Disney's Price Increases are obscene....

[GadgetRick]

If we want to get into a conversation about sticky prices, managed supply, deflation, etc., and how those things also come into play in all pricing schemes, I'd be happy to partake, but at the end of the day Disney Corp. has smarter people than us studying all these things and so our collective opinions is not particularly relevant.

While I agree with the first part of this, you're contradicting what you're saying with the last part. Our opinions absolutely ARE relevant. If enough people have the opinion it's too expensive--and stop spending--they will listen and do something to stimulate people to come and spend money again. Part of that may be either lowering prices for certain things of not raising them (again).

If everyone just sits there and takes it while continuing to spend money with Disney, well, as you've said, there is no motivation for them to do anything other than continue raising prices.

The consumer (ultimately) determines the price.

 

[WDSearcher]

You are part right searcher. Disney is in the process of making a disney vacation a luxury item(a high end one). Also the pennies you speak of in commodities sure make a difference in the bottom line at disney. How much less of an operating cost will it be for disney transportation if gas costs 25% less. How about if food corrects down. Massive savings again. I'm sure this is highly important to this luxury corporation!

If Disney's supply prices go down, they can lower prices for guests, or they can pass that savings onto their stockholders in dividends, or they can put that money towards future expansion or upgrades or ... because "Disney" is not just "Disney World" ... they can help pay for the failure of John Carter or the development of a new animated series for Disney Jr or any number of things across a broad spectrum of products.

So no ... a "massive savings" in one area of the parks doesn't necessarily mean that the guest will see it in immediate savings. But it may pop up somewhere else that will affect the Disney consumer in another way.

 

[flicx]

Hey, here's the debate about sticky pricing, supply management and deflation all rolled into one! Great job!

Thing is I don't have a PHD in economics but, I do understand alot about them!

 

[brunette8706]

HEllo DISers!

I have come to the conclusion that Disney is more in tune with PROFIT than anything else. It used to be every 10 years they would build a new park. But they haven't done that since 1998 with AK. Yes, they are building a new fantasyland but big deal. It will be nice but it's not like a brand new park. With that said here are my concerns:

- Monorail breaking down
- Monorail early closing (because of maintenance?) lol!
- Yetti Not Replaced
- Painting of buildings (ie. Mexico and pavilian next to Mexico)
- Soarin film is attrocious
- Captain EO is sub for Honey I Shrunk the Kids (waste of a attraction)
- AC is on very low in ALL the building and restaurants
- Food quality has diminished greatly
- High quality food items taken off menu's
- Buffetts have risen over 30 percent in the past 6 years
- Several resorts are in dire need of repair
- Several rest rooms throughout the parks are in deparate need of clean up!

These are just a few examples of the issues that Disney is now encountering. It's very sad!

Brunette

 

[GadgetRick]

And, as usual, you have a reason why every Disney decision you don't like is bad.

I don't consider a business raising prices in a marketplace where the rest of the competition is doing the same thing to be a "bad thing". I consider that to be a typical business move. And if I don't like it, I don't have to pay for that product. The ultimate choice is mine to make.

Disney is marketed to a broad spectrum, and people of all income levels can and do visit the parks. But a Disney vacation is still a luxury. It's not something that people HAVE to have. It's something people CHOOSE to have. And as long as enough people choose to pay the prices and as long as the parks and resorts are full, then Disney is making the right call.

It's not about having an excuse. It's about understanding that Disney is a business.

Hmm, I don't say everything Disney does is bad. However, whenever someone complains about Disney--or something they've done--it's only a matter of time before you come in to make excuses (like this).

ALL vacations are luxuries (by definition). However, a Disney vacation is marketed as an affordable vacation (watch any of their commercials ever?).

I fully understand how Disney operates as a business. I don't think anyone here is naive enough to believe Disney does it because they want us to be happy. However, again, raising prices like they have in recent years has out-paced anything they've done in the past while the attendance is (fairly) stable all while they've cut TONS of costs by cutting back on services, maintenance, staff, etc. If you think that's a good way of doing business (in the long run) then you need to go back to school.

Short term, they're happy--they're more profitable. Long run, things may be different (or not). However, if people don't complain and/or stop spending money there, they will continue on with raising prices. Whether you agree with the price increases or not, it's hard to understand why you think they'd be a good thing for anyone other than Disney stockholders.

