Increased ticket prices coming soon?

[Budshark]

Here's another great chart by Parentsof4 over on WDWMagic showing the impact of recessions on Disney revenue. @lockedoutlogic will love it because it matches what he keeps saying about another one coming. This is revenue growth by the way, not raw revenue.

The reason I'm adding it to this thread though is that back in the 70's and 80's recessions didn't hurt Disney revenue like they do now. Why? Probably because ticket prices have gotten so high. In the 70's and 80's you could still do a Disney trip on the cheap, not any more.
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Interesting... 2 things to point out. 2001 was terrorist related and dramatically affected travel. 2009 was the obvious "Great Recession"... so 2 anomalies there. Still interesting to see...

 

[jade1]

Here's another great chart by Parentsof4 over on WDWMagic showing the impact of recessions on Disney revenue. @lockedoutlogic will love it because it matches what he keeps saying about another one coming. This is revenue growth by the way, not raw revenue.

The reason I'm adding it to this thread though is that back in the 70's and 80's recessions didn't hurt Disney revenue like they do now. Why? Probably because ticket prices have gotten so high. In the 70's and 80's you could still do a Disney trip on the cheap, not any more.
View attachment 152268

Maybe that's why all the cuts and maybe expansion slow downs?

 

[Eoghann]

Interesting... 2 things to point out. 2001 was terrorist related and dramatically affected travel. 2009 was the obvious "Great Recession"... so 2 anomalies there. Still interesting to see...

The triggers for recessions are almost always "anomalous". If we saw it coming...

 

[rteetz]

Almost as bad as a $25 tie fighter bucket of popcorn!

Yeah I bought that....

 

[Budshark]

Yeah I bought that....

I was going to... until I saw the price. It actually hit a threshold that I just couldn't.

Now the limited edition Kylo Ren magic band knee jerk reaction... that was a different story.

 

[rteetz]

I was going to... until I saw the price. It actually hit a threshold that I just couldn't.

Now the limited edition Kylo Ren magic band knee jerk reaction... that was a different story.

I would probably buy the magic bands if I traveled there more often.

 

[Mackenzie Click-Mickelson]

Agreed. I also wasn't necessarily assuming individual pricing for each attraction, but any scheme that forces me to count the number of rides I've been on and/or decide if a particular ride is "worth" the cost of a "credit" is the same as pay-per-attraction to me. Allowing for a discount (maybe) by buying multiple attractions at once doesn't do a lot to change the fundamental feeling of the thing. And if they do go this route (which I suspect is unlikely, but who really knows?), you almost certainly would be able to buy access to individual rides, even if the initial package is a bundle. If a guest says "I've used all my rides, but it's only 3 pm and I'm not ready to go home yet, can I buy more?", they're hardly going to say "no, please take your money elsewhere".

So, yeah. "Pay-per-attraction" sounds like a reasonable description to me.

Yup, I agree Several ways to do the pay per attraction but in the end the root of it is you wouldn't be getting the same access to the park as you would with the current model.

 

[mshanson3121]

Here's another great chart by Parentsof4 over on WDWMagic showing the impact of recessions on Disney revenue. @lockedoutlogic will love it because it matches what he keeps saying about another one coming. This is revenue growth by the way, not raw revenue.

The reason I'm adding it to this thread though is that back in the 70's and 80's recessions didn't hurt Disney revenue like they do now. Why? Probably because ticket prices have gotten so high. In the 70's and 80's you could still do a Disney trip on the cheap, not any more.
View attachment 152268

Interesting to see how little impact adding DAK had, when compared to DHS or Epcot. Makes me wonder - has it been worth it for them?

 

[Eoghann]

Interesting to see how little impact adding DAK had, when compared to DHS or Epcot. Makes me wonder - has it been worth it for them?

Well that's kind of the point I keep getting at when I say a 5th Gate isn't happening. AK basically cannibalized the existing customer base. People just don't have more vacation days to use.

Yes it did allow them to spread the guests out a little more, but let's be honest the number of people who will visit AK rather than MK is tiny.

 

[Mac30188]

Interesting to see how little impact adding DAK had, when compared to DHS or Epcot. Makes me wonder - has it been worth it for them?

When Epcot was added it approximately doubled the size (100% increase in size). When AK was added, the adjustment was approximately a 30% increase in size (at best). Since it is not open night and generally much smaller then MK, it may be more like 10-15%. Each successive park is a smaller and smaller piece of the big picture.

 

[Eoghann]

When Epcot was added it approximately doubled the size (100% increase in size). When AK was added, the adjustment was approximately a 30% increase in size (at best). Since it is not open night and generally much smaller then MK, it may be more like 10-15%. Each successive park is a smaller and smaller piece of the big picture.

Well no the chart is domestic parks so Epcot was the third park. It would have been a 50% increase in ticket capacity. AK would be the fifth park so a 25% increase in ticket capacity.

I don't think the actual acreage of the park has much to do with revenue. AK for example is significantly larger than MK (500 acres compared to 154).

