Is Disney finally seeing consumers say they're pricing themselves out of peoples ability to pay?

RAD

DIS Veteran
Joined
Dec 15, 1999
Looking at the lasts quarters results press release it says:
"The decrease in operating income at our domestic parks and resorts was due to higher costs and lower volume, partially offset by increased average per capita guest spending. Higher costs were driven by labor and other cost inflation and expenses associated with Star Wars: Galaxy’s Edge, which opened at Disneyland Resort on May 31. The decrease in volume was due to lower attendance, partially offset by higher occupied room nights. Guest spending growth was primarily due to higher average ticket prices and increased food, beverage and merchandise spending."
 
Looking at the lasts quarters results press release it says:

Well .............. (and this comes from a long time stockholder) ......... they carefully craft these releases to their advantage, with truths, but not necessarily the full truth. This statement was quite true about Disneyland ... but they use the term "domestic parks" ..... to imply it includes WDW but not for a nano second do I believe the decrease in volume spent was due to lower attendance. Being in the parks about every 2-3 months .... there is nothing about low attendance happening at WDW. If it were then the attraction lines wouldn't be so long, the food lines wouldn't be so long, walkways wouldn't be hard to navigate, the FastPasses wouldn't be gone so fast, the upsell events wouldn't be so crowded .... Disney World is crowded to the point that it's ticket value is decreasing .... and I have always been firm in my belief that the ticket prices were appropriate. SWGE opens ........... there won't be a CM who isn't exhausted at the end of the day ............

........... except perhaps the Merchandise CMs and I do agree with perhaps the spending is down there. And that is a problem because that money is critical to profits. Chapek has been slowly turning Disney parks into big DisMarts - where so much of the merchandise is unoriginal and repetitive. They take the same object, change the character and put it on the shelves. We are at the point where we can buy so much of the same merchandise at stores, online or ebay so why would we pay the overinflated prices in the parks. Another reason merchandise sales might be down .............. who has time to shop when you are standing in lines all day just trying to make your ticket have value? I know the last few visits I walk right up to pay for merchandise, no wait, and usually have several CMs to help me. Not a good sign.

There is attendance - which can be linked to spending in terms of tickets.

But in terms of Disney hotels, dining and merchandise ... that is all optional and it wouldn't surprise me if folks are tired of the inflated prices and planning their trips in a way to give Disney as little as possible. I do.



I know my last trip - 7 days in parks.
Hotel offsite including breakfast.
Had AP tickets.
2 Table Service Meals (LTT lunch/Sci Fi with TiW Discount).
3 Quick Service Meals (PizzeRizzo, BOG, Satuli)
A few snacks and cokes.
All other meals offsite; food I brought to hotel or fast food.
Villains Disney After Hours
3 Iluminations Tshirts, 2 Ornaments, 1 Hat (AP Discount).
1 DAH Tshirt (AP Discount).
Note we purchased Specialty Items only.

I didn't spend much because of their prices.
 
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We are first time DW annual passholders. Have been DL passholders for many years. I don't give Disney many extra dollars that I have to. We eat once a day in the parks, mostly counter service, but do a few table service meals over a two week visit. We stay at Disney Springs when there are discounts, mostly mousesavers. On our last trip, I bought one shirt. We did one after hours party at HS only because it was my granddaughter's first trip and she loves ToT and RnRC. We do spend some on Lyft/Uber but I justify that with the $$ saved staying offsite. Its a lot. We do no character meals, not into that. We order grocery delivery and don't buy water or soda in the parks.
HopperFan is right, Disney is becoming DisMart, and why shouldn't it? If people are willing to spend oodles of money on that stuff, Dis will keep cranking it out.
I am very much looking forward to seeing what happens when GE opens late this month. It had a lackluster beginning and still the ride waits are much lower than many others. I know there are many reasons for this, not just one. I have to say, if the opening at DW is anything like DL, I will be fine with it. They're saying it won't be. But who knows.
When our passes expire, we will start going to the parks only every other year. The money and the crowds make it not worth frequent visits anymore, for us.
 
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So far, its pretty even between Universal and Disney for ticket costs and hotel costs.
When one raises prices, the other follows very shortly after.
For consumers, Universal trying to increase competition can only be a good thing as both parks need to continually improve what they offer.
Unfortunately, that seems to come at an increasingly higher price.
 


This statement was quite true about Disneyland ... but they use the term "domestic parks" ..... to imply it includes WDW but not for a nano second do I believe the decrease in volume spent was due to lower attendance. Being in the parks about every 2-3 months .... there is nothing about low attendance happening at WDW
The explicitly say on the call that attendance at WDW was down:

“And at Walt Disney World, our survey data suggest that guests are deferring visitation until after Star Wars: Galaxy's Edge opens, which we believe contributed to the decline in attendance we saw during the third quarter.”
 
So far, its pretty even between Universal and Disney for ticket costs and hotel costs.
When one raises prices, the other follows very shortly after.
For consumers, Universal trying to increase competition can only be a good thing as both parks need to continually improve what they offer.
Unfortunately, that seems to come at an increasingly higher price.

Yes, the other does follow suit, but Disney is laughable with their hotel rates. I've been to Universal every year for the past 8 years. We have only stayed at one of the Deluxe resorts. I'm paying no more for a room in 2019 than I did in 2011. Whether it's an AP rate or Stay More Save More, we are always between $190 - $250 per night. Meanwhile, Disney hotel rates have literally doubled in some cases in that time. Polynesian is now over $600 per night. The Grand Floridian is well over $700, and those aren't even peak season rates. Even the Moderates are over $300 per night much of the year. I love WDW, but I refuse to pay for a Value resort there the same amount I can pay for a Deluxe resort at Universal or a 2 bedroom villa just outside the gates.
 