 

[GadgetRick]

Believe it or not GadgetRick, but it's $2.98 in Roanoke, VA now. We usually have higher gas in NC because of taxes, but we get "cheap gas" in SC on our way to see Mickey, and it will be near $3.00 here soon!!! You may be quoting average, but who pays average? We never do! No matter where we travel, we never pay what they consider the "average" price. There's always some places that charge "an arm & leg" for people stupid enough to pay it, and that causes the "average price" to be higher.

I'm with you but, those places charing MORE for people stupid enough to pay it are all factored in with the average price. Most places don't charge an arm and a leg.

As I said, I don't know the actual prices anywhere other than here in FL and Southeastern GA because I live down here. Everything else is from someone else or from hard numbers from that site I posted. You might find a place or two where it's that low but I doubt that's what most places are charging.

I hope we get there (and lower) but I just don't see it.

 

[flicx]

HEllo DISers!

I have come to the conclusion that Disney is more in tune with PROFIT than anything else. It used to be every 10 years they would build a new park. But they haven't done that since 1998 with AK. Yes, they are building a new fantasyland but big deal. It will be nice but it's not like a brand new park. With that said here are my concerns:

- Monorail breaking down
- Monorail early closing (because of maintenance?) lol!
- Yetti Not Replaced
- Painting of buildings (ie. Mexico and pavilian next to Mexico)
- Soarin film is attrocious
- Captain EO is sub for Honey I Shrunk the Kids (waste of a attraction)
- AC is on very low in ALL the building and restaurants
- Food quality has diminished greatly
- High quality food items taken off menu's
- Buffetts have risen over 30 percent in the past 6 years
- Several resorts are in dire need of repair
- Several rest rooms throughout the parks are in deparate need of clean up!

These are just a few examples of the issues that Disney is now encountering. It's very sad!

Brunette

As always brunette very nice to hear from you! Must say I agree! Spot on as always. Combine this with obscene prices,and some may say things are" Going Downhill".

 

[brunette8706]

As always brunette very nice to hear from you! Must say I agree! Spot on as always. Combine this with obscene prices,and some may say things are" Going Downhill".

Hi Ya FLIX!!!

Long time no see! Hope you're doing GREAT! Happy Summer!

Brunette

 

[North of Mouse]

I'm with you but, those places charing MORE for people stupid enough to pay it are all factored in with the average price. Most places don't charge an arm and a leg.

As I said, I don't know the actual prices anywhere other than here in FL and Southeastern GA because I live down here. Everything else is from someone else or from hard numbers from that site I posted. You might find a place or two where it's that low but I doubt that's what most places are charging.

I hope we get there (and lower) but I just don't see it.

It's actually $2.89 at Sam's in Florence, SC. And yes, it's true the ones that charge so much are factored in to make the "average" price. That's the point I was making - doesn't reflect much on what we (the average joe here) are paying. You're right, it's very expensive in FL. We sure didn't fill up there We have a gas, class A MH, that holds at least 75gal. so .25 or more a gal. less makes a huge difference Oh, well, again, we'll go to Disney, no matter what the price increases are, until we can no longer afford to go, then we'll stop, not before. We do go other places too, the Smoky Mtns. are not that expensive for us to go to, and some other places also. Just hope the gas prices hover at least around $3.00 and not higher (yeah, right)

 

[goofy4tink]

:::sigh:::

Thank you for the lesson in economics...

Yeah, I get that, however, when a company does something people don't like--and they complain or stop spending money with the company--a company (often times) listens. So, if enough people complain and/or (Gasp!) stop spending money on Disney, they will listen...

And if, and when, that happens, Disney will again, offer discounted resort rooms, and/or free dining. They never lower park pass costs. BUT...I just can't imagine all that many people not going to WDW because of a higher cost for park passes. The vast majority of guests are first timers, or second timers. They have no real basis for comparison. And those of us going more often, probably have APs and many of us stay in DVC resorts. Those with no basis for comparison aren't going to 'not go' because the park passes went up a bit...and yes, in the big picture, it is just a bit from last years prices.

No offense but I find it hard to believe. I am originally from NJ and NJ (typically) has lower prices than most state on the East coast--certainly cheaper than PA--and my in-laws just drove down and back. They're not paying anything NEAR $3 a gallon.