 

[Mac30188]

Well no the chart is domestic parks so Epcot was the third park. It would have been a 50% increase in ticket capacity. AK would be the fifth park so a 25% increase in ticket capacity.

I don't think the actual acreage of the park has much to do with revenue. AK for example is significantly larger than MK (500 acres compared to 154).

Good point in I wasn't thinking of DL, however the point is still valid in each successive park is going to be a smaller percentage of revenue increase because it is the smaller piece of the collective puzzle. I was not referring to a strict acerage = revenue, but smaller in a sense of smaller number of attendees. Physical size is irrelevant.

 

[rteetz]

http://www.fool.com/investing/gener...ce=yahoo&utm_medium=feed&utm_campaign=article

 

[Eoghann]

Good point in I wasn't thinking of DL, however the point is still valid in each successive park is going to be a smaller percentage of revenue increase because it is the smaller piece of the collective puzzle. I was not referring to a strict acerage = revenue, but smaller in a sense of smaller number of attendees. Physical size is irrelevant.

Well the point remains that AK didn't generate anything close to a 25% revenue boost. In fact there's not really any evidence of a revenue boost related to it at all. The growth hovered around 10-13% from 1997 through 2000. Where as Epcot and DHS show clear and immediate spikes in revenue growth. This is the customer cannibalization I was referring to.

 

[Mackenzie Click-Mickelson]

http://www.fool.com/investing/gener...ce=yahoo&utm_medium=feed&utm_campaign=article

I'm just a bit confused on this part of the article could you help out with that?:

"Demand-based pricing would help smooth the stigma of Disney's pricing being out of touch. There may be some bellyaching about one-day tickets during Christmas shooting up to $140, or up to $125 during the summer; but if that paves the way for $70 tickets during the slow season, it can always point to those offerings for cost-conscious travelers."

I haven't heard anyone speculate that the tickets would be lower than they already are if they went to tiered pricing. I've only heard that for the "off-peak" season they may or may raise the prices from what they currently are (with the other parts of the year being higher than they currently are). Maybe I'm just not looking at enough resources so I don't have all the details from the multiple surveys/information on the possible tiered pricing for WDW.

What is your take on the possibility of the lowest time period of the year actually being lower than what they are now?

 

[Lirael]

I'm just a bit confused on this part of the article could you help out with that?:

"Demand-based pricing would help smooth the stigma of Disney's pricing being out of touch. There may be some bellyaching about one-day tickets during Christmas shooting up to $140, or up to $125 during the summer; but if that paves the way for $70 tickets during the slow season, it can always point to those offerings for cost-conscious travelers."

I haven't heard anyone speculate that the tickets would be lower than they already are if they went to tiered pricing. I've only heard that for the "off-peak" season they may or may raise the prices from what they currently are (with the other parts of the year being higher than they currently are). Maybe I'm just not looking at enough resources so I don't have all the details from the multiple surveys/information on the possible tiered pricing for WDW.

What is your take on the possibility of the lowest time period of the year actually being lower than what they are now?

I thought it was just an optimistic speculation on their part. Hopefully I'm wrong, but considering their budget-cuts and such, I dont see disney lowering the prices, specially not by that much. It's more likely that if there's tiered ticketing the lowest prices will be the ones we have now.

 

[rteetz]

I'm just a bit confused on this part of the article could you help out with that?:

"Demand-based pricing would help smooth the stigma of Disney's pricing being out of touch. There may be some bellyaching about one-day tickets during Christmas shooting up to $140, or up to $125 during the summer; but if that paves the way for $70 tickets during the slow season, it can always point to those offerings for cost-conscious travelers."

I haven't heard anyone speculate that the tickets would be lower than they already are if they went to tiered pricing. I've only heard that for the "off-peak" season they may or may raise the prices from what they currently are (with the other parts of the year being higher than they currently are). Maybe I'm just not looking at enough resources so I don't have all the details from the multiple surveys/information on the possible tiered pricing for WDW.

What is your take on the possibility of the lowest time period of the year actually being lower than what they are now?

I highly doubt that will happen that's just optimistic speculation on their part.

 

[Mackenzie Click-Mickelson]

I highly doubt that will happen that's just optimistic speculation on their part.

Ok, thanks! That's what I thought too. I was like Whoa $70 down from $97 or $105...but I'm under no impression that the prices will go down unfortunately the way things, in general, mostly are prices go up up up not down.

 

[doconeill]

I can see that there would be some sort of token decrease on the low end, which they will emphasize, but for most I'm sure the average cost will increase.

When they created Magic Your Way, they plugged how the base tickets were much cheaper - but to get No Expiration, which used to be part of every ticket, cost WAY more than before.

 

[Josh Hendy]

When they created Magic Your Way, they plugged how the base tickets were much cheaper - but to get No Expiration, which used to be part of every ticket, cost WAY more than before.

Did they not also make park hopping a $$$ upgrade at or around the same time?