How long will Magical Express be FREE?

[rsschneck]

Planning on going to WDW in October 2006. We used Magical Express May 2005 and were very happy with the service. Just wondering if Disney has posted an end date to the FREE transportation?

 

[eeyoreiscool]

Rumors have it arond October of next year they will start charging. I haven't seen anything official though or what the prices might be.

 

[bicker]

The only thing official is that it is presented as a benefit of the 50th Anniversary Celebration, so it'll last at least that long.

 

[goofyforlife]

I think they said free DME is 15 or 18 months long .... I know it's still good in May 2006.

 

[Horace Horsecollar]

Here's the official wording from Disney from the original Magical Express FAQ:

Will Disney’s Magical Express continue on a complimentary basis after the “Happiest Celebration On Earth” has concluded?

While no determination has been made, our focus right now is the successful launch of Disney’s Magical Express as a great new benefit for our guests.​

My guess is that Disney's Magical Express will continue to be complimentary.

Disney isn't offering DME on a complimentary basis during the Celebration just to be nice.

The business reasons for Disney's Magical Express are to increase the perceived value of Disney-operated on-site lodging (to increase occupancy and to decrease the need for big discounts) and to discourage guests from having rental cars (which make it easy for guests to spend money off-site). Those business reasons will be just as valid in 2007 and beyond as they are in 2005 and 2006.

Sure, Disney could get some revenue by charging a fee for DME, but it would also discourage guests from using DME. The operating costs for DME would not go down appreciably, but the motorcoaches would have more empty seats, on-site lodging yields would be likely to go down, and more guests would spend money on off-site dining, shopping, and attractions.

Of course, I could be wrong (but in this case, I don't think so).

 

[speedyf]

I would think that they could probably charge a nominal fee...like $5 round trip per person and it would not affect the amount of people that would use the service.

I know that $15 for my family of 3 would still be the cheapest round trip option compared to the old $29 round trip per person on Mears....or renting a car for $30 on arrival, then $30 on departure.

The $5 per person would probably make the service come close to breaking even....

I hope they keep it free...but, I would pay a small fee for the service if it were still the cheapest option for transportation.

Speed

 

[Horace Horsecollar]

The $5 per person would probably make the service come close to breaking even....

I doubt that $5 per person would cover even a fraction of the cost of operating the service. I believe Disney is paying far more than that just for the luggage transfers.

The real question is how much additional indirect revenue and profit does Disney get from guests who use DME — through higher room rates, higher occupancy, and more on-site spending?

 

[Brian Noble]

I think Horace is right. The Accountanteers will have figured out how much marginal revenue ME is bringing in, and decide whether or not that warrants continuing to offer it for "free".

 

[Lewisc]

I read, but I'm not sure if it was just an internet rumor, that Disney extended free DME throught the end of 2006.

I've read that Disney is paying Mears $25/guest for the bus transportion. The going rate for remote lugggage checkin is around $10/bag. Not sure if the luggage transfer from MCO is included in the $25 fee.

If Disney charges enough to cover their costs groups of 3 and 4 will probably go back to towncars and car rentals. The number of customers will go down, passengers will probably have to wait longer for a bus to fill up enough to be dispatched and the service will probably start to resemble the old Mears service.

My guess is Disney will continue to offer DME for free, at least for guests who book a package.

 

[boomhauer]

I've always wondered why Disney didn't offer a transport from the airport to the resort. Honestly, as convenient as the luggage service is, that doesn't matter much to me. Just having the transportation to the resort is enough for me.

In any event, $26 per person was never a major concern.