Here in FL, prices are usually close to the NJ prices (slightly higher) and I'm paying $3.22 at BJ's (cheapest gas in town).

VA also (typically) has higher prices then other states on the East Coast.

I've not seen prices like that in GA (about 30 minutes South of GA)--at least in Southeastern GA.

Sorry to call you on it but I just don't believe it. I can't really question the price in PA if you've seen it but I'd have to actually see that to believe it. PA was always 15-20 cents higher than NJ. Used to joke about it because you've got to pump your own gas there and in NJ you can't.

It's more than off-putting to have someone come along and refuse to believe what someone has stated as truth.
Perhaps someone out there can take a photo of the gas prices that are under $3.00 a gallon and post it.

Except a Disney vacation is clearly not marketed at the higher-end customer, rather, the average Joe like most of us...

As usual, you have an excuse for every bad thing Disney does....

Not really. See the thing is...many of us here understand why Disney does what they do. And there are plenty of things that I think should be changed. BUT...no way is Disney going to go for a year without raising their prices. Do I like it? No, not especially. But, it won't prevent me from going if that's what I want to do.

Buddy, you're arguing with somebody who holds, amongst other advanced degrees, a PhD in economics and works in the financial services sector, so I understand how the economy works. You are mixing your opinions into facts, and they are bringing you to an understandable but ultimately false and unsustainable conclusion.

Demand is not down (basis points are not particularly relevant at the scale we are talking), supply is steady, there is no comparable competitor to undercut their pricing structure, so their prices have upward capacity if the corporate leadership of Disney Corp. choose to utilize it (and whether they have a fiduciary duty to do so is an argument for another day). The economy is not controlling at the micro-level; certain segments are thriving and seeing increasing demand and so their prices are increasing. This includes the energy sector (increasing demand in China, India and Brazil), certain segments of the technology sector, and, evidently, WDW theme parks. I understand that it doesn't make you happy, but you and I cannot overcome the macro- and micro-economic principles at play, we can only make personal choices to increase or lessen demand for their products and hope the rest of the world follows accordingly.

If we want to get into a conversation about sticky prices, managed supply, deflation, etc., and how those things also come into play in all pricing schemes, I'd be happy to partake, but at the end of the day Disney Corp. has smarter people than us studying all these things and so our collective opinions is not particularly relevant.

Believe me...he doesn't want to see logic or common sense. Doesn't fit what he needs to think.


Here's the thing. Yes, Disney costs a ton of money. But, it's a destination spot. Some people are not going to be able to afford to go there. Oh well. That's life. I can't afford to vacation in the Caribbean...do you see anyone dropping their prices so I can??? Didn't think so.
Yes, the food offerings have gone downhill...especially since the dining plan came out. They put the dining plan into effect, got guests used to having it. Then, they raised the price, and took away the gratuity and the appetizer. And, it's been going up in price every year!!! So, I don't buy it. And, I find myself eating in fewer and fewer restaurants onsite nowadays. Instead of eating at least one sit down meal a day, it's more like 3 or 4 over a week stay. I eat in my room more often.
Nope, things aren't perfect. But, it's up to each family to decide if they can afford to go to WDW. Disney has plenty of people heading there...they don't really care if 500 families decide not to go for a few years. And yes, I pulled that number at random.

 

[hollygolitely93]

what color is the sky in your world?

Low prices help McDonald's beat profit expectations

http://www.reuters.com/article/2011/07/22/us-mcdonalds-idUSTRE76L28Y20110722

Despite Rising Costs, Burger King Adds to Value Menu
"Unlike our competitors, Burger King Corp. is helping cash-strapped customers by adding to our BK Value Menu, not cutting back," said Russ Klein, Burger King's president-global strategy

http://adage.com/article/news/rising-costs-burger-king-adds-menu/130575/
!

Sam's Club New Lower Prices

http://www.samsclub.com/sams/shop/category.jsp?categoryId=3090101

The Home Depot Guaranteed Low Price
We've lowered prices on over a thousand items storewide.
Look for the "New Lower Price" icon.

http://www.homedepot.com/webapp/catalog/servlet/ContentView?pn=PM_New_Lower_Price


Wal-Mart sharpens low-price focus

http://www.reuters.com/article/2011/04/11/us-walmart-idUSTRE73A3E520110411

J.C. Penney slashing prices on all merchandise

http://www.usatoday.com/money/industries/retail/story/2012-01-25/penneys-price-overhaul/52787388/1

Sears - Retail Competitors - Stores
If you find a lower price on an identical brand and model number currently available for sale at another local competitor's retail store, Sears will match that price and give you 10% of the difference.

http://www.sears.com/cspricematch/nb-100000000022522

LOWES - New Lower Price is just part of our ongoing commitment to give you even greater savings by lowering our Everyday Low Prices whenever we can.

http://www.lowes.com/cd_Everyday+Low+Prices_787241445_

Staples price–match guarantee.
How does Staples’ price–match guarantee work?
If you find a lower price on a new identical item, just show us the lower price when you buy the item at Staples and we will match the price

http://www.staples.com/sbd/content/help/using/general_match.html

The difference is these companies are all based on budget pricing...it is part of their business model. Disney is not built on a value proposition tied to pricing but tied to experience.

The bottom-line is a company will make a profit two ways...net operating costs and revenue (well, and international currency conversions, but I digress).

Disney Parks are a luxury. It seems to me they saw attendance drop in 2010...recessin...but must have studied their customer to access that they could raise prices to offset attendance. I imagine their international emerging market traveller, affluent visitor, and middle class visitor not affected by economy still booked at higher cost. Then to increase attendance they offered more value-conscious options...free dining, a new value resort, room rate promotions, etc. it clearly worked as their attendance is up as is their profit.

At same time they played with their pricing/promotion strategy to drive attendance they played with their net operating costs to drive more profit to offset parts of their business that were hurting...merchandise...film, etc. Hence the complaints seeing the decrease in service...

Any company that raises prices knows and does marketing research to find the magic spot where they can increase revenue without sacrificing too many customers.

I am now interested in how they will continue their value proposition in the future to justify their prices. Clearly their expansions are a key part of their strategy and service through technology in the future (Xpass).

Part of their success is the sensory experience they create...will they maintain that...I hope so

 

[Ramsfan28]

Here's the thing. Yes, Disney costs a ton of money. But, it's a destination spot. Some people are not going to be able to afford to go there. Oh well. That's life. I can't afford to vacation in the Caribbean...do you see anyone dropping their prices so I can??? Didn't think so.
Yes, the food offerings have gone downhill...especially since the dining plan came out. They put the dining plan into effect, got guests used to having it. Then, they raised the price, and took away the gratuity and the appetizer. And, it's been going up in price every year!!! So, I don't buy it. And, I find myself eating in fewer and fewer restaurants onsite nowadays. Instead of eating at least one sit down meal a day, it's more like 3 or 4 over a week stay. I eat in my room more often.
Nope, things aren't perfect. But, it's up to each family to decide if they can afford to go to WDW. Disney has plenty of people heading there...they don't really care if 500 families decide not to go for a few years. And yes, I pulled that number at random.

Totally agree!!

Disney has no incentive to adjust their prices right now, and for every one family that decides that Disney isn't worth the cost anymore, there is at least one family there to take their place that is new to Disney.

Disney is a luxury item, a destination and an optional activity.

 

[hellerjw]

I paid $3.18 last night at the Hess across from DTD.

I just paid $2.85/gallon less than an hour ago in upstate SC. SC has the lowest gasoline tax of any state in the south so you will usually find the best deal there while on your way down to see the Mouse.

 

[Ramsfan28]

I just paid $2.85/gallon less than an hour ago in upstate SC. SC has the lowest gasoline tax of any state in the south so you will usually find the best deal there while on your way down to see the Mouse.

Sad, that we have to celebrate $2.85/gallon for gas. Wake me up when it is back under $2.00/gallon and stays there.

 

[DisLee]

Believe me...he doesn't want to see logic or common sense. Doesn't fit what he needs to think.

Really?

 

[missesdisney]

I haven't read the whole thread but I agree that this last increase was really high. We are DVC so we get a discount on our APs and my son is over 10 now so it was an adult rate for us anyway. But it seems like it went through the roof since I bought the last ones 18 mos ago (we do them every other year and get two trips out of them in the same 12 months).

