Disneys new seasons are a bit much!!!!

[lark]

I think Disney is looking for ways to make up for 4/3 rates, free dining, and all the other discounts. I can't imagine free dining makes Disney any money....so...this is what comes next

I actually would be interested to know whether free dining makes disney money. I bet it does. I think free dining is perhaps a response to excellent websites like this one and mousesavers, which have really spread the knowledge about codes and discount. I suspect that disney has seen the percentage of those who pay rack rates decrease year by year in the internet era.

"Free" dining is actually a really good way for disney to change the nature of discounts in their favor. This is because while free dining may "save" a family of four staying at a deluxe $100, it certainly does not "cost" disney nearly that much.

Disney would much rather give you $100 dining credit than give you a $100 discount on a room, because food is a relatively lower overhead item. If they knew for a certainty that everyone who gets the dining plan would eat and pay the same amount for the food, it would break even. But of course people wouldn't. They are basically trading services that they provide anyway in restaurants that they have already built for cash.

Just to take an example, with a code discount at AKL this fall, you can save $94 per night off rack rates. If you want the "free" dining, you need to pay rack, plus buy a ticket. Disney will trade $100 in free food credit for $94 cash any day, because the credit does not cost them close to $100. The value resorts do not come out quite the same for disney -- basically you pay an extra $35 in rack rates to get the $77 worth of free dining. Even that's probably a money maker for disney, and when you factor in that there are families of 3 who do free dining and lots of people who throw the one-day passes in their desk drawers for significant periods of time, I think free dining works out ok for disney.

Sorry, long winded post and a bit of a thread hijack. I'm not suggesting that dining is not a great deal. It's actually a win-win. I was just sort of ruminating about whether "free" dining actually loses disney money.

 

[disneydreamingdebby]

I think that many people plan vacations through Disney and aren't aware of the discounts. I think even if they hear about a discount they aren't aware that they can call and have it applied...I know others don't research at all, so how would they know...

I am glad some pay rack rates; it allows me to take advantage to specials offered!

 

[rt2dz]

I think Disney is looking for ways to make up for 4/3 rates, free dining, and all the other discounts. I can't imagine free dining makes Disney any money....so...this is what comes next

Oh, I'm guess free dining makes Disney quite a bit of money. I can't remember where I read it (touringplans.com, all ears, mousesavers...?), but I do remember reading that the vast majority of people do not use all their dining credits. Just think how many people on here talk about their extra/left-over snack credits.

I also know that if you don't use the dining plan to its absolute max, you are hardly saving anything. A lot of people, even if they use all their credits, don't use their credits to their maximum value. Not everyone wants to eat the most expensive thing on the menu. That "save up to 30%" is if you did that at every meal. Heck, some of those 10yo are turning in adult credits for a kids meal, and parents don't care because in their heads it's "free". That's saving money right there.

Then, you also get people into TS restaurants who won't normally do so. You have to pay for those under 3 children out of pocket, if they won't eat off someone's plate. I know more picky toddlers, who won't eat what mom and/or dad have on their plate, especially if the more expensive items, that who will. And let's say that appetizer just sounds too good to pass up--out of pocket cost. Or maybe you want to try that German beer (or whatever)--out of pocket. And, those on the dining plan are still paying the servers for Disney (tips not included).

Then, to get free dining you have to pay rack rate on your room, instead of taking advantage of that 35-40% off room only code. And, instead of buying your tickets at a discount from some of the many discount ticket brokers, you had to pay full price for them at Disney. And if you had left over tickets, you'll just save those for another trip--upping the chance you'll lose them and have to buy tickets again for the next trip after all.

And, December free dining only gives you QS for a value resort (which is where there was any savings under past free dining offers). So the cost of the dining plan you are saving, which isn't equal to the savings you receive, is lessened. You then have to pay the difference to upgrade to a different dining plan, if that is what you want--again, making Disney even more money because of unused/under-used dining credits.

Disney only offers deals that will make them money. Now the 4/3 deal did net them a low profit margin, but it was still profit. And it had been years (after 9-11) since they offered it the last time. Disney offers free dining pretty regularly.

 

[disneyfantotheend]

Also regarding free dining, when we paid for the DDP, I was careful to go to restaurants that were a little higher priced, like Le Cellier. That way I was sure to get a deal out of it. Now I am hoping for free dining for our next August trip and if I get it, I have a lot of lower priced places figured into my plan, such as the Plaza and lots of buffets for breakfast. I know many will say the food isn't really free, because you are paying rack rate, but that is okay with me. I still consider it a great value even at the cheapest places to eat.