Chapek has been slowly turning Disney parks into big DisMarts - where so much of the merchandise is unoriginal and repetitive.

I agree. I used to go crazy with spending as I always found so much that was unique. I always had to ship my stuff home because it was too much to fit into our suitcases without going over luggage weight. Now I go and hardly spend anything on souvenirs as everything seems so generic. It's very disappointing.
 
We went to Disney earlier this year after not being there for many years. To us, the VALUE is no longer there, everything is too expensive (food/hotels/etc.) and the huge crowds mean you near spend 2+ days in a park to do what you used to be able to do in 1 day. We have zero interest in going back. I'm sure most companies project higher revenue/earnings in the future, but often that doesn't happen. There are LOTS of other places to go on vacation, it isn't like Disney is the only choice.
 
Since we only go every 4-6 years, price is sort of irrelevant to us. It's expensive but we don't go that often. last time was 2016 and next time may be in 2022 once the current work and celebrations are done.
 
Yes, the other does follow suit, but Disney is laughable with their hotel rates. I've been to Universal every year for the past 8 years. We have only stayed at one of the Deluxe resorts. I'm paying no more for a room in 2019 than I did in 2011. Whether it's an AP rate or Stay More Save More, we are always between $190 - $250 per night. Meanwhile, Disney hotel rates have literally doubled in some cases in that time. Polynesian is now over $600 per night. The Grand Floridian is well over $700, and those aren't even peak season rates. Even the Moderates are over $300 per night much of the year. I love WDW, but I refuse to pay for a Value resort there the same amount I can pay for a Deluxe resort at Universal or a 2 bedroom villa just outside the gates.

Club level, theme park views, suites etc are really ridiculous at Disney

But when it comes to standard rooms at peak times they are pretty close. We vacation in the summer and the difference between a standard room at Hard Rock and Beach Club are negligible.

Universal definitely offers more discounts off-peak - I’m just never able to take advantage.
 
Club level, theme park views, suites etc are really ridiculous at Disney

But when it comes to standard rooms at peak times they are pretty close. We vacation in the summer and the difference between a standard room at Hard Rock and Beach Club are negligible.

Universal definitely offers more discounts off-peak - I’m just never able to take advantage.

Sorry, but I don't agree at all.

July 11-18, 2020 at Beach Club - $503 per night
July 11-18, 2020 at Hard Rock - $414 per night

The only reason it's that high is because AP rates and Stay More Save More rates aren't loaded yet. We go every year in July and the only time we ever paid more than $250 per night at Hard Rock was a year we got a Deluxe Room.

But if you want to look at a closer time when discount rates are already loaded, here you go:

December 14-21 at Beach Club - $500 per night
December 14-21 at Hard Rock - $262 per night
 
I would really love to try a deluxe resort, but I just can’t stomach the price. I don’t see the value in $200+ more per night for indoor hallways and walk ability. We’ve considered a split stay next trip, but I don’t know that it’s worth it.

Two years ago, we become (midwestern) AP holders and it was about $800/pp. Now it’s around $1000! I wish we had the ability to fly down more often, but flights are also out of control. I would think the price balloon would have to pop at some point.
 
Sorry, but I don't agree at all.

July 11-18, 2020 at Beach Club - $503 per night
July 11-18, 2020 at Hard Rock - $414 per night

The only reason it's that high is because AP rates and Stay More Save More rates aren't loaded yet. We go every year in July and the only time we ever paid more than $250 per night at Hard Rock was a year we got a Deluxe Room.

But if you want to look at a closer time when discount rates are already loaded, here you go:

December 14-21 at Beach Club - $500 per night
December 14-21 at Hard Rock - $262 per night

Fair enough. I didn’t look ahead a year but priced them both for a trip this past July and the difference was less than $20. FWIW we ended up staying at Royal Pacific for $434 which was relatively cheap compared to the other universal or Disney deluxes.

Given I’m out of state and have maybe 7 in park days a year I’ve never entertained buying AP so I ignore those rates
 
Sorry, but I don't agree at all.

July 11-18, 2020 at Beach Club - $503 per night
July 11-18, 2020 at Hard Rock - $414 per night

The only reason it's that high is because AP rates and Stay More Save More rates aren't loaded yet. We go every year in July and the only time we ever paid more than $250 per night at Hard Rock was a year we got a Deluxe Room.

But if you want to look at a closer time when discount rates are already loaded, here you go:

December 14-21 at Beach Club - $500 per night
December 14-21 at Hard Rock - $262 per night
Fair enough. I didn’t look ahead a year but priced them both for a trip this past July and the difference was less than $20. FWIW we ended up staying at Royal Pacific for $434 which was relatively cheap compared to the other universal or Disney deluxes.

Given I’m out of state and have maybe 7 in park days a year I’ve never entertained buying AP so I ignore those rates
We're out of state but do buy AP for both and do price AP rates for both. I do agree for the most part.
I've never lucked into less than $300 at HR. I guess I don't go when the rates are the cheapest. We plan our trips around specific things happening in the parks rather than just finding the cheapest dates and going. We find them really even most of the time, expect this spring and summer when Disney threw some huge discounts to the AP

We did a Uni/WDW split in June. Stayed at HR and GF. GF was cheaper, fairly significantly. Both were booked at AP discounts. Disney AP rates are typically easier to come by too.

Another example is next week. We are doing 1 night at Uni then moving to Disney for 2 nights. This time I did one of the "value" resorts for Uni (we won't need the EP since we are only going for Hagrids) and the AP rates ranged from $94 - $144. Priced AP rates at Disney Values and they ranged from $97 - $137.
 

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