I do believe my DVC discount went up some to offset the price increase a little (this could have happened last year).

I do like that the APs now come with merchandise discounts which makes a bit of a difference.

I personally don't believe that Disney is trying to stop certain groups that we see doing things they may not like. They get their money one way or the ohter. The photopass shares - most of the people doing those wouldn't do the CD so they are getting money they wouldn't otherwise. Child AP to get discounts....it's marginal as long as the child is the one with the tickets. They are not losing money on these things and I don't think anyone is trying to analyze how many photopass shares are out there or APs for kids where no adult AP is on the same purchase. No way to know the last one anyway if they are not purchased all at once (I don't buy all at once).

Universal went through the roof when HP opened, however. We had 99 power passes for YEARS and now it's over 200 each for annuals. And the service off season when we go at Universal is AWFUL. Can't get lunch at 11:30 because the counter services opened at 12:30. Nary a soda cart on the street before noon. I love HP and am sad that we won't do it this year but if I'm paying $1300 for 3 Disney annual passes (with DVC discount) I will get over 20 days in Disney parks for that over two trips (I am not local). For more than half that price at Universal, I go for two days. Not worth it to me.

Disney will continue to do what we pay for. And I for one will keep paying for the annual passes, even if they are insane, because this is our annual trip and we love it and it's worth it to us. Not for everyone.

I would really like to see a pass that is good for 12 days that isn't annual for my poor FIL who goes with us but an annual is so much more for him!

 

[missesdisney]

No offense but I find it hard to believe. I am originally from NJ and NJ (typically) has lower prices than most state on the East coast--certainly cheaper than PA--and my in-laws just drove down and back. They're not paying anything NEAR $3 a gallon.

Here in FL, prices are usually close to the NJ prices (slightly higher) and I'm paying $3.22 at BJ's (cheapest gas in town).

VA also (typically) has higher prices then other states on the East Coast.

I've not seen prices like that in GA (about 30 minutes South of GA)--at least in Southeastern GA.

Sorry to call you on it but I just don't believe it. I can't really question the price in PA if you've seen it but I'd have to actually see that to believe it. PA was always 15-20 cents higher than NJ. Used to joke about it because you've got to pump your own gas there and in NJ you can't.

Haven't read all the gas posts either but I am in South Jersey and gas today is about $3.18. It's been steadily going down the past few days.

 

[phyllis1966]

I just filled up at the station that has the best prices near me in Middlesex County, and I paid $3.03 for regular - woohoo! The line for gas was all the way out onto the shoulder for a couple hundred feet...

 

[WDSearcher]

Hmm, I don't say everything Disney does is bad.

Hmm, I didn't say that you thought "everything Disney does is bad". I said "you have a reason why every Disney decision you don't like is bad".

However, whenever someone complains about Disney--or something they've done--it's only a matter of time before you come in to make excuses (like this).

But if it also happens to be the way I feel about it, aren't my comments just as valid as yours? I have to believe that the reason most people complain on a message board in the first place is to start a dialogue. They may be looking for people to agree with them and make them feel better, or they may be picking a fight. But if they're going to put it out there, they have to expect that other people are going to comment.

I've never understood why someone would post how angry they are about something and then follow it with, "I guess I'll just take my business to Universal!", if they weren't hoping someone would give them a reason not to. If they're not looking for someone to banter with, why post at all? Just take your business to Universal and have a great time. Why the need to tell everyone? If it's just to vent or rant, okay. But again ... when you do that publicly, you have to expect that there are going to be people who don't agree with you.

If it will make you feel better, I'd be happy to list some things I think Disney is doing wrong. Among them: empty pavilions at Epcot; the extreme need for rehab at COP, Country Bears and GMR; the need for much more entertainment on the street at Epcot; and dirty and peeling road signage all through the resort. HOWEVER, while I see these as things that need to be fixed, they do not make me rethink my enjoyment of or loyalty to the brand. And I also understand that everything -- from signage repainting to new Epcot pavilions -- is on a schedule. Sure, it'd be great if they could fix everything every year like they used to when it was only MK and Epcot, but I understand how that's not as simple when there are more moving parts to the machine than there used to be.

I look at the price increase as an inevitable thing. As you yourself said, "we know they're going to happen". If we know this, and can predict it, then why does it make people so angry every year?

