Iger "no more discounts" Do you think they actually do it?

[Nancy F]

Before that, we went twice a year since 05 and always stayed at the GF concierge level and never once got a pin code. I called and complained and got a call from the Exec. office. I told the gentleman who called that I felt that Disney overlooked me because I was a sure thing. Why offer me a discount if I was willing to pay through the nose to come to Disney World. He assured me that wasn't the case. But I still never got a pin code. But friends that have gone one time and don't intend to go back get codes all the time. So... you tell me if I'm right or wrong? I did get free dining (along with everyone else) but I had to go look for it. It wasn't offered. Now that I belong to the DVC, I guess they won't bother sending me anything anyway.

Nancy

 

[d1gitman]

IMHO i think they will continue discounts, but in a more discreet way. Instead of publicly advertised discounts, I see them utilizing PIN codes. Free DDP has been out there since before the meltdown in our economy, thus my belief discounts will continue in one form or another, maybe just not as public or widespread.

 

[fakereadhed]

If they are going "no discounts" then they better put back some if the stuff they have cut back on and really plus the experience. Then it's ok by me. I am really turned off by some if the cutbacks that are probably the trickle down effects of discounts.

 

[DISNUT21]

I know this is a very hot button topic, but I think what Disney is doing is the best decision to make with regard to their business, and their ability to become more sustainable and non dependent on the discount traveler as they have been.
When looking at it, Disney is currently attempting to wean guests off of discounts, because once the economy comes back at full force (which we are already turning the corner), Disney wants to be there to maximize profits. It will be expected that there will be some discounts; this has always been the case with Disney… Pin Codes have almost always been prevalent as well as the AP and FL Resident Discounts. However, it is a business and that business is to maximize profits. I would also like to add, do not be surprised if you see Disney raise resort prices as well as theme park ticket prices in anticipation of a turn around by 2011/2012. They will not be well received, however, I view this as the nature of the beast, and hopefully we as consumers will reap the benefits of such profits vis-à-vis a more improved guest experience.

 

[Halbleib1]

I know this is a very hot button topic, but I think what Disney is doing is the best decision to make with regard to their business, and their ability to become more sustainable and non dependent on the discount traveler as they have been.
When looking at it, Disney is currently attempting to wean guests off of discounts, because once the economy comes back at full force (which we are already turning the corner), Disney wants to be there to maximize profits. It will be expected that there will be some discounts; this has always been the case with Disney… Pin Codes have almost always been prevalent as well as the AP and FL Resident Discounts. However, it is a business and that business is to maximize profits. I would also like to add, do not be surprised if you see Disney raise resort prices as well as theme park ticket prices in anticipation of a turn around by 2011/2012. They will not be well received, however, I view this as the nature of the beast, and hopefully we as consumers will reap the benefits of such profits vis-à-vis a more improved guest experience.

If we are turning a corner where are all the jobs? Until the jobs come back the economy is not really back either. I do not see us as ever fully coming back. Things might get better and hopefully soon they do but things will never be completely back. Which lets hope that some things do remain gone. Even that is doubtful to happen though. Without some pretty significant changes I think we will find ourselves in an even worst situation in years to come. Hopefully I am wrong and this is not the case though. Only time will tell.

 

[maznorm]

Currently, we visit Orlando for 2 weeks, usually once a year. We live in th UK so a longer stay suits us. We don't very often stay on site because for what you pay at Disney you can get something much better elsewhere. When we do stay on site it is for a short time scale (3-5 days), usually if there is a discount and we tend to stay deluxe. The length of stay is determined by how much we have and how much discount we can get. This also contributes to the room type we choose. However, next year we were thinking that Disney for the full duration (mod or value) looked like it might become affordable. If all of this is true then we will just go back to our regular plans.

Disney does need to ease up on the discounts, but slowly, however I don't think it is time yet. People are only now starting to cautiously spend there money. If they take the discounts away now, people will just look elsewhere for a bargain. Once people try off site, they may never come back!!

 

[drakethib]

Yes, paying over $500 a night for a room that is, let's face it, not exactly the highest level of luxury lodging available out there, is insane.

I don't care how much money one might have, it's the principal of the matter.

Now, Disney will cry, "location, location !", but the fact of the matter is that "location" isn't costing them anything extra... It's their property, for Pete's sake. They are simply inflating the market to more than the "average Joe" can bare.

Walt selected the proximity of the original resorts to insure easy, stress-free access to his park(s), not to gouge the customer within an inch of their pocketbooks.

And now to say that "the consumer insists on looking for discounts"... well, no kidding ! With a week's lodging at a rack rate value of over $3500, before hefty taxes are added, who in "the world" wouldn't be waiting for a discount ?

Totally agree.

I also think that people are going to be less likely to let book the $500 per night rooms giving what the economy just suffered through (and still is IMHO).

Remember the folks who lived through the great depression lived very thrifty after wards.

I think we are going to see this in the future as well.

 

[tmli]

I think it depends on your definition of "no discounts"....taken literally of course it means none, nada, zilch!

Personally I think Disney is trying to go back to the pre "big recession" days of a couple of years ago (maybe 3).

As long as I have been going to Disney there have been discounts of some sort...AAA, AP, sometimes a general public. But they have NEVER been like they have been in the last couple of years. It used to be that if free dining was out, your choice was free dining or nothing. This season...if you don't like free dining what about a 40% off code...don't like that? what about kids stay and play...you have a Disney Visa? what about kids stay, play AND eat free? It is insanity!

In these last couple of years Disney has trained the consumer to play wait and see...don't like this price, wait and see there will be a better one. This new way of booking has meant that most people are now booking within 3 months of travel...something that was unheard of in years past. If you wanted to stay at Disney for Christmas you had better book it by June or it wasn't happening. I heard of situations last year where people booked for Christmas 2 weeks prior AND got first resort choice. Discounts at Christmas were also unheard of...not the last couple of years!

The problem is that any company in the travel industry relies on "futures" or future travel business. Whether it is Disney, airline or travel agency...it is very difficult to look 4 months down the road and see low "futures". You can't predict costs and capacity rates based on people who haven't booked yet. It puts everyone in panic mode...they then start slashing prices and throwing more discounts out.

For the industry to sustain and continue to grow and make money, this trend has to be controlled. There will always be last minute travel, but it used to be a small part of total revenue, now it is the bulk.

I believe the controlling of this trend and going back to the way things were 2-3 years ago is the definition of "no discounts" Bob Iger is referring to. It will mean some revenue loss in the short term, but will create sustainability in the long term.

 

[Hallowishes]

yeah i dont really believe it. even when the economy was good, disney was offering discounts.

 

[dmccarty]

... Now that I belong to the DVC, I guess they won't bother sending me anything anyway.

Nancy

All of our 21st century trips have been after we bought into DVC. We figured that the kids were at the right age to go and we like going to WDW so DVC made quite a bit of money sense for us. At this point we could sell our DVC interest and be ahead quite a bit. Without DVC I don't know how we would have made as many trips to WDW as we have done.

This year we have gotten a pin code!

We may have gotten one in 2009 but I can not remember for sure.

The thing is, even with a pin code, going to WDW is too expensive if we stayed at AKV which is our DVC home resort. It would barely be possible if we went value and had yearly passes but I don't think we could afford another trip. I just don't think we could afford the trip.

My assumption is that WDW sent us a pin code based on our yearly passes we have. I would not think many DVC members would go on a trip to WDW because the got a pin code. Some might but I can't believe it would be many.

Later,
Dan