"Greedflation" at Disney?

[wkrainey]

Hotels (whether its Green Bay for a Packers game or Plymouth for Road America or Sheboygan for a golf major) require multiple day minimum stays because then they make guests pay super high rates for longer periods of time. The hotels got'cha, they know it, I know it, you know it, and fans either pay it or aren't going.

It's like buying a single beer at the PGA Championship. $18 for one Michelob Ultra. What are the patrons going to do? You can't BYOB. You don't have options but one vendor: the PGA. The PGA's got'cha, they know it, I know it, you know it, and a patron must pay $18 or you're not getting a single beer. Justin Thomas who is a multi-millionaire professional golfer was left scratching his head how charging $18 for a single beer is treating the fans well? Is the PGA not going to make a profit off a $12 can of beer?

Well...JT knows the PGA is screwing fans over, I know it, you know it, and what's going to change? Nothing.

It's greed. It's the human condition. And you don't have to give some long justification for what is a very simple answer.

The vendors are paying a contract to be exclusive to the event. To make that profit back they have to either increase prices. Competition among vendors drives up the price the contract is sold for, to the benefit of the event location, those who suffer are the audience who either goes without the product for sale or pays the increased price. That's not greedflation either.

 

[New Mouse]

The vendors are paying a contract to be exclusive to the event. To make that profit back they have to either increase prices. Competition among vendors drives up the price the contract is sold for, to the benefit of the event location, those who suffer are the audience who either goes without the product for sale or pays the increased price. That's not greedflation either.

$18 beers are not needed in any world make a decent profit. At events they do a large volume in a short period which makes up the difference.

Greedflation? Maybe not but just plain greed? Yes.

When the vendor raises the price of the beer $3 to.make up for a $1 increase in product cost, that's greedflation and its happening all over the place.

To top it off, millionaires don't need to be milking the average Joe's to keep making millions.

Gas stations have been using greedflation to rake in record profits and have done this for Many periods over the years

 

[SteveAZee]

I guess I would throw one other thing related to Greedflation as it relates to Disney and most other businesses. COVID. For landlords, it was a wake-up call when they couldn't evict people not able to pay. For Disney, it was a wake-up call that nearly their entire business model depended on crowded parks or movie theaters. A lot of businesses lost a lot of money during the shutdown. Perhaps, just perhaps, a lot of businesses are looking at 'making hay while the sun shines', stuck somewhere in the window between COVID and a recession. It may be greed, or it may be running scared and trying to stockpile enough cash to weather the next crisis.

 

[Disney Bobby]

Let's go to a society with no corporate handouts and no tax breaks for anyone and let the market set the rates for everything.

Once we do that, I'm on board with your plan, but until then the "market" is artificially inflated by numerous factors.

I'll go even further than that. Maybe a society with no handouts, period. Corporate or otherwise. And almost no taxes. Just the bare minimum to maintain what government was commissioned to do per the Constitution. Government has been more disruptive to the market than anything else. Completely on board with that.

 

[Disney Bobby]

So, when demand isn't high and Disney has to offer big discounts to fill the parks, I'm sure everyone complaining about "greedflation" rejects those discounts and willingly pays rack rates.

Right?

 

[New Mouse]

So, when demand isn't high and Disney has to offer big discounts to fill the parks, I'm sure everyone complaining about "greedflation" rejects those discounts and willingly pays rack

So, when demand isn't high and Disney has to offer big discounts to fill the parks, I'm sure everyone complaining about "greedflation" rejects those discounts and willingly pays rack rates.

Right?

Rack rates are artificially inflated numbers by Disney. The heavily discounted rates say 40% gets them in the ballpark of what "regular" price should be based on the hotel and tourism market in the surrounding area.

Just because someone says something costs a million dollars and then offers you a 50% discount doesn't mean you are actually getting a deal.

 

[Disney Bobby]

Rack rates are artificially inflated numbers by Disney. The heavily discounted rates say 40% gets them in the ballpark of what "regular" price should be based on the hotel and tourism market in the surrounding area.

Just because someone says something costs a million dollars and then offers you a 50% discount doesn't mean you are actually getting a deal.

Why would you even want a "deal"? Seems greedy.

 

[gmi3804]

So, when demand isn't high and Disney has to offer big discounts to fill the parks, I'm sure everyone complaining about "greedflation" rejects those discounts and willingly pays rack rates.

Right?

*** does that even mean? They’re still doing what they need to do to make money. The guests are still paying the company's bills and lining their coffers. They’re not losing.

 

[Disney Bobby]

*** does that even mean? They’re still doing what they need to do to make money. The guests are still paying their bills and lining their coffers. They’re not losing.

Not always true. All hotels that a break-even occupancy rate. And the price they get for the room absolutely factors into the ability to break even.

 

[New Mouse]

Not always true. All hotels that a break-even occupancy rate. And the price they get for the room absolutely factors into the ability to break even.

The fact Disney can offer rooms at 40% off and still make a hefty profit says all you need to know about their break even point. Ditto Disney vacation club at the 70% off rack rates they used to advertise.

 

[DL1WDW2]

I have been thinking about that %70 DVC discount savings over the lifetime of a membership And then it was 30% . I don’t think they advertise an actual amount over lifetime anymore…
I think the rich know the true value of money and that’s why it will never be enough .

 

[Disney Bobby]

The fact Disney can offer rooms at 40% off and still make a hefty profit says all you need to know about their break even point. Ditto Disney vacation club at the 70% off rack rates they used to advertise.

Businesses don't exist to break even. Are you willing to put your entire retirement savings into a break even business? Wanna guess what the annual return would be on that?

 

[gmi3804]

Businesses don't exist to break even. Are you willing to put your entire retirement savings into a break even business? Wanna guess what the annual return would be on that?

A discounted Disney stay/package still nets the company plenty of money. And still costs the guest plenty of money. How does it make the guest "greedy"(your word) when they're still paying huge amounts of money, even at discounted rates, to vacation?

 

[New Mouse]

Businesses don't exist to break even. Are you willing to put your entire retirement savings into a break even business? Wanna guess what the annual return would be on that?

The same as a company that goes out of business because they lost touch with the consumer.

Greed makes individual executives rich but often times runs companies into the ground.

 

[gmi3804]

Greed makes individual executives rich but often times runs companies into the ground.

And the executives are usually the last to give up their pay when push comes to shove.

 

[Dcgc28]

The same as a company that goes out of business because they lost touch with the consumer.

Greed makes individual executives rich but often times runs companies into the ground.

This hasn't happened though because Disney is still making money hand over fist.

 

[gmi3804]

This hasn't happened though because Disney is still making money hand over fist.

And continues to do so even when they offer "discounts."

 

[SuzErwin]

Why would you even want a "deal"? Seems greedy.

No, it’s marketing 101.

 

[DL1WDW2]

JFKennedy declined salary when he was President of the United States

Also Walt Disney mortgaged his home and life insurance policies to build his dream …
Am I the only one that wonders what Chapek is doing nowadays…

 

[DLgal]

Am I the only one that wonders what Chapek is doing nowadays…

Probably sipping drinks poolside while his staff waits on him all day in ONE of his mansions.

In America, we reward executive failures with massive golden parachutes.