ALL vacations are luxuries (by definition). However, a Disney vacation is marketed as an affordable vacation (watch any of their commercials ever?).

I do watch their commercials. And I read the DIS and I read the website and I read all the other fan sites and I follow industry news. (I'm not as clueless as you want me to be. ) And because I do all that watching and reading, I am well aware that a Disney vacation can be as economical or expensive as I want it to be. And ... obviously ... what is "affordable" to me is probably different than what is "affordable" to you.

I fully understand how Disney operates as a business. I don't think anyone here is naive enough to believe Disney does it because they want us to be happy. However, again, raising prices like they have in recent years has out-paced anything they've done in the past while the attendance is (fairly) stable all while they've cut TONS of costs by cutting back on services, maintenance, staff, etc. If you think that's a good way of doing business (in the long run) then you need to go back to school.

As you might suspect, I do the "glass half full" thing. I have not been affected nearly as much by what has been cut back as I have been delighted by the things that have been added. So for me, the value and the magic are still there. I'm okay with the balance of "new" to "old". You're clearly not. It doesn't make me right or you wrong. It doesn't mean you "get it" and I "need to go back to school". We have different expectations. Mine are being met. Yours aren't. Honestly -- if Universal was charging $65 a day and Disney was at $90, it'd be a totally different story and I'd be calling foul.

Short term, they're happy--they're more profitable. Long run, things may be different (or not). However, if people don't complain and/or stop spending money there, they will continue on with raising prices. Whether you agree with the price increases or not, it's hard to understand why you think they'd be a good thing for anyone other than Disney stockholders.

I don't go running out into the streets dancing when Disney announces a price hike. I said that the prices were reasonable and fair when compared to the rest of the industry. That's my opinion. I didn't say it had to be your opinion too. But just because it's different from yours or the OP's doesn't mean I'm automatically wrong.

 

[GadgetRick]

And if, and when, that happens, Disney will again, offer discounted resort rooms, and/or free dining. They never lower park pass costs. BUT...I just can't imagine all that many people not going to WDW because of a higher cost for park passes. The vast majority of guests are first timers, or second timers. They have no real basis for comparison. And those of us going more often, probably have APs and many of us stay in DVC resorts. Those with no basis for comparison aren't going to 'not go' because the park passes went up a bit...and yes, in the big picture, it is just a bit from last years prices.

I've said it before, everyone has their breaking point.

It's more than off-putting to have someone come along and refuse to believe what someone has stated as truth.
Perhaps someone out there can take a photo of the gas prices that are under $3.00 a gallon and post it.

The original statement was something along the lines of gas is below $3 in a lot of places. This just isn't true. If it is near you, that's awesome.

Not really. See the thing is...many of us here understand why Disney does what they do. And there are plenty of things that I think should be changed. BUT...no way is Disney going to go for a year without raising their prices. Do I like it? No, not especially. But, it won't prevent me from going if that's what I want to do.

Why will Disney not go a year without raising prices? I believe they used to. The attitude that Disney does things for a good reason so I'll just take it is part of the problem. If more people complained, they'd think twice.

Here's the thing. Yes, Disney costs a ton of money. But, it's a destination spot. Some people are not going to be able to afford to go there. Oh well. That's life. I can't afford to vacation in the Caribbean...do you see anyone dropping their prices so I can??? Didn't think so.
Yes, the food offerings have gone downhill...especially since the dining plan came out. They put the dining plan into effect, got guests used to having it. Then, they raised the price, and took away the gratuity and the appetizer. And, it's been going up in price every year!!! So, I don't buy it. And, I find myself eating in fewer and fewer restaurants onsite nowadays. Instead of eating at least one sit down meal a day, it's more like 3 or 4 over a week stay. I eat in my room more often.
Nope, things aren't perfect. But, it's up to each family to decide if they can afford to go to WDW. Disney has plenty of people heading there...they don't really care if 500 families decide not to go for a few years. And yes, I pulled that number at random.

Newsflash...EVERY vacation spot is a destination spot. Disney is not unique in that regard. How they are unique is they suck you into spending all (or most) of your time on their property spending money on them. Great idea.

And yes, I do see places lowering prices in various places so people like you and I can afford it. Watch commercials about vacation spots...