that do exactly that - keep larger businesses from destroying smaller ones. Just about every merger that takes places has to be reveiwed.

Not only that - but in the thirty plus years since WDW was open (or even in the fifty plus years Disneyland has been opened), there was nothing that prevented Disney from starting up a service just like this. They did not because they wanted to maintain a "friendly neighbor" relationship with other Orlando businesses, and they also wante to make sure there was a clear line between "Disney" and "not Disney". The Company figured it was in its long term interest to stick to what it did well and let others do what they do well.

The Company doesn't believe in that any more. It's wants your money, and Disney really doesn't care about how they go about getting it.

Besides, getting from the airport to WDW has never been a problem. But try getting from one resort to another before the parks open! I'd much rather Disney spent all the money they are throwing at Mears and improve the horrid cattle cars that stink up WDW instead.

So then why is everyone complaining? Just file an anti-trust suit and the courts will make their ruling - problem solved.

Unless of course Disney is not breaking any anti-trust laws.

The article does mention the possibility of filing suit, but even the party considering it admits that the odds